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DISSERTATION IMC- ANALYSIS OF COCA COLA COMPANY
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INTEGRATED MARKETING COMMUNICATION (IMC)
ANALYSIS OF
“COCA COLA COMPANY”
(Study of Promotional Activity by the Company)
Research Conducted By
Deepen Upadhyaya
Batch – 6, Roll no – 15
Specialization – Advertising, Public Relations
& Corporate Communication
National Institute of Mass Communication & Journalism
Researcher’s Note:-
This Paper was prepared under the project of Integrated Marketing
communication research for National Institute of Mass Communication as
final year academic project. The research was analytical and based on
investigating Primary & Secondary data of Coca Cola Company.
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CERTIFICATE
This is to certify that Mr. Deepen P. Upadhyaya has successfully
completed the project work titled ‘Integrated Marketing
Communication (IMC) Analysis Of “Coca Cola Company”’ in
partial fulfillment of requirement for the award of ‘Post Graduation
Diploma in Mass Communication and Journalism’ as prescribed by
the ‘National Institute of Mass Communication and Journalism,
Ahmedabad’.
This project is the record of authentic work carried out by above students
as part of college curriculum of Semester –IV; Group – C – Advertising,
Public Relations and Corporate Communication as Specialization; during
the academic year (2014 – 2015).
Signature of Research Guide
Mr. Venketesh Iyar
(Indian Express - Ahmedabad)
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DECLARATION
I the undersigned hereby, declare that the project work titled ‘Integrated
Marketing Communication (IMC) analysis of ‚Coca Cola Company’ is a
result of my research work. Keeping in mind the commonality of the
subject where there already are similar project and research papers. I have
tried my best to include information, stats, data, photographs which are
scouted by me and latest. Thus except few common point which are
unavoidable I have given best justice to make this project original work
and thus this work has not been previously submitted to any other
University or Institute.
I hereby, further declare that all information of this document has been
obtained and presented in accordance with academic rules and ethical
conduct.
Deepen P. Upadhyaya
Roll No 15, Section – B,
Sem – IV, Batch -6,
Group C – AD, PR and Corporate Communication
National Institute of Mass Communication and Journalism
Ahmedabad
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ABSTRACT
This paper explores the concept of integrating Marketing Communications tools
by Coca Cola Company as a customer focused means of promoting & branding
its businesses. The Marketing communication tools considered includes
advertising, sales promotion, public relations, direct marketing and
internet/interactive communications.
Earlier, most companies concentrated generally on advertising to communicate
to their target customers and seldom used the other communication tools. Some
companies used other communication tools but on separate basis which is in
contrast to the concept of Integrated Marketing Communication (IMC). This is
the hypothesis on which this paper studies how modern firm like Coca Cola use
comprehensive integration of marketing communications tools which enhances
success through synergistic execution of their marketing communication
programs. Available literature indicates that an effective IMC program ensures a
successful marketing of a company’s product/service and improves on their
brand image as well as corporate image. This again focuses on finding out
whether this could be proven practically
While numerous studies have been conducted to measure the effectiveness of
individual IMC elements, far less attention has been given to examining the
boosting effects of multiple marketing communication tools working together,
despite the fact that consumers are likely to receive information from a variety of
sources. Indeed, one of the fundamental ideas behind IMC is that all of a
company’s marketing and promotional activities should project a consistent and
unified message and image to the consumer.
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PREFACE
The project is a part of training in the 4rd semester as a part of Final Project
Submission for Group – C ‚Advertising, Public Relations & Corporate
Communication‛. I as a student of this group am presenting my research paper
which I have researched, prepared during my academics sessions in 4th Semester
of Mass Communication and Journalism. It was a learning experience and I am
happy to share my findings and conclusion to the institute.
The primary aim of this project is to explore the use of marketing
communication to build and sustain brands, based on knowledge of how
communication works, the institutions which participate in the process, and the
practical business processes necessary to achieve and measure defined
communication goals. In particular, I will be able to understand the integrated
nature of communication and develop a full appreciation of advertising, sales
promotion, public relations, publicity and direct marketing in a digital and
contemporary environment.
Best efforts in preparing this project as finest as possible within a time
limit. Greatest efforts are put to understand the needs and problems of the
subject of my research. I hope that the concerned authority will kindly accept
this project.
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ACKNOWLEDGEMENT
I wish to take this opportunity to express my sincere gratitude towards all
who has helped us profoundly throughout the project work…
I want to say special thanks to
Prof. Shashikant Bhagat (Group ‚C‛ Head)
Mr. Vanketesh Iyar (Project - Mentor) from Indian Express
Dr. Shrish Kashikar, (Director NIMCJ)
I am thankful to Ms. Sigma Soni for her constant support in my academic work and all
other faculty members for their very useful guidance.
I am very grateful to …
Mr. Urvish Kanthariya –
Gujarat Chamber of Commerce &
Global Indian Business Council Services LLP
Mr. Kedar Vashi –
Associate Vice President & Head (Learning & Development) –
Hindustan Coca Cola Beverages Pvt. Ltd - Gurgaon
For supporting me in my project research and giving his valuable contribution in
making this project the best possible.
I convey our thanks to National Institute of Mass Communication &
Journalism, Ahmedabad for providing the required training and guidance to
accomplish the desired output and learn from the experience of this research
paper.
Thank you…
Yours Faithfully,
Deepen Upadhyay
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Sr. No Index of the Content Page Number
1 Title page 1
2 Certificate 2
3 Declaration 3
4 Certificate from Hindustan Coca Cola Beverages 4
5 Abstract 5
6 Preface 6
7 Acknowledgement 7
8 Index 8
9 Data Flow 9
10 Executive Summary 11
11 Introduction 12
12 Literature Review 14
13 Chapter -1-IMC 20
14 Chapter -2-History 25
15 Chapter -3-Corporate Communication 29
16 Chapter -4-India 37
17 Chapter -5-Strategic Communication 53
18 Chapter -6-Crisis Communication 71
19 Chapter -7- Corp. Soc. Responsibility 80
20 Chapter -8-IMC Strategy 94
21 Advertising 104
22 Public Relations 117
23 Direct Selling 130
24 Sales Promotion 136
25 Internet Marketing 141
26 Personal Selling 150
27 Conclusion 151
28 Recommendation 152
29 Coca Cola at a Glance 153
30 Bibliography 154
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EXECUTIVE SUMMARY
I as a student of ‚Mass Communication‛ have tried to understand the Integrated
Marketing Communication and Cross Cultural Communication by Coca Cola
Company in order to establish itself as an integral brand recognized in Indian
market.
Any Organization true to its brand image carries a set of mission, vision and
values to set in minds of people. Integrated Marketing Communication is not
just related to external publics but also to internal publics related to the
corporation. Integration itself means not just passing on message as
communication, rather using all mass medium speaking the same ideology,
message and image through various media forms.
This research paper consist of understand various aspects of IMC process by
Coca Cola Company such as Advertising, Sales Promotion, Direct Selling, Online
presence etc. The type of media mix it used and what type of positioning it made
for its brand, along with the change in the market.
There are graphical as well theoretical examples to add to the validity of this
research along with help from experts, representatives of IMC or Coca Cola
Company in order to makes the research work more authentic by me.
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INTRODUCTION
The creation of an Integrated Marketing Communications (IMC) program helps
companies to create single, consistent and unified customer focused messages
using electronic, print and outdoor media. An effective and efficient execution of
an IMC program ensures that the needed awareness of company’s offerings is
created. It has been argued that IMC is the foundation of new customer-focused
marketing efforts for acquiring, retaining, and growing relationships with
customers and other stakeholders (Duncan and Moriarty, 1998).
(Moriarty et al, 1994) indicate that the shift toward the IMC perspective has been
hailed as one of the most significant changes in the history of advertising and
promotion. (Kitchen et al, 2004) also add that it is the major communications
development of the last decade of the 20th century.
This research tries to discover the approach of Coca Cola Company using Media
Mix for its communication to Indian audience. This is done through an analysis
of various market studies work by Kotler, Keller and Wind. Further, it is
necessary to integrate and target marketing communication even more than the
holistic pattern requires and integrate the need to create relationships in the
process in which media channels are selected. This is done by integrating
branding theory and brand value as the core of any campaign.
To test the validity of the above ideas, a case study of one of the market leaders
of relations and emotional marketing ‚Coca-Cola‛ is carried out. Coca-Cola's
history and marketing techniques examined, and it made framework is tested by
being used as the main analytical tool in the analysis of one of Coca-Cola's latest
global campaigns.
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REVIEW OF LITERATURE
A Research review is a part of a research project. It usually opens the research report,
but its function is beyond just summarizing and analyzing he literature; it is meant to
indicate that there exists a research gap which needs to be filled. This is necessary to
show that our research is looking at a problem that is either new or existing without
being noticed. Selecting appropriate method is also very important in order to conduct
and write a research
On Coca Cola
‘If Coca-Cola were to lose all of its production-related assets in a disaster, the company
would survive. By contrast, if all consumers were to have a sudden lapse of memory
and forget everything related to Coca-Cola, the company would go out of business.’
(Power of Branding, Keller, Page 38, 2002)
Each promotional tool has its own characteristics. Marketers must understand these
characteristics in selecting their tools. Using Coca-Cola as an example, demonstrate
how each of the promotional tools might be used to create an integrated marketing
communications approach for the upcoming year. (Philips Kotler - Integrated
Marketing Strategies, 2002 edition)
Notable Quotes on IMC
‚Once upon a time, when a manufacturer had a dollar for marketing, it was spent on
advertising. Today, there are a lot of interesting things that can be done with a
marketing dollar. All of these things add up to one big thing called ‘Integrated
marketing communications’ – ‘MarCom’ for short.
‚Five forms of marketing communications *are+: Advertising, Public Relations, Direct
Response, Sales Promotion, Personal Selling.‛(Bruce Bendinger, The Copy Workshop
Workbook, kindle version 2005 edition)
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‚Understanding how to tie the business of advertising to the creative of advertising is
one of the basic foundations behind integrated marketing communication (IMC).
Creative represents the voice of business and can ultimately determine the success or
failure of a product or service in the marketplace.‛ (Robyn Blakeman, Integrated
Marketing Communication: Creative Strategy from Idea to Implementation)
‚Advertising is no longer the only thing.‛
‚Creative represents the voice of business and can ultimately determine the success or
failure of a product or service in the marketplace.‛ (Robyn Blakeman, Integrated
Marketing Communication: Creative Strategy from Idea to Implementation)
‚One of the major reasons for the growing importance of integrated marketing
communications over the past decade is that it plays a major role in the process of
developing and sustaining brand identity and equity…. With more and more products
and services competing for consideration by customers who have less and less time to
make choices, well-known brands have a major competitive advantage in today’s
marketplace. Building and maintaining brand identity and equity require the creation
of well-known brands that have favorable, strong and unique association in the mind of
the consumer. Companies recognize that brand equity is an important an asset as
factories, patents and cash because strong brands have the power to command a
premium price from consumers as well as investors.‛ (George and Michael Belch,
Advertising and Promotion: An Integrated Marketing Communications Perspective)
‚1. IMC is everywhere, whether we like it or not.
‚2. You can never know enough about your customer.
‚3. You can never know too much about your customer.
‚4. Everything is relevant.
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METHODS
In this section we will understand the method of data generation and collection. The
method used in this project is investigation of various Primary Data from Coca Cola
Company through their website, video sharing website like YouTube, Metcalfe which
are mentioned in the bibliography. Apart from the primary data secondary data is
collected through sampling of various research papers, marketing-promotional concept
books by well known authors, online web sources like PDF files, presentations etc. is
done to understand the concept of IMC and its applications in Coca Cola’s Branding
cum promotion.
Following methods are useful in getting important information as resource.
 Reading Literature of other writers or research papers.
 Referring statics of the past few years
 Google searching information
 Communicating to relevant people in the research areas.
I have implied the above means to get towards a conclusion of my research. There have
been many debate and discussion over the topic of medium of instruction.
Data Collection
For the Research purpose I had collected secondary data from online and offline
resources which are mentioned in the Bibliography.
Among the secondary data the following were the reference material.
 Books from well known author from Institute’s Library
 Research Paper on Marketing of Cola Brands as well as generic papers
 Official websites of the Coca Cola India and Hindustand Coca Cola Beverages
 Blogs, Unofficial websites, News Websites etc.
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Sampling Method
The Data sampling method used here more like Snow Ball sampling as one link and
source in online, offline and personal medium lead to further detailing of the required
information to complete this project successfully.
People related to Coca Cola directly or indirectly were approached for getting their
precious feedback and updating of the research paper.
Following people were contacted while doing the research study
1) Mr. Kedar Vashi – Associate Vice President & Head (Learning & Development) –
Hindustan Coca Cola Beverages Pvt. Ltd – Gurgaon
2) Mr. Smit Dave – Human Resource Manager – Ahmedabad
3) Mr. Tushar Sharma – Former Channel Marketing Team Head - Ahmedabad
4) Dev Parmar – Coca Cola Rural Distributor – Rajkot District
Methodology
The Procedure of data collection was interacting personally and telephonically the
above people and presenting my findings with them for their feedback and correction
in case of any modifications required. Apart from this I have personally scouted
Locations which displayed the various images of Coca Cola in Wall paintings, Cooler
Machine, Vending Machine, Poster and Ice Box for my Case study purpose.
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SUBJECT
As mentioned the Subject of this research was Coca Cola as a Brand, Company with
wide range of products in the Indian market along with a comparative studies of its
promotional activities undertaken in various mass media tools such as Advertising,
Public Relations, Sales Promotion, and Corporate Communication in order to use a
holistic approach for its IMC.
Coca-Cola is the most recognized brand name in the world with 94% recognition. This
profile has spread with increasing rapidity in recent years as evidenced for example in
China, where Coca-Cola became the most recognized trademark in the late 1990s.
Today you can buy a Coke almost anywhere from Beijing to Buenos Aires, from
Moscow to Mexico City. The Coca-Cola Company sells half of all soft drinks consumed
throughout the world.
The Coca-Cola Company has, on occasion, introduced other cola drinks under the Coke
brand name. The most common of these is Diet Coke, Free, Coca-Cola Cherry, Coca-
Cola Zero, Coca-Cola Vanilla, and special versions with lemon, lime or coffee. In 2013,
Coke products could be found in over 200 countries worldwide, with consumers
downing more than 1.8 billion company beverage servings each day.
Based on its reach around the world it has been into Cross Cultural Communication as
per the geographical location of the market it is specifically targeting. The main Subject
of this research is to know Integrated Marketing Methods with blends of Cross cultural
communication done by Coca Cola in a completely diversified country of India.
Which would include its journey from the beginning till the present condition along
with keeping in mind its product life cycle (PLC). What all strategies were implemented
and what kind of innovative measures were developed by Coca Cola.
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CHAPTER – 1
What is Integrated Marketing Communications?
The American Marketing Association defines Integrated Marketing Communications
(IMC) as ‚a planning process designed to assure that all brand contacts received by a
customer or prospect for a product, service, or organization are relevant to that person
and consistent over time.‛
‚An approach to achieving the objectives of a marketing campaign, through a well
coordinated use of different promotional methods that are intended to reinforce each
other‛
IMC in Marketing
IMC is a strategic marketing process specifically designed to ensure that all messaging
and communications strategies are unified across all channels and are centred around
the customer. The IMC process emphasizes identifying and assessing customer
prospects, tailoring messaging to customers and prospects that are both serviceable and
profitable, and evaluating the success of these efforts to minimize waste and transform
marketing from an expense into a profit-centre.
A more contemporary definition states, "True IMC is the development of marketing
strategies and creative campaigns that weave together multiple marketing disciplines
(paid advertising, public relations, promotion, owned assets, and social media) that are
selected and then executed to suit the particular goals of the brand. Instead of simply
using various media to help tell a brand's overall story, with IMC the
marketing leverages each communication channel's essential strengths to achieve a
greater impact together than each channel could achieve individually. It requires the
marketer to understand each medium's limitation, including the audience's
ability/willingness to absorb messaging from that medium. This understanding is
integrated into a campaign's strategic plan from the very beginning of planning - so
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that the brand no longer simply speaks with consistency, but speaks with planned
efficacy. This concept inherently provides added benefits that include: a
singular/synchronized brand voice and experience, cost efficiencies generated through
creativity and production, and opportunities for added value and bonus.
Why Integrated Marketing Communications?
Five major shifts in the worlds of advertising, marketing and media have caused an
increased interest in (and need for) IMC. These include:
A shift From… To…
Traditional Advertising Digital/Interactive Media
Mass Media Specialized Media
Low Agency Accountability High Agency Accountability
Traditional Compensation Performance-Based Compensation
Limited Connectivity Pervasive Connectedness
These shifts are forcing organizations to look at the whole marketing picture, re-
aligning their communications and seeing things the way the consumer sees them – as a
constant flow of information from indistinguishable sources. Those who
practice IMC are avoiding duplicate messages, capitalizing on the synergy among
promotional tools, creating more effective marketing programs and maximizing ROI.
IMC weaves diverse aspects of business and marketing together. These include:
 Organizational culture
1) The organization's vision and mission
2) Attitudes and behaviors of employees & partners
3) Communication within the company
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 Four P’s & C's of Marketing mix
Four P’s Four C’s
Product Consumer
Price Cost
Place Convenience
Promotion Communication
 Advertising
Broadcasting/mass advertising: broadcasts, print, internet advertising, radio,
Television commercials
Outdoor advertising: billboards, street furniture, stadiums, rest areas, subway
Advertising, taxis, transit
Online advertising:- mobile advertising, email ads, banner ads, search engine result
Pages, blogs, newsletters, online classified ads, media ads
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 Direct marketing: direct mail, telemarketing, catalogs, shopping channels,
internet sales, emails, text messaging, websites, online display ads, fliers, catalog
distribution, promotional letters, outdoor advertising, telemarketing, coupons,
direct mail, direct selling, grassroots/community marketing, mobile
 Online/internet marketing
 E-commerce
 Search engine optimization (SEO)
 Search engine marketing (SEM)
 Mobile Marketing
 Email marketing
 Content marketing
Social Media (Facebook, Twitter, LinkedIn, Google +, Foursquare, Pinterest,
YouTube, Wikipedia, Instagram)
 Public Relations :- Special events, interviews, conference speeches, industry awards,
press conferences, testimonials, news releases, publicity stunts, community
involvement, charity involvement & events
 Sales Promotions:- Contests, coupons, product samples (freebies), premiums, prizes,
rebates, special events
 Trade shows:- Booths, product demonstrations
 Corporate Social Responsibility :- Donations, volunteering, charitable actions
When these diverse aspects of business and marketing are weaved together properly
an effective campaign can be achieved. Effective campaigns are demonstrated on the
Integrated Brands showcase which recognizes brands that are innovative, strategic
and successfully growing their sales.[3]
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CHAPTER -2
COMPANY’S HISTORY
The Coca-Cola Company traces it’s beginning to 1886,
when an Atlanta pharmacist, Dr. John Pemberton, [to the
right] began to produce Coca-Cola syrup for sale in
fountain drinks. However the bottling business began in
1899 when two Chattanooga businessmen, Benjamin F.
Thomas and Joseph B. Whitehead, secured the exclusive
rights to bottle and sell Coca-Cola for most of the United
States from The Coca-Cola Company.
The Coca-Cola formula and brand was bought in
1889 by Asa Griggs Candler [to the left]
(December 30, 1851 - March 12, 1929), who
incorporated The Coca-Cola Company in 1892.
Besides its namesake Coca-Cola beverage, Coca-
Cola currently offers more than 500 brands in
over 200 countries or territories and serves over
1.7 billion servings each day.
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
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COCA COLA AROUND THE WORLD AND INDIA
The Coca-Cola Company is the world's largest beverage company. Along with Coca-
Cola, recognized as the world's most-valuable brand, the Company markets four of the
world's top five soft drink brands, including Coke, Fanta, Sprite plus a wide range of
other beverages, including diet, light soft drinks, water, juices, juice drinks, tea, coffee
and sports drinks. Through one of the world's largest beverage distribution system,
consumers in more than 200 countries enjoy the Company's beverages at a rate
exceeding 1.8 billion servings each day.
