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a) INTRODUCTION:

Founded in 1886,the Coca Cola company is the World’s leading manufacturers, marketer &
distributors of non-alcoholic beverage concentrates and syrups .The company’s corporate
headquarters are in Atlanta, with local operation in over 200 countries around the World.
Although Coca Cola was first created in the United States, it quickly become popular wherever it
went. Our first International bottling plant opened in 1906 in Canada, Cuba and Panama, soon
followed by many more. Today Coca Cola has a portfolio of more than 3000 beverages. Coca-
Cola has 92,400 employees Worldwide , more than 70% of our income comes from outside the
U.S but the real reason we are a truly global company is that our products meet the varied taste
preferences of consumers everywhere.

1. VISION AND MISSION


1.1. VISION STATEMENT:
Our vision guides every aspect of our business by describing what we need to accomplish in order
to continue achieving sustainable growth.

People: Be a great place to work where people are inspired to the best they can be.
Portfolio: Bring to the world a portfolio of quality beverages brands that anticipate and satisfy
peoples desires and needs.

Partners: Nurture a winning network of customers and suppliers , together we create mutual
enduring value.

Planet: Be a responsible citizen that make a difference by helping build and support sustainable
communities.

Profit: Maximize long term return to shareowners while being mindful of our overall
responsibilities.

1.2 MISSION STATEMENT:


 Missions statement is the statement of company’s purpose that what it wants to accomplish .
in order to achieve mission of increasing market share and maintaining good relation with our
with our customers all over the world , we wish to create value for all the constraints we serve,
including our consumers, our bottlers and our communities. The Coca Cola company creates
value by executing business strategy guided by four key beliefs.
 Customer is king: Customer demand desires everything we do.
 Brand Coca Cola is the core of our business .
 We will serve consumers a broad selection of the non- alcoholic ready to drink beverages they
want to drink throughout the day .
 We will be the best marketers in the world.

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Everything we do is inspired by our enduring Mission
 To Refresh the World….. in body ,mind and spirit.
 To inspire moments of Optimism….through our brands and actions.
 To create value and make a Difference…everywhere we engage.

1.3 OBJECTIVE OF COCA COLA:


 The company has sales based objectives. Everything else ( marketing plan, advertising plan ,
production etc.) is derived from this objective.
Currently the company’s objectives is to
“Increase the volume of sales up to the maximum level as much as
possible during the current fiscal year”
 The company sets its objectives keeping in view the past performances. Historical trends ,
Current market positions, Economic conditions , macro and micro environment factors, social
values , market size and growth rate , future expectations and predictions.

2 OFFERINGS AND BRANDS:


 OFFERINGS:
 An offering in marketing is the total offer to your customers. An offering is more than the
product itself and includes elements that represent additional value to your customers, such as
availability, convenient delivery, technical support or quality of service. A strong offering
differentiates your products from competitors and creates value by meeting customers’ wider
needs better than other options.

 First, Understand Customer Needs


 Offer Support
 Offering Convenience
 Strong Customer Service
 Value Bundling

 BRANDS:
The marketing practice of creating a name, symbol or design that identifies and differentiates a
product from other products An effective brand strategy gives you a major edge in increasingly
competitive markets. But what exactly does "branding" mean? Simply put, your brand is your
promise to your customer. It tells them what they can expect from your products and services, and
it differentiates your offering from that of your competitors. Your brand is derived from who you
are, who you want to be and who people perceive you to be.
We believe in giving our customers options so they can make their own decisions. If you want to
have a glass of Minute Maid orange juice in the morning, a mini-can of Coca-Cola for your

