1. Coca-Cola and PepsiCo are facing a slowdown in sales growth in India, with Coca-Cola's volume growth dropping to 1% in the recent quarter from 20% the previous year. PepsiCo's volume growth has also declined from double digits last year. 2. The companies are implementing strategies like price cuts, differential pricing, increased trade discounts, and expanding distribution networks to boost volumes. Coca-Cola is reducing prices of 200ml bottles to Rs. 10 from Rs. 11-12. 3. Early and prolonged monsoon rains along with high inflation have dampened demand. However, the companies hope demand will pick up in the upcoming festival season and in rural areas

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The Coca-ColaCompanyre-enteredIndiathroughitswhollyownedsubsidiary,Coca-ColaIndiaPrivate
Limitedandre-launchedCoca-Colain1993 afterthe openingupof the Indianeconomytoforeign
investmentsin1991. Since thenitsoperationshave grownrapidlythroughamodel thatsupports
bottlingoperations,bothcompanyownedaswell aslocallyownedandincludesover7,000 Indian
distributorsandmore than2.2 millionretailers.Today,ourbrandsare the leadingbrandsinmost
beverage segments.The Coca-ColaCompany'sbrandsinIndiainclude Coca-Cola,FantaOrange,Limca,
Sprite,ThumsUp, Burn,Kinley,Maaza,Minute MaidPulpyOrange,Minute MaidNimbuFreshandthe
GeorgiaGoldrange of teas andcoffeesandVitingo(abeverage fortifiedwithmicro-nutrients).
In India,the Coca-Colasystemcomprisesof awhollyownedsubsidiaryof The Coca-ColaCompany
namelyCoca-ColaIndiaPvtLtdwhichmanufacturesandsellsconcentrate andbeveragebasesand
powderedbeverage mixes,aCompany-ownedbottlingentity,namely,HindustanCoca-ColaBeverages
PvtLtd; thirteenlicensedbottlingpartnersof The Coca-ColaCompany,whoare authorizedtoprepare,
package,sell anddistribute beveragesundercertainspecifiedtrademarksof The Coca-ColaCompany;
and an extensive distributionsystemcomprisingof ourcustomers,distributorsandretailers.Coca-Cola
IndiaPrivate Limitedsellsconcentrateandbeverage basestoauthorizedbottlerswhoare authorizedto
use these toproduce our portfolioof beverages.Theseauthorizedbottlersindependentlydeveloplocal
marketsand distribute beveragestogrocers,small retailers,supermarkets,restaurantsandnumerous
otherbusinesses.Inturn,these customersmake ourbeveragesavailable toconsumersacrossIndia.
The Coca-ColasysteminIndiahasalreadyinvestedUSD2 Billiontill 2011,since itsre-entryintoIndia.
The company will be investinganotherUSD5 Billiontillthe year2020. The Coca-ColasysteminIndia
directlyemploysover25,000 people includingthose oncontract.The systemhas createdindirect
employmentformore than1,50,000 people inrelatedindustriesthroughitsvastprocurement,supply
and distributionsystem.We strive toensure thatourworkenvironmentissafe andinclusiveandthat
there are plentiful opportunitiesforourpeople inIndiaandacrossthe world.
The beverage industryisamajor driverof economicgrowth.A National Council of AppliedEconomic
Research(NCAER) studyonthe carbonatedsoft-drinkindustryindicatesthatthisindustryhas anoutput
multipliereffectof 2.1.This meansthatif one unitof outputof beverage isincreased,the directand
indirecteffectonthe economywillbe twice of that.Intermsof employment,the NCAERstudynotes
that "an extraproductionof 1000 casesgeneratesanextraemploymentof 410 man days."
As a Company,ourproductsare an integral partof the microeconomyparticularlyinsmall townsand
villages,contributingtocreationof jobsandgrowth inGDP. Coca-ColainIndiaisamongstthe largest
domesticbuyersof certainagricultural products.
As an industrywhichhasstrongbackwardand forwardlinkages,ouroperationscatalysisgrowthin
demandforproductslike glass,plastic,refrigeration,transportation,andIndustrial andagricultural
products.Our operationsalsoleadtoincrementalgrowthforenterprisesengagedinpost-production
activitieslikemerchandising,marketingandsales.Inaddition,we share bestpracticesandtechnological
advancementswithoursuppliers,vendorsandalliedindustrieswhichoftenleadtoimprovementinthe
overall standardsof qualityacrossindustries.

