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In India, beverages form an important part of the lives of people. It is an industry, in which the
players constantly innovate, in order to come up with better products to gain more consumers
and satisfy the existing consumers.
FIGURE 1: BEVERAGE INDUSTRY IN INDIA
The beverage industry is vast and there various ways of segmenting it, so as to cater the right
product to the right person. The different ways of segmenting it are as follows:
Alcoholic, non-alcoholic and sports beverages
Natural and Synthetic beverages
In-home consumption and out of home on premises consumption.
Age wise segmentation i.e. beverages for kids, for adults and for senior citizens
Segmentation based on the amount of consumption i.e. high levels of consumption and
low levels of consumption.
If the behavioral patterns of consumers in India are closely noticed, it could be observed that
consumers perceive beverages in two different ways i.e. beverages are a luxury and that
beverages have to be consumed occasionally. These two perceptions are the biggest challenges
faced by the beverage industry. In order to leverage the beverage industry, it is important to
address this issue so as to encourage regular consumption as well as and to make the industry
Four strong strategic elements to increase consumption of the products of the beverage industry
in India are:
The quality and the consistency of beverages needs to be enhanced so that consumers are
satisfied and they enjoy consuming beverages.
The credibility and trust needs to be built so that there is a very strong and safe feeling
that the consumers have while consuming the beverages.
Consumer education is a must to bring out benefits of beverage consumption whether in
terms of health, taste, relaxation, stimulation, refreshment, well-being or prestige relevant
to the category.
Communication should be relevant and trendy so that consumers are able to find an
appeal to go out, purchase and consume.
The beverage market has still to achieve greater penetration and also a wider spread of
distribution. It is important to look at the entire beverage market, as a big opportunity, for brand
and sales growth in turn to add up to the overall growth of the food and beverage industry in the
THE COCA-COLA COMPANY
In May 1886, Coca – Cola was invented by Dr. John Pemberton a pharmacist from Atlanta Georgia.
John Pemberton concocted the Coca – Cola formula in a three legged brass kettle in his backyard.
The name was suggestion given John Pemberton‟s bookkeeper Frank Robinson.
Being a bookkeeper Frank Robinson also had excellent penmanship it was he who first “Coca – Cola
“Into the flowing letter‟s this has become the famous logo of today.
The soft drinks were first sold to the public at the soda fountain in Jacob‟s Pharmacy in Atlanta on
May 8, 1886. About nine servings of the soft drink were each day. Sales for that first year added up
to total of $ 50. The funny thing was that it cost John Pemberton over $ 70 in expenses, so the first
year of sales was loss.Until 1905, the soft drinks, marked as a tonic contained extracts to cocaine as
well as the caffeine- rich kola nut.
By the late 1890s, Coca – Cola was one of America‟s most popular fountain drinks. With another
Atlanta pharmacist, Asa Griggs Candler, at the helm, the Coca –Cola Company increased syrup sales
by over 400 % between 1890 and 1900.Advertising was an important factor in
Pemberton and Candler‟s success & by the turn of the century, the drink was sold across the
United States and Canada. Around same time, the company began selling syrup to independent
bottling companies licensed to sell the drink. Even today, the US soft drink industry is organized
on this principle.
Until the 1960‟s both small town & big city dwellers enjoyed carbonated beverages at the local
soda fountain or ice – cream saloon. Often housed in the drug store, the soda fountain counter
served as a meeting place for people for all ages. Often combined with lunch counters, the soda
fountain declined in popularity as commercial ice – cream, bottled soft drinks, & fast food
restaurant came to the fore.
On May of 1886 Dr.Pemberton concocted caramel-colored syrup in a three-legged brass kettle in
his backyard. He first "distributed" the new product by carrying Coca-Cola in a jug down the
street to Jacobs Pharmacy. For five cents, consumers could enjoy a glass of Coca-Cola at the
soda fountain. Whether by design or accident, carbonated water was teamed with the new syrup,
producing a drink that was proclaimed "Delicious and Refreshing." Dr. Pemberton's partner and
bookkeeper, Frank M. Robinson, created the name.
The Coca-Cola Company exists to benefit and refresh everyone it touches. Founded in 1886, the
Company is the world's leading manufacturer, marketer, and distributor of nonalcoholic beverage
concentrates and syrups, used to produce nearly 400 beverage brands. The company corporate
headquarters are in Atlanta, with local operations in over 200 countries around the world.
While The Coca-Cola Company is a global company with some of the world's most widely
recognized brands, the Coca-Cola business in India, as in each country where it operates, is a
local business. The beverages are produced locally, employing Indian citizens, its product range
and marketing reflect Indian tastes and lifestyles, and are deeply involved in the life of the local
communities in which they operate.
For company, Quality is more than just something they taste or see or measure. It shows in its
every action. They relentlessly strive to exceed the world's ever-changing expectations because
keeping their Quality promise in the marketplace is highest business objective and their enduring
obligation. More than a billion times every day, consumers choose coke brand of refreshment
because Coca-Cola is....
The Symbol of Quality Customer and Consumer Satisfaction A Responsible Citizen of the
The heart and soul of enterprise has always been the people. Over the past century, Coca-
Cola people have led the success by living and working with a consistent set of ideals.
While the world and company business will continue to change rapidly, respecting these
ideals will continue to be essential to their long-term success. Nothing is more important to
coca cola success than integrity. This begins with insisting on absolute quality for every
one of its products, and acting with a strong sense of accountability in everything they do.
Coca-Cola people have always known that building and nurturing relationships with other
people and the world around them is an essential part of their work. No matter how big or
complex business becomes, it must always demonstrate complete respect for each other. As
the world becomes more interconnected, yet more firmly rooted in local pride, recognition
of their interdependence with company stakeholders becomes even more essential.
