CUEGIS :Coca-Cola

Introduction:
Coca-Cola is a carbonated soft drink sold in stores, restaurants and vending machines
internationally. The Coca-Cola Company claims that the beverage is sold in more than 200
countries. It is produced by The Coca-ColaCompany in Atlanta, Georgia, and is often referred to
simply as Coke or (in European and American countries) as cola, pop, or in some parts of the
U.S.,soda. Originally intended as a patent medicine when it was invented in the late 19th century
by John Pemberton, Coca-Cola was bought out by businessman As a Griggs Candler, whose
marketing tactics led Coke to its dominance of the world soft-drink market throughout the 20th
century. The company produces concentrate, which is then sold to licensed Coca-Cola bottlers
throughout the world.

The Coca-Cola Company has, on occasion, introduced other cola drinks under the Coke brand
name. The most common of these is Diet Coke, with others including Caffeine-Free Coca-
Cola,Diet Coke Caffeine-Free, Coca-Cola Cherry, Coca-Cola Zero, Coca-Cola Vanilla, and
special editions with lemon, lime or coffee

Cola Company is the world’s largest beverage company; The Coca-ColaCompany

markets four of the world’s top five soft drink brands Coca-Cola, diet Coke,Sprite and Fanta.
And now currently the company has offered two new products in this market, Sprite 3G and
Fanta Citrus. Sprite 3G is doing its business successfully and meeting the expectations of the
management by capturing market share of “Dew” quickly but on the other hand the second
newly introduced product is not meeting the expectations and still struggling to find out a proper
place in the market but it is expected that the company may stop its production of this product in
near future. Their beverage offerings encompass nearly 400 brands, including coffees and teas,
juices and juice drinks, sports drinks and waters as well as carbonated soft drinks. With
operations in more than 200 countries, they have a diverse workforce of approximately 50,000
individuals. Together with their subsidiaries and bottling partners, they strive to be an integral
and contributing member of each of the communities where they operate.

Coca-Cola Company (NYSE: KO) is a beverage retailer, manufacturer and marketer of non-
alcoholic beverage concentrates and syrups. The company is best known for its flagship product
Coca-Cola, invented by pharmacist John Stith Pemberton in 1886. The Coca-Cola formula and
brand was bought in 1889 by Asa Candler who incorporated The Coca-Cola Company in 1892.
Besides its namesake Coca-Cola beverage, Coca-Cola currently offers more than 500 brands in
over 200 countries or territories and serves 1.6 billion servings each day.[5]

The company operates a franchised distribution system dating from 1889 where The Coca-Cola
Company only produces syrup concentrate which is then sold to various bottlers throughout the
world who hold an exclusive territory. The Coca-Cola Company owns its anchor bottler in North
America, Coca-Cola Refreshments.

The Coca-Cola Company is headquartered in Atlanta, Georgia. Its stock is listed on the NYSE
and is part of DJIA, S&P 500 Index, the Russell 1000 Index and the Russell 1000 Growth Stock
Index. Its current chairman and CEO is Muhtar Kent.

The Coca-Cola Company is the world's leading manufacturer, marketer,and distributor of

nonalcoholic beverage concentrates and syrups, with world headquarters in Atlanta, Georgia.
The Company and its subsidiaries employ nearly 31,000 people around the world.
Syrups,concentrates and beverage bases for Coca-Cola, the Company's flagship brand, and over
230 other Company soft-drink brands are manufactured and sold by The Coca-Cola Company
and its subsidiaries in nearly 200 countries around the world.

By contract with The Coca-Cola Company or its local subsidiaries, local businesses are
authorized to bottle and sell Company soft drinks within certain territorial boundaries and under
conditions that ensure the highest standards of quality and uniformity.

History:International:
Coca-Cola laid the foundation of the beverage industry when it was formed in May 1886 in
Atlanta. However it was not until 1895 that the idea of selling coke in bottles was introduced.
With the passage of time Coca-Cola gained popularity and its product began to get recognized
internationally. Thus from its mere beginning in 1886 Coca-Cola has now been transformed into
a strong multinational with its product being currently recognized all over the world. Coca-Cola,
in fact, has now become one of the most famous and widely consumed brands in the world. It has
not only established its footings in the beverage industry but is currently heading the list of the
most financially sound companies in the world.
Pakistan:
Although Coca-Cola is not a new name for the local market, Coca-Cola Beverages Pakistan
Limited (CCBPL) began its operations on 26 May 1996 in Pakistan. Coca-Cola Beverages
Private LTD (CCBPL) is a joint venture between Coca-Cola International, Fraser and Neeves
Singapore and Package Ltd. Initially it acquired National Beverages LTD Karachi and later
acquired International Beverages LTD Hyderabad .In May 1996 Fraser and Neeves, a Singapore
based bottler of Coke, bought off the local bottlers in Karachi. Not long after it went on to
acquire the bottling plants in Hyderabad as well. Since then coke has made an impressive impact
on the local market by increasing its availability as well as its volume share. CCBPL has decided
to expand its operations in Pakistan by buying other bottlers all over Pakistan. Implementing
their plans of acquisitions of other plants they have recently acquired all the plants in Pakistan as
they are inclined to give more attention to increase the market share in Pakistani market.

Coca-Cola classic
Diet coke
Cherry cokE
Diet cherry coke
Minute maid orange
Minute maid Mango
Minute maid Pulpy
Sprite
Sprite 3G
Fanta

Mission and vision statements: Commented [1]: Mission Statement:

Mission Statement “To benefit and refresh everyone it touches and to
create values for our shared owners on a long term
Coca Cola Company’s mission statement is to maximize shareowner value over time. In order to bases by building a business the Coca Cola company
trademarks.”
achieve this mission, they are creating value for their consumers, bottlers, and their communities.
The Coca Cola Company creates value by executing comprehensive business strategies (mission Vision
All of us in Coca Cola Company wake up each morning
& vision & values, (2009) www.thecoca-colacompany.com). knowing that
Vision Statement every single one of the world’s 5.6 billion people will get
thirsty that day
To achieve sustainable growth, Coca cola has established a vision with clear goals: and we are the ones with the best opportunity to
Profit: Maximizing return to shareholders; refresh them. Our task is simple: to make coca cola
and other products available, affordable and
People: Creating great place to work where people are inspired to be the best they can be. Acceptable to them quenching their thirst and providing
Thomson, Gamble, and Strickland (2006) suggest that Coca Cola believes a reputation for them with a perfect moment of relaxation. If we do this,
if we make it possible for 5.6 billion people to escape
workforce diversity makes recruiting employees easier (talented employees from diverse coca cola.
backgrounds often seek out such company);
Portfolio: Bringing to the world a portfolio of beverage 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 (mission & vision & values,
(2009) www.thecoca-colacompany.com).
Change Commented [2]: http://lighthouseinsights.in/coca-cola-
From the late 1940s to the 1970s, the United States, like most of the world, changed at an branding-evolution.html/

unprecedented pace. The Coca-Cola Company also experienced its most dramatic changes in
marketing and merchandising since the advent of bottling in the late 1890s. World War II had
recast the world, and the Company faced a new, more complex global marketplace.
Packaging
Until the mid-1950s, the world of Coca-Cola was defined by a 6 ½-ounce hobble-skirt bottle or
bell-shaped fountain glass. But as consumers demanded a wider variety of choices, the Company
responded with innovative packaging, new technology and new products.
In 1955, the Company introduced the 10-, 12- and 26-ounce king-size and family-size bottles,
which were immediately successful. Metal cans, first developed for armed forces overseas, were
available on U.S. market shelves by 1960. Then, following years of research into plastic soft-
drink bottles, the Company introduced PET (Polyethylene Terephthalate) packaging in 1977 in
the 2-liter size.
Products
The Company also introduced new soft drinks to satisfy a widening spectrum of tastes. Born in
Germany, Fanta® was introduced in the United States in 1960; today the Fanta family of
flavored soft drinks has become one of the best-selling brands in the world. Sprite®, a lemon-
lime drink, followed in 1961, and in 1963 the Company introduced TAB®, its first low-calorie
beverage.

Change during the 1960s entailed more than new soft drinks. In 1960 the Minute Maid
Corporation merged with the Company, adding frozen citrus juice concentrates and ades under
the trademarks Minute Maid® and Hi-C® to the Company's array of beverages.
Advertising
Through the years, jingles and slogans have set the pace for Coca-Cola advertising. One of the
world's most famous advertising slogans, "The Cardboard advertisement from 1930 “Pause That
Refreshes," first appeared in The Saturday Evening Post in 1929. It was supported by "It's the
Refreshing Thing to do" in 1936 and 1944's "Global High Sign." The 1950s produced "Sign of
Good Taste," "Be Really Refreshed" and "Go Better Refreshed."

Many more memorable slogans followed, including "Things Go Better with Coke" in 1963. "It's
the Real Thing," first used in 1942, was revived in 1969 to support a new, tremendously
successful merchandising stance for Coca-Cola.

Fine illustrations by top artists including Norman Rockwell were featured in colorful ads that
projected the product's image in leading magazines. Noted artist Haddon Sundblom's popular
Santa Claus "portraits," which began in the 1930s, continued as holiday ads until the early 1960s.
Since the mid-1920s, radio had been the most important communication medium for Coca-Cola.
In the 1960s, the popular "Things Go Better with Coke" jingle became a hit radio spot, using
successful groups sang the jingle in their own musical styles.

The Company's advertising changed along with the world, reaching new groups of consumers
through new channels, most notably television. On Thanksgiving Day 1950, Edgar Bergen and
his sidekick, Charlie McCarthy, appeared on the first live television network show sponsored by
The Coca-Cola Company. As the medium evolved from program sponsorship to commercials
that ran during different shows, many famous celebrities advertised Coca-Cola.

Through the years, advertising for Coca-Cola has changed in many ways, but the message, like
the trademark, has remained the same.

How much change is Coca-Cola experiencing now, compared to other periods in its history?
Put it this way. I joined Coca-Cola in 1983, when we launched Diet Coke. That was a huge shift
for our company. Our Coca-Cola trademark was seen as sacred, so introducing an entirely new,
calorie-free, version was revolutionary, not only for Coca-Cola but for the whole market. Today,
we are making bold moves like this on a regular basis, responding to and anticipating rapid shifts
in consumer tastes and preferences. Our commitment to this comes from the top. Our incoming
CEO, James Quincey, is calling it "Our Way Forward", which describes how we are evolving
with consumers’ needs and desires, staying relevant in their lives and agile in a constantly
shifting environment.
"Today, we are making bold moves like this on a regular basis, responding to and anticipating
rapid shifts in consumer tastes and preferences."
Can you give an example of how consumers have changed?
I remember 20 or 30 years ago, people weren’t very interested in the ingredients or formulation
of our products – they didn’t look "inside the bottle". People tended to be more interested in how
the drink made them feel: was it refreshing, did it make them happy? These emotional and social
aspects are still important, but now people are more critical about what they eat and drink.
Consumers want less sugar and more products they regard as healthy, natural or with specific
functional benefits. We are responding by giving them the choices and the products they desire,
and also being much more open and transparent in talking about our products and ingredients,
balancing emotional values with easy-to-understand facts.
CHANGE ON GLOBALISATION:
What has Coca-Cola done in Western Europe in recent years to adapt to these new demands?
The best example is how we have responded to consumers’ preferences about sugar. In the last
10 years, we have removed 96,000 tons of sugar from our portfolio in Western Europe. That’s
384 billion calories. Put it another way, we have cut the average calories per litre by 12 percent
since 2007. We’re doing this by adapting the recipe of many of our products, like lowering
calories of Fanta and Sprite, or introducing new zero-sugar variants, like our all-new Coca-Cola
Zero Sugar. All in all, we have introduced 231 low or no-sugar products in Western Europe since
2010, giving us 375 low and no-sugar choices across our portfolio.
And we haven’t finished yet. We helped shape a new commitment by the association of
European soft drinks companies, UNESDA, to reduce the average added sugar content of still
and carbonated soft drinks by a further 10 percent by 2020. This is tripling the pace that sugar
and calories are being removed from soft drinks in Europe. As market leader, we have played a
central role in making this happen, and we’re proud to lead from the front.
What about meeting consumers’ needs with new products?
It’s not all about taking sugar and calories out of our existing brands. We are also introducing a
record number of new products and dramatically expanding our portfolio. In Western Europe, we
launched 48 new drinks in 2016, like our new organic tea, Honest Tea, in Great Britain, and our
adult sparkling brand, FÏNLEY, in France, Belgium and Netherlands and our new range of local
waters, ViO, in Germany. We are a drinks company with a broad offering, but there are still
many categories for us to invest in. We’d like to learn from and leverage our global successes to
do more in ready-to-drink tea and dairy-based drinks, for example. You’ll see even more activity
from us this year, with more than 150 new products due to hit the market in Western Europe.
"We have introduced 231 low or no-sugar products in Western Europe since 2010, giving us 375
low and no-sugar choices across our portfolio."
You talk about ‘inside the bottle’. What are you doing outside?
New and different drinks are just one side of "Our Way Forward". The other side of the coin is
all about providing smaller and more convenient packaging, so people can control their calories
more easily. You can see this with our new 150-ml cans for Coca-Cola, and our smaller 8-ounce
glass bottles (237 ml). You can also see it in the way we are making our low and no-sugar
options more visible and easier to find, by investing more in their marketing. A great example is
our One-Brand marketing strategy for Coca-Cola, which puts Coca-Cola Zero Sugar and Coca-
Cola light on the same "hero"level as Classic Coca-Cola. I believe the success of Coca-Cola Zero
Sugar in Western Europe has been a real marker of what is possible and we led that launch here
in Western Europe.
Is product labelling an important part of this approach?
Consumers now expect easy-to-find and understandable product information to guide their
choices. To help with this, we recently joined a coalition of six leading European food and drink
manufacturers – including Mars, Mondelez, Nestlé, PepsiCo and Unilever – to back a single
labelling scheme for use across the European Union, based on the easy to understand colour-
coded system currently used in Great Britain and Ireland. It helps consumers make healthier
choices, without the guesswork. It’s the right thing to do; if consumers say this scheme helps
them manage their calories better, then fine. Whatever helps people understand what’s in our
products, and make choices in a more confident way, is good for us.
Are you being forced to take these actions in reaction to soda tax legislation?
No. We’ve always wanted to give people the drinks they know and love. But now, as times
change, their desires change and we are changing with them. More people want to consume less
sugar, seek out healthier choices, enjoy smaller portions and have clearer information about what
they are putting in their bodies. We are embracing that change and recognising that it’s the
future. There are very legitimate public health concerns about obesity, especially in our markets
here in Western Europe, and as the industry leader, we have a responsibility to take real action
and be part of the solution. That’s why we are doing so much around adapting our recipes and
smaller portions, as we know these can tackle the problem efficiently, while also giving
consumers the things we know they want.
"If we stay focused on where consumers are going, investing in the categories of drinks that
people want, we will thrive."
How would you summarise the future for The Coca-ColaCompany?
There has been a lot of talk about our future as a total beverage company. That may not mean a
lot to people outside of our company, but it’s a big change in how we see ourselves. As we react
to changing consumer preferences and social changes, we need to ensure we are always focused
on selling what consumers want to buy. We need to stay ahead of trends and our consumers’
evolving tastes, and that means having a truly diverse range of brands that are focused on their
needs.
I’ll give you an example: I used to lead our business in Japan and over there Coca-Cola wasn’t
our largest brand by volume. The first was a coffee, the second a tea, and the third was Aquarius.
Coca-Cola was the name above the door, but there was so much more to our business. We made
sure we had the breadth of products that suited their needs, and it worked. That’s the way I see
the future... if we stay focused on where consumers are going, investing in the categories of
drinks people want, we will thrive.

Culture

Diversity is an integral part of who we are, how we operate and how we see the future.
Our inclusive culture is defined by our seven core values: leadership, passion, integrity,
collaboration, diversity, quality, and accountability. Our central promise at The Coca-Cola
Company is to refresh the world in mind, body, and spirit, and inspire moments of optimism; to
create value and make a difference.
Two assets give us the opportunity to keep this promise – our people and our brand.
The Coca-Cola Company leverages a worldwide team that is rich in diverse people, talent and
ideas.
As a global business, our ability to understand, embrace and operate in a multicultural world --
both in the marketplace and in the workplace -- is critical to our sustainability.
Our diversity workplace strategy includes programs to attract, retain, and develop diverse talent;
provide support systems for groups with diverse backgrounds; and educate all associates so that
we master the skills to achieve sustainable growth.
We work hard to ensure an inclusive and fair work environment for our associates, all of whom
undergo diversity training on a regular basis. We find ongoing dialogue leads to better
understanding of our colleagues, our suppliers, our customers, our stakeholders, and ultimately,
to greater success in the marketplace.

Ethics

Bhandari - the great

Globalisation
Coke, like many successful global companies, focuses on those regions with the greatest
potential for growth. Coke started branching out internationally in the 1920s but really began its
global expansion in the 1980s. This is when Coke implemented its strategic plan to gain entry
into untapped, previously hostile, or undeveloped environments. Let's look at Coke's gradual
geographical expansion, then we will address what strategies Coke implements when it wants to
capitalize on a new market.
Coke started with widening its production, primarily bottling facilities, in friendly areas like
Guam and Europe. As people became more familiar with Coke's products, the company decided
to expand to Australia, Austria, Italy, Norway, and South Africa. These were the areas that had
good relationships with the United States, which meant implementing trade, transportation, and
communications networks went a lot smoother.
Surprisingly, even World War II brought an increase in demand for Coke products. The federal
government worked out a deal with Coke to supply the troops with its products for no more than
a nickel a beverage. In preparation for widening its base, Coke focused on creating relationships
with global stakeholders, like the Olympics and United Nations. The Olympics, for example,
took Coke's name wherever the Games went.
By the 1970s, Coke also entered into partnerships with the Special Olympics, Tour de France,
NASCAR, and FIFA. As these sporting events broadened their fan base worldwide, Coke
followed. Enlarging its consumer base in the 1980s and 90s demanded more planning from
Coke. The company brought production operations to previously less stable areas like Russia,
Germany, India, and Vietnam. This is when Coke began looking to expand into China.
The 2000s brought about Coke's involvement in social issues. This is a different type of
marketing effort for the international team. The company provided relief related to the UN AIDS
initiatives, September 11th terrorist attacks, and earthquake relief in Haiti. Since this time, the
company has entered into additional philanthropic ventures, as well as sponsorships with the
NBA and co-marketing with popular television shows like American Idol.
To market to an international audience, Coke has adapted its marketing strategy. Coke's
international marketing team continues to look for ways that Coke can diversify its production,
marketing, and outreach methods.
Coca Cola sells its soft drink to more countries around the world than any other company.
Currently, there are only two countries where Coca Cola cannot be bought: Cuba has been
banned from selling Coca Cola since 1962 and people in North Korea have not been able to buy
the soft drink since the Korean War in 1950. Both countries are not allowed to officially trade
with the US.
The sugary black soda drink was first created in 1886 in Atlanta, Georgia. The company started
expanding in its early years and by 1900 it had spread to Asia and Europe.

