Coca-Cola Advertising & PR Strategies
Coca-Cola Advertising & PR Strategies
On
Advertising, Promotion & PR of
BY
Kapil KumarVardani
[Link]-10008
PGDM (MKT)
09-11
Project Title
Advertising, Promotion & PR of
2. EXECUTIVE SUMMARY
3. OBJECTIVE `
4. COMPANY PROFILE `
5. MISSION AND VISION OF COCA COLA
6. RESEARCH METHODOLOGY
Objective of study
Sources of data collection
7. MARKETING OF COCA-COLA IN INDIA
8. MARKETING STRATEGY OF COCA-COLA
9. ADVERTISNG & SALES PROMTION OF COCA-COLA
10. MARKET SEGMENTATION OF COCA-COLA
11. BRAND ORDER SYSTEM OF COCA-COLA
12. SALES PROMOTION STRATEGIES OF COCA-COLA
13. DISTRIBUTION SYSTEM OF COCA-COLA
14. PR COMPAIGN OF COCA-COLA
15. CONCLUSION
16. LIMITATIONS
17. RECOMMENDATIONS
18. BIBLIOGRAPHY
ACKNOWLEDGEMENT
I hereby declare that this project is prepared by us under the guidance of Professor
A.K Gupta Accman Institute of Management, Greater Noida. I further declare that
this project report is prepared from the information collected from the company
website & secondary resources, and the same is purely for academic purpose.
EXECUTIVE SUMMARY
This project is made on the project title is “Advertising, Promotion & PR of
Coca-Cola”.The purpose of this project is to know about and tools which is
adopted by coca-coal for market the product in advertising and promotion of coca-
coal product& its effect on company brand image. The Consumption of soft drinks
has increased tremendously in India. Every age of group like it, now days it
become a household necessary item this work study provides extensive
information about the position of company brand and effect of advertising.
4.) What are the pr campaign is running by the coca cola to increase its brand
image
COMPANY PROFILE
The company operates a franchised distribution system dating from 1889 where
The Coca-Cola Company only produces syrup concentrate which is then sold to
various bottlers throughout the world who hold an exclusive territory. The Coca-
Cola Company owns its anchor bottler in North America, Coca-Cola
Refreshments.
Coca-Cola, the corporation nourishing the global community with the world’s
largest selling soft drink concentrates since 1886, returned to India in 1993 after a
16 year hiatus, giving new thumbs up to the Indian soft drink market. In the same
year, the Company took over ownership of the nation’s top soft-drink brand and
bottling network. It’s no wonder our brands have assumed an iconic status in the
minds of the world’s consumers
.
Every person who drinks a coca-cola enjoy moment of refreshment and shares
an experience that millions of others have savored. All of those individual
experience combined have created a worldwide phenomenon – a truly global
brand. The Coca-Cola company, nursing the global community with the world
largest selling soft drinks since 1886, returned to India in 1993 after a grape of
16 years giving a new thumbs up to Indian soft drink market. In the same year
,the company took our ownership of the nations top soft drink market brands &
bottling market. No wonder our brands assumed an iconic status in mind of
consumers. Coca-Cola serves in india some recalled brands across the world
including name such as Coca-Cola, diet coke, Sprite, Fanta, Thums-up, Limca,
Maaza & Kinely (packaged drinking water).The [Link] of coca-cola in India
directly employs apporxmatly 6,000 people, & indirectly creats employment for
many more related industries throw our wash procurement , supply and distribution
[Link] vast Indian operations comprise 25 company owned bottling
operations & 24 franchise –owned bottling operations.
Coke in India
Coca-Cola was the leading soft drink brand in India until 1977 when it left rather
than reveal its formula to the government and reduce its equity stake as required
under the Foreign Coca-Cola India Exchange Regulation Act (FERA) which
governed the operations of foreign companies in India. After a 16-year absence,
Coca-Cola returned to India in 1993, cementing its presence with a deal that gave
Coca-Cola ownership of the nation's top soft-drink brands and bottling network.
