Table of Contents

Introduction: ................................................................................................................................................. 2
Company overview: ...................................................................................................................................... 3
HISTORY OF COCA COLA ............................................................................................................................ 3
TODAY COCA COLA AS COMPANY: ............................................................................................................... 5
VISION STATEMENT .................................................................................................................................. 5
MISSION STATEMENT ................................................................................................................................... 5
PESTAL ANALYSIS: ......................................................................................................................................... 6
Industry Analysis (Coca Cola): ....................................................................................................................... 9
EFE Matrix of Coca-Cola Company .............................................................................................................. 15
Competitive Profile Matrix of Coca-Cola .................................................................................................... 17
IFE Matrix of Coca-Cola Company: .............................................................................................................. 19
SWOT Analysis of Coca-Cola Company: ...................................................................................................... 20
Strengths: ................................................................................................................................................ 20
Weaknesses: ........................................................................................................................................... 21
Opportunities: ......................................................................................................................................... 21
Threats: ................................................................................................................................................... 22
Recommendations: ..................................................................................................................................... 23







Introduction:
Founded in 1886, the Coca-Cola Company is the worlds leading manufacturer, marketer, and
distributor of nonalcoholic beverage concentrates and syrups. The companys corporate
headquarters are in Atlanta, with local operations in over 200 countries around the world.
Although Coca-Cola was first created in the United States, it quickly became popular wherever
it went. Our first international bottling plants opened in 1906 in Canada, Cuba and Panama,
soon followed by many more. Today, Coca-Cola has a portfolio of more than 3,000 beverages.
Coca-Cola has 92,400 employees worldwide. More than 70 percent of our income comes from
outside the U.S., but the real reason we are a truly global company is that our products meet
the varied taste preferences of consumers everywhere.
The scope of the project is to discuss the marketing strategies adopted and applied by Coca
Cola, Pakistan. From the last month or so our group is in the process of a continuous research
on marketing functions and strategies adopted by Coca Cola. These marketing functions
mainly include the marketing mix i-e, Product Strategy, Pricing Strategy, Pricing Tools and
Strategies and Placement and Distribution Strategies as well as other market strategies.
Moreover the project also discusses the analysis of competition, market growth and trend,
opportunity analysis and strategies for creating competitive advantage adopted by Coca Cola.
We will like to add that the project will provide the readers and listeners very high profile
information about the marketing strategies as a whole and also about the Coca Cola Company.
In the end we hope that the project will result very profitable for the readers and Coca Cola.
Your feedback in the end either critical or substantial will be very highly appreciated.



Company overview:

HISTORY OF COCA COLA
Coca-Cola was first introduced by John Syth Pemberton, a pharmacist, in the year 1886 in
Atlanta, Georgia when he concocted caramel-colored syrup in a three-legged brass kettle in his
backyard. He first distributed the product by carrying it in a jug down the street to Jacobs
Pharmacy and customers bought the drink for five cents at the soda fountain. Carbonated
water was teamed with the new syrup, whether by accident or otherwise, producing a
drink that was proclaimed delicious and refreshing, a theme that continues to echo today
wherever Coca-Cola is enjoyed.
Dr. Pembertons partner and book-keeper, Frank M. Robinson, suggested the name and penned
Coca-Cola in the unique flowing script that is famous worldwide even today. He suggested
that the two Cs would look well in advertising. The first newspaper ad for Coca-Cola soon
appeared in The Atlanta Journal, inviting thirsty citizens to try the new and popular soda
fountain drink. Hand-painted oil cloth signs reading Coca-Cola appeared on store awnings,
with the suggestions Drink added to inform passersby that the new beverage was for soda
fountain refreshment.
By the year 1886, sales of Coca-Cola averaged nine drinks per day. Pemberton grossed $50 and
spent $73.96 on advertising. Dr. Pemberton never realized the potential of the beverage he
created. He gradually sold portions of his business to various partners and, just prior to his
death in 1888, sold his remaining interest in Coca-Cola to Asa G. Candler, an entrepreneur
from Atlanta. By the year 1891, Mr. Candler proceeded to buy additional rights and acquire
complete ownership and control of the Coca-Cola business. Within four years, his
merchandising flair had helped expand consumption of Coca-Cola to every state and territory
after which he liquidated his pharmaceutical business and focused his full attention on the soft
drink. With his brother, John S. Candler, John Pembertons former partner Frank Robinson and
two other associates, Mr. Candler formed a Georgia corporation named the Coca-Cola
Company. The trademark Coca-Cola, used in the marketplace since 1886, was registered in
the United States Patent Office on January 31, 1893.
The business continued to grow, and in 1894, the first syrup manufacturing plant outside
Atlanta was opened in Dallas, Texas. Others were opened in Chicago, Illinois, and Los Angeles,
California, the following year. In 1895, three years after The Coca-Cola Companys
incorporation, Mr. Asa G. Candler announced in his annual report to share owners that Coca-
Cola is now drunk in every state and territory in the United States.
As demand for Coca-Cola increased, the Company quickly outgrew its facilities. A new building
erected in 1898 was the first headquarters building devoted exclusively to the production of
syrup and the management of the business. In the year 1919, the Coca-Cola Company was sold
to a group of investors for $25 million. Robert W. Woodruff became the President of the
Company in the year 1923 and his more than sixty years of leadership took the business to
unsurpassed heights of commercial success, making Coca-Cola one of the most recognized and
valued brands around the world.