Throughout World War II American troops were provided with Coca Cola and at that time it was
manufactured in over 60 factories around the world. It became a global symbol of Americanism.
Not everyone, however, welcomed Coca Cola. In the 1950s the French capturedtruckloads of
bottles and smashed them on the ground.
During the Cold War Coca Cola became a symbol of capitalism and the free world. It was not
allowed in the Soviet Union; however in 1979 it became an official sponsor at the 1980 World
Ice Hockey Championships in Moscow. After Mao Zedong had died, China opened itself to the
west and after ten years of talks Coca Cola became officially allowed for the first time in the
Communist era.
East Germans provocatively drank Coca Cola after the Berlin Wall came down when
Communism collapsed in the country in 1989.
In 1996 Coca Cola became the number one advertiser at the Summer Olympic Games which
were held in its home town, Atlanta.

In the Middle East the company fought hard to get back into the market after it had been banned
in Arab countries. This came aboutbecause Coca Cola sold their product to enemy Israel as well.
In contrast, Pepsi became more popular and dominated the Arabian market.
Recently Coca Cola has been allowed on sale again in Burma, or Myanmar, after sixty years of
abstinence, because of the military dictatorship that ruled the Asian country in the last six
decades. The trade embargo was lifted as the government started to move towards democracy.

There are now just two countries in the world where Coca-Cola cannot be bought or sold - at
least, not officially. They are Cuba and North Korea, which are both under long-term US trade
embargoes (Cuba since 1962 and North Korea since 1950).

Innovation
nnovation is at the centre of everything Coca Cola does. It is the powerful force behind their
3,000 juices, waters, sports drinks, sparkling beverages and energy drinks. It is the motivation
behind their environmentally-friendly packaging and refrigeration equipment. Innovation is what
makes Cokes cutting-edge marketing connect with consumers around the world every day.
Innovation is what keeps them thirsting for success.
In May, 1886, Coca Cola was invented by Doctor John Pemberton, a pharmacist from Atlanta,
Georgia. He concocted the formula in a three legged brass kettle in his backyard. Asa Candler,
having bought the rights to the drink upon Pemberton’s death, starts up The Coca Cola
Company. Within three years, Coke had spread to every state in the United States. In 1989, the
first bottling plant is opened, allowing wider distribution of Coke. By 1916, the trademark
contoured bottle was designed to differentiate Coke from its competitors. At the end of the
1960s, the number of countries with bottling operations had nearly doubled. As Coca Cola grew,
it began to differentiate it’s range of products.
COCA Cola is the best selling soft drink in the world. Countries like Mexico, Brazil, Japan and
China produces sales of 43%, followed by ‘The rest of the world’ and the ‘United States’ with
37% and 20% respectively. The company now has the rights to approximately 400 brands of
beverages, including its trademark Coca-Cola and Diet Coke soft drinks. Cokes products, like
any other, face competition on a global level. A few brands on the market competing with them
are Redbull, locozade, Mountain Dew and of course Pepsi.
Technology and Innovation
Innovation activity is a “team sport” relying on the combination of different resources and
opinions to bring success. It needs a good blend of innovative ideas, products and demands for
attaining outstanding achievements.
Package Innovation
The unusual contour shaped Coke bottle was the company’s first innovative idea to differentiate
itself from its competitors. Introduced in 2000, the Ultra Glass contour bottle is designed to
improve impact resistance, and reduce weight and cost. The innovative Ultra Glass bottles are
40% stronger, 20% lighter and 10% precent less expensive than traditional contour bottles.
Bottling Innovation
Coca-Cola’s bottling system is one of their greatest strengths. It allows them to conduct business
on a global scale while maintaining a local approach. The company’s bottling partners are
always local businesses, exerting a strong influence on economic development and actively
participating in community life through philanthropic activities. This innovative organisational
approach has allowed Coca Cola to gain economics of scale through the competent running of a
large scale franchising system for its bottling operations.
Vending Innovation
Automated refrigerator vending machines with the introduction of the open top metal coolers.
Today, new climate friendly coolers that reduce CO2 emissions. Using a CO2 refrigeration
syatem and HFC-free insulation foam, these reduce potential direct CO2 equivalent green house
gas emissions by approximately 99%.
Challenges/Opportunities
Before the 200 Olympics, there was a concerted online campaign which showed Coke in a bad
light environmentally and pushed Coke to buy green refrigeration for new units. The E-card was
used by the Cokespotlight campaign, a joint Greenpeace/Adbusters effort, which successfully
changed Coke’s policy on climate-killing refrigerants. Coke announced phase out plans for
damaging refrigeration technologies by the time of the 2004 Olympics. In 2008, Coke installed
no less than 6350 climate friendly coolers and vending machines in the Olympic Games venues
in Beijing and six co-host cities. This approach of combining natural refrigerants and energy
efficient technology is a great example of how a business can innovate and turn a challenge into
an opportunity. 40 million dollars was invested to the research for the HFC-free machines, and
more is continually poured into developing green technologies today. The company is also
involved in the wellbeing industry through proper investments in The Beverage Institute for
Health and Wellness
There are many factors, internal as well as external that impact the planning function of
management within an organization, and Coca-Cola is no exception. More than a billion times
every day, thirsty people around the world reach for Coca-Cola products for refreshment. Coca-
Cola is the most popular and biggest-selling soft drink in history, as well as the best-known
product in the world. The Coca-Cola franchise covers a population of approximately 398 million
people. Coca-Cola Enterprises employs approximately 72,000 people who operate 463 facilities,
54,000 vehicles and approximately 2.4 million vending machines, beverage dispensers and
coolers.

Strategy
Coca Cola’s trademark brand occupies a different position in BCG matrix based on the demand
& competitive position.
Thumps-up, Sprite, Fanta & Maaza are Stars as these brands have high market share but high
competition in their respective segment.
Kinley is question mark reason being low sales. Company is not able to distinctly position
Kinley due to the presence of lots of local players in the highly commoditized market resulting in
low sales.
The main brand Coca Cola is considered a cash cow because it has a single competitor in Pepsi
and has a fantastic presence across the world
Coke-diet, Tea & coffee brands are dogs since it’s not able to attract customers for this segment
and these are probably more long-term units and under establishment.
Distribution strategy in the Marketing strategy of Coca Cola
It uses several sales and distribution models depending on market, geographicconditions and the
customer’s profile:
(1) the pre-sale system, which separates the sales and delivery functions, permitting trucks to be
loaded with the mix of products that retailers have previously ordered, thereby increasing both
sales and distribution efficiency,
(2) the conventional truck route system, in which the person in charge of the delivery makes
immediate sales from inventory available on the truck,
(3) a hybrid distribution system, where the same truck carries productavailable for immediate
sale and product previously ordered through the pre-sale system,
(4) the telemarketing system, which could be combined with pre-sales visits and
(5) sales through third-party wholesalers of the products.
Brand equity in the Marketing strategy of Coca Cola
Coca Cola is the one brand which is recognized by everyone around the globe. When we talk
about brand equity then it is its value & it’s about stories, memories, associations, and human
connections (although of course, these connections would have been very carefully and
deliberately engineered by talented marketers over many years and countless board meetings).
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This is something that Coca-Cola has been the master of for over 100 years. This equity is
derived from people’s willingness to pay a premium for the brand and an unwillingness to accept
substitutes. Coca-Cola’s marketing strategy has always been to associate happiness, positivity
and the good life with their products, & that’s how they are able to create high TOMA (Top of
mind awareness).
Competitive analysis in the Marketing strategy of Coca Cola
Big Giants in the Non-alcoholic beverages segment have similar strategy & objectives which
means innovation & creative marketing campaigns can help the companies to differentiate from
each other. Competition from the local players is the other major issue that company is facing
now days. Pepsi is the single largest main competitor of Coca-Cola having products across the
segments.
Market analysis in the Marketing strategy of Coca Cola
Non-alcoholic beverages market is ever-growing industry & with the advent of growing Asian
markets & developing nations the consumption will be higher also due to the changing lifestyle,
economic conditions & changing buying habits. In this industry customer have got lots of
options ranging from water to tea/coffee to soft drinks, so chances of customer switching to
another brand is high. The only way to differentiate products & retain customers is the strong
brand building, and creating pull in the market.
Customer analysis in the Marketing strategy of Coca Cola – Coca cola targets a mass market.
And the customer expectation is low price, great taste, convenience & accessibility and various
options to choose from.

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SWOT:
Strengths in the SWOT of Coca Cola
1. Brand Equity – Interbrand in 2011 awarded Coca cola with the highest brand
equity award. Coca cola with its vast global presence and unique brand identity is
definitely one of the costliest brands with the highest brand equity.
2. Company valuation – One of the most valuable companies in the world, Coca cola
is valued around 79.2 billion dollars. This valuation includes the brand value, the
numerous factories and assets spread out across the world and the complete
operations cost and profit of Coca cola.
3. Vast global presence – Coca cola is present in 200 countries across the world.
Chances are, any country that you go to, you will find coca cola present in that
 market. This vast global presence of coca cola has also contributed to the building
of the mammoth brand name.
4. Largest market share – There are only 2 Big competitors in the beverage segment –
Pepsi and Coca cola. Out of these 2, coca cola is the clear winner and hence has the
largest market share. Amongst all beverages, Coke, Thumbs up, Sprite, Diet coke,
Fanta, Limca and Maaza are the growth drivers for Coca Cola.
5. Fantastic marketing strategies – Coca cola unlike Pepsi always tries to win peoples
heart. Where Pepsi’s target is continuously changing, and is targeted towards
youngsters, Coca cola targets people of all ages. The targeting is also done by
celebrities who are well liked – for example – Amitabh Bacchan, Sachin tendulkar,
Aishwarya Rai, Aamir Khan etc
6. Customer Loyalty – With such strong products, it is natural that Coca cola has a lot
of customer loyalty. The products mentioned above like Coca cola and Fanta have
a huge fan following. People will prefer these soft drinks over others. Because of
the good taste of Coca cola, finding substitutes becomes difficult for the customer.
7. Distribution network – Coca cola has the largest distribution network because of
the demand in the market for its products. On the other hand, due to this successful
distribution network, Coca cola has been able to command such a high market
presence.
8. Coca Cola has an incredible brand identity. It’s a home name by millions around the
world. You’ll come across at least one of their product in over 200 countries.
9. Because of their known name, they have strong customer loyalty. The particular taste of
Coca Cola makes it easy to identify and hard to find a substitute for their customers.
10. Coca Cola has a nearly $80 billion company evaluation. Sales saw an increase
when they launched their campaign of putting customer names on their bottles.
Prompting consumers to buy the product, take photos next to the bottles, and post the
photos onto social media sites.
Weaknesses in the SWOT of coca cola
1. Competition with Pepsi – Pepsi is a thorn in the flesh for Coca cola. Coca cola
would have been the clear market leader had it not been for Pepsi. The competition
in these two brands is immense and we don’t think Pepsi will give up so easily.
2. Product Diversification is low – Where Pepsi has made a smart move and
diversified into the snacks segment with products like Lays and Kurkure, Coca cola
is missing from that segment. The segment is also a good revenue driver for Pepsi
and had Coca cola been present in this segment, these products would have been an
additional revenue driver for the company.
3. Absence in health beverages – If you watch the news, you would know that obesity
is a major problem affecting people nowadays. The business environment is
changing and people are taking measures to ensure that they are not obese.
Carbonated beverages are one of the major reasons for fat intake and Coca cola is
 the largest manufacturer of Carbonated beverages. The inference is that the
consumption of beverages in developed countries might go down as people will
prefer a healthy alternative.
4. Water management – Coca cola has faced flak in the past due to its water
management issues. Several groups have raised lawsuits in the name of Coca cola
because of their vast consumption of water even in water scarce regions. At the
same time, people have also blamed Coca cola for mixing pesticides in the water to
clear contaminants. Thus water management needs to be better for Coca cola.
5. Coca Cola’s major competitor is Pepsi. But unlike Pepsi, which has branched away from
the Soda-only model of revenue, Coca Cola has yet to develop a food or snack. This puts
them behind Pepsi in terms of competition since Pepsi has Lays chips and other foods
under their belt.
6. People have become concerned with obesity and diabetes. Carbonated drinks are a big
influencer of these health complications. Coca Cola, as a major carbonated drink
manufacturer, can contribute to the obesity epidemic. They haven’t addressed or found a
healthier solution yet.

Opportunities in the SWOT of coca cola

1. Diversification – Diversification in the health and food business will improve the
offerings of Coca cola to their customers. This will also ensure that they get better
revenue from existing customers by cross selling their products. The supply chain
which is distributing their beverages can also distribute these snacks thereby
sharing the load of Supply chain costs.
2. Developing nations – Although developed nations have a high presence of Coca
cola, these countries are slowly moving towards healthy beverages. However
developing countries are still being introduced to the delight of carbonated drinks
and soft drinks. Countries like India which are developing and have a hot summer,
find the consumption of cold drinks almost doubled during summers. Thus the
higher consumption in developing environment’s can be a good opportunity to
capitalize for Coca cola.
3. Packaged drinking water – With hygiene becoming a major factor in the
consumption of water, Packaged drinking water has found its way into peoples
mind. Coca cola has a presence in the packed drinking water segment though
Kinley. Although Kinleys expansion is slow as of now, Kinley has a huge potential
of expansion. Thus Coca cola as a company should focus on the expansion of
Kinley as a brand and take it up to Bisleri ‘s level of trust.
4. Supply chain improvement – Supply chain can be a major cost sink hole with the
transportation costs always rising. Coca cola’s complete business is based on
transportation and distribution. There will always be possible improvements in this
 area. Thus Coca cola should keep strict watch on its Supply chain and keep
improving to bring the cost down.
5. Market the lesser selling products – In the product portfolio of Coca cola, there are
several products which have not found acceptance in the market. Coca Cola needs
to concentrate on the marketing of these products as well. It is understood that
Coca cola has made several expenses to launch these products. Thus, the marketing
and subsequent rise of sale of these products will help revenue of Coca cola.
6. Coca Cola can create new products and diversifies their current offerings. They have the
brand identify, customers, manufacturing, and evaluation to back this up. It’s possible to
find niches untouched by Pepsi to develop products, especially in the health food spaces.
This way they branch out from soft drinks.
7. Coca Cola is in hundreds of countries. They could focus on moving into developing
countries with humid temperatures. These countries will enjoy the treat of Coca Cola in a
way developed countries, already accustomed to the choice, may not.
Threats in the SWOT of coca cola
1. Raw material sourcing – Water is the only threat to Coca cola. The weakness of
Coca cola was the suspected use of pesticides or vast consumption of water.
However, the threat here is that water scarcity is on the rise. With the climate
changing, and regions of various countries facing scarcity of water, sooner or later
someone might raise fingers on beverage companies. Thus, Water sourcing is an
axe which can fall anytime on the head of Coca cola. If water is limited or rationed,
Coca cola can experience a major downfall in their revenue and capacity of
distribution. The same can affect its arch rival Pepsi as well.
2. Indirect competitors – Coffee chains like Starbucks, Café coffee day, Costa coffee
are on the rise. These chains offer a healthy competition to Coca colas carbonated
drinks. They might not be a big competition for Coke, but they do give a dent to its
beverage market. Similarly, health drinks like Real and Tropicana as well as energy
drinks like Red bull and Gatorade are stealing away the market share indirectly.
3. Coca Cola was suspected of using pesticides in their water. But water is also becoming
limited because of climate change. Considering Coca Cola needs plenty of water to create
their soft drink empire, should water become scarce, they would be in trouble.
4. This is why creating new products is important. Pepsi would also be affected if water
became difficult to come by, but they still have other markets to use and develop. Coca
Cola does not.
5. Additionally, the trends and development of cafes can threaten Coca Cola’s livelihood.
Smoothies, healthy tonics, and teas are taking over. People are looking for healthy
alternatives to less sugar. With these shops, especially Starbucks, it could dampen Coca
Cola’s sales if they don’t act quickly.
Coca Cola spent time, money, and marketing to become the giant it is in the soda industry. But
they’re missing out on spreading into other food related avenues, allowing Pepsi to occupy these
other markets with ease.
They’re well known and can use their iconic brand to spread into developing countries who will
appreciate the products, especially on hot and humid days.

BRANDING:
In this hyper-connected world, each and every brand wants to go beyond the obvious and wants
to be able to carve out a specific identity and place in the hearts of consumers. The industry has
witnessed a revolutionary change wherein the power has shifted from companies to customers.
The conventions of branding are evolving day-by-day since consumer consumption patterns are
no longer static but fluid in nature. They no longer concentrate on just the product and its
functional benefits but have an equal focus on the meaning and value that a brand adds to their
lives. This very change in power relations led companies to innovate, renew and think of
building brands through new-age methods in order to build a long-lasting connect with
consumers, enabling them to become brand advocates in the long run.
When one looks closely at the recent industry patterns, be it the automobile industry, lifestyle
industry, e-commerce industry or the luxury market, the most noticeable observation is that
almost every industry is incorporating emotional engagement as a vital element in their brand
building operations and brand promotion strategies. However, they are not just relying on trends
but are actually conceptualising narratives that could move consumers. Thus, producing a
powerful emotional connect and creating a crucial touchpoint for customers.
For instance, in case of automobiles, emphasis is laid on happiness and comfort. The campaigns
highlight how families or couples can spend quality time together while driving through lush
green valleys. The lifestyle industry is constantly aiming to build a connection by evoking
beautiful emotions, namely love, affection, and care. Luxury products also leverage similar
trends of emotional engagement via building a significant historical or cultural legacy, eventually
culminating in making a consumer feel powerful and empowered by the possession of such
brands.
Almost every industry is incorporating emotional engagement as a vital element in their brand
building operations and brand promotion strategies
The e-commerce industry thrives on the spirit of festivity and harmony and enriching lives with
fulfilment in order to gain momentum in the market. Thus, all the key players in the industry are
taking emotional routes to build brands effectively and engage consumers in the most captivating
manner. Coca-Cola India, as a company has always focused on consumer centricity and has
always been wholly committed to the preferences of the consumer. Over the years, it has
launched campaigns like ‘Sabka Thanda Ek,’ ‘Open Happiness’ and ‘Share A Coke’ and each of
these campaigns spearheaded a major success for the brand. The simple reason for this is that it
appealed to the senses and emotions of the consumer, filling the gaps and moving beyond the
traditional geographical boundaries and stereotypical constraints.
The ‘Share A Coke’ campaign by Coca-Cola India, is one of the most successful global
campaigns which has been reinvented to connect with Indian consumers, using ‘relationships’ as
a key concept. With the theme ‘Har Rishta Bola, Mere Naam Ki Coca-Cola,’ the narrative draws
upon the significance of relationships for Indians and emphasises moments of happiness that
arise from sharing a Coke. What worked well for ‘Share A Coke’ was the inclusion of the
emotional engagement in its entire integrated communication model. From print advertisements
to television commercials, from product packaging to on-ground activation, the focus of every
element of strategic brand promotion remained impactful emotional engagement. The positive
reaction of consumers towards the ‘Share A Coke’ campaign itself speaks for qualitative brand
building and promotion. The most important factor that contributed to widespread consumer
engagement and acceptance is that the campaign took extreme care of regional diversity, thus,
catering to a large chunk of the audience base and increasing the scope of its reach and
frequency. The brand’s idea of delving deep into the meaning behind shared experiences
supported it to garner much love and attention.
‘A brand is not just a name or a logo; it’s a feeling’- this is the standard concept that has always
been followed by Coca-Cola. This is a brand-building solution that every key player and industry
must resort to, to build unique, timeless brand-consumer relationships.
Things to learn from Coca Cola branding:
When it comes to big brands that seem to get marketing spot on, Coca-Cola is one of the best.
Considering Coke has been established for just over 130 years, it shows that it is doing
something right with its branding, giving businesses plenty to learn from.
Coke's marketing is always noteworthy, exciting and fresh while still building on the brand's core
values, ensuring that consumers know that an advert or piece of content is from Coca-Cola. Its
take on branding has guaranteed that it has remained consistently popular for decades, even
when it experienced a few slip-ups.
Companies looking for the best branding practices need to not look much further than Coca-Cola
and here's why:

1. Consistency is king

While coming up with a fresh marketing campaign that will catch the eye is of vital importance
to all businesses, this cannot override the need for consistent branding. Customers and prospects
need to know that marketing is for a company, which requires certain aspects to remain the same,
or at least very similar.
As Forbes explains, creating a "lasting imprint" on the consciousness of the consumer can take
time, meaning that constantly changing branding approaches can have a detrimental effect. Not
only has Coca-Cola maintained a similar script font for branding and its tell-tale red, all
marketing features happy people smiling broadly and simple taglines.
Its brand is built on the idea of 'enjoying a coke' and this message is the one that is always
hammered home, even as its product range changes and adapts to emerging trends.
2. Big changes can spell disaster

Although Coke's branding is usually strong, it has made some mistakes, which can be equally as
important to learn from. It released New Coke in 1985 in a bid to take market share away from
rivals, discontinuing classic coke in the process. The aim was to make the product and the brand
more relevant to the time, as The Balance explains, but the change didn't receive the intended
attention.
Despite a huge marketing campaign heralding the new formula, a lot of testing among focus
groups and celebrity endorsements, this rebrand of a classic company came under fire from loyal
consumers. The backlash was so great that Classic Coke was made available once more within
three months - New Coke went on to be discontinued in 2002.
However, Coca-Cola learned its lesson, putting the marketing attention primarily on its Classic
version and rebuilding its brand based on the more popular product and image. This goes to
show that even putting a lot of money into branding doesn't guarantee success and that
sometimes it is better to cut your losses and revert to a former offering or brand image.

