BSB119-International-Marketing-(Case-Study---Coca-

Coca-ColaIndiaCoca-ColaEstablishedin1886Own4oftheworld’stop5nonalcoholicspaklingbeveragebrands:Coca-Cola,DietCoke,SpriteandFantaCompanyassociates:92,400worldwide(asofDec31,2008)Operationalreach:200+countriesConsumerServings(perday):nearly1.6BillionBeveragevariety:morethan3000productsincludingdietandregularsparklingbeverages,andstillbeveragessuchas100%juices,juicedrinks,waters,sportsandenergydrinks,teasandcoffees,andmilk-andsoy-basedbeveragesCoca-ColaPortfolioincludes13BilliondollarbrandsUnitcasevolumegrew5%to23.7BillionunitcasesworldwideNetoperatingrevenuesgrew11%to$31.9BillionMorethan70%ofnetoperatingrevenuesandmorethan75%ofunitcasevolumegeneratedoutsideofNorthAmericaInternationalsaleshaveaccountedforalargeportionofCoca-Cola’srecentgrowth-salesup33%inIndiaand14%inChina(2009)Coca-ColaIndiaLeftIndianmarketin1977Returnedin1993withacquisitionoflocalbeveragecompany’sbottlinganddistributionnetworksLocalmarketchallengesComplexdistributionnetworkto700,000retailoutletsDiversecustomerpreferencesandbeveragemarketCoca-colaIndiamarketsegmentationRuralmarketLowsupportforindividualbrandsCokeaimedtobroadenbrandpositioningUrbanmarketHighcategoryandbrandsupportCokeaimedtofocusondifferentiationbyofferinguniqueandcompellingvalueMarketdevelopmentIndiaA(urban):LifehotoaisiLifeasitshouldbeMetropolitanareasandlargetowns4percentofpopulation300mLbottleLedto24percentgrowthIndiaB(rural):ThandaMatlabCoca-ColaHaveacolddrinkSmalltownsandruralareas96percentofpopulationPricesensitiveCokeintroducednew200mLbottlethatretailedforRs.5(halfthepriceof300mLbottle)Ledto37percentgrowthCrisisandtheroleofpublicrelationsCenterforScienceandEnvironmentclaimedsoftdrinkswereextremelydangeroustoIndiancitizensClaimedthatallsampleshadresiduesoftoxicpesticidesComparedresultstointernationalstandardsforbeveragesResponseofIndianmarketDelhiHighCourtsetupanexpertcommitteetoreportwithinthreeweeksPeoplestoppeddrinkingsoda“Forapersondrinkingatleastonebottleaday,thereportcameasarudeshock.Ihaven’tpickedupabottletodayandmostdefinitelywillnotconsumesoftdrinksinthefuture”–DelhimedicalstsudentInternationalmediaThingsgrowbetterwithCoke(TheGuardian,11/04)ActionsaroundpesticideclaimWetakeallegationsseriouslyReassureyouthatproductsinIndiaaresafeandtestedregularlyandmeetsamerigorousstandardswemaintainacrosstheworld.Wecannotstandbywhilemisleadingandunaccrediteddataisusedtodiscredittrustedandworld-classbrandsCoca-ColaresponsePublicrelationsresponsesAimToprotectmarketandrestoreCoca-Cola’sreputationSetupwebsitetorespondtomythswithfacts