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morning break, a POWERADE ZERO with your afternoon workout, or a caffeine-free Diet Coke
at night, we make those selections available. Variety is the foundation of our commitments to our
consumers. With our range of beverage products, package sizes and nutrition information provided
on our packages, we strive to inform, motivate and empower consumers to make sensible beverage
choices. Our goal is to help people around the world lead healthier lives by providing beverages
for every lifestyle, life stage and life occasion .They range from regular and low- and no-calorie
sparkling beverages to still beverages such as 100 percent fruit juices and fruit drinks, waters,
sports and energy drinks, teas and coffees, and milk- and soy-based beverages. All of these
beverages are made of high-quality ingredients and can be part of a healthy, balanced diet. In 2011,
the Company launched more than 500 new beverage products, including more than 100 low- and
no-calorie options for consumers. To date, we have more than 800 low- and no-calorie beverage
products, accounting for nearly 25 percent of our 2010 unit case volume. coca cola zero, now
available in more than 130 countries, has been an important addition to these no-calorie beverage
alternatives .As an additional way to help consumers manage calories, we continue to introduce
smaller packaging sizes in markets throughout the world. In the United States, we introduced the
8-ounce, 100-calorie aluminum cans of Coca-Cola, Cherry Coke and Sprite in 2007. We also began
introducing our new "Coca-Cola mini can" at the end of 2009, offering consumers in the U.S. and
Australia a 7.5-ounce, 90-calorie serving of Coca-Cola, Cherry Coke, Sprite, Fanta and Orange.
The mini-cans are also available in Canada, Korea and Thailand.

3 MAJOR PRODUCTS OF COCA COLA COMPANY:


COCA COLA ZERO:
Coca cola zero has been one of the most successful product launch in coca cola’s history .In 2007
Coca cola’s sold nearly 450 million cases globally , put into perspectives , that roughly the same
size as Coca Cola’s total business in the Philippines , one of our top 15 markets . As of September
2008, Coca Cola zero is available in more than 100 countries.

ENERGY DRINKS:
For those with a highly intensity approach to life, Coca Cola’s brand of energy drinks contain
ingredients such ginseng extract , guarana extract , caffeine and vitamins B.

JUICES/JUICE DRINKS:
We bring innovation to the goodness of juice Coca Cola’s , more than 20 juice and juice drinks
brands , offering both adults and children nutritious , refreshing and favorable beverages.

SOFT DRINKS:
Coca Cola’s dozens of soft drink brands provide flavor and refreshment in a variety of choices .
from the original Coca Cola to most recent introductions , soft drinks from the Coca Cola company
are both icons and innovators in the beverage industry .

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SPORTS DRINKS:
Carbohydrates fluids, and electrolytes team together in Coca Cola’s Sports Drinks , providing rapid
hydration and terrific taste for fitness seeker at any level.

TEA AND COFFEE:


Bottles and caned teas and coffees provide consumer’s favorite drinks in convenient take -
anywhere packaging , satisfying both traditional tea drinkers and today’s growing coffee culture.

WATER:
Smooth and essential , our waters and water beverages offers hydration in its purest form .

OTHER DRINKS:
So much more than soft drinks Coca Cola’s brand also includes milk products , soup ,and more so
you can choose a Coca Cola’s company product anytime , anywhere for nutrition , refreshment or
other needs.

4. Value by Coca-Cola company:


Coca-Cola’s values serve as a compass for their actions and describe how they behave in the world.
The Culture of Coca-Cola is defined by its 7 core values:
 Leadership: The courage to shape a better future
 Collaboration: Leverage collective genius
 Integrity: Be real
 Accountability: If it is to be, it's up to me
 Passion: Committed in heart and mind
 Diversity: As inclusive as our brands
 Quality: What we do, we do well
 Being a brand: Inspire creativity, passion, optimism and fun

4.1 Value Provided:


Coca-Cola company provide their customers, a soft and refreshing taste with a great diversity in
their portfolio by having highest quality standards for the product. Coca-Cola creates such values
by focusing the market, observing and learning about their customer’s needs.
Coca-Cola believes in establishing trustworthy relationship with customers, who rely on their
products. By providing maximum value, Coca-Cola is establishing it’s loyal customers. [1]

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5. Core Competency:
The core competency of Coca-Cola, which distinguished it from every brand in market place
includes 3 types of competencies:

1. Product Competency:
Coca Cola has its product competencies in its brand name and the distinct taste that Coke
offered. The company’s brand name and popularity and identity all over the world are what make
it saleable to all types of individuals. It is able to create products that taste goods and are liked by
many people.

2. ADMINISTRATIVE COMPETENCY:
Coke has a well-organized organization structure which gives it administrative competency. It
ensures that the company performs well and achieves its targets.

3. PROCESS COMPETENCY:
Coca cola’s process competency is the ability to lead the world’s most sophisticated system of
independent bottling partners while creating value for their retail and restaurant customers. Over
the years, they’ve acquired and managed a number of Coca-Cola bottling partners with the aim of
improving performance, optimizing manufacturing and distribution systems, and ultimately
refranchising the bottling territories back to independent status.