3. Brand over product

One of the most successful ways in which Coca-Cola has marketed itself is that it puts the focus
on the brand rather than its product. Coke is described as something that brings family and
friends together, encourages sharing and brings happiness, rather than a soda.
Smartling highlights how beneficial this is for a global brand, which sells variations of its
products and uses different packaging throughout many countries. Rather than a complicated
marketing plan that focuses on the product, which would be difficult to implement, Coca-Cola
sells the lifestyle that it strongly associates with its brand. This ensures that the brand is universal
and understood across all cultures and languages.
While not all companies will operate on a global scale like Coke, they can still look at how to
sell their brand as an experience rather than a product. Not only will this create an overarching
idea of the business, it also ensures there is a core focus for future marketing, tying into the idea
of consistency.

4. Remain relevant

Although consistency is a huge part of Coca-Cola's brand identity, this wouldn't be enough to
keep it on top for over 100 years. While Coke is built around the same positive experience as it
was upon conception, it also remains modern and topical, making the most of popular culture to
remain relevant.
However, the brand doesn't simply take a popular subject and replicate it, Coke's success comes
from putting its own spin on a topic, while still maintaining the idea of it being all about sharing
and happiness. Not only this, but it uses relevant trends from each of the countries it is present in,
understanding that what is relevant for one culture may not be for others.
This doesn't just show the importance of having your finger on the pulse when it comes to issues
within your industry and wider trends, it also highlights how important data-driven branding is.
As PR Daily points out, data - such as that gained from social listening and analytics - tells you
what your current or potential customer wants. This ensures you can build a brand that reflects
this while also being completely relevant to the moment.
Brand building strategy -:
Brand development strategy of Coca Cola has been far reaching and has managed to remain in
the limelight ever since it became a favorite with the non alcoholic drinkers.It has been noticed
that brand loyalty is an important factor in maintaining the number one position.Founded in the
year 1886, the Coca Cola company enjoys the status of being one of the biggest non alcoholic
beverage companies of the world. It has a distribution system, which makes it unique from the
rest of the non alcoholic beverage manufacturers. Over the years, Coca Cola has passed several
tests of brand enhancement and the company makes it a point that the products under the banner
Coca Cola continue to invade the minds of the consumers. The brand development strategy of
Coca Cola comprised redesigning of its brand development policies and techniques to keep up
with the changing mindset of its consumers. Earlier, this brand believed in the following:
● Affordability
● Availability
● Acceptability
However, this brand development strategy of Coca Cola was re worked to stress on the following
instead:
● Price value
● Preference
"Pervasive penetration". The essence of brand building of the company lies in the fact that it
wants its consumers accessibility to be "within an arm's reach of desire". In an attempt to build
its brand identity, as many as 20 brand attributes are tested every month involving as many as
4000 customers. The brand development strategy of Coca Cola is effective as it has been able to
construct, manage As well as maintain its brand image.
Another reason why this brand has gained unanimous acceptance all around the globe is due to
the fact that it has been able to connect very well with its consumers. This implies brand loyalty.
Brand loyalty has been instrumental in keeping up the brand image of Coca Cola. It believes in
shelling out the best so that the consumers are retained by default. A part of the brand building
technique is also to enhance "purchase frequency". The company has also invested in various
advertisement campaigns often engaging the services of celebrities around the globe. In addition
to the consumers, there is another category of consumers, who increase the consumer base and
they constitute the collectors of the brand. The collectors usually indulge in collecting old as well
as upcoming logos of Coca Cola, bottles and literary matter. With regard to the brand
development of Coca Cola Zero, the company came out with an advertisement, which was quite
different from the convention alones. In this regard, (no calorie beverage), it has shelled out three
types of products.
● Coca Cola Classic
● Diet Coke
● Coca Cola Zero.
There are few experts who believe that when Coca Cola had the tagline of "The Real Thing", it
was really that but with the invention of various categories of coke, the "real thing" changes to
"many things", and the original flavor is usually lost. Hence, the brand building strategies should
be such that it does not confuse people and is able to retain consumers despite the fact that
several new non alcoholic beverage firms are on the anvil.
The Power of Brand Accessibility
If you were another soft drink company, you might define your competitive frame of reference as
the cola market or the soft drink market or even the beverage market. But Coke thinks of its
business and its market share in terms of “share of human liquid consumption.” This makes
water a competitor. In fact, a Coke executive has said that he won’t be satisfied until“there is a
Coca-Cola faucet in every home.” Coca-Cola’s mantra is “within an arm’s reach of desire.”
One Final Coca-Cola Fact
A recent Coca-Cola annual report reported that the second most recognized expression in the
world after “ok?” is “Coca-Cola.”
Brand Equity-:
“The brand assets (or liabilities) linked to a brands name and symbol that add from a service.”
Brand equity is difficult to measure because much of it depends on consumers' perception and
opinions of a brand. When a product has high brand equity they are successful at retaining their
current customers by keeping them satisfied with the quality of products and service. They are
also successful at attracting new customers who have heard of the brand through successful
marketing or word of mouth.Coca-Cola's brand equity is difficult to measure because they have
extended their brand to include numerous products. In addition to the numerous of versions of
Coca-Cola worldwide that compete against other beverage brands, Coca-Cola competes with
itself. Nationally there are numerous versions / brands that are a part of the Coca-Cola family.
Some of the brands include Coca-Cola Classic, Dasani Water, Full Throttle, Fanta, and Soy
Products. In addition to competing against itself the Coca-Cola Company has saturated the
market and consumers who may dislike one product may actually enjoy a different Coca-Cola
product.However, the consumer may be unaware that the beverage is actually in the Coca-Cola
family. As a result measuring brand equity may be difficult as consumers may be loyal and
repeat customers of a brand and not know its origin.
Coca Cola was taking its core product, Coke, and expanding the product in newform factors and
new overseas markets. The brand promise stayed the same whether it was sold in a Coke store in
New York or a road side stand in Mongolia -refreshment, good times, and pure Americana.
Despite the numerous brands and the difficulty in measuring brand equity it is evident that Coca-
Cola has high brand equity. They are a company who has been in business for many years they
have gained the business of consumers in the soda market as well as numerous
other beverage markets nationally and internationally. Their sales and growth show that they are
a successful company
Brand identity
the brand identity is the audio-visual 'face' of the brand - the cues that tell you that you are are
inthe right place. The brand definition is the formal description of what the brand stands for
within different description categories - its personality, its values, its stories, its emotional
benefits etc.. The brand proposition is the 'deal' the brand is offering you at any given moment
the coca-cola comp.has long been recognised as an organisation with significant brand equity
with over four hundred brands available in virtually everywhere of the world .the flagship brand
of coca cola has stood the rest of the time over 120 years. Infact coca-cola alone is recognized as
the most valuable in the world by the respected interbrand coorportion valued at above US $ 67
billion ,the coca-cola brand (coke)has become effectively become a part of modern world
culture.though its advertising campaign has changed over the years,coca-cola “THE REAL
TASTE” has always stood for a”REAL” COLA DRINK with authenticity . the identity has been
build by an decade with consistent values and differentiated elements. Many competitors have
aim at cokes but the brand continues to command a number one position globally in ranking of
brand equity. After all If you stand for the real thing every competitor is an imitator.
the Coca-Cola bottle design differentiated the identity, the easier it is to protect from
infringement.
Just coca cola has remained to its time tested identity u have the equally relivant to you. This
brand identity should reflect your own unique equity and careessence this will ensure your brand
creativity and identity that is meaningful and sustainable in long term.

Brand image-
“A unique set of associations in the mind of customers concerning what a brand stands for and
the implied promises the brand makes.” There could be hardly any person around the world that
hasn't heard the name Coca Cola. Ever since it beginning as world's leading name in cold drinks,
Coca Cola has created a strong brand image irrespective of age, sexand geographical locations.
Millions of people around the world are consuming cold drinks or soft drinks as part of their
daily meal. Coca Cola,ever since its inception has been the leader in soft drink market.Brand
image is the significant factor affecting Coke’s sale. Coca-Cola’s brand name is very well known
all over the world. Packaging changes have also affected sales and industry positioning, but in
general, the public has tended not to be affected by new products. Coca-Cola’s bottling system
also allows the company to take advantage of infinite growth opportunities around the world.
This strategy gives Coke the opportunity to service a large geographic, diverse, area.
Brand loyalty
Brand loyalty is a central construct to marketing. Keeping the consumer satisfied, and loyal
enough to frequently purchase just one brand, is more difficult in today’s marketplace than ever
before. But today, major brands are experiencing heightened brand loyalty due to the growing
popularity of the brand as a collectible.A recent Coca-Cola annual report reported that the second
most recognized expression in the world after “ok?” is “Coca-Cola.”
Brand personality:-
Brand Personality identity is understood as the set of human characteristics associated with a
brand. The brand image building strategy implies the definition of a brand personality and a user
personality.Have you ever thought about your personal brand?

Brand personalities that 1) Are well-known,2) offer something different to the world than they
do in terms of products and services ‘Coca-Cola’s’ brand personality reflects the positioning of
its brand. The process of positioning a brand or product is a complex managerial task and must
be done over time using all the elements of the marketing mix.Positioning is in the mind of the
consumer and can be described as how the product is considered by that consumer. When
researching the positioning of a product, consumers are often asked how they would describe
that product if it were a person. The purpose of this is to develop a character statement. This can
ensure that consumers have a clear view of the brand values that make up the brand personality,
just like the values and beliefs that make upa person. Many people see ‘Coca-Cola’ as a part of
their daily life. This similarity between the brand and the consumer leads to a high degree of
loyalty and makes the purchasing decision easier

Brand Positioning:-
The location of a brand in relation to its competitors in some pre-defined space. The space may
be defined by criteria used by consumers, such as"value for money" or "age of consumer" etc.”5
main factors that go into defining a brand position.
1. Brand Attributes
What the brand delivers through features and benefits to consumers.
2. Consumer Expectations
What consumers expect to receive from the brand.
3. Competitor attributes
What the other brands in the market offer through features and benefits to consumers.
4. Price
An easily quantifiable factor – Your prices vs. your competitors’ prices.
5. Consumer perceptions
The perceived quality and value of your brand in consumers minds (i.e.,does your brand offer
the cheap solution, the good value for the money solution, the high-end, high-price tag solution,
etc.?) The Coca-Cola Company produce a range of beverages suited to different ages, stages,
lifestyles and occasions. This includes soft drinks, diet drinks, juices and juice drinks, waters,
energy drinks, sports drinks and cordials.As part of a healthy, varied and balanced diet and an
active lifestyle, all products can be enjoyed by the majority of people.It is committed to helping
customers select the product that is best suited to their needs through the provision of detailed
product information supported by general advice on healthy eating, drinking and lifestyles.It
understands that balancing energy intake with energy output is key to a healthy body weight. We
therefore provide choice through range of low orno-kilojoule products that are ideally suited to
the needs of people who wish to reduce energy intake through beverage selection.

Such products are readily available at a similar cost to an equivalent higherenergy product.As
one of the largest producers and marketers of non-alcoholic beverages we promote physical
activity through our active lifestyles programme and sponsorship of sport. Through new product
development we will continue to release a range of new types of drinks, including low or no
kilojoule products as we look at ways in which to cater to those people who wish to reduce
energy intake through selection of lower energy beverages.
Children and the role of our beverages
Coca cola respect and support the primary role that parents play in decisions affecting the lives
of young children, including choices about diet and lifestyle. Beverage choice, like food
selection, is a role for parents and we assist them in this through the provision of nutrition
information and by making available a wide range of products suitable for all ages, stages and
occasions.Coca-Cola's longstanding global policy ensures we do not directly market our products
to children under the age of twelve. Our brands are not advertised during children's television
times and we do not show children under 12 in advertising or promotional materials drinking our
products outside of the presence of an adult. Our sampling events are directed to people over the
age of 12.In the small number of schools where we provide vending machines we work with the
school to provide a range of beverages, and ensure that lower energy products are priced
attractively and the packaging is in a single serve size. Guidelines have been established to
oversee the manner in which we work with schools and their tuck shops.It is company practice to
sell diet drinks and sugar-free alternatives at a similar price to regular carbonated soft drinks.
Retailers offering 'specials' are encouraged to include both the regular and diet versions of our
soft drinks. Through new product development it aim to develop more products that meet the
unique needs of children and will work with nutrition experts as we do this.For healthy active
and growing children, beverages higher in energy can been joyed as part of a balanced and
varied diet. However, we also provide a range of low or no-kilojoule products also suitable for
children.
Supporting sport and physical activity

Globally, The Coca-Cola Company has a long history of supporting sport and activity. have been
a major Olympic Games sponsor since 1928 and also sponsor major international sporting
events. Coca-Cola has been an All Black sponsor for the past decade and has also supported
provincial netball andrugby.At a grassroots level, Coca-Cola has formed a partnership with the
National Association of OSCAR (Out of School Care and Recreation) to develop and implement
a national physical activity programme available to 75,000 young New Zealanders. In South
Auckland, the Get Moving programme is working to encourage children to participate in local
sports and recreation courses. The Pump water brand is now a major sponsor of the Heart
Foundation's Jump Rope for Heart programme that runs in schools across New Zealand and
through the Powerade sports drink brand, we support numerous sportingevents around the
country.
Labelling
All products of The Coca-Cola Company provide clear nutrition information incompliance with
international regulations.
Packaging
Coca-Cola is committed to strict environmental guidelines, and to ensuring our packaging has as
little impact as possible on the environment. To this end, a recycling project was introduced in
New Zealand during 2001 whichensures our PET bottles contain an average of 10% recycled
material.
Information Programmes
Coca cola’s consumer contact centre provides around the clock access toinformation about the
companies.
Pricing
It is company practice to sell diet drinks and sugar-free soft drink alternatives at a similar price to
regular carbonated soft drinks. Similarly, any competitions or promotions of Coca-Cola can be
entered by our consumers who purchase diet Coke. Although at the discretion of retailers, special
offers and reduced prices on soft drinks are usually available for both the regular and diet
versions of our soft drinks
Brand extension :-
Brand extension or brand stretching is a marketing strategy in which a firm marketing a product
with a well-developed image uses the same brand name in a different product category.
Organizations use this strategy to increase and leverage brand equity (definition: the net worth
and long-term sustainability just from the renowned name)
Conclusion:-
The progress and advancement in the field of technology in the fields of soft drink raw material,
production, manufacturing, information and communication technology and logistics have great
positive impacts on the operations and sales of Coca-Cola. The availability of new soft drink
ingredients enables Coca-Cola to introduce new variety of its products to its existing consumers,
not forgetting to attract the new consumer groups. The use of the latest information technology
has made able the company to attract the new generation of soft drink consumers with the latest
features of song downloading. Also the existence of company website has enabled theworld to be
in touch with the latest progress, promotions and offers of Coca-Cola.
COCA COLA IN INDIA:
The Indian cola industry saw a major change in the early 1990s with the re-entry of Coca-Cola
into the market. The MNCs had been eyeing the Indian market ever since the economy was
liberalized and the fabled 200 million middle class customers proved to be a great attraction.
However, in the early 1990s, the Indian cola market was dominated by Indian brands like Thums
Up. When Coca-Cola entered the Indian market in 1993, the production of soft drink bottles
were about 3000 million.By the turn of the new millennium, the production had doubled but
Coca-Cola was still not seeing profits in India. Further, its aggressive pricing strategies have
come under flak from various marketing pundits. The company adopted a number of innovative
branding strategies for gaining penetration into the Indian market. Would these branding
strategies enable Coca-Cola to achieve its objectives?
The Coca-Cola Brand
In May 1886, a pharmacist called John Pemberton in Atlanta (located in the state of Georgia,
USA) created a caramel colored syrup which was christened Coca-Cola (Coke)by his partner
Frank M Robinson. Initially, Coca-Cola was sold through a soda fountain wherein customers
could buy a glass of drink for five cents. At that time, on an average,nine drinks were sold every
day. The caption ‘delicious and refreshing’ was used to promote the brand. As early as the 19th
century, the branding strategies of Coca-Cola included celebrity endorsements by music hall
performer Hilda Clark.Some of the advertisements used for branding Coca-Cola became a part of
people’s consciousness and events in their lives were shaped around the brand. For
example,every year before Christmas an advertisement shows the Christmas trucks and the jingle
that says ‘holidays are coming—holidays are coming’. A customer claims: “It isn’t Christmas
until I’ve seen that …I have to congratulate Coca-Cola on capturing the festive spirit so well”. In
the late 1940s, Coke used the tagline ‘Where there’s Coke there’s hospitality’. At that time, when
the world was strife-torn after the Second World War, hospitality was a very sought after virtue.
Families aspired to be hospitable andsocially well-regarded.In the 1970s, the hippie culture and
individualism was the rage and the Coke ad reflected the ideology through the line ‘I’d like to
buy the world a Coke’. The lyrics andthe music became very popular and were remembered even
after several decades. In the1980s, the branding was done using the rather pithy statement ‘Coke
is it’ appealed immensely to the teenagers. The 1990s saw the usage of the line ‘Always Coca-
Cola’ – perhaps a reflection of the economic recession when people aspired for stability. The
new millennium saw a very simplistic approach through ‘Coca-Cola –Enjoy’ which summed up
the candid approach people were taking towards life in times when globalization was the norm
and people’s work lives and personal lives had become seamless. The culmination of this
approach is evident in the line ‘The Coke side of life’ which was created in 2006.The slogans
used by Coca-Cola since inception have been presented in Exhibit 1

Coca-Cola in India
Coca-Cola was present in India till the late 1970s when a Government Order forced it
to leave the Indian market. However, after economic liberalization in the early 1990s,
it re-entered the Indian market in 1993. The entry into India was made more emphatic
when Coca-Cola acquired the leading Indian soft drink brands – Thumps Up, Limca,
Gold Spot, etc. Also, by buying out the bottlers, Coca-Cola ensured that they exercised
total control over the Indian soft drink market.
India’s more than one billion people, growing middle class and low per capita consumption of
soft Drinks made it a highly contested prize in the global CSD (Central Securities Depository)
market in the early twenty-first century. Ten percent of the country’s population lived in urban
areas or large cities and drank ten bottles of soda per year while the vast remainder lived in rural
areas, villages, and small towns where annual per capita consumption was less than four bottles.
Coke and Pepsi dominated the market and together had a consolidated market share above 95%.
While soft drinks were once considered products only for the affluent, by 2003, 91% of sales
were made to the lower, middle and upper middle classes. Soft drink sales in India grew 76%
between 1998 and 2002, from 5,670 million bottles to over 10,000 million (See Exhibit 6) and
were expected to grow at least 10% per year through 2012.28 In spite of this growth, annual per
capita consumption was only 6 bottles versus 17 in Pakistan, 73 in Thailand, 173 in the
Philippines and 800 in the United States. With its large population and low consumption, the
rural market represented a significant opportunity for penetration and a critical battleground for
market dominance. In 2001, Coca-Cola recognized that to compete with traditional refreshments
including lemon water, green coconut water, fruit juices, tea, and lassie, competitive pricing was
essential. In response, Coke launched a smaller bottle priced at almost 50% of the traditional
package.

