PROJECT - Final (2).docx

8/12/2019 PROJECT - Final (2).docx

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1. Executive Summary:

For the past century Coca-Cola has had the distinct privilege of operating as one of the premier organizations ofthe beverages industry. Through consistent market re-alignment, Coca-Cola has consistently found solutions to

bridge and mitigate the gap between that which consumers yearn for and those things that are readily availableto them. Having found a way to fill this void, Coca-Cola has managed to position its bran amongst those fewelite who hold a special impenetrable bond with their consumers. This is evidenced through their higher market

share. Inherent in all products and services is the concept of birth, growth, maturation and eventual demise.

MissionOur Road map starts with our mission, which is enduring. It declares our purpose as a Company and serves asthe standard against which we weigh our actions and decisions.To refresh the world...To inspire moments of optimism and happiness...To create value and make a difference

VisionOur vision serves as the framework for our Road map and guides every aspect of our business by describingwhat we need to accomplish in order to continue achieving sustainable, quality growth.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 peoples desiresand needsPartners: Nurture a winning network of customers and suppliers, together we create mutual, enduring valuePlanet: Be a responsible citizen that makes a difference by helping build and support sustainable communitiesProfit: Maximize long-term return to share owners while being mindful of our overall responsibilitiesProductivity: Be a highly effective, lean and fast-moving organization

However organizations often times create and launch new products and/or services that ensure theorganizations long term viability in themarketplace, as such Coca-Cola Company has taken the decision tocreate, launch and establish a new brand known as Loca Lime. The purpose for diversification is to ensureconsumer relevancy and the never ending pursuit of achieving growth targets. Loca Limeembodies the re-birthmarketing strategy for Coca-Cola in the following ways:

To formulate and construct an image that associates Loca Limewith a healthier, more positive way oflife

To use the residual benefits of Loca Lime(i.e. health factor, sports/athletes) to expand and broadencoca-colas brand recognition

Coca cola Company can make use of a first movers advantage bybeing the first company among itscompeting firms to launch a new product line with a special emphasis on health.

The SWOT analysis of the Coca-Cola Company and its current market situation are described in this report,moreover in this report the marketing strategy required to successfully launch the new product is discussed. Thegoals of launching the new product and the issues that the company might face in achieving its set out targetsare also discussed. Additionally the exact method in which the company will go about launching and monitoringthe product is also deliberated upon. Furthermore this report includes the focus on the cost side and the side thatdeals with price setting as well, along with this the companys short andlong term objectives regarding the

revenue generation from the product are also discoursed. Loca Lime is a fruit drink with flavours of lime andlemon.Hence we can see a thoroughly laid out plan in this report which will be used by the Coca-Cola Company tomake the launch of the juice Loca Limea success.


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2. Current Market Situation:

Coca-Cola Enterprises was established in 1986. Each of its franchises has a strong heritage in the traditions ofCoca-Cola that is the basis for this Company. In 1986, The Coca-Cola Company merged some of its company-owned operations with two large ownership groups that were for sale, the John T. Lupton franchises and BCIHolding Corporation's bottling holdings, to form Coca-Cola Enterprises Inc. In December 1991, a merger

between Coca-Cola Enterprises and the Johnston Coca-Cola Bottling Group, Inc. (Johnston) created a larger,

stronger company, again helping accelerate bottler consolidation. As part of the merger, the senior managementteam of Johnston assumed responsibility for managing the Company, and began a dramatic, successfulrestructuring in 1992. Coca-Cola India Private Limited and re-launched Coca-Cola in 1993 after the opening upof the Indian economy to foreign investments in 1991. Since then its operations have grown rapidly through amodel that supports bottling operations, both company owned as well as locally owned and includes over 7,000Indian distributors and more than 1.3 million retailers. Today, our brands are the leading brands in most

beverage segments. The Coca-Cola Companys brands in India include Coca-Cola, Fanta Orange, Fanta Apple,Limca, Sprite, Thums Up, Burn, Kinley, Maaza, Maaza Milky Delite, Minute Maid Pulpy Orange, Minute Maid

Nimbu Fresh and Nestea Iced tea, the Georgia Gold range of teas and coffees and Vitingo (a beverage fortifiedwith micro-nutrients).The Coca Cola Company is one of the largest manufacturers, distributors and marketers ofnon-alcoholic beverage concentrates and syrups in the world and has the brand equity of approximately 48 to 50

billion US dollars.The Coca Cola Company India is about to enter the fruit juice market in India mainly dominated by Nestle

which holds the highest share in the juice market. The processed food and beverages industry isconsidered to beone of the largest industrial sectors and accounts for approximately 27% of total production and 16% of totalemployment in the manufacturing sector. The total value of production is over Rs. 46billion. The Company willlaunch a fruit juice under the name Loca Limewhich is a lemon-flavoured juice. The decision to make a lemonflavoured juice was made after a market research that showed the preference of people for the lemon taste

(Figures according to our research)

3. Market Description:

Being the largest company in the soft drink industry, Coca Cola enjoys the highest market share and controlsabout 59% of the world market. The target market for Coca-Cola is all consumers worldwide. Cokescommercials basically focus on younger generations, because they want to represent Coke with the youth andenergy but they also consider older people which they then take as a co-market. According to theCoca-ColaCompanyCoca-Cola is the beverage that provides deep-down refreshment for the mind, body and spirit because only ice-cold Coca-Cola makes a moment more special by combining the unique Coca-Cola sensation with whats realand genuine providing a source of enjoyment in everyday life.

Coca-Cola consumers can choose between the products that can be divided into soft drinks, juices, sports drinksand mineral water. The market of the company is geographically vast and it is being controlled with enormoussuccess. Carbonated soft drinks are the largest growth segment within the non-alcoholic ready-to-drink beveragecategory measured by volume, which is why Coca Cola is focusing on expanding its product portfolio becausethat is the key to future success. The financial health and success of Coca Colas bottling partners is a criticalcomponent of Coca Colas ability to build and deliver leading brands.The Asian market encompasses approximately 3.2 billion customers, and on average they enjoy two servings oftheir products each month. Through an intense focus on innovation and diversification, Coca-Cola has achievedsignificant volume growth in the past years. In addition to maintaining the popularity of the core brands theCoca-Cola Company is building an exciting portfolio of beverage brands in Asia. Among the Asian countries,Japan has the highest percentage of around 42% followed closely by Pakistan, India and Bangladesh where theaverage consumption exceeds day by day. Coca-Cola has a 35% market share in India while its competitor Pepsidominates with 65%.