The total core competencies of Coca Cola can be summarized as strong brand value, franchise
network, cost controls, distribution network, administrative control and its marketing efforts.[2]

B) MARKETING STRATEGY

6. STP OF COCA COLA


6.1 Segmentation:
Coca Cola Company is the world’s leading manufacturer, marketer, and distributor of soft
beverages. Coca Cola uses "Multisegmented" targeting strategy which means that the company
has more than single, well- defined, market segment.
6.1A) Geographic segmentation:
Coca cola has segmented the market (consumers) by climate and region. It segments its market in
continents includes: Asia, Africa, North and South America, Antarctica, Europe and Australia.
Coca cola sets his market and target the market over 200 countries. It also segments the market
with in the region of targeted country which includes: States, Cities and zip codes. Climate: Coca
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Cola’s consumption in the summer is approximately 60%and 40% in the winter; therefore, It
focuses more in hot area in the world. Such as Africa and Asia.
6.1B) Demographic segmentation: Coca cola segments the market on the basis of age, gender as
well as for income.
Age: It segments the consumer age between 15-25 years old and 40 plus.
Gender: Targets both male and female with wide variety drinks.
Income: Segments income level. for example, by packaging: for low level income the company is
selling returnable glass bottle; for high level income, the company is selling coke in tins.
6.1C) Psychographics segmentation: It segments the market into different buyers based on social
class, lifestyle or personality characteristics.People who are brand conscious will not drink
beverages of less known brands. They will try to show their status by drinking Coca-Cola.
The level of education is another factor that the company is paying attention to. In an high
percentage education, the company can use advertisements to convey the company massage.
Because Coca Cola is a recognized world brand, people will drink it without hesitate.
Coca cola also used personality variables such as Coca Cola Zero that target more mature,
practical, and cerebral but good humored personality type.
6.1D) Behavioral segmentation: Coca cola also segments the buyers by their knowledge, attitude
uses and response concerned to the product. It target that part of market that have some knowledge
about the Coca cola brands.
6.1E) Occasion segmentation: It divide the market into segments according to occasions when
buyers get the idea to buy, actually make their purchases or use the purchased item. This type of
segmentation helps the company to build up product usage. For example Coca cola advertises more
of its brand in summer.
6.1F) Loyalty segmentation: A market also segmented by this company by the loyalty of
consumer. i.e consumers can be loyal to the brands. Sometimes Coca offers prize with the product
to make consumers for long time.

6.2. Targeting:
The target market is where Coca cola focuses its marketing efforts as it feels this is where it will
be more productive and successful. The target market for Coca cola is very wide as it satisfies the
need of different consumers ranging from healthy diet consciousness through Diet Coke to the
average human through its best drink regular Coke.
Coca cola targets its market by differentiated marketing strategy through which it satisfies several
market segments and separate offers for each.

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Coca Cola targets the consumer on the basis of:
Age: Generally, Coke does not have a specific target and is addressed to everyone.But the main
consumers are 12-30 years old people; even if there is no specific product or communication for
less than 12 or more than 30, the brand succeed in reaching them, by .company partnerships for
example restaurants, fast foods such as McDonald’s . So, the core target audience of Coca Cola is
youngster or youth. Their targeting is not based on gender but the results show that both genders
like this product and use it (almost 50/50). Coca Cola consider each customer as a target and a
potential consumer. All age groups are being targeted but the most potential is the age group from
18-25 that covers around 40% of total age segments.
Life style: It has no life style targeted but more and more busy life style and mobile generation
(youth) are considered to be the most important part of Coke’s consumers.
Occupation: It had no occupation targeted but consumers are mainly students and family oriented
people.
6.3. Positioning: Positioning is the process of creating the image the product holds in the mind of
consumer relative to the competitive product. Positioning helps the costumer what is unique in
product of Coca cola compared with Pepsi. Positioning of Coca is done by its popularity of brands
for which Coca has spent billions of dollars over time. Coca Cola has strategically positioned itself
within the world soft drink market. Coca is thus willing to keep the same core product which is
coke, but it adapts the offer to local needs. They use strategic positioning in order to have the same
image all around the world, which is a success because it is perceived today as a part of daily life
everywhere. This perception of the brand by the consumer leads to a high degree of loyalty and
makes the purchasing decision more automatic. Coca Cola has been successful by using Unique
Selling preposition as “Live the coke side of life”, related to joy and happiness. Consumers
basically associate this brand with these emotions. When the name of Coke is mentioned, the first
thing that comes into mind is fun and entertainment.
Perception of Coke compared to its biggest rival Pepsi:
Perception is commonly called “Positioning” or hitting an angle. Coke is perceived against Pepsi
on the basis of :

1)Brand as a product: Coke is much more tasty than Pepsi or at least people clearly prefer
Coke over Pepsi.