Coca-Cola in India is the country's leading beverage Company with an unmatched
portfolio of beverages. The Company manufactures and markets leading beverage
brands like Coca-Cola, Diet Coke, Thums Up, Fanta, Limca, Sprite, Maaza, Minute
Maid Pulpy Orange, Minute Maid Nimbu Fresh, Minute Maid 100%, Burn, Kinley and
Georgia range of tea and coffee.
One of the early investors in India, the Coca-Cola system provides direct and indirect
employment to more than 1, 50,000 people. The Company has more than 2.2 million
retailers and our business has a multiplier effect on employment and earning
opportunities. The Company's business also positively impacts industries like glass,
plastics, resin manufacturers, sugar, automobiles, white goods manufacturers, banking
etc.
At the heart of business is a mission statement called the Coca-Cola Promise - "The
Coca-Cola Company exists to benefit and refresh everyone that it touches". This basic
proposition entails that the Company's business should refresh the markets, protect,
preserve and enhance the environment and strengthen the community. Coca-Cola in
India provides extensive support for community programs across the country, with a
focus on education, health and water conservation. The system has installed more than
500 rain water harvesting structures in the country. The system has also undertaken the
rejuvenation and reconstruction of several traditional water bodies including check
dams. The Coca-Cola system is committed to work with communities across India in its
effort to contribute to mutual growth and development.
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COCA COLA INDIA ORGANIZATION STRUCTURE
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CHAPTER - 3
COCA COLA CORPORATE COMMUNICATION
CORPORATE IMAGE
Corporate image is the perceived sum of the entire organization - its objectives and
plans. It encompasses products, services, management style, communications
activities and actions around the world. G.a. marken
An image is the set of meanings by which an object is known and through which
people describe, remember and relate to it. That is the result of the interaction of a
person’s beliefs, ideas, feelings and impressions about an object. (Dowling, 1986)
CORPORATE IDENTITY
• The way in which an organization presents itself
 Symbols
 Communication
 Behavior
• Referred to as Corporate Identity (CI) Mix
• Personality manifested through this mix
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CORPORATE IDENTITY MEDIA
• Product
• Price
• Logos
• Name
• Stationery
• Brochures
• Signs
IMPORTANCE OF IDENTITY
• Raises motivation among employees
• Inspires confidence in stakeholder groups
• Acknowledges important role of customers
• Acknowledges vital role of financial groups
THE THREE I’S - MISSION ORIENTED
• Identity: Who we are
• Image: What we are
• Ideas: What we stand for and believe
In the year 1886, May 8th,
Coca‑Cola was created by John S. Pemberton and served at
Jacobs’ Pharmacy. Company accountant, Frank Robinson, names the drink
‚Coca‑Cola,‛ and thinking the two Cs would look well in advertising, pens the famous
Spencerian script logo. From then on the Company’s Logo also evolved according to
the change of time. Following are the logos year wise
Coca Cola Logo
• Visit cards
• Buildings
• Uniforms
• Sponsorship
• Packaging
• Work environment
• Figure or
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Brand Identity
The first step in understanding Image Advertising is to understand the image being
created, i.e. Brand Image. Brand Image is consumers’ perception of the brand in
question. There are a number of tools available to explore the identity of a brand. One
such tool is Kapferer’s Prism. As shown in the exhibit above, there are many facets to a
brand. Kapferer identifies six key characteristics that together define the brand:
Physique – the physical attributes of the brand – Shape, Logo, Colour
Personality – the personification of the brand – Refreshing Happy
Relationship – the relationship between the consumer and the brand
Culture – the core values of the brand – Social, Sharing, Family Value
Reflection – the way consumers want to be perceived when using the brand
Self-Image – the image that consumers have of themselves when associated with the
brand
A combination of these characteristics can be used to identify what the brand ultimately
stands for.
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The Contour Bottle
The tremendous success and growth of Coca‑Cola encouraged other competitors to try
to imitate Coke by offering bottles with slight variations on the trademarked name and
distinctive script logo. Koka-Kola, Koca-Nola, Celery-Cola and Koke were just a few of
the products thattried to capitalize on our success. Working with our bottlers, The
Coca‑Cola Company asked bottle manufacturers to submit designs for a bottle for
Coca‑Cola that was so distinctive that it could be recognized by feel in the dark or
identified lying broken on the ground.
Alexander Samuelson of the Root Glass Company in Terre Haute, Indiana, designed
the distinctive shape, and it was patented on November 16, 1915. The bottle was
modified and slimmed down to work with the current bottling equipment and went
into broader production in 1916. This contour bottle was the only packaging used by
The Coca‑Cola Co for 40 years until the king-size package was introduced in 1955.
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In 1960, the contour bottle was granted registration as a trademark by the U.S. Patent
Office. Today, it is still the most recognized bottle in the world, and the shape is used
for packaging from the new aluminum can to the 2-liter family size.
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COCA COLA INDIA - PRODUCT RANGE
Coca has been catering to variety of audience. When it arrived in India its first act was
to get maximum share of Parle Company and its 60 bottling plants along with India’s
top ranking soft drinks of that time i.e. Thums Up, Maaza, Limca etc.
Coca Cola Company currently caters to following list of product in India
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CHAPTER - 4
India and Cross Cultural Communication
‚The integrated sum total of learned behavioral traits those are manifest & shared by
members of society‛ OR ‚The way in which people in a society collectively attach
meanings to concepts & contexts around them & respond on the basis of those
meanings‛
• India is a confluence of cultures. There are 29 states and 7 Union Territories, each as
different as another country
• The home of one of the world's oldest living civilizations, and several of the world's
great religions. Vast diversity in art, architecture, music & dance, customs, food and
clothing
• Hindi is the official language, Spoken in most of the urban cities of India and by 45%
Population
• The Constitution of India has recognized 22 different languages that are prevalent in
the country. There are 844 dialects that add to the multilingual nature of the country
• English enjoys associate status but is the most important language for national,
political and commercial communication. Most of the educated Indians speak English,
with varying fluency, along with one local language
• India has been changing, re-shaping and re-inventing itself for as long as anywhere on
earth, forever producing new forms of culture and absorbing new influences from all
directions
Components
of culture
Social
Interaction
Language
Aesthetics
ReligionEducation
Value
System
Material
Life
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COKE IN INDIA
Coca-Cola was the leading soft drink brand in
India until 1977 when it left rather than reveals
its formula to the government and reduces its
equity stake as required under the Foreign
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 Thumbs Up (the most trusted brand in India), 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, Maaza, Limca, Sprite and Fanta.
In 2000, the company launched the Kinley water brand and in 2001, Shock energy drink
and the powdered concentrate Sunfill hit the market.
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Company Overview
Type Soft Drink (Cola)
Manufacturer The Coca- Cola Company
Founder (s) John S. Pemberton
Country of Origin United States, Atlanta Georgia
Introduced 1886
Area Served Over 200 countries
Color Caramel E-150d
Flavors Cola, Cola Green Tea, Cola Lemon,
Cola Lemon Lime, Cola Lime, Cola
Orange and Cola Raspberry.
Employees 92,400
Licence Of 500 Brands in 200 Countries
Product Type A leading manufacturer, distributor
and marketer of non-alcoholic
beverage concentrates & syrups
Website www.coca-cola.com
Servings per Day 1.6 Billion
VISION
• People: Be a great place to work where people are inspired to be the best they
can be.
• Portfolio: Bring to the world a portfolio of quality beverage brands that
anticipate and satisfy people's desires and needs.
• Partners: Nurture a winning network of customers and suppliers, together we
create mutual, enduring value.
• Planet: Be a responsible citizen that makes a difference by helping build and
support sustainable communities.
• Profit: Maximize long-term return to shareowners while being mindful of our
overall responsibilities
• Productivity: Be a highly effective, lean and fast-moving organization.
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MISSION
• To refresh the world in body, mind and spirit
• To inspire moments of optimism through our brands and our actions
• To create value and make a difference everywhere we engage.
VALUES
 Leadership: The courage to shape a better future
 Collaboration: Leverage collective genius
 Integrity: Be real
 Accountability: If it is to be, it's up to me
 Passion: Committed in heart and mind
 Diversity: As inclusive as our brands
 Quality: What we do, we do well
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HINDUSTAN COCA- COLA BEVERAGES PRIVATE LIMITED (HCCBPL)
Hindustan Coca-Cola Beverages Private Limited (HCCBPL) is a wholly-owned
subsidiary of TCCC, and the largest bottler in India. It is a part of The Coca-Cola
Company’s Bottling Investments Group (BIG2). HCCBPL has 24 bottling plants at
strategic locations spread across the country and covers about two-thirds of the bottling
franchise (by population) in India. HCCBPL works actively with approximately 3800
distributors across the country to place beverage products in 1.4 Million retail outlets to
provide refreshment to 25 Million consumers every day.
The registered & corporate offices of HCCBPL are located at:
Registered Office:
B-91, Mayapuri Industrial Area, Phase – I, New Delhi – 110 064, India
Corporate Office:
3rd Floor, Orchid Centre,DLF Golf Course Road, Sector 53, Gurgaon– 122 001, Haryana,
India
BOTTLING PARTNERS
The authorised bottlers of The Coca-Cola Company prepare, package, distribute and
sell beverages to our customers and vending partners, who in turn sell our products to
consumers. The Coca-Cola System in India has extensive reach and inspires moments
of happiness across the country; a small volume of our beverages are also exported to
neighboring markets like Nepal, Bhutan, Bangladesh and Maldives (demand driven). In
the year 2013, three new bottling plant sites became operational at:
• Chhata (Brindavan Agro Industries Limited)
• Unnao (Brindavan Bottlers Limited)
• Bidadi (HCCBPL)
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FRANCHISEE BOTTLING PARTNERS
The Coca-Cola System in India includes Franchisee Bottlers (FBO – licensed by TCCC)
who prepare, package, distribute and sell our beverage brands. Following is a list of
such FBOs who are located across the country:
• Amrit Bottlers Private Limited
• Brindavan Agro Industries Private Limited
• Brindavan Beverages Private Limited
• Brindavan Bottlers Private Limited
• Bengal Beverages Private Limited
• Diamond Beverages Private Limited
• Enrich Agro Food Products Private Limited
• Kandhari Beverages Limited
• Ludhiana Beverages Private Limited
• Moon Beverages Limited
• Narmada Soft Drinks Private Limited
• Sri Sarvaraya Sugars Limited
• Superior Drinks Private Limited
• Udaipur Beverages Private Limited
• Wave Beverages Private Limited
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SWOT ANALYSIS
S W
O T
Strengths
Global presence
Brand awareness
Strong marketing & advertising
Global brand in terms of value
($77,839 billion)
World’s largest market share in
beverage
Biggest beverage distribution
channel
Customer loyalty
Corporate social responsibility
Weaknesses
Negative publicity
Low profits in strong areas
Decline in cash flow
Supply is restricted
Significant focus on carbonated
drinks
Undiversified product portfolio
Brand failures or many brands
with insignificant amount of
revenues
Opportunities
• Aggressive acquisitions
• Increase in demand for bottled
water
• Bottled water consumption growth
• Increasing demand for food &
beverage
• Growing beverages consumption
in emerging markets
• Growth through acquisitions
Threats
• Intense competition
• Slowdown in rural demand
• Negative health effect
• Soda Fountains.
• Changes in consumer preferences
• Water scarcity
• Competition from PepsiCo and
Other Local Brands
• Saturated carbonated drinks
market
Internal
Factors
External
Factors
Positive
Negativ
e
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COCA COLA PESTLE ANALYSIS
SOCIAL/CULTURAL ENVIRONMENT
 The company has had the ability to grow with the world and all the changes that
have been made over the years.
 Their adaptation abilities have helped the company survive for over one hundred
years.
 The bottles have also changed shape and style over the years to help with
environment.
 Coca Cola has always tried to focus on Indian Culture, festivals and the joy of
drinking Coke with family unlike its rival cola companies focusing on only Youth
 Many Indian Peoples are practicing healthier lifestyles.
 Many are switching to bottled water and diet colas instead of beer and other
alcoholic beverages.
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POLITICAL AND REGULATORY ENVIRONMENT
 The Governments involvement in the soda industry has not affected operations
much. There have been regulations put out for bottling procedures & the way Coke
was labeled.
 In the early years of the company there was actually one ingredient removed from
the original formula.
 The ingredient was the Coca also known as ‚Cocaine‛ from the recipe.
ECONOMIC ENVIRONMENT
Company also had decided to leave in year 1977 during Morarji Desai’s Government.
George Fernandez’s department under Janta Party rule was the acting force. Foreign
Exchanges Regulation Act (FERA) demanded foreign companies to dilute their equity
stake in their Indian associates to 40 percent if they wished to remain in the country.
 The Company left rather than compromising its Cola formula to the Government.
 Coca- Cola has a continuous business cycle that never stops.
 They offer so many different products that there are no specific dropping points on
sales.
 As long as the product is being manufactured and continues to grow around the
world the market for the drinks offered will not diminish anytime soon.
 The Coca-Cola Company contracts with numerous bottling companies around the
world to create and distribute their beverages.
 The Coca-Cola Company has been very successful in helping other nations grow and
become economically stable by investing millions of dollars back into the countries in
which they are operating.
 The non-alcoholic beverage industry has high sales in countries outside the U.S.
TECHNOLOGICAL ENVIRONMENT
 With the new bottling techniques a lot more of cokes products have been able to be
distributed a lot faster and in higher volumes.
 They have the capability to serve 1.6 billion people a day.
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 The company has also managed to purchase most of the bottling plants and make
them a pure company asset rather than being privately owned.
 With the advancements in advertising and the Medias that can be used Coke has
been able to reach more people faster.
 The new technology of internet and television which use special effects for
advertising through media
 Introduction of cans and plastic bottles have increased sales for Coca-Cola as these
are easier to carry and you can ‚bin‛ them once used.
 There has been introduction of new machineries all the time.
LEGAL ANALYSIS
 Soft drink Inter brand competition act of 1980 secured the right of concentrate
 Producers (cps) to grant exclusive territories to bottlers
 The company was granted a trademark for the name ‚Coke‛ in 1945.
 Pressure from the scientific community for the FDA to enforce caffeine labels
warning of the dangers of caffeine consumption
 Obstacles in international operations included regulations, price controls,
advertising restrictions and lack of infrastructure Eg. China, Cuba
ENVIRONMENTAL ANALYSIS
 Increasing the importance of environmental policies does effect Coca Cola directly
 The Environmental Protection group like NGO who are against Coca Cola for using
water for its factory in Gujarat and Orissa
 Introducing water saving methodology for its Cola production. Eg. Anandana –
Coca-Cola India Foundation
 Anandana focuses on supporting social projects in the domains of water
sustainability and the spread of new and renewable energy sources.
Geographically, Anandana focuses on some of the most backward regions of the
country.
 The Pesticide crisis which took place in year 2003
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 In spite of these Coca Cola has been able to make a clean image through CSR
activities and ads showing its quality tests in factory.
DEMOGRAPHIC ANALYSIS
 Educated people belonging to upper and middle-income groups also commonly use
Coca-Cola.
 Major emphasis of Coca-Cola is to attract teenagers.
 Diet Coca-Cola offered by Company is Very popular among diabetic patients.
 Consumers of the ages of 37 to 55 are also increasingly concerned with nutrition.
[Source: Coca-Cola Back to School Conference]
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Coca Cola’s Porter’s Five Analysis
w
Supplier
Power
Buyer
Power
Competitive
Rivalry
Threat of
Substitution
Threat of
New Entry
Low Pressure
 13 Bottling Partners
 62 Bottling Plants
 25,000 Employees
 1,50,000 Industry People
 2.6 million retail Outlets
Low Pressure
 Large customer chain
 All Age group availability
 Pepsi only focus on Youngsters
 Retailers like Wal-mart, McDonald
Have bargain power.
High Pressure
 Quality differences
 Competitors Water, Pepsi, Amul,
Frooti, Soda Fountains, Rasna
 Refreshment Drinks
 Different content
Medium to High Pressure
 Substitute performance
 Cost of change
 Limited Taste variety
 Water is only substitute as per Coke
Cola
Medium Pressure
 More than a century old brand
 High Brand Value
 Registered as Trademark, well
known brand with recipe as secret
 Sponsors of big events like Olympics,
Commonwealth Games, TV shows
Balance
of
Power
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COCA COLA’S BCG MATRIX
Once the businesses brand has been classified, they are placed into four different
quadrants of the matrix. The quadrants of the matrix are divided into
1) Cash Cows – High market share but low growth rate (most profitable). This type of
product of any brand is able to generate substantial amount of profit on regular basis
2) Stars – High market share and High growth rate (high competition). This product is
the high selling and revenue earning product, sometimes which eats the main brand
itself i.e. Brand Cannibalization.
3) Question marks – Low market share and high growth rate (uncertainty). This
product can be new or old but is not able to have a defined position. It’s uncertain
where it would end up i.e. Cash Cow position or Dog.
4) Dogs – Low market share and low growth rate (less profitable or may even be
negative profitability). Its not able to generate revenue as much as its production cost.
On the basis of this classification, strategies are decided for each Product
Thums Up, Coca Cola, Maaza Sprite, Fanta, Coke Zero
Kinley water & Soda, Limca Diet Coke, Minute Main,
Burns
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PRODUCT LIFE CYCLE OF COCA COLA PRODUCTS BY BCG
MATRIX ANALYSIS
Coke Zero is just introduced in India; it needs some time to decide its performance in
the soft drink industry. Thus it is not only in introduction stage but also as ‚Question
mark‛ product.
Sprite and Fanta are already introduced long before but they face good competition
from Mountain Dew, Seven Up and Mirinda which caters to similar taste. Thus they
are also in question mark.
Thums Up has been the biggest sellout since soft drinks were introduced in India, even
more than Coca Cola itself. There was a time that Coca Cola was facing brand
cannibalization among its own product. But good marketing and promotion slowly
made the main drink come to star level. Maaza is one more drink which is able to stand
unique in spite of other contemporaries like Slice and Fruity. Thus, they are stars.
Limca, Kinley bottled water and Kinley soda are cash product because they are able to
generate enough revenue for its maiden company and have a group of loyal consumers
like kids, females who prefer less strong drink.
Diet Coke, Minute main, Nimbu and Burn are the drinks which are introduced few
years back but are not very popular to a large audience. Burn faces more competition
from Red Bull. Their revenue is less comparatively
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CHAPTER-5
COCA COLA STRATEGIC COMMUNICATION
What is Strategic Planning?
Strategic planning is an organization's process of defining its strategy, or direction, and
making decisions on allocating its resources to pursue this strategy. It may also extend
to control mechanisms for guiding the implementation of the strategy.
In order to achieve the same communication to both internal & external publics is
required.
Following skills are important in strategic planning
a. Research to understand current situation
b. Utilization of maximum resources by deciding modes operandi
c. Choosing medium, media mix and tactics operations
d. Taking feedback and Researching after completing project
NINE STEPS OF STRATEGIC PLANNING
 Phase One: Formative Research –
 Step 1: Analyzing the Situation
 Step 2: Analyzing the Organization
 Step 3: Analyzing the Publics
 Phase Two: Strategy –
 Step 4: Establishing Goals and Objectives
 Step 5: Formulating Action and Response Strategies
 Step 6: Using Effective Communication
 Phase Three: Tactics –
 Step 7: Choosing Communication Tactics
 Step 8: Implementing the Strategic Plan
 Phase Four: Evaluative Research –
 Step 9: Evaluative the Strategic Plan
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Phase One: Formative Research
Step 1: Analyzing the situation
Analysis of the situation is the crucial beginning to the process. It is imperative that all
involved-planner, clients, supervisors, key colleagues and the ultimate decision
makers agrees to the opportunity or threat to be observed in this program.