Coca-Cola India invested over $1 bn in building new production facilities, waste

water treatment plants, developing marketing and distribution systems, etc.
The company directly employed over 6,000 people while its operations created indirect
employment for more than 1,25,000 people. To ensure enough production and ready
availability of its products, Coca-Cola had 25 wholly owned bottling operations in
addition to 24 franchisee owned bottling operations. To supplement their efforts,
a number of contract packers were used. For effective distribution, apart from the
10-tonne trucks, open-bay three wheelers were used which could easily navigate the
narrow lanes that are a part of India’s cities and small towns. Using these strategies,
Coca-Cola ensured high penetration of its products—even in the rural areas. Commented [3]: Ansoff matrix
Coca-Cola India has used very modern plants for its operations. Its bottling plant at
Kaladera (in Rajasthan) was awarded the Golden Peacock Environment Management
Award in 2005 for its world-class environment practices. Previously, its other bottling
plants at Baddi (in Himachal Pradesh), Ameenpur (in Andhra Pradesh) and Dasna
(in Uttar Pradesh) had been bestowed with the award. To ensure good corporate
governance, Coca-Cola India set up the Indian Advisory Board comprising eminent
personalities. The board is chaired by Naresh Chandra, the former Indian ambassador
to the US. Personalities such as Deepak Parekh, S M Datta, Sunil Munjal, Amjad Ali
Khan are presently members of the board.

Brand Positioning Strategies of Coca-Cola in India

When Coca-Cola was re-launched in India, it promoted the brand using advertisements
that used communication approaches more suitable for western markets. However, the
brand quickly adapted its communication to ensure proper appeal to Indian customers.
In the late 1990s Coca-Cola began using Indianised themes to appeal to the Indian
customers. It realised that its communication needed to appeal to the youth.
1. Also, Coca-Cola was aware that the Indian youth respected traditional Indian values even
if they wore western clothes and listened to western pop music. Taking these aspects into
consideration, it created an advertisement showing an Indian college-goer coming home
for the Diwali holidays. The young man was clad in trendy clothes (blue jeans and
T-shirt) and even sported an ear-stud to signify his contemporary style. He was shown
touching the feet of his grandparents while the Diwali fireworks lit up in the background.
This brand communication helped in creating a personality of Coca-Cola that the Indian
youth could relate with and it resulted in a suitable positioning for the brand.
2. Coca-Cola also realized that the Indian youth were obsessed with Hindi movie stars
and cricketers. Therefore, if these stars could be roped in for the advertisements the
connection of the target segment with the brand could be enhanced.
Brand Associations
In 2000, Coca-Cola chose the leading Hindi movie stars and also some of the best
cricketers to enable proper brand associations. The intent was to ensure that the
celebrities who would endorse the brand would help to have a rub-off effect of their
personas on the Coca-Cola brand. Since a large number of Indian youth aspired to
emulate these celebrities, the association would result in creating the right identity
for the brand.
3. Coca-Cola signed up Hrithik Roshan (the heartthrob of the nation during the period
2000-02 for the campaign that used the tagline ‘Jo chao ho jaye’ (meaning whatever you wish
may turn true). This value proposition must have made sense to the youth since they fantasize
about becoming hugely successful and popular. The unbridled attitude of the youth was
reflected through the actor and the brand. One advertisement was created to
commemorate Diwali which is the festival that heralds hope and instill a sense of joy
into the Indian youth. The connection with the target segment was immediate owing
to the fireworks in the background and the message ‘Happy Diwali’.
4. Coca-Cola also enabled proper brand associations by signing up cricketers like
Virendra Sehwag and Sunil Gavaskar. Given the high adulation for cricketers
in India, and the religion-like fervour evoked by cricket, the brand Coca-Cola became
associated with the most popular sport. Again, the carefree approach of the youth was
captured through the caption ‘life ho to aisi’ (meaning life should be like that).
Coca-Cola had realized that to really get into the hearts of the youth in India, the
attitudes and habits of the youth needed to be captured through the advertisements.
Therefore, it needed to show the youth doing things that were a part of their daily
routine.

Branding for Targeting the Mass Market

Coca-Cola was keen to tap the large Indian market and soon realized that the brand
needed to possess mass appeal. This meant that the brand’s positioning and value
proposition needed to be suitably altered. The brand had been targeting upper class Commented [4]: repositioning
customers who had spending power but the volumes were low. In order to ensure high
volumes, Coca-Cola needed to penetrate rural markets, small towns and target the lower
income group customers living in cities.
1. The caption ‘thanda matlab Coca-Cola’ (meaning chilled means Coca-Cola) was
chosen in 2003 to ensure mass appeal of the brand in India. The reason behind this
choice was obvious. In India, the common people tended to refer to any chilled drink
using the generic name ‘thanda’ which means chilled. Therefore, the intent of Coca-Cola
was to own the generic term for chilled drinks in the customers’ minds. This caption
was capable of enabling penetration into the small towns and the rural markets wherein the
generic term ‘thanda’ was very prevalent. The urban population that was not westernized also
used this term extensively.
2. The next step in mass-market branding was choosing a suitable actor for enabling
brand association. Coca-Cola roped in the popular actor Aamir Khan who was young
and zestful. However, the brand of the actor was not encashed upon but his acting skills
were used to good effect. This was done by getting Aamir Khan to play various roles in
the advertisements that represented the various sections of Indian customers.
The Self-Styled Hero
To communicate the message to the masses, Aamir Khan played the role of the Indian
self-styled hero. This was the quintessential macho man who had little formal education
and was heavily influenced by the heroes in movies. So, he was shown wearing a cheap
leather jacket, unkempt hair and lot of accessories that enabled him to assert his
machismo. His manner of speaking was rude and domineering and chose soft targets to
exhibit his superiority. The character was shown ordering the counter man at a small
food stall for giving him a ‘thanda’. The nondescript bottle given in return was scorned
by the hero who educated him using the caption ‘thanda matlab Coca-Cola’. The diktat was
simple—whenever anybody asked for ‘thanda’, Coca-Cola was to be served.
The character played by Aamir Khan was representative of the aspirations of the lower
middle classes who were heavily influenced by the film heroes and dreamed of aping
these characters in real life. Also, the use of the local lingo instead of chaste language
enabled the masses to relate with the brand easily.
The Punjabi Farmer
Another advertisement depicted Aamir Khan in the role of a Punjabi farmer. Punjab is
an agriculturally rich state in India and the people have a vibrant and carefree attitude
towards life. They are hard working people who also like to enjoy the good things of life.
Therefore, the ad showed three thirsty young girls getting off their car and walking into
the Punjabi farmer’s land for a ‘thanda’. The farmer jested with the girls in his cavalier
style and created some drama by using the well to pull up a bucket containing bottles
of Coca-Cola. The sight of the bottles made the girls scream with delight but the
message was clear—even the rural masses were referring to Coke when they wanted a
chilled drink.
The Bengali Babu
Aamir Khan also portrayed the Bengali babu who goes to a restaurant with his wife and
children. His bohemian demeanor and laid back attitude result in his wife’s
remonstrations at his mannerisms. She admonishes him and tells the waiter in Hindi
(albeit with a Bengali accent) to bring ‘thanda’ for everyone. This ad also reinforces the
message of Coca-Cola representing any chilled drink and by showing characters
belonging to various parts of India, the communication was expected to create a
pan-Indian awareness of the brand.
In 2003, another significant step taken by Coca-Cola for enhanced rural penetration was
the launch of the 200 ml bottle for Rs. 5. The test marketing done in Andhra Pradesh had Commented [5]: market penetration
yielded favorable results and the new bottle was launched across India. The advertisement
to showcase the offering (especially to entice the rural customers) was done using a typical
rural setting. In this advertisement, Aamir Khan played the government official who is
revered by the rural folks. He is eyed by the local belles since he is the ‘babu’ who wears a
safari suit, dark glasses and wields immense power over every villager. The ‘babu’ finds that
the village retail shop owner attempting to sell the 200 ml bottle for Rs. 6 to the local
women. He confronts the shop owner and using typical rustic humor, gets the shop owner
to return the extra rupee. The advertisement was representative of any Indian village and
the rural population could easily identify with the entire story. Most importantly, Aamir
Khan was portraying a typical village personality instead of being portrayed as a glamorous
actor who drinks Coca-Cola.
Updating the Brand Communication—the Youth’s Changing Psyche
Coca-Cola was careful in ensuring that its rural market focus did not happen at the cost
of originally targeted segment—the youth belonging to the middle and upper classes.
The communication of the brand had to be updated to ensure that it kept pace with the
youth’s changing psyche. A significant change among the youth was the assertiveness of
young women. More and more women were getting good college education and joining the
workplace. They refused to submit meekly as their mothers had done. An advertisement about
this was aired in 2006 wherein Aishwarya Rai played the role of a college
girl. She represented the quintessential Indian middle class girl who respected Indian
values and traditions. This was evident from her traditional attire, well-combed hair, etc.
The young men studying at her college made passes at her using the Coke bottle. She was
shown confronting the men and even giving them some lessons on how the Coke bottle
could be used for various kinds of whistling tunes. The men were embarrassed and accepted
defeat in the face of her boldness and assertive gestures. The tagline ‘thande ka tadka’
(meaning chilled drink made sizzling) supported the storyline of the advertisement and
also reflected the new attitude of the Indian youth.
The Pesticide Controversy
Coca-Cola was hit by the pesticide controversy and needed to do damage control to ensure that
its brand image was not tarnished. Again, the brand managers of Coke relied on Aamir Khan to
reaffirm customers’ faith in the brand. In this advertisement, the actor Aamir Khan tells that as a
patron of the brand, he was also concerned after reading various reports on pesticide residues in
Coke.
The advertisement shows Aamir Khan being given a tour of Coke’s factory and the 400
quality control tests that are a part of the production process. The brand communication
was expected to be effective since Aamir Khan is a popular actor and his testifying to the
safety of the product was expected to have a reassuring effect on the customers reassured.
Brand Resonance – Coke’s Branding Strategies
Coke’s branding strategies had to go beyond brand positioning and associations.
To ensure that customers had formed a harmonious relationship with the brand, the
objective of brand resonance had to be achieved. If resonance was achieved, customers
were expected to regard the brand as a friend or a close acquaintance with which they
shared a bond. To enable this kind of bond formation, the brand needed to find a place
in the customers’ hearts (in addition to their minds).
The youth in India were increasingly getting hooked to the internet and a website
enabled brands to enjoy a one to one communication with customers. This was a big step
towards brand resonance where the customer knew that s/he was directly interacting
with the brand. With this objective and to enable high brand engagement, Coca-Cola
set up the website www.myenjoyzone.com.
The site was used for organizing contests. The promotional contest received over 7.5
lakh entries (7,50,000) from across the country. The contest called ‘Coke Kuch Na Kaho’ had the
winners spend an evening with Aishwarya Rai at Mumbai’s exotic location ‘The
Resort’. This was a great hit with the youth and participation was enabled through
strategic partners. The Red FM Channel in Kolkota was particularly successful and
attracted over 25,000 participants. Reliance Infocomm’s three lakh customers also
participated in the contest.
The website myenjoyzone.com was upgraded in September 2003 and offered more
features like a virtual walkthrough of Coke City. Further, a number of interactive
contests were on offering invarious blocks that made up Coke City. The winners of
contests could get Coke merchandize and also interact with celebrities through the site.
Resonance Initiatives for Rural Customers + CSR (multiple motives)
Coca-Cola’s brand resonance initiatives were not restricted to the upmarket customers.
The brand was trying to target rural markets and therefore suitable initiatives needed
to be undertaken.
A very common problem in rural areas has been the depletion of water resources and
Coca-Cola has taken the initiative in several places across India to launch rainwater
harvesting projects. These projects have been initiated in places such as Rajasthan, Kerala,
Andhra Pradesh, Delhi. This ensures that the local population is assured of access to water
and through the brand’s involvement with local issues, resonance is achieved.
Apart from water conservation, Coca-Cola has also been involved in
environment-friendly exercises such as planting of trees, organizing lectures on
sustainable environment. The brand has also been involved in educational issues
through literacy mission drives and social empowerment programs.
Controversy against coca cola rs 5 bottles:
The rural market penetration was attempted using the 200 ml bottle priced at Rs. 5.
But this move came in for heavy criticism by industry observers and the results may not
have been as per expectations since Coca-Cola was forced to increase prices soon
afterwards. Also, schools have been waging a battle against fast food and aerated drinks
and several prestigious schools have gone to the extent of banning such products from
their campuses. To counter the outcry against the drinking of colas, Coca-Cola has
quoted studies published in the Indian Journal of Clinical Practice to stress that studies
conducted found no link between carbonated soft drink consumption and risk of
oesophageal adenocarcinoma. However, it remains to be seen whether these moves
will be enough for Coca-Cola to ensure a better image for the brand.
The branding initiatives of Coca-Cola have been built around well-planned
strategies. In 2007, the Coca-Cola brand adopted a more egalitarian approach by
attempting to portray the brand as the choice of people from all parts of India. The
harmonious integration of all communities is evident on any long-distance train and
therefore, the advertisement showed people from various communities, of diverse age
groups, choosing Coke as their drink. The caption ‘sabka thanda ek’ (meaning the choice
of chilled drink for all is the same) exemplifies the egalitarian approach.

FACTS:
1. In terms of leadership, Coca-Cola is without a doubt the leading soft drinks company
with a market share of over forty-eight % of worldwide carbonated beverages (Statista
2017). It has the position to lead by example. While they are taking steps to reduce the
use of plastic bottling, such as the vegetable alternative used for their Smart Water
Glaceau brand, and reducing their reliance on fossil fuels, Coca-Cola has the potential to
do so much more.
2.
OPERATIONS
ECONOMIES OF SCALE
COST CONTROL STRATEGIES
HORIZONTAL AND VERTICAL INTEGRATION
CULTURAL CLASH
FRANCHISING
OUTSOURSING, OFFSHORING, RESHORING
HUMAN RESOURCES MANAGEMENT IN COCA COLA
Human Resource Management is an essential part for any organization. Moreover, development
of this department is the first step, the ground on which the future of the company depends. It is
essential for every single business unit and especially for such international company as Coca
Cola. It is people, not technology who create the company. HRM at Coca Cola Company has
many advantages as well as disadvantage. It is the global company and it is impossible to create
certain policies or procedures applicable in all divisions of the company, cultural and political
differences need to be taken into account. Therefore, the focus of this paper will be on four tasks
and duties of Human Resource Management (performance management, compensation, career
development, succession planning) based on the United States procedures.

Coca Cola is one of the leading beverage companies of the industry. It runs its business
campaigns all across the world. It deals with different types of products such as soft drinks,
bottled water, tea, sport juices, etc. Coca-Cola has a franchising model for the production and
distribution purposes. Only the syrup concentrate are manufactured by the company which is
sold to the bottlers who are its franchisers (Coca-Cola Bottling, 2008).
It is important on the part of management to organize the activities of human resources and
organizing technology along with other resources such as physical assets, monetary resources
and knowledge of the employees and to establish effective and efficient internal organizational
structure of the business. The organizing function focuses on division, coordination, and control
of tasks and flow of information within the organization. Moreover, managers distribute
responsibility and authority to job holders

Organizing Human resources at Coca Cola Company

Management at Coca Cola Company focuses on the acquisition and retention of highly skilled
and knowledgeable employees so that it can maintain its top position in the market. It treats these
resources as an asset. It provides such conditions of employment and procedures that enables all
employees to develop a sense of unity with the enterprise and to carry out their duties in the most
willing and effective manner.
It also provides for the security of employment to the workers so that they may not be distracted
by the uncertainties of their future. These objectives, strategies, policies, and programs are pre-
specified by the company, which guides the management and unions in taking decisions. Also
they are in accordance with the organization’s mission, objectives, strategies, policies and its and
internal external environments.