TODAY COCA COLA AS COMPANY:
Today CCBPL is operated directly under the supervision of the Coca-Cola International based in
Atlanta Georgia State___ USA .It owns 8 plants all around in Pakistan. Coca Cola Company
offers the brand range as Coca Cola, Diet Coke, Fanta, Sprite and Kinley water in Pakistan.
VISION STATEMENT
Our vision guides every aspect of our business by describing what we need to accomplish in
order to continue achieving sustainable growth.
People: Be a great place to work where people are inspired to be the best they can be.
Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy
people's desires and needs.
Partners: Nurture a winning network of customers and suppliers, together we create mutual,
enduring value.
Planet: Be a responsible citizen that makes a difference by helping build and support
sustainable communities.
Profit: Maximize long-term return to shareowners while being mindful of our overall
responsibilities.
Productivity: Be a highly effective, lean and fast-moving organization.
MISSION STATEMENT
Mission statement is a statement of organizations purposes that what it wants to accomplish.
In order to achieve mission of increasing market share and maintaining good relations with our
customers all over the world, we wish to create value for all the constraints we serve, including
our consumers, our bottlers, and our communities. The Coca Cola Company creates value by
executing business strategy guided by four key beliefs:
Customer is king; Customer demand drives everything we do.
Brand Coca Cola is the core of our business.

We will serve consumers a broad selection of the nonalcoholic ready-to-drink beverages
they want to drink throughout the day.
We will be the best marketers in the world.
Everything we do is inspired by our enduring Mission:
To Refresh the World...in body, mind, and spirit.
To Inspire Moments of Optimism...through our brands and our actions.
To Create Value and Make a Difference...everywhere we engage.
PESTAL ANALYSIS:

