Top 10 Global B r a n d s 2003 by V alue (Source: Interbrand Corp, BusinessW eek 2003) Value 2003 Value 2002 Country

BU SD BU SD

1 Coca Cola 70.45 69.64 U .S. Presented By: 2 M icrosoft 65.17 64.09 U .S. A gni Sarkar 34 3 IBM 51.77 51.19 U .S. A bhay Singh Pathania 28 4 GE 42.34 41.31 U .S. 5 Intel 31.11 30.86 U .S. A rvind Verm a 27 6 N okia 29.44 29.97 Finland Devendra Singh 43 7 D isney 28.04 29.26 U .S. Parikshit Kanase 16 8 M c'D onalds 24.70 26.38 U .S. Roshan Ram achandran 32 9 M arlboro 22.18 24.15 U .S. 10 M ercedes B enz 21.37 21.01 Germ any

Coca-Cola in - Introduction Coca-Cola in India

During the past decade, t h e Coca-Cola Com pany has invested m ore than U S$ 1 billion in India Coca-Cola is one of the country's top international After a 16-years absence, C oca-Cola returned to India in 1993. T h e investors . Com pany's presence in India w as cem ented in N ovem ber that year in a deal that gave Coca-Cola ow nership of the nation's top soft-drink brands and In 2003, C oca-Cola India pledged to invest a further U S$100 m illion in its bottling netw ork. operations C oca-Cola business system directly em ploys approxim ately 6,000 local p e ople . Coca-Cola India has m ade significant investm ents to build and continually In India, we indirectly create em ploym ent for m ore than 125,000 people in im prove its business in India, including new production facilit ie s , w a stew ater related industries through our vast procurem ent, s u pply and distribution treatm ent plants, d istribution system s and m arketing equipm ent system . Virtually all t h e goods and services required to produce and m arket C oca-Cola locally are m ade in India . The Coca-Cola system in India com prises 27 wholly -owned com pany-owned bottling operations and another 17 franchisee-owned bottling operations.

P olicy

Polic y The Coca-Cola Com pany exists to benefit and refresh everyone it touches.

For us, Q ua lit y is m ore than just som ething w e taste or see or m easure. It show s in our every action. W e relentlessly strive to exceed the world's ever-changing expectations because keeping our Q ualit y prom ise in the m arketplace is our highest business ob jective and our enduring

T he S ymbol of Quality oblig a t ion. M ore than a billion tim es every day, consum ers choose our brand of refreshm ent because Coca-Cola is...

Cus t omer and Consumer S at is fact ion The S ym bol o f Q ualit y

Custom er and Consum er S atisfaction A R esponsible Cit izen of the W orld

A Responsible Citizen of the W orld

1 Indian Market : Composition of Cola & Non Cola Drinks

Coc a-Cola 22% Thum ps Up 33% O ther Pepsi O ther Cola Brands 9% Lim c a M irinda 6% F anta 10% 15% P epsi 3% 2%

Source: C e n t e r for Industrial & Econom ic R esearch Industrial T e c hno- econom ic S ervices Pvt. L t d , D e c 2003. Source : F orbes ,D ecem ber 2 0 , 2003

N on -A lcoholic S oft D rinks M ISSION STATEM EN T

Fruit D rinks Soft D rinks M ission statem ent: “W e exist to create value for our share ow ners on a long- Carbonated N on Carbonated term basis by build ing a business that enhances T he Coca-Cola Com pany’s Tropicana Real tradem arks. T h is is also our ultim ate commitment. A s the w orld’s largest beverage com pany, w e refresh that w orld. W e do this by developing superior soft drinks, b o t h carbonated and non-carbonated, and profitable non-

N on Cola alcoholic beverage system s that create value for our Com pany, o u r bottling Cola Products Products partners and our custom ers.”