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The Coca-ColaCompanyhas alwaysplacedhighvalue ongoodcitizenship.Ourbasicpropositionentails
that our Company'sbusinessshouldrefreshthe market;enrichthe workplace;protectandpreserve the
environment;andstrengthenthe community.We leverage ourunique strengthstoactivelysupportand
respondtolocal needs -- be it the needforeducation,health,waterornutrition.We have usedour
distributionnetworkfordisasterrelief,ourmarketingprowesstoraise awarenessonissuessuchasPET
recycling,andourpresence incommunitiestoimprove accesstoeducationandpotable water.The
Coca-ColaIndiaFoundationisnowtakingforwardinthe community atlarge,projectsandprogramsof
social relevance tocarryforwardthe message of inclusive growthanddevelopment.
About Coca Cola India
The Brand Coca Cola has been New India’s favorite for last 20 years. A market leader with
strong hold of 51% over the Rs 50 billion soft drink industry in India. Coca Cola India boasts of
growth rate twice that of the Indian GDP. Not only the numbers but the popularity and
accepatibilty of the product cuts across all kinds of socioeconomic classification in India. The
per capita consumption of Cold drinks in Inida is 7-8 bottles and cold drink segments
collectively have a share of over 70% in the Indian beverage Industry
Some facts about Coke India
1. Coca Cola India manufactures concentrate and beverage mixes under the wholly owned
subsidiary of of The Coca-Cola Company namely Coca-Cola India Pvt Ltd, which re-
entered Indian markets in 1993.
2. The company owns a bottling unit known as Hindustan Coca-Cola Beverages Pvt
Ltd, which works in collaboration with 13 authorized bottling partners.
3. Coca Cola family today includes 7000 Indian distributors and 1.7 million retailers.
4. Nearly 2 billion INR has been invested in India operations since its entry in the Indian
market.
5. Early acquisition of brands Thumbs up, Limca and Gold Spot gave Coca Cola India
access to better infrastructure and market reach
6. Coca Cola India’s Brand Umbrella included the following
 Coca-Cola
 Fanta Orange
 Limca
 Sprite,
 Thums Up,
 Burn
 Kinley
 Maaza
 Minute Maid Pulpy Orange,
 Minute Maid Nimbu Fresh
 The Georgia Gold range of teas and coffees
 Vitingo (a beverage fortified with micro-nutrients

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1. Coca Cola India’s biggest competition is from Pepsico India which hold about 48% of
Industry market share.
2. In the fruit-based drinks category, Coca-Cola’s Maaza is the leader, followed by Parle’s
Frooti and PepsiCo’s Slice.
3. Around thirty thousand individuals are directly employed by Coca Cola India and
another two Lac individuals get indirect employment assistance.
Coca Cola India Advertising Strategy
Two decades old Brand Coca Cola India advertising journey has been full of innovation and
creativity. Coca Cola India made a consistent effort on its part to align its product with the Indian
Culture and tradition.
The earliest of the ad campaigns shows the brand positioning itself as a relaxing drink, fighting
off the hot weather and humidity of Indian weathers. Since rival Pepsi had already established a
strong brand image based on first mover advantage, Coca Cola adopted the dual strategy of
Jingles and Celebrity endorsements.
Coca Cola India Marketing Strategy

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Some of the popular coke Jingles in first decade of its existence were ‘Always The Real Thing’,
‘Pee Le Coca-Cola’, ‘Jo Chahe Ho Jaye…Coca-Cola Enjoy.’[i]
Moving on to year 2003 we had the fun loving “Thanda Matlab Coca cola ad” where the iconic
star Amir Khan was presented in 6 different looks, working on the simple philosophy of
highlighting how Indian related to the brand as a cool relief. Word “Thanda”in India has
different meanings like cool, cold or refreshing. If you meant refreshment you meant Coca Cola.
This ad was instrumental in establishing Coca Cola as a brand in India.
Thanda Matlab Coca Cola Ad Campaign
Bollywood stars endorsing the brand include Karisma Kapoor, Aamir Khan, Hrithik Roshan and
Aishwarya Rai among others. Post 2003, next 5 years witnessed “Cola War” with rivals Pepsi
and Coke is launching an aggressive marketing campaign against each other . In total Coca Cola
roped in 15 celebrities against 8 of Pepsi.
As much as the coca cola drinks enjoy popularity with the masses, the brand has been under
serious criticism owing to the health issues associated with the consumption of Cola drinks .
Health experts allegedly blame the cola manufacturers for promoting child obesity and other
lifestyle diseases. Environmentalist has shunned the manufacturing practices of Cola giants as
they claim that cola manufacturing plants cause water depletion and contamination.
Thus to counter all negative complaints coke Post 2009, Coca Cola adopted the “Global
happiness” campaign. It experimented with different kinds of images of the year.
It was projected as a beverage enjoyed by the entire family together through ad campaigns like
“Saath Khao Khushiyaan Badao”.

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Saath Khao Khushiyaan Badao – Coca Cola India Marketing Campaign
Coca Cola India campaign “umeedon whale Dhoop, sunshine Wali Asha” ad launched in the
year 2012 , sells hope for better tomorrow . The clearly gives a message of hope and growth and
shows that every and any dream is achievable . Similarly the brand also roped in Sachin
Tendulkar, as a “happiness brand ambassador” to support various CSR initiatives the brand is
undertaking .
Coca Cola India Ad Campaign : Umeedon wala Dhoop, Sunshine wali Asha
Besides Flagship coke ad campaign, the brand has focused upon positioning other umbrella
brands i.e Thumbs Up , Limca , sprite and Fanta etc.