POLITICAL FACTOR:
The political environment of Pakistan affects the Coca-Cola beverages and Coca-Cola Export
Corporation, to some extent. For instance, the political instability in Pakistan causes trade and
import policies to change rapidly as the government changes which causes many problems in
the import of raw materials. Trade barriers such as tariffs and duties on the import of syrup
(concentrate) from USA increases the operational cost. A relaxation has been given by the
current government. So the situation for the beverage industry is getting better day by day for
the last couple of years. Also the policies have been more or less constant and also the
emaciation of free trade zones by the government will help the Coca-Cola to flourish more
effectively in Pakistan.
ECONOMIC FACTOR:
The economic condition of Pakistan has not been stable for a long time but The recent
economic indicators suggest that the economy is growing and macroeconomic issues are
getting sold but at the same time there has not any marked increase in the consumer buying
power (inflation). When the recession occurs the price of bottles are dropped down to increase
the sales and to achieve the targets of the company. So overall economy of Pakistan directly
affects the cost and price of the Coca-Cola Company.
On the contrary in the all parts of the country coke is viewed as the partner in the major events
like Basant and promoter of music thereby making a place in the hearts of young generation of
the society.
SOCIAL FACTOR:
In 2000, when eastern Pakistan suffered its worst droughts, The Coca-Cola system initiated a
famine-relief program to help victims and was the first private-sector company to assist. The
Coca-Cola system in Pakistan initiated a voluntary Hajj program that allows one employee from
each plant, selected through a draw, to be sent on the Holy Pilgrimage to Mecca at the
Companys expense.
TECNOLOGICAL FACTOR:
The making of Coke, Fanta, Diet coke and sprite involves "mixing and blending, filling and
capping ". For this process, concentrate or syrup is imported from USA and is then mixed in the
local plants .Machinery for the local plants was also imported but now the coca-cola company
follows Local content law as most of the spare parts are locally made. The system is automated
and equipment is fully operational and up-to-dated. In technology Coca-cola company is far
ahead than the several other local beverage brands of Pakistan. It is a Highly Technical 10 Steps
Process. Which are all done in the local plants using local content law.
LEGAL FACTOR:
Changes in laws and regulations, including changes in accounting standards, taxation
requirements, (including tax rate changes, new tax laws and revised tax law interpretations)
and environmental laws in domestic or foreign jurisdictions.
ENVIRONMENTAL FACTOR:
We have always sought to be sensitive to the environment, we must use our significant
resources and capabilities to provide active leadership on environmental issues, particularly
those relevant to our business. We want the world we share to be clean and beautiful. We are
always innovating to bring you different delicious beverages. This same spirit of innovation
comes alive in our environment programs. Were committed to preserving our environment,
from use of more than $ 2 billion (U.S) a year in recycling content and suppliers, and
environment
Management initiatives, are down to very local neighborhood collection and beautification
efforts. Heres a sample of what were doing in different communities around the world
regarding the conservation of water and natural resources, climate changes, waste
environment education.
The Coca-Cola system in Pakistan operates through eight bottlers. Four of which are majority-
owned by Coca-Cola Beverages Pakistan Limited (CCBPL). Demographic environment.
DEMOGRAPHIC FACTOR:
Demographic environment of any country is having a great influence on the purchasing pattern
of consumers. It involves age, gender, race, occupation, location and density of population. It
varies from country to country. Coke in Pakistan is focusing on the demographic variables of its
customers in order to create a positive image in their minds and position their brand also. For
example coke is having its focus on the mobile generation who are born in 1980s.
GLOBAL ENVIRNOMENT FACTOR:
A large part or our relationship with the world around us is our relationship with the physical
world. While we have always sought to be sensitive to the environment, we must use our
significant resources and capabilities to provide active leadership on environmental issues,
particularly those relevant to our business. We want the world we share to be clean and
beautiful. We are always innovating to bring you different delicious beverages. This same spirit
of innovation comes alive in our environment programs. Were committed to preserving our
environment, from use of more than $ 2 billion (U.S) a year in recycling content and suppliers,
and environment.
Industry Analysis (Coca Cola):