Fanta & M irinda - O range based Pepsi drinks Coca-Cola Lim ca and M irinda Lem on - Cloudy Thum s U P Lim e based drinks 7U p, S prite, C anad a D ry and M ountain D ew – Clear Lim e drinks Frooti and M aaza - M ango based drinks

2003 worldwide net operating revenues Latin America FIN A N CIA L D A T A Total : $ 2 1 .0 Billio n 2003 2002 2001 Corporate 10% 1% N et operating revenues $ 21044 $ 19564 $ 17545 31% North America Gross profit $ 13282 $ 12459 $ 11501 30% Africa N et profit $ 4347 $ 3050 $ 3969 24% 4% Asia M arket price on D ecem ber 31* $ 50.75 $ 43.84 $ 47.15 Europe, Eurasia & Revenue generated in india: Middle East 9% (asia mkt) i,.e. $ 500 mn. Total c a p it a l $ 19,513 $ 17,156 $16,484

*All f igures are in m illion except m arket price.

2 AAnnssooffff MMooddeell FF oorr BBrraanndd :: CCooccaa CCoollaa

Current Product New Product

M arket Penetration S trategy: Product D evelopm ent •Encouraging current custom ers to Strategy: buy m ore by show ing benefits •Identified Potential U s e r W heel O f U sage/Experience Current •Attracting Com petitors C ustom er Group M arket Coke 200m l •Additional D istribution A nd D riving W heel Channels (diet coke ,vanilla coke )

M arket developm ent S trategy: Diversification S trategy: •Selling in N ew Location in S am e •Concentric D iversification N ew country or A broad Strategy( m in e ral w a t e r , M arket (rural m arket ) T ea & Coffee)

Presentation D em onstration A dvertising D isplays Brand equity H oarding Prom otion Loyalty Core product : Augmented Trial Selling Product Carbonated drink which is a thirst quencher.

Ambassad Formal Product ors

Core Product Differentiati on

Satisfied customer Word of Mouth

Added values

Basic level Package :Red and W hite bottle (does 5% of the ad ) The augm ented level Firm grip contour bottle First to Introduce 6 ½ ounce bottles Service :A customer can lodge com plaint if he is not satisfied with the Q ualit y : Best assured qualit y of conform ance . product Brand nam e :Legendary brand Add ons: E x t r a offers available like the diet coke ,custom er Styling :Trendy colour com bination appealing to the eye . Can log on to cokem usic.com , C o ca-Cola M yEnjoyzone.com & listen to m usic Pay back/operational e a s e :Easy to open and drink /availa b le at next door and play gam es . kirana stores Consultancy :Provide inform ation about the product through illu s t r a t ions Features :Coke in attractive cans and bottles

H ighly appealing

3 Potential le v e l Driving w heel

N am e and fam e :Legendry brand Advertisem ent Com pany im age :Good reputed im age (TV, M agazines, M o v ie s )

Flexibilit y :Available in packs from : Convenience Prom otional C a m p a igns Consum er A ctivation 200m l f o r Rs 5 •Coke (V) Pop stars 300m l f o r Rs 6 •Prom oting the Concert F loats doing city rounds, P r e ss ads supplem ented by the Internet ,A cts in colle g e . 500m l f o r Rs 15 ( + 100 m l F r ee) . Prom otion of M ovies 1.5 Litre Rs 30 •SM S special a pplic a t ion (on our S M S club “U BU ZZ ”) w a s also deployed 2 Litre Rs 40 (+ 20 0m l F r e e ) •H oardings (H oardings & Banners at M ajor Locations in Cities . Available in cans, p lastic and glass bottles

M ovies

P r e - Concer t P r omos Pre - Concert Promos Concert Promos

The Execution In-film placement: S trategic branding by w eaving Coke into the script R ights to prom ote the film . through prom os com bining the film and the brand, across m edia Supported by Free tickets, star visits/star m eets, m usic CD s etc. Bringing A ishwarya to the m asses for the first tim e! C o n t e s t run nationally , with dinner w ith her as dream prize! O btained m edia worth 3 m illio n IN R for 900,000 IN R. Tied up w ith Intergold – India’s top jew elry retailer for prizes

H igh Awareness/ Fam iliarity of H igthh Ae wBarranende iss/n th Fea mpriolisaperitcty iofve /t he Brand cuin rrtheen tp rmoasrpekectt.ive/ current m arket. “Than“ TdhaanM daatlaMbatClocaab C-ocaCola-”Cola

Custom ers are well a w a r e about the benefits / attributes of the brand

H ighly creative brand im age.