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Thumbs Up India has been branded as ‘Manly drink‘ in India since year 1993. Recently a brand
roped in Salman Khan as the brand ambassador. Coca Cola India has in turn partnered with
Salman Khan’s Charitable foundation “Being Human“ and would be involved in various
philanthropic initiates of the brands.
Brand Fanta has been working on Zyada Fanta Zyada Fun’ tagline and Bollywood actress Asin
currently endorses the brand .The brand is projected as a fun youth brand and celebrities the
energy of young individuals. The ads are usually humorous and perky. Over the years Fanta has
occupied a strong market place and is identified as the “The Fun Catalyst”.
Faced with slowdown threat, Coca-Cola &
Pepsico experiment with strategies to push
volumes growth
By Ratna Bhushan,ET Bureau| 28 Jul,2013, 12.02PM IST
31 comments |Posta Comment
READ MORE ON » Tropicana Coconut| SundayET | PepsiCo |Pepsi Atom|NimboozMasalaSoda|
Monsoon | fizzydrinks
But are the rainsonlyto blame?There isnobetter
time thannow to askif the slumpisdue to consumersturningawayfromfizzydrinkstohealthier
options.
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You knowyouhave a problemif yoursalestrail evendevelopingmarkets.Youknow youhave aserious
problemif yourgrowthinvolumesisbarely1% froma yearago.
That's the case withCoca-ColaIndiawhose growthinthe critical April-Junequartercame crashingdown
from20% a year ago.It was the worst performance of the Indianunitof the world'slargestbeverage
makerin five years.
Arch rival PepsiCo hasfaredbetterthan Coke butnotbetterthan itsownperformance inthe previous
year'scorrespondingperiod.Itsvolumesgrew 11% inMarch-May butit comparesbadlywiththe strong
double-digitgrowthof a yearago. Andto thinkthat the numbersforthe mostcrucial monthof the year
— June — aren't yetout.
A topofficial closelyinvolvedwithPepsiCooperationssaidthe company'sgrowthinJune hasbeensoft
as well,whichmayspoil the growthnumbersforthe nextquarter.
NewGame Plan
The Indiaunitsof Coca-ColaandPepsiCoare critical bastionsof growthfortheirAmericanparents,but
are nowconfrontedwiththe threatof a slowdowninvolumes.Executivesof bothcompanieshave been
forcedto recasttheirstrategythrougha combinationof price cuts,differential pricing(exactlythe same
productbeingsoldat differentpricesindifferentcities),trade discounts,restructuringof distribution
networksandsteppingupcapacitiesatbottlingplants.
Startingthismonth,all Coca-Cola'sbeverages in200 ml bottleswill be soldata flatRs 10, downfromRs
11-12, a toptrade official toldETMagazine."It'sheavydiscountingandatthe cost of profitability.The
companyispushingvolumesalmostasif inpanic,"he says.Coca-Colawill supportthe move with
aggressive advertising.Itisnothard to see why.Earlyand prolongedrainshave softeneddemand.Add
to that inflationandthe colastoryinthe recentpasthas gone haywire,puttingpressure onexecutives
to deliverandfast.

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A veteranbottlersaid thisquarter,whichcontributes40%of
the industry'sannual sales,setsgrowthmomentumforthe restof the year."The industryhasn'tseen
such a bad June inyears — thisisthe biggestmonthforthe Rs 14,000-crore aerateddrinksindustry,"he
says.
Gautham Mukkavilli,CEOat PepsiCoIndia(beverages),saysadistributionstep-up,especiallyforits
newerproducts — Pepsi Atom,TropicanaCoconut blendsand NimboozMasalaSoda— isa keyfocus
area."We have had strongvolume growthinMarch-May on the back of our IPLactivation.While the
early monsoon hasresultedinsofteningof demand,we remainfocusedondevelopingthe categoryby
concentratingonincreasingdistributionof ourproducts,"he says.
PepsiCoisalsoexperimentingwithdifferentpacksizesingeneralgrocerystoresandconsumer
promotions(price-offsorbundlingof productsatdiscounts) inmoderntrade todrive consumption.
"There'san urgencyto drive volumes...Bothfirmsare pushingdifferentprices indifferentmarkets,"said
a trade insider.
Thoughthe big impactcame fromrains,Atul Singh,deputypresidentatCoca-Cola'sPacificgroup,saidin
an interview lastweekthatthe slowingconsumersentimentisasmuch a concernfor hiscompany."I
can't control the GDP. But I can control the availabilityof products,equipment,trainingpeople,
retailers,"he said.

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Raining Discounts
For the summer,Coca-Colahasbeenbankingonpushingsalesbysellingatadiscountto large retailers
and slashingpricesof brandCoke in200-ml bottlestoRs 8. The companywill alsosell indifferentsizes.
Currently,Coca-Colaistestingtetrapacksof 100 ml for juicesatentry-level pricesof Rs6.
But are the rainsonlyto blame?There isnobettertime thannow to ask if the slumpisdue to
consumersturningawayfrom fizzydrinks tohealthieroptionslikeicedteaandjuices.
SaysleadingbrandconsultantHarishBijoor:"Inmanymarkets,fizzy drinkswithsugarhave hita glass
ceiling...Indiaseemstobe gettingthere fast."Bijoorpointsoutthat,forone,mostschoolshave stopped
stockingaerateddrinksintheircanteens,ashealthawarenessspreads."Hydrationchoicesaren'tonly
aboutaerateddrinksanymore.Tea parlours,cafessellingsmoothiesandicedteas,frozenyogurtchains
that offerconsumerscoolingchoiceson-the-move are optionsconsumershave now,"he adds."Colas
are alsocompetingwithpackagedwaterwhichishow itisin the developedmarkets."
Evenso, there isnodenyingthatrainshave hurt. What isworse,there isthe possibilityof anextended
monsoon.The meteorological departmenthaspredictedthatrainsare likelytolastuntil September.
Indiahas alreadyreceived itsheaviestrainfall in12years inJune.
The cola majorsare hopingthe rainswill recede soon."We expectthatthe early monsoon will have a
positive impactonrural demand.The upcomingfestival seasonandincreasedrural demandwill
continue todrive consumerpurchase,"saysMukkavilli.
Coca-Cola'sSinghtooisbankingon the nexttwoquarters,whichinclude the festiveseason,toride out
of the slump.
Coca Cola Market Positioning- Sustainable Community
Model
Coca Cola India projects itself as a brand which wants to grow along with the society. In its
endeavor, the company has undertaken a variety of community development projects in rural as
well as urban areas.
One such example is Project Unnati. With a seed investment of $2 million, the project aims at
training farmers and has has established about 100 demo farms in the pilot phase with plans to
train 50,000 farmers over five years.
Coca Cola India’s Parvartan Program trains local Kirana store owners in good business practices.
Similarly in another initiative, Coca cola has distributed Solar water cooler “ekocool” to female
retailers in Interior regions of Uttar Pradesh.