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4. Brands of Coca-Cola

The product portfolio of Coca-Cola comprises of a vast number of brands which are currently being soldthroughout the world. In addition to their staple carbonated drinks Coca-Cola has dabbed into fruit juices,sports juices and mineral water markets as well worldwide. The major brands of Coca-Cola sold in Indiainclude:

a) Coca-Colab) Spritec) Fantad) Minute Maide) Kinley Water

5. Competitor Review:

Coca-Colas major competitor is Pepsi Co. that occupies 65% of the Indian soft-drink market. PepsiCo enteredIndia in 1989 and in a short period, has grown into one of the largest and fastest growing food and beverage

businesses in the country. PepsiCo Indias growth has been guided by PepsiCos global vision of Performance

with Purpose.They currently have a product portfolio that competes with Coca-Cola on every level. Theproducts of Pepsi sold throughout India include:

a) Pepsib) Mirindac) 7UPd) Mountain Dewe) Aquafina

Between Pepsi and Coca-Cola, the majority of the market targeted doesnt care what they are going to have. Inother words, they dontcare whether its Pepsi or Coke. So the major difference between themarket shares can

be associated mainly with the availability of the soft-drinks in the market. In the absence of Coca-Cola, Pepsiwill be purchased more and vice versa. For this reason Coca-Cola has provided its own coolers and freezers inthe market to the retailers in order to maximise their sales. Moreover, they provide infrastructure free of cost sothat Coca-Cola can be chilled prior to purchase. Their salesmen and mechanics also visit regularly in order tomake sure that the infrastructure is in proper condition. Threats posed by Pepsi are also price-related. When the

price goes beyond a certain level it effects the consumption of the soft drinks. At higher prices, consumers aremore likely to substitute Pepsi with Coke and vice versa.In short, it can all be traced down to customersperception. In the last few years, when Pepsi has beendominating the market, Coca-Cola has made an aggressive comeback mainly by brand differentiation, effectiveadvertising and attractive brand initiatives. Moreover, Coca-Cola is an Us brand because they believe intogetherness; people as well as communities, and this is the nature they target in India. Pepsi on the other handis a Me brand as theyemphasise of personal development and individual struggle which is clearly emphasisedthrough their advertising. All through the 1950s to date ,Coca-Cola occupied a very dominant position in thesoft-drink market, however slowly over the passage of time Pepsi had risen up to go into competition head-to-head by discounts in the distribution outlets, targeting younger consumers with Pepsi Generation, motivatingits bottlers and competing on package size and advertising.

Other competitors:a) Dr. Pepper Snapple Group

b) Liptonc) Tropicanad) Nestle

(Figures as per research)
http://en.wikipedia.org/wiki/Nestlehttp://en.wikipedia.org/wiki/Nestle


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6. Macro Environment of Pepsi and Coca-Cola

Demographic ForcesAge: The potential customers of Coke and Pepsi would be of age group of 14-30 years. Income: As for

the income levels, Coke and Pepsi target customers from the middle class to the upper class.

Economic ForcesWhen the economy is in recession, the real incomes fall and the expenses are high so the consumersmove towards the product that they can afford. During this time, the pricing strategies of Pepsi andCoke would have a very major influence on the overall sales volume

Natural ForcesDuring a natural disaster, like an earthquake for instance, the markets or suppliers might encountershortages in the supply which will affect the sales of soft-drinks.

Technological ForcesThere is a huge amount of investment coming from the government to develop the infrastructure and to

exploit the market opportunities to create new products in order to revive the market that might havereached the maturity level. This will majorly affect the sales of the soft-drinks as a greater product

portfolio will definitely mean a larger customer base and subsequently higher revenues.

Political and LegalDue to the presence of such a huge market for both Coca-Cola and Pepsi foreign investors havecontinued expanding their area of operation. Moreover, the investment is crucial for the sound health ofthe economy so the government makes a regular effort to improve business and trade relations with USand Asia.

Cultural ForcesEvery country has a different culture. In India, due to the Hindu Cultural values people prefer to use

products made from ingredients acceptable in the Society. As a result, Coke and Pepsi have to be

vigilant to use only ingredients used in Indian subcontinent in order to avoid bad publicity andcontroversies.

7. Distribution Network

The Coca-Cola Company offers their product (in our case Loca Lime)in different bottle sizes whichinclude:

a) SSRBStandard size returnable bottleb) LRBLitre returnable bottlec) NRBNo return Bottlesd) PET 1 - 1.5 Litre plastic bottlese) CansTin pack 330 ml Coca-Cola products are also available in different packing:a) 24 regular bottle shell

b) 6 bottle pack for 1.5 petsc) 12 bottles in a pack for disposable bottlesd) 24 cans in one pack


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Coca-Cola indulges in two types of selling:a) Direct SellingIn direct selling they supply their products in the shops by using their own transport.

In this type of selling the Coca-Cola Company has more profit margins.

b) Indirect SellingIn indirect selling the Coca-Cola Company has their whole-sellers and agencies tocover the areas that they wish to target. As it is literally impossible to supply the products to theconsumer themselves due to the sheer volume of the demand, hence the company understands thatmarketing through suppliers is crucial for the availability of Coca-Cola products.

8. Permits

- Registration Mandates under the FDA Food Safety Modernization ActSection 415(a)(2) of the FD&C Act, as amended by section 102 of FSMA, provides in relevant part that aregistrant must submit a registration to FDA containing certain information and when determined necessary byFDA through guidance, the general food category (as identified in 21 CFR 170. 3 or any other food categoriesas determined appropriate by FDA, including by guidance) of any food manufactured, processed, packed, orheld at such facility. FDA believes that the following additional food product categories are necessary andappropriate for food facility registration and has included such categories as mandatory fields in the food facility

registration form.Carbonated Soft DrinksThe Food and Drug Administration (FDA) ensures that carbonated soft drinks are safe, sanitary, and honestlylabeled. In fact, FDA has established Current Good Manufacturing Practices (CGMPs) for carbonated softdrinks, which describe the basic steps manufacturers and distributors, must follow to make sure carbonated softdrinks are safe.

- Additives and Contact SubstancesOnly food and color additives that are determined to be safe, based on scientific information available to FDA,may be used in carbonated soft drinks. For example, this might include additives such as citric acid as aflavoring or a preservative or caramel colouring. Food contact substancesthe materials the carbonated softdrink comes in contact with, such as the bottles and cans in which it is sold; also are strictly regulated forsafety.

- Nutrition LabelingThe Nutrition Facts Panel on carbonated soft drinks typically includes the serving size and the nutrients

provided in a serving: calories, total fat, sodium, total carbohydrate, sugars (if present), and protein. If a nutrientcontent claim, such as Very Low Sodium, appears on the label, the manufacturer must also add the statement

Not a significant source of ________, with the blank filled in by the names of nutrients that are present only atinsignificant levels.

- Warning LabelsSince 1999, the FDA has required juice manufacturers to place warning information on product containers aboutthe health risks of drinking untreated juice or cider. Only a small portion of all fruit and vegetable juices sold insupermarkets is not treated to kill harmful bacteria. These products are required to carry the following warninglabel:

Example:

WARNING:This product has not been pasteurized and therefore may contain harmful bacteria that can causeserious illness in children, the elderly, and persons with weakened immune systems.

FDA does not require warning labels for juice or cider that is fresh-squeezed and sold by the glass, such as atapple orchards, at farm markets, at roadside stands, or in some juice bars. If you're unsure if a glass of juice orcider has been treated, be sure to ask.