Ad Exposure Brand Purchase attitude behavior

Custom ers associate them selves Custom ers associate them selves witwh ithe t bhrean brdan amd baamssbaadssoarsdo. rs.

Linkage with Peer/Experts Linkage wi/t hG rPoueepr/ NEoxrpem srts/ G“rLouinkp tNhoermmsselves w ith Film Stars “Link t/hSepmosrtselv epes wrsitonah Fliitlmie sS” tars /Sports personalities”

Rem inder or Inducem ent about brand trail

4 Brand Knowledge

Global, Pre m ium , Brand A wareness Brand Im age Innovative

Easily availa b le · Brand awareness :Sponsors of events like cricket ,sym bol e x posure ,use Brand Recall: of brand extension ,provides a lin k betw een the brand and the product “Thanda Brand Recognition: Coca- Cola Logo class . ( 90 % of the w orld population is aw are of this brand ) Type of Brand The real t h ing. m atlab coca cola“ A ssociation: F un · Brand attributes : R e freshing taste ,frizzy drink · Creation of brand im age/personalit y : T h e real t h ing, Y oung at heart · Brand association :Any thing m entally related to the brand and provide Favourabilit y of brand association: Positive effect on Product R elated a point of differentiation ,provide a reason to buy ,so u don't forget the buyers, F eeling of trust on N on Product related brand. brand w hen u see A m ir Khan u rem em ber coke. · :Am ir Khan Price affordable by all Linkage of brand with peer/expert and group norm s classes of people. ,Vivek O beroi,A is h w arya Rai,A d it i Gowitrikar, H rithik Roshan & Shewag Taste, Colour Strength of brand have been placed by people in high esteem .as young dynam ic and A ssociation: It’s the real N ot of m uch relevance to People looking for refreshing thing. energetic as show n in advertisem ent. consum ers taste, young.

· Rem inder and inducem ent about the brand :Thanda m atlab coca cola Perceived as a drink of fun loving people who w ant to Fulfilled , C ool A ttitude ,Jo chaye ho jaye, coca cola enjoy ,Piyo Thanda Jiyo Thanda, L if e H o to rem ain young at heart Aisi. U niqueness: Taste Feel g o o d , youthful, Sporty.

5 • Brand Chosen: C oca Cola • Com petitor: Pe psi • Sam ple S ize : 2 0 JO H N HOFFMEYER’s • Q uestions A sked:

CU STO M ER LO YALTY M O DEL 1. W h ic h Brand do you D rink? 2.H ow long have you been using the brand? 3.H ave you tried any other brand? 4.H ow did you like the other brand? 5.If the other brand reduces its price, w ould you shift to the other brand? 6.W ould you use another brand if it offers a better product? 7.Do the advertisem ents and brand am bassadors of the brand affect your purchasing behavior?

Brand Equity-Conversion Model Scale Revitaliz a t io n S trategies

Highly Committed 8.75-10 2 0 Hig hly C om itted Donald Short began efforts to rejuvenate Parle Brands in 1997 1 7 Committed 7.5-8.75 C om itted which resulted in increase in m arket share from 58.9% in 97 to 61.4% in 99 1 5 Highly uncommitted 6.25-7.5 Hig hly uncomitted 1 0 1. F in d N ew M arkets 1 0 8 unco m itted Uncommitted 5-6.25 • Geographic expansion: C oca-cola is entering new emerging M arkets – Investm ents in India $ 1bn 5 Hig hly Open Highly Open 3.75-5 5 3 3 – The com pany had plans to invest in S outh India to broaden the 2 2 product portfolio and in East India to increase its reach. O pe n Open 2.5-3.75 – Prom oting 200m l s e r v ing particularly in rural a r e a s that are 0 Unava ila ble Unavailable 1.25-2.5 hom e to 70% of the Indian population. No . of Respondents Hig hly Unavailable Highly Unavailable 0-1.25

