ASSIGNMENT

1
MGT-
BRAND:- COKE

SUBMITTED TO:
KANIKA JHAMB
SUBMITTED BY:
UDAY PRATAP SINGYH
SE131A20
10804711
 INTRODUCTION

 Coke , fanta and sprite etc. are brands with whom Coca-Cola is operating.

 The Coca-Cola system operates through eight bottlers , four of which majority-
owned by Coca-Cola Beverages.

 The Coca-Cola system serves 70,000 customers/retails outlets.

 The Coca-Cola system has nearly 3,000 people working constantly for the company.

 Kinley water understands the importance and value of this life giving force.

 Water you can trust to be truly safe and pure.

 Water the , a thirst quencher that refreshes, a life giving force that washes all the
toxins away.

 A ritual purifier that cleanses, purifies and transforms.

 Water, the most basic need of life, the very sustenance of life, a celebration of life
itself.

SEGMENTATION
 The company does segmentation on the following basis:

 Channel classification (Based on type of outlet business)

 Volume classifications (Based on annual sales of the outlets)

 SEC classifications (Based on income levels of nearby residing community).

OUR FINDINGS

 Consumers usually buy coca-cola from Grocery stores.

 Females spend 400 or more on coca-cola per week.

 Consumers whose income level is 40,000 and above spend 300 on coca-cola per
week.

 Mostly consumers use coca-cola for their personal use and they seek strong taste
from it.
 TARGETING

The company's target market is mass audience that wants to purchase quality
products at reasonable prices. Its target market is mass audience regardless of
Urban or Rural areas with high, medium and low SEC.

Our Findings:

Target market of the coca-cola is youth.

POSITIONING
“According to marketing manager coke’s ideal positioning”
ACTUAL POSITIONING
 RECOMMENDATIONS

 Coca-Cola’s marketing campaigns are successful and they are getting what they
desire.

 According to the perceptual map, there is no gap between their ideal positioning
and actual positioning.

 They are snatching 3%-4% market share from Pepsi every year. They say after
five years there market share will be 50-50 with PEPSI

 The company needs to retain their market share. For this they are already using
intense promotion strategies.

 They are now shifting their focus on event sponsorships, and lounges offering
music videos.

MARKETING STRETERGY OF COKE

The Mission Statement of the Coca Cola Company

Our mission statement is to maximize shareowner value over time.

In order to achieve this mission, we must create value for all the constraints we
serve, including our consumers, our customers, our bottlers, and our communities.
The Coca Cola Company creates value by executing comprehensive business
strategy guided by six key beliefs:

1. Consumer demand drives everything we do.

2. Brand Coca Cola is the core of our business

3. We will serve consumers a broad selection of the nonalcoholic ready-to–

drink beverages they want to drink through out the day.

4. We will be the best marketers in the world.

5. We will think and act locally.

6. We will lead as a model corporate citizen.

The ultimate objectives of our business strategy are to increase volume, expand our
share of worldwide nonalcoholic ready to drink beverages sales, maximize our long-
term cash flows, and create economic value added by improving economic profit.

The Coca Cola system has more than 16 million customers around the world that
sells or serves our products directly to consumers. We keenly focus on enhancing
value for these customers and helping them grow their beverage businesses. We
strive to understand each customer’s business and needs, whether that customer is a
sophisticated retailer in a developed market a kiosk owner in an emerging market.

There are nearly 6 million people in the world who are potential consumers of our
company’s product. Ultimately, our success in achieving our mission depends on our
ability to satisfy more of their beverage consumption demands and our ability to
add value for customers. We achieve this when we place the right products in the
right markets at the right time.
 MANAGEMENT:

The hierarchy of Coca Cola Company is as follows

MARKET SHARE:

Being the biggest company in the soft drink industry, Coca Cola enjoys the largest
market share. This company controls about 59% of the world market.
 GLOBAL MARKET SHARE:

The following table can show the worldwide operating segments

Unit case growth Non- All commercial

alcoholic
Beverages
drink

10 year compound 5-year compound 2001 annual growth 2002 2002

annual growth annual growth

Compan Industry Compan Industry Compan Industry Company Compan Compan

y y y share y share y per
capita

Income

6% 5% 5% 5% 4% 4% 18% 9% 70

FINANCIAL REPORT:

This company is financially very strong. It is due to the strong finances, the
company is still surviving the ups and down of the business world. The financial
report of Coca Cola Company of the year 2001 and 2000 along with the percentage
change is as follows.

(Table)

2002 2001 Percentage

change
Net operating revenues 20,092 19,889 1%

Operating income 5,352 3,691 45%

Net income 3,969 2,177 82%

Net income per share (basic) 1.601 0.882 82%

Net income per share (diluted) 1.601 0.882 82%

Net cash provided by operating activities 4,110 3,585 15%

Business reinvestment (963) (779) 24%

Dividends paid (1,791) (1,685) 6%

Share repurchase activity (277) (133) 108%

Free cash flow 3,147 2,806 12%

Return on capital 26.6% 16.2% -

Return on common equity 38.5% 23.1% -

Unit case sales (in billions)

International operations 12.5 11.9 5%

North America operations 5.3 5.2 2%

Worldwide 17.8 17.1 4%

COMPANY STATISTICS:

The statistics of this company is impressive. Since it is operating through out the
world that is why the number of employees and the bottling equipments is highest
among the other bottling companies. There is a constant increase in every aspect
when we compare the statistics of 2001 and the statistics of 2002. This is because;
Coca Cola Company is increasing its volume day by day. The expansion of this
company, which shows the success of Coca Cola brands, results in the percentage
change in the statistics of the two years. The statistics is as follows.
 2002ª 2001

Equivalent cases 4.2 billion 3.8 billion

Bottle and cans 87% 87%

Fountain 13% 13%

Employees 72,000 67,000

Vehicles 54,000 52,000

Cold drink equipments 2.4 million 2.3 million

Facilities

Production only 25 25

Distribution 385 361

Combination 53 50

Total 463 436

Percent of North America population coverage 80% 72%

Number of States of Operation 46 46

Bottle and can equivalent case package distribution

Cans 44% 45%

Non-refillable bottles 52% 51%

Refillable bottles 4% 4%

Capital structure

Net debt to total capital ratio 63% 59%

EBITDA interest coverage 3 3

Weighted average cost of debt 6.3% 6.8%