coca cola sm final

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COCA COLA PRESENTED BY: SWAPNAJIT BANARJEE PRIYANKA SINGH PRADIP KARMAKAR JISHNU SARBABIDYA SUNNY SINGH Guided By:- Dr. Sekhar Chaudhari

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Page 1: Coca cola sm final

COCA COLA

PRESENTED BY:SWAPNAJIT BANARJEE

PRIYANKA SINGH

PRADIP KARMAKAR

JISHNU SARBABIDYA

SUNNY SINGH

Guided By:- Dr. Sekhar Chaudhari

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COMPANY PROFILE• Official Name: The Coca-Cola Company• CEO & Chairman: Muhtar Kent (From

2008)• Headquarters: Atlanta, Georgia• Industry: Food & Beverage – Soft Drinks• Products: Over 500 brands• Employees : 1,23,200(2016)• Main Competitors :PepsiCo Inc., Dr

Pepper Snapple Group, Inc., Unilever Group, Mondēlez International and many other companies in the beverage industry.

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INTRODUCTION• The Coca-Cola company is the largest corporation,

manufacturer, retailer, distributor and marketer of non-alcoholic beverage concentrates syrups.

• Currently offers more than 500 brands over 200 countries & serve over 1.6 billion service each day.

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HISTORY• In May 1886 Coca Cola was invented by Dr. JOHN

STITH PEMBERTON a Pharmacist from Atlanta, Georgia. John Pemberton concocted the coca cola formula in a three legged brass kettle in his backyard.

• The name was a suggestion given by John Pemberton’s Bookkeeper FRANK ROBINSON.

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HISTORY 2• First glass sold for 5 cents at Jacob’s Pharmacy in

Atlanta• May 29, 1886- first newspaper advertisement

pronounced it “Delicious and Refreshing” • The coca cola formula & brand was bought in

1889 by ASA CANDLER who incorporate the coca cola company in 1892.

• It was sold in the bottle for the first time on March,1894.

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PRODUCT’S OF COCA COLA

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The World’s 4tH Most Valuable Product

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VISION

• People: Inspiring each other to be the best we can be by providing a great place to work

• Portfolio: Offering the world a portfolio of drinks brands that anticipate and satisfy people's desires and needs

• Partners: Nurturing a winning network of partners and building mutual loyalty

• Planet: Being a responsible global citizen that makes a difference by helping to build and support sustainable communities

• Profit: Maximising long-term return to shareholders, while being mindful of our overall responsibilities

• Productivity: Being a highly effective, lean and fast-moving organisation.

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MISSION • To refresh the world in mind, body and spirit• To inspire moments of optimism and happiness

through our brands and actions• To create value and make a difference.

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Value • Leadership: The courage to shape a better future• Collaboration: Leverage collective genius• Integrity: Be real• Accountability: If it is to be, it's up to me• Passion: Committed in heart and mind• Diversity: As inclusive as our brands• Quality: What we do, we do well

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BOTTLING HISTORY

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Sales Organization StructureSales Manager

Area Sales Manager

Sales Executives

Market Development Executive / Pre-sellers

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Withdrawal from India (1/2) Up till 1977, Coca-Cola was the leading soft drink

brand in India. But due to norms set by the Foreign Exchange

Regulation Act (FERA), Coca-Cola left India and did not return till 1993 after a 16 year absence from the Indian beverage market.

FERA needed Coca-Cola to reveal its secret concentrate formula as well as reduce its equity stake which was not acceptable. 

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Withdrawal from India (2/2) Pure drinks, Delhi launched Campa-Cola, to take

advantage of Coke’s exit and by the end of 70’s, was the only Cola drink in the Indian market.

In 1980, Parle, another major Indian player launched ThumsUp, the drink which till date is most popular soft-drink in India.

Pure Drinks strongly objected to ThumsUp being called a “soft” drink as it felt its taste is too strong.

