Coco Cola Case

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The company we have chosen is Coco Cola India. Coca-Cola India Private Limited 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 1.3 million retailers. Today, their products are the leading brands in most beverage segments. The Coca-Cola Company’s 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…show more content…
For example pepsi, considered as a very close substitute of coke is sold at the same price as coke. But, in case the price of pepsi falls to Rs 11 per bottle, the customers who are indifferent between the two will shift their demand from coke to pepsi. An Increase in the price of its substitutes( thumbs up, pepsi, limca, mirinda, sprite, mountain dew etc ) the demand for coke will rise and vice versa.
Advertisements and Promotions
The advertisements and promotional schemes undertaken by the Company also majorly affects the demand of the product. For example we have seen that public figures like Hrithik Roshan or Aamir Khan as brand ambassadors of Coke. Thus, this creates a positive image about the product in the eyes of the customers. It induces the fans of the artists towards consuming the product, creating a favourable image and shooting up the demand. Also , the extensive promotional schemed undertaken by company, re-packaging makes the product more desirable for the customers.
Market Cannibalization is the negative impact of a company 's new product on the sales performance of its existing related products. The new product by Coco Cola which is Diet Coke is having one such impact on Coke. The growing trend for fitness has led to a shift in the demand from coke to diet coke. Thus, the introduction of diet coke had negatively
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