Human Resource Management within Coca Cola

Human Resource Management is an essential part for any organization. Moreover, development
of this department is the first step, the ground on which the future of the company depends. It is
essential for every single business unit and especially for such international company as Coca
Cola. It is people, not technology who create the company. Human Resource Management at
Coca Cola Company has many advantages. It is the global company and it is impossible to create
certain policies or procedures applicable in all divisions of the company, cultural and political
differences need to be taken into account. Therefore, the focus of this paper will be on four tasks
and duties of Human Resource Management (performance management, compensation, career
development, succession planning) based on the United States procedures.
Basically the HRM practices are necessary for every organization. But unfortunately in Pakistan
not so much used HRM practices. In multinational companies like coca cola have their own
separate department of HRM. According senior executive of HR “Waqar Mahmood “ our HR
department consist of 29 people in Gujranwala plant.
Every organization has its own policies and strategies by which they control the functions of
their departments. Similarly, we also have own policies and strategies by which we control all
the functions of our departments. coca cola HR department is also conducting all the practices of
HRM like Job analysis and design of work, recruitment and selection, training and development,
performance appraisals, compensation, employee relationships, staff welfare and medical
policies and some other things like that. These all practices are conducted by own policies and
strategies.
HR department not make decisions related of its own department, they also conduct in
company’s decision.

Job analysis and designing

Coca cola company HR department check its own job description and job analysis in which they
get the information about employees work activities, human behavior, performance standard, job
context and human requirements and also other information related to this conduct.
HR department of coca cola used this information for Recruiting, selection, compensation,
performance appraisal, training, and employee’s relationship.

Planning and Forecasting

The process of deciding what positions the firm will have to fill, and how to fill them.
Coca cola HR department involves in company strategic planning and they also make sufficient
planning for hiring new employees in the future. We forecast for the expected employees needs
in the organization. We forecast of employees on the change technology and increasing in
productivity.
After planning we send this report to the head office for approval. If we get approval from the
head office then we start recruitment process

Training process of employees

After recruiting the fresh employee we train them for three months and also pay them salaries
after three months they become part of a firm
We also give training to already exist employee it depend upon condition for example if new
technology is introduced first of all we give full training to them about new technology then we
allow them to start their job .

HR department manage says that employees are our assets, therefore we are careful about their
health and benefits. We give following compensation and benefits:
● Basic salary
● Bonus
● Medical facility
● Pick and drop
● Gratuity fund
● Social security
We get many advantages from our employees because they are happy from company.

Employees are the most important assets of every company so it is very important to give them
importance. The satisfaction of the employees makes the company successful. The reason is that
if the employees of the company are satisfied then they will work hard for the development of
the company but if they are not satisfied with the company’s policies and they are not given their
rights then they will leave the company which can turn into a big loss. So employees’
relationship is very important for every company.
Every company has its own policy. We have also got our own policy by which we give
importance to our employees if any employee faces some kind of problem related to his life or
work then he can directly go to the manager and he can share all of his problems. This thing
should be adopted by every company because this makes the employee satisfied with the
company.
We believe that an open door policy is the best policy for employees’ relations because due to
this, our employees feel very independent and they know that if they get any problem, they can
contact directly to the manager of their department. So we strongly believe that such policy
makes our employees satisfy with us.
Company has many advantages. It is the global company and it is impossible to create certain
policies or procedures applicable in all divisions of the company, cultural and political
differences need to be taken into account. Therefore, the focus of this paper will be on four tasks
and duties of Human Resource Management (performance management, compensation, career
development, succession planning). Basically the HRM practices are necessary for every
organization.

Recruitment and Selection Process

The use of new methods of recruitment and selection has helped in managing quality of new
hires in all HR perspectives and therefore it has received an increased attention of the employers
who have become more cautious of the rise in their recruitment budgets. The hiring costs can be
controlled by adopting a qualitative approach to hiring process and also having a special focus on
competitiveness and performance of the employees in a given industry-specific environments.
This paper presents a theoretical overview of qualitative assessment and analyzes that if the
selection is resource-targeted and accounts for right SKAOs of the candidates matching their job
requirements, such selections will contribute more positively in organizational productivity and
these employees will also enjoy the confidence level of their employers.
Introduction

Recruitment is defined as a process or art of finding the most suitable candidate for a new or
vacant position in any commercial organization or a volunteer-based organization or community
group. Recruiting the right types of employees having the job/organizational fit remain a big
challenge to the employers who want to achieve guaranteed success in their business operations
and enhance ROI. HR departments have become strategic entities in their functioning since these
have to recruit the best resources, involve them fully in organizational productivity and plan for
their value addition in order to ensure retention.
By using the right strategy and assessment tools for candidates’ selec
tion process, the recruiters need to obtain complete information of their SKAOs and past
behaviors which truly reflect the demonstrated competencies of the candidates.The recruiters
must have complete knowledge of the relevant industry and the job specification or descriptions
for the positions to be hired.

Human Resource Management Report

8
The recruiters shall also study the business plans to anticipate industry-specific resource
requirements and evaluate the need to recruit peoplewith relevant skills, knowledge and
experience.
Objectives of Recruitment Methods

The recruitment methods adopted shall provide the recruiters a firm foundation for accurate
hiring decisions and provides the tools and skills to gather and evaluate data effectively. These
methods shall be proven, practical, consistent and legally credible.There is no doubt that a
selection process of a candidate is a major investment of both, the organization and the candidate
him/herself. An effective method of selection or its whole process may have three objectives:-
Accuracy
Accuracy is ability of the selection process to validly predict candidates’
job
performance. It requires complete knowledge of the candidates’
competencies and the work environment where he/she is to work in.
Equity
It is awareness that the selection system gives every qualified candidatea fair and equal chance to
be selected. An equitable selection system is

Human Resource Management Report

9
based on valid requirements that are applied consistently. It uses the jobrelated hiring standards
for all applicants uniformly. It screens outapplicants for job-related reasons only and not because
of their diversity.
Buy-in
It is the extent to which the people involved in the selection process perceive its worth.
Interviewers and candidates buy-in to a selectionsystem so that their time during the selection
process is well spent. Inthis system, everyone benefits by going through the selection
process,regardless of the hiring decisions made. It also helps in preserving theimage of the
organization and the dignity of all applicants.

External and Internal Recruitment MethodsExternal Recruitment Methods

These are the universal methods used by professional recruitingagencies.
Advertising
It is an important activity for initiating the recruitment process. Detailed job specification
descriptions must be given along with the mainresponsibilities and also highlighting the regular
and occasional tasks to be performed. The detail of reporting lines and team responsibilities, if

Human Resource Management Report

10
any, shall also be listed. The advertisement shall mention the SKAOsneeded immediately and
also those which can be developed throughtraining at later stages.Advertising in appropriate
publications is the most important phase sinceit has to attract maximum candidates. For example,
appreciation oftarget employees using national newspapers, specialist trade
magazines,audio/video channels etc, is required before selecting the advertisingchannel. Unless
we expect the candidates to relocate to our area, localaudio/video channels or print media may be
the best option.The cheapest way to advertise is on company website if same has beenlaunched.
But this may be inefficient if the site does not attract enoughvisitors. You can also advertise on
job sites such as www.rozee.pk ormany others. It is much easier to post your CV on industry
business portals.
Employment Agencies
The candidates as well as the employers generally consider thoseemployment agencies,
preferably having credibility/experience in thegiven business sector. Such agencies are very
helpful specially whenrecruiting specialists or temporary employees or recruits from
skillsshortage areas.
Job Fairs

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11
These are organized by graduating institutions where companies areinvited to set up their stalls
and interview the potential candidates as partof talent hunt program me.
Internship Programmers
The graduates are offered internships by the companies/organizationswhich afford a chance to
both potential employers and the internees todevelop mutual understanding of competency levels
and workenvironments.
Contingency Firms
These firms are generally used to provide unskilled manpower oncontingency/temporary basis
during specified time period, usually forseasonal working.
Professional Associates
They help in locating hard-to-find people having specificqualification/experiences or ability to
work well within teams. Subject orResearch Experts in scientific field are the best examples.
Internal Recruitment MethodsJob Posting and Job Bidding
 Human Resource Management Report
12
Job posting is the procedure for communicating to own companyemployees, the fact that a job
opening exists in their company and theycan apply for the same as per their company policy. Job
bidding is atechnique that permits individuals in an organization who believe thatthey are
qualified and posses the required qualification/experience toapply for a posted job. They are
recommended by their supervisors, bothexisting and the projecting. Such internal moves are
based on promotions which are not only the most economical and efficient option but also result
into employee motivation and their retention. We mustexecute employee training and
development programmers todevelop/prepare them for promotions.
Employee Referrals
This is a cheap technique of recruiting those having specialized skills.Since such people are
difficult to locate, therefore existing employeesare the most appropriate means to let people
know that the companyreally does want people having specific skills/experience to apply.
Recruitment Websites
Such sites have two main features; firstly job boards allow membercompanies to post job
vacancies where as on other hand, CV(curriculum vitae) data base allows the candidates to
upload theirrésumés, later to be included in searches by member companies.

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13
Recruitment Agencies and Their Selection Processes
Recruitment is now emerging as a strategic function at industry levelsince it needs more
professional approach to be adopted by the recruiterswho are to be equipped with right type of
knowledge, skills andmechanism for selecting high potential resources. They must conducttwo
or more interviews in addition to using other assessment tools toascertain objective assessment
of the candidate. They, at the end mustinclude their supervisors being the job-relevant personnel
to determinetheir suitability from knowledge-application point of view. Supervisorsshall give all
possible information about the job, and ensure that thecandidate has understood the whole
perspective because any missinglink shall later on result into employee frustration.Some of the
agencies used for recruitment are traditional agencies,headhunters, in-house recruiting
departments and passive candidatesresearch firms.
Traditional Agencies
These agencies historically have a physical location. A candidate visits alocal branch for a short
interview and an assessment is made by theexperts before being taken
onto the agency’s books. Recruitment
consultants then work to match their pool of candidates to their clients'open positions. Suitable
candidates are short-listed and put forward for
 Human Resource Management Report
14
an interview with potential employers on a temporary or permanent basis.These agencies are
given different compensation packages, of which themost popular is that a contingency fee is
paid by the company when arecommended candidate accepts a job. An advance payment that
servesas a retainer is also paid by the company in some case.
Headhunters
It is an industry term used for a third-party recruiter who seeks outcandidates, often when normal
recruitment efforts have failed.Headhunters execute typically small operations that make high
marginson candidate placements. Due to their higher costs, headhunters areusually employed to
fill senior management and executive level positions. Headhunters are also used to recruit very
specializedindividuals, such as in emerging scientific research areas where there areonly a
handful of top-level professionals who may be active in theirrequired fields. They may search,
prepare a candidate for the interviewand help to negotiate the salary.
In-house Recruitment
The HR departments or employers themselves undertake their own in-house recruitment. In
addition to coordinating with the agenciesmentioned above, in-house recruiters may advertise job
vacancies on

Human Resource Management Report

15
their own websites, coordinate internal employee referrals, work withexternal associations, trade
groups and/or focus on campus graduaterecruitment.
Passive Candidate Research Firms
These firms provide competitive passive candidate intelligence tosupport company's recruiting
efforts. Normally they will generatevarying degrees of candidate information from those people
currentlyengaged in the position a company is looking to fill. These firms usuallycharge a per
hour fee or by candidate lead.
Recruitment Process
The recruitment process is based on three main steps, described as below.
Sourcing
Sourcing involves advertising, a common part of the recruiting processdescribed as above.
Screening and Selection
Suitability for a job is typically assessed by looking for skills, e.g.communication, typing, and
computer skills. Qualifications may be

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16
found through résumés, job applications, and interviews, educational or professional experiences.
The testimony of references or in-house testingis also part of psychological tests or employment
tests.
Orientation
Orientation is the introduction process with regards to work environmentand company culture. A
well-planned orientation training program helpsnew employees to become fully operational in
the quickest manner andis often integrated with a new work and company
environment.Orientation develops the comfort zone of the new employees and helpsthem in the
recruitment process for retention purposes. Many companieshave comprehensive orientation
process to retain top talent which is newto the company and it may last from 1 week to 6 months.
Effectiveness of Hiring Process Saves Recruitment CostsPoor Hiring has Adverse Financial
Impact
Hiring a wrong person for the job can be costly since a lot of time andmanagers or staff effort is
spent in the whole selection process. There areenormous costs which are associated with
interviewing candidates,training new hires, advertising and other related administrative activities.

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17
There is always a substantial financial impact of poor hiring decisions onthe organization
affecting its recruitment budget adversely.
Feed Back Improves Hiring Standards
Recruiters must develop a mechanism for recording the performance oftheir ex-candidates when
employed in real work environment. Ifnecessary, they must arrange post-employment interviews
for theemployees who have been their candidates during selection process. Attimes, poor
performance may result due to employee shortages or otherissues of compensation,
empowerment, work life balance etc. We mustconsider using a qualified consultant for an
objective assessment ofrecruitment problems, such as high employee turnover, frustration
anddiscipline.
Employee Retention Contribute to Customer Satisfaction
It is critical to the long term health and success of the business.Managers readily agree that
retaining their best employees ensurescustomer satisfaction, product sales and satisfied
coworkers. It also helpsin satisfaction of reporting staff, effective succession planning anddeeply
imbedded organizational knowledge.
Organizational Development is Key to Operational Success
Organizational development aspects, such as training and development programmers for the
employees ,management development

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18
 programmers, career development centers and Change management programs help in resolving
the organizational issues which need toreviewed in line with on-going changes in technology ,
skill levels and processes. The employees are given equal opportunities to developthemselves in
line with company policies.
Diversity Strengthens Organizational Culture
The diverse culture of the organization helps in setting up goodrecruitment procedures which do
not discriminate illegally on the basisof gender, race, religion, belief, age, disability, marital or
statusorientation.
Selection process:

The selection process will vary depending on the position employee

applying for, as one process can’t fit all the different roles as Coca Cola
Company have.Coca Cola Company use different method in selection process that is:

Interviews

Group exercise

Presentations

Psychometric test

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19

Roles plays/situational test

Training and development:
Coca cola training and development programs are equally impressive.They have an extensive on
the job training program to focus on the day-to-day needs of their people and in each of their
offices across thecontinent there are a number of local training initiatives catering to particular
regional needs.In addition, The Coca-Cola University (CCU) provides excellentlearning
opportunities to help people develop both personally and in business. Customer can take
advantage of a variety of flexible, tailoredand diverse resources including:

Instructor led training classes in a range of areas including PeopleLeadership, Franchise

Leadership, Consumer Marketing andCustomer/Commercial Leadership;
E-learning to share core knowledge;

Workshops to help generate new ideas and apply them practically;

Just-in-time training and development for critical skills;

An extensive online library of books and other resources to supporton the job learning

External speakers reviewing the latest thinking on hot topics.

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20
Performance Appraisal
Coca cola performance appraisal is annually Hr. Manager WaqarMahmood said that we appraise
the employee due to their performanceabout goals of the organization .we set the goals started
the year and tellsthe employees about the goal if the employees achieve this goal weappraise the
employees.
Steps in appraising performance
The performance appraisal process contains three steps;Define the jobAppraise the
performanceProvide feedback
Define the job;

Means making sure that you and your subordinate agree on his or herduties and job standard.
Appraise performance;

Means comparing your sub

ordinate’s actual performance to the
standards that have been set.
Provide feedback;

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21
Means discuss the subordinate performance and progress, and make plans for any development
required.

Objective and Compensation

Our compensation objective is to improve performance employees andconvey the message of
employees that the company is loyal withemployees. HR department manage says that
employees are our assets,there for we are careful about their health and benefits.
Compensation:

Support the implementation of different compensation projects (i.e.market benchmarking) by

providing data and implementingadjustments.

Ensure annual rewards management cycle is run smoothly end to end.

Perform due diligence in order to identify opportunities or concernswith ongoing plan

administration, including monitoring vendor performance against SLAs.

Preparation of attractive compensation package offers for new hires, promotions, lateral moves
conforming to internal and external equitystandards.

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22

Provide detailed, constructive impact analysis of proposed plan andlegislative changes from
legal, administrative, participant and otherresources through in-depth research.

Monitor changes and development in labor codes/legislation andinform Managers accordingly.

Responsible for successful implementation of annual rewardsmanagement cycle, off-cycle

compensation process andimplementation of global and local bonus plans.

Responsible for delivering compensation training (either virtual or in-class) to managers and
associates per the need.
Benefits:

Administer on-going benefits programs & Flexible Benefits.

Administer local country benefits programs as well as global programsapplicable in the location.

Develop and execute implementation/communication strategies for any plan changes and other
benefits initiatives.
Support Managers on collecting market benchmarking data.

Provide data for local benefits surveys if applicable.

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23

Perform due diligence in order to identify opportunities or concernswith ongoing plan

administration, including monitoring vendor performance against SLAs.

Educate managers and employees on benefits plans and programs, practices, processes.

Ensure communication channels are kept up-to-date of changes in benefit plans and programs,
processes and tools.
Employee Relationship
Employees are the most important assets of every company so it is veryimportant to give them
importance. The satisfaction o f the employeesmake the company successful.The reason is that if
the employees of the company are satisfied thenthey will work hard for the development of the
company but if they arenot satisfied with the company
’s
policies and they are not given therights then they will leave the company which can turn into a
big loss.So employees
’
relationship is very important for every company.Every company has its own policy. We have
also go to our own policy by which we give importance to our employees if any employee
facessome kind of problem related to his life or work then he can directly goto the manager and
he can share all of his problems. This thing should beadopted by every company because this
makes the employees satisfied

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24
with the company. We believe that an open door policy is the best policyfor employees
’
relations because due to this, our employees feel veryindependent and they know that if they get
any problem, they cancontact directly to the manager of their department.So we strongly believe
that such policy makes our employees satisfywith us.
Career Development
Career development includes programs designed to assist employees atall levels of the
organization to define their career objectives, assesstheir skills and develop the skills needed for
their desired career path.The specific programmatic sections of the Agreement related to
careerdevelopment and their status are presented in Appendix A. As discussed below, the
Company is in the initial stages of designing a comprehensivecareer development strategy.The
Company is in the initial stages of designing a career developmentstrategy for employees in pay
grades 13 and below, which will interfacewith succession planning for employees at higher grade
levels. Thisstrategy will continue the philosophy of employee ownership of careerdevelopment,
but will provide additional resources to assist employeesto design and execute an effective career
development plan. In addition,as specified by best practices, the roles of managers, employees
and the

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25
Company will be clarified and communicated, with monitoringreinforced within the performance
management process.The Company plans to provide career information, assessment tools
andeducational resources to help employees compare their skills andcompetencies with those
needed by the Company. When completed, theCompany is planning to follow the best practices
of utilizing workanalysis data to provide the competency and skill information both forthe career
development process and for job profiles and job posting.Employees will also be able to register
their interest in a particular jobopportunity and receive notification when the job is posted.
Succession Planning
Succession planning relates to the identification, assessment anddevelopment of internal
candidates for senior management positions.Succession planning includes defining candidate
slates and planning formanagement continuity in the event of turnover and/or retirements.
TheCompany is in the early stages of re-designing and implementing itssuccession planning
process.One component of succession planning is the talent review process bywhich an
employee’s
potential for movement within the organization isassessed. Through the talent review process,
regular discussions occuramong the highest-level managers regarding talent and talent
gaps.Other key components of the proposed succession planning process

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26
include using information from the performance management system
and coordinating with the Company’s career development programs to
identify career objectives and required competencies for the desiredcareer path identified by the
individual employee. The expected outcomewill be "succession management," which the
Company anticipates willinclude a mixture of succession planning activity, the development
ofexisting internal talent and, when appropriate, the recruitment ofnecessary external talent.
Conclusion
The Coca-Cola Company has made real progress in complying withrequirements of the
Settlement Agreement. The design of new or revisedhuman resource systems is nearly complete
and a baseline has beenestablished against which progress can be measured. During the nextyear,
the Task Force will ensure the Company sets appropriate diversitygoals and holds its managers
accountable for their efforts to achievethem.Coca-Cola has started to implement many required
programs, to varyingdegrees. The Task Force will monitor these developments. The TaskForce
expects to see positive changes in employee attitudes (asmeasured, in part, through the annual
employee engagement survey) andimproved diversity as a result of these systems. Necessary
changes to the

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27
systems will be made based on the Task Forces and Coca-
Cola’
smonitoring efforts.Coca-Col
a’
s success in achieving this vision remains to be seen.Continued review and monitoring by the
Task Force and the Companyshould help ensure progress is made. The results of that progress
will bemeasuWith reference to one or two organisations, evaluate different strategies businesses
can adopt to respond to issues of globalisation.