For over a decade, Parle led the Indian soft-drinks market, with its market share reaching a peak of 70% in1990. 

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Re-entry into the Indian Markets (1/2)• Coca-Cola got the permission to enter the

country with a 100 per cent unit in India.• On September 22, 1993, the company bought

out the Parle brands.• As an entry strategy, CCI took over Parle Foods. • With a fine and detailed distribution network in

place, Coke was now ready to take on archrival • Over a period of time, CCI also bought certain

bottling units that earlier belonged to Parle or individual distributors.

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Re-entry into the Indian Markets (2/2) In 1993, Thumps Up, Gold Spotand, Limca enjoyed

around 75% share of the CSD market. With the entry of Coke, CCI decided not to promote the

cola brand they took over i.e., they decided to withdraw Thumps Up from the market. This however, did not pay off since the cola market was (and still is) highly polarized and people were unwilling to compromise on the taste of their preferred cola.

As a result, Coke’s market share (Coke + Thumps Up) fell to nearly 55%. After 3 years of incurring losses, CCI finally took a decision to re-launch Thumps Up. This strategy paid off and today almost 59% of the market is governed by CCI.

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Market share• Coca-Cola is a leading player in the Indian

beverage market with a 60 per cent share in the carbonated soft drinks segment, 36 per cent share in fruit drinks segment and 33 per cent share in the packaged water segment.

• In 2004, Coca-Cola sold 7 billion packs of its brands to more than 230 million consumers across 4,700 towns and 175,000 villages.

• The company has doubled its volumes and trebled its profits between 2001 and 2004.

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Product positioning THUMS UP Thumb’s up of coca cola is targeted to the adventurous and

energetic people that are interested in adventure and love taking risk to succeed.

MINUTE MAID Minute Maid of Coca cola are specially targeted to health conscious

customers and want health drink having natural energy in it. FANTA The drink is specially launched for the lady sector of the population

and these drinks are positioned in that way only. DIET COKE Diet coke targeted health conscious customers and sugar paitients who love to drink coke but cannot due to sugar contains. Diet coke is a sugar free product of CCl.

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PUSH & pull strategy PUSH STRATEGY Coca cola is using Push strategy in which they use its sales force and

trade promotion money to induce intermediaries to carry, promote and sell the product to end users i.e. consumers.

For example-as coca cola is giving free pet bottles and other trade schemes to distributors, agency owners and retailers.

PULL STRATEGY:- Coca-cola is also using Pull strategy in which they are using advertising

and promotion to persuade consumers to ask intermediaries for the company brand product by this way coca cola inducing customer to order it from shopkeeper.

For example-Coca cola is using flanges, display racks, tier racks, standees, mobile hangers and visicooler brand strips.

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Distribution

Distribution Routes

– Key Accounts • Examples: Clubs, fine dine restaurants, hotels, Corporate houses etc.

– Future Consumption• Examples: Departmental stores, Super markets etc.

– Immediate Consumption• Examples: Small sized bars and restaurants, educational institutions etc.

– General

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Distribution• Area wise distribution & promotion schemes

• Focus on high traffic locations– Railway stations

– Bus stand

• Coke India distributes using 2 routes– Direct

– IndirectPlant

WarehouseDirect Route

Market

Indirect RouteDistributor

Market

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Cont.• 3 COBO Regions – 27 COBO units• 1 FOBO Region – 12 FOBO units

COBOCompany owned bottling operationsFOBOFranchisee owned bottling operations

}

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Distribution Structure

Direct Indirect

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Manufacturing Plant

Company Owned Depot

Primary

Retailers(Diamond / Gold / Bronze)

Customers

Secondary

Tertiary

Home Delivery Agent

COBO

FIFO3 Day

Inventory

Direct

On Order

&Ready Stock

Distribution Structure for Urban Market

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Distribution Structure

Direct Indirect

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Manufacturing Plant

Distributors

Secondary

Retailers(Diamond / Gold / Bronze)