Step 2: Analyzing the Organization:
This step involves a careful and candid look at three aspects of the organization:
(1) Its internal environment (mission, performance and resources),
(2) Its public perception (reputation)
(3) Its external environment, (competitors and opponents, as well as supporters).
Step 3: Analyzing the Publics:
This step includes an analysis of each public in terms of their wants, needs and
expectations about the issue, their relationship to the organization, their involvement in
communication and with various media, and a variety of social, economic, political,
cultural and technological trends that may affect them
To analyze the publics, three things are very important to understand the market
segments which comprises from family to friends, people to politics, boss to business
etc. and they are:
i). Public: It consist of communication and interdependency between organizations
having common goals, command interest and face common concern.
ii). A Market: It’s mainly to conduct business or generate support and participation.
iii). Audiences: The main target or people for whom the process of informing &
educating to aware is done.
Step 4: Establishing Goals and Objectives
The second phase of the planning process, Strategy, deals with the heart of planning:
making decisions dealing with the expected impact of the communication, as well as
the nature of the communication itself.
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Phase Two: Strategy
Step 5: Formulating Action and Response Strategy:
A range of actions is available to the organization, and in this step you consider what
you might do in various situations. This section includes typologies of initiatives and
responses.
Communication Strategy: Approach with persuasion to make public support and use
maximum advantage of this service should be created in order to avoid public
opposition in development.
Proactive Strategies: Utilizing Visual media and one on one personalized
communication to approach people in order to get supportive response. As, there are
fair chances of people opposing the operations when in progress if they lack the vision
of big picture
Reactive Strategies: Keeping Crisis & Safety measures in mind and in case of any
unexpected occurrence or accident taking place then convincing public to assure of
being careful next time with guarantee of precautionary measures.
Step 6: Using Effective Communication:
It deals with the various decisions about the message, such as the sources who will
present the message to the key publics, the content of the message, its tone and style,
verbal and nonverbal cues, and related issues
Following strategy can be considered to communicate effectively
Information level- Utilization of upgradable mass media like New Media, Social
media, Short Message Service, Monthly One article on Coke in Popular News Papers,
Related events and Site updates
Persuasion level: In order to persuade skills like communication, data analyzing,
convincing, negotiation etc. is required. The best way to achieve the desired response is
to do lobbying and PR activity consisting of propaganda of modes operandi with
expected results.
Dialogue level: The Level of communication should be taking place considering
Megacities & Metro city in mind. Higher authorities in charge of decision making
should be communicating to the common mass and audience
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Phase Three: Tactics
During the Tactics phase, various communication tools are considered & the visible
elements of the communication plan are created.
Step 7: Choosing Communication Tactics
This inventory deals with the various communication options. Specifically, the
planner considers four categories:
(1) Face-to-face communication & opportunities for personal involvement
(2) Organizational media (sometimes called controlled media)
(3) News media (uncontrolled media)
(4) Advertising and promotional media (another form of controlled media).
While all of these tools can be used by any organization, not every tool is appropriate
for each issue. This is the phase where we allocate the controlled and uncontrolled
media precisely.
Step 8: Implementing the strategic plan
You develop budgets and schedules and otherwise prepare to implement the
communication program. This step turns the raw ingredients identified in the previous
step into a recipe for successful public relations and marketing communication
Phase Four: Evaluative Research
The final phase, Evaluative Research, deals with evaluation and assessment, enabling
you to determine the degree to which the stated objectives have been met and thus to
modify or continue the communication activities
Step 9: Evaluating the Strategic Plan
This is the final planning element, indicating specific methods for measuring the
effectiveness of each recommended tactic in meeting the stated objectives.
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COCA-COLA INDIA
Coca-Cola is a leading brand in the Indian beverage market with a 60 percent share in
the carbonated soft drinks segment, 36 percent share in fruit drinks segment and 33
percent share in the packaged water segment.
INITIAL SUFFERINGS
Coca Cola initially entered the Indian market during the late 1970s it was though a well
-known drink by the time it had entered the market. In the late 1977 The Minister of
Industries, George Fernandes, in the new Janata government of Morarji Desai, projected
itself as a party dedicated to Swadeshi (self-reliance), raised a particular provision of
the Foreign Exchanges Regulation Act (FERA) which demanded foreign companies to
dilute their equity stake in their Indian associates to 40 percent if they wished to
operate in the country.
After the economic reforms policy of LPG (Liberalization, Privatization and
Globalization) the company again entered in India in the year 1993 after the new
government decided to liberalize the market again.
INITIAL MISTAKE
This entry in the market was more dramatic for the company as it bought out all the
leading soft drink brands of India like Thums-up, Limca, and Gold Spot resulting to a
position where it was accused of cannibalizing its competition by using its financial
power. This was due to the fact that for some time Coca Cola was the only product into
prime focus of their promotion rather than other Indian brand it had over taken.
Though this was slowly realized by the Company and they gave Thums up and Limca
equal weightage. This gave the Coca Cola Company an advantage of getting ready
made established set up of 60 Bottling Plants of Parle Group and additional 13 of the
companies own in India benefitting it to cover 60% of the market share of Cola Industry
in India.
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STRATEGIC DRAWBACK IN THE BEGINNING
In the beginning the company signed well known stars like Aamir Khan, Hritik Roshan,
Karishma Kapoor, Rani Mukherjee, Akshaya Kumar, Aishwaria Rai from film industry
and did heavy converted Ads in movies like Taal, Rang De Basanti, Yadeein etc. It also
bagged that time shining cricketer Virendra Sehwang who was in his best form and
new to Indian Cricket. Trying to be present in minds of the customers as much as
possible from any recollection medium like TV, Radio, News Paper, Movies etc.
But, even after years had passed in the Indian market, the company was unable to make
profits compared to its competitors. The breakeven point or profit was not yet
generated because of its very aggressive investment strategies of large amounts of
promotions and competitive pricing strategy to try and beat the competition.
REASON OF THE ERROR
Their prime appeal was to urban lifestyle and to urban youth. This was more like
American way of life which could only influence a limited number of people. There
was a large segment which preferred Thums Up, Limca a local brand more than and
Cola’s which were supposed to be ‘Refrigerated’ before consumption. The only
advantage that Coca Cola could consider that time was taking over the bestselling soft
drink brand.
Coca Cola realizing its lack of understanding of local preference and Indian culture did
an extensive research in India. It realised that it was competing with traditional
refreshments such as Narial-pani (coconut-water), Ganne ka Ras (Sugarcane Juice),
Nimbu-pani (lemon-water), Chai (tea), Chaaj - Lassi (yoghurt drink), Shikanji (Sweet-
Syrup) and Fruit juices. All these traditional drinks were available in price half of the
Cold drinks available in market.
All this was also giving indication towards a big demographic population which was
not properly noticed by Coca Cola Middle Class, Lower Middle Class and Rural India.
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Additionally one could note that affordability was a driver in the Indian context for
desirability. It was also noted that soft drink consumption was somewhat limited to
special occasions like outings, parties, festivals and weddings in compared to more
developed countries where daily consumption was in practice.
Within consumers Coke located two distinct target markets: urban youth which they
called ‚India A‛ and rural Indians which were called ‚India B‛. ‚India A‛ only made
up 4% of India’s total population, remaining 96% population consisted of Middle class
and Rural people who were not the prime focus of Coca Cola promotional activity.
Coca Cola appeared like a product for niche product.
STRATEGIES TO OVERCOME CHALLENGES
STRATEGIC IMPLIMENTATION
It was understood by cases of other FMCG product companies like Soap or Shampoo or
toothpaste producer that Size, Price and Reach does matter! It was clear that FMCGs in
India require employment of the 3As of Availability, Affordability and Acceptability.
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AVAILABILITY
Once CCI entered the rural market, it focused on strengthening its distribution network
there. It realized that the centralized distribution system used by the company in the
urban areas would not be suitable for rural areas. In the centralized distribution system,
the product was transported directly from the bottling plants to retailers (Refer Figure
I). However, CCI realized that this distribution system would not work in rural
markets, as taking stock directly from bottling plants to retail stores would be very
costly due to the long distances to be covered. The company instead opted for a hub
and spoke distribution system
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Under the hub and spoke distribution system, stock was transported from the bottling
plants to hubs and then from hubs, the stock was transported to spokes which were
situated in small towns. These spokes fed the retailers catering to the demand in rural
areas. CCI not only changed its distribution model, it also changed the type of vehicles
used for transportation. The company used large trucks for transporting stock from
bottling plants to hubs and medium commercial vehicles transported the stock from the
hubs to spokes. For transporting stock from spokes to village retailers the company
utilized auto rickshaws and cycles. Commenting on the transportation of stock in rural
markets, a company spokesperson said, ‚We use all possible means of transport that
range from trucks, auto rickshaws, cycle rickshaws and hand carts to even camel carts
in Rajasthan and mules in the hilly areas, to cart our products from the nearest hub.‛
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AFFORDABILITY
A survey conducted by CCI in 2001 revealed that 300 ml bottles were not popular with
rural and semi-urban residents where two persons often shared a 300 ml bottle. It was
also found that the price of Rs10/- per bottle was considered too high by rural
consumers. For these reasons, CCI decided to make some changes in the size of its
bottles and pricing to win over consumers in the rural market. So Coke launched a
200ml returnable glass bottle called ‚Chota Coke‛at a lower price of Rs. 5 with
accompanying advertising campaigns
The Chota Coke of Coca Cola India proved competitive against local brands in the
unorganized sector. It was reported that in the states of Rajasthan and Gujarat the local
cola brands such as Choice and Tikli costed only half the price offered by CCI, which
gave them the advantage in garnering the major market share before CCI came out
with Chota Coke. CCI also targeted the rural consumer aggressively in its marketing
campaigns, which were aimed at increasing awareness of its brands in rural areas.
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ACCEPTABILITY
The initiatives of CCI in distribution and pricing were supported by extensive
marketing in the mass media as well as through outdoor advertising. The company put
up hoardings in villages and painted the name Coca Cola on the compounds of the
residences in the villages. Further, CCI also participated in the weekly Mandies by
setting up temporary retail outlets, and also took part in the annual haats11 and fairs -
major sources of business activity and entertainment in rural India. CCI also launched
television commercials (TVCs) targeted at rural consumers. In order to reach more rural
consumers, CCI increased its ad-spend on Doordarshan[6]
The company ensured that all its rural marketing initiatives were well-supported by
TVCs. When CCI launched Chota Coke in 2002 priced at Rs. 5, it bought out a
commercial featuring Bollywood actor Aamir Khan to communicate the message of the
price cut and the launch of 200 ml bottles to the rural consumers.
A sub-section of the Thanda campaign
promoted the reduced size and
corresponding price reduction of Coca Cola
bottles, using the tag-line Panch Rupiya
Matlab Chota Coca Cola (Five Rupees Means
Small Coca Cola) - UP Bahiya in the Panch
Rupiya TVC
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The commercial was shot in a rural setting. In the summer of 2003, CCI came up with a
new commercial featuring Aamir Khan, to further strengthen the Coca-Cola brand
image among rural consumers.
The commercial aimed at making coke a generic name for ‘Thanda.’ Of the reason for
picking up the word ‘Thanda’, Prasoon Joshi, national creative director – McCann
Erickson, the creator of the commercial, said, ‚Thanda is a very North India-centric
phenomenon. Go to any restaurant in the north, and attendants would promptly ask,
‘thanda ya garam?’ ‘Thanda’ usually means lassi or nimbu pani, ‘garam’ is essentially
tea. Because the character, in itself, represented a culture, we wanted to equate Coke
with ‘Thanda’, since ‘Thanda’ too is part of the popular dialect of the north. Thus
making ‘Thanda’ generic for Coca-Cola. With the long-playing possibilities of the
‘Thanda’ idea becoming evident, ‘Thanda’ became the central idea. Once we decided to
work on that idea, the creative mind just opened up.‛[7]
Between March and September 2003, CCI launched three commercials with the ‘Thanda
Matlab Coca-Cola’ tag line. All the three commercials aimed to make rural and semi-
urban consumers connect with Coca-cola.
The first ad featured Aamir Khan as a ‘Tapori’ (street smart); in the ad he makes the
association between Coca-Cola and the word ‘Thanda.’
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The second commercial in the series featured Aamir Khan as a ‘Hyderabadi shop-
keeper’; here again he equates the word ‘Thanda’ with Coca-Cola.
The third commercial featured Aamir Khan as a ‘Punjabi farmer’ who offers Coca Cola
to ladies asking for Thanda. The three commercials showed progression in associating
‘Coke’ with ‘Thanda’ in a rural/ semi-urban context.
In the first commercial the connection of Coke with Thanda was made, in the second
one there was a subtle difference, with the shopkeeper asking customers to ask for
Thanda instead of Coke, and the third commercial showed that when one asked for
Thanda, one would get Coke. Analysts said that all the three commercials succeeded in
make rural consumers connect to Coke and increased awareness of the brand among
them. Along with TVCs, CCI also launched print advertisements in several regional
newspapers.
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To be successful, the company decided invested more than US$ 1bn to build overall
infrastructure required for succeeding in India. The company invested in setting-up 25
wholly owned bottling plants in India. All these steps taken by the company ensured
that the company was able to ensure a deeper level of penetration in the Indian market
– even in the rural areas [4]
Following the Success of these TVCs the Company launched another Advertisement to
symbolize Coca Cola as Thanda. Where a Nepali Tourist Guide makes a honeymoon
couple realize that Thanda means Coca Cola not just any other drink
FACILITY AND DURABILITY
Though it was made to believe that Thanda means Coca Cola the company knew that to
just pitch it as Thanda (Cold) and serve it cold is another thing. Thus Coca Cola
introduced first time in India facility for keeping Cold drink cold that Coca Cola Ice
Box. It was useful because of the following reason
1) No Electricity required. Considering that villages have more power cut and less
electric supply.
2) Easy storage and economical. It was natural that location where they had to sell their
soft drink in half the rate would not afford Freeze Cooler or Refrigerator.
3) Stands or Mobile Coca Cola sales carrier were introduced for village, Highway
Vendors
4) Their focus was to be more Global + Local = Glocalized
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Adaptation to distribution in diverse conditions includes use of branded rickshaw vans,
tricycles and lahris (pushcarts) that can cope with congested Indian urban roads and an
extensive network and hub system has been devised for rural delivery. (Kaye, 2004)
Additionally lahris mobilise supply, as fixed shops are often not apparent in popular
locations such as parks, colleges and even slums. Such vehicles are commonly branded
by local sign-writers who also produce numerous wall advertisements – another way in
which the Coca Cola visual marketing has become localised.
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CHAPTER- 6
CRISIS COMMUNICATION
Strategic Communication - It is based on research and subject to eventual evaluation.
It operates within a particular environment, which involves both the organization
and groups of people who affect in some way.
 Issue – a topic of discussion, a matter in dispute or a sensitive subject within an
organization, industry or society
 Accident – an unexpected and undesirable event, usually one resulting in damage
or injury
 Emergency – a serious situation or unexpected occurrence that demands immediate
action and communication
 Crisis – a critical or decisive point at which an organization’s response to an issue,
accident or emergency threatens the reputation and/or future standing of the
organization
 Goal: Prevent issues, accidents and emergencies from becoming crises
Why Crises Happen
 Management’s failure to understand the issue, public opinion
 Failure to effectively engage the media – allowing others to control the issue
 Failure to demonstrate control, concern and credibility
 Over-reliance on legal response/defense
Three C’s of Success
 Control -Take appropriate action, explain it
 Concern - Demonstrate concern, compassion
 Credibility
– Know the facts
– Be first with the news
– Build trust
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Crisis Management
Crisis management is a situation-based management system that includes clear roles
and responsibilities and process related organizational requirements company-wide.
The response shall include action in the following areas: Crisis prevention, crisis
assessment, crisis handling and crisis termination. The aim of crisis management is to
be well prepared for crisis, ensure a rapid and adequate response to the crisis,
maintaining clear lines of reporting and communication in the event of crisis and
agreeing rules for crisis termination.
Crisis management consists of different aspects including
 Methods used to respond to both the reality and perception of crises.
 Establishing metrics to define what scenarios constitute a crisis and should
consequently trigger the necessary response mechanisms.
 Communication that occurs within the response phase of emergency-management
scenarios.
Types of Crisis
1. Natural disaster
2. Technological crises
3. Confrontation
4. Malevolence
5. Organizational Misdeeds
6. Workplace Violence
7. Rumours
8. Terrorist attacks/man-made disasters
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Before Emergencies Strike / Crisis Management
 Crisis Management: It is the name given to the process by which an organization
deals with out-of-control issues.
 Consider likely, unlikely scenarios
 Identify key staff members, roles
 Establish relations with external contacts
 Develop a plan
- Objectives for each audience
- Think, ‚How would we?‛
- Identify resources
- Training, rehearse staff members
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COCA COLA’S CRISIS COMMUNICATION
THE PESTICIDE CONTROVERSY
Coca Cola had suffered in the Indian market
because of the pesticides controversy that
took place in the year 2003 that resulted in 11
percent decline in the sales during that time. It
had a very negative impact on Coca-Cola’s
brand image in the minds of the Indian
consumers [8]. This was claimed by CSE that
Coca Cola had 25% pesticide content
On August 5, 2003, The Center for Science and Environment (CSE), an NGO in India,
attacked the safety of Coca-Cola India’s products in a press release titled ‚Twelve Major
Drink Brands Sold in and Around Delhi Contain a Deadly Cocktail of Pesticide
Residues.‛
STRATEGY COMMUNICATION TO CRISIS
The company successfully overcame the biggest challenge it faced in the year 2003 of
the pesticide controversy. They hired Aamir Khan and Smriti Irani - popular TV actor
at that time to ensure that customers retain the faith they had in the market. They
showed commercial where Aamir is given a tour of the Coca-Cola factory and is briefed
about the 400 quality control tests that are a part of the production process to convince
the customers that the brand they are consuming is totally safe for them.
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The Company had put wall paintings, Hoardings, Banners and also introduced SMS
Contact for any Coca Cola Factory visit for people who would text ‚TRUST‛ to Coca
Cola’s Initiative number for the above mentioned crisis
Aamir Khan was also shown as a Bengali Babu who certifies Coca Cola as good for
consumption after this controversy for the common audience, specifically pitching to
Indian household, family and youth.
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WATER POLLUTION AND THE OVER-EXTRACTION OF GROUNDWATER
Coca-Cola was also accused of causing water shortages in – among other areas – the
community of Plachimada in Kerala, southern India. In addition, Coca-Cola was
accused of water pollution by discharging wastewater into fields and rivers
surrounding Coca-Cola’s plants in the same community. Groundwater and soil were
polluted to an extent that Indian public health authorities saw the need to post signs
around wells and hand pumps advising the community that the water was unfit for
human consumption[8]
In 2000, the company established its production operations in Plachimada. Local people
claimed that they started experiencing water scarcity soon after the operations began.
The state government initiated proceedings against Coca-Cola in 2003, and soon after
that the High Court of Kerala prohibited Coca- Cola from over-extracting
groundwater.[8] By 2004 the company had suspended its production operations, while
it attempted to renew its licence to operate. Coca-Cola argued that patterns of
decreasing rainfall were the main cause of the draught conditions experienced in the
area. After a long judicial procedure and ongoing demonstrations, the company
succeeded in obtaining the licence renewal to resume its operations[8] In 2006 Coca-
Cola’s successful re-establishment of operations was reversed when the government of
Kerala banned the manufacture and sale of Coca-Cola products in Kerala on the ground
that it was unsafe due to its high content of pesticides.[8] However, the ban did not last
for long and later that same year the High Court of India overturned Kerala’s Court
decision.[8]
After overcoming all these challenges, Coca-Cola was again set to expand India as a
market further and took it from number 7 in the global pecking order to a market that is
number 5 for Coca-Cola globally and for achieving this objective the company has
earmarked US$ 5 billion for ensuring that the company is not letting go its focus on
developing the Indian market further successfully
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COCA-COLA’S CSR POLICIES POST-CONFLICTS
Two years before the water conflict in India in 2003, Coca-Cola adopted the GRI
Guidelines and started reporting on sustainability. By 2003, the company had already
experienced a few CSR-related conflicts in other parts of the world.[8] However, none
of them had the grave consequence of a loss of trust in the company and its products by
consumers and the public in general.