2)Brand as a symbol: Coke’s is much more known than Pepsi.


3)Brand as organization: Coke is perceived to be better brand in terms of engagement through
social and environmental concerns for example, with a strong brand universe, where Pepsi does
not have specific universe that make people dream.

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7. Marketing Channels for Coca-Cola
Coca-Cola utilizes the distribution channel as a marketing strategy to bridge the demand and
supply gap and ensure that their products reach their different market segments. The company
keeps altering their distribution channels to match their expansion efforts for a larger market share.
Over the years, Coca-Cola has managed to develop a solid distribution network across the globe.
Coca cola uses two major channel distribution strategies:
7.1. Direct selling:
Coca cola states, “our principal channels are small retailers, such as restaurants and bars,
supermarkets and third party distributors” . The strategy of using small retailers to reach their
consumers is a form of direct selling where the company supplies their various products to the
retailers. The company uses its own resources to deliver stock to the retail outlets, meaning the
company generates only a small part of revenue through this strategy. Such as Wal-Mart get their
supplies from the company directly.
7.2. Indirect selling:
Indirect selling however is the most profitable strategy. Indirect selling is a strategy whereby Coca-
Cola engages various distributor agencies, through partnership and the company delivers the
products to the distributors who then supply to the direct retailers. However, the most creative
mode of direct selling strategy is the use of coke vending machine in strategic locations like gas
stations and school premises. In this type of selling Coca supplies product to the distributors then
provide to the retailers and then finally retailers supplies to the consumer.
Arrays of points of sales that Coca-Cola products can roughly be categorized as:
Wholesalers/ distributer-Retail/ corner stores/ super markets- Restaurants/ cafes/ night clubs–
Petrol stations– Automated teller machines.

The firms distribution system is one of the most well planned and executed compared to all other
drinks of the same category. It has such an impact on consumers and is so successful that even
wholesalers and distributers need the product for their business’ success.

8. Promotion Mix Of Coca Cola:


Promotion Mix refers to the blend of several promotional tools like advertising, personal selling,
public relation, sales promotion, direct marketing and online marketing used by the business to
create, maintain and increase the demand for goods and services. The fourth element of the 4 P’s
of Marketing Mix is the promotion; that focuses on creating the awareness and persuading the
customers to initiate the purchase.

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Elements Of Promotion Mix:

Advertising

Personal Selling

Sales Promotion

Public Relation

Direct Marketing

9. Advertising:

The advertising is any paid form of non-personal presentation and promotion of goods and services
by the identified sponsor in the exchange of a fee. Coca cola advertising has “been among the most
prolific in marketing history.” The logo, bottle design, and brand image are internationally
recognizable. Their product is ranked the number one soft drink. It mainly does national
advertising.

Due to intense competition, the company spends heavily on advertisement. It sets its
advertisement budget on the basis of competitor based budgeting. Major competitor of Coca Cola
is Pepsi and as Coke realizes that Pepsi has increased its advertising budget, straight way Coca
Cola management plans to do the same so that they can compete in advertising department as well.
Type of advertising it adopts is reminder type. The reason behind this fact is that Coca Cola is such
a product that is currently at maturity level so for such a product companies mostly go for reminder
type of advertisement so that they can penetrate more and more and same is the case with Coke.
Before creating advertising message the Coca Cola company gives lots of time to the factor that
the message must gain the customers’ attention. For example, in India Coke slogan “Thanda
matlab Coca Cola” has gained reasonable customer attention. The company carefully considers
all touch points a consumer has with the brand as potential delivery channels for the brand’s
message, and makes use of all relevant communication systems. Coca cola employs a diverse range
of integrated marketing communications to advertise through print media, point of sale materials,
T.V commercials and outdoor advertising.

Mediums Of Advertisement:

Print Media: Coca Cola is said to have a different print media department. This department
advertise the company through newspaper, broachers, magazines, articles and other forms of print
media.