Customers

Secondary

Tertiary

Requirements to become distributor:

• Capacity to hold 5 days stock

• FDA license

• Shop establishment certificate

• Electricity bill

• Address proof

• Bank statement

Indirect

Distributors cover:

500-600 outlets

FOBO

Distribution Structure for Rural Market

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COMPANY

COBO FOBO

WAREHOUSE

C & F DISTRIBUTOR

WHOLESELLER

SLUMS RETAILER

RETAILER CUSTOMER

CUSTOMER

SALESMEN SALESMEN

Distribution strategy of Pepsi India

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Distributors Functions PARAMETER

Bulk Breaking Depends upon location

Warehousing Storage & safety

Transportation Distributor to retailer

Market Information SourcingCustomer Intelligence

Competitor IntelligenceConsumer tastes & preferences

Maintaining a) Visual Merchandisingb) Banners, posters, etc.

a) Signage b) Interior ambience

c) Overall environment

• From company : discounts/incentives given at the end of the month

• From retailer : bad debts/run away

Problems faced by distributor

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Logistics

PARAMETERS

1) Average order sizea) Distributor to companyb) Retailer to Distributer

Based on Demand, Season

2) Order placementa) Distributor to companyb) Retailer to distributer

PhoneDistributor Representative

3) Transit Time 2 Days

4) Order frequency Daily

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PARAMETERS5) Inventory Maintained 1 day

6) Unsold/Damaged Merchandise Replaced

7) Technologya) A/C Keeping

b) Stock keepingc) Complaint Handling

8) Mode of Transportation(company to distributor)

Company vehicle

9) Transportation Expensesa) Company to Distributorb) Distributor to retailer

CompanyDistributor

10)Warehousinga) Storage Capacityb) Ownership

Minimum 30 m2

Owned / Rented

11) Stock keeping responsibility Stock keeper

Logistics

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On a tablet or

Blackberry

Flow of The Product

• Pre-seller goes on his route and books the orders

9am- 6pm

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Cannot take more

than order

• First vehicles leaves at 6am• All vehicles leave by 9.30am

6am-9.30am

Contd.

Only cash except for a

few

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Performance Management

• RED Strategy – Right Execution Daily• Tool to measure the performance of the

distributor in the outlet by setting some standard or parameter of execution.

• RED • Check Visi-Cooler Management• Availability of the product in the outlet• Check the activation in the outlet

• Market Developer checks 25 outlets a day and report to HCCBL on the score of 100.

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BCG MATRIX OF COCA COLA

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PRODUCT LIFE CYCLE

SALESPROFIT

Emerging

Growth

Maturity DecliningMoney

TimeCoca-Cola has more than Life Cycle , on which had a new products and in the same time they are on the Maturity stage

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Coca-Cola to go the 'healthy' way, launch Coconut water (10/03/2017)

Coca Cola acquired Zico a packaged coconut water company in 2013.Now it plans to launch in India .Research and testing is done for theIndian market as how consumers absorb the the packaged coconutWater.

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vio• Coca-cola is going to launch a new flavoured milk product called VIO.

• It will be available in two flavours — Kesar Treat and Almond Delight.

•  ”This was a strategic move as the dairy segment offers a huge opportunity considering that India’s average per capita consumption of milk is high and comparable to global averages”- by Venkatesh Kini, President, Coca-Cola India and South West Asia.

• Price will be Rs25 for 200ml.

• Vio will be available exclusively

across 500 Reliance Retail outlets.

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Coca Cola SLOGAN(56)

• 1886-Drink Coca Cola• 1917- Three Million a Day• 1923- Enjoy Thirst • 1956- Makes Good Things Taste Better

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SLOGAN IN INDIA• “Always the Real Things”• “Life is Good”(2001)• “Jo Chaho ho jaye, Coca-Cola enjoy!”(2003)• “Thanda Matlab Coca Cola!”(2006)• “Pio Sar Uthake”• “Kha Le Pee Le Jee Le”(2007) • “Brrrrrrrrrrr!!!”• "Open Happiness“(2009)• "Taste The Feeling“(2016)

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COMPETITORS OF COCA COLA• Coke’s major competitor is “PEPSI” and there is

no hesitation to say these because everyone knows that all the other cold drinks, coffee, tea are the competitors. Whereas according to Coke their direct competitor is “Tap Water”.