In 2008 the company published its first environmental performance report on
operations in India, which covered activities from 2004 to 2007[8] It also created the
Coca-Cola India Foundation, ‚ANANDANA‛, which works with local communities
and NGOs to address local water problems. [8] But perhaps the most outstanding
change of strategy by Coca-Cola consisted of launching various community water
projects in India. An example is the rainwater harvesting project, where Coca-Cola’s
operations partnered with the Central Ground Water Authority, the State Ground
Water Boards,NGOs and communities to address water scarcity and depleting
groundwater levels through rainwater harvesting techniques across 17 states in India.
These techniques consist mainly of collecting and storing rainwater while preventing its
evaporation and runoff for its efficient utilisation and conservation. The idea behind
this is to capture large quantities of good quality water that could otherwise go to
waste. By returning to the ecosystem the water used in its operations in India through
water harvesting, the company expected that this project could eventually turn the
company into a ‘net zero’ user of groundwater by 2009[8]
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CHAPTER – 7
COCA COLA CORPORATE SOCIAL RESPONSIBILITY
There is no clear definition of CSR. In Corporate Social Responsibility, Legal and semi-
legal frameworks supporting CSR Lambooy gives an overview of several definitions of
CSR.1 The European Commission defines CSR as ‘the responsibility of enterprises for
their impacts on society’.[9]
Corporate Social Responsibility is the continuing commitment by business to behave
ethically and contribute to economic development while improving the quality of life of
the workforce and their families as well as of the local community and society at large
• Corporate Conscience
• Corporate citizenship
• Social performance
• Sustainable responsible business
The Coca Cola Company used large amounts of water and energy in its beverage
production and tons of packaging material for its products, it had taken up several
initiatives to act as a responsible company and reduce its environmental impact. In
addition to water, energy, and sustainable packaging, Coca-Cola India also focused on
several community initiatives in India as part of its social responsibility initiatives.
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Their Sustainability Framework – which they call ‚Me, We, World‛– is their shared
vision for how they can work together to create social value and make a positive
difference for the consumers and communities they serve. [13]
Me
Enhancing personal well-being
Our longstanding commitment to consumers’ well-being begins with ensuring that
each and every beverage we deliver is safe, delicious and refreshing. Further, we
work to inspire consumers to pursue happier, healthier lives—and provide
opportunities to do so—through the wide variety of products we offer, our
transparent labeling practices, our responsible marketing practices and the many
physical activity programs we support around the world.
We
Building stronger communities
Community well-being for us means more than just giving back to the community -
we firmly believe that our businesses are only as strong as the communities which
we serve. Women play a crucial role in our value chain; we believe that unleashing
the entrepreneurial potential of women is one of the surest ways to make our
business sustainable and also create lasting impact on families and communities.
Through suitable training programs, we are assisting retailers keep pace with
changing customer preferences. We are also contributing to the development of
local communities, through need-based programs – such programs are focused on
education, enhancement of employability and well-being. Respecting human and
workplace rights is yet another key constituent of the ‘We’ pillar.
World
Protecting the environment
Water is a top sustainability and business priority for Coca-Cola. It is critical to the
communities we serve and the ecosystems on which we all depend, and hence, finds
a special place in our approach to sustainability. The Coca-Cola system in India has
been working with a variety of partners to reduce and recycle packaging material.
Project Unnati, a sustainable agriculture project, has been helping Mango farmers in
Andhra Pradesh adopt modern farming techniques like drip irrigation and Ultra-
High Density Plantation. The project substantially increases mango yield and
enhances farmer income. Our bottling locations are also focused on energy efficiency
and adoption of renewable energy, thereby reducing our carbon footprint.
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ANANDANA – Water Conservation
Anandana – Coca-Cola India Foundation, a Company registered under Section 25 of the
Companies’ Act, is a wholly owned not for profit charitable subsidiary of CCIPL.
Anandana provides monetary grants and other assistance to civil society organizations,
cooperatives, philanthropic organizations and such others who can be suitable partners
in implementing projects for social welfare.
Anandana focuses on supporting social projects in the domains of water sustainability
and the spread of new and renewable energy sources. Geographically, Anandana
focuses on some of the most backward regions of the country.
Anandana constantly aspires to ensure project execution, maintenance and
sustainability through active involvement and direct participation of the beneficiary
community at the grass-root level. Anandana is housed in the same premises as CCIPL
(at the Corporate Office in Gurgaon). Anandana’s website http://www.anandana.org
Conserve Water , watershed protection, rainwater harvesting projects. 110 recharge
shafts that collected rainwater. Reverse filter system. The company initiated drinking
water projects in Maharashtra and Gujarat to provide potable water to the local
communities.[13]
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5by20 Programs
WOMEN’S ECONOMIC EMPOWERMENT – ENERGY
1. eKOcool Solar Cooler program:
‘eKOcool’ is an innovative solar cooler that has been pioneered by us and provides
income generating opportunity for women retailers in electricity deficit areas of rural
India. The solar coolers also help reduce the cost of running retail business since no cost
is incurred on account of electricity or ice procurement, used to chill beverages. The
cooler has in-built charging ports for mobile phones and a solar lantern (which
facilitates the retailer to keep her store open even after the sunset). Over 1,000
eKOcool units have been installed across 5 states in India in women run outlets by the
end of 2013
‘eKOfreshment’ reduces energy consumption and emission of GHGs by refrigeration.
‘eKOfreshment’ is cooler that uses technologies devoid of hydro fluorocarbons. GHG
emission reduced by three-fourths increasing the energy efficiency of its equipment by
40 to 50%
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2. Parivartan:
This program is focused on building the retailing capabilities of women entrepreneurs
especially in the areas of cash and, stock management; shop management and customer
interactions. The program is conducted by the Coca-Cola University, in mobile buses
that have been converted into classrooms. The buses travel across remote parts of rural
India. In 2013, the program got a major impetus when we celebrated International
Women’s Day by organizing retail training programs for more than 1,400 women
retailers in a single day across India and Nepal. The program was scaled-up
substantially in 2013 and close to 10,000 women retailers were trained during the year.
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3. Pragati:
Pragati program is also focused on building the retailing capabilities of women
entrepreneurs by providing training, product knowledge and business start-up support
to women retailers. The program is conducted by HCCBPL, mostly in bottling plants in
remote parts of rural India. Over 13,000 women have been supported under this
program by the end of 2013.
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4. Unnati:
In addition to the retailer segment of the value chain, CCIPL is also supporting
producers through Project Unnati, a supply chain initiative that would enable 10,000
women mango farmers to adopt modern farming techniques and good agricultural
practices (please refer the section on Sustainable Sourcing for further details of the
program). Around 1,000 women have been covered under this initiative till end 2013
Since 5by20 began, we have enabled more than 26,000 women across our value chain
through business skill enhancement, access to assets and networking and mentoring.
The Program received the World CSR award and was featured as a best practice by the
Ministry of Corporate Affairs for empowering women retailers in the distribution value
chain in an environment friendly way.
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COMMUNITIES:
The Coca-Cola India is also undertaking some projects as a part of their social cause
and part of the corporate social responsibility. The support my school campaign along
with NDTV has Sachin Tendulkar as the brand ambassador.
• A commitment to the community was part of Coca-Cola India’s CSR
• In 2003,launched Jagriti Learning Centers to provide education to more than 1,800
children residing near its bottling facilities in Pune
• The initiative aimed to curb waterborne diseases
• It set up around 2,000 schools for children
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World Protecting the Environment
 Water Stewardship Working to protect watersheds, reduce risks to water
supplies and moving towards balancing our water use
 Sustainable Packaging Our efforts to reduce our materials use, source recycled
and renewable materials and build a restorative packaging system.
 The Coca-Cola System in India offers its beverages in Returnable Glass Bottles
(RGB’s), Aluminium cans, PET bottles and tetra packs. In excess of 50% of our
beverage sale takes place in RGB packaging, which is completely recovered
from the market (except for breakages).
 Climate Protection Working to reduce our impacts and partnering to take action
against climate change.
 Sustainable Agriculture Helping to ensure a sustainable supply of ingredients,
while supporting farmers and agricultural communities.
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HEALTH
• Provided health checkups, medicine, and education to rural communities on health-
related topics
• Company conducted blood donation camps and supported a 24-hour emergency
service for children
• In a few districts of Andhra Pradesh, conducted camps for Hepatitis B vaccinations,
eye checkups, and malaria eradication
COCA COLA CSR PARTNERSHIP
• Coca-Cola takes its corporate responsibilities seriously and works in partnership
with a number of organizations. These include:
• The Bharatiya Agro Industries Foundation. (B.A.I.F)
• The United Nations Human Settlements Programme (UNHABITAT)
• SOS Children's Village of India
• The Forum for Organized Resource Conservation & Enhancement (FORCE)
• WWF, WRAP, The Carbon Trust, Special Olympics, Thames21, Street Games,
Save the Children
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AWARDS AND ACCOLADES ON CORPORATE SOCIAL RESPONSIBILITY
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CHAPTER – 8
INTEGRATED MARKETING COMMUNICATION STRATEGY
Why Integration?
Organizations are looking for a ‚total solutions‛ communications approach to
solving business problems. There is a demand for comprehensive, seamless
campaigns
The Communication process Models
Macromodel
 Selective Attention
Selective attention is when audience only sees what they want to see out of the clutter
of the ads. Eg. A person who wants to buy Bike will not pay attention to any Laptop
ads.
 Selective Distortion
When the attention of the audience is deliberately captured because they are willing to
take a break from the actual presentation they see. Eg. While watching a movie if
someone calls then then picking the call is selective Distortion. Not to see what you
don’t want to recall.
 Selective Retention
Selective retention is recalling selected number of product or brand while coming
through a range of them. Eg. While recollecting medium makes it a reflexive action, we
can recall only selective brand and its slogan like ‚Thanda Matlab Coca Cola‛
Micromodel
Learn-feel-do –
High involvement with the product category - purchasing a house or an automobile
Do-feel-learn –
Audience has high involvement but perceives little or no differentiation within the
product category – purchasing an airline ticket or a computer.
Learn-do-feel –
Low involvement and perceives little difference within the product category –
purchasing salt or batteries
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Steps in Marketing Communications Development
1. IDENTIFY THE TARGET AUDIENCE - It includes assessing the audience’s
perceptions of the company/product image and competitor’s company/product
image
2. DETERMINE OBJECTIVES OF COMMUNICATION
 Category needs (I-pod, Laptop)
 Brand Awareness (Coke)
 Brand Attitude (Rolex, Mountain Dew)
 Brand Purchase Intention (Dettol, Dispirin)
Coca Cola Company focuses on the ‚Brand Awareness‛ factor more while doing any
promotional activity.
3. DESIGNING THE MESSAGE
 Message Strategy (Appeal, Theme, Idea) – Youth, Happiness / Joy, Share Coke
 Content – A Message which would make people persuade to buy Coke
 Structure - Based on the kind of mass medium used
a) Format
Message format decisions vary with the type of media, but may include:
Graphics, visuals, Headline, copy or script, Sound effects, voice qualities, Shape, scent,
texture of package
b) Source
Message source characteristics can influence attention and recall
 Principle of Congruity – Thanda Matlab… Coca Cola, Life ho to Aisi
 Factors underlying perceptions of source credibility: Mass Mediums
c) Creative Strategy
 Informational Appeals – Direct Appeal – Sprite Clear he, Bujhae only Pyaas
 Transformational Appeals – Indirect Appeal – Coke has this approach
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4. SELECT COMMUNICATION CHANNELS
a) Personal Communication Channels
Effectiveness derives from personalization and feedback like Mouth publicity. Several
methods of stimulating personal communication channels exist such as business
partnership. Coca Cola has partnership with large variety of food chains which caters
to Coca Cola Products. Eg Mc. Donald’s, Dominos, Real Paprika.
b) Non personal Communication Channels
Influence derives from two-step flow-of-communication process Opinion leader or
celebrity who has an influence on the common public Eg. Aamir Khan, Sachin
Tendulkar, Virendra Sehwang, Farhan Akhtar, Smriti Irani
5. ESTABLISH THE BUDGET
Communications Budget Types
a) Affordability method – Setting the promotion budget at the level management
thinks the company can afford
b) Percentage-of-sales method – Setting the promotion budget at a certain
percentage of current or forecasted sales or as a percentage of the unit sales price
c) Competitive-parity method – Setting the promotion budget to match
competitor’s outlays.
d) Objective-and-task method –
Defining specific promotion objectives – Sales, Branding, Awareness
Determining the tasks need to achieve these objectives – Promotional Activity
Estimating the costs of performing these tasks – Budgeting, Planning, Research
Coca Cola Company has not considered any brand as its competitor including Pepsi, It
only considers WATER as its biggest competition. If you can drink water you can drink
Coca Cola is their dream target. So it uses a combination of Percentage of Sales method
and Objective & Task method for its promotional Budgeting.
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6. SELECT THE MARKETING COMMUNICATIONS MIX
a) Communications Mix Selection
Types of promotional tools i.e. Integrated Marketing Tools
 Advertising
 Sales promotion
 Public relations and publicity
 Direct marketing
 Personal selling
 E-marketing
b) Selection factors - Consumer vs. business market
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c) Stage of buyer readiness / Decision
i) Pre-purchase Stage - Advertising is most valuable
It informs potential customers about the existence of the product and the seller.
ii) Purchase Stage - Importance of personal selling is highest
Sales promotion can encourage demand for the newly introduced product
iii) Post-purchase Stage - Personal contact after the sale leads to buyer satisfaction.
Advertising and personal selling help reduce post purchase anxiety.
iv) Stage of product life cycle –
7. MEASURE RESULTS
Measure Results - Recognition, recall, attitudes, behavioral responses
8. MANAGE THE IMC PROCESS
 Manage the Integrated Marketing Communications Process
 Provides stronger message consistency and greater sales impact
 Improves firms’ ability to reach right customers at right time with right message
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INTEGRATED MARKETING COMMUNICATION PROCESS
Competition
Coca Cola as stated doesn’t consider any other cola company as it competitor except
WATER. Though considering marketing strategies following forms are to be considered
for competition.
Brand
A company views its competitors as other companies offering similar products and
services to the same customers at similar prices Eg. Pepsi
Industry
A company views its competitors as all companies making the same products or class
of products Eg. Fruity, Rasna, Soda Shops, Local Brands etc.
Form
A company views its competitors as all companies manufacturing products that supply
the same service. Eg. Anything providing refreshments like Sugarcane Juice, Fruit Juice,
Lassi, Milk, Ice Cream, Milk Shakes, Amul Cool, Lime Juice etc.
Generic
A company views its competitors as all companies that compete for the same consumer
rupee & Rate. Eg. Any spending done with 10 to 50 rupees on Burger, Drink or
Chocolate
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INTEGRATEDPROMOTIONALSTRATEGYOFCOCA-COLA
‘Promotion & Branding’ have played a big role in Coca-Cola’s success. Its advertising has been
rather pervasive, as one of Woodruff’s stated goals was to ensure that everyone on Earth drank
Coca-Cola as their preferred beverage. The most popular words in the world in 20th contrary
are: God, she and Coca-Cola. After the highest popularization of word – ‚OK‛, the second one
is ‚Coca-Cola‛. 98% of the people know ‚Coca-Cola‛. That’s the result of Coca-Cola spending
6 hundred million dollar on promotions.
There are five main ways of promoting the brand – Coca-Cola.
 The first one is traditional advertising, like showing advertisements on TV or posters.
 The second one is the sponsoring of sport events.
 The third one is online promotion.
 The fourth one is selling Coca-Cola’s collections.
 The fifth one is local promotion held by bottlers or retailers.
Although the main promotion in every country still follow this strategy, especially using the
local stars to attract young customers, Coca-Cola begun to use computer technology to make
cartoon images which matches local culture or just funny.
TOOLS OF IMC – PROMOTIONAL MIX
Marketing Communications is a management concept that is designed to make all
aspects of marketing communication such as advertising, sales promotion, public
relations, personal selling and direct marketing work together as a unified force, rather
than permitting each to work in isolation. It’s also known as promotional mix as it uses
360 degree form of mass communication and public appeal in order to promote, brand
and sell any product or services. Promotion mix is a part of IMC its tools are
 Advertising
 Public Relations
 Direct Selling
 Sales Promotion
 Personal Selling
 Internet Marketing
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ADVERTISING
Advertising is any paid form of non-personal presentation and promotion of ideas,
goods, or services by an identified sponsor; and it is disseminated through mass
channels of communication.
Continuity, Flighting and Pulsing
• Continuity ( some time call straight-through advertising)
• This pattern is continuous, would be to run one ad everyday for 365 days or 52
weeks
• Continuity is needed when an advertisers has a message that it does not want
consumer to forget.
• Continuous advertising works as a reminder keeping the message always. Other
reason for using continuous is make it possible to take advantage of larger media
discounts granted when so much advertising is purchased
Flighting ( sometime called bursting)
Flighting is an intermittent pattern with gaps of time when no advertising is done
Year time period
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PULSING
 Pulsing is a form of flighting and continuity combined . An advertiser buys
continuous advertising throughout the year and heavies up at various propitious
time.
 Pulsing represent the best of both technique.
• It is a mixture of continuity and flighting
• Fit to categories which there are sold all year round.
DIFFERENT MEDIA OF ADVERTISING
Print Electronic Digital/ New Media
Newspaper Televison Internet websites
Handbill Radio CD/ DVDs of films and music
Poster Cable Network Cell Phones
Banner (paper, cloth) Cinema
Pamphlet
Brochure
Leaflet
Books
Magazines
Print Ads – Coca Colas Print ads are theme based and display mostly family find and
happiness. It’s tag line is ‚Spreading Happiness‛ – ‚Baato Khushiya‛. Print ads in
News Paper, Magazine have always been a source of recollection to its consumers.
Display of Celebrity like Movie stars and Cricketers adds to its appeals
IMC OF COCA COLA
Page | 107
IMC OF COCA COLA
Page | 108
IMC OF COCA COLA
Page | 109
COCA COLA IN MOVIES – COVERT ADVERTISING - PRODUCT PLACEMENT
Product placement, which has become an established marketing tactic due to its clear
effectiveness in building brand recall and recognition, is not just for Hollywood.
Hollywood‟s ‚big players‛ of product placement also play in Bollywood. Coca Cola in
India, for instance, has benefited from placement in movies along with a celebrity
endorsement with Bollywood movie star Amir Khan and won Pepsi for its market
share
Coca-Cola was ahead of the game even in Bollywood movies. In a scene from the film
Shree 420 (1955) when Raj Kapoor, the protagonist, enters Mumbai for the first time, a
large Coca-Cola banner was visible right above his head. In the movie, An Evening in
Paris (1967), Coca-Cola was featured more than once. Product placement, as the
numbers suggests is bringing revolutionary change in entertainment economics.
However, it was Taal(1999) by Subhash Ghai, which played the same role in Bollywood
.It was after Coca-Cola‟s placement in Taal that people started becoming aware of the
practice of product placement..
The most successful movie branding for Coca-Cola in India was probably that of Rang
De Basanti.
IMC OF COCA COLA
Page | 110
Bollywood Movies:
• Shree 420,
• Kaho Naa Pyar Hai,
• Rang De Basanti,
• Taal,
• Yadeein
• Kuch Naa Kaho,
• Bobby.