Coke’s acquisition of local popular Indian brands including Thums Up (the most
trusted brand in India21), Limca, Maaza, Citra and Gold Spot provided not only
physical manufacturing, bottling, and distribution assets but also strong consumer
preference. This combination of local and global brands enabled Coca-Cola to
exploit the benefits of global branding and global trends in tastes while also
tapping into traditional domestic markets. Leading Indian brands joined the
Company's international family of brands, including Coca- Cola, diet Coke, Sprite
and Fanta, plus the Schweppes product range. In 2000, the company launched the
Kinley water brand and in 2001, Shock energy drink and the powdered concentrate
Sunfill hit the [Link] 1993 to 2003, Coca-Cola invested more than US$1
billion in India, making it one of the country’s top international investors.22 By
2003, Coca-Cola India had won the prestigious Woodruf Cup from among 22
divisions of the Company based on three broad parameters of volume, profitability,
and quality. Coca-Cola India achieved 39% volume growth in 2002 while the
industry grew 23% nationally and the Company reached breakeven profitability in
the region for the first time.23 Encouraged by its 2002 performance, Coca-Cola
India announced plans to double its capacity at an investment of $125 million
(Rs. 750 crore) between September 2002 and March [Link]-Cola India
produced its beverages with 7,000 local employees at its twenty-seven
Wholly-owned bottling operations supplemented by seventeen franchisee-owned
bottling operations and a network of twenty-nine contract-packers to manufacture a
range of products for the company. The complete manufacturing process had a
documented quality control and assurance program including over 400 tests
performed throughout the process The complexity of the consumer soft drink
market demanded a distribution process to support 700,000 retail outlets serviced
by a fleet that includes 10-ton trucks, open-bay three wheelers, and trademarked
tricycles and pushcarts that were used to navigate the narrow alleyways of the
cities.25 In addition to its own employees, Coke indirectly created employment for
another 125,000 Indians through its procurement, supply, and distribution
networks.
Sanjiv Gupta, President and CEO of Coca-Cola India, joined Coke in 1997 as Vice
President, Marketing and was instrumental to the company’s success in developing
a brand relevant to the Indian consumer and in tapping India’s vast rural market
potential. Following his marketing responsibilities, Gupta served as Head of
Operations for Company-owned bottling operations and then as Deputy President.
Seen as the driving force behind recent successful forays into packaged drinking
water, powdered drinks, and ready-to-serve tea and coffee, Gupta and his
marketing prowess were critical to the continued growth of the Company
People: Establish a great place to work where people are inspired to the
Best they can do.
Interbrand’s Global Brand Scorecard for 2003 ranked Coca-Cola the #1 Brand in
the World and estimated its brand value at $70.45 billion .The ranking’s
methodology determined a brand’s valuation on the basis of how much it was
likely to earn in the future, distilling the percentage of revenues that could be
credited to the brand, and assessing the brand’s strength to determine the risk of
future earnings forecasts. Considerations included market leadership, stability, and
global reach, incorporating its ability to cross both geographical and cultural
borders.17From the beginning, Coke understood the importance of branding and
the creation of a distinct personality.18 Its catchy, well-liked slogans19 (“It’s the
real thing” (1942, 1969),“Things go better with Coke” (1963), “Coke is it” (1982),
“Can’t beat the Feeling” (1987),and a 1992 return to “Can’t beat the real thing”) 20
linked that personality to the core values of each generation and established Coke
as the authentic, relevant, and trusted refreshment of choice across the decades and
around the globe.
RESEARCH METHADOLOGY:
Starting a research project needs a basic preparation regarding the issues related to
the topic selected. For this one needs to do some deskwork. Deskwork includes;
DATA SOURCES:
Secondary data source:
The data which has been already passed through the statistical process, I have
collected it from the sources like internet, published data etc.