Formula of Coca Cola
The exact formula of Coca-Cola is a famous trade secret. The original copy of the formula is
held in SunTrust Bank's main vault in Atlanta. Its predecessor, the Trust Company, was the
underwriter for the Coca-Cola Company's initial public offering in 1919. A popular myth states
that only two executives have access to the formula, with each executive having only half the
formula. The truth is that while Coca-Cola does have a rule restricting access to only two
executives, each knows the entire formula and others, in addition to the prescribed duo, have
known the formulation process.
Franchised Production Model
The actual production and distribution of Coca-Cola follows a franchising model. The Coca-Cola
Company only produces a syrup concentrate, which it sells to various bottlers throughout the
world who hold Coca-Cola franchises for one or more geographical areas. The bottlers produce
the final drink by mixing the syrup with filtered water and sugar (or artificial sweeteners) and
then carbonate it before filling it into cans and bottles, which the bottlers then sell and distribute
to retail stores, vending machines, restaurants and food service distributors.
The Coca Cola Business in India
While the Coca – Cola Company is a global company with some of the world‟s most widely
recognized brands, the Coca – Cola business in India, as an each country were company operate,
is a local business. The beverages are produced locally, employing Indian citizens, the product
range & marketing reflect Indian testes & life styles, and the company is deeply involved in the
life of the local communities in which it operate.
Re-entering in Indian Market
After a 16 – year absence Coca – Cola returned to India in 1993. The company‟s presence in
India was commented in November that year in a deal that gave Coca – Cola ownership of the
nation‟s top soft drink brands & bottling network.
INVESTMENT, EMPLOYMENT AND ECONOMICS IMPACT
Coca – Cola India has made significant investment to build & continually improve its business in
India, including new production facilities, waste water treatment plants, & distribution system &
marketing equipment. Drugging the past decades, the Coca – Cola system has invested more than
US $ 1 billion in India. As such Coca – Cola is one of the countries top international investors. In
2003, Coca – Cola India pledged to invest further US $ 100 million in its operations.
The Coca–Cola business system directly employees approximately 10,000 local people in India.
In addition, several independent studies have documented that, by providing opportunities for
local enterprises, the Coca – Cola business also generates a significant employment “multiplier
effect”. In India, we indirectly create employment for for more than 1,25,000 people in related
industries through our vast procurement, supply & distribuitrion.
The Coca – Cola system in India comprises 27 wholly owned company – bottling operations &
another 17 franchises – owned bottling operations. A network of 29 contract – packers also
manufactures a range of products for the company.
Almost all the goods & services required producing and marketing Coca – Cola in India are
made locally, sometimes with the help of technology & skills from the company. The complexity
of the Indian market is reflected in the distribution fleet, which includes 10 – tone trucks, open –
bay trademarked tricycles and pushcarts.
Leading Indian brands Thums -up , Sprite , Limca, Fanta , Maaza join the company‟s
international family of brands, including Coca – Cola, Diet Coke, Minute – Maid Pulpy Orange
.The company Kinley water brand was launched in 2000 and, in 2001 , our energy drink shook &
our first powdered concentrate , Sun fill, hit the market. In 2008, Bonaqua water was launched.
Annual per capita consumption of soft drinks in India is nine 8 – ounce.
While broad direction & themes for our global brands are created at a global level, specific
marketing programmes for our product are determined locally. In early 2003, Coca – Cola India
collected advertiser of the year and campaign of the year awards for the Thanda Matlab Coca –
Cola all media campaign. Innovation has been the hallmark of other marketing campaigns, with
the company racking up “first” in the introduction of channel & PET soft drinks, vending
machines and backpack dispensers for crowds of cricket supporters.
The company considers the consistent high quality of beverages to be one of our business
primary assets. In India, as in each country where we produce our beverages, the Coca – Cola
system adheres not only to national laws on food processing & labeling, but also to their own
strict standards for exceptional quality. In every thing they do, from the selection of ingredients
to the production of beverages. The Coca – Cola quality system, to ensure that they are offering
consumers only the highest quality products. They monitor their success through their customer
& consumer feedback and in – trade monitoring programmes, and this information enables them
to continuously improve their already demanding system.
COCA – COLA AND THE COMMUNITY
In Coca – Cola, the company have a long standing belief that everyone who touches their
business should benefit. That basic proposition that their business should bring benefit &
refreshment is central to the way they operate in Communities around the world. Coca – Cola
India provide extensive support for community programmes across the country, with a focus on
education health & rainwater harvesting, all key priorities of the Indian government which has
recognized the company‟s efforts with a several awards.
Coca – Cola India is supporting community – based primary education project setup to provide
educational opportunities to marginalized children in slums & villages. To data, the projects has
benefited 50 schools, 1000 of students, over 500,000 villagers and 10,000 slum dwellers, as well
as several village near Coca – Cola bottling.
Coca – Cola India is supporting community – based rainwater harvesting projects in rural &
urban areas to help restore water levels & promote community education in ways to conserve
natural resources. These initiatives have a benefited over 10,000 Delhi residents, as well as local
community members, both in areas surrounding Coca – Cola bottling plants & else where.
Coca – Cola India is partnering with NGO‟s as well as St. John‟s Ambulance Brigade (Red
Cross) to provide free medical facilities & information to poor people who can‟t afford to visit
hospital facilities. These efforts are helping tens of thousands of under privileged people in seven
states in India, as well as several villages near Coca – Cola bottling plants.
The company has also supported a range of other national initiatives, such as a major polio –
eradication drive and drought- relief programme, in addition to support towards the national
cricket championship for the blind, and national athletics meetings for the physically challenged.
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