• Shuddh Desi Romance
• Dhoom 2 – 3
• Aashique 2
Hollywood Movies :
• Borat, Click,
• Failure to Launch,
• Glory Road,
• Gridiron Gang,
• Hostel,
• Mission: Impossible III,
• Silent Hill, The Covenant,
• The Departed
• Letter to Juliet
• Ted
IMC OF COCA COLA
Page | 111
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Coca cola imc - dissertation

  • 1. DISSERTATION IMC- ANALYSIS OF COCA COLA COMPANY Page | 1 INTEGRATED MARKETING COMMUNICATION (IMC) ANALYSIS OF “COCA COLA COMPANY” (Study of Promotional Activity by the Company) Research Conducted By Deepen Upadhyaya Batch – 6, Roll no – 15 Specialization – Advertising, Public Relations & Corporate Communication National Institute of Mass Communication & Journalism Researcher’s Note:- This Paper was prepared under the project of Integrated Marketing communication research for National Institute of Mass Communication as final year academic project. The research was analytical and based on investigating Primary & Secondary data of Coca Cola Company.
  • 2. IMC OF COCA COLA Page | 2 CERTIFICATE This is to certify that Mr. Deepen P. Upadhyaya has successfully completed the project work titled ‘Integrated Marketing Communication (IMC) Analysis Of “Coca Cola Company”’ in partial fulfillment of requirement for the award of ‘Post Graduation Diploma in Mass Communication and Journalism’ as prescribed by the ‘National Institute of Mass Communication and Journalism, Ahmedabad’. This project is the record of authentic work carried out by above students as part of college curriculum of Semester –IV; Group – C – Advertising, Public Relations and Corporate Communication as Specialization; during the academic year (2014 – 2015). Signature of Research Guide Mr. Venketesh Iyar (Indian Express - Ahmedabad)
  • 3. IMC OF COCA COLA Page | 3 DECLARATION I the undersigned hereby, declare that the project work titled ‘Integrated Marketing Communication (IMC) analysis of ‚Coca Cola Company’ is a result of my research work. Keeping in mind the commonality of the subject where there already are similar project and research papers. I have tried my best to include information, stats, data, photographs which are scouted by me and latest. Thus except few common point which are unavoidable I have given best justice to make this project original work and thus this work has not been previously submitted to any other University or Institute. I hereby, further declare that all information of this document has been obtained and presented in accordance with academic rules and ethical conduct. Deepen P. Upadhyaya Roll No 15, Section – B, Sem – IV, Batch -6, Group C – AD, PR and Corporate Communication National Institute of Mass Communication and Journalism Ahmedabad
  • 4. IMC OF COCA COLA Page | 4
  • 5. IMC OF COCA COLA Page | 5 ABSTRACT This paper explores the concept of integrating Marketing Communications tools by Coca Cola Company as a customer focused means of promoting & branding its businesses. The Marketing communication tools considered includes advertising, sales promotion, public relations, direct marketing and internet/interactive communications. Earlier, most companies concentrated generally on advertising to communicate to their target customers and seldom used the other communication tools. Some companies used other communication tools but on separate basis which is in contrast to the concept of Integrated Marketing Communication (IMC). This is the hypothesis on which this paper studies how modern firm like Coca Cola use comprehensive integration of marketing communications tools which enhances success through synergistic execution of their marketing communication programs. Available literature indicates that an effective IMC program ensures a successful marketing of a company’s product/service and improves on their brand image as well as corporate image. This again focuses on finding out whether this could be proven practically While numerous studies have been conducted to measure the effectiveness of individual IMC elements, far less attention has been given to examining the boosting effects of multiple marketing communication tools working together, despite the fact that consumers are likely to receive information from a variety of sources. Indeed, one of the fundamental ideas behind IMC is that all of a company’s marketing and promotional activities should project a consistent and unified message and image to the consumer.
  • 6. IMC OF COCA COLA Page | 6 PREFACE The project is a part of training in the 4rd semester as a part of Final Project Submission for Group – C ‚Advertising, Public Relations & Corporate Communication‛. I as a student of this group am presenting my research paper which I have researched, prepared during my academics sessions in 4th Semester of Mass Communication and Journalism. It was a learning experience and I am happy to share my findings and conclusion to the institute. The primary aim of this project is to explore the use of marketing communication to build and sustain brands, based on knowledge of how communication works, the institutions which participate in the process, and the practical business processes necessary to achieve and measure defined communication goals. In particular, I will be able to understand the integrated nature of communication and develop a full appreciation of advertising, sales promotion, public relations, publicity and direct marketing in a digital and contemporary environment. Best efforts in preparing this project as finest as possible within a time limit. Greatest efforts are put to understand the needs and problems of the subject of my research. I hope that the concerned authority will kindly accept this project.
  • 7. IMC OF COCA COLA Page | 7 ACKNOWLEDGEMENT I wish to take this opportunity to express my sincere gratitude towards all who has helped us profoundly throughout the project work… I want to say special thanks to Prof. Shashikant Bhagat (Group ‚C‛ Head) Mr. Vanketesh Iyar (Project - Mentor) from Indian Express Dr. Shrish Kashikar, (Director NIMCJ) I am thankful to Ms. Sigma Soni for her constant support in my academic work and all other faculty members for their very useful guidance. I am very grateful to … Mr. Urvish Kanthariya – Gujarat Chamber of Commerce & Global Indian Business Council Services LLP Mr. Kedar Vashi – Associate Vice President & Head (Learning & Development) – Hindustan Coca Cola Beverages Pvt. Ltd - Gurgaon For supporting me in my project research and giving his valuable contribution in making this project the best possible. I convey our thanks to National Institute of Mass Communication & Journalism, Ahmedabad for providing the required training and guidance to accomplish the desired output and learn from the experience of this research paper. Thank you… Yours Faithfully, Deepen Upadhyay
  • 8. IMC OF COCA COLA Page | 8 Sr. No Index of the Content Page Number 1 Title page 1 2 Certificate 2 3 Declaration 3 4 Certificate from Hindustan Coca Cola Beverages 4 5 Abstract 5 6 Preface 6 7 Acknowledgement 7 8 Index 8 9 Data Flow 9 10 Executive Summary 11 11 Introduction 12 12 Literature Review 14 13 Chapter -1-IMC 20 14 Chapter -2-History 25 15 Chapter -3-Corporate Communication 29 16 Chapter -4-India 37 17 Chapter -5-Strategic Communication 53 18 Chapter -6-Crisis Communication 71 19 Chapter -7- Corp. Soc. Responsibility 80 20 Chapter -8-IMC Strategy 94 21 Advertising 104 22 Public Relations 117 23 Direct Selling 130 24 Sales Promotion 136 25 Internet Marketing 141 26 Personal Selling 150 27 Conclusion 151 28 Recommendation 152 29 Coca Cola at a Glance 153 30 Bibliography 154
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  • 11. IMC OF COCA COLA Page | 11 EXECUTIVE SUMMARY I as a student of ‚Mass Communication‛ have tried to understand the Integrated Marketing Communication and Cross Cultural Communication by Coca Cola Company in order to establish itself as an integral brand recognized in Indian market. Any Organization true to its brand image carries a set of mission, vision and values to set in minds of people. Integrated Marketing Communication is not just related to external publics but also to internal publics related to the corporation. Integration itself means not just passing on message as communication, rather using all mass medium speaking the same ideology, message and image through various media forms. This research paper consist of understand various aspects of IMC process by Coca Cola Company such as Advertising, Sales Promotion, Direct Selling, Online presence etc. The type of media mix it used and what type of positioning it made for its brand, along with the change in the market. There are graphical as well theoretical examples to add to the validity of this research along with help from experts, representatives of IMC or Coca Cola Company in order to makes the research work more authentic by me.
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  • 13. IMC OF COCA COLA Page | 13 INTRODUCTION The creation of an Integrated Marketing Communications (IMC) program helps companies to create single, consistent and unified customer focused messages using electronic, print and outdoor media. An effective and efficient execution of an IMC program ensures that the needed awareness of company’s offerings is created. It has been argued that IMC is the foundation of new customer-focused marketing efforts for acquiring, retaining, and growing relationships with customers and other stakeholders (Duncan and Moriarty, 1998). (Moriarty et al, 1994) indicate that the shift toward the IMC perspective has been hailed as one of the most significant changes in the history of advertising and promotion. (Kitchen et al, 2004) also add that it is the major communications development of the last decade of the 20th century. This research tries to discover the approach of Coca Cola Company using Media Mix for its communication to Indian audience. This is done through an analysis of various market studies work by Kotler, Keller and Wind. Further, it is necessary to integrate and target marketing communication even more than the holistic pattern requires and integrate the need to create relationships in the process in which media channels are selected. This is done by integrating branding theory and brand value as the core of any campaign. To test the validity of the above ideas, a case study of one of the market leaders of relations and emotional marketing ‚Coca-Cola‛ is carried out. Coca-Cola's history and marketing techniques examined, and it made framework is tested by being used as the main analytical tool in the analysis of one of Coca-Cola's latest global campaigns.
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  • 15. IMC OF COCA COLA Page | 15 REVIEW OF LITERATURE A Research review is a part of a research project. It usually opens the research report, but its function is beyond just summarizing and analyzing he literature; it is meant to indicate that there exists a research gap which needs to be filled. This is necessary to show that our research is looking at a problem that is either new or existing without being noticed. Selecting appropriate method is also very important in order to conduct and write a research On Coca Cola ‘If Coca-Cola were to lose all of its production-related assets in a disaster, the company would survive. By contrast, if all consumers were to have a sudden lapse of memory and forget everything related to Coca-Cola, the company would go out of business.’ (Power of Branding, Keller, Page 38, 2002) Each promotional tool has its own characteristics. Marketers must understand these characteristics in selecting their tools. Using Coca-Cola as an example, demonstrate how each of the promotional tools might be used to create an integrated marketing communications approach for the upcoming year. (Philips Kotler - Integrated Marketing Strategies, 2002 edition) Notable Quotes on IMC ‚Once upon a time, when a manufacturer had a dollar for marketing, it was spent on advertising. Today, there are a lot of interesting things that can be done with a marketing dollar. All of these things add up to one big thing called ‘Integrated marketing communications’ – ‘MarCom’ for short. ‚Five forms of marketing communications *are+: Advertising, Public Relations, Direct Response, Sales Promotion, Personal Selling.‛(Bruce Bendinger, The Copy Workshop Workbook, kindle version 2005 edition)
  • 16. IMC OF COCA COLA Page | 16 ‚Understanding how to tie the business of advertising to the creative of advertising is one of the basic foundations behind integrated marketing communication (IMC). Creative represents the voice of business and can ultimately determine the success or failure of a product or service in the marketplace.‛ (Robyn Blakeman, Integrated Marketing Communication: Creative Strategy from Idea to Implementation) ‚Advertising is no longer the only thing.‛ ‚Creative represents the voice of business and can ultimately determine the success or failure of a product or service in the marketplace.‛ (Robyn Blakeman, Integrated Marketing Communication: Creative Strategy from Idea to Implementation) ‚One of the major reasons for the growing importance of integrated marketing communications over the past decade is that it plays a major role in the process of developing and sustaining brand identity and equity…. With more and more products and services competing for consideration by customers who have less and less time to make choices, well-known brands have a major competitive advantage in today’s marketplace. Building and maintaining brand identity and equity require the creation of well-known brands that have favorable, strong and unique association in the mind of the consumer. Companies recognize that brand equity is an important an asset as factories, patents and cash because strong brands have the power to command a premium price from consumers as well as investors.‛ (George and Michael Belch, Advertising and Promotion: An Integrated Marketing Communications Perspective) ‚1. IMC is everywhere, whether we like it or not. ‚2. You can never know enough about your customer. ‚3. You can never know too much about your customer. ‚4. Everything is relevant.
  • 17. IMC OF COCA COLA Page | 17 METHODS In this section we will understand the method of data generation and collection. The method used in this project is investigation of various Primary Data from Coca Cola Company through their website, video sharing website like YouTube, Metcalfe which are mentioned in the bibliography. Apart from the primary data secondary data is collected through sampling of various research papers, marketing-promotional concept books by well known authors, online web sources like PDF files, presentations etc. is done to understand the concept of IMC and its applications in Coca Cola’s Branding cum promotion. Following methods are useful in getting important information as resource.  Reading Literature of other writers or research papers.  Referring statics of the past few years  Google searching information  Communicating to relevant people in the research areas. I have implied the above means to get towards a conclusion of my research. There have been many debate and discussion over the topic of medium of instruction. Data Collection For the Research purpose I had collected secondary data from online and offline resources which are mentioned in the Bibliography. Among the secondary data the following were the reference material.  Books from well known author from Institute’s Library  Research Paper on Marketing of Cola Brands as well as generic papers  Official websites of the Coca Cola India and Hindustand Coca Cola Beverages  Blogs, Unofficial websites, News Websites etc.
  • 18. IMC OF COCA COLA Page | 18 Sampling Method The Data sampling method used here more like Snow Ball sampling as one link and source in online, offline and personal medium lead to further detailing of the required information to complete this project successfully. People related to Coca Cola directly or indirectly were approached for getting their precious feedback and updating of the research paper. Following people were contacted while doing the research study 1) Mr. Kedar Vashi – Associate Vice President & Head (Learning & Development) – Hindustan Coca Cola Beverages Pvt. Ltd – Gurgaon 2) Mr. Smit Dave – Human Resource Manager – Ahmedabad 3) Mr. Tushar Sharma – Former Channel Marketing Team Head - Ahmedabad 4) Dev Parmar – Coca Cola Rural Distributor – Rajkot District Methodology The Procedure of data collection was interacting personally and telephonically the above people and presenting my findings with them for their feedback and correction in case of any modifications required. Apart from this I have personally scouted Locations which displayed the various images of Coca Cola in Wall paintings, Cooler Machine, Vending Machine, Poster and Ice Box for my Case study purpose.
  • 19. IMC OF COCA COLA Page | 19 SUBJECT As mentioned the Subject of this research was Coca Cola as a Brand, Company with wide range of products in the Indian market along with a comparative studies of its promotional activities undertaken in various mass media tools such as Advertising, Public Relations, Sales Promotion, and Corporate Communication in order to use a holistic approach for its IMC. Coca-Cola is the most recognized brand name in the world with 94% recognition. This profile has spread with increasing rapidity in recent years as evidenced for example in China, where Coca-Cola became the most recognized trademark in the late 1990s. Today you can buy a Coke almost anywhere from Beijing to Buenos Aires, from Moscow to Mexico City. The Coca-Cola Company sells half of all soft drinks consumed throughout the world. The Coca-Cola Company has, on occasion, introduced other cola drinks under the Coke brand name. The most common of these is Diet Coke, Free, Coca-Cola Cherry, Coca- Cola Zero, Coca-Cola Vanilla, and special versions with lemon, lime or coffee. In 2013, Coke products could be found in over 200 countries worldwide, with consumers downing more than 1.8 billion company beverage servings each day. Based on its reach around the world it has been into Cross Cultural Communication as per the geographical location of the market it is specifically targeting. The main Subject of this research is to know Integrated Marketing Methods with blends of Cross cultural communication done by Coca Cola in a completely diversified country of India. Which would include its journey from the beginning till the present condition along with keeping in mind its product life cycle (PLC). What all strategies were implemented and what kind of innovative measures were developed by Coca Cola.
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  • 21. IMC OF COCA COLA Page | 21 CHAPTER – 1 What is Integrated Marketing Communications? The American Marketing Association defines Integrated Marketing Communications (IMC) as ‚a planning process designed to assure that all brand contacts received by a customer or prospect for a product, service, or organization are relevant to that person and consistent over time.‛ ‚An approach to achieving the objectives of a marketing campaign, through a well coordinated use of different promotional methods that are intended to reinforce each other‛ IMC in Marketing IMC is a strategic marketing process specifically designed to ensure that all messaging and communications strategies are unified across all channels and are centred around the customer. The IMC process emphasizes identifying and assessing customer prospects, tailoring messaging to customers and prospects that are both serviceable and profitable, and evaluating the success of these efforts to minimize waste and transform marketing from an expense into a profit-centre. A more contemporary definition states, "True IMC is the development of marketing strategies and creative campaigns that weave together multiple marketing disciplines (paid advertising, public relations, promotion, owned assets, and social media) that are selected and then executed to suit the particular goals of the brand. Instead of simply using various media to help tell a brand's overall story, with IMC the marketing leverages each communication channel's essential strengths to achieve a greater impact together than each channel could achieve individually. It requires the marketer to understand each medium's limitation, including the audience's ability/willingness to absorb messaging from that medium. This understanding is integrated into a campaign's strategic plan from the very beginning of planning - so
  • 22. IMC OF COCA COLA Page | 22 that the brand no longer simply speaks with consistency, but speaks with planned efficacy. This concept inherently provides added benefits that include: a singular/synchronized brand voice and experience, cost efficiencies generated through creativity and production, and opportunities for added value and bonus. Why Integrated Marketing Communications? Five major shifts in the worlds of advertising, marketing and media have caused an increased interest in (and need for) IMC. These include: A shift From… To… Traditional Advertising Digital/Interactive Media Mass Media Specialized Media Low Agency Accountability High Agency Accountability Traditional Compensation Performance-Based Compensation Limited Connectivity Pervasive Connectedness These shifts are forcing organizations to look at the whole marketing picture, re- aligning their communications and seeing things the way the consumer sees them – as a constant flow of information from indistinguishable sources. Those who practice IMC are avoiding duplicate messages, capitalizing on the synergy among promotional tools, creating more effective marketing programs and maximizing ROI. IMC weaves diverse aspects of business and marketing together. These include:  Organizational culture 1) The organization's vision and mission 2) Attitudes and behaviors of employees & partners 3) Communication within the company
  • 23. IMC OF COCA COLA Page | 23  Four P’s & C's of Marketing mix Four P’s Four C’s Product Consumer Price Cost Place Convenience Promotion Communication  Advertising Broadcasting/mass advertising: broadcasts, print, internet advertising, radio, Television commercials Outdoor advertising: billboards, street furniture, stadiums, rest areas, subway Advertising, taxis, transit Online advertising:- mobile advertising, email ads, banner ads, search engine result Pages, blogs, newsletters, online classified ads, media ads
  • 24. IMC OF COCA COLA Page | 24  Direct marketing: direct mail, telemarketing, catalogs, shopping channels, internet sales, emails, text messaging, websites, online display ads, fliers, catalog distribution, promotional letters, outdoor advertising, telemarketing, coupons, direct mail, direct selling, grassroots/community marketing, mobile  Online/internet marketing  E-commerce  Search engine optimization (SEO)  Search engine marketing (SEM)  Mobile Marketing  Email marketing  Content marketing Social Media (Facebook, Twitter, LinkedIn, Google +, Foursquare, Pinterest, YouTube, Wikipedia, Instagram)  Public Relations :- Special events, interviews, conference speeches, industry awards, press conferences, testimonials, news releases, publicity stunts, community involvement, charity involvement & events  Sales Promotions:- Contests, coupons, product samples (freebies), premiums, prizes, rebates, special events  Trade shows:- Booths, product demonstrations  Corporate Social Responsibility :- Donations, volunteering, charitable actions When these diverse aspects of business and marketing are weaved together properly an effective campaign can be achieved. Effective campaigns are demonstrated on the Integrated Brands showcase which recognizes brands that are innovative, strategic and successfully growing their sales.[3]
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  • 26. IMC OF COCA COLA Page | 26 CHAPTER -2 COMPANY’S HISTORY The Coca-Cola Company traces it’s beginning to 1886, when an Atlanta pharmacist, Dr. John Pemberton, [to the right] began to produce Coca-Cola syrup for sale in fountain drinks. However the bottling business began in 1899 when two Chattanooga businessmen, Benjamin F. Thomas and Joseph B. Whitehead, secured the exclusive rights to bottle and sell Coca-Cola for most of the United States from The Coca-Cola Company. The Coca-Cola formula and brand was bought in 1889 by Asa Griggs Candler [to the left] (December 30, 1851 - March 12, 1929), who incorporated The Coca-Cola Company in 1892. Besides its namesake Coca-Cola beverage, Coca- Cola currently offers more than 500 brands in over 200 countries or territories and serves over 1.7 billion servings each day. 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
  • 27. IMC OF COCA COLA Page | 27 COCA COLA AROUND THE WORLD AND INDIA The Coca-Cola Company is the world's largest beverage company. Along with Coca- Cola, recognized as the world's most-valuable brand, the Company markets four of the world's top five soft drink brands, including Coke, Fanta, Sprite plus a wide range of other beverages, including diet, light soft drinks, water, juices, juice drinks, tea, coffee and sports drinks. Through one of the world's largest beverage distribution system, consumers in more than 200 countries enjoy the Company's beverages at a rate exceeding 1.8 billion servings each day. Coca-Cola in India is the country's leading beverage Company with an unmatched portfolio of beverages. The Company manufactures and markets leading beverage brands like Coca-Cola, Diet Coke, Thums Up, Fanta, Limca, Sprite, Maaza, Minute Maid Pulpy Orange, Minute Maid Nimbu Fresh, Minute Maid 100%, Burn, Kinley and Georgia range of tea and coffee. One of the early investors in India, the Coca-Cola system provides direct and indirect employment to more than 1, 50,000 people. The Company has more than 2.2 million retailers and our business has a multiplier effect on employment and earning opportunities. The Company's business also positively impacts industries like glass, plastics, resin manufacturers, sugar, automobiles, white goods manufacturers, banking etc. At the heart of business is a mission statement called the Coca-Cola Promise - "The Coca-Cola Company exists to benefit and refresh everyone that it touches". This basic proposition entails that the Company's business should refresh the markets, protect, preserve and enhance the environment and strengthen the community. Coca-Cola in India provides extensive support for community programs across the country, with a focus on education, health and water conservation. The system has installed more than 500 rain water harvesting structures in the country. The system has also undertaken the rejuvenation and reconstruction of several traditional water bodies including check dams. The Coca-Cola system is committed to work with communities across India in its effort to contribute to mutual growth and development.
