Coco Cola Case
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 Vitingo (a beverage fortified with micro-nutrients).
The product for our study is COCO COLA (COKE).
The beverage industry is a major driver of economic growth. A National Council of Applied Economic Research (NCAER) study on the carbonated soft-drink industry indicates that this industry has an output multiplier effect of 2.1. This means that if one unit of output of beverage is increased, the direct and indirect effect on the economy will be twice of that. In terms of employment, the NCAER study notes that “an extra production of 1000 cases generates an extra employment of 410 man days.”
1) What are the determinants of demand of the product that the company is producing?
Demand is the quantity of a good that customers are willing and able to purchase during a specified period under a set of economic conditions. The demand of a product depends on various factors. The law of demand states that when the price of a good falls the quantity demanded increases and vice versa, cetris paribus. The other factors other than price which affects the demand of a product are consumer incomes , price of related goods , time period , consumer taste and preferences , consumer expectations about future prices, advertisements etc .
The
The product for our study is COCO COLA (COKE).
The beverage industry is a major driver of economic growth. A National Council of Applied Economic Research (NCAER) study on the carbonated soft-drink industry indicates that this industry has an output multiplier effect of 2.1. This means that if one unit of output of beverage is increased, the direct and indirect effect on the economy will be twice of that. In terms of employment, the NCAER study notes that “an extra production of 1000 cases generates an extra employment of 410 man days.”
1) What are the determinants of demand of the product that the company is producing?
Demand is the quantity of a good that customers are willing and able to purchase during a specified period under a set of economic conditions. The demand of a product depends on various factors. The law of demand states that when the price of a good falls the quantity demanded increases and vice versa, cetris paribus. The other factors other than price which affects the demand of a product are consumer incomes , price of related goods , time period , consumer taste and preferences , consumer expectations about future prices, advertisements etc .
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