Marketing variables
1Display items
2. Visicoolers
Sales Promotion variables
1. Discount for retailers.
2. Scheme for retailers
The post-liberalization period in India saw the comeback of cola but Pepsi had
already beaten Coca-Cola to the punch, creatively entering the market in the
1980’s in advance of liberalization by way of a joint venture. As early as 1985,
Pepsi tried to gain entry into India and finally succeeded with the Pepsi Foods
Limited Project in 1988, as a JV of PepsiCo, Punjab government-owned Punjab
Agro Industrial Corporation (PAIC), and Voltas India Limited. Pepsi was marketed
and sold as Lehar Pepsi until 1991 when the use of foreign brands was allowed
under the new economic policy and Pepsi ultimately bought out its partners,
becoming a fully-owned subsidiary and ending the JV relationship in 1994.30
While the joint venture was only marginally successful in its own right, it allowed
Pepsi to gain precious early experience with the Indian market and also served as
an introduction of the Pepsi brand to the Indian consumer such that it was well-
poised to reap the benefits when liberalization came. Though Coke benefited from
Pepsi creating demand and developing the market, Pepsi’s head-start gave Coke a
disadvantage in the mind of the consumer. Pepsi’s appeal focused on youth and
when Coke entered India in 1993 and approached the market selling an American
way of life, it failed to resonate as expected.
Coca-Cola CEO Douglas Daft set the direction for the next generation of success
for his global brand with a “Think local, act local” mantra. Recognizing that a
single global strategy or single global campaign wouldn’t work, locally relevant
executions became an increasingly important element of supporting Coke’s global
brand [Link] 2001, after almost a decade of lagging rival Pepsi in the region,
Coke India re-examined its approach in an attempt to gain leadership in the Indian
market and capitalize on significant growth potential, particularly in rural markets.
The foundation of the new strategy grounded brand positioning and marketing
communications in consumer insights, acknowledging that urban versus rural India
were two distinct markets on a variety of important dimensions. The soft drink
category’s role in people’s lives, the degree of differentiation between consumer
segments and their reasons for entering the category, and the degree to which
brands in the category projected different perceptions to consumers were
Among the many important differences between how urban and rural consumers
approached the market for refreshment. In rural markets, where both the soft drink
category and individual brands were undeveloped, the task was to broaden the
brand positioning while in urban markets, with higher category and brand
development, the task was to narrow the brand positioning, focusing on
differentiation through offering unique and compelling value. This lens,
informed by consumer insights, gave Coke direction on the tradeoff between focus
and breadth a brand needed in a given market and made clear that to succeed in
either segment,unique marketing strategies were required in urban versus rural
India.
Aggressive advertising.
The aim of Coca-Cola is that its product should be visible for the customers so
company gives to retailers racks so many display items. Now days the company is
giving visicoolers to retailers for visible their chilled product in market for more
sales.
To know the position of Coke’s product in the market coca-cola appoint some
take care companies assets, check visicoolers and talk to shopkeeper & take
“The rural market is a significant part of our sales promotional discount scheme
sources main focus now on rural market. In 2000 the Coca-Cola India spokes
women Nantoo Banerjee said that. The real market in India is the rural market. If u
can crack it, there is tremendous potential.”CCI begin focus on rural areas after
2000 in order to increase [Link] decision is giving a huge size & potential
market to company. It is clear that CCI would have shifted its focus
In early 2002 CCI launched a new advertising campaign for attract more rural
consumers. The aids with India leading bollywood star Amir [Link] movie of
Aggressive advertisement
Coca-cola use the concept of aggressive advertises for sales promotion. Company
introduces different schemes and advertises them with electronic and print media.
Brand ambassador play an important role. Brand ambassador encourage the today
like “taaza mango, maaza mango” and “ botal mein aam, maaza hain naam”.
Help lot to make market image of maaza. Coca-cola advertising cam gains Jo
Chaho Ho Jaye. & Life Ho To Asi were very popular & had entered in youth
vocabulary .In 2002 company launched the campaign “Thanda Matlab Coca-
advertising for rural market capture Amir Khan’s aid “Oye soniyoThanda piyo
MARKET SAGMATION MODEL OF Coca cola
Markets can be segmented along 3 lines- Outlet Volume, Locality Income, &
Channel cluster
Types of outlet
Outlets which primarily engaged in retailing of food and various household items.
E&d –
Outlets selling items to eat which are being cooked within outlet, made at the
outlet & possibility consume in outlet. They may have place of sitting. It includes
soaps etc.
Pubs- Outlets selling alcoholic beverages & snack items. May be open till late at
nights or 24 hrs.