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According to group head Atul Singh, President and CEO, Coca-Cola India and South West Asia,
the company calls it the golden triangle which involves the Government, civil society and the
company, making it a win-win situation for all stakeholders.
Hence the Marketing Journey of Coca Cola India was viewed around developing a highly
respectable and trusted Brand In India . The focus of all marketing and branding initiatives of
the brand over the year have been to build Consumer confidence and light friendly image .
[i] http://articles.economictimes.indiatimes.com/2012-03-21/news/31220052_1_thanda-matlab-coca-
cola-coca-cola-india-limca
How Coca Cola did it in India
The aim of marketing is to know and understand the customer so well the product or service fits
him and sells itself.
Peter.F. Drucker
Market leadership, turnover, customer satisfaction etc are few of the many indicators of success
for a firm. The success is attributed if the product/service is technologically superior and of good
quality or an effective marketing, promotion and distribution strategy is in place.
Innovative marketing at its best can be understood from Coca-Cola India’s venture into
rural India in the year 2002, with an innovative promotion and marketing strategy that
differentiated it from its competitors. Atul Singh, the company’s president for India and South
West Asia in an interview said “We want every part of our portfolio to grow, so that any
consumer, on any occasion, anywhere in India, makes a choice to drink a Coca-Cola product”.
Prior to 2002, for people in villages and small towns ‘Cola’ signified ‘Pepsi-Cola’ and Coca-
Cola India was pretty much determined to break this jinx. However, the task was not easy
and there were too many issues to be addressed beforehand. Poor rural infrastructure,
consumption habits (preference of traditional cold beverages -lassi and Neembu pani), awareness
of the product, mercurial electric supply and apprehension among shopkeepers added to Coca-
Cola India’s dilemma. It started its rural campaign with strategy focused around three A’s of
marketing.
Availability
The centralized distribution system of transporting the product directly from the bottling
plants to retailers, as used in urban market was futile for rural market which resulted in
innovative “Hub and spoke” distribution system. The stock was transported from the bottling
plants to hubs and then from hubs to spokes (situated in small towns) and from spokes to
retailers who catered to the demands in rural areas. A well designed marketing strategy with
strong and efficient supply chain and logistics ensured Coca-Cola’s presence with increase in
coverage of 81,383 villages in 2001 to 1,58,342 villages in August 2003.

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Affordability
A survey by Coca-Cola in 2001 revealed that 300 ml bottle priced at Rs 10/- was not
popular with rural and semi-urban price sensitive customers. In reply to that, Coca-Cola
launched 200 ml bottles (Chota Coke) priced at Rs 5/- . Coca-Cola achieved affordability by
economies of scale. Then the next big task at hand was increasing brand awareness among the
target segment in rural areas.
Acceptability
Coca-Cola backed up its pricing and distribution by extensive marketing in the mass media
and outdoor advertising. Hoardings with painted name Coca-Cola on the compounds of the
village residence, participation in annual haats and television commercials (TVCs) on
Doordarshan were all set to mark Coke’s presence in a big way.
TV commercial for North Indian people referring Coca-Cola as ‘thanda’ was flooded
on television with Amir Khan as brand ambassador. Progressive advertising ensured easy
brand recall and top of mind awareness among customers.
Judith Evans pointed out, “Travel where you will, anywhere in the world, and you will
encounter Coca-Cola — on clothes, in signs, on packaging, in art — everywhere.” Market has
encountered lot of innovation in terms of products, packaging, equipment handling, marketing
etc, but the way in which Coca-Cola adopted its strategy for the Rural Indian market was
remarkable and it definitely established Coca-Cola as life’s one of the most delightful elixirs.

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(Differentiation of brand logo from time to time)
It was initially sold as a patent medicine for five cents, a glass at soda fountain in
the United States.(because of the belief that carbonated water was good for the
health and cure many morediseases also.)
The transformation leads to a situation, where we believe and also enjoy's it as a
drink for happiness.So dear friends, here we are discussing about the brand
charisma, how well image advertisement works for the company called “Coca-
Cola Company”. I think (Pepsi and Coke) they’ve done an excellent job (as usual)
of appealing to a wide audience with their clean, sleek, modern looking packaging
and logos.let's see the coke brand marketing in this post and "BRAND PEPSI" in
the next continuing post.
Coca cola was invented by John Pemberton.Coca-Cola got known to the world
due to the marketing strategies of Asa Candler. Well I agree, some people say it as
“American dream” in a bottle. It is very important here to understand the hidden
strategic symbol making process, which portrayed as a symbol of spirit, vitality,
creativity and optimism.
It has been successful in expressing the American spirit and also the American pop
culture in front of the world. Also strategically able to positioned itself as a
cultural icon. it is not only spreads and sells the American culture, but takes
different strategies to meet the varied taste preferences of consumers
everywhere. If coca-cola only limited on the expression of American culture for its
marketing, it’s impossible for it to become a brand that can be recognized in the
multicultural world.