• Nestle and Shezan juices that do not pose a threat to Coke as yet but has the potential to do so as it is exploiting the natural aspect and health issues more and more to make people conscious about physical fitness Coke has launched “Diet Coke” to counter the physical fitness demands.

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PRICING STRATEGY

• The price of Coca Cola, despite being market leader is the same as that of its competitor Pepsi Cola.  

• Coca Cola’s objective is to target every consumer of the country so Coca Cola has to set its prices at such a level which no one can offer to its consumers.

• Therefore, Coca Cola charges the same prices as are being charged by its competitors. Otherwise, consumers may go for Pepsi Cola in case of availability of Coca Cola at relatively high price.

• Sometimes, Pepsi places its customers into some psychological pricing strategies by reducing a high priced bottle and consumers think that they save a lot of money from this.

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PORTER’S FIVE FORCES MODEL

Rivalry among

Competition

Threat of New Entry Entrants

Bargaining Power of Buyers

Threat of Substitute

Bargaining Power of Suppliers

low pressur

e

High pressur

e

Medium Pressure

High Pressur

e

Medium Pressure

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COMPETITIVE ADVANTAGE

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SWOT ANALYSIS

Strengths WeaknessesH

ow m

axim

ize

them

How

min

imiz

e th

eir

effec

t

1. Water Management2. Negative publicity3. Significant focus on

carbonated drinks4. Carbonated drinks have

bad physical effects

1. Global presence2. Brand awareness3. Logo famous4. Strong marketing and

advertising5. Customer loyalty6. Fantastic Marketing Strategy7. Bargaining power over

suppliers8. Strong distribution channels

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Opportunities Threats

1. Increasing demand for healthy food and beverage

2. Growth through acquisitions

1. Competition from PepsiCo2. Changes in consumer

preferences3. Water scarcity4. Negative health effect5. Saturated carbonated

drinks market

How

we

avoi

d th

em

How

we

capi

taliz

e th

emSWOT ANALYSIS

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Target market• Diet coke: weight consciousness

• Maaza: kids , juice loving people

• Sprite: young people

• Thums-up: confident, mature and uniquely masculine attitude people

• Fanta: girls, ladies

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Coca cola’s 3A• Availability• Affordability• Acceptability

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Availability• Once CCI entered the rural market it focused on

strengthening its distribution network there.• It realized distribution system used by the

company in the urban areas would not be suitable for rural areas.

• In the centralized distribution system the product was transported directly from the bottling plants to retailers.

• However later they realised that this kind of distribution is not going to work in rural areas because the cost of transport from bottling plant to retail in rural was huge.

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Affordability

• A survey conducted by CCI in 2001 revealed that 300ml bottles were not popular with the rural and semi urban residents where two persons often shared a 300ml bottle.

• It was also found that the price of Rs 10/- per bottle was considered too high by rural consumers.

• For these reasons, CCI decided to make some changes in the size of its bottles and price to win over consumers in the rural market.

• For this reason in 2002 CCI launch 200ml bottle for Rs5.

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Acceptability

the initiatives of CCI in distribution channel and pricing were supported by extensive marketing in the mass media as well as through outdoor advertising.

The company put up hoardings in the villages and painted the name coca cola on the compounds of the residences in the village.

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Rural Success

• Comprising 74% of the country’s population,41% of its middle class and 58% of its disposable income the rural market was an attractive target and it delivered results.

• Coke experienced 37% growth in 2003 in this segment versus the 24% growth seen in urban areas.