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9. SWOT Analysis

Strength of companyCoca cola is one of the most popular brands in the world. Sold in over 200countries and offering around 400

brands coca cola is one of the most renowned companies. The famous products that coca cola offer are Cokeclassic, Fanta, Sprite etc. Coca Colas popularity is strength for the company. When launching new products

Coca cola can use its popularity to sell its product. The new product, in our case, Loca Limecan easilyestablish itself in the market. Some people prefer coca cola products and buy it so that they can be a part of theCoca Cola family.Another major strength of the Coca-Cola Company is its brand loyalty. Coca cola is right now earning 80% ofits profit by its 20% loyal customer for whom coke is not a beverage, its an addiction.Coca-Cola is providing adiverse range of products conquering almost all the market segments for example Coke classic for the youth,earth and sky (tea) the middle aged and older people. Beverages like Powerade are available for athletes. Thisway they are able to capture a lot of interest from different types of customers. Coca cola has majority of themarket share in the soft drink industry making them the major players in the beverage industry and giving thema control over the market; winning automatic preference of the consumers through its reputation Coca-Cola hasimproved its revenues generously. Improving its quality and winning more of the market share. According toBBCCoca-Cola has reported strong second-quarterprofits, beating market expectations, thanks to risinginternational sales. With increasing revenues yearly Coca-Cola now can invest more in Research and Design

and help the company in better performance and will lead to further innovations. Coca-Colas headquarters arein Atlanta USA but all the management is handed to the country itself. Like in India Coca-Cola India PvtLtd, through this decentralized channel the company is ensuring a smooth and efficient flow of the processwhich increases the performance of the company. We can see around us that almost every store has a Coca Colarefrigerator. This means that the product is highly available in the market. This has a huge impact bothfinancially for the firm and psychologically over the customers mind.

Coca-Colas Promotion Initiatives:According to USAtoday.com Coca Cola teamed up with Santa Clause and donated$120,000 to Toys forTots.Cola life an independent NGO isusing Coca colasestablished distribution channels (franchiseddistribution channel) to provide simplest medicines at the remotest areas. This way Coca Cola once again isstrengthening its image in the eyes of the world. Moreover Coca-Cola has amazingly marketed its product with

eye catchy commercials and celebrated brand ambassadors. Currently Sachin Tendulkar is their brandambassador and for the youth of India he is someone that they idolize, endorsements like these can have a majorrole in strengthening Coca-Cola position in the mind of the customer. Seeing their favourite celebrities drinkingcoke, the fans are most definitely influenced.

Coke Studio one of the most watched shows in India is basically Coca-Colasunique way of marketing theirproduct. A show adored by a huge number of music lovers. This helps in establishing brand loyalty, indirectlyleading to higher sales. Furthermore Coca-Cola was a sponsor for the FIFA 10 world cup as well. Additionallywe know that English Football is the most watched football league all over the world. Coca cola has been amajor sponsor of football over there and the first division league is known as Coca Cola Championship. Thisway Coca-Cola has been able to drive its sales and it has been able to create positive publicity. It also hasshaped consumers attitude towards the brand. All of these unique ways of promotion of Coca-Cola are a majorstrength for the Company with regard to the competition it faces.

Strengths of the productLoca Lime is the name of the product which is a Lime based drink with a uniquely refreshing taste; the productis designed with a special focus on how it can contribute positively towards the health of the consumers. This

juice if properly marketed would be something that will be demanded by people of all age and genderthroughout the country, since lemon/lime is a flavour cherished all around the country, especially in summers.Secondly, the one litter bottle would be easily crushable. This way it would not be environmentally threatening.The design has already been used in Japan for another product called LOHAS and it has proved to be reallysuccessful. The bottle is very light and it is 40% less in weight than regular PET packaging.
http://www.bbc.co.uk/news/business-10716077http://www.bbc.co.uk/news/business-10716077http://www.colalife.org/about/colalife-about/http://www.treehugger.com/files/2010/12/using-coke-distribution-networks-medicine-rural-villages.phphttp://www.treehugger.com/files/2010/12/using-coke-distribution-networks-medicine-rural-villages.phphttp://www.treehugger.com/files/2010/12/using-coke-distribution-networks-medicine-rural-villages.phphttp://www.treehugger.com/files/2010/12/using-coke-distribution-networks-medicine-rural-villages.phphttp://www.treehugger.com/files/2010/12/using-coke-distribution-networks-medicine-rural-villages.phphttp://www.colalife.org/about/colalife-about/http://www.bbc.co.uk/news/business-10716077http://www.bbc.co.uk/news/business-10716077http://www.bbc.co.uk/news/business-10716077


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WeaknessesIn the past decades coca cola has fought a lot of lawsuits defaming the image of the company. Allegations like

Discrimination Drinks containing benzene (used in the production of drugs) Presence of Pesticides in Coke

These cases did lead to a minute fall in the sales of coca cola and was a minor blow to the company. Coca colahas a strong competition from Pepsi Co. Products like Pepsi, 7-up, Slice are direct substitutes of Coke Classic,Sprite and Minute Maid. In India Pepsicosbrand ambassador is Dhoni the Indian cricket team captain. Cricketis the most played game and through generations Pepsi has driven its marketing campaigns by choosing brandambassadors like him and via this Pepsi has been able to capture a larger portion of the market than Coca-Cola.Flop brands are another general weakness of the coca cola company. Heavy R&D cost which was not repaid byrevenues led to loss. Weak products or brands are the weakness of the company. These products are the Dogs inthe BCG matrix. These brands are actually supported by either cash cows or stars like Coke Classic and DietCoke. These brands failed because of improper test marketing and poor product development. Brands like The

New Coke and Coke black are included on the top of the list. These products indirectly decrease theprofit asthey increase the operating cost of the company itself.

OpportunitiesCoca cola has been sponsoring events which help in brand positioning in the minds of consumer. UpcomingCricket Series is an opportunity that the company can capitalize upon which may help the company instrengthening its customer base and increasing its brand loyalty. Plus making an Indian sportsman a brandambassador would be really advantageous as it will increase Coca Colas sales. How will this help? WellPepsiCo has already used this idea and generated humongous amount of revenues. Sachin Tendulkar, ShahidAfridi etc have been Pepsis brand ambassador. People inIndia are passionate about their sports and they idolizethe national heroes of all the sports.Coca cola is sold over 200 countries but still there are third world countries where coca cola is not available.

The company should start capturing these markets and spread its distribution worldwide. Coca cola can expandits product line by product development. This can be done by buying a restaurant or buying small players in theindustry.

ThreatsCoca-Colas major threat is Pepsi Co. They are the major competitors and every brand of coca cola is beingcompeted by a product of Pepsi co.