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Point of Sale Materials: Merchandising is essential to communicate to the consumer at the point
of purchase. Sales people and delivery personnel both take the additional responsibility of
merchandising. If required, special teams are sent to specifically merchandise its products. It
includes posters and stickers displayed in different areas like Vizi coolers, freezers, display racks.

T.V Commercials: Coca Cola relies heavily on TV ads to reach out to the masses and uses
different marketing campaigns to connect with its customers emotionally and ultimately convey
different product attributes. TV ads focus on both rural as well as urban crowd to catch them. It
features different brand ambassadors from time to time.

Outdoor Advertising: Coca Cola is very much conscious about billboards and hoardings.
Billboards are located in many locations in cities. They are usually found at cross roads, buildings
and shops. In Pakistan and India the Coca Cola can be seen painted on walls, bus stands, dhabas
etc. focusing in rural areas.

9.1. Personal Selling:

This is one of the traditional forms of promotional tool wherein the salesman interacts with the
customer directly by visiting them with the objective to influence the customer to purchase the
product or services. Personal selling in the Coca Cola company often is done in a business-to-
business fashion. An example of this is seen when the Coca Cola was trying to boost their sales in
North America by forming alliances with Nestea to create coffee and tea drinks.

Coca Cola has many sales people, who are individuals representing the company to communicate,
sell, service and build relationship with customers. These salespeople promote their product to
different customers within their regions, and once they sustain a customer, they sell their product
to them and service them many times in a week. These individuals form close relationships with
the customers in order to continue business with them. According to survey, 13.33% people fails
to recall Coca Cola through images and taglines and 86.67 people are able to recall it through
images and taglines.

9.2. Public Relations:

The marketers try to build a favorable image in the market by creating relations with the general
public. The public comprises of the customers, employees, suppliers, distributors, shareholders,
government and the society as a whole. The type of public relation tools that the Coca Cola
company uses widely are product placements and sponsorships. The Coca Cola company often
uses is a spokesperson to appeal to the youth. An example of this can be seen in China where the
Coca Cola company has increased advertising containing younger Chinese celebrities to help
inform, persuade, and remind their target segment. There is also a section of the website devoted
to investors. Here, current or future investors can assess financial statements and up to the minute
stock information.

The publicity is one of the form of public relations that the company may use with the intention to
bring newsworthy information to the public. Publicity refers to the communications regarding an
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organization, product, service or idea not directly paid or run under identified sponsorship. For
instance, when Coke produces new product, and someone on their lunch break purchases that new
product, and enjoys it, they will tell others about how great the new product is. Today the company
can still use word of mouth advantage. This will cause others to purchase the product, and in turn
increase sales. Coca Cola is also undertaking some projects as a part of their social cause and part
of the CSR.

Coca Cola also sponsors events in cricket and music to promote itself. The relationship Coca Cola
has with sports seeks to advance the development of sport overall. Coca Cola has a long history of
sports sponsorship including the Olympic games, football, tennis and special Olympics. Coca Cola
has been involved with the Olympic games since 1928. It has been sponsoring the Football World
Cup since 1978 and is actively involved with the Wimbledon Championships. Coca Cola’s support
is at all levels. Coca Cola also sponsors TV shows like Coke Studio to promote itself.

10.Sales Promotion:
Sales promotion is used to boost up sales quickly and gain huge customer base. Sales promotion
helps in boosting up the sales quickly for a limited period of time, this is done by offering
attractive schemes so that more people are encourage to buy the product. Coca-Cola sales
promotion is oriented towards consumers and trade.
Sales promotion is a type of pull marketing technique, if you have a product which is now in the
market or which is not receiving lot of attention, then you can promote this product to customer
via sales promotion.
It helps in boosting up the sales quickly for limited period of time, this is done by offering
attractive schemes so that more people are encouraged to buy the product.

Types of Sales Promotion


1. Consumer Sales Promotion:
Any sales promotion activity that you do keeping the end consumer mind is known as consumer
sales promotion.
Example: E-Commerce website gives 10% discount on its product.
 Discounts on buying two or more products
 Chance to meet celebrity
 Discount on other products on the purchase of Coca-Cola brands

2. Trade Sales Promotion:


If your promotional activities are focused on Dealers, Distributors or Agents, then it is known as
Trade Sales Promotion.