  • 28. IMC OF COCA COLA Page | 28 COCA COLA INDIA ORGANIZATION STRUCTURE
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  • 30. IMC OF COCA COLA Page | 30 CHAPTER - 3 COCA COLA CORPORATE COMMUNICATION CORPORATE IMAGE Corporate image is the perceived sum of the entire organization - its objectives and plans. It encompasses products, services, management style, communications activities and actions around the world. G.a. marken An image is the set of meanings by which an object is known and through which people describe, remember and relate to it. That is the result of the interaction of a person’s beliefs, ideas, feelings and impressions about an object. (Dowling, 1986) CORPORATE IDENTITY • The way in which an organization presents itself  Symbols  Communication  Behavior • Referred to as Corporate Identity (CI) Mix • Personality manifested through this mix
  • 31. IMC OF COCA COLA Page | 31 CORPORATE IDENTITY MEDIA • Product • Price • Logos • Name • Stationery • Brochures • Signs IMPORTANCE OF IDENTITY • Raises motivation among employees • Inspires confidence in stakeholder groups • Acknowledges important role of customers • Acknowledges vital role of financial groups THE THREE I’S - MISSION ORIENTED • Identity: Who we are • Image: What we are • Ideas: What we stand for and believe In the year 1886, May 8th, Coca‑Cola was created by John S. Pemberton and served at Jacobs’ Pharmacy. Company accountant, Frank Robinson, names the drink ‚Coca‑Cola,‛ and thinking the two Cs would look well in advertising, pens the famous Spencerian script logo. From then on the Company’s Logo also evolved according to the change of time. Following are the logos year wise Coca Cola Logo • Visit cards • Buildings • Uniforms • Sponsorship • Packaging • Work environment • Figure or
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  • 33. IMC OF COCA COLA Page | 33 Brand Identity The first step in understanding Image Advertising is to understand the image being created, i.e. Brand Image. Brand Image is consumers’ perception of the brand in question. There are a number of tools available to explore the identity of a brand. One such tool is Kapferer’s Prism. As shown in the exhibit above, there are many facets to a brand. Kapferer identifies six key characteristics that together define the brand: Physique – the physical attributes of the brand – Shape, Logo, Colour Personality – the personification of the brand – Refreshing Happy Relationship – the relationship between the consumer and the brand Culture – the core values of the brand – Social, Sharing, Family Value Reflection – the way consumers want to be perceived when using the brand Self-Image – the image that consumers have of themselves when associated with the brand A combination of these characteristics can be used to identify what the brand ultimately stands for.
  • 34. IMC OF COCA COLA Page | 34 The Contour Bottle The tremendous success and growth of Coca‑Cola encouraged other competitors to try to imitate Coke by offering bottles with slight variations on the trademarked name and distinctive script logo. Koka-Kola, Koca-Nola, Celery-Cola and Koke were just a few of the products thattried to capitalize on our success. Working with our bottlers, The Coca‑Cola Company asked bottle manufacturers to submit designs for a bottle for Coca‑Cola that was so distinctive that it could be recognized by feel in the dark or identified lying broken on the ground. Alexander Samuelson of the Root Glass Company in Terre Haute, Indiana, designed the distinctive shape, and it was patented on November 16, 1915. The bottle was modified and slimmed down to work with the current bottling equipment and went into broader production in 1916. This contour bottle was the only packaging used by The Coca‑Cola Co for 40 years until the king-size package was introduced in 1955.
  • 35. IMC OF COCA COLA Page | 35 In 1960, the contour bottle was granted registration as a trademark by the U.S. Patent Office. Today, it is still the most recognized bottle in the world, and the shape is used for packaging from the new aluminum can to the 2-liter family size.
  • 36. IMC OF COCA COLA Page | 36 COCA COLA INDIA - PRODUCT RANGE Coca has been catering to variety of audience. When it arrived in India its first act was to get maximum share of Parle Company and its 60 bottling plants along with India’s top ranking soft drinks of that time i.e. Thums Up, Maaza, Limca etc. Coca Cola Company currently caters to following list of product in India
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  • 38. IMC OF COCA COLA Page | 38 CHAPTER - 4 India and Cross Cultural Communication ‚The integrated sum total of learned behavioral traits those are manifest & shared by members of society‛ OR ‚The way in which people in a society collectively attach meanings to concepts & contexts around them & respond on the basis of those meanings‛ • India is a confluence of cultures. There are 29 states and 7 Union Territories, each as different as another country • The home of one of the world's oldest living civilizations, and several of the world's great religions. Vast diversity in art, architecture, music & dance, customs, food and clothing • Hindi is the official language, Spoken in most of the urban cities of India and by 45% Population • The Constitution of India has recognized 22 different languages that are prevalent in the country. There are 844 dialects that add to the multilingual nature of the country • English enjoys associate status but is the most important language for national, political and commercial communication. Most of the educated Indians speak English, with varying fluency, along with one local language • India has been changing, re-shaping and re-inventing itself for as long as anywhere on earth, forever producing new forms of culture and absorbing new influences from all directions Components of culture Social Interaction Language Aesthetics ReligionEducation Value System Material Life
  • 39. IMC OF COCA COLA Page | 39 COKE IN INDIA Coca-Cola was the leading soft drink brand in India until 1977 when it left rather than reveals its formula to the government and reduces its equity stake as required under the Foreign 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 Thumbs Up (the most trusted brand in India), 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, Maaza, Limca, Sprite and Fanta. In 2000, the company launched the Kinley water brand and in 2001, Shock energy drink and the powdered concentrate Sunfill hit the market.
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  • 41. IMC OF COCA COLA Page | 41 Company Overview Type Soft Drink (Cola) Manufacturer The Coca- Cola Company Founder (s) John S. Pemberton Country of Origin United States, Atlanta Georgia Introduced 1886 Area Served Over 200 countries Color Caramel E-150d Flavors Cola, Cola Green Tea, Cola Lemon, Cola Lemon Lime, Cola Lime, Cola Orange and Cola Raspberry. Employees 92,400 Licence Of 500 Brands in 200 Countries Product Type A leading manufacturer, distributor and marketer of non-alcoholic beverage concentrates & syrups Website www.coca-cola.com Servings per Day 1.6 Billion VISION • People: Be a great place to work where people are inspired to be the best they can be. • Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs. • Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value. • Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities. • Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities • Productivity: Be a highly effective, lean and fast-moving organization.
  • 42. IMC OF COCA COLA Page | 42 MISSION • To refresh the world in body, mind and spirit • To inspire moments of optimism through our brands and our actions • To create value and make a difference everywhere we engage. VALUES  Leadership: The courage to shape a better future  Collaboration: Leverage collective genius  Integrity: Be real  Accountability: If it is to be, it's up to me  Passion: Committed in heart and mind  Diversity: As inclusive as our brands  Quality: What we do, we do well
  • 43. IMC OF COCA COLA Page | 43 HINDUSTAN COCA- COLA BEVERAGES PRIVATE LIMITED (HCCBPL) Hindustan Coca-Cola Beverages Private Limited (HCCBPL) is a wholly-owned subsidiary of TCCC, and the largest bottler in India. It is a part of The Coca-Cola Company’s Bottling Investments Group (BIG2). HCCBPL has 24 bottling plants at strategic locations spread across the country and covers about two-thirds of the bottling franchise (by population) in India. HCCBPL works actively with approximately 3800 distributors across the country to place beverage products in 1.4 Million retail outlets to provide refreshment to 25 Million consumers every day. The registered & corporate offices of HCCBPL are located at: Registered Office: B-91, Mayapuri Industrial Area, Phase – I, New Delhi – 110 064, India Corporate Office: 3rd Floor, Orchid Centre,DLF Golf Course Road, Sector 53, Gurgaon– 122 001, Haryana, India BOTTLING PARTNERS The authorised bottlers of The Coca-Cola Company prepare, package, distribute and sell beverages to our customers and vending partners, who in turn sell our products to consumers. The Coca-Cola System in India has extensive reach and inspires moments of happiness across the country; a small volume of our beverages are also exported to neighboring markets like Nepal, Bhutan, Bangladesh and Maldives (demand driven). In the year 2013, three new bottling plant sites became operational at: • Chhata (Brindavan Agro Industries Limited) • Unnao (Brindavan Bottlers Limited) • Bidadi (HCCBPL)
  • 44. IMC OF COCA COLA Page | 44 FRANCHISEE BOTTLING PARTNERS The Coca-Cola System in India includes Franchisee Bottlers (FBO – licensed by TCCC) who prepare, package, distribute and sell our beverage brands. Following is a list of such FBOs who are located across the country: • Amrit Bottlers Private Limited • Brindavan Agro Industries Private Limited • Brindavan Beverages Private Limited • Brindavan Bottlers Private Limited • Bengal Beverages Private Limited • Diamond Beverages Private Limited • Enrich Agro Food Products Private Limited • Kandhari Beverages Limited • Ludhiana Beverages Private Limited • Moon Beverages Limited • Narmada Soft Drinks Private Limited • Sri Sarvaraya Sugars Limited • Superior Drinks Private Limited • Udaipur Beverages Private Limited • Wave Beverages Private Limited
  • 45. IMC OF COCA COLA Page | 45 SWOT ANALYSIS S W O T Strengths Global presence Brand awareness Strong marketing & advertising Global brand in terms of value ($77,839 billion) World’s largest market share in beverage Biggest beverage distribution channel Customer loyalty Corporate social responsibility Weaknesses Negative publicity Low profits in strong areas Decline in cash flow Supply is restricted Significant focus on carbonated drinks Undiversified product portfolio Brand failures or many brands with insignificant amount of revenues Opportunities • Aggressive acquisitions • Increase in demand for bottled water • Bottled water consumption growth • Increasing demand for food & beverage • Growing beverages consumption in emerging markets • Growth through acquisitions Threats • Intense competition • Slowdown in rural demand • Negative health effect • Soda Fountains. • Changes in consumer preferences • Water scarcity • Competition from PepsiCo and Other Local Brands • Saturated carbonated drinks market Internal Factors External Factors Positive Negativ e
  • 46. IMC OF COCA COLA Page | 46 COCA COLA PESTLE ANALYSIS SOCIAL/CULTURAL ENVIRONMENT  The company has had the ability to grow with the world and all the changes that have been made over the years.  Their adaptation abilities have helped the company survive for over one hundred years.  The bottles have also changed shape and style over the years to help with environment.  Coca Cola has always tried to focus on Indian Culture, festivals and the joy of drinking Coke with family unlike its rival cola companies focusing on only Youth  Many Indian Peoples are practicing healthier lifestyles.  Many are switching to bottled water and diet colas instead of beer and other alcoholic beverages.
  • 47. IMC OF COCA COLA Page | 47 POLITICAL AND REGULATORY ENVIRONMENT  The Governments involvement in the soda industry has not affected operations much. There have been regulations put out for bottling procedures & the way Coke was labeled.  In the early years of the company there was actually one ingredient removed from the original formula.  The ingredient was the Coca also known as ‚Cocaine‛ from the recipe. ECONOMIC ENVIRONMENT Company also had decided to leave in year 1977 during Morarji Desai’s Government. George Fernandez’s department under Janta Party rule was the acting force. Foreign Exchanges Regulation Act (FERA) demanded foreign companies to dilute their equity stake in their Indian associates to 40 percent if they wished to remain in the country.  The Company left rather than compromising its Cola formula to the Government.  Coca- Cola has a continuous business cycle that never stops.  They offer so many different products that there are no specific dropping points on sales.  As long as the product is being manufactured and continues to grow around the world the market for the drinks offered will not diminish anytime soon.  The Coca-Cola Company contracts with numerous bottling companies around the world to create and distribute their beverages.  The Coca-Cola Company has been very successful in helping other nations grow and become economically stable by investing millions of dollars back into the countries in which they are operating.  The non-alcoholic beverage industry has high sales in countries outside the U.S. TECHNOLOGICAL ENVIRONMENT  With the new bottling techniques a lot more of cokes products have been able to be distributed a lot faster and in higher volumes.  They have the capability to serve 1.6 billion people a day.
  • 48. IMC OF COCA COLA Page | 48  The company has also managed to purchase most of the bottling plants and make them a pure company asset rather than being privately owned.  With the advancements in advertising and the Medias that can be used Coke has been able to reach more people faster.  The new technology of internet and television which use special effects for advertising through media  Introduction of cans and plastic bottles have increased sales for Coca-Cola as these are easier to carry and you can ‚bin‛ them once used.  There has been introduction of new machineries all the time. LEGAL ANALYSIS  Soft drink Inter brand competition act of 1980 secured the right of concentrate  Producers (cps) to grant exclusive territories to bottlers  The company was granted a trademark for the name ‚Coke‛ in 1945.  Pressure from the scientific community for the FDA to enforce caffeine labels warning of the dangers of caffeine consumption  Obstacles in international operations included regulations, price controls, advertising restrictions and lack of infrastructure Eg. China, Cuba ENVIRONMENTAL ANALYSIS  Increasing the importance of environmental policies does effect Coca Cola directly  The Environmental Protection group like NGO who are against Coca Cola for using water for its factory in Gujarat and Orissa  Introducing water saving methodology for its Cola production. Eg. Anandana – Coca-Cola India Foundation  Anandana focuses on supporting social projects in the domains of water sustainability and the spread of new and renewable energy sources. Geographically, Anandana focuses on some of the most backward regions of the country.  The Pesticide crisis which took place in year 2003
  • 49. IMC OF COCA COLA Page | 49  In spite of these Coca Cola has been able to make a clean image through CSR activities and ads showing its quality tests in factory. DEMOGRAPHIC ANALYSIS  Educated people belonging to upper and middle-income groups also commonly use Coca-Cola.  Major emphasis of Coca-Cola is to attract teenagers.  Diet Coca-Cola offered by Company is Very popular among diabetic patients.  Consumers of the ages of 37 to 55 are also increasingly concerned with nutrition. [Source: Coca-Cola Back to School Conference]
  • 50. IMC OF COCA COLA Page | 50 Coca Cola’s Porter’s Five Analysis w Supplier Power Buyer Power Competitive Rivalry Threat of Substitution Threat of New Entry Low Pressure  13 Bottling Partners  62 Bottling Plants  25,000 Employees  1,50,000 Industry People  2.6 million retail Outlets Low Pressure  Large customer chain  All Age group availability  Pepsi only focus on Youngsters  Retailers like Wal-mart, McDonald Have bargain power. High Pressure  Quality differences  Competitors Water, Pepsi, Amul, Frooti, Soda Fountains, Rasna  Refreshment Drinks  Different content Medium to High Pressure  Substitute performance  Cost of change  Limited Taste variety  Water is only substitute as per Coke Cola Medium Pressure  More than a century old brand  High Brand Value  Registered as Trademark, well known brand with recipe as secret  Sponsors of big events like Olympics, Commonwealth Games, TV shows Balance of Power
  • 51. IMC OF COCA COLA Page | 51 COCA COLA’S BCG MATRIX Once the businesses brand has been classified, they are placed into four different quadrants of the matrix. The quadrants of the matrix are divided into 1) Cash Cows – High market share but low growth rate (most profitable). This type of product of any brand is able to generate substantial amount of profit on regular basis 2) Stars – High market share and High growth rate (high competition). This product is the high selling and revenue earning product, sometimes which eats the main brand itself i.e. Brand Cannibalization. 3) Question marks – Low market share and high growth rate (uncertainty). This product can be new or old but is not able to have a defined position. It’s uncertain where it would end up i.e. Cash Cow position or Dog. 4) Dogs – Low market share and low growth rate (less profitable or may even be negative profitability). Its not able to generate revenue as much as its production cost. On the basis of this classification, strategies are decided for each Product Thums Up, Coca Cola, Maaza Sprite, Fanta, Coke Zero Kinley water & Soda, Limca Diet Coke, Minute Main, Burns
  • 52. IMC OF COCA COLA Page | 52 PRODUCT LIFE CYCLE OF COCA COLA PRODUCTS BY BCG MATRIX ANALYSIS Coke Zero is just introduced in India; it needs some time to decide its performance in the soft drink industry. Thus it is not only in introduction stage but also as ‚Question mark‛ product. Sprite and Fanta are already introduced long before but they face good competition from Mountain Dew, Seven Up and Mirinda which caters to similar taste. Thus they are also in question mark. Thums Up has been the biggest sellout since soft drinks were introduced in India, even more than Coca Cola itself. There was a time that Coca Cola was facing brand cannibalization among its own product. But good marketing and promotion slowly made the main drink come to star level. Maaza is one more drink which is able to stand unique in spite of other contemporaries like Slice and Fruity. Thus, they are stars. Limca, Kinley bottled water and Kinley soda are cash product because they are able to generate enough revenue for its maiden company and have a group of loyal consumers like kids, females who prefer less strong drink. Diet Coke, Minute main, Nimbu and Burn are the drinks which are introduced few years back but are not very popular to a large audience. Burn faces more competition from Red Bull. Their revenue is less comparatively
  • 53. IMC OF COCA COLA Page | 53
  • 54. IMC OF COCA COLA Page | 54 CHAPTER-5 COCA COLA STRATEGIC COMMUNICATION What is Strategic Planning? Strategic planning is an organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy. It may also extend to control mechanisms for guiding the implementation of the strategy. In order to achieve the same communication to both internal & external publics is required. Following skills are important in strategic planning a. Research to understand current situation b. Utilization of maximum resources by deciding modes operandi c. Choosing medium, media mix and tactics operations d. Taking feedback and Researching after completing project NINE STEPS OF STRATEGIC PLANNING  Phase One: Formative Research –  Step 1: Analyzing the Situation  Step 2: Analyzing the Organization  Step 3: Analyzing the Publics  Phase Two: Strategy –  Step 4: Establishing Goals and Objectives  Step 5: Formulating Action and Response Strategies  Step 6: Using Effective Communication  Phase Three: Tactics –  Step 7: Choosing Communication Tactics  Step 8: Implementing the Strategic Plan  Phase Four: Evaluative Research –  Step 9: Evaluative the Strategic Plan
  • 55. IMC OF COCA COLA Page | 55 Phase One: Formative Research Step 1: Analyzing the situation Analysis of the situation is the crucial beginning to the process. It is imperative that all involved-planner, clients, supervisors, key colleagues and the ultimate decision makers agrees to the opportunity or threat to be observed in this program. Step 2: Analyzing the Organization: This step involves a careful and candid look at three aspects of the organization: (1) Its internal environment (mission, performance and resources), (2) Its public perception (reputation) (3) Its external environment, (competitors and opponents, as well as supporters). Step 3: Analyzing the Publics: This step includes an analysis of each public in terms of their wants, needs and expectations about the issue, their relationship to the organization, their involvement in communication and with various media, and a variety of social, economic, political, cultural and technological trends that may affect them To analyze the publics, three things are very important to understand the market segments which comprises from family to friends, people to politics, boss to business etc. and they are: i). Public: It consist of communication and interdependency between organizations having common goals, command interest and face common concern. ii). A Market: It’s mainly to conduct business or generate support and participation. iii). Audiences: The main target or people for whom the process of informing & educating to aware is done. Step 4: Establishing Goals and Objectives The second phase of the planning process, Strategy, deals with the heart of planning: making decisions dealing with the expected impact of the communication, as well as the nature of the communication itself.