Pepsi co. although has been beaten at times but they still pose a threat to Coca-Cola company because they arethe perfect substitutes of each other. A decrease in the GDP of the country means lower purchasing power. Thiswill lead to a decrease in the sales of coca cola. People have become more health conscious and this may tend todecrease the sales of the company. Lower Exchange Rate may lead to lower profits. Change in technology is athreat. With this change Industry practices changes as well the company has to upgrade its technology as well.Coca Cola had also suffered before when American products were boycotted by Muslim around the globe

because of the Iraq war. This meant that coke was also boycotted. This happened in2008.This is a threat tocompany as these events could repeat once again and could lessen the companys sales.
http://www.opednews.com/articles/genera_sherwood_080121_boycotts_of_u_s__bra.htmhttp://www.opednews.com/articles/genera_sherwood_080121_boycotts_of_u_s__bra.htm


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10. PEST Analysis

Political Variables:Non alcoholic beverages fall within the food category under the FDA.The government plays a role within the operation of manufacturing these products in terms of regulations. There

are potential fines setby the government on companies if they do not meet a standard of laws. The following aresome of the factors that could cause Coca-Cola company's actual results to differ materially from the expectedresults described in their underlying company's forward statement:-Changes in laws and regulations, including changes in accounting standards, taxation requirements, (including

tax rate changes, new tax laws and revised tax law interpretations) and environmental laws in domestic orforeign jurisdictions.Changes in the non alcoholic business environment. These include, without limitation, competitive product and

pricing pressures and their ability to gain or maintain share of sales in the global market as are sul to faction bycompetitors.Political conditions, especially in international markets, including civil unrest, government changes andrestrictions on the ability to transfer capital across borders. Political structure and legal considerations also haveimpinged on Coco-ColaCompanys strategies.There are very little chances of political variables to effect the Coca-Colasproduction and selling behavior.

In the political variables most of the things are related to Governmental activities. So, they dont leave anygood or bad impact in the Industry of Coca-Cola and there are some exceptional things like:environmentalprotection laws they somewhat effect the industry of Coca-Cola. From last few yearsGovernment is really very much conscious about the environment. But after making theadjustments in plantsand applying the proper way of wastage the chances of being affected by the protection laws are going to be

diminished. So it impact good for the Coca-Colas reputation.

Economical VariablesIt could be seen that economical variableshighly affects the Coca Colas resolution. Economic factors arethose actors who effect the production of any industry. So, Coca-Cola is not the out of question. If the economicconditions of the country is not that strong and Coca-Cola increases its Price in this situation. Then it wouldimpact highly negative. And inflation is also not a good position for any countrys production point of view. It

also impacts highly negative in Coca-Colas production and as a country concerned like India where the

unemployment rate is very much high.The Loca Lime system in India would employ 1,800 people.

Social VariablesThe CocaCola Company has always believed that education is a powerful force inimproving the quality of lifeand creating opportunity for people and their families around the world. The Coca-Cola Company is committedto helping people make their dreams come true. All over the world, we are involved in innovative programs thatgive hard-working, Knowledge-hungry students books, supplies, places to study and scholarships. Coca-Colawill be donating the 10% profits from Loca Lime in the year to a NGO.

A large part or our relationship with the world around us is our relationship with the physical world. While wehave always sought to be sensitive to the environment, we must use our significant resources and capabilities to

provide active leadership on environmental issues, particularly those relevant to our business. We want the

world we share to be clean and beautiful. We are always innovating to bring you different delicious beverages.This samespirit of innovation comes alive in our environment programs. Werecommitted topreserving ourenvironment, from use of more than $ 2 billion (U.S) a year in recycling content and suppliers, andenvironmentManagement initiatives, down to very local neighborhood collection and beautificationefforts. LocaLime would bottles will be made of Glass for re-usable purpose and plastic bottles will be made of eco-friendly

plastics.


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Technological VariablesOf course business innovation leaves highly good impacts in the business of Coca-Cola. As Coca-Cola use moreadvance technology in its production process. It will result in increment of their production throughout thecountry. As far as the governmental hindrancesare concerned the impacts highly bad on Coca-Colas production. Every year when budget in announcedgovernment taxes rates always shoot up. This approach of government decreases the profit margin of Coca-

Cola. As the Coca-Cola helping in promotingpaperlessenvironmentit impacts good, because computers are the basic need of any person now a days andthough its a big industry so it is promoting the trend of paperless environment. And it is giving the way of other

industries to come to new technologies and into a new world of business. Through computers Coca-Cola canincrease the efficiency of its business and can have upto-date data about their productions.

11. Objectives:

We are launching Loca Limewith our minds set around four core criteria:

1) We want to build a healthier image of the brand coca cola among the local population, through the launch ofour health-friendly lime juice.2) To get an even wider brand recognition and acceptance among the people of India.3) To become a recognized brand in the juice market among the masses.

4) Expand into numerous flavours in the long term with the product line trademark as Loca a name that wouldportray the healthier side of the Coca-Cola company (loca apple, loca mango etc., similar to minute-maid)

Building a Healthier Image:Coca-Cola is a brand that especially in India has developed its name through its more popular fizzy drinks suchas the coke itself, Fanta and Sprite. As we found out through our research a lot of people are concerned abouttheir health and hence are sceptical of the products launched by the brand Coca-Cola hence building a healthier

brand image is very essential. Most of the popularity of the company has come due to the superior taste andquality of the companys products; however the overall unhealthy image of fizzy drinks has developed coca colaas a possible health risk in the mind of the health conscious people. Hence one of the objectives of launching a

juice like Loca Limewould be to promote an image of the brand that appeals to the general public assomething that is refreshing as well as healthy. Through the promotion of the image of the brand we can hope toachieve an even higher market share. A healthier image of the brand would contribute towards the increase in

brand loyalty of the Coca-Cola brand in general.

Wider Brand Recognition:As mentioned earlier, In India most of the people associate the brand name Coca-Cola to the drink Coca-Colaitself, since most of them are unaware of the huge number of products that the company actually has all aroundthe world. With Loca Limewe hope to add a dimension of diversity when positioning our brand in the mind ofour consumers. This diversity will help add to the how people can relate to the brand Coca-Cola. The ultimategoal would be to come to a point where people at the top of their head would have Coca-Cola as a leading namein the fizzy drinks industry as well as a leading name in the juice industry. Moreover the healthier image and theincreased brand loyalty will increase the

brand acceptance among the masses. The definitive objective of having ahealthy juice representing the brandwould be to change how people look at the products of the company Coca-Cola and the brand as a whole, herechange would mean to improve the image in the mind of the consumers, moreover getting a country wide

acceptance would be one of the primary goals.

Capturing the juice market:The third primary objective of launching Loca Lime would be to emerge as a leading name in the juice industryin India. The juice industry in India already has numerous quality brands competing for market share hence forCoca-Cola to make it big in the juice industry would have to come up with something that is of supreme qualityand has something unique to offer, and thats exactly what we hope to provide with Loca Lime. Coca-Colaalthough will have the advantage of having a widely accepted brand name hence capturingthe market with a new product would be comparatively easier however we cannot rely totally on the brand nameto do the trick for us , hence offering something new would be absolutely vital for us to be able achieve ourgoal. Hence providing something new would be our focal point, moreover in order to attract the maximumnumber of people to prefer Loca Limeover their currentjuice company well have to do some extensivemarketing while being smart about it as well.


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Expanding the ProductAdditionally in the long term the plan would be to expand this juice product line by introducing new flavours, asthis a necessary step in order to stay competitive in a market with such a high sense of competition. This productline would be different from the other juices launched by Coca-Cola in the sense that the main focus in this

product line is on promoting a healthier image of the brand in India.

Issues:Achieving the above mentioned objectives wont be easy and the main issues weare expected to face in thepursuit of our goals would be as follows:1) Getting people to switch from their current preferred juice company wouldneed either a unique selling proposition (USP) or some extensivemarketing.2) Changing a brand image takes time hence in the short run our product might not be as appealing to the healthconscious segment.3) The initial lack of diversified flavours could be a hindrance in capturing a big market share.