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Coca-cola logo is one of my top favorite logo, because of its classicalnature both
in terms of design and the taste of the producttoo. As per some reliable media
research reports, it is one of the most recognized brand and logo all over the
world.
Yes, three core elements of its logo design made it possible to complete the visual
identity systemof coca cola brand.
What’s there inthe Name?
 Name of the brand: “Coca-Cola” (easy to speak and remember).
 Strategic standard color : associated color of the company: “ BRIGHTRED”
 Uniformcolor of employee in the company is “RED”, packaging with “RED”
color; I think as a psychologistyou too can understand the logic behind the
chosen color of the company. Fromnow onwards if you will see any red
colored thing then coke will come to your mind definitely.
 Dynamic wavy pattern design of name, you can recognizethe name in the
china letter also. That’s how the brand recognition of name works here.
Packaging expect:
 Its quality packaging is totally unique and eye catching. Whenever we see
this brand’s new productin the market, the firstthing could be a brief
discussion aboutit.
 They do integrate the packagewith beautifully designed logos and cultural
symbols and its chilled look make’s the firstattraction.
 If you will see Chinesecoke cans, it’s totally different with its look (they
include young and sizzling Chinese starts on its can cover and Chinese
traditional culture and event too). which is varied frommarket to market to
get the country in mind.

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Advertising mania:
 Coca cola advertisement always dedicated to the openness of culture.
Perfectly synchronized in such a manner that shows thebest way to
uplifting and enhancing your everyday moments of happiness.
 The first campaign of coca cola in Indian market was “JO CHAAHO HO
JAAYE”. Itwas one of the best ads ever, appealed both at a product level as
well as at an emotional level.
 The company don’t depend fully on the celebrity endorsement(with
respect to other continents) but in India while keeping the Indian celebrity
fan following in view, they have diverted their set character of global view
to cope with this market. And successfully madeit possibleto grab the
market shareas well as the target segment.
 Recently they havecampaigned with “OPEN HAPPINESS”, herecoca cola
seems to achieve at the emotional level as well as a mass appeal.
This face to face analysis led to some interesting insights, one of the most
successful brand in the world’s brand marketing, the key elements of success are
Cross-cultural communication, localization and insistent of brand value of itself.
The mode Coca-Cola took is a kind of Non-aggressive cultural integration and
successfully conquered thecross-culturalmarketing.
We will continue the discussion in our next post with brand “PEPSI”. So dear
reader’s, don’t forget to share your opinions and view on brand marketing with
us.
- See more at: http://shibakumarsethy.blogspot.in/2011/12/coca-cola-and-pepsi-image-
advertisement.html#sthash.5CUGvs5H.dpuf

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The Coca-Cola Company re-entered India through its wholly owned subsidiary, Coca-Cola India
Private Limited and re-launched Coca-Cola in 1993 after the opening up of the Indian economy
to foreign investments in 1991. Since then its operations have grown rapidly through a model
that supports bottling operations, both company owned as well as locally owned and includes
over 7,000 Indian distributors and more than 2.2 million retailers. Today, our brands are the
leading brands in most beverage segments. The Coca-Cola Company's brands in India include
Coca-Cola, Fanta Orange, Limca, Sprite, Thums Up, Burn, Kinley, Maaza, Minute Maid Pulpy
Orange, Minute Maid Nimbu Fresh and the Georgia Gold range of teas and coffees and Vitingo
(a beverage fortified with micro-nutrients).
In India, the Coca-Cola system comprises of a wholly owned subsidiary of The Coca-Cola
Company namely Coca-Cola India Pvt Ltd which manufactures and sells concentrate and
beverage bases and powdered beverage mixes, a Company-owned bottling entity, namely,
Hindustan Coca-Cola Beverages Pvt Ltd; thirteen licensed bottling partners of The Coca-Cola
Company, who are authorized to prepare, package, sell and distribute beverages under certain
specified trademarks of The Coca-Cola Company; and an extensive distribution system
comprising of our customers, distributors and retailers. Coca-Cola India Private Limited sells
concentrate and beverage bases to authorized bottlers who are authorized to use these to produce
our portfolio of beverages.These authorized bottlers independently develop local markets and
distribute beverages to grocers, small retailers, supermarkets, restaurants and numerous other
businesses. In turn, these customers make our beverages available to consumers across India.
The Coca-Cola system in India has already invested USD 2 Billion till 2011, since its re-entry
into India. The company will be investing another USD 5 Billion till the year 2020. The Coca-
Cola system in India directly employs over 25,000 people including those on contract. The
system has created indirect employment for more than 1,50,000 people in related industries
through its vast procurement, supply and distribution system. We strive to ensure that our work
environment is safe and inclusive and that there are plentiful opportunities for our people in India
and across the world.
The beverage industry is a major driver of economic growth. A National Council of Applied
Economic Research (NCAER) study on the carbonated soft-drink industry indicates that this
industry has an output multiplier effect of 2.1. This means that if one unit of output of beverage
is increased, the direct and indirect effect on the economy will be twice of that. In terms of
employment, the NCAER study notes that "an extra production of 1000 cases generates an extra
employment of 410 man days."
As a Company, our products are an integral part of the micro economy particularly in small
towns and villages, contributing to creation of jobs and growth in GDP. Coca-Cola in India is
amongst the largest domestic buyers of certain agricultural products.
As an industry which has strong backward and forward linkages, our operations catalysis growth
in demand for products like glass, plastic, refrigeration, transportation, and Industrial and
agricultural products. Our operations also lead to incremental growth for enterprises engaged in
post-production activities like merchandising, marketing and sales. In addition, we share best
practices and technological advancements with our suppliers, vendors and allied industries which
often lead to improvement in the overall standards of quality across industries.