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Rural Market Scenario• With large population and low consumption , the

rural market represent a significant opportunity for penetration and a critical battleground for market dominance.

• In 2001 coca cola understood that to compete with traditional refreshment including lemon water, green coconut water, fruit juice, tea etc competitive pricing was essential.

• Coca cola india doubled its rural outlet from 80,000 in 2001 to 160,000in 2003 which increased market penetration from 13% to 25%.

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Rural initiative• It brought down its average price of its product

from Rs.10 to Rs.5 thereby bridging the gap between traditional refreshment and coca cola.

• It doubled the spend on doordarshan, increased price compliance from 30% to 50% in rural market and reduced overall cost by 40%.

• It also tapped local forms of entertainment like haat,annual fair and festive seasons and made huge investment in infrastructure for distribution and maketing.

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Financial analysis Ratio

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Objectives of Ratio Analysis• Standardize financial information for comparisons• Evaluate current operations• Compare performance with past performance• Compare performance against other firms or

industry standards

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TYPES OF RATIO• Financial Ratios:– Liquidity Ratios

• Assess ability to cover current obligations– Leverage Ratios

• Assess ability to cover long term debt obligations

• Operational Ratios:– Activity (Turnover) Ratios

• Assess amount of activity relative to amount of resources used– Profitability Ratios

• Assess profits relative to amount of resources used

• Valuation Ratios:• Assess market price relative to assets or earnings

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Liquid ratio

sLiabilitieCurrent AssetsCurrent :RatioCurrent

O/DBank - sLiabilitieCurrent Inventory-AssetsCurrent :RatioQuick

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Current RatioYear Coca Cola Pepsi Co

2007-08 0.92 1.312008-09 0.94 1.232009-10 1.28 1.442010-11 1.17 1.112011-12 1.05 0.962012-13 1.09 1.102013-14 1.13 1.242014-15 1.02 1.142015-16 1.24 1.312016-17 1.28 1.28

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Interpretation• standard ratio 2:1• It is a financial ratio that measures whether or not

a company has enough resources to pay its debt over the next business cycle (usually 12 months) by comparing firm's current assets to its current liabilities.

• The higher the current ratio is, the more capable the company is to pay its obligations.

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Quick RatioYear Coca Cola Pepsi Co

2007-08 0.58 0.892008-09 0.62 0.792009-10 0.95 1.002010-11 0.85 0.802011-12 0.78 0.622012-13 0.77 0.802013-14 0.90 0.932014-15 0.81 0.852015-16 0.89 1.052016-17 0.98 1.08

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Interpretation• Ideally, quick ratio should be 1:1.• If quick ratio is higher, company may keep too

much cash on hand or have a problem collecting its accounts receivable. A quick ratio lower than 1:1 may indicate that the company relies too much on inventory or other assets to pay its short-term liabilities.

• ability to use its quick assets to pay its current liabilities.

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Solvency ratio

EquityDebt :RatioEquity Debt

InterstEBIT :Ratio CoverageInterest

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Debt equity RatioYear Coca Cola Pepsi Co

2007-08 0.15 0.242008-09 0.14 0.652009-10 0.20 0.442010-11 0.45 0.952011-12 0.43 1.002012-13 0.45 1.062013-14 0.58 1.002014-15 0.63 1.372015-16 1.11 2.462016-17 1.29 2.67

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Interpretation • Debt –equity ratio should be 1:1.

• A lower debt to equity ratio usually implies a more financially stable business. Companies with a higher debt to equity ratio are considered more risky to creditors and investors than companies with a lower ratio

• Coke cola has maintained a healthy debt- equity ratio. The money generated for investors ( share capital) is more than enough to pay off their debts. Till 2013, Pepsi was just managing to pay of their debts through equity however in 2014, their debts are higher than share capital. They must have used their current assets to pay of their debts

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Interest coverage RatioYear Coca Cola Pepsi Co

2007-08 - -2008-09 17.98 22.342009-10 26.20 21.352010-11 20.43 10.122011-12 28.43 11.322012-13 30.75 10.242013-14 25.79 10.762014-15 20.31 10.632015-16 12.22 8.672016-17 12.10 7.37

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Interpretation • It measures a company’s ability to make interest

payments on its debt in a timely manner. • It calculates the firm’s ability to afford the interest

on the debt. If the computation is less than 1, it means the company isn’t making enough money to pay its interest payments or a company can’t even pay the interest on its debt. This type of company is beyond risky and probably would never get bank financing.