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Example: if the Sony Company comes and tells you, you will be given 5% discount if you cross
a sale of 100 TVs.
 Discounts to retailers and stores
 Return back allowances if excess
 Merchandising assets
 Free goods or free tours

Methods of Sales Promotion


 1 Coupons

 2 Free Sample

 3 Price-Off / Discounts

 4 Competition

 5 Free Gifts

 6 Scratch and Win Offer

 7 Trade Shows

11.Direct Marketing: Direct marketing is the type of promotional activity, in which


company directly communicate with its customers.
Coca cola uses direct marketing in many ways. The company has partnership with various
theaters, restaurants, multinational organization etc.
Therefore, when a customer orders a drink, the only brand the restaurant offer is Coca-Cola,
which forces them to buy a drink from that brand. By doing this, coke forces out others
competition, and keep the restaurants, or other businesses, purchasing their product over and
over again. E.g. McDonald’s.
Also in many multiplex coke is the only brand available, so the people are left with only one
option and in this way Coca-Cola succeeds in making the customer try out all its new launches.
Various MNCs call on a regular basis, and the companies having a tie up with coca cola offers
the same brand to the delegates during the meeting, this is another way of promoting Coca-Cola
brands.
Coca-Cola sponsors various sporting events around the world in events like cricket, football, and
motorcycle racing.
Coca-Cola uses to capture the market through these direct marketing methods.

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Mobile
Messages

Catalogs
Emails

Methods
Advertising Social
Media

11.1. Online Marketing: Internet marketing refers to advertising and marketing efforts
that use the web and email to drive direct sales via electronic commerce.
This is the era of the internet. Everyone uses the internet for personally as well as for business.
Use of internet for sake of promotion is very easy, effective and efficient.
I want to mention here internet marketing as a promotional tool because of its progress and
innovations.
Coca-Cola uses the internet to promote its products. The company has its own website, which is
user-friendly. The website has various attractive features which encourage customer interaction,
it allows customers to become interactive through various games, contests, shopping, and
through a special section of the website that enables customers to find out how they can help
their community. The customers are even allowed to give feedbacks on various coca cola brands
and also their suggestions for improving the product.
The company uses various social networking sites like Facebook, Youtube, and Twitter to
connect with the customers. There are coca cola communities which also posts new launches of
its product, so the attention of a large group of young audience are captured through internet
advertising.
The internet market thus helps to reach to those customers who can’t afford to spend time on T.V
and are always busy online for official or other purpose. So while doing their work, ads are
flashed on various websites, which informs them about the product.

Coca-Cola Internet Marketing Success


1 Amazing Twitter Profile.
2 Coca-Cola on Pinterest

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3 Encourage sharing
4 Coca-Cola opinions
5 Mixed messages
6 Coca-Cola Instagram profile
7 Coca-Cola biggest fan page is on Facebook
8 Coca-Cola on Google
9 Coca-Cola on YouTube

12.Supply Chain Of Coca Cola:


Coca Cola has one of the largest supply chain systems in the world. The Coca-Cola Company is
a beverage retailer, manufacturer and marketer of non-alcoholic beverage concentrates and
syrups. Coca-Cola currently offers more than 500 brands in over 200 countries or territories and
over 1.9 billion servings of the company's beverages are enjoyed by customers each day. The
company is headquartered in Georgia, Atlanta and was founded by John Pemberton, and is best
known for its flagship.
The supply chain is divided into upstream and downstream activities.

12.1. Upstream activities


Are limited to only manufacturing the sugar concentrate syrup which is sold to bottlers around
the world to make coca cola. Its recipe is a secret and is kept in sun trust banks vault in Atlanta.

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The sugar concentrate contains HFCS, caffeine, potassium etc which the procurement
department has to manage various different suppliers.

12.2. Downstream activities


To help us understand how the coca cola supply chain works. let's examine a small channel flow
process. The company headquartered in Atlanta manufacture sugar concentrate syrup to its
bottling partners, for example, coca am till which is responsible for manufacturing the finished
product (coca cola) from the concentrate purchased by coca cola company and then sell and
distribute to retailers and distributors throughout Australia.