Five forces model is a framework for the industry analysis and development of business
strategy. Three (3) of Porters five (5) forces refers to rivalry from external/outside sources such
as micro environment, macro environment and rest are internal threats. It draws ahead
Industrial Organization economics to develop five forces that conclude the competitive
intensity and consequently attractiveness of a market place or industry. Attractiveness in this
framework refers to the generally overall industry profitability. An "unattractiveness" in
industry is one in which the mixture of these five forces proceed to constrain behind overall
profitability. An extremely unattractive industry would be one moving toward "pure
competition", in which existing profits for all companies are moving down to zero.
1. The threat of the entry of new competitors
Advertising and Marketing
Soft drink industry needs huge amount of money to spend on advertisement and marketing. In
2000, Pepsi, Coke and their bottlers invested approximately $2.58 billion. In 2000, the average
advertisement expenditure per point of market share was $8.3 million. This makes it
exceptionally hard for a new competitor to struggle with the current market and expand
visibility.
Customer Loyalty/ Brand Image
Pepsi and Coke have been investing huge amount on advertisement and marketing throughout
their existence. This has resulted in higher brand equity and strong loyal customers base all
over the globe. Therefore, it becomes nearly unfeasible for a new comer to counterpart this
level in soft drink industry.
Retail Distribution
This industry provides significant margins to retailers. For example, some retailers get 15-20%
while others enjoy 20-30% margins. These margins are reasonably enough for retailers to
entertain the existing players. This makes it very difficult for new players to persuade retailers
to carry their new products or substitute products for Coke and Pepsi.
Fear of Retaliation
It is very difficult to enter into a market place where already well-established players are
present such as Coke and Pepsi in this industry. So these players will not allow any new entrants
to easily enter the market. They will give tough time to new entrants which could result into
price wars, new product line, etc in order to influences the new comers.
Bottling Network
In this industry manufacturers have franchise contracts with their presented bottlers that have
privileges in a definite geographic area in eternity such as both Pepsi and Coke have contracts
with their presented bottlers. These contracts forbid bottlers from taking on new competing
brands for similar products. Latest consolidation between the bottlers and the backward
integration with Coke buying considerable numbers of bottling firms, it makes very difficult for
new player to contract with bottlers agreeable to distribute their brands. The alternative is that
new entrances build their bottling plants, which will need intense capital and exertion. Because
in 2000 new bottling plant needs capital of $80 million.
2. Rivalry among the competitors
The industry is almost dominated by the Coke and Pepsi. This industry is well known as a
Duopoly with Coke and Pepsi as the companies competing. These both players have the
majority of the market share and rest of the players have very low market share. Otherwise;
competition is comparatively low to result any turmoil of industry structure. Coke and Pepsi
primarily are competing on advertising and differentiation rather than on pricing. This resulted
in higher profits and disallowed a decline in profits. Pricing war is nevertheless experienced in
their global expansion strategies.


Composition of Competitor
Except the Coke and Pepsi other competitors are of unequal size especially in local markets.
Coke and Pepsi both players have the majority of the market share and rest of the players have
very low market share.
Scope of Competition
Scope of competition in this industry is generally global; Coke and Pepsi are approximately
presents in 200 countries.
Market Growth Rate
The soft drinks business will not see growth in near future, with the smoothie and bottled
water sectors mainly hit by a decline in 2008, and across all sectors volume declined by 1.1
percent.
Fixed Storage Cost
This industry needs huge manufacturing plants and contracts with bottling network companies.
These contracts make sure that bottlers must have standard manufacturing plant; these plants
need huge capital and exertion.
Degree of differentiation
Marketing and Product differentiation have become more significant. Coke and Pepsi mainly
are competing on advertising and differentiation rather than on pricing. Coke has diverse
advertisement campaigns according to conditions. Coca-Cola is recognized as the best-known
brand name in the globe. More prominently, its consumers would not do without it, and have
established a loyalty.
Strategic Stake
Cokes core operation is the manufacturing and distribution both for itself and beneath
franchise, of non-alcoholic beverages and related products. Because of the strategic stake the
main brand of the Coke has been around for a lot of years.
3. The threat of substitute products
This industry is enriched with enormous statistics of substitutes such as: water, tea, beer, juices,
coffee, etc presented to the end-consumers. But all the suppliers of these substitutes need
massive advertising, brand equity, brand loyalty and making sure that their brands are
effortlessly accessible to the consumers. Most of the substitutes cannot counterpart the
existing players offers or diversify business by offering new product lines of the substitute
products to safeguard themselves from rivalry.
Aggressiveness of substitute products in promotion
Soft drink industry companies spend huge amount of money on advertisement and marketing
to differentiate their products from others and also create brand equity, base of loyal
customers and increase visibility.
Switching Cost
Switching cost of the substitute products is very low so consumers can easily shift towards the
substitute products.
Perceived price/ value
Perceived price/value in this industry is very low because all products are comparatively same
and are only differentiated by promotional activities.
4. The bargaining power of Customers (Buyers)
The most important buyers for the Soft Drink industry are fast food fountain, vending,
convenience stores, food stores, restaurants, college canteens and others in the categorize of
market share. The profitability/revenue in each of these segments obviously demonstrates the
bargaining power of the buyers to pay different prices.



