Table of contents
The Coca-Cola Company Firm Profile
The Beverage Industry in India
India’s Societal System
Macroeconomic Indicators and Demographics.
Market System Aspects
Infrastructure and Legal Order
India’s Societal Predisposition
Indian Caste System
Strategies and Policies
Future Strategic Initiatives
Market Penetration Strategy
Consumer and Market Focus Strategy
India, as one of the world’s largest emerging markets, is quick to be seen as a source for new corporate growth and expansion by both large and small companies alike and The Coca-Cola Company is no exception. Since its second foray into the Indian market, The Coca-Cola Company has seen significant growth in its operations there, with average annual gains of 21 percent. As the company becomes more entrenched within the Indian market, it must continue to navigate the cultural, economic and political idiosyncrasies found in India to ensure continued growth and to sustain its competitive advantage over its rivals.
For The Coca-Cola Company, long-term success hinges upon a myriad of factors that include expansion into the rural markets of India where inadequate infrastructure, widespread poverty and the legacies of the country’s caste system continue; product development and marketing strategies that cater to both the taste preferences of the Indian consumer and societal pressures for healthier alternatives; and acquisitions and partnerships that broaden the company’s internal distribution network while simultaneously giving the company access to long-standing relationships, which is important in a country that places a greater emphasis on relationships over rules and profits. As The Coca-Cola Company implements its strategies for continued operations and market share expansions within India, working knowledge of how the political, economic and cultural forces shape the corporate environment within the country will boost the company’s acceptance by local partners, employees and consumers, ultimately leading to a stronger competitive position for company. The Coca-Cola Company Firm Profile
The Coca-Cola Company, publically traded on the New York Stock Exchange under the symbol KO, is the world’s largest nonalcoholic beverage company with over 139,600 employees and reported revenues of USD 35,119 million during the fiscal year that ended in December 2010 (Global Data, 2011). With over 500 brands sold in more than 200 countries, The Coca-Cola Company maintains responsibility for three primary business elements for its product: the manufacture of the concentrates, beverage bases and syrups that are sold to bottling operations for final manufacture and packaging for consumption, the company’s brand and consumer brand marketing initiatives (The Coca-Cola System, 2011). The Coca-Cola Company is a dispersed, transnational organization that operates under a decentralized management structure. The company consists of six operating segments: Eurasia, Africa (includes India), Europe, Latin America, North America and Pacific. Two other business entities round out the corporate structure - Bottling Investments, which are the Company-owned bottling operations and Corporate (The Coca-Cola System, 2011). Each operating segment holds significant autonomy as it drives sales within its region and develops market-specific products to meet local demands and preferences. The largest volume growth by operating segment has been Eurasia & Africa, with 12 percent gains from 2009 to 2010 and the Indian market is driving the growth with average annual gains of 21 percent (The Coca-Cola System, 2011). In terms of financial performance and stability, the company’s global footprint offers the opportunity to offset...
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