Giving people a USPPeople generally want to avoid switching from something that they like,something that they're used to, something that is within their range; hence getting people to switch to a new

product in general isnt all that easy. Andwithout a good enough reason people wont switch from their current

juice of choice. We can provide that reason but for that we need to think out of the box, both in terms of thequality of our product and also in terms of the marketing strategy of the product. We can provide people with aUSP that will surely get them to switch to our product. But providing a USP isnt all that easy, especially for acommodity like our juice. However this USP can be provided by maybe giving the people a price that is withinthe range of most of the general public, or through formulating a unique taste for a lemon juice, which isnt allthat realistic since taste is a very subjective term. Plus, well be providing our product in tetra packs, fountain

bottles, disposable glasses and glass bottles etc. which the other brands fail to provide the customers with.Nevertheless what we do have control over is how we choose to promote our product, and that exactly could beour USP, marketing our product in a way that we can attract the maximum number of people would be how wewill get the people to actually switch to Loca Lime. Moreover the people who are already a part of our loyalcustomer base would be easier to persuade since for them it would be a matter of trying the new productlaunched by their trusted brand.

The Time FactorAdditionally something else that can become a concern for the Coca-ColaCompanys objectives for launchingthis product would be the fact that building upon the current image of the brand would take some time, henceadding that health-friendly dimension that we talked about earlier would require someserious work on how LocaLimeand similar products are launched and marketed in the future. Also Loca Lime, although will add ahealthier element to the brandbut its affects wont be as widespread or that strong since it takes time for the

perception of the people to change. So it is possible that our product does not do as well initially among thepeople who are cynical about the brand. None the less, as mentioned earlier we can reduce the time in which weconvert the cynics to believers by applying the correct method of marketing, a manner that directly appeals tothe masses in general and the cynics in particular as a product that is good for their health.

Lack of choice:In addition to all of this the final core fear that could be there in terms of how the new product performs in the

market is that the initial lack of options in flavour would pose a threat to our goal to become a leading name inthe juice industry in India. However the answer to this possible issue is that we do plan to launch several otherflavours based on the response of the consumers to Loca Lime, moreover we do understand that in order to

become a leading name in the juice market as well we need to be able to offer several flavours, hence in the longterm we will be launching other flavours to continue the healthy trend of juices that Loca Lime will start.Therefore we believe that launching a sole flavour in market initially isnt abad idea since this will developinterest among our brand followers as well as among the new consumers, and will give us an idea about how toshape our marketing strategy in an even better way so as to perform better while launching other flavours. Alsothis solo launch of Loca Lime will help us in identifying our target market segment.So we can see that there will be impedances in our attempt to reach our objectives with this product but through

properly thought out marketing plans we can overcome almost any issue that may pose a threat to the success ofour new product, however in any case we need to be proactive rather than reactive we have to be ready for eventhe issues that we dont currently even consider assomething that could be pose a threat.


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Product Life Cycle:In the long run, all existing products and services that have ever been placed before consumers are destined to

perish. For example, the automobile industry witnessed the birth the Ford Cortina, a model that was sofundamentally successful, it formed the basis of industry benchmarks. However, the Cortina fell away intoobscurity only to be followed by the Sierra and then the Mondeo. The concept of products being born, growing,maturing and dying thus lie in then ever-ending need for innovation and advancement. Taking this a

predeceasing step further, the very act of commercial modernization is a reaction to the consumer itch inherentin all of us for something new and ultimately, different.Its overall sustainability is commanded by howeffectively the product or service delivers on its pledged benefits. As such, organizations are actively creating,launching and withdrawing products and service in a process known as the Product Life Cycle. Coca Colassuccess has always revolved around the secrecy with which itvalues and withholds its formula and it has maintained this culture of confidentiality since its inception.However, this does not mean the organization has fallen prey to regurgitation of dated product ideas orstagnation in its ability to develop. In fact, it is Coca Colas uncanny ability to constantly develop a product or

brand with timely and subtle tweeks in formula that have allowedthe organization to extend its productlifecycles. Most significantly, Coca Colafocuses on consistently reinforcing its core product benefits of taste andrefreshment to ensure the brand iscontinuously achieving new peaks.Secondly, Coca Cola Company has ensured expansion of its productlifecycles through adapting with consumers

needs change. This can be evidenced by their market research conducted in the 1970s, which conclusivelyprioritized diet and health as a growing need for customers. Coca Colaenvisioned that this consumer preference would eventually transform into anecessity.

As a result, the organization capitalized on market research and launched Diet Coke. This development in CocaCola Company is seen as an ideal case study on the careful and extensive nature of properly conducted,orthodox market research whereby a change in consumer psychology was identified as a unique opportunity for

product longevity. One not need look further than the fact that 60 million Diet Coke drinks were sold every dayat its launch in 1986. Asides from expansion of product lines, companies with existing brand scan introduce new

products under those brand names to the marketplace. This is known as brand extension strategy. Keeping thisin mind, Coca Cola Company has taken the initiative in launching the first non-carbonated, lemon-based juicedrink under the licensed name of Loca Lime. The launch of a newbrandensuresCoca Colascontinued viability and market relevancy. Coca Colasprimary objective will be to

establish, gain market share, and solidify the Loca Limebrand with the ultimate goal of creating anotherbillion dollar brand in their already lengthy list of brands. As mentioned previously, once LocaLimeachievesmarket sustainability, Coca Cola can opt to implement the brandextension strategy in order tomaximize its product life cycle.

12. Marketing MixFour Ps:

Product:The new product set for launch is essentially a refreshing, fresh limejuice drink under the added brand LocaLime. It is differentiated against themarket in that it is a non-carbonated drink. It is to be packaged in both250ml glass returnable bottles and 500ml, 1litre, 1.5litre plastic disposable bottles and 330ml can as well asdisposable 150ml plastic glasses. This is in keeping with industry standards. The design of the bottle is uniqueand focused on the Go Green routine, which dictates Coca Cola manufacture and make public packaged bottles

that are in tune with the environmentally friendly theme. Recently, a local Japanese Coca Cola franchise hadreinvented its operational entity through the introduction of a new brand: I LOHAS. Following theaforementioned example, Loca Lime is to be packaged in ultra-light, crushable plasticbottling mechanismthat gives the advantage of a 40% lighter bottle as compared to the industry standard PET packaging. This addedfeature in Loca Limes brandmanagement encourages consumers to recycle and contribute to Coca ColaCompanys global Environmental Sustainability Program.Additionally, the label size has been reduced so as tocost-save in materials. Moreover, the water is sourced from regions close to the manufacturing plant in order tofurther reduce CO2 emissions caused in the transportation process. It is important for Loca Lime to be brandaligned with Coca Colas global initiatives, as the nature of the product is health-conscious and family-friendly.As such, Loca Lime will take a conscious course of action to steer clear of labels such as processed andsynthesized. Closely interactingwith Corporate Responsibility services such as the aforementioned ensuresLoca Limes brand positioning will be one that agrees with a ll ages, especially the youth.