Dhaba- Situated on roadside & market places catering cost effective Indian food
Convenience
Includes outlets which are small stores or soap generally accessible locally. These
are often located alongside busy [Link] includes Chemists soap/STD booths/Pan
Convenience includes:
Pan shop
Semi- temporary kiosk located near the road side selling
Cigarettes, beverages and other confectionary items.
Outlet at petrol pumps-
Convenience outlets selling top up items, may
be open till late at nights or 24 hrs.
Colo j-k
cola lemon orange juice Kinely
coke
Introduction
Our world today is characterized by [Link] day when we open the
newspaper or saw view on t.v channels we are bombarded with advertisement.
Just look at the prized sponsored by several firms atthe end of well know television
programmed like Shaktimaan on Doordarshan, Airtel des ki aawaj, dus ka dum,
Indian idol. Channels it isn’t the prized on the television to attract the costumers it
may have discount coupons, gifts & several similar incentives program creatively.
Designed by marketer that draws the customer’s brain in the organization.
Sales promotion is one of the most loosely used terms in marketing but in
beverages companies it use separate. Sales promotion consist short term invectives
to encourage purchase & sales or services.
WHO USING SALES PROMOTION TOOLS
Today many customers packaged goods company’s sales promotion accounts for
[Link] include middle man wholesaler & retailers to purchase goods in large
quantity by offer them more facilities on higher trade more cash discount, bonus
etc.
[Link] assist sales man in increasing sales, achieving sales target & salesman’s
activities for problem sales.
[Link] introduce such sales promotion methods as to adopt aggressive selling and
their by increase sales.
Various types of sales promotion methods are being used in organization in Coca-
Trade sales promotion is an incentive given to middle man to buy Goods in large
quaint form the producer or manufacturer. The main sales promotion methods are
such as:
Discount
Display and advertising allowances
Buy- back allowances
Store demonstration
Free goods
Free tours etc.
Sales promotion method is those methods which intended to motivate the sales
force to increase sales. These methods support a sales man to perform his job
PROMOTIONAL STRATEGIES -
Corporate objective
Production Advertising
Pricing Sales Promotion
Distribution Personal selling
Publicity
Customers
Sales
Sales Promotion and Personal Selling.
Coca-Cola Co. is running a mobile campaign via the ChaCha mobile answer
service to generate interest in its loyalty program and Coke Zero soft drink. The
soft drinks giant is one of ChaCha's first advertisers. ChaCha has been charged
with enabling a conversational relationship between Coca-Cola and the millions of
users of its answer service.
This growth made us realize that we have the power to help advertisers by letting
them target our audience." Coca-Cola and ChaCha kicked off their mobile
marketing engagement at the Allstate Brickyard 400 at Indianapolis Motor
Speedway on July 27. With targeted responses and event-based marketing, Coca-
Cola engaged users in a new and innovative relationship to encourage interactive
conversations.
Using ChaCha's service to deploy ads, Coca-Cola so far has seen a 5.2 percent
click-through rate, compared to 1 percent to 2 percent industry averages. In
addition, Coca-Cola will gain a deeper understanding of its consumers as well as a
simple way to track usage patterns and customer data during the campaign. Here's
how it works-
Users can call 1-800-2CHACHA or text questions to ChaCha (242 242) on
mobile phones and receive answers within minutes.
After receiving a text back with the answers, users receive another text with
the Coca-Cola promotion.
The promotion encourages users to join the My Coke rewards program and
to try out the Coke Zero soft drink.
The SMS also includes a link to the My Coke Rewards WAP site at
[Link]
This way, marketers such as Coca-Cola can engage consumers and stay top of
mind with relevant, personalized mobile information about its brand, products and
promotions. ChaCha's demographic is unique in that 53 percent are repeat users,
the company claims. Also, 83 percent consider the service to be very valuable.
The average user uses ChaCha over 30 times per month. Eighty-eight percent hear
about the service from a friend. Users are ages 18-34 and use the service socially
and for utilitarian purposes. "service is unique because users trust brand, making
them more receptive to advertisiements served through services.
"The Coke campaign is our flagship and was targeted in terms of geography," he
said. "We believe this campaign is a significant extension of other branding and
marketing initiatives because we allow for a very intimate, one-on-one
relationship.