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PROFITABILTY RATIO• INVESTMENT- Return on capital employed= EBIT / capital employed

Return on Asset = PAT / Assets

Return on Equity = PAT / Equity

• MARGIN- Gross profit ratio=(Gross profit / net sales)*100

Net profit ratio =(PAT / net sales )*100

Operating exp ratio =(Operating exp / net sales)*100

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Return on capital employedYear Coca Cola Pepsi Co

2007-08 23.39 28.942008-09 19.35 25.342009-10 20.79 27.542010-11 26.69 19.712011-12 14.87 15.062012-13 14.27 13.852013-14 12.58 14.092014-15 9.86 14.242015-16 10.63 13.392016-17 9.53 15.51

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Interpretation • Return on capital employed measures how

efficiently a company can generate profits from its capital.

• A higher ratio would be more favourable because it means that more of profits are generated by each rupee of capital employed.

• The efficiency of Pepsi in using the money which is raised from share capital and loans is higher than that of coke. The efficiency of coke is gradually declining where as Pepsi is more consistent

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Return On AssetYear Coca Cola Pepsi Co

2007-08 16.33 17.492008-09 13.86 14.542009-10 15.30 15.662010-11 16.19 11.702011-12 10.72 9.142012-13 10.47 8.382013-14 9.53 8.862014-15 7.71 8.802015-16 8.07 7.782016-17 7.36 8.79

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Interpretation • It measures the net income produced by total assets during a

period by comparing net income to the average total assets.• It only makes sense that a higher ratio is more favourable to

investors because it shows that the company is more effectively managing its assets to produce greater amounts of net income.

• A positive ROA ratio usually indicates an upward profit trend as well.

• Both the companies are using their assets to good use. Pepsi has been more consistent with the usage of its assets since 3 years. There could be a possibility that Pepsi may not have purchased any asset and are using the same machinery and coke has seen a gradual decrease but they may have bought additional machinery whose benefits will be seen in the years to follow

 

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Gross Profit RatioYear Coca Cola Pepsi Co

2007-08 63.9 54.32008-09 64.4 52.92009-10 64.2 53.52010-11 63.86 52.052011-12 60.86 52.492012-13 60.32 52.222013-14 60.68 52.962014-15 61.11 53.692015-16 60.5 54.42016-17 60.7 55.1

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Interpretation • There should be sufficient gross profit to cover all

expenses and provide for profit. There is no norm or standard to interpret gross profit ratio.

• A higher ratio is considered better.• A consistent improvement in gross profit ratio over the

past years is the indication of continuous improvement.• Gross profit of coke is higher than that of Pepsi. This

implies that the COGS of coke is lesser than Pepsi. Cost of producing goods at coke is lesser than Pepsi. If Pepsi wants to expand they need to reduce their cost of production to avail high net profit

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NET Profit RatioYear Coca Cola Pepsi Co

2007-08 20.73 14.302008-09 18.18 11.872009-10 22.02 13.742010-11 33.63 10.932011-12 18.42 9.692012-13 18.78 9.432013-14 18.32 10.512014-15 15.43 9.772015-16 16.60 8.652016-17 15.59 10.07

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Interpretation • It measure the overall profitability of the business. • A high ratio indicates the efficient management of

the affairs of business.• The net profit of coke is way higher than that

of Pepsi. This is because the gross profit of coke was higher than Pepsi and expenses were similar to Pepsi. Pepsi should either increase their Gross profit or reduce their expenses to avail high profits