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The Coca-Cola Company has always placed high value on good citizenship. Our basic
proposition entails that our Company's business should refresh the market; enrich the workplace;
protect and preserve the environment; and strengthen the community. We leverage our unique
strengths to actively support and respond to local needs -- be it the need for education, health,
water or nutrition. We have used our distribution network for disaster relief, our marketing
prowess to raise awareness on issues such as PET recycling, and our presence in communities to
improve access to education and potable water. The Coca-Cola India Foundation is now taking
forward in the community at large, projects and programs of social relevance to carry forward
the message of inclusive growth and development. For more details on activities of the Coca-
Cola India Foundation, please visit the website of the Coca-Cola India Foundation,
www.anandana.org.
5 Lessons from Coca Cola’s New Content
Marketing Strategy
Coca Cola has been part of popular culture for over 100 years and has been called a “Vision
Brand“.

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Its marketing and communication is purposeful and connects with its audience in a way that
makes it stand out from its competitors.
Its mission is not about selling products but to create significant positive change in the world that
makes the world a better place.
Coca Cola’s mission statement
 To refresh the world
 To inspire moments of optimism and happiness
 To create value and make a difference
Recently they have realised that their marketing strategy that has worked well for them for
decades needed to evolve and as such they are moving from “Creative Excellence” to
“Content Excellence”
Creative excellence has always been at the heart of Coca Cola’s advertising and they have
decided that content is now the key to marketing in the 21st century on a social web.

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Content for Coca Cola is is now the “Matter” and “Substance” of “Brand Engagement”
So what can we learn from Coca Cola’s new marketing strategy?
Lesson 1: Create Liquid Content
The purpose of content excellence is to create “Ideas” so contagious that they cannot be
controlled this is what is called “liquid content”.
On a social web people can easily share ideas, videos and photos on social networks such
Facebook.
So create content that begs to be shared whether that be an image, a video or an article.
Lesson 2: Ensure your Content is Linked
The next part of the equation is to ensure that these ideas create content that is innately relevant
to
 The business objectives of your company
 The brand
 Your customer interests
This is “Linked” content…. Content that is relevant and connected to the companies goals and
brand.
Ensure that the content communicates your message that is congruent with your mission and
values.
Lesson 3: Create Conversations
Coca Cola has realised that the consumer creates more stories and ideas than they do so the goal
is provoke conversations and then “Act” and “React” to those conversations 365 days of the year.
The new “Distribution Technologies” of Twitter, YouTube and Facebook provide greater
connectivity and consumer empowerment than ever before.
Don’t just publish but interact with your audience and tribe.
Lesson 4. Move onto Dynamic Story Telling
On traditional media in the past, story telling was static and a one way street. Television and
newspapers shouted at you with no means of interaction.

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Coca Cola has come the realisation that to grow their business on the social web they need to
move on from “One Way Story Telling” to “Dynamic Story Telling”
This means you need to allow the story to evolve as you interact and converse with your
customers. You need to converse with your customers in many media formats and social
networks.
Storytelling has moved on from static and synchronous to multifaceted, engaged and spreadable.
Lesson 5: Be Brave and Creative with Your Content
Creation
Part of the new Coca Cola content strategy is applying a 70/20/10 Investment principle to
creating “Liquid content“.
 70% of your content should be low risk. It pays the rent and is your bread and butter
marketing (should be easy to do and only consumes 50% of your time)
 20% of your content creation should innovate off what works.
 10% of your content marketing is high risk ideas that will be tomorrows 70% or 20%….
be prepared to fail
This provides a blueprint regarding moving on from just developing white papers, to trying some
content that is more visual, courageous and engaging in web world that has embraced
multimedia and interactive content.
The 30 Second TV Ad is no Longer King
Coca Cola has come to the conclusion that the world has moved on from the 30 second TV ad.
So has the the Old Spice brand and many other businesses who are embracing social media as
part of their marketing strategy.
We need to move towards a genuine consumer collaboration model that builds buzz and adopts a
more iterative approach to content creation.
Learning how to fuel the conversations, act and interact has never been more important.
Consumers ideas, creativity and conversations have been set free with the evolution of social
networks, learning to leverage and wrangle those conversations to increase your brand visibility
is now a vital part of your marketing.
Image Advertising: The Advertising
Strategies of Pepsi and Coca Cola in India