With reference to one or two organisations, evaluate different strategies businesses can adopt to
respond to issues of globalisation.

Globalisation is the process by which businesses and other organisations develop

international influence or start operating on an international scale. As the world becomes
increasingly interconnected through cross-border trade and operations, more opportunities as
well as threats have been introduced to all businesses. Thus, businesses such as The Coca Cola
Company have to adopt certain strategies to capitalise on opportunities and deal with threats.
Strategies are plans set by such firms to achieve their long-term goals. Likewise, The Coca Cola
Company, which is the world’s leading beverage corporation, have met with opportunities for,
and threats to their growth, and have thus adopted various strategies to achieve their long-term
goals of increasing market share and profits.
Firstly, the phenomenon of globalisation has provided Coca Cola with the opportunity to
lower costs of production, by enabling the company to operate on a larger scale and to source for
new markets to operate in other countries. The present day Coca Cola Company operates through
factories, retail shops and subsidiaries in every continent with the exception of Australia and
Antarctica, in over 200 countries. By doing so, the company can enjoy the benefit of lower costs
of production as labour is much cheaper in countries such as China. The propagation of
globalisation has also helped Coca Cola gain access to areas which are rich in resources. For
instance, with globalisation, Coca Cola can get a stake of the fresh groundwater found in Latin
America and India, which is needed to produce their mineral water products and soft drinks.
Thus, not only can the company enjoy lower costs of production by expanding overseas, it can
also increase production, thus increasing profits.
Secondly, the Coca Cola Company can also enjoy larger economies of scale, as well as
an increase in customer base and revenue. The company has a stake in more than 900 factories
and bottling plants worldwide, through subcontracting and the creation of the Bottling
Investments Group (BIG) to meet the demand for their products. The BIG operates globally in 18
countries, such as Qatar, China and Singapore. Thus, the large-scale of Coca-Cola’s operations
means that their products can be produced at a higher and faster rate, increasing efficiency and
productivity for each factory, ensuring the maximisation of their input resources. Additionally,
this also enables Coca Cola to invent and produce new products at a quickened rate, since the
firm already has the technology and system in place, therefore satisfying customer demand and
expectations. Furthermore, by operating in over 200 countries worldwide, the company has
increased their consumer base and increased demand for their products, enabling more revenue.
However, globalisation has also brought about threats like increased rivalry. In particular,
Coca Cola faces stiff competition from Pepsi Company, which is the second largest beverage
company. With the advancement in technology and social media, several companies, like Pepsi
Co have taken advantage of this to advertise and promote brand image to the public, increasing
competition Coca Cola’s competition. In fact, the ‘Cola Wars’ is a term used to describe a
campaign of mutually-targeted television advertisements and marketing campaigns since the
1960s between Coca Cola and Pepsi, for example, Pepsi’s most successful campaign ‘Drink
Pepsi, Get Stuff’, which was a loyalty rewards programme, enabled Pepsi to dominate the
summer Atlanta Olympic Games, despite the fact that Atlanta is Coca Cola’s hometown, and
Coca Cola was the official sponsor for the games. In response, Coca Cola Company came up
with its own rewards programme, ‘Coke Rewards’. Thus, globalisation has also led to the rise of
competition from rival groups, resulting in Coca-Cola having to spend large sums of money on
advertising and campaigns to compete and remain attractive to customers.
In order to capitalise on the several opportunities that have emerged for growth, due to
globalisation, the Coca Cola Company has adopted the strategy of diversification, both related
and unrelated. The company has invented a wide range of products, from soft drinks to energy
drinks and also mineral water, all of which is sold separately in different countries. For instance,
Sprite is sold in Asia, Fanta Pineapple in Greece, Europe and Inca Kola in Peru. It is after
conducting thorough research that the company could understand the local preference and taste
buds better, and then create beverage suiting the local taste, before introducing it in the
respective countries. In doing so, Coca Cola hopes to increase market share and profits.
Additionally, in an effort to deal with competition from Pepsi and other drinks
companies, Coca Cola has dabbled in the film industry, so as to increase their global influence.
In 1982, Coca Cola acquired Columbia Pictures for $692 million. The company then sold it to
Sony in 1989 for $3 billion, making a hefty profit. Thus, by not limiting themselves to the Food
and Beverage industry, the company could create awareness about their brand and products,
increasing influence on the markets, and promoting a popular brand image that is meant to
convince customers of the edge that the company has over Pepsi Co and other rivals. As the
more popular choice, customers may be more inclined to patronise Coca Cola rather than its
rivals, thus allowing the company to maintain their customer base, effectively dealing with
threats to their growth.
Other than competitors, the customers of Coca Cola have also benefitted, in positive
ways, from the strategies of the company to address the issue of globalisation. With Coca Cola
making the monopolising of the beverage industry their goal, the company has expanded
overseas at an elevated rate. This means that customers who enjoy their products can have more
access to it, through the numerous retail shops and vending machines set up at every corner of
the globe. Furthermore, with the rewards system, customers can receive additional benefits while
still being able to satisfy their cravings for Coca Cola’s drinks.
In conclusion, in order to respond to issues of globalisation, the Coca Cola Company has carried
out several strategies, from market penetration, to diversification and making use of social media
platform for advertisement, so that they can continue benefiting from the opportunities
globalisation has provided, as well as effectively deal with the threats to their growth.

STEEPLE

STEEPLEA.HISTORY & BACKGROUND

Coca-Cola Bottling Indonesia is one of the leading manufactures and distributors of soft drinks
in Indonesia. It manufactures and distributes, under license, products of The Coca-Cola
Company. Coca-Cola Bottling Indonesia is a trade name and is made up of joint venture
company formed by local companies, owned by independent businessmen, and Coca-Cola
Amatil Limited, which is one of the largest manufactures and distributors of Coca-Cola products
in the world. The Coca-cola Company manufactures and distributes Coca-Cola products to over
400,000 outlets through more than 120 Sales Centres. Coca-Cola Amatil made its first
investments in Indonesia in 1992. The current Indonesian joint venture partners were amongst its
partners at the time. Production of Coca-Cola products first started in Indonesia in 1932 at one
production plant located in Jakarta. Annual production at that time was approximately 10,000
cases. The business employed only twenty-five people and operated three distribution trucks.
From that time until the 1980s, eleven independent businesses were set up throughout Indonesia
to manufacture and distribute products of The Coca-Cola Company. In the early1990s some of
the businesses started to merge and on 1st January 2000 ten of those original businesses to from
what is now known as Coca-Cola Bottling Indonesia. Today, with approximately 9,000
employees, millions of cases are distributed to and sold through more than 400,000 of our
customers' retail outlets throughout Indonesia.
1

B.SOCIAL AND CULTURAL

Coca cola’s philosophy and commitment is to be an integral part of the fabric of each community
in which they operate. Coca cola contributes actively to that community through the way do
business, as well as through meaningful community relations activities. They operations
throughout the country influence the lives and welfare of thousands of they local suppliers,
customers and employees from the surrounding communities. Each year coca-cola undertake a
program of support to a broader spectrum of the local communities in the fields of education,
health, building infrastructure and assistance to various disadvantaged groups. This support can
come in a number of ways and includes, amongst others, the provision of products to various
organizations and scholarships to the less fortunate children, and the opening of they clinics to
the communities. Coca cola’s goal is to provide children and youth with educational
opportunities and support system they need to become knowledgeable and productive citizens. In
August 2000, Coca-Cola Bottling Indonesia and Coca-Cola Indonesia initiated the establishment
of a social foundation called Coca-Cola Foundation Indonesia (CCFI). Its main vision is to
provide with learning opportunity for the Indonesian children and youth in order to become
productive and broad knowledge citizens. For the purpose to provide assistance in education,
CCFI carries out a range of activities to provide with alternative learning facility to
accommodate education needs for the dropped out students. The main three programs which
have been established are Community Learning Center Program, a continuous Child Story
Writing workshop and Capacity Building program. Community Learning Center is CCFI actual
effort to enhance public library as an alternative learning point for the public. The
aforementioned program may be achieved with the following ways: Provide library staff with
any appropriate training to give more concentration on the readers, replacing library facilities
with more attractive and interesting facilities and provide with educative programs in the library
in order to attract the visitors. In addition, there are three other programs, which have been
planned to use Learning Center under CCFI guidance.Firstly, Digital Divide Program. Through
this program, CCFI will provide facilities as tothat of learning center with the more modern
computer unit. In addition, The learning center
2

staffs are trained in order to become competent staff, as a result, they will be able to
provideinteresting in-house training on the use of computer learning for the child and youth who
visitthat of Learning Center.Secondly, Life Environmental Program. By entering into
cooperation with environmentalfoundation, CCFI developed books concerning with Indonesia
Bio Diversity by which provided at each of learning center and school library under its
guidance.Third, HIV/AIDS Program. CCFI includes the education program about HIV/AIDS at
itsLearning Center at four cities, namely; Jakarta, Bandung, Yogyakarta and Surabaya.
Theactivity commenced by providing training for trainers including Learning Center staffs
andHIV/AIDS activists, then continued with the communication activity for teenagers
aroundLearning Center.Social commitment of Coca-Cola Bottling Indonesia also realized
through some other social activities performed for the people surrounding the factory and its
outlets in someterritories in Indonesia.The background of this social activities based on the local
community needs is theintention of Coca-Cola Bottling Indonesia to assist in coping with the live
burden, assist the poor people, and in order to become good citizen.Coca-cola focused on the
seven fields, namely: education, environment, publicinfrastructure development, national event
from the youth and government, culture, healthand sport organizations, and assistance for the
victim of the natural disaster.
C.TECHNOLOGY AND PRODUCT INNOVATION
Through some continuance research and development activities, Coca-Cola tries to make
innovations to develop Indonesian typical products. In addition, more packages and interesting
accessories are now easily found throughout Indonesia. The reputation of Coca-Cola company in
Indonesia which is previously only recognized as the main carbonated beverage company, now
has changed become total beverage company in line with the production of fast non-carbonated
beverage. It commenced from the issuance of Frestea, tea beverage, on the Last June 2002. Now,
it becomes the second largest fast beverage product in Indonesia. Furthermore, Coca-Cola has
marketed Sunfill syrup and powder, and AdeS mineral water outside Jabotabek). In the field of
packaging, Coca-Cola always updates its innovations. After Refillable Glass Bottle, Frestea,
produced a couple years ago; it has been produced last year in more relax package (Tetra Wedge)
which is easier and more practice to bring. In the end of 2003,Coca-Cola, Sprite, and Fanta
appeared in the tiny can package of 250 ml. In addition, there is Glass Bottle which is light to
30% in its weight with a very tiny design but strong. Now it has started to market in Bali and for
the near coming years will be marketed nationwide. Innovation on selling facilities also
developed continuously to meet the need of consumers and the current technology development.
Coca-Cola Bottling Indonesia has non pollution materials. Besides increasing selling
productivities, those new crates are expected to enhance the product of Coca-Cola in Indonesia.
Those continuous innovations have proven that as one of the famous beverage company in the
world, Coca-Cola wants to provide its best for the consumers. New ideas have presented and
continuous investments have made in order to become the best beverage company in the world.
Our core brands that include Coca-Cola, Sprite, Fanta and Frestea are produced in 10 plants of
Coca-Cola Bottling Indonesia across Indonesia. To ensure that beverage quality is up to
standards, The Coca-cola Company rigorously apply internationally recognized manufacturing
process. Products coding becomes an important part of the whole process,allowing us to
guarantee that consumers receive our beverages at their flavorful best.Each one of our beverages
is coded, that is marked with a special code that identifiesspecific information about it. Some
codes simply identify the date the beverage was bottledor canned. Some come in the form of a
date stamp while other codes are much morecomplex.These codes identify the day, month, shift
and plant in which the beverage was made, anduse a combination of letters and numbers. If we
do not see a code on our container, it is because some bottles use invisible ink that can only be
read with special technology. Thisfurther highlights our objective to ensure that our
technological, human and material resources are directed towards consistent satisfaction of the
wants an
d expectations of thewants and expectations of our customers and consumers.

D.ECONOMIC AND MARKET CONDITIONS

Due to availability of the limited competency of entrepreneur at non-formal sector (entrepreneur
at micro level) in managing their business has supported Coca-Cola BottlingIndonesia to
actualize its social awareness by initiating community economy program in theform of micro
enterprise development (Coca-Cola Micro Enterprise Development Program).Assistance and
education program for this small-scale enterprise group issued on last July2003 and provided the
two main elements of assistances. First, providing technical assistanceon the development and
assistance of small-scale enterprise, which is fully supported byCoca-Cola for the period of one
year. Such of this assistance program is aimed at increasingability of group member, increasing
self-awareness, member productive enterprisedevelopment, and enterprise network
development.Second, access as to the working capital provided by an independent finance
institution or bank (beyond Coca-Cola). Such of this micro finance service is only given to those
fulfilledsuch of those strict requirements, including to keep group awareness and to develop
withinthe group, routinely and timely, and having permanent domicile. In the course of
performanceof those two services, Coca-cola cooperates with the self-helped Community group
"BinaSwadaya", an experienced non-profit oriented finance institution on similar program
inIndonesia.This program has been developed successfully in Cikarang Barat Sub-district,
BekasiRegency, West Java Province, and now serves more than 320 small-scale entrepreneurs.
Inaccordance with the plan, the same program will be developed this year in the province of East
Java.Coca-Cola Bottling Indonesia is one of the leading manufactures and distributors of
softdrinks in Indonesia. It manufactures and distributes, under license, products of The Coca-
Cola Company.Coca-Cola Bottling Indonesia is a trade name and is made up of joint venture
companyformed by local companies, owned by independent businessmen, andCoca-Cola Amatil
5

Limited, which is one of the largest manufactures and distributors of Coca-Cola products inthe
world.Our Company manufactures and distributes Coca-Cola products to over 400,000
outletsthrough more than 120 Sales Centres.Coca-Cola Amatilmade its first investments in
Indonesia in 1992. The current Indonesian joint venture partners were amongst its partners at the
time. Production of Coca-Cola products first started in Indonesia in 1932 at one production plant
located in Jakarta. Annual production at that time was approximately 10,000 cases. The business
employed only twenty-five people and operated three distribution trucks.From that time until the
1980s, eleven independent businesses were set up throughoutIndonesia to manufacture and
distribute products of The Coca-Cola Company. In the early1990s some of the businesses started
to merge and on 1st January 2000 ten of those original businesses to from what is now known as
Coca-Cola Bottling Indonesia.Today, with approximately 9,000 employees, millions of cases are
distributed to and soldthrough more than 400,000 of our customers' retail outlets throughout
Indonesia.
E.MARKET CONDITIONS
In Indonesia, soft drinks are readily available in various public places from roadside
stalls(warungs) to small shops. They are widely consumed by all levels os society, education
andwork groups.Studies by an independent research institution (LPEM of the University of
Indonesia) andmarketing research agency DEKA have shown:
•
In 1999, 85% of monthly soft drink consumers had an average householdincome of less than Rp
1 million (US$ 100) per month. Of these 46% was less than Rp500,00 (US$ 50)
6

•
Seventy-two percent of weekly consumers had an average householdincome of less than Rp. 1
million per month. Of these over 40% are either students, partially employed people or
pensioners.
•
Amongst weekly consumers, soft drinks are consumed as often as syrupand snack foods and far
more than ice cream.With the wide consumption of soft drinks, the industry offers an enormous
yet untapped potential with its low per capita consumption and the large young
population.Today, the country has one of the lowest rates of consumption of Coca-Cola company
products (only 13 8oz-servings per person per year), compared to Malaysia (33),
Philippines(122) and Singapore (141).Because soft drinks sales are sensitive to price, every
effort has been made to maintainaffordability. In 1997 we could buy 11 small bottles of
carbonated soft drinks or ready-to-drink tea with the daily minimum wage in Jakarta and 13 in
2001. However, we could buy205 candies with the same minimum wage in 1997 and only 136 in
2001.In terms of job creation opportunity, the soft drink industry has a high
employmentmultiplier. At 4.025 times, it ranks 14th against the other 66 industry sectors in the
country.This means that for every one job created, or lost, in the soft drink industry then four will
becreated, or lost, at the national level. For every one job created in the soft drink industry, four
will be created at the national level.Eighty percent of soft drink sales are made through retailers
and wholesalers, of which 90% are considered small-scale businesses. For these small-scale
businesses, softdrink products are their most important merchandise - contributing 35% of total
sales andgenerating 34% of profit. Other supporting industries affected by the activity in the soft
drink industry include glass, bottle closures, transport and media. 80% of soft drink sales are
madethrough retailers and wholesalers.
F.EDUCATION
7
In the field of education, for instance, other than through Coca-Cola FoundationIndonesia, Coca-
Cola Bottling Indonesia also provides a scholarship program fromelementary until university.
Every year, Coca-Cola Research Grant provides Researchscholarship for the students of
Magister and Doctorate Degree in some big cities in Indonesia.
G.TRAINING
Coca-Cola Bottling Indonesia realizes the growing complexity of business environment inthe
years to come, so that a more solid strategy to strengthen our organization is required.One of the
key challenges The Coca-cola Company face is preparing for future leaders withinthe
organization.In line with this development, the Company is designing a program, known as
theGraduate Trainee Program (GTP). It is a structured one year development for young
professional for dynamic, dedicated and responsive future leaders. This program has becomean
integral part of our People Development series. GTP graduates are expected to fill mid-level
management positions through fast track development. Since 1995, seven groups of participants
have completed this prestigious program. Some of them have achieved key leadership positions
in the Company. The Coca-cola Company challenge young, passionate and innovative
candidates to join the Program inthe dynamic environment of
•
Sales & Marketing
•
Technical Operations & Logistics
•
Finance
•
Human resources
•
Business Services If we have the ambition to succeed, look for an opportunity to build upon our
strengths and meet challenges that really stretch we, then join Coca-Cola Bottling Indonesia in
our GRADUATE TRAINEE PROGRAM. We will embark on 12 months development program
that will equip us with professional and leadership capabilities we need to succeed in a major
Fast Moving Consumer Goods multinational business. It takes unshakable commitment from us
to endure this challenging
8

process, but consider this as an indispensable learning opportunity. If we can excel throughout
evaluation process, we will assume higher responsibilities as a leader and enjoy an attractive
remuneration package. To be considered for this position we should have a quality degree from
reputable university, Master degree holders are preferred and maximum 1 year of working
experience. We should have a track record of outstanding academic and extra-curricular
achievements. High caliber and dynamic with excellent communication skills in English and
Bahasa Indonesia. Willing to travel, mobile and ready for assignment all around Indonesia.
H.POLITICAL
The Coca-Cola Company is the world’s largest beverage company. Along with Coca-Cola,
recognized as the world’s most valuable brand, the Company markets four of the world’s top five
soft drink brands, including Diet Coke, Fanta and Sprite, and a wide range of other beverages,
including diet and light soft drinks, waters, juices and juice drinks, teas, coffees and sports
drinks. Through the world’s largest beverage distribution system, consumers in more than 200
countries enjoy the Company’s beverages at a rate exceeding 1 billion servings each day.
Because public policy issues have the potential to impact our business, people and communities,
our Company, like other commercial enterprises, uses its resources on occasion to advance
matters of public policy that are consistent with the sustainability of our business and our
Company’s values. To that end, our Company recognizes the importance of meaningful
corporate governance practices as it relates to corporate political contributions in the United
States. Accordingly, corporate political contributions are based upon the following criteria:
•
Legal Compliance: Our Company’s political contributions are made incompliance with all
applicable laws and corresponding legal reporting requirements. To ensure compliance, all
corporate political contributions are reviewed and approved in advance by our Company’s Vice
President, Public Affairs and appropriate legal counsel.
•
Board and Management Oversight: Corporate political contributions are reviewed retroactively
by the Public Issues and Diversity Review Committee to ensure alignment with Company policy
and our overall values. In addition, the Public Issues and Diversity Review Committee, along
with the Company’s Public Policy and Corporate
9