Fast Food Fountain
Pepsi and Coke mainly regard this segment as Paid Sampling due to small margins. This
division of buyers is the slightest profitable because of the high bargaining power of the
buyers. The bargaining power of the buyers is high because they purchase in bulks.
Vending Machines
Vending Machines provide products to the customers in a straight line with enormously no
power with the buyer.
Convenience Stores
This segment is tremendously fragmented and has no bargaining power due to which it has to
pay superior prices.
Food Stores
This segment of buyers is fairly merged with few local supermarkets and numerous chain
stores. Since this segment presents best shelf space it demands lower prices.
5. The bargaining power of Suppliers
Most of the raw materials desirable to manufacture soft drink are basic merchandise such as
flavor, color, caffeine, sugar, and packaging etc. The suppliers of these commodities have no
bargaining power over the pricing due to which the suppliers in soft drink industry are relatively
weak.
Number of important Suppliers
Raw materials for soft drink are basic commodities which are easily available to every producer
and have low cost which makes no difference for any supplier.
Switching cost
All the raw material ingredients are basic merchandize and easily accessible to manufacturers.
Switching cost to the suppliers is very low; manufactures can easily shift towards the other
suppliers.
BCG Matrix



CASH COWS
Fanta and Sprite are the products, which the Coca Cola Company can never think of stop
producing. It is the one which make the coke company a huge success; it was one product
which gives billions of dollars as revenue from world over.
QUESTION MARK
Products that are still not a big hit as they havent consumed much time yet. Sprite 3G, Sprite
Zero, Diet Coke and Kinley are the examples of these question marks as the question marks as
DOGS
A product that has not worked good or a product which has been a source of loss. flavored
Sprite 3g is one product that was not a big hit.







Proposed Strategy-Formulation Analytical Framework

EFE Matrix of Coca-Cola Company

External Factor Evaluation (EFE) matrix is a strategic-management device which is frequently
used for evaluation of current business environment. The EFE matrix is a superior instrument to
prioritize and visualize the opportunities and threats that a company is facing. An external
factor in the EFE Matrix comes from social, political, legal, economic and other external forces.
An example of external factor evaluation (EFE) matrix is given for the Coca-Cola Company.
Steps in the Construction of EFE Matrix
In the first column, lists down all the opportunities and threats. EFE matrix should include 10 to
20 key external factors.
In the second column assign weights to each factor that ranges from 0.0 (not important) to 1
(most important). The total weights must sum to 1.00 (It should be noted that the importance
of weights depend upon the probable impact of factors on the strategic position of the
company).
In the column three, rate each factor (ranging from 1 to 4) on the basis of companys response
to that factor. (Here, 1 shows poor response, 2 shows average response, 3 shows above
average response and 4 shows superior response).
In the column four, calculate the weighted score by multiplying the each factors weight by its
rating.
Find the total weighted score by adding the weighted score for each variable.







External Factor Evaluation Matrix of Coca-Cola Company

By adding the weighted score of various opportunities and threats of Coca-Cola Company, we
get the total weighted score of 3.05. Here it should be noted that the highest possible total
weighted score of a firm is 4 whereas the lowest possible total weighted score is 1. The total
weighted score remains in the limit of 1 to 4 regardless of the total number of opportunities
and threats. Similarly, the average total weighted score is 2.5. If the total weighted score of a
company is 4, it means that the company is effectively taking advantage of existing
opportunities and is also able to minimize the risk. On the other hand, the total weighted score
of 1 show that firm is not able to take advantage of current opportunities or avoid external
threats.
In the case of Coca-Cola Company, the total weighted score is above average, which means that
the Coca-Cola Company strategies are effective and the company is taking advantage of existing
opportunities along with minimizing the potential adverse effects of external threats.
Competitive Profile Matrix of Coca-Cola