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Faculty Contributor: Seema Gupta, Professor
Student Contributors: K Naganand and Avneesh Singh Narang
In a crowdedproductmarket,as companiesare increasinglyfallingshortof waystodifferentiatetheir
productsfrom those of the competitors,Image Advertisingseemstobe a wayout. Thisarticle highlights
the major tenetsof Image Advertising,bylookingatthe advertisingstrategiesadoptedbyPepsiCoand
Coca Colain India.The model developedhereinseekstounderstand,amongmanyotherthings,the
evolutionof abrand,and itsrole as an integral partof a company’sbrandportfolio.
Contrary to popular belief, advertising is as much a science as it is an art. As the primary mode
of communication between a company and its prospective customer, an advertisement must
connect to the consumer, and create in his mind an attractive image of the brand. The average
consumer gets lost in the vast sea of information, and is unable to differentiate one product from
another. Notwithstanding the scientific inputs that go into designing an advertising campaign,
some campaigns make history while others fail miserably. Why?
Ads are no longer informative tools, but, as Poisez aptly points out, there has been a “shift in
attention away from the physical aspects and functional benefits of products to their symbolic
associations, expressiveness”. Marketing has ventured into the emotional, the behavioural, and
the cognitive. Today, the primary objective of the ad is to create an image. The fierce
competition between cola giants PepsiCo and The Coca Cola Company (henceforth, Coca Cola)
- and the advertisement strategies adopted by them in India to establish their respective brand
images – offers an interesting insight into Image Advertising.
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. This perception
might actually be different from what the brand actually embodies – the Brand Identity.
Advertising bridges the gap between Brand Image and Brand Image.

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Exhibit 1: Kapferer'sPrism1
There are a number of tools available to explore the identity of a brand. One such tool is
Kapferer’s Prism (Exhibit 1). 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 attributesof the brand
 Personality – the personificationof the brand
 Relationship – the relationshipbetweenthe consumerandthe brand
 Culture– the core valuesof the brand
 Reflection – the way consumerswantto be perceivedwhenusingthe brand
 Self-Image–the image thatconsumershave of themselveswhenassociatedwiththe brand
A combination of these characteristics can be used to identify what the brand ultimately stands
for. These exercises were performed on a few brands each from the stables of both PepsiCo and
Coca Cola; Exhibit 2 depicts the results of these exercises.

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Exhibit 2:Brand Proposition
Identity to Image – Evolution of Strategies
A closer look at the brand identities of each of the brands helps assess how successful their
advertising campaigns have been in creating a brand image in tune with it, while being sensitive
to the value system of the target audience.
PepsiCo’sCampaign
The analysis of Pepsi, 7 UP and Mountain Dew from the portfolio of PepsiCo puts forth some
interesting aspects about the evolution of these brands. Pepsi was one of the first products to
Indian markets after the economic reforms of 1991.
Pepsi
Pepsi began with the Yehi hai Right Choice Baby campaign, which has been one of the most
memorable campaigns of the brand, featuring celebrity endorsers such as Shah Rukh Khan
among others. The focus, as is clearly evident, is on the product with the youth as its target
segment. Yeh Dil Mange More and Yeh Pyaas Hai Badi were some of the later campaigns.
Yeh Dil Mange More campaign was again a great success, having balanced the emotional as well
as the functional appeal of the product. Featuring Sachin Tendulkar and many other leading stars
at that point of time, this was also one of the longest campaigns carried out by Pepsi. The
company however failed to maintain the trend and leverage it. Instead of moving on to a
complete emotional appeal platform, the company decided on a product based promotion
campaign. Though there is still some amount of emotional appeal to its campaigns, the principal
focus is on the product - it being a preferred thirst quencher.
7 UP
In its early days, 7 UP inherited the global Fido-Dido campaign for promotion in India as well.
However, with changing times and a contextual difference in India, a much more focused
campaign was required. This led to the Keep It Cool campaign, which was targeted primarily at
the youth and the teenager segment. Hence the appeal was at a more subtle, emotional level,

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which was meant to convey a potential lifestyle statement. The recent campaign of Bheja Fry
essentially leverages on the same emotional appeal where the Keep It Cool campaign has been
somewhat tweaked to have a local appeal.
MountainDew
Mountain Dew is the latest entrant in the product portfolio. This product too has the appeal of
being the drink of a daredevil or the No Fear personality. The campaigns launched include Do
the Dew and Dar Ke Aagey Jeet Hai. The initial campaign was unclear in terms of its appeal and
the target segment, as a result of which the brand suffered some jolts in the beginning. However,
the latest campaign captures the No Fear or the Macho Man image. In this sense, the brand
directly competes with Thums Up from the Coca Cola Stable
CocaCola’sCampaign
The Coca Cola campaign in India, however, has been different from that of Pepsi, even though
they both share similar product traits. Coca Cola had a presence in India before 1977, but was
subsequently forced to exit the Indian market. When the company returned to India post
liberalization, it came up with an innovative communication and advertising strategy. Coca Cola
has essentially been following the principle of differentiation.
Coca Cola
Jo Chaaho Ho Jaaye, Coca Cola Enjoy was one of the company’s first campaigns in India. It
was remarkably well executed, and appealed both at a product level as well as at an emotional
level. These ads featured celebrities such as Hrithik Roshan and Aishwarya Rai. The target
segment for Coca Cola in its initial days was the youth segment and this campaign clearly
connected well with the segment. However, the next advertising campaign of Thanda Matlab
Coca Cola was launched with an objective to have a mass appeal. The campaign leveraged the
product platform rather than the emotional platform that it had established earlier.
It is however, important to note here that Coca Cola made some exceptions for India. The
company has similar marketing strategies across geographies and usually doesn’t depend on
celebrity endorsements. But given the great fan-following, and in adapting to the Indian context,
the company had to initially deviate from its set charter. However with the current campaign of
Open Happiness, Coca Cola seems to have achieved both an emotional as well as a mass appeal.
There is a very natural connect with the target segment, that of celebrating every day, and
sharing small moments of joy with our loved ones, irrespective of any barriers.
Sprite
Sprite - the other brand from the Coca Cola stable – began its journey with the campaign titled
All Taste No Gyaan. This appealed greatly to the youth who don’t like to be preached and relish
their sense of ownership and decision making. Sprite has never depended on celebrity
endorsements as a way to gain brand recognition or consumer recall. The ads are designed to be
very witty, and generally connect very well with the target audience by capturing every day