  • 56. IMC OF COCA COLA Page | 56 Phase Two: Strategy Step 5: Formulating Action and Response Strategy: A range of actions is available to the organization, and in this step you consider what you might do in various situations. This section includes typologies of initiatives and responses. Communication Strategy: Approach with persuasion to make public support and use maximum advantage of this service should be created in order to avoid public opposition in development. Proactive Strategies: Utilizing Visual media and one on one personalized communication to approach people in order to get supportive response. As, there are fair chances of people opposing the operations when in progress if they lack the vision of big picture Reactive Strategies: Keeping Crisis & Safety measures in mind and in case of any unexpected occurrence or accident taking place then convincing public to assure of being careful next time with guarantee of precautionary measures. Step 6: Using Effective Communication: It deals with the various decisions about the message, such as the sources who will present the message to the key publics, the content of the message, its tone and style, verbal and nonverbal cues, and related issues Following strategy can be considered to communicate effectively Information level- Utilization of upgradable mass media like New Media, Social media, Short Message Service, Monthly One article on Coke in Popular News Papers, Related events and Site updates Persuasion level: In order to persuade skills like communication, data analyzing, convincing, negotiation etc. is required. The best way to achieve the desired response is to do lobbying and PR activity consisting of propaganda of modes operandi with expected results. Dialogue level: The Level of communication should be taking place considering Megacities & Metro city in mind. Higher authorities in charge of decision making should be communicating to the common mass and audience
  • 57. IMC OF COCA COLA Page | 57 Phase Three: Tactics During the Tactics phase, various communication tools are considered & the visible elements of the communication plan are created. Step 7: Choosing Communication Tactics This inventory deals with the various communication options. Specifically, the planner considers four categories: (1) Face-to-face communication & opportunities for personal involvement (2) Organizational media (sometimes called controlled media) (3) News media (uncontrolled media) (4) Advertising and promotional media (another form of controlled media). While all of these tools can be used by any organization, not every tool is appropriate for each issue. This is the phase where we allocate the controlled and uncontrolled media precisely. Step 8: Implementing the strategic plan You develop budgets and schedules and otherwise prepare to implement the communication program. This step turns the raw ingredients identified in the previous step into a recipe for successful public relations and marketing communication Phase Four: Evaluative Research The final phase, Evaluative Research, deals with evaluation and assessment, enabling you to determine the degree to which the stated objectives have been met and thus to modify or continue the communication activities Step 9: Evaluating the Strategic Plan This is the final planning element, indicating specific methods for measuring the effectiveness of each recommended tactic in meeting the stated objectives.
  • 58. IMC OF COCA COLA Page | 58 COCA-COLA INDIA Coca-Cola is a leading brand in the Indian beverage market with a 60 percent share in the carbonated soft drinks segment, 36 percent share in fruit drinks segment and 33 percent share in the packaged water segment. INITIAL SUFFERINGS Coca Cola initially entered the Indian market during the late 1970s it was though a well -known drink by the time it had entered the market. In the late 1977 The Minister of Industries, George Fernandes, in the new Janata government of Morarji Desai, projected itself as a party dedicated to Swadeshi (self-reliance), raised a particular provision of the Foreign Exchanges Regulation Act (FERA) which demanded foreign companies to dilute their equity stake in their Indian associates to 40 percent if they wished to operate in the country. After the economic reforms policy of LPG (Liberalization, Privatization and Globalization) the company again entered in India in the year 1993 after the new government decided to liberalize the market again. INITIAL MISTAKE This entry in the market was more dramatic for the company as it bought out all the leading soft drink brands of India like Thums-up, Limca, and Gold Spot resulting to a position where it was accused of cannibalizing its competition by using its financial power. This was due to the fact that for some time Coca Cola was the only product into prime focus of their promotion rather than other Indian brand it had over taken. Though this was slowly realized by the Company and they gave Thums up and Limca equal weightage. This gave the Coca Cola Company an advantage of getting ready made established set up of 60 Bottling Plants of Parle Group and additional 13 of the companies own in India benefitting it to cover 60% of the market share of Cola Industry in India.
  • 59. IMC OF COCA COLA Page | 59 STRATEGIC DRAWBACK IN THE BEGINNING In the beginning the company signed well known stars like Aamir Khan, Hritik Roshan, Karishma Kapoor, Rani Mukherjee, Akshaya Kumar, Aishwaria Rai from film industry and did heavy converted Ads in movies like Taal, Rang De Basanti, Yadeein etc. It also bagged that time shining cricketer Virendra Sehwang who was in his best form and new to Indian Cricket. Trying to be present in minds of the customers as much as possible from any recollection medium like TV, Radio, News Paper, Movies etc. But, even after years had passed in the Indian market, the company was unable to make profits compared to its competitors. The breakeven point or profit was not yet generated because of its very aggressive investment strategies of large amounts of promotions and competitive pricing strategy to try and beat the competition. REASON OF THE ERROR Their prime appeal was to urban lifestyle and to urban youth. This was more like American way of life which could only influence a limited number of people. There was a large segment which preferred Thums Up, Limca a local brand more than and Cola’s which were supposed to be ‘Refrigerated’ before consumption. The only advantage that Coca Cola could consider that time was taking over the bestselling soft drink brand. Coca Cola realizing its lack of understanding of local preference and Indian culture did an extensive research in India. It realised that it was competing with traditional refreshments such as Narial-pani (coconut-water), Ganne ka Ras (Sugarcane Juice), Nimbu-pani (lemon-water), Chai (tea), Chaaj - Lassi (yoghurt drink), Shikanji (Sweet- Syrup) and Fruit juices. All these traditional drinks were available in price half of the Cold drinks available in market. All this was also giving indication towards a big demographic population which was not properly noticed by Coca Cola Middle Class, Lower Middle Class and Rural India.
  • 60. IMC OF COCA COLA Page | 60 Additionally one could note that affordability was a driver in the Indian context for desirability. It was also noted that soft drink consumption was somewhat limited to special occasions like outings, parties, festivals and weddings in compared to more developed countries where daily consumption was in practice. Within consumers Coke located two distinct target markets: urban youth which they called ‚India A‛ and rural Indians which were called ‚India B‛. ‚India A‛ only made up 4% of India’s total population, remaining 96% population consisted of Middle class and Rural people who were not the prime focus of Coca Cola promotional activity. Coca Cola appeared like a product for niche product. STRATEGIES TO OVERCOME CHALLENGES STRATEGIC IMPLIMENTATION It was understood by cases of other FMCG product companies like Soap or Shampoo or toothpaste producer that Size, Price and Reach does matter! It was clear that FMCGs in India require employment of the 3As of Availability, Affordability and Acceptability.
  • 61. IMC OF COCA COLA Page | 61 AVAILABILITY Once CCI entered the rural market, it focused on strengthening its distribution network there. It realized that the centralized distribution system used by the company in the urban areas would not be suitable for rural areas. In the centralized distribution system, the product was transported directly from the bottling plants to retailers (Refer Figure I). However, CCI realized that this distribution system would not work in rural markets, as taking stock directly from bottling plants to retail stores would be very costly due to the long distances to be covered. The company instead opted for a hub and spoke distribution system
  • 62. IMC OF COCA COLA Page | 62 Under the hub and spoke distribution system, stock was transported from the bottling plants to hubs and then from hubs, the stock was transported to spokes which were situated in small towns. These spokes fed the retailers catering to the demand in rural areas. CCI not only changed its distribution model, it also changed the type of vehicles used for transportation. The company used large trucks for transporting stock from bottling plants to hubs and medium commercial vehicles transported the stock from the hubs to spokes. For transporting stock from spokes to village retailers the company utilized auto rickshaws and cycles. Commenting on the transportation of stock in rural markets, a company spokesperson said, ‚We use all possible means of transport that range from trucks, auto rickshaws, cycle rickshaws and hand carts to even camel carts in Rajasthan and mules in the hilly areas, to cart our products from the nearest hub.‛
  • 63. IMC OF COCA COLA Page | 63 AFFORDABILITY A survey conducted by CCI in 2001 revealed that 300 ml bottles were not popular with rural and semi-urban residents where two persons often shared a 300 ml bottle. It was also found that the price of Rs10/- per bottle was considered too high by rural consumers. For these reasons, CCI decided to make some changes in the size of its bottles and pricing to win over consumers in the rural market. So Coke launched a 200ml returnable glass bottle called ‚Chota Coke‛at a lower price of Rs. 5 with accompanying advertising campaigns The Chota Coke of Coca Cola India proved competitive against local brands in the unorganized sector. It was reported that in the states of Rajasthan and Gujarat the local cola brands such as Choice and Tikli costed only half the price offered by CCI, which gave them the advantage in garnering the major market share before CCI came out with Chota Coke. CCI also targeted the rural consumer aggressively in its marketing campaigns, which were aimed at increasing awareness of its brands in rural areas.
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  • 65. IMC OF COCA COLA Page | 65 ACCEPTABILITY The initiatives of CCI in distribution and pricing were supported by extensive marketing in the mass media as well as through outdoor advertising. The company put up hoardings in villages and painted the name Coca Cola on the compounds of the residences in the villages. Further, CCI also participated in the weekly Mandies by setting up temporary retail outlets, and also took part in the annual haats11 and fairs - major sources of business activity and entertainment in rural India. CCI also launched television commercials (TVCs) targeted at rural consumers. In order to reach more rural consumers, CCI increased its ad-spend on Doordarshan[6] The company ensured that all its rural marketing initiatives were well-supported by TVCs. When CCI launched Chota Coke in 2002 priced at Rs. 5, it bought out a commercial featuring Bollywood actor Aamir Khan to communicate the message of the price cut and the launch of 200 ml bottles to the rural consumers. A sub-section of the Thanda campaign promoted the reduced size and corresponding price reduction of Coca Cola bottles, using the tag-line Panch Rupiya Matlab Chota Coca Cola (Five Rupees Means Small Coca Cola) - UP Bahiya in the Panch Rupiya TVC
  • 66. IMC OF COCA COLA Page | 66 The commercial was shot in a rural setting. In the summer of 2003, CCI came up with a new commercial featuring Aamir Khan, to further strengthen the Coca-Cola brand image among rural consumers. The commercial aimed at making coke a generic name for ‘Thanda.’ Of the reason for picking up the word ‘Thanda’, Prasoon Joshi, national creative director – McCann Erickson, the creator of the commercial, said, ‚Thanda is a very North India-centric phenomenon. Go to any restaurant in the north, and attendants would promptly ask, ‘thanda ya garam?’ ‘Thanda’ usually means lassi or nimbu pani, ‘garam’ is essentially tea. Because the character, in itself, represented a culture, we wanted to equate Coke with ‘Thanda’, since ‘Thanda’ too is part of the popular dialect of the north. Thus making ‘Thanda’ generic for Coca-Cola. With the long-playing possibilities of the ‘Thanda’ idea becoming evident, ‘Thanda’ became the central idea. Once we decided to work on that idea, the creative mind just opened up.‛[7] Between March and September 2003, CCI launched three commercials with the ‘Thanda Matlab Coca-Cola’ tag line. All the three commercials aimed to make rural and semi- urban consumers connect with Coca-cola. The first ad featured Aamir Khan as a ‘Tapori’ (street smart); in the ad he makes the association between Coca-Cola and the word ‘Thanda.’
  • 67. IMC OF COCA COLA Page | 67 The second commercial in the series featured Aamir Khan as a ‘Hyderabadi shop- keeper’; here again he equates the word ‘Thanda’ with Coca-Cola. The third commercial featured Aamir Khan as a ‘Punjabi farmer’ who offers Coca Cola to ladies asking for Thanda. The three commercials showed progression in associating ‘Coke’ with ‘Thanda’ in a rural/ semi-urban context. In the first commercial the connection of Coke with Thanda was made, in the second one there was a subtle difference, with the shopkeeper asking customers to ask for Thanda instead of Coke, and the third commercial showed that when one asked for Thanda, one would get Coke. Analysts said that all the three commercials succeeded in make rural consumers connect to Coke and increased awareness of the brand among them. Along with TVCs, CCI also launched print advertisements in several regional newspapers.
  • 68. IMC OF COCA COLA Page | 68 To be successful, the company decided invested more than US$ 1bn to build overall infrastructure required for succeeding in India. The company invested in setting-up 25 wholly owned bottling plants in India. All these steps taken by the company ensured that the company was able to ensure a deeper level of penetration in the Indian market – even in the rural areas [4] Following the Success of these TVCs the Company launched another Advertisement to symbolize Coca Cola as Thanda. Where a Nepali Tourist Guide makes a honeymoon couple realize that Thanda means Coca Cola not just any other drink FACILITY AND DURABILITY Though it was made to believe that Thanda means Coca Cola the company knew that to just pitch it as Thanda (Cold) and serve it cold is another thing. Thus Coca Cola introduced first time in India facility for keeping Cold drink cold that Coca Cola Ice Box. It was useful because of the following reason 1) No Electricity required. Considering that villages have more power cut and less electric supply. 2) Easy storage and economical. It was natural that location where they had to sell their soft drink in half the rate would not afford Freeze Cooler or Refrigerator. 3) Stands or Mobile Coca Cola sales carrier were introduced for village, Highway Vendors 4) Their focus was to be more Global + Local = Glocalized
  • 69. IMC OF COCA COLA Page | 69 Adaptation to distribution in diverse conditions includes use of branded rickshaw vans, tricycles and lahris (pushcarts) that can cope with congested Indian urban roads and an extensive network and hub system has been devised for rural delivery. (Kaye, 2004) Additionally lahris mobilise supply, as fixed shops are often not apparent in popular locations such as parks, colleges and even slums. Such vehicles are commonly branded by local sign-writers who also produce numerous wall advertisements – another way in which the Coca Cola visual marketing has become localised.
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  • 72. IMC OF COCA COLA Page | 72 CHAPTER- 6 CRISIS COMMUNICATION Strategic Communication - It is based on research and subject to eventual evaluation. It operates within a particular environment, which involves both the organization and groups of people who affect in some way.  Issue – a topic of discussion, a matter in dispute or a sensitive subject within an organization, industry or society  Accident – an unexpected and undesirable event, usually one resulting in damage or injury  Emergency – a serious situation or unexpected occurrence that demands immediate action and communication  Crisis – a critical or decisive point at which an organization’s response to an issue, accident or emergency threatens the reputation and/or future standing of the organization  Goal: Prevent issues, accidents and emergencies from becoming crises Why Crises Happen  Management’s failure to understand the issue, public opinion  Failure to effectively engage the media – allowing others to control the issue  Failure to demonstrate control, concern and credibility  Over-reliance on legal response/defense Three C’s of Success  Control -Take appropriate action, explain it  Concern - Demonstrate concern, compassion  Credibility – Know the facts – Be first with the news – Build trust
  • 73. IMC OF COCA COLA Page | 73 Crisis Management Crisis management is a situation-based management system that includes clear roles and responsibilities and process related organizational requirements company-wide. The response shall include action in the following areas: Crisis prevention, crisis assessment, crisis handling and crisis termination. The aim of crisis management is to be well prepared for crisis, ensure a rapid and adequate response to the crisis, maintaining clear lines of reporting and communication in the event of crisis and agreeing rules for crisis termination. Crisis management consists of different aspects including  Methods used to respond to both the reality and perception of crises.  Establishing metrics to define what scenarios constitute a crisis and should consequently trigger the necessary response mechanisms.  Communication that occurs within the response phase of emergency-management scenarios. Types of Crisis 1. Natural disaster 2. Technological crises 3. Confrontation 4. Malevolence 5. Organizational Misdeeds 6. Workplace Violence 7. Rumours 8. Terrorist attacks/man-made disasters
  • 74. IMC OF COCA COLA Page | 74 Before Emergencies Strike / Crisis Management  Crisis Management: It is the name given to the process by which an organization deals with out-of-control issues.  Consider likely, unlikely scenarios  Identify key staff members, roles  Establish relations with external contacts  Develop a plan - Objectives for each audience - Think, ‚How would we?‛ - Identify resources - Training, rehearse staff members
  • 75. IMC OF COCA COLA Page | 75 COCA COLA’S CRISIS COMMUNICATION THE PESTICIDE CONTROVERSY Coca Cola had suffered in the Indian market because of the pesticides controversy that took place in the year 2003 that resulted in 11 percent decline in the sales during that time. It had a very negative impact on Coca-Cola’s brand image in the minds of the Indian consumers [8]. This was claimed by CSE that Coca Cola had 25% pesticide content On August 5, 2003, The Center for Science and Environment (CSE), an NGO in India, attacked the safety of Coca-Cola India’s products in a press release titled ‚Twelve Major Drink Brands Sold in and Around Delhi Contain a Deadly Cocktail of Pesticide Residues.‛ STRATEGY COMMUNICATION TO CRISIS The company successfully overcame the biggest challenge it faced in the year 2003 of the pesticide controversy. They hired Aamir Khan and Smriti Irani - popular TV actor at that time to ensure that customers retain the faith they had in the market. They showed commercial where Aamir is given a tour of the Coca-Cola factory and is briefed about the 400 quality control tests that are a part of the production process to convince the customers that the brand they are consuming is totally safe for them.
  • 76. IMC OF COCA COLA Page | 76 The Company had put wall paintings, Hoardings, Banners and also introduced SMS Contact for any Coca Cola Factory visit for people who would text ‚TRUST‛ to Coca Cola’s Initiative number for the above mentioned crisis Aamir Khan was also shown as a Bengali Babu who certifies Coca Cola as good for consumption after this controversy for the common audience, specifically pitching to Indian household, family and youth.