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Slogan & logoThe slogan that we have chosen for our brand Loco Lime is Energize Your Lifesince it is a clear depiction ofhow our product Loco Lime can enliven your mind and soul while at the same time provide you with arefreshing experience. This is consistent with the overall Coca-Cola theme of providing moments of happinessand optimism in life therefore, it will blend in well with our existing product portfolio and will be placed in theright place in the minds of the consumers. Loco Lime will have an image of good taste and quality which is

what the brand Coca-Cola is all about.

Price:The basis for Coca Colas pricing strategy is pre-existing industry benchmarks. This would entail glass bottlesretailing for Rs. 20 with the condition of return upon use. As far as targeting of green consumers is concerned,there would be a 10rs mark up on the 500ml bottle as production of environmentally friendly plastic bottlesincurs value-added costs. As a result, 500ml bottles would retail at Rs. 35.Such a pricing scheme is based on the very Japanese Coca Cola franchise that endorsed crushable and recyclable

plastic bottles. Undoubtedly, inflated prices are a detriment to the overall sales volume of Loca Lime however,through an intense and carefully channelled marketing message; the price of the juice will be compensated fordue to its added benefits (i.e. health benefits, the drink for the athlete) and Rs. 55 and Rs. 65 for 1 and 1.5 litrePET bottles.For these reasons, the element ofpromotion will be crucial to the success of Loca Lime.Sometimes Coca Cola

Company change their product prices according to the season. Summer is supposed to be a good season forbeverage industry in India. So in winter they reduce their prices to maintain their sales and profit.

Competitors PriceNimbooz350ml PET, 200ml RGB and 500ml PET at the price points of Rs 18, Rs 10 and Rs 25 respectively.

Our Selling Price*:Wholesaler: Rs.20/bottleRetailer: Rs.26/bottleConsumer: Rs.35/bottle(*500ml bottle)

Place:Coca Cola Company has the distinct privilege of boasting a highly sophisticated, world-renowned supply chainsystem established over decades. It is significant to note that Coca Cola has come to achieve such an incrediblywell-integrated operations system through constant major restructuring, as well as the more subtle tweaksrequired to create an almost self-sufficient producing machine. Whilst Coca Colas organizational capabilitiesallow for it to launch a nation-wide release of Loca Lime, it is wise to observe some amount of sensibility andausterity. In light of this, Loca Lime will initially commence distribution in the four major cities of India;Delhi, Kolkata, Mumbai and Chennai. The metropolitan nature of these cities is an acid test in itself as far asdurable goods are concerned. A brand is only said to be self-sufficient and established if it is consistentlyearning profits. However unorthodox the logic, Coca Colasphilosophy on the geographies of brand viabilityensures that initial test results are examined without having incurred heavy monetary costs on the supply chain.Particular significance is given to the four major cities due to their diversity of demographics and the highsensitivity with which they correlate with their respective environments.The product will be produced mainly in the Delhi and NCR. Roadways (Refrigerated Trucks, Crated Trucks)

will be used to supply the packages from the wholesalers to the retailers. Railways for long distances, as it willhelp in controlling the prices.

WarehousingSemi-automated stores have both a manual element and some automation in the form of pallet conveyors, orautomated picking machines or narrow aisle wire guided typically by man riser FLTs

The Advantagesof a semi automated warehouse are as follows: Low land areamedium bay racked systems, 57 high racks High utilisationtheoretically 99.9% plus Lower cost Fairly short lead time: 36 months.


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Disadvantages:

High level of unskilled labour requiredNot secure Slower operation23 min to store or retrieve a pallet Specialist equipmentmaintenance etc. Specific buildingheight and floor

57-year truck replacementThese Private warehouses will be built within the production unit in order to reduce the transportation costs.

Promotion:Although Coca Cola has observed certain cautiousness in terms of the scale of Loca Limes launch, theorganization is committed to allocating funds in a more generous manner for the promotional campaign. Thestrategy involves three autonomous, con-currently running promotional campaigns, all of which are to be

pursued post-launch. Most significantly, Coca Cola, through celebrity endorsements will spontaneouslycapture video footage of individuals or groupsof friends traveling around the city tagging beaten down, unfinished and/ordamaged neighborhoods of India with Coca Cola themed designs. It is important to mention, for our purposes tagging denotes the creativeexpression of certain marketing messages with the use of spray paints and worn-down, bland walls, buildings,fences, etc. Of equal importance is the fact viewers would be unaware of the source of the video and as a result,

of any link with Coca Cola Company. It is the organizations hope that such videos would become viral ontheInternet through social media websites such as Facebook, Twitter, Youtube etc. The end goal is for the act oftagging to become a trend/fad for theyounger generation and eventually have this demographic, through theirown will and initiative; take to the streets to express themselves in their own uniqueand creative way. Hopefully, with a bit of luck, their messages will havesomething to do with Coca Cola. The

promotion is tentatively titled Paint theTown Red.Simultaneously, Loca Lime will be pushed into theforefront with CocaColaspromotional campaign Into theLimelight. This campaign will feature Coca Colatravelling and sponsoring various competitive events in educationalinstitutions around India. Essentially, students would be encouraged to contest in competitions that wouldrequire them to use Loca Limes crushableplastic to construct plastic sculptures. The emphasis once again is

placed on the direct correlation between the younger generation and the need for creative expression. Finally,immediately following the launch of the brand, Loca Lime wooden stalls (reminiscent of stands set up inneighbourhoods in American culture) would be set up at all major parks, schools, stadiums and such landmarks

for the purpose of distributing free testers. It would be possibly beneficial to identify such a campaign with asocial cause relevant to the target market of concern. For example: COCA COLA LOCA LIME: FOR TEXTBOOKS: PLEASE DONATE A LITTLE, WELL GIVE THEREST!

Action Plan:The action plan regarding how the Coca-Cola Company will go about launching the product can be divided inthe following broad categories:1) Pre-launch marketing2) Launch Dates & Venues3) Launch Execution4) Post launch promotion campaign5) Monitoring & Re-execution

Pre-Launch Marketing:Our pre-launch marketing would include advertisement mainly on the TV and in the print media.Advertisements will be played on different popular channels with reasonable frequency; pre-launch ads wouldhave the objective of raising interest in the audience. The ads would raise awareness among the public about the

product that is coming their way, ads would be made in a way that would concern the old & young alike, sincethe purpose of pre-launch marketing would majorly be to cultivate a sense of anticipation about the general

public about Loca Lime. Similarly ads in print media and Billboards would be made in a way that would raisecuriosity among the people about the product.


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Launch Dates & Venues:The product Loca Lime will be launched in the last week of March 2013. Initially the launch will be only in theselected major four cities of the country. Delhi, Mumbai, Kolkata and Chennai will be the cities that will betargeted in the initial launch. The reason for doing this would be to assess the response of the consumers and

judge the potential for growth for the product, once we are satisfied by the initial reaction we will startexpanding the area that is covered by us with the launch of Loca Lime. The ultimate expected goal would be to

gain a country wide recognition and acceptance of this new product, however for something like that to happenwe would need to consider this definitive goal as a long term objective.