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moments. Seedhi Baat No Bakwaas - its next campaign – instantly connected with the target
audience by coming across as a brand that was different from the other, one that focused on the
individuality of the consumer. The emotional appeal is much stronger and shows a clear sign of
maturity of the campaign.
Proposed Framework
This analysis brought to light the roles played by each brand in the company’s overall
advertising strategy. Not every brand took the centre-stage: some were the core brands, while
others were used as defensive shields and offensive attackers to fight off competition. The
following framework helps classify different brands based on the roles each of them plays:
 The Core Brand – the flagshipbrandof the company
 The CoverBrand – acts as a cushionto the core brand;soaksup competition
 The Stand-AloneBrand –neithercore norcover;independent
Brand Portfolio Analysis
The brands in the portfolio of Pepsi and Coca Cola play an important role in terms of the overall
impact they have on brand recall and consumer loyalty. The framework developed herein
attempts to identify the importance of each brand in the portfolio and the role it plays.
In the case of The Coca Cola Company, Coca Cola is the core brand or the flagship brand. The
focus, therefore, is on capturing the maximum value that the brand can generate. In this case,
Sprite plays the role of a cover brand (Exhibit 3). Any spoof or threat on Coca Cola is countered
by Sprite. However, off late, Sprite is moving up the ladder to become a core brand in the
portfolio. The importance of a cover brand is that it allows for maintaining a planned advertising
strategy. This builds brand value and creates no confusion about brand proposition.
Exhibit 3: Brand Roles

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In case of PepsiCo, Pepsi is the core brand or the flagship brand. However, Mountain Dew and 7
UP have played the role of standalone brands. Therefore, Pepsi has to constantly respond to
spoofs and threats from other brands by tweaking or changing its planned advertising strategy.
This strategy may lead to confusion in minds of the consumer about the brand proposition. Such
a situation can be critical with regard to the connection a brand establishes with its target
consumer segment. Recent trend suggests at Mountain Dew taking up the role of a cover brand
in the PepsiCo brand portfolio.
Conclusion
This analysis led to some interesting insights. For a start, the image of the brand must be
consistent not only with its identity, but with the value system of the target segment. It is, in fact,
the complexity of the value system of the target segment of Pepsi and Coca Cola that allows for
such a contrast in advertising styles. Furthermore, the race for prime position involves a well
thought out strategy with clear cut roles for each of the brands in a portfolio. Advertising is
indeed both an art and a science. The shift from information to image displays the rich potential
of the advertising space. The exhilarating pace of evolution from the simple creative to the
strategic takes your breath away. Definitely not for the faint hearted!
Keywords
Marketing, Consumer Goods, Advertising, Pepsi, Coca Cola
Authors
Seema Gupta is a Professor in the Marketing Area at IIM Bangalore. She holds a Ph.D. from
Mohanlal Sukhadia University, Udaipur, India. She can be reached at seemag@iimb.ernet.in
K Naganand (PGP 2008-10) holds a B. Tech. from National Institute of Technology, Karnataka,
Surathkal, and can be reached at k.naganand08@iimb.ernet.in
Avneesh Singh Narang (PGP 2008-10) holds a B. A. (Hons) Degree in Economics from St.
Stephen’s College, Delhi, and can be reached at avneesh.snarang08@iimb.ernet.in
References
1Kapferer, J.-N. (1992), Strategic Brand Management, Free Press, New York, NY, pp38
1King, S. (1991), " Brand-building in the 1990s", Journal of Consumer Marketing, Vol. 8 No.4,
pp.43-52; Parker, K. (1991), " Sponsorship – the research contribution", European Journal of
Marketing, Vol. 25 No.11 , pp.22-30; Wells, B. (1989), " Branding, (part II), order out of chaos",
Marketing and Media Decisions, Vol. 24 No.6, pp. 99-100
1Aaker, Batra and Myers, “Advertising Management”, Fifth Edition, Prentice Hall of India

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1Baker, Erdogan and Tagg, 2001, “Selecting Celebrity Endorsers: The Practitioner’s
Perspective”, Journal of Advertising Research, Vol. 41, No. 3, pp 39 -58
• Aim: Be known by the U.S. society, specific to men and woman, not children neither
young people.
• Marketing and Advertising Strategies
• Marketing Mix
• Product: Coca Cola
• Price: 0.05 in 1900
• Place: The United States
• Promotion:
• Timing: 5 Years
Strengths
• The productsthat thiscompanyproducesare hardto copy
• These productshave addedvalue
• The qualityof the productsreacheshigheststandards
• Isa leaderinthe industry
• Isknowninall the world
Weaknesses
• The marketingisa keyfor successforthem
• The maincompetitorsare tryingto beatthemwithmassive advertisingcampaigns
Opportunities
• Withitspromotions,theycouldsell more cokesthananyothercompanies
• Theysell millionscoke perdayinthe whole world,andtheycouldreach consumers
more easily.
Threats

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• Theywantto beatother competitors
• Theyneedtoimprove itsmarketingstrategies
• Theyhave to improve theirpromotions
• Serve customerswithcreativityandconsistencytogenerate growthacrossall channels

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