  • 77. IMC OF COCA COLA Page | 77 WATER POLLUTION AND THE OVER-EXTRACTION OF GROUNDWATER Coca-Cola was also accused of causing water shortages in – among other areas – the community of Plachimada in Kerala, southern India. In addition, Coca-Cola was accused of water pollution by discharging wastewater into fields and rivers surrounding Coca-Cola’s plants in the same community. Groundwater and soil were polluted to an extent that Indian public health authorities saw the need to post signs around wells and hand pumps advising the community that the water was unfit for human consumption[8] In 2000, the company established its production operations in Plachimada. Local people claimed that they started experiencing water scarcity soon after the operations began. The state government initiated proceedings against Coca-Cola in 2003, and soon after that the High Court of Kerala prohibited Coca- Cola from over-extracting groundwater.[8] By 2004 the company had suspended its production operations, while it attempted to renew its licence to operate. Coca-Cola argued that patterns of decreasing rainfall were the main cause of the draught conditions experienced in the area. After a long judicial procedure and ongoing demonstrations, the company succeeded in obtaining the licence renewal to resume its operations[8] In 2006 Coca- Cola’s successful re-establishment of operations was reversed when the government of Kerala banned the manufacture and sale of Coca-Cola products in Kerala on the ground that it was unsafe due to its high content of pesticides.[8] However, the ban did not last for long and later that same year the High Court of India overturned Kerala’s Court decision.[8] After overcoming all these challenges, Coca-Cola was again set to expand India as a market further and took it from number 7 in the global pecking order to a market that is number 5 for Coca-Cola globally and for achieving this objective the company has earmarked US$ 5 billion for ensuring that the company is not letting go its focus on developing the Indian market further successfully
  • 78. IMC OF COCA COLA Page | 78 COCA-COLA’S CSR POLICIES POST-CONFLICTS Two years before the water conflict in India in 2003, Coca-Cola adopted the GRI Guidelines and started reporting on sustainability. By 2003, the company had already experienced a few CSR-related conflicts in other parts of the world.[8] However, none of them had the grave consequence of a loss of trust in the company and its products by consumers and the public in general. In 2008 the company published its first environmental performance report on operations in India, which covered activities from 2004 to 2007[8] It also created the Coca-Cola India Foundation, ‚ANANDANA‛, which works with local communities and NGOs to address local water problems. [8] But perhaps the most outstanding change of strategy by Coca-Cola consisted of launching various community water projects in India. An example is the rainwater harvesting project, where Coca-Cola’s operations partnered with the Central Ground Water Authority, the State Ground Water Boards,NGOs and communities to address water scarcity and depleting groundwater levels through rainwater harvesting techniques across 17 states in India. These techniques consist mainly of collecting and storing rainwater while preventing its evaporation and runoff for its efficient utilisation and conservation. The idea behind this is to capture large quantities of good quality water that could otherwise go to waste. By returning to the ecosystem the water used in its operations in India through water harvesting, the company expected that this project could eventually turn the company into a ‘net zero’ user of groundwater by 2009[8]
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  • 81. IMC OF COCA COLA Page | 81 CHAPTER – 7 COCA COLA CORPORATE SOCIAL RESPONSIBILITY There is no clear definition of CSR. In Corporate Social Responsibility, Legal and semi- legal frameworks supporting CSR Lambooy gives an overview of several definitions of CSR.1 The European Commission defines CSR as ‘the responsibility of enterprises for their impacts on society’.[9] Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large • Corporate Conscience • Corporate citizenship • Social performance • Sustainable responsible business The Coca Cola Company used large amounts of water and energy in its beverage production and tons of packaging material for its products, it had taken up several initiatives to act as a responsible company and reduce its environmental impact. In addition to water, energy, and sustainable packaging, Coca-Cola India also focused on several community initiatives in India as part of its social responsibility initiatives.
  • 82. IMC OF COCA COLA Page | 82 Their Sustainability Framework – which they call ‚Me, We, World‛– is their shared vision for how they can work together to create social value and make a positive difference for the consumers and communities they serve. [13] Me Enhancing personal well-being Our longstanding commitment to consumers’ well-being begins with ensuring that each and every beverage we deliver is safe, delicious and refreshing. Further, we work to inspire consumers to pursue happier, healthier lives—and provide opportunities to do so—through the wide variety of products we offer, our transparent labeling practices, our responsible marketing practices and the many physical activity programs we support around the world. We Building stronger communities Community well-being for us means more than just giving back to the community - we firmly believe that our businesses are only as strong as the communities which we serve. Women play a crucial role in our value chain; we believe that unleashing the entrepreneurial potential of women is one of the surest ways to make our business sustainable and also create lasting impact on families and communities. Through suitable training programs, we are assisting retailers keep pace with changing customer preferences. We are also contributing to the development of local communities, through need-based programs – such programs are focused on education, enhancement of employability and well-being. Respecting human and workplace rights is yet another key constituent of the ‘We’ pillar. World Protecting the environment Water is a top sustainability and business priority for Coca-Cola. It is critical to the communities we serve and the ecosystems on which we all depend, and hence, finds a special place in our approach to sustainability. The Coca-Cola system in India has been working with a variety of partners to reduce and recycle packaging material. Project Unnati, a sustainable agriculture project, has been helping Mango farmers in Andhra Pradesh adopt modern farming techniques like drip irrigation and Ultra- High Density Plantation. The project substantially increases mango yield and enhances farmer income. Our bottling locations are also focused on energy efficiency and adoption of renewable energy, thereby reducing our carbon footprint.
  • 83. IMC OF COCA COLA Page | 83 ANANDANA – Water Conservation Anandana – Coca-Cola India Foundation, a Company registered under Section 25 of the Companies’ Act, is a wholly owned not for profit charitable subsidiary of CCIPL. Anandana provides monetary grants and other assistance to civil society organizations, cooperatives, philanthropic organizations and such others who can be suitable partners in implementing projects for social welfare. Anandana focuses on supporting social projects in the domains of water sustainability and the spread of new and renewable energy sources. Geographically, Anandana focuses on some of the most backward regions of the country. Anandana constantly aspires to ensure project execution, maintenance and sustainability through active involvement and direct participation of the beneficiary community at the grass-root level. Anandana is housed in the same premises as CCIPL (at the Corporate Office in Gurgaon). Anandana’s website http://www.anandana.org Conserve Water , watershed protection, rainwater harvesting projects. 110 recharge shafts that collected rainwater. Reverse filter system. The company initiated drinking water projects in Maharashtra and Gujarat to provide potable water to the local communities.[13]
  • 84. IMC OF COCA COLA Page | 84 5by20 Programs WOMEN’S ECONOMIC EMPOWERMENT – ENERGY 1. eKOcool Solar Cooler program: ‘eKOcool’ is an innovative solar cooler that has been pioneered by us and provides income generating opportunity for women retailers in electricity deficit areas of rural India. The solar coolers also help reduce the cost of running retail business since no cost is incurred on account of electricity or ice procurement, used to chill beverages. The cooler has in-built charging ports for mobile phones and a solar lantern (which facilitates the retailer to keep her store open even after the sunset). Over 1,000 eKOcool units have been installed across 5 states in India in women run outlets by the end of 2013 ‘eKOfreshment’ reduces energy consumption and emission of GHGs by refrigeration. ‘eKOfreshment’ is cooler that uses technologies devoid of hydro fluorocarbons. GHG emission reduced by three-fourths increasing the energy efficiency of its equipment by 40 to 50%
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  • 86. IMC OF COCA COLA Page | 86 2. Parivartan: This program is focused on building the retailing capabilities of women entrepreneurs especially in the areas of cash and, stock management; shop management and customer interactions. The program is conducted by the Coca-Cola University, in mobile buses that have been converted into classrooms. The buses travel across remote parts of rural India. In 2013, the program got a major impetus when we celebrated International Women’s Day by organizing retail training programs for more than 1,400 women retailers in a single day across India and Nepal. The program was scaled-up substantially in 2013 and close to 10,000 women retailers were trained during the year.
  • 87. IMC OF COCA COLA Page | 87 3. Pragati: Pragati program is also focused on building the retailing capabilities of women entrepreneurs by providing training, product knowledge and business start-up support to women retailers. The program is conducted by HCCBPL, mostly in bottling plants in remote parts of rural India. Over 13,000 women have been supported under this program by the end of 2013.
  • 88. IMC OF COCA COLA Page | 88 4. Unnati: In addition to the retailer segment of the value chain, CCIPL is also supporting producers through Project Unnati, a supply chain initiative that would enable 10,000 women mango farmers to adopt modern farming techniques and good agricultural practices (please refer the section on Sustainable Sourcing for further details of the program). Around 1,000 women have been covered under this initiative till end 2013 Since 5by20 began, we have enabled more than 26,000 women across our value chain through business skill enhancement, access to assets and networking and mentoring. The Program received the World CSR award and was featured as a best practice by the Ministry of Corporate Affairs for empowering women retailers in the distribution value chain in an environment friendly way.
  • 89. IMC OF COCA COLA Page | 89 COMMUNITIES: The Coca-Cola India is also undertaking some projects as a part of their social cause and part of the corporate social responsibility. The support my school campaign along with NDTV has Sachin Tendulkar as the brand ambassador. • A commitment to the community was part of Coca-Cola India’s CSR • In 2003,launched Jagriti Learning Centers to provide education to more than 1,800 children residing near its bottling facilities in Pune • The initiative aimed to curb waterborne diseases • It set up around 2,000 schools for children
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  • 91. IMC OF COCA COLA Page | 91 World Protecting the Environment  Water Stewardship Working to protect watersheds, reduce risks to water supplies and moving towards balancing our water use  Sustainable Packaging Our efforts to reduce our materials use, source recycled and renewable materials and build a restorative packaging system.  The Coca-Cola System in India offers its beverages in Returnable Glass Bottles (RGB’s), Aluminium cans, PET bottles and tetra packs. In excess of 50% of our beverage sale takes place in RGB packaging, which is completely recovered from the market (except for breakages).  Climate Protection Working to reduce our impacts and partnering to take action against climate change.  Sustainable Agriculture Helping to ensure a sustainable supply of ingredients, while supporting farmers and agricultural communities.
  • 92. IMC OF COCA COLA Page | 92 HEALTH • Provided health checkups, medicine, and education to rural communities on health- related topics • Company conducted blood donation camps and supported a 24-hour emergency service for children • In a few districts of Andhra Pradesh, conducted camps for Hepatitis B vaccinations, eye checkups, and malaria eradication COCA COLA CSR PARTNERSHIP • Coca-Cola takes its corporate responsibilities seriously and works in partnership with a number of organizations. These include: • The Bharatiya Agro Industries Foundation. (B.A.I.F) • The United Nations Human Settlements Programme (UNHABITAT) • SOS Children's Village of India • The Forum for Organized Resource Conservation & Enhancement (FORCE) • WWF, WRAP, The Carbon Trust, Special Olympics, Thames21, Street Games, Save the Children
  • 93. IMC OF COCA COLA Page | 93 AWARDS AND ACCOLADES ON CORPORATE SOCIAL RESPONSIBILITY
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  • 95. IMC OF COCA COLA Page | 95 CHAPTER – 8 INTEGRATED MARKETING COMMUNICATION STRATEGY Why Integration? Organizations are looking for a ‚total solutions‛ communications approach to solving business problems. There is a demand for comprehensive, seamless campaigns The Communication process Models Macromodel  Selective Attention Selective attention is when audience only sees what they want to see out of the clutter of the ads. Eg. A person who wants to buy Bike will not pay attention to any Laptop ads.  Selective Distortion When the attention of the audience is deliberately captured because they are willing to take a break from the actual presentation they see. Eg. While watching a movie if someone calls then then picking the call is selective Distortion. Not to see what you don’t want to recall.  Selective Retention Selective retention is recalling selected number of product or brand while coming through a range of them. Eg. While recollecting medium makes it a reflexive action, we can recall only selective brand and its slogan like ‚Thanda Matlab Coca Cola‛ Micromodel Learn-feel-do – High involvement with the product category - purchasing a house or an automobile Do-feel-learn – Audience has high involvement but perceives little or no differentiation within the product category – purchasing an airline ticket or a computer. Learn-do-feel – Low involvement and perceives little difference within the product category – purchasing salt or batteries
  • 96. IMC OF COCA COLA Page | 96 Steps in Marketing Communications Development 1. IDENTIFY THE TARGET AUDIENCE - It includes assessing the audience’s perceptions of the company/product image and competitor’s company/product image 2. DETERMINE OBJECTIVES OF COMMUNICATION  Category needs (I-pod, Laptop)  Brand Awareness (Coke)  Brand Attitude (Rolex, Mountain Dew)  Brand Purchase Intention (Dettol, Dispirin) Coca Cola Company focuses on the ‚Brand Awareness‛ factor more while doing any promotional activity. 3. DESIGNING THE MESSAGE  Message Strategy (Appeal, Theme, Idea) – Youth, Happiness / Joy, Share Coke  Content – A Message which would make people persuade to buy Coke  Structure - Based on the kind of mass medium used a) Format Message format decisions vary with the type of media, but may include: Graphics, visuals, Headline, copy or script, Sound effects, voice qualities, Shape, scent, texture of package b) Source Message source characteristics can influence attention and recall  Principle of Congruity – Thanda Matlab… Coca Cola, Life ho to Aisi  Factors underlying perceptions of source credibility: Mass Mediums c) Creative Strategy  Informational Appeals – Direct Appeal – Sprite Clear he, Bujhae only Pyaas  Transformational Appeals – Indirect Appeal – Coke has this approach
  • 97. IMC OF COCA COLA Page | 97 4. SELECT COMMUNICATION CHANNELS a) Personal Communication Channels Effectiveness derives from personalization and feedback like Mouth publicity. Several methods of stimulating personal communication channels exist such as business partnership. Coca Cola has partnership with large variety of food chains which caters to Coca Cola Products. Eg Mc. Donald’s, Dominos, Real Paprika. b) Non personal Communication Channels Influence derives from two-step flow-of-communication process Opinion leader or celebrity who has an influence on the common public Eg. Aamir Khan, Sachin Tendulkar, Virendra Sehwang, Farhan Akhtar, Smriti Irani 5. ESTABLISH THE BUDGET Communications Budget Types a) Affordability method – Setting the promotion budget at the level management thinks the company can afford b) Percentage-of-sales method – Setting the promotion budget at a certain percentage of current or forecasted sales or as a percentage of the unit sales price c) Competitive-parity method – Setting the promotion budget to match competitor’s outlays. d) Objective-and-task method – Defining specific promotion objectives – Sales, Branding, Awareness Determining the tasks need to achieve these objectives – Promotional Activity Estimating the costs of performing these tasks – Budgeting, Planning, Research Coca Cola Company has not considered any brand as its competitor including Pepsi, It only considers WATER as its biggest competition. If you can drink water you can drink Coca Cola is their dream target. So it uses a combination of Percentage of Sales method and Objective & Task method for its promotional Budgeting.
  • 98. IMC OF COCA COLA Page | 98 6. SELECT THE MARKETING COMMUNICATIONS MIX a) Communications Mix Selection Types of promotional tools i.e. Integrated Marketing Tools  Advertising  Sales promotion  Public relations and publicity  Direct marketing  Personal selling  E-marketing b) Selection factors - Consumer vs. business market
  • 99. IMC OF COCA COLA Page | 99 c) Stage of buyer readiness / Decision i) Pre-purchase Stage - Advertising is most valuable It informs potential customers about the existence of the product and the seller. ii) Purchase Stage - Importance of personal selling is highest Sales promotion can encourage demand for the newly introduced product iii) Post-purchase Stage - Personal contact after the sale leads to buyer satisfaction. Advertising and personal selling help reduce post purchase anxiety. iv) Stage of product life cycle – 7. MEASURE RESULTS Measure Results - Recognition, recall, attitudes, behavioral responses 8. MANAGE THE IMC PROCESS  Manage the Integrated Marketing Communications Process  Provides stronger message consistency and greater sales impact  Improves firms’ ability to reach right customers at right time with right message
  • 100. IMC OF COCA COLA Page | 100 INTEGRATED MARKETING COMMUNICATION PROCESS Competition Coca Cola as stated doesn’t consider any other cola company as it competitor except WATER. Though considering marketing strategies following forms are to be considered for competition. Brand A company views its competitors as other companies offering similar products and services to the same customers at similar prices Eg. Pepsi Industry A company views its competitors as all companies making the same products or class of products Eg. Fruity, Rasna, Soda Shops, Local Brands etc. Form A company views its competitors as all companies manufacturing products that supply the same service. Eg. Anything providing refreshments like Sugarcane Juice, Fruit Juice, Lassi, Milk, Ice Cream, Milk Shakes, Amul Cool, Lime Juice etc. Generic A company views its competitors as all companies that compete for the same consumer rupee & Rate. Eg. Any spending done with 10 to 50 rupees on Burger, Drink or Chocolate
  • 101. IMC OF COCA COLA Page | 101 INTEGRATEDPROMOTIONALSTRATEGYOFCOCA-COLA ‘Promotion & Branding’ have played a big role in Coca-Cola’s success. Its advertising has been rather pervasive, as one of Woodruff’s stated goals was to ensure that everyone on Earth drank Coca-Cola as their preferred beverage. The most popular words in the world in 20th contrary are: God, she and Coca-Cola. After the highest popularization of word – ‚OK‛, the second one is ‚Coca-Cola‛. 98% of the people know ‚Coca-Cola‛. That’s the result of Coca-Cola spending 6 hundred million dollar on promotions. There are five main ways of promoting the brand – Coca-Cola.  The first one is traditional advertising, like showing advertisements on TV or posters.  The second one is the sponsoring of sport events.  The third one is online promotion.  The fourth one is selling Coca-Cola’s collections.  The fifth one is local promotion held by bottlers or retailers. Although the main promotion in every country still follow this strategy, especially using the local stars to attract young customers, Coca-Cola begun to use computer technology to make cartoon images which matches local culture or just funny. TOOLS OF IMC – PROMOTIONAL MIX Marketing Communications is a management concept that is designed to make all aspects of marketing communication such as advertising, sales promotion, public relations, personal selling and direct marketing work together as a unified force, rather than permitting each to work in isolation. It’s also known as promotional mix as it uses 360 degree form of mass communication and public appeal in order to promote, brand and sell any product or services. Promotion mix is a part of IMC its tools are  Advertising  Public Relations  Direct Selling  Sales Promotion  Personal Selling  Internet Marketing
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  • 105. IMC OF COCA COLA Page | 105 ADVERTISING Advertising is any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor; and it is disseminated through mass channels of communication. Continuity, Flighting and Pulsing • Continuity ( some time call straight-through advertising) • This pattern is continuous, would be to run one ad everyday for 365 days or 52 weeks • Continuity is needed when an advertisers has a message that it does not want consumer to forget. • Continuous advertising works as a reminder keeping the message always. Other reason for using continuous is make it possible to take advantage of larger media discounts granted when so much advertising is purchased Flighting ( sometime called bursting) Flighting is an intermittent pattern with gaps of time when no advertising is done Year time period
  • 106. IMC OF COCA COLA Page | 106 PULSING  Pulsing is a form of flighting and continuity combined . An advertiser buys continuous advertising throughout the year and heavies up at various propitious time.  Pulsing represent the best of both technique. • It is a mixture of continuity and flighting • Fit to categories which there are sold all year round. DIFFERENT MEDIA OF ADVERTISING Print Electronic Digital/ New Media Newspaper Televison Internet websites Handbill Radio CD/ DVDs of films and music Poster Cable Network Cell Phones Banner (paper, cloth) Cinema Pamphlet Brochure Leaflet Books Magazines Print Ads – Coca Colas Print ads are theme based and display mostly family find and happiness. It’s tag line is ‚Spreading Happiness‛ – ‚Baato Khushiya‛. Print ads in News Paper, Magazine have always been a source of recollection to its consumers. Display of Celebrity like Movie stars and Cricketers adds to its appeals
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  • 109. IMC OF COCA COLA Page | 109 COCA COLA IN MOVIES – COVERT ADVERTISING - PRODUCT PLACEMENT Product placement, which has become an established marketing tactic due to its clear effectiveness in building brand recall and recognition, is not just for Hollywood. Hollywood‟s ‚big players‛ of product placement also play in Bollywood. Coca Cola in India, for instance, has benefited from placement in movies along with a celebrity endorsement with Bollywood movie star Amir Khan and won Pepsi for its market share Coca-Cola was ahead of the game even in Bollywood movies. In a scene from the film Shree 420 (1955) when Raj Kapoor, the protagonist, enters Mumbai for the first time, a large Coca-Cola banner was visible right above his head. In the movie, An Evening in Paris (1967), Coca-Cola was featured more than once. Product placement, as the numbers suggests is bringing revolutionary change in entertainment economics. However, it was Taal(1999) by Subhash Ghai, which played the same role in Bollywood .It was after Coca-Cola‟s placement in Taal that people started becoming aware of the practice of product placement.. The most successful movie branding for Coca-Cola in India was probably that of Rang De Basanti.
  • 110. IMC OF COCA COLA Page | 110 Bollywood Movies: • Shree 420, • Kaho Naa Pyar Hai, • Rang De Basanti, • Taal, • Yadeein • Kuch Naa Kaho, • Bobby. • Shuddh Desi Romance • Dhoom 2 – 3 • Aashique 2 Hollywood Movies : • Borat, Click, • Failure to Launch, • Glory Road, • Gridiron Gang, • Hostel, • Mission: Impossible III, • Silent Hill, The Covenant, • The Departed • Letter to Juliet • Ted
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