A competitive profile matrix (CPM) categorizes a firms main rivals and its particular strengths
and weaknesses in relation to a design firms strategic position. In Competitive Profile Matrix an
organization assess itself as well its rivals by giving rating and weights to the critical/key success
factors. It then recognizes its strategic competitive place with its major rivals. A firm which
obtains superior weighted points would have the strong competitive place than its rivals. The
construction of competitive profile matrix for the Coca-Coal company is given below:
Steps in the construction of CPM
Here we will be using weighted rating system for the construction of competitive profile matrix.
Some of the important steps involved in the construction of competitive profile matrix are
given below:
In the first column, lists down all the key success factors of Industry (usually from 6 to 10).
In the second column, assign weights to each factor ranging from 0.0 (not important to 1 (most
important). Greater weights should be given to those factors which have grater influence on
the organizational performance. The sum of all weights must equal 1.
Now rate each factor ranging from 1 to 4 for all the firms in analysis. Here, rating 1 represents
major weakness, rating 2 shows minor weakness. Similarly, rating 3 indicates minor strength
whereas rating 4 shows major strength. It means that weakness must receive 1 or 2 rating while
strength must get 3 or 4 rating.
Calculate weighted score by multiplying each factors score by its rating.
Find the total weighted score of all the firms by adding the weighted scores for each variable.
Competitive Profile Matrix for the Coca-Coal Company

The competitiveness of a company can be assessed on the basis of its general strength rating. If
the dissimilarity among firms overall rating and the points of lower-rated rivals is greater then
the firm has greater net competitive advantage. Alternatively, if the dissimilarity among a firms
overall rating and the points of higher-rated rivals is larger than the company has net
competitive disadvantage. In the above example, CPM Matrix demonstrates that Coca-Cola is
the market leader and dominates its rivals with highest points of 3.74. Pepsi is the runner up
with 3.42 points and Cadbury Schweppes is the weakest rival among these three with the score
of 2.80. This Matrix also shows that Coca-Cola is strong in all the aspects of rivalry and has
strong position in the market place.



IFE Matrix of Coca-Cola Company:

Internal Factor Evaluation (IFE) matrix is a strategic management instrument for assessing main
strengths and weaknesses in useful areas of a company. IFE matrix also gives a foundation for
recognizing and assessing associations among those parts. The IFE matrix is utilized in strategy
formulation. An example of internal factor evaluation matrix is given for the Coca-Cola
Company.
Steps in the Construction of IFE Matrix
In the first column, lists down all the strengths and weaknesses. IFE matrix should include 10 to
20 key internal factors.
In the second column, assign weights to each factor ranging from 0.0 (not important to 1 (most
important). Greater weights should be given to those internal factors which have grater
influence on the organizational performance.
The sum of all weights must equal 1.
In the third column, rate each factor ranging from 1 to 4. Here, rating 1 represents major
weakness, rating 2 shows minor weakness. Similarly, rating 3 indicates minor strength whereas
rating 4 shows major strength. It means that weakness must receive 1 or 2 rating while strength
must get 3 or 4 rating.
In the fourth column, calculate weighted score by multiplying each factors score by its rating.
Find the total weighted score by adding the weighted scores for each variable.