Responsibility Council, periodically review Company policy regarding political contributions

and also corresponding Company practices.
•
Public Policy Support: Consistent with applicable laws, corporate political contributions may be
given to political candidates and organizations whose views and work are consistent with the
interests and values of our Company, our bottling and overall business system, the non-alcoholic
beverage industry and the communities in which TheCoca-cola Company operate. Because our
Company's vision and values are an out growth of our unique brands and people, The Coca-cola
Company recognize that political candidates and organizations may support positions that align
with some, but not all, aspects of our contribution policy. In these instances, The Coca-cola
Company base our involvement on those areas of mutual agreement that The Coca-cola
Company believe will have the greatest benefit to our shareowners and key stakeholders.
•
Public Transparency: Our Company supports public transparency relating to corporate political
contributions and our Company complies with all applicable laws and legal reporting
requirements relating to corporate political contributions. In addition, and to further the goal of
transparency in this area, The Coca-cola Company will post this policy and an annual report of
our contributions to political candidates and any political entities organized under 26 USC Sec.
527 of the Internal Revenue Code on our Company website.
I.LEGAL
All content included on this site, such as text, graphics, logos, button icons, images, audio clips,
and software, is the property of The Coca-Cola Company or its content suppliers and protected
by and international copyright laws. The compilation (meaning the collection, arrangement, and
assembly) of all content on this site is the exclusive property of The Coca-Cola Company and
protected by US and international copyright laws. All software used on this site is the property of
The Coca-Cola Company or its software suppliers and protected by US and international
copyright laws. The content and software on this site may be used as a shopping, selling, and e-
card resource. Any other use, including the reproduction, modification, distribution,
transmission, republication, display, or performance, of the contenton this site is strictly
prohibited.
10

The Coca-Cola Company maintains this Site for our personal entertainment, information
,education, and communication. Please feel free to browse the Site. We may download material
displayed on the Site for non-commercial, personal use only provided us also retain all copyright
and other proprietary notices contained on the materials. We may not, however, distribute,
modify, transmit, reuse, re-post, or use the content of the Site for public or commercial purposes,
including the text, images, audio, and video without The Coca-Cola Company's written
permission.
•
Trademark Information Produced for The Coca-Cola Company, owner of the trademarks "Coca-
Cola," "Coke,""diet Coke," "cherry Coke," “Dasani,” “Hi-C,” "Fanta," "Five Alive," “Barq’s,”
"Fresca,""Mello Yello," "Minute Maid," "Sprite," "diet Sprite," "Surge," “Nestea,” "TaB,”
“TaBEnergy," “POWERade,” “Dannon,” “Evian,” “Full Throttle,” “Rockstar,” “Gold Peak,” the
Dynamic Ribbon device, the design of the contour bottle, the design of the contour glass*, the
Red Disc Icon, "Always COCA-COLA", the design of the COCA-COLA Santa, the design of
the COCA-COLA Polar Bear and the design of the COCA-COLA Seal, and for Coca-Cola Ltd.,
owner of the trademarks in Canada.* Patents registered or pending for the Genuine COCA-
COLA Glass (COCA-COLA Contour Glass): United States-D402158 and Canada-85551The
trademarks, logos, and service marks (collectively the "Trademarks") displayed on the Site are
registered and unregistered Trademarks of The Coca-Cola Company and others. Nothing
contained on the Site should be construed as granting, by implication, estoppel, or otherwise, any
license or right to use any Trademark displayed on the Site without the written permission of The
Coca-Cola Company or such third party that may own the Trademarks displayed on the Site. Our
use of the Trademarks displayed on the Site, or any other content on the Site, except as provided
in these Terms and Conditions, is strictly prohibited. We are also advised that The Coca-Cola
Company will aggressively enforce its intellectual property rights to the fullest extent of the law
including the seeking of criminal prosecution.
•
Terms and Conditions
11

Our access to and use of the Site is subject to all terms and conditions herein and all applicable
laws. By accessing and browsing the Site, we accept, without limitation or qualification, the
Terms and Conditions and acknowledge that any other agreements between us and The Coca-
Cola Company are superseded with respect to the subject matter here of.While The Coca-Cola
Company uses reasonable efforts to include accurate and up-to-date information in the Site, The
Coca-Cola Company makes no warranties or representations as to its accuracy. The Coca-Cola
Company assumes no liability or responsibility for any errors or omissions in the content of the
Site. Any personal data (for example, our name, address, telephone number or e-mail
address)you transmit to the Site by electronic mail or otherwise, will be used by The Coca-Cola
Company in accordance with the privacy policy of the Site located here. Any other
communication or material we transmit to the Site, such as questions, comments, suggestions or
the like, will be treated as non-confidential and non proprietary. Images of people or places
displayed on the Site are either the property of, or used with permission by, The Coca-Cola
Company. The use of these images by us, or anyone else authorized by us, is prohibited unless
specifically permitted by these Terms and Conditions or specific permission provided elsewhere
on the Site. Any unauthorized use of the images may violate copyright laws, trademark laws, the
laws of privacy and publicity, and communications regulations and statutes. The Coca-Cola
Company has not reviewed any or all of the sites linked to the Site and is not responsible for the
content or the privacy policies of any off-site pages or any other sites linked to the Site. Our
linking to the Site, off-site pages or other sites is at our own risk and without the permission of
The Coca-Cola Company. The Coca-Cola Company may at any time revise these Terms and
Conditions by updating this posting. We are bound by any such revisions and should therefore
periodically visit this page to review the then current Terms and Conditions to which we are
bound.
•
Use of Site We assume total responsibility and risk for our use of the site and the Internet. It is
solely our responsibility to evaluate the accuracy, completeness and usefulness of all opinions,
12

advice, services, merchandise and other information provided through the service or on the
Internet generally. The Coca-Cola Company does not warrant that the service will be
uninterrupted or error-free or that defects in the service will be corrected.
•
Risk of Loss All items purchased from the on-line store are made pursuant to a shipment
contract. This means that the risk of loss and title for such items pass to us upon our delivery to
thecarrier.Cokesolutions.com may include links to third party websites. By
usingcokesolutions.com, our acknowledge and agree that The Coca-Cola Company is not
responsible or liable for any content or other materials found on those sites. Any dealings we
have with those third parties are between us and those third parties and The Coca-Cola Company
is not responsible for any loss of claim you may have as a result of those dealings. The Coca-
Cola Company ("seller") makes no representations of any nature what so ever, express or
implied, pertaining to the merchandise listed for sale on this site and disclaims, to the extent
permitted by law, any implied warranties, including the warranties of merchantability or fitness
for a particular purpose, or any other warranties relating to the design, condition, quality,
capacity, material or workmanship of the merchandise. Seller will not be responsible for any loss
of profits, any direct, incidental or consequential losses, or damages of any nature whatsoever,
resulting from the use of the merchandise.
•
Disclaimer Our use of and browsing in the Site are at our risk. Neither The Coca-Cola Company,
any of its agencies, nor any other party involved in creating, producing, or delivering the Site is
liable for any direct, incidental, consequential, indirect, or punitive damages arising out of our
access to, or use of, the Site. Without limiting the foregoing, everything on the Site is provided to
us "AS IS" WITHOUT WARRANTY OF ANY KIND, EITHER EXPRESSEDOR IMPLIED,
INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES
OFMERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR NON
13

INFRINGEMENT. Please note that some jurisdictions may not allow the exclusion of implied
warranties, so some of the above exclusions may not apply to us. The Coca-Cola Company also
assumes no responsibility, and shall not be liable for, any damages to, or viruses that may infect,
our computer equipment or other property on account of our access to, use of, or browsing in the
Site or our downloading of any materials, data, text, images, video, or audio from the Site. The
Coca-Cola Company is not responsible for typographic errors.
•
Applicable Law This site is created and controlled by The Coca-Cola Company in the State of
Georgia USA. As such, the laws of the State of Georgia will govern these disclaimers, terms, and
conditions, without giving effect to any principles of conflicts of laws. Jurisdiction and venue for
any disputes arising hereunder shall vest in a court of competent jurisdiction in Atlanta,Georgia
or the Northern District of Georgia. The Coca-cola Company reserve the right to make changes
to our site and these disclaimers, terms and conditions at any time.
J.ENVIRONMENTAL PROTECTION
Our business is providing consumers with simple moments of uniquely satisfying refreshment.
The Coca-cola Company work hard to infuse our environmental, health and safety performance.
Before The Coca-cola Company discharge wastewater into a natural body of water, The Coca-
cola Company treat that discharge water to a level capable of supporting fish life. Recognizing
that environmental, health and safety issues change as our understanding of these issues grows,
The Coca-cola Company have developed a comprehensive system that follows international
standards (including ISO 14001) and complies with the prevailing laws and regulations. All
plants are audited regularly and have solid environment health and safety practices - from waste
management and reuse to occupational health and safety programs. Beyond the satisfaction of
doing the right thing, our responsibility goes to the Indonesian people whose lives w touch every
day, and that responsibility includes conducting our
14

business in ways that protect the environment and promote the health and safety of our
employees at the workplace.PT Coca-Cola Bottling Indonesia has a commitment to always
comprehend, prevent and reduce any negative impacts on environment due to its production
process, to continuously provide high quality services and products to its customers and
consumers, and to create a safe working environment. The Coca-cola Company believe that all
PT Coca-Cola Bottling Indonesia employees and all its partners have important roles in
implementing the company’s environment policy. Thus, The Coca-cola Company always
encourage our employees to actively and fully involve in this environment protection effort. The
Coca-cola Company will :
•
do our best to achieve environment protection targets as required by The Coca-Cola Company
and government policy and regulation;
•
always consider environment in developing our Business Plan to ensure that environment
management is an integral part of the Company’s operation;
•
implement and maintain standardized environment management system, and continuously
enhance and monitor the system to make it in line with the Company’s operation;
•
enforce and equip our employees to be able to identify, understand and act in every effort of
preventing and reducing any negative impacts, which potentially endanger the environment;
•
develop and implement methods that increase efficient use of resources, including energy,
chemical, water, packaging and other raw materials;
•
prevent, reduce, reuse and recycle the waste of our production process and ensure asafe waste
water management; and
•
request the suppliers and business partners to comply with our environment management
standards.
•
The Coca-cola Company has made an investment of more than $60 million to build the world's
largest plastic bottle-to-bottle recycling plant and to support recycling in the U.S.
15

•
For our cold drink equipment, The Coca-cola Company has developed an innovativeenergy
management system that delivers energy savings of up to 35%.
•
The Coca-cola Company has set an aspirational goal to return to communities and nature an
amount of water equivalent to what The Coca-cola Company use in our beverages and their
production
Environmental factors
Coca Cola is affected by water accessibility. Water is necessary for soft drink development. But
should something happen, like climate change, the company may be under fire.
This affects their competitor, Pepsi, as well. But since Coca Cola’s products are primarily soft
drinks, with a water accessibility issue, the company will suffer losses.
Coca Cola has to adhere to environmental laws as they manufacture their products. If anything is
amiss, it can affect how they distribute products — or stop production completely.
Additionally, they can take advantage of humid climates who would enjoy Coca Cola drinks as a
means to cool down. This works well in developing countries where Coca Cola would have very
little “premium” competition.
Brand loyalty
Coca-Cola® is an iconic global brand that has exemplified brand loyalty throughout its 125 year
history of success. The brand has retained its popularity amidst economic downturns, changing
consumption patterns, and increased concern over healthy eating and drinking habits.
How has Coca-Cola® achieved this? Christy Amador – Senior Communications Manager at
Coca-Cola® will soon explain the answer to this question in detail at AMA Tampa Bay’s
upcoming event. However, she did give a preview of the reasons for the company’s success in
brand loyalty, which she attributes to the company’s focus on the following elements of
marketing:

1) Maintaining the Connection Between Loving the Brand and Consuming the Products
Loving the brand and consuming the products are not one in the same… but they should be. We
all love the famous polar bears that grace our TV screens during the holidays, the retro glass
bottles and classic red logo, but we can love all of that without drinking Coke products. Therein
lies the potential disconnect between brand love and consumption.
It’s the job of Coca-Cola® ’s marketing team to ensure that this potential disconnect doesn’t
become a reality. According to Christy Amador – Senior Communications Manager at Coca-
Cola® – the company uses a variety of methods to achieve this goal.
The first method is advertising. Ads show images of the Coca-Cola® brand, but also customers
drinking and enjoying Coke products as a part of their lives.
Additionally, Coca-Cola® arranges product tastings in stores. This enables customers to enjoy
the products prior to purchasing them, which serves as another way to associate the brand with
product consumption. Nothing inspires brand loyalty like giving customers a product they enjoy
from a brand they love!
2) Maintaining Flexibility in a Changing Environment
In the past 15 years the general public has become increasingly concerned with health and
consumption of sugar, which clearly impacts the consumption of Coca-Cola® ’s flagship product
– regular Coke. Coca-Cola® responded to this change deftly with the development of new
products and a change in the marketing strategy for older products.
The company developed Coke Zero (a zero calorie alternative that tastes more like regular Coke
than Diet Coke), and Coke Life (a naturally sweetened low calorie alternative to regular Coke).
In terms of changes in marketing strategy, the company has expanded the brand. Coke sells
many products outside of soda including all-natural juices, high-quality milk, Honest Tea, and
other drinks with health-related and performance benefits. They now market these products
under the Coke brand name instead of marketing them separately. This informs customers that
Coke products fit a wide variety of consumption habits and preferences. The company’s
flexibility in modifying the brand and products ensure that the Coca-Cola® brand never goes out
of style!
3) Making the Products More Premium
Coca-Cola® has changed customers’ perception of the product by positioning Coke products as
more premium, rather than bargain-priced and mass-produced. This is largely done through
packaging.
Rather than offering Coke products in extra large containers and cans, the products are now
offered in smaller containers, such as miniature aluminum cans and glass bottles. The company
has also manufactured cans and bottles in a variety of colors.
Consuming products from these new packaging concepts gives customers a more unique
experience each time they open and consume a Coca-Cola® product. As a result, the company
has seen a dramatic increase in sales from these sizes and formats.
4) Giving Back to the Community
Coca-Cola® contributes to the communities in which its products are sold in a variety of ways,
and the residual impact of this is an increase in brand loyalty. Since its inception in 1984, The
Coca-Cola® Foundation has given back more than $820 million to enhance the sustainability of
local communities worldwide.
The company is the largest private employer in Africa, and also empowers women via its 5 by 20
program, which pledges to economically empower 5 million women by 2020. Lastly, the
company pledged to give 100% of the water it used back to nature (via water reclamation
programs) by 2020, but has already reached this goal in 2016.
These initiatives are genuine and reach far and wide. Coca-Cola® touches more than customers’
taste buds. It touches their communities, homes, families and most of all – their hearts. If that
wouldn’t inspire brand loyalty, it’s hard to imagine what would!

At the Heart of it All

The initiatives described above have boosted Coca-Cola® ’s sales tremendously, and at the
upcoming event, you can find out more about how you can use these strategies in your own
company. What’s important to note is this: What lies at the heart of the changes mentioned
above is an in-depth understanding of changing consumer preferences, values, and concerns.
To achieve this, the company has always relied on extensive marketing research and resulting
insights to stay well-connected with the needs and preferences of their targeted customers. No
doubt this strategy will ensure the continued success of the iconic Coca-Cola® brand for perhaps
another 125 years – and beyond!

Facts
Coke introduced a caffeine-free drink just one year after Pepsi’s version hit the market in 1982;
later that decade, Cherry Coke quickly found itself going up against Wild Cherry Pepsi; and
more recently, Coke Zero and Pepsi Max have competed for the consumer with a taste for low-
calorie sodas.
even consumers who were not heavy soda drinkers were remarkably loyal across three levels of
the brand: the overarching Coke or Pepsi umbrella; individual product categories like regular or
diet; and further modifications such as diet lime flavor. At the umbrella level, Coke retained 94.4
percent of its loyal households from one quarter to the next; Pepsi kept 91 percent. At the
individual product category level, 90.5 percent of regular Coke and 88.9 percent of regular Pepsi
drinkers remained loyal, and the vast majority of consumers of low-calorie Coke (92.5 percent)
and Pepsi (87 percent) also stuck to their preferred brand. Loyalty rates were even higher at the
modified brand level. People drinking caffeine-free sodas tended to stick with their chosen brand
(95.9 percent for Coke, 94 percent for Pepsi). These preferences hardened even further when the
authors analyzed the subset of heavy-use consumers, whose preferences appear all but set in
stone. Commented [6]: https://www.strategy-
business.com/blog/What-Can-the-Cola-Wars-Teach-
Us-about-Brand-Loyalty?gko=e8aae

Ansoff Matrix
COCA-COLA: ANSOFF MATRIX
The objective of every business is to grow, be it a start-up that’s just closed its first deal or an
established market leader seeking to further increase profitability. But how does a business
decide upon the best strategy for growth? The Ansoff Matrix management tool offers a solution
to this question by assessing the level of risk – considering whether to seek growth through
existing or new products in existing or new markets.
To demonstrate the robustness and legitimacy of Ansoff’s Matrix, it has been applied to Coca-
Cola, the most well-known trade name in the world and a company today operating in over 200
countries; and a brand that has undertaken countless growth strategies in its 100+ year history.
Organisations often need to decide on the best strategy for growth. Although a number of options
are available, not all strategies are suitable for every organisation. Factors such as market
demand, capabilities of organisations and their willingness to take or avoid risks impact on the
choice of strategies. Ansoff matrix guides organisations in their pursuit of strategies.
Harry Igor Ansoff, a Russian American mathematician, developed the Matrix in 1957. The
matrix outlines four possible growth strategies available for an organisation. These strategies are
market penetration, market development, product development and diversification. The article
‘What is Ansoff Growth Matrix’ offers more insights into the matrix.
To demonstrate usefulness of Ansoff matrix, we have applied it to Coca-Cola. Coca-Cola is one
of the most well-known brands in the world. It is available in almost every country and has a
history of more than 100 years.