• Ease of use: 2. I ncrease in brand consum ption – The Com pany introduced Canned and PET soft • decrease in size of serving: – Aggressive m arketing of the affordable 200m l s ingle- drinks, v e n d in g m achines and backpack serve pack had expanded the Indian m arket dispensers for crow ds of cricket supporters • Increase size of offering: – coke is availa b le in 2 L pack • Decrease disincentives of use: • Loyalty rew ards: – Diet coke – awards on crow n colle c t ion • 20-coca-cola cap • 50-coca-cola bag • etc.

6 Rationaliz a t ion

Repositioning S trategies Category Coca Cola Parle Brands Brands (Acquired in Brands 1993) (Acquired in • Com petitive repositioning: 1999) – Coca-cola says 'thanda m atlab Coca-cola' Cola Coca Cola Thum bs U p Sport C ola – Advertisings com paring T hum bs-up w ith Pepsi – w ith M ountain dew Clear Lim e Sprite Canada D ry

• U pdating brand: O range Goldspot – Shock -energy drink – Sunfill -concentrate Cloudy Lim e Lim ca

M ango M azza

Branding S trategy

Reasons for rationaliz a t io n Line Extension Brand Extensions soda • Acquisitions and m ergers: C o c a -Cola acquired Ram esh Coke Kinley drinking w ater D iet C oke Chauhan owned Parle goup’s Thum bs U p, L im c a , C itra, Georgia Coffee and M azza in 1993 and Schweppes’ C anada Georgia T ea Dry, C r u s h and Sport C ola in 1999 which m ade its M ulti B r a n d s N ew Unique Brands brand portfolio huge. Coca-Cola Thum bs U p Sunfill-concentrate • Globalization: C o c a -Cola w ants to standardize around Sprite Kinley Lim ca Georgia regional b r and nam es Fanta M azza Citra Schweppes Gold Spot Rim zim

M yth of M arket S hare Founier’s Relationship

• Coca-Cola not only looks at ‘T he share of M arket’ b u t • Committed Partnership also at ‘T he Share of w alle t ’ o f its custom ers – Coca-Cola –establis h e d in 1886 • Coca-Cola looks at potential and global b e v e r a ge – Present in India since 1974 m arket including Coffee(Georgia) , t e a (G eorgia), water (Kinley), S o d a (Kinley). – Always a M arket Leader during its presence in India • Instead of looking at the w ays to com pete w ith Pepsi it w ants to replace ‘T ea-Tim e’ w it h ‘Coke tim e’ and ‘coffee Break’ w it h ‘Coke Break ’.

7 Consum er B ased brand Equity Elem ents of Brand Equity Respondents Q uestion who identified Score Coca-Cola W hich Brand com es to your m ind 27 135 Brand Perceived when I say ‘Cold D rink’ ? O ther Coca-Cola Brand A ssociation qualit y proprietary Brand Loyalty W hich cold drink brand com es to 1. Youthful 1. Taste 9 27 Brand A wareness your m ind when I say ‘good taste’ 2. Fun 2. Refreshing A ssets 1.Brand Logo, and ‘refreshing cola drink’ Font S tyle loving 3. Thirst 7x form ula, 1.M arket 3. sporty Q uenching W hich Brand com es to your m ind 7 14 patented leader(61% ) when I say ‘Youthful a n d Real T h in g ’ bottle 2. A v e r t .: 2. H ig h e st Brand ‘Thanda M atlab …………’ ???? contours Thanda 7 7 m atlab. Value(70bn dolla r s Score = 183/250 7.3/10

THANK YOU

Jiyo Thanda Piyo Thanda…

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