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TURNOVER RATIOS• Debtor turnover ratio= credit sales / average debtors • Inventory turnover ratio/stock turnover ratio = cost of goods sold / average

stock

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Debtor Turnover RatioYear Coca Cola Pepsi Co

2007-08 9.78 9.732008-09 9.97 10.582009-10 9.05 11.072010-11 8.58 10.572011-12 9.96 10.052012-13 9.92 10.102013-14 9.73 10.992014-15 9.85 16.252015-16 10.54 11.152016-17 10.74 11.21

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Interpretation • It measures a business' ability to efficiently collect its

receivables.• Higher ratios mean that companies are collecting their

receivables more frequently throughout the year.• Pepsi has a better debtor turnover ratio than

coke. It shows that Pepsi is more efficient in collecting money from their credit sales to debtors. However, Pepsi in the last year took a steep jump by collecting money 16 times in a year. Coke has been consistent with its efficiency of 9 times in a year

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Inventory Turnover RatioYear Coca Cola Pepsi Co

2007-08 5.39 8.562008-09 5.16 8.462009-10 4.88 7.822010-11 5.07 8.872011-12 6.34 8.782012-13 6.00 8.452013-14 5.63 8.942014-15 5.61 9.432015-16 5.83 9.682016-17 5.90 10.37

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Interpretation • It measures company's efficiency in turning its inventory into

sales. Its purpose is to measure the liquidity of the inventory.• Low inventory turnover ratio is a signal of inefficiency, since

inventory usually has a rate of return of zero. It also implies either poor sales or excess inventory

• High inventory turnover ratio implies either strong sales or ineffective buying (the company buys too often in small quantities,

• Coke is able to convert its inventory into sale more efficiently than Pepsi. Coke has an efficiency of 5 and Pepsi has an efficiency of 9. However, there could be a possibility that coke is maintaining low level of inventory and thus getting it liquidated much faster than Pepsi. Also, Pepsi could have maintained a high level of inventory way beyond the demand.

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Earnings Per ShareYear Coca Cola Pepsi Co

2007-08 1.28 3.412008-09 1.25 3.212009-10 1.47 3.772010-11 2.53 3.912011-12 1.85 4.032012-13 1.97 3.922013-14 1.90 4.322014-15 1.60 4.272015-16 1.67 3.672016-17 1.49 4.36

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Interpretation • It is the amount of money each share of stock would

receive if all of the profits were distributed to the outstanding shares at the end of the year.

• Higher earnings per share is always better than a lower ratio because this means the company is more profitable and the company has more profits to distribute to its shareholders

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Conclusion• Coca-Cola is performing much better than Pepsi

co. Coca-cola’s net profit ratio and debt equity ratio is better than Pepsi co.

• We cannot neglect the fact that pepsi has been consistent with its performance over the past years. How ever it will take some time to compete with the beverage giant, coke.

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BALANCE SHEET • coca cola finance (Autosaved).xlsx• Pepsi Co India..xlsx

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RECOMMENDATION • Coca-Cola should try to have product

differentiation for carbonated drinks through R&D • Coca-Cola should spend more R&D on avoiding

bad physical effects of carbonated drinks. • Coca-Cola should focus on non carbonated drinks

as bottled water and healthy drinks• Coca-Cola should start producing new products

rather than beverages as food and snacks to enter a new life cycle

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SPECIAL THANKS TO• https://www.forbes.com/pictures/fgdi45emghk/4-coca-cola/

#358c8c0f301d

• http://www.coca-cola.co.uk/about-us/mission-vision-and-values

• http://www.nasdaq.com/symbol/ko/financials?query=balance-sheet

• http://timesofindia.indiatimes.com/business/india-business/Coca-Cola-to-enter-dairy-drinks-segment-in-India/articleshow/50720996.cms

• http://financials.morningstar.com/ratios/r.html?t=PEP

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THANK YOU