Transcript Coca * Cola in India

Coca – Cola in India
International Marketing, 01.04.2013.
AGENDA
Introduction
of the Case
study
Case
description
Conclusion
International Marketing, 01.04.2013.
Current
situation
Case
questions
and
Discussion
AGENDA
Introduction
of the Case
study
Case
description
Conclusion
International Marketing, 01.04.2013.
Current
situation
Case
questions
and
Discussion
Introduction of the Case study
• The Coca-Cola Company is the world's largest beverage company and is
the leading producer and marketer of soft drinks.
The success of The Coca-Cola Company revolves around five main factors:
– A unique and recognized brand - Coca-Cola is among the most recognised trade
marks around the globe
– Quality - consistently offering consumers products of the highest quality
– Marketing - delivering creative and innovative marketing programmers worldwide
– Global availability - Coca-Cola products are bottled and distributed worldwide
– Ongoing innovation - continually providing consumers with new product offerings
e.g. Diet Coke (1982), Coca-Cola Vanilla (2002).
International Marketing, 01.04.2013.
AGENDA
Introduction
of the Case
study
Case
description
Conclusion
International Marketing, 01.04.2013.
Current
situation
Case
questions
and
Discussion
Case description
• 1977 Coca-Cola was forced to exit India (Indian
government demanded 60 percent of revenue)
• 1994 is coming back on Indian market
• Company bought local Cola and soft drinks brands
(including Tumbs Up – with 59% market share and
develop distribution network)
International Marketing, 01.04.2013.
Case description
• The Coca-Cola bottling plant in Plachimada has shut down in 2004 as
a result of the community-led campaign in Plachimada challenging
Coca-Cola’s abuse of water resources (water pollution and extreme
water shortages)
• Government of Kerala in India has recommended that Coca-Cola is
responsible for US$ 48 million for damages caused
After accusations Coca–Cola lost
millions in Indian market
International Marketing, 01.04.2013.
AGENDA
Introduction
of the Case
study
Case
description
Conclusion
International Marketing, 01.04.2013.
Current
situation
Case
questions
and
Discussion
Conclusion
• Inspite of accusations and threats for suing, Coca–Cola dind’t gave up of
second largest population
They stayed on Indian market even
though it’s recorded 11 percent drop
in sales
International Marketing, 01.04.2013.
AGENDA
Introduction
of the Case
study
Case
description
Conclusion
International Marketing, 01.04.2013.
Current
situation
Case
questions
and
Discussion
Current situation
• The Coca-Cola Company has developed a beverage process water
recovery system in India and Mexico that can reduce a
manufacturing plant’s water use by up to 35 percent
• Protests against the Coca-Cola company in Mehdiganj continue to
grow. The groundwater resource in Mehdiganj cannot meet the
needs of both the community and the Coca-Cola’s bottling plant.
One has to go, and it must be the Coca-Cola company.
International Marketing, 01.04.2013.
Current situation
• Now, Coca-Cola and PepsiCo together dominate the market for carbonated
soft drinks in India, where soda sales overall are estimated to total 60 billion
rupees ($1.05 billion)
• Coca-Cola accounted for 60% of retail value sales of carbonated soft drinks in
India in 2011 versus PepsiCo's 37%
• India has been one of Coca-Cola's fastest-growing emerging markets
• The investments by Coca-Cola in India are part of a plan to spend $30 billion to
build capacity and on marketing in emerging economies to fulfill its aim of
doubling revenue and volume by 2020.
•
according to data from Euromonitor International
(http://online.wsj.com/article/SB1000142405270230487030457749009241393941
0.html)
International Marketing, 01.04.2013.
Further research: what is the political
environment of India nowadays?
• Democracy is the central point of the Indian political system, but is
often limited by social tensions due to religious, caste, and linguistic
differences
• During 2010 to 2012, corruption issues came to the headlines due to
irregularities concerning the Commonwealth Games, the 2G
spectrum awards, and the dubious allocation of coal blocks, which
led to high level investigations and arrests. These allegations and
scams have tarnished the image of the today's government.
International Marketing, 01.04.2013.
Further research: what is the political
environment of India nowadays?
International Marketing, 01.04.2013.
AGENDA
Introduction
of the Case
study
Case
description
Conclusion
International Marketing, 01.04.2013.
Current
situation
Case
questions
and
Discussion
Case questions and Discussion
1.
• Corporate social responsibility
What should Coca Cola do to
initiatives:
appease Indian government and
ensure it’s survival in the market?
• To appease the Indian Government
and ensure its survival in the market,
Coca has to change his image of a
company which pollute and waste
water of India. Coca has to regain
trust of their customers. It must
happen through several actions as:
International Marketing, 01.04.2013.
– Water
• Reduced water consumption
• Improve the lively hood
• Rainwater harvesting project
– Energy
• Reduce emissions of
• Energy consumption
• Energy efficiency
– Fuel
• Local operation in each country
– Packing & Recycling
• Recycling
• 3 R : Recovering / Reduction /
Reuse
Case questions and Discussion
• Cooperation with CSE
• Public relation campaign
–
–
–
–
Promotional activies / Discounts
Keep Media presence
Marketing efforts
Donation money to charity
– CSE : Center of science and
environment
• Strong power as well as other
Non-Governmental
Organization
• Quality Brand board
• Press attacked by CSE :
Pesticides found in samples
– Members of Coca cola + CSE
– Cooperation better than attacking
experts
the CSE
– Holding Coca Cola quality
– Public apologies for misconducting
standards
research
International Marketing, 01.04.2013.
Case questions and Discussion
2. What effect will this case have on Coca Cola’s operations in India?
This case affects the profitability, the corporate reputation and Image:
•
•
•
If customers believe that Coca products are unsafe, it will affects the
brand image and the revenue
If consumers got ill because of Coca Cola, it would seriously affect
revenues.
When allegations from CSE were released , stock of Coca Cola dipped
by 5$ in the NSE and sales dropped 30-40%
International Marketing, 01.04.2013.
Case questions and Discussion
3. What lesson do this case have for other multinationals that want
to enter to Indian market?
• Indian’s population and NGO have strong power
• Local government have strong impact, even on big companies as the
leader of soft drink : Coca Cola
 To have good relationship with government form beginning
 To Have Cooperation with CSE
 Make public relation campaign
International Marketing, 01.04.2013.
THANK YOU
FOR YOUR
ATTENTION!