"For advertisers we are basically creating an opportunity for them to reach, talk
with and engage our loyal user base. The ads are part of the user's interaction and
are not intrusive at all. Our advertisers get great reach."
CHANNEL MANAGEMENT
The partner type relationship with bottlers Franchise owned bottling operation
channel management mostly cover these type bottling. It is this way in Coca-Cola
India strengths in its marketing that gives it an edge. Every number of its sales
team is meticulously taught the merchandising & display skills that can
leverage the reach of the company’s bottling network to achieve high visibility of
the product.[FOBOs] & [COBOs] Coca-Cola India work under two type of
bottling operation.
Mumbai
Bangalore
Ahmadabad
Chennai
Calcutta.
[Link]
FOBOs
The concrete is being on sold of products by franchise system the mfg. & the
franchiser sell products in market. Leaving COBOs the FOBOs are rest in cities of
India.
Some of them are Delhi, Punjab, Bihar, Nagpur, Goa. Bhuvenesher, Hyderabad
etc
1. Direct route.
2. Indirect route.
DIRECT ROUTE
Where company supply its products in market by company route or its agent route
INDIRECT ROUTE
Indirect routes are those in which Coca-Cola products are supplied to its
distributers appointed in different areas. Than distributers distribute products in
market by their own tempo or vehicle.
FLOW OF DISTRIBUTION SYSTEM
Market
Direct route
Plant Warehouse
Indirect route
Distributor Market
Coca-Cola has concentrate in 4 types of markets emerging market. Like China &
India, where there is low per capita income but are a good potential for investment
Because of their large size of population.
Leading Market
Where it is lead the market in maintenance, consolidation, & selling.
Markets where Coca-Cola has low shares but where presence is required.
TARGET CORE
The Coca-Cola Company has teir weekly targets, Sales executive, marketing
executive, market developer, sales persons & other get targets. After completing
their targets the companies give them good intensive which attract them to work
OWNERS.
Company now planning a franchising with building a core for all routes so that
supply of products should be on the time and the company demand “Availability of
CHENNAL:- GROCERY
OUTLET CATEGORY:- DIAMOND
200ml/TP -
250ml/200ml mz Maaza
300ml Thums Up+[coke,limca,sprite,fanta(any3)]
330ml Diet coke, Coca-cola (only for medium/high
income
500/600ml Thums Up+[coke,limca,sprite,fanta(any3)] Maaza
1. Ltr/1.2/1.5/2Ltr Thums Up+[coke,limca,sprite,fanta(any3)]
Maaza,Kinely
COOLER STANDERDS
Locality income
20 c/s visi
low
9 c/s visi
30 c/s visi
Medium/high
20 c/s visi
ACTIVITION STANDERDS
Essential activation standards:-
• Display Rack (at least 1)
• Self Display (other than rack, mini.8facing of any pet displayed & visible.
PUBLIC RELATION :
Coca-Cola has hired a public relations firm, Perfect Relations, to develop a new
image for them in India. The head of communications for Coca-Cola Asia has been
moved to India from Hong Kong to try to deal, in a PR way, with the growing
resistance. Neville Isdell, the new CEO of Coca-Cola who assumed office in April
2004, chose India as the first country to visit after assuming office. However, it
was a "stealth" visit, and was discovered by Indian journalists only when they pried
about it. Isdell was rightly concerned that a public announcement of Coca-Cola's
top man to India would be met with a sizeable protest. Coca-Cola has also just
announced plans to significantly increase the marketing budget in India from next
year.
No matter of spin and increased marketing for Coca-Cola will solve the problems
that have been created by Coca-Cola in India. The first step that Coca-Cola must
take is to admit to the severity of problems it has caused in India, and then find
ways to address them operationally:
They must permanently shut down the bottling facilities in Mehdiganj, Kala
Dera and Plachimada.
They must compensate the affected community members.
They must recharge the depleted groundwater
They must clean up the contaminated water and soil.
They must ensure that workers laid off as a result of Coca-Cola's negligence
are retrained and relocated in a more sustainable industry.
They must admit liability for the long term consequences of exposure to
toxic waste and pesticide laden drinks in India.
For many of us, the polar bear symbolizes the joy of coming together for the
holidays. The polar bear has also become a symbol for global climate change, as
the disappearance of its arctic habitat hinders reproduction and overall well-being.