Launch Execution:The initial launch in the last week of March would see the product being launched in all of the above mentionedcities. At the start the product would be available in all the super markets and big grocery stores in thementioned cities, where we would set up exclusive vending stands with the company representative sales

personnel selling the products to the consumer themselves and getting feedback from the consumers as well.This activity would continue for a week in all the cities after which the product will be launched city wide,covering most of the retail shops around each of the city. Here it is very important to mention the celebrity

brand ambassador specifically chosen for this product is Salman Khan, the Bollywood superstar already hasalready agreed to be the product endorser for Loca Lime. In our launch Salman Khan would make a specialappearance in Shoppers Stop and Carry Delhi for the launch of Loca Lime, his appearance would prompt his

huge fan following to try the product that their beloved film star is recommending. However due to his tightschedule the only other appearance he would make during the launch week would be at Gurgaons AmbienceMall. Further he would also feature in our TV Commercials and print media ads. Through this celebrityendorsement we hope to achieve a better awareness and acceptance of Loca Lime among the huge fan base ofSalman Khan in particular and broadly among the general population.

Post Launch Promotion Campaign:This probably is the most important part of our action plan, this is the point in time where we will make or breakthe image of our product, since in this time how we choose to promote Loca Lime would determine how soonour productbecomes, so to speak, The next big thing in the mind of our consumers. In thisphase we willcome up with ads that will be there for the next month or so being played on popular channels on a frequent

basis. Plus as said before print media and billboards would also be there with new post launch product ads. Moreover once the product is out there, in order to increase awareness, Loca Lime would sponsor sports event on city

level in one city from each of the 4 provinces in which the product is initially launched, besides this we willcontinue our campaign in major universities, national and multinational offices in these cities. Thismicromarketing will include the provision of free samples to office workers and university students, also in aselect few universities Loca Lime would sponsor an Intra university fun event. We believe that the people whoare working hours on a daily basis in offices and students who are going through their routine university lifewould appreciate a break from their tedious schedule and would be open to not only test the product but torecommend it to others as well. Additionally, in our post launch promotion we will also use Coke Studio toendorse Loca Lime that would be a good way to pitch this new product to the fans of Coke Studio. Apart fromall of this we will be continuously on the look for possible ventures that can add to the customer base andrecognition of Loca Lime.

Monitoring & Re-Execution:Once we have had Loca Lime in the market for a substantial amount of time (3-6Months) the time would come

for us to match our goals of launching the product with what we have achieved in the given time frame.Moreover during this time we would also have kept a check on how the product has been received in the market,in what areas has our marketing and promotion strategy worked and in what areas does it need improvement.Based on answers to all of these questions we would either revisit how we are going about marketing the

product or we would expand in other cities as well as expand in terms of the number of flavours that we areoffering. In the case that Loca Lime is received by the public as we hoped we would gradually expand into othercities with it, moreover based on the customer feedback and requirement (and as mentioned earlier, in order tostay in competition with other juice brands) we would launch new flavours with similar ambitions associated tothem as in the case Loca Lime. However if Loca Lime does not perform as expected in the market, then ourfocus would shift towards revisiting the market strategy of the product and as required we will alter themarketing framework for the product.


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13. Communication Strategy

The Coca-Cola Company will use different sources to communicate with their target market which will includetelevision, newspapers and billboards. When we launch Loco Lime we intend to use teasers to generate interestin the upcoming product by the use of the above mentioned forms of media. TVCs will be run on the prominentTV channels in addition to flyers and banners all across the major cities of India so that the consumers are aware

of the fact that Coca-Cola is launching a new product and generate hype and anticipation. Moreover, Coca-Colaplans to hire Salman Khan the brand ambassador of Loca Lime as he is an embodiment of good energy thatLoca Lime promises to enrich your life with, in addition to being a role model for the Indian youth. Also it isintended to give Loca Lime a healthy image in the minds of the consumers as it being promoted by a bollywoodsuperstar.

Communication ObjectiveThe Coca-Cola Company uses sources like TV, billboards, newspaper advertisements and promotionalcampaigns to attract the customers and create product awareness about their new products. Coca-Cola tells thecustomers that their products give you energy, good taste and a good life to enjoy. It also gives out the messagethat the products are good for your health and in addition to enjoying the taste you are also taking care of your

body.

Advertisements on TV channelsOne of the major forms of media that Coca-Cola promotes its products through is through televisionadvertisements as it is the most popular of all forms of media and is watched by the general public. Hence, it isdefinitely a good way of communicating to the target market of Loca Lime in India. Before deciding on thetimings of the advertisements, Coca-Cola will keep in mind the type of customers that they wish to attract, thetimes they watch TV and the timings of the competitors advertisements. In order to reach out to their specifictarget market Loca Lime advertisements will be shown on the leading TV channels History 18, VH1, MTV andChannel [V] since these hold the highest rank in terms of popularity among the youth of India. Moreover, beforethe launch the teasers of Loca Lime will be run on these channels to increase the customer interest and generateanticipation.

NewspapersCoca-Cola will also advertise their new product Loca Lime through advertisements in the newspapers as a large

number of the consumer base reads newspapers on a daily basis. As with the television advertisements, Coca-Cola will keep take a look at the number and placement of the competitorsadvertisements in order to occupy afavourable position in the newspapers as to reach out to their customers more effectively. Theyll also analysethe types of newspapers that their competitors place their advertisements in so that they can plan better as tohow to fare better than their competitors in terms of communication. For this purpose, Loca Lime will haveadvertisements in Hindustan Times and The Times of India which are two of the most popular newspapers ofIndia and are widely read by everyone. Teasers will also be printed in these newspapers prior to the launch ofLoca Lime

BillboardsCoca-Cola also plans to attract their customers through advertising on billboards in the main cities because it isa highly effective way of reaching out to the target market. This will be done by placing them in strategic placeswhere there a large number of customers throughout the day like a public place or near busy roads etc. 500 sq.

ft. billboards will be used in each region in addition to flyers along the main roads in order to ensure that themaximum number of people see it on their way to work or when theyre out to havefun. Salman Khan, our

brand ambassador will be featured on both the teasers and the post-launch advertisements.


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14. Budgets:

Marketing Budget TV Budget

As Loco Limes main competitor are Nestle juices who increase theiradvertisements during the summers whenthe juice season is at its peak, Loco Lime will follow the same pattern, advertising heavily during the summerson TV channels at different timings. The total advertising expense for TV channels will be Rs. 3,50,000 for 10seconds (roughly 2 rupees per 1,000 viewers) per advertisement.

NewspapersCoca-Cola will advertise in The Times of India and Hindustan Times concentrating on the weekends for theirnewspaper advertisements. The total advertisement expense per day* for the newspapers would be:

Hindustan Times:

BW- Rs.800 /sq cm, Color- Rs.800 /sq cmFocus Day(s): All DaysMinimum Ad Cost:Rs. 12800

Minimum Size:4 cm width X 4 cm height

Times of India:

BW - Rs.3195 /sq cm, Color- Rs.3195 /sq cmFocus Day(s): All DaysMinimum Ad Cost:Rs. 51120Minimum Size:4 cm width X 4 cm height(*For Delhi)

BillboardsCoca-Cola will cover each region with 500 sq. ft. billboard since this is the strategy employed by theircompetitor Nestle. All the major cities will have billboards over flyways and on busy roads to attract customers.The total estimated cost of billboard advertisements for Loca Lime will come to Rs. 48 Lakhs*.