12.3. SUPPLY CHAIN PROCESS OF COCA COLA:

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12.4. SUPPLY MANAGEMENT SYSTEM AND ITS ISSUES
The Coca-Cola Company follows a unique supply chain management system where the company
only produces syrup concentrate which is then sold to various bottlers throughout the world who
hold an exclusive territory.
The main supply issue faced by the company is to maintain the quality of the syrup, quality of
the coca cola and various other beverages produced by the bottlers. In order to deal with
distributors and bottlers around the world coca cola company has created a body which is known
as " the coca cola export corporation" TCCEC. The coca cola has five major bottling partners in
the world namely
SWIRE BEVEREAGES, NEWICE, ARCA, CONTINENTAL COCA COLA FENSA, AND
HELLENIC. These bottling partner help the company to distribute the beverage throughout the
world.
CPFR ( Collaborative, Planning, Forecasting, and Replenishment) is a method to improve supply
chains and customer demands. CPFR helps the executives to analyze the stock levels from item
to item starting point. CPFR involves mutual planning, predicting and restocking and it makes
improvements in the distribution chains to cater the needs of the end consumers .This new
strategy, task is controlled by a centralized planning group which is headquartered in Charollete.
Coca also uses BASES and SAP software to control all the operations around the world. All
ERP of the company is controlled by the SAP software. Every stakeholder who does business
with coca cola
company uses SAP software. Coca cola has laid strict manufacturing and distribution policies
which are managed by a program called coca cola operating program (KORE). The company’s
supplier management program has the ability to access the risk of the supplier, it even provides
documentation and assurance that the suppliers are capable of supplying the material by the
company’s strict specification. Coca cola expects its supplier to be certified by global food safety
initiative.

13.VALUE CHAIN OF COCA COLA COMPANY:


Value chain analysis is an analytical framework that assist in identifying business activities that
can create value and competitive advantage to the business.

13.1. Introduction:
Coca Cola markets nearly 2,400 beverages products in over 200 geographic locations. As a result
development of a superior value system is imperative to their operations. Throughout this paper
we will analyze their value system by using Michael Porters value chain analysis model. In an
attempt to paint a current picture of the non-alcoholic beverage industry we will assess the

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market activity by using mergers, acquisitions and IPOS as our benchmarks to determine if the
market is growing or contracting.

The value chain of the nonalcoholic beverage industry contains five main activities. These
include

o INBOUND LOGISTICS (SUPPLIERS),


o OPERATIONS,
o OUTBOUND LOGISTICS (BUYERS/ CUSTOMERS),
o MARKETING AND SALES,AND SERVICE.

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13.2. INBOUND LOGISTICS (SUPPLIERS:
Some of Coca Cola most notable suppliers include Spherion, Jones Lang LaSalle, IBM, Ogilvy
and Mather, IMI Cornelius, and Prudential. These companies provide Coca Cola with materials
such as ingredients, packaging and machinery. water is the main ingredient for all products
manufactured by Coca-Cola company. Coca cola company used high fructose corn syrup and
purchased from US based suppliers and delivered via trucks, some ingredients that have to be
sourced by internationally ex orange juice concentrate is sourced from Florida and Southern
hemisphere.

 Operations.
Coca-Cola operating segments are divided into the following 7 groups:
Eurasia and Africa
Europe
Latin America
North America
Asia Pacific
Bottling Investments & Corporate

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Coca Cola core operations consist of Company-owned concentrate and syrup production (Coca
Cola2006). According to their website, some of the main environmental impacts of their business
occur further along the value chain through system's bottling operations, distribution networks,
and sales and marketing activities (Coca Cola 2006).

13.3. Outbound logistic (buyers/customer):

The activities required to get finished products to customers include warehousing, order
fulfillment, transportation, and distribution management. Coca Cola has the world largest
distribution system. They own, lease, and operate in over 800 plants around the world (Coca
Cola 2006). The 2,400 beverage products which they market reach consumers in more than 200
different geographic locations (Coca-Cola 2006). Grocery stores such as Sobeys, fast food
restaurants such as McDonalds (fountain sodas),and vending machines are just a few of the
distribution units used to ultimately reach consumers. Coca Cola has over 300 bottling partners
which range from publicly traded businesses to small family owned operations (Coca Cola 2006
The five major bottling partners accounted for 33% of the total unit case volume sales in 2014.
Moreover, outbound logistics are organized via manual distribution across Africa with more than
2500 independent manual distribution businesses employing more than 11,000 people.