The Coca-Cola Company is committed to doing our part to address global climate
The Coca-Cola Company Polar Bear Support Fund to help build awareness and
support for the polar bear. Since 2007, we have contributed $500,000 to World
Wildlife Fund to help in its efforts to protect polar bears and their habitat. An
As part of our global climate protection efforts, The Coca-Cola Company Polar
Bear Support Fund aims to help build awareness and support for polar bears.
Together we can limit our impact on the climate and reduce the impact climate
change has on polar bear habitats and populations.
Coca Cola infuses fun through animated Aamir Khan in latest campaign
Coca-Cola India has unveiled the latest in its series of communication for brand
Coca-Cola that builds on the global ‘Open happiness’ platform. The latest
communication features Aamir Khan in an animated avatar racing on his
motorbike in the virtual world of videogames.
Coca-Cola India has unveiled the latest in its series of communication for brand
Coca-Cola that builds on the global ‘Open happiness’ platform. The latest
communication features Aamir Khan in an animated avatar racing on his
motorbike in the virtual world of [Link] Kashmira Chadha, director-
marketing, Coca-Cola India, “Coca-Cola is all about infusing fun, enjoyment and
exhilaration into every moment of life. The creative idea behind the latest ‘Open
Happiness’ communication is to bring forward the thought of enjoying a bottle of
Coca-Cola while taking a pause from the virtual life that the youth today engages
in. The latest communication shows how simple joy of sharing life’s smallest
pleasures with a bottle of Coca-Cola lures one away from the virtual to the real
world of love and friendship.
COMMITMENTS
Protecting our planet. Supporting our communities.
The Coca-Cola Company is working to make a difference where we
impact the environment
most—by using water responsibly, recycling and enhancing the
packaging we produce,
and limiting our greenhouse gas emissions and energy consumption.
We are working to limit our impact on the climate by addressing the greenhouse
gas emissions of our refrigeration equipment as well as the energy consumption of
our manufacturing and fleet operations
WATER STEWARDSHIP
We are working to reduce our demand for water by focusing on efficiency in our
operations; recycle the water we use in our manufacturing processes so it can be
safely returned to the environment, and replenish the supply of water by supporting
healthy watersheds and sustainable community water programs
From developing packaging designs that use less material without sacrificing
quality, to investing in technologies and recovery systems that enable us to use
more recycled materials, we are committed to continuously enhancing the
sustainability of our packaging and our business.
The Coca-Cola Company feels that it has a responsibility to protect their 50 year
icon. They issued this statement on their website: “Beverage concentrate is largely
shipped to bottling operations by sea, while finished beverages are mostly
transported by road to distributors and retail customers. The environmental impacts
of the transportation of our product -- whether by land or by sea -- result from fuel
consumption, exhaust emissions and maintenance.
We are working to conserve fuel in our fleet of approximately 200,000 diesel
vehicles through the introduction of idle-reduction and biodiesel technologies,
which can also help reduce emissions. We also have begun use of diesel-electric
hybrid trucks in select markets.
In 2006, a two-year test run of bottling partner Coca-Cola Enterprises' (CCE) new
diesel-electric hybrid truck revealed a 32 percent improvement in fuel economy.
With CCE, we also put into place a way of systematically evaluating and
promoting energy-saving fleet technologies for replication throughout the entire
Coca-Cola system.”
Coca-Cola has had some bad publicity from websites like [Link]. I think
that saving the polar bears was a great move toward the right direction.
CONCLUSION
I had a project on advertising, sales promotion and pr technologies of coca cola. In
last I conclude the work study that………………..
The marketing strategy of Coca-Cola is better than its main competitor.
The market share of coke products is higher than the other products.
Advertising campaign of coca cola now can see easily on villages like sign
board, hoardings on highway, banners @ outlets
LIMITATIONS
RECOMMENDATIONS
For marketing strategy of company should divers it business in related this
sector Like-Ice creams, butter &chocolates because of company have
visicoolers in mostly outlets.
Now company should launch new taste of soft drinks like recently launched
Company must make new strategy to fight local cold drinks brands.
Bibliography
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