(*Mumbai: Frequency-2.18,38000 Vehicles per month)

Social Networking SitesFacebook, Twitter and other SNS will be used to promote Loca Lime through creation of fan pages, events.Regular posts will help us identify the areas on which coca-cola needs to work upon. Promotion costs vary from5$ - 50$ per page for a day.

Distribution CostsCoca-Cola will also pay its distributors to carry Loca Lime along with the other products of Coke. High-endretailers will be chosen initially in order to create an exclusive image of the brand to position it as healthy inthe minds of the consumers; a product with healthy ingredients. Later on, after the initial launch it can be

expanded to cover more cities in order to cater to a larger customer base and indulge in mass marketing togenerate the maximum revenues. The distributors of Loca Lime will be provided with freezers and coolers inorder to chill the drink properly prior to its sale. Distributors will also be given incentives to place Loca Lime atstrategic places in the shelf in order to catch the eye of the customers. The estimated cost of distribution forLoca Lime in the first year will be Rs. 7,40,000.

Brand AmbassadorAs it is mentioned above, Salman Khan will be hired as the face of Loca Lime in India and the Coca ColaCompany will enter into a two year contract with him estimated to cost around Rs. 18 crores.


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15. CONTROL

There is no planning without control. We plan to use Marketing Control to manipulate our marketing plans inorder to efficiently reach out original goals. The basic blueprint involves drawing up goals that the campaign isdesigned to meet and then drawing up the plans and strategies that are intended to achieve those goals. If those

plans start to fall short of the desired standards, they then need to be adjusted to get the campaign once again

pointed in the right direction. Marketing control involves the analysis of where the original plans are fallingshort and the steps taken to correct those problems. We plan to achieve this process by setting up performancestandards that will ideally be reached at each step of a marketing campaign. The marketing manager willcompare actual progress against the standards. If these standards are not being met, corrective action will betaken. The problems need to be identified before any action can be taken, lest more damage be done. Once the

problems are identified, then the proper method of marketing control may be exerted in an effort to bring aboutthe desired goals. There are many methods of achieving marketing control, which can include but are not limitedto;MarketResearchMarketshare analysis.Salesanalysis.Qualitycontrols.Budgets.

Ratioanalysis.Marketinginformation systems (MKIS).Feedbackfrom customerssatisfaction surveys.Cashflow statements.CustomerRelationship Management (CRM) systems.Salesper thousand customers, per factory, by segment.Locationof buyers and potential buyers.Activitiesof competitors to aspects of our plan.Distributorsupport.Performanceof any promotional activities.Marketreaction/acceptance to pricing policies.Servicelevels.

Market ResearchWe plan to use Marketing research to gather and analyze data to see if Loca Lime is meeting the needs of themarketplace. Research is the most obvious tool for identification of how well the marketing campaign is

proceeding. We plan to do it through customer surveys or product testing.Focus groups are another popular wayof ascertaining if our product is hitting its desiredtarget audience or if the marketing techniques are gettingacross the desired message. Wellget to know if our customers are satisfied with our product and find ways toimprove it by changing the packaging etc. if they are not.

TestingAn important marketing control regarding our new product Loca Lime is test marketing. Before spending largeamounts of money to produce and market Loca Lime, Coca Cola will test the product on a small scale by usingfocus groups or a limited distribution. This can help Coca Cola predict the success or failure of the Loca Lime.

BudgetsMarketing managers use statistics to assess the success of a marketing strategy. In addition to sales volume, theywill also look at their market share and compare it the competition. The managers will also determine theirreturn on investment by examining overall sales in relation to the cost of marketing and production.

- How Coca-Cola will determine the yearly budget: Sales Volume

We will first concentrate on thething is what is the condition of the sales? if the condition is good of

their sales then we definitely increase their production and sales volume. Otherwise we concentrate onthe old strategies.
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Profitability:If we are getting profits with the high margin, then we definitely want to increase the profits in the nextcoming year. Every organization runs on the basis of getting high profits. No organization wants toface Loss in their business. To get profit is the first priority.

Target Volume:To run the business every industry has some targets, which they want to achieve in a specific time

period. If industry achieves those goals in that period then for the coming year it increases the volumeof the target. So Coca-Cola follows the same thing, it has also some goals and targets to achieve in thegiven time period. When we succeed to achieve that target then we increase their target volume in thenext year.

Pricing StrategyPricing may need to be adjusted to meet changes in the market or to maintainprofitability. If Loca Limeschiefcompetitor implements a significant pricereduction, Loca Lime may be forced to do the same to maintain marketshare. Conversely, if production costs rise, Loca Lime may be forced to increase pricesto remain profitable.

Promotion StrategyWe may also need to adjust our promotion or advertising strategy to change consumer perception and increase

sales. For example, if Coca Cola finds out that the sales of Loca Lime are being lost to a competitor, it can gearup its promotion strategy to gain back its lost customers.

16. Expectations in coming years

Everything starts from the attitude of consumers behaviour. And the basic key to attract the consumers is to

throw the money away. And positive feeling felling with the brand, which they used to have Coca-Cola wantsto advertise Loca Limeheavily in the coming year. And it will take the 10% of our profits. And when we take itas a global level it is $ I billion. Coming year is the challenging year for the industry of Coca-Cola. We have totake lots of decisions that how to increase the production and where we have to spend money. For gainingsuccess in coming year we have to have some important things like:1. Loyal consumers are important for companys success.2. Workers should be the brand centric not the promotion centric.3. We should know how much to for the brand activities.

4. We should also know that how much to do with the promotion activities for brand.

Logo -


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Soft Drinks Marketing ManagementSurvey

Questionnaire on Soft Drinks

SOFT DRINKS - MARKETING RESEARCH QUESTIONNAIREThis study is being conducted by Apeejay School students as part of the Marketing Management project. This is aquestionnaire survey about soft drinks. This survey is done to find out peoples preferences of soft drinks.

Name - ___________Age - _____________

1. Do you consume soft drinks? (Please tick in the space provided)Yes O No O

If yes, continue with Q.2. If no, go to Q. 6

2. How often you drink soft drinks?a) Daily b) Weekly c) Monthly d) Occasionally

3. Which of the following drinks you drank last?

Coke [ ]Thums up [ ]Pepsi [ ]7up [ ]Sprite [ ]Mirinda [ ]Slice [ ]Others ____________ (Write the brand name)

4. When do generally consume soft drinks?(Please select as many as applicable) *

With food [ ]

After meals [ ]While travelling [ ]After playing [ ]In a party [ ]To quench the thirst [ ]With hard drink [ ]While smoking [ ]During meetings [ ]Other ____________ (Write the reason)

5. Rank the following attributes in the order of importance for buying a soft drink.(1 - Most Important...13 - Least Important) *

Ease of use with Alcoholic Beverages [ ]Availability [ ]

Price [ ]Sweetness [ ]Type of Packaging [ ]Size of the Bootle [ ]Fizz [ ]

Brand [ ]Nutritional Value [ ]Star Endorsement [ ]FlavourCranberry OLime OMango OCherry O

6. Suggestions:________________________________________________________________________________________________________________________________________________________________________________________________________


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Documents

PROJECT - Final (2).docx