SWOT Analysis of Coca-Cola Company:
Coca-Cola is the worlds largest soft-drink company which manufactures and markets non-
alcoholic beverage concentrates and syrups. Besides the well known Coca-Cola and Coke
brands the company offers more than 500 brands in over 200 countries or territories and serves
1.6 billion servings each day. It is headquartered in Atlanta, Georgia.
Strengths:
1. Coca-Cola is the worlds most valuable brand and has strong brand loyalty.
2. Wide variety of Coca-Cola products is sold in the restaurants, stores and vending
machines over 200 countries.
3. Coke is the dominant market leader of the global soft-drink industry right through the
20th century.
4. Coke primarily competes on advertising and differentiation and has the high market
share.
5. Coca-Cola has enormous distribution and production facilities of non-alcoholic
beverages and related products.
6. Joint venture with Nestle has resulted in the formation of Beverage Partners Worldwide
(BPW).
7. The company has strong financial position and profits throughout the history. Its
average ROE (return on equity) for the past five years is 37.08% whereas its ROC (return
on capital) is 33.6%.
8. Coca-Cola has the heavy advertising and promoting activities.
9. More than 70 percent of revenue comes from outside the United States.
10. Enormous number of loyal customers and brand equity all over the world.


Weaknesses:

1. New coke formula leading to a backlash which results in bad image of coke.
2. The company is facing high burden of external debts for the last few years. In 2002,
long-term debt of the company was 2700 million dollars.
3. Product offering is restricted to beverages.
4. In November 2009, because of a dispute over wholesale prices of Coca-Cola goods,
Costco blocked the replenishment of their shelves with Diet Coke and coke.
5. Coca-Cola has discontinued its many products after few years of launching such as New
Coke, Coca-Cola with Lemon, Coca-Cola with Lime, Coca-Cola Blak, etc. which result in
bad image of the brand.
6. Coke has taken less aggressive market standing in todays changing economic
surroundings.
Opportunities:

1. Bottled water drinking has increased 11 percent.
2. Consumers prefer to drink new smaller beverage products that are not sold on a mass
scale.
3. One of the biggest opportunities is to diversify into the non-carbonated drinks such as
coffee, water, juices, etc.
4. The company can offer the hygienic products due to increasing number of health
conscious consumers.
5. European market and China show marvelous potential for growth.
6. The economic conditions are improving globally after economic meltdown 2007-10.
7. Diversify into complementary food products which will ultimately increase the drink
consumption.
8. Coca cola should increase its partnership with fast food chains.
Threats:

1. There is Low growth rate in the carbonated drinks market in North America which is the
main market of Coca-Cola.
2. There is a problem with Coke to raise its prices by an edge that would permit it to keep
pace with inflation.
3. Huge numbers of substitutes such as beer, water, juices, coffee etc are accessible to the
end consumers.
4. Pepsi is the strong competitor which competes with advertising and differentiation.
5. Since the consumer lifestyle is changing rapidly and they are becoming more health
conscious therefore there demand is shifting towards non-carbonated products such as
juices, tea and bottled drinks.
6. Many smaller players are furious competitors which are also creating the competition
severe.
7. The prices of raw material such as sugar and metals used in manufacturing of cans are
increasing rapidly.
8. Carbonated drink revenues have been decreasing due to association of sugar to obesity
and lofty fructose lump syrup to heart disease.
9. Pepsi has more diversified selling beverage and food products as compared to the Coca
Cola.
10. Coca Cola is facing various regulations in respective countries around the globe.
Recommendations:
As PepsiCo has a horizontal expansion, Coca-Cola should have a vertical expansion. Within the
products in PepsiCo, only 37% of products are beverages. Coca Cola should focus on beverages
business and related businesses, e.g. bottling, sugar plantation or even tin can and glass
recycling business.
Coca-Cola should provide industry leadership in the health and wellness area. It should produce
different kinds of products for different segments of the market. In baby boomers market,
Coca-Cola should focus on marketing tea and water beverage which contain less sodium and
sugar. In younger generation market, besides sport drink and energy drink, Coca-Cola can
produce organic beverages for younger people.
Availability of drinks is another factor that needs to be improved. Vending machines with new
technologies should be used which are more secure and have better storage space. With
vending machines in each and every shopping mall and streets where there are many
pedestrians, the sales are destined to rise. Better tools and technology should be used to
ensure that the shelves in the retail shops are always filled and the customers never have to
switch to the competitors drinks
Nowadays, environmental change is rapid. Coca-Cola should be sensitive of any new trend and
position itself as a unique brand in order to keep its competitive advantage.