Market Penetration: (EXISTING Market, EXISTING Product)

This strategy involves an attempt to increase market share within existing industries, either by
selling more product to established customers or by finding new customers within these markets
– typically by adapting the ‘Promotion’ element of the Marketing Mix. Due to the incredible
strength of Coca-Cola’s brand, the company has been able to utilise market penetration on an
annual basis by creating an association between Coca-Cola and Christmas, such as through the
infamous Coca-Cola Christmas advert, which has helped boost sales during the festive period.
It refers to selling existing products to existing markets (BPP Learning Media, 2010). Coca-Cola
pursues market penetration as one of its growth strategies. It has been possible for the company
due to an incredible strength of Coca-Cola’s brand name.

Product Development: (EXISTING Market, NEW Product)

This involves developing new products for existing markets by thinking about how new products
can meet customer needs more closely and outperform competitors. A prime example of this was
the launch of Cherry Coke in 1985 – Coca-Cola’s first extension beyond its original recipe – and
a strategy prompted by small-scale competitors who had identified a profitable opportunity to
add cherry-flavoured syrup to Coca-Cola and resell it. The company has since gone on to
successfully launch other flavoured variants including lime, lemon and vanilla.
It refers to the ‘launch of new products to existing markets’ (BPP Learning Media, 2010, p.162).
A good example of product development is the launch of Cherry Coke in 1985. It is considered
to be Coca-Cola’s first extension beyond its original recipe. Another example is the development
of Fanta Icy Lemon. Coca-Cola developed this new product to sell to its existing markets to
increase sales.

Market Development: (NEW Market, EXISTING Product)

Thirdly, the market development strategy entails finding a new group of buyers for an existing
product. The launch of Coke Zero in 2005 was a classic example of this – its concept being
identical to Diet Coke; the great taste of Coca-Cola but with zero sugar and low calories. Diet
Coke was launched more than 30 years ago, and whilst more females drink it every day than any
other soft drink brand, it came to light that young men shied away from it due to its
consequential perception of being a woman’s drink. With its shiny black can and polar opposite
advertising campaigns, Coke Zero has successfully generated a more ‘masculine’ appeal.

It is the ‘process by which the firm seeks new markets for its current products’ (BPP Learning
Media, 2010, p.161). Coca-Cola started its journey in USA. It now operates in almost every
country in the world. This is an example of geographical market development. Coca-Cola had a
successful launch of Vanilla Coke in USA. The company then decided to launch it in the UK.
Diversification
It ‘occurs when a company decides to make new products for new markets’ (BPP Learning
Media, 2010, p.162). Coca-Cola has used diversification as one of its strategies on a number of
occasions. For example, it has added Chi Ltd, a Nigeria-based leading dairy and juice company,
to its enormous portfolio. Likewise, Coca-Cola spent $4.1 billion to acquire Glaceau, including
its health drink brand Vitaminwater in 2007. As markets in many parts of the world are heading
less-sugary future, Coca-Cola is focusing on the growing healthy drink sector.

Related Diversification: (NEW Market, NEW Product)

This involves the production of a new category of goods that complements the existing portfolio,
in order to penetrate a new but related market. In 2007, Coca-Cola spent $4.1 billion to acquire
Glaceau, including its health drink brand Vitaminwater. With a year-on-year decline in sales of
carbonated soft drinks like Coca-Cola, the brand anticipates the drinks market may be heading
less-sugary future – so has jumped on board the growing health drink sector.

Unrelated Diversification: (NEW Market, NEW Product)

Finally, unrelated diversification entails entry into a new industry that lacks important
similarities with the company’s existing markets. Coca-Cola generally avoids risky adventures
into unknown territories and can instead utilise its brand strength to continue growing within the
drinks industry. That said, Coca-Cola offers official merchandise from pens and glasses to
fridges, therefore exploiting its strong brand advocacy through this strategy.

Conclusion:
What is clear with Ansoff’s Matrix is the incremental increase in risk offered by the five
strategies, due to the growing cost with each step beyond market penetration and uncertainty of
operating in new markets and industries:
Going back to the example of Coca-Cola, the firm’s emphasis on market penetration and other
non-diversification strategies therefore suggests it is a relatively risk-averse company, when
compared with a firm like the Virgin Group.
That said, there is no one best strategy to select, with each offering different benefits to
companies in various circumstances. For example, Coca-Cola has had little need to diversify
relative to the Virgin brand which traditionally operates in uncertain markets such as the volatile
airline industry, meaning diversification actually spreads risk.
Even so, Coca-Cola would not be the power house it is today without knowing when to step out
of its comfort zone – the Glaceau acquisition being a clear case in point. Even though there was
minor potential that it could dilute Coca-Cola’s reputation for carbonated soft-drinks in the short
term, it has been deemed a suitable strategy given the brand’s long-term view for growth in the
face of a changing market.
ADD Banned
The Advertising Standards Authority (ASA) has clamped down on the soft drinks firm for a 30-
second ad that led consumers to believe 75 seconds of "laughing out loud" could burn off 139
calories.
Coca-Cola has criticised the ASA’s ruling by pointing out only ten people contacted the ad
watchdog about the ad despite it reaching an audience of 39 million people.
A Coca-Cola spokeswoman said: "The advert was intended to explain how people can help
manage their energy balance by actively burning off calories consumed. Given the growing
problem of obesity, we believe it is important for more people to understand this information.
"Raising awareness of energy balance is part of our global commitment to help tackle obesity
and we will continue to use our advertising to address it."
Viewers objected to the ad that featured a picture of a Coca-Cola can alongside text stating "=
139 Happy Calories", followed by a series of activities and on-screen text describing activities
with messages such as "10 minutes of letting your body do the talking +" and "75 seconds of
laughing out loud +".
The ASA decided to ban the ad after ruling creative was ambiguous and did not clearly
communicate to all viewers that it was a combination of all the activities depicted that would
burn off 139 calories.
Coca-Cola managed to escape a further reprimand from the ASA over viewer complaints that the
30-second ad and a separate 120-second ad implied a general health claim.
The ASA accepted the 30-second spot was presenting general information about the calorie
content of its drinks rather than making health claims about the products featured in the ad.
Another viewer complained a 120-second TV ad that described Coca-Cola’s ongoing
commitment to tackling obesity was also guilty of implying a general health claim.
The ASA accepted the ad presented factual information about the brand and health issues, but
did not consider the claims implied a general health claim for particular products featured in the
TV ad.
Separately, an ad for Diet Coke that showed a woman rolling a can down a hill to a man
operating a lawn mower escaped a ban after a viewer complained it was likely to "condone or
encourage behaviour that prejudiced health or safety".

Coca Cola Criticized by Greenpeace ( a non-governmental environmental organization with

offices in over 39 countries and an international coordinating body in Amsterdam, the
Netherlands) for
failing to address the urgency of the plastic waste problem with
its new global environmental plan.

The long awaited policy from the world’s largest soft drinks company featured a series
of measures weaker than those previously announced for Europe and the UK.

The plan failed to include any reduction of the company’s rapidly increasing use of
single-use plastic bottles globally, which now stands at well over 110 billion annually.

The plan contrasts starkly with pledges to reduce the use of disposable plastic made by
many retailers..

Coca-Cola produces over 110 billion single use plastic bottles each year, and billions of
these end up in landfills, rivers, and the sea.

Greenpeace estimates that Coke has increased its number of single-use plastic bottles
by nearly a third (31%) since 2008 and that they now account for almost 70% of Coke’s
packaging globally [1]. Today’s announcement revealed no plans that would reverse
this trend.

Greenpeace welcomed the announcement that Coke will be increasing the recycled
content of its single-use plastic bottles from the current paltry 7% to 50% globally by
2030, although it is less ambitious than Coke UK’s target of 50% by 2020 and Coke
Europe’s target of 50% by 2025. Greenpeace has been calling on Coke to move to
100% recycled content.
And while Coke now backs Deposit Return Schemes in the UK, following pressure from
environmental groups [2], the company has not announced a similar policy change at a
global level and remains opposed to schemes in many other countries, including
Canada, the Netherlands, and Israel.

Greenpeace is urging Coca Cola to make firm commitments to cut its plastic production
by investing in alternatives to single-use plastic bottles, including committing to expand
its use of new delivery methods such as Freestyle dispensers and self-serve water
stations with reusable containers [3].

Greenpeace launched a global campaign on Coke in April 2017, involving supporters

from five continents. Greenpeace also delivered a petition signed by more than 585,000
people urging Coke to reduce its plastic footprint.

PRODUCT LIFE CYCLE:

The Coca-Cola formula has always been a well-kept secret and has not changed through the
years. In other respects, however,Coca-Cola has been constantly developing.This has been
important in maintaining the brandin its number one position. It is quite natural for products to
go into decline, at some stage,after being introduced into a market. This is known as the product
life cycle. The trick is to delay this decline by constantly developing the product and or the
brand, to extend its life cycle.Within an industry sector it is possible top lot the position of
several similar products on a product life cycle diagram.
What about the Coca-Cola brand? It has been around for over 100 years. How has it maintained
its leadership position even though the product has not changed in over 100 years? The answer is
that Coca-Cola are constantly developing the brand image and reinforcing the core
product benefits
of taste and refreshment to ensure that the brand grows instead of declining.One way Coca-Cola
does this is to make the product more accessible, ensuring that it is always there to meet
changing consumer needs. For example, you would probably never have tasted Coca-Cola if it
had remained available only over the counter from a soda fountain. Once the decision was made
to bottle the drink then it became possible to sell the product outside the main cities and indeed
outside America. Years later the 330ml can continued the growth and development of the brand.
The 1990s saw the introduction of the 500ml screw cap bottle and the 2 litre contour bottle was
launched in February 1999. The lifecycle of the brand has certainly been extended by making
Coca-Cola more accessible through new package forms.
Another way to extend a product through its life cycle is to adapt it as consumers’ needs change.
For diet Coke it was quite similar. It began in the1970s when market research indicated that
consumers’ attitudes to their diet and their health were changing. Coca-Cola conducted careful
and extensive research and as are sult identified an opportunity to develop a product that would
meet these changing consumer needs. The identification by The Coca-Cola Company of this
unmet need with consumers and the unique opportunity it represented heralded the launch of diet
Coke.When diet Coke was first launched in 1982 no one could have predicted the huge impact it
was to have on the marketplace. The initial advertising campaign was carefully planned,with no
expense spared the introductory sixty-second commercial cost $2.5 million tomake. By 1986 diet
Coke was being sold in 61 countries with 60 million drinks sold everyday.It was a phenomenal
success.
When companies with existing brands introduce new products under those brand names to the
marketplace, this is known as a brand extension strategy. A brand extension strategy offers a
number of advantages. A popular brand name gives the new product instant recognition and
immediate acceptance. However, brand extension is not without risk. If the brand extension does
not live up to the existing brand’s reputation then it could damage its image.Diet Coke is an
example of a successful brand extension because it has grown and established itself within its
own right. Within a year of its launch it was the biggest selling diet soft drink in America and by
1987 it was the third largest selling soft drink of any kind in the world.Diet Coke is now the
world’s leading low-calorie soft drink, sold in a total of 149 countries with most of the sales
being in the USA, Britain, Germany, Canada and Australia.Northern Ireland has the second
highest per capita consumption of diet Coke in the world.This is second only to the Cayman
Island where the consumption of diet Coke is driven by the high tourist industry

OPERATIONS MANAGEMENT:
The brand is owned by The Coca-Cola Company which works with franchisees across the world.
These franchisees perform the bottling and canning operations and are also known as packagers.
Primarily, Coca-Cola is manufactured by franchisees who are the world's leading bottling and
canning companies. This franchise business is strictly controlled by The Coca-Cola Company.
Soft drinks manufacture is a competitive business. Manufacturing techniques are continually
improved. This helps meet the highest quality standards for its products using the most cost
effective production techniques. For example, very small changes in the shape of the can could
save a canning factory millions of dollars in production costs.
The production of Coca-Cola involves two major operations:
● creating the packaging material
● bottling and canning the finished drink.
For many years, Coca-Cola was produced in glass bottles. Because of the high cost of
distributing bulky bottles, they had to be manufactured close to where the bottling took place.
Today, this is no longer so important since new packaging methods have revolutionised the
process.
Advanced bottling and canning technology makes Coca-Cola cans and bottles very light but
extremely strong. The Company has invested a lot of time and money in research and
development to ensure the most effective life cycle impact of its packaging.
By using the minimum quantities of materials in packaging, the cans and plastic bottles are
simple to crush or to reprocess at the end of the initial life cycle.
Cans are delivered in bulk to a canning plant. At this stage the cans are shaped like an open cup
ready to receive the liquid drink. They are not fully formed because the ring pull end has still to
be fitted.
After they have been inspected to check that there are no faults, each can goes through a rinsing
machine to make sure it is clean and ready for filling.
CULTURAL CLASH:
With the rise in global demand for Coca Cola the company has had to adapt its product and
marketing techniques to the countries that they want to sell their product in. Coca Cola has done this
in a number of different methods without hurting their initial brand image. An example of The Coca -
Cola Company's adaptability is in parts of Africa where infrastructure is not highly developed. To
counter this problem The Coca - Cola Company has distributed its products to vendors in small
amounts because most distributors have a financial inability to buy large stocks of the product. The
company has also used local transportation methods such as paddling canoes up rivers to distribute
their products to remote villages. Coca Cola also adapts to the climate that it is selling its products in.
For example in Africa where the climate is warm and humid Coca Cola uses solar panels on their
coolers. Because Coca Cola sells products in some poverty-torn places they also use glass bottles that
are recycled up to 70 times. Coca Cola has also stated that consumers pay for the liquid and not the
packaging of the liquid to ensure that more people can purchase their products. Coca Cola has
managed to make a link with brand to sentiment which they can easily adapt to cultural ideas. It is
the way that Coca Cola adapts to different countries situations that makes their global market so
successful.

Hey this is me dingle writing this n i assure u that i am madddddd

Cost control Commented [7]: https://www.marketingweek.com/201
4/10/21/coke-marketers-to-face-tougher-cost-control-
measures-in-expanded-efficiency-drive/
Coca-Cola (KO, -0.26%) reported a better-than-expected quarterly profit, helped
by aggressive cost-cutting and lower commodity costs.The soda maker, which is
targeting $3 billion in annual cost savings by 2019, has been cutting costs
through job reductions and selling some of its bottling operations and factories.
Coca-Cola said on Tuesday it would refranchise all its North America bottling
operations by the end of 2017, three years earlier than expected, and also
refranchise its bottling operations in China. The company is also trying to boost
sales by raising prices and promoting smaller pack sizes. “In the United States, in
particular, we have a price-pack architecture strategy, promoting the mini cans
and the 8-ounce glass bottles,” CFO Kathy Waller told Reuters, adding that the
strategy was doing well in the region. Coca-Cola’s global sales volume rose 3% in
the fourth quarter ended Dec. 31, helped by higher demand for Coke, Sprite, and
Coke Zero. Net operating revenue fell 8% to $10 billion, the third straight
quarterly drop. Excluding the impact of acquisitions, divestitures and foreign
currency, revenue declined 1 percent. Revenue from North America, its biggest
market, fell 7%. However, net income attributable to shareholders jumped nearly
61% to $1.24 billion, or 28 cents per share, in the quarter. Selling, general and
administrative expenses fell 9.2 percent to $3.94 billion. Lower costs for
commodities also helped margins in the quarter, Waller said.

Sugar prices have been pressured due to expectations of a bumper crop in Brazil
in 2016/17, while corn prices have been depressed due to a global glut. Sugar and
corn are the two main ingredients used by soft-drink makers. eExcluding items,
the company earned 38 cents per share. Analysts on average had expected
earnings of 37 cents per share and revenue of $9.91 billion, according to
Thomson Reuters I/B/E/S. Coca-Cola forecast 2016 currency-neutral adjusted
earnings growth of 6% to 8% per share. The company said it plans to buy back $2
billion-$2.5 billion of shares in 2016.

SOMETHING THAT LOOKED IMP

The move is in response to Coke’s media investments in the second quarter,

which chairman and chief executive Muhtar Kent admitted “underperformed

compared to the [available] opportunities” such as the World Cup. He said it

would implement the zero-based budgeting initiative to marketing as well as

across the rest of the business at the start of 2015 and added it would take time

for the marketing investments “to flow back into benefits”.

It is part of series of operational changes being prepped for next year to cut

$3bn in annual expenses by 2019 after attempts to drive growth this year

stalled. Changes include streamlining it operational model and launching more

targeted brand investments alongside an “aggressive expansion of the

company’s productivity model and clearer roles for each market.

Kent said: “[The changes] will bring complete clarity to the roles and

responsibilities on a geographical basis. We’re not going to be throwing

volume out the door. It will be a more balanced approach toward how we

generate revenue and how it flows into bottom line”, said Kent.

“There’s a clear line of sight in terms of how we invest and how we get returns

from investment. It’s a transparent line of sight in terms of how we look at the

segmented approach.”
The approach will work toward maximising value sales through innovation in

mature markets such as Great Britain and the US, while prioritising value sales

through deeper segmentation in developed countries. Meanwhile, emerging

markets including China and Indonesia will focus on growth through volumes.

As part of the segmented approach, Kent said the company would scale global

investments faster through a networked marketing model. The approach is

currently being put in practice in the company’s search for a successor to the

“Share a Coke” campaign. It is understood the business had grouped together

some of its big agencies earlier this year to try and come up with a successor to

the personalisation promotion.

The raft of changes builds on Coke’s initial cost-cutting plan, which it outlined

earlier this year around a five-point marketing-led plan.

The plan will remain unaffected in light of the announcements, said Kent, but

its execution in various markets could be improved, notably Europe.

Coke hopes the upcoming overhaul will relieve pressure after it was forced to

revise financial targets for the rest of the year. The company’s sales have failed

to pop in recent quarters as consumes shun big fizzy drinks brands in favour of

healthier alternatives. Sales fell to 11.98bn in the three months to September

from $12bn a year earlier, while volumes climbed just 1%.