Major bottling partner and areas:


INDEPENDENT BOTTLING AREAS COVERED
PARTNER

Coca-Cola FEMSA, S.A.B. de C.V. (“Coca- Northeast parts of Mexico, Brazil, Guatemala,
Cola FEMSA”) Colombia, Costa Rica, Nicaragua, Panama,
Venezuela, western Argentina and Philippines.
Armenia, Austria, Belarus,
Bosnia-Herzegovina, Bulgaria, Croatia,
Coca-Cola HBC AG (“Coca-Cola Hellenic”) Cyprus, the Czech Republic, Estonia, the
Former Yugoslav Republic of Macedonia,

Greece, Hungary, Italy, Latvia, Lithuania,


Moldova, Montenegro, Nigeria, Northern
Ireland, Poland, Republic of Ireland,

Romania, Russia, Serbia, Slovakia, Slovenia,


Switzerland and Ukraine

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Arca Continental, S.A.B. de C.V Western Mexico, Ecuador and northern
Argentina
Hong Kong, Taiwan, seven provinces in
Swire Beverages (“Swire”) mainland
China and territories in 11 states in the
western United States.

13.4. Marketing And Sales:


Coca Cola applies integrated marketing strategy using advertising, sales promotions, events and
experiences and public relations elements of the marketing mix in a combined manner. The
brand marketing message is associated with being happy, enjoying life and leading an active
lifestyle. Coca Cola’s the latest marketing efforts have been directed at combining four popular
drinks – Coca Cola, Diet Coke, Coca Cola Zero and Coca Cola Life into the concept of ‘One
Brand’, thus providing wider choice to the target customer segment.

13.5. Service.
Coca Cola maintains its customer service practices via online chat with a virtual agent in official
website of the company dedicated customer service phone. Coca Cola website has a
comprehensive FAQ that covers the most aspects of their products in a detailed manner and the
website also addresses a wide range of rumors related to the brand direct and indirect ways.

13.6. Supportive Activity:


Coco cola company maintains heavy focus on technology and R&D. It has 6 R&D centers
around the world.

 HRM:
Company focused on hiring and developing talent and crediting an environment of learning &
growth.

 Procurement:
Coca-Cola company procures from 1000 of farmers and suppliers. They maintain good
relationships and provide guideline to suppliers.

 Firm Infrastructure:
Managed large infrastructure including its management HRM financial, Technological
Infrastructure.

13.7. Value Delivery Process (VDP)


All bottling partners work closely with suppliers- grocery stores, restaurants, convenience stores,
amongst many others- to execute localized strategies developed in partnership with Coca-Cola.

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More precisely, although Coca-Cola is a global company, its products never have to travel far to
reach the final consumer, making the product more local than you may think, the product is made
local to the market where it is sold.

Their business is a local business, typically products aren’t shipped more than a few hundred miles;
it’s all about being responsive to the customers’ needs and the local tastes of the consumers in
every market. The Coca-Cola Company sells its products to bottling and canning operations,
distributors, wholesalers and some retailers. They then distribute them to retail outlets, corner
stores, restaurants, petrol stations and many more.

Arrays of points of sales that Coca-Cola products can be categorized into are:

– Wholesalers/ distributors

– Retail/ corner stores/ super markets

– Restaurants/ cafes/ night clubs

– Petrol stations

– Automated teller machines (ATM’s)

The firms process of delivering value is one of the most well planned. It has such an impact on
consumers and is so successful that even wholesalers and distributors need the product for their
business’ success. Coke’s position on consumer’s mind makes it essential to retailers and
wholesalers. They have achieved their goal due to this high visibility, and to the availability of
their products all over the world, even remote places.

14.Marketing Public (MP)


Marketing Public is the process of boosting public awareness of a product, person or service.

OR

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Supporting marketing objectives in areas such as product launch, demand generation and brand
awareness.

Marketing Public is divided under the umbrella of Four main headings:

1. Media Publics (Mp) : Media Public is about establishing relationships with media
organizations and individuals and acting as a source for media content.

2. Community Publics (Cp) : It is about engaging the communities that you impact to
establish a positive reputation in areas such as environmental stewardship, employment,
health & safety and quality of life.

3. Financial Publics (Fp) : Financial Public tackles with the areas of concerns in the practice
of financial communications.

4. Government Publics (Gp) : Representing your organization with government


representatives in areas such as fair competition, consumer protection, risk management,
environment, quality of life and workplace health and safety.

The world we live in today hovers around the digital space, and the way we connect with one
another continues to evolve. It might seem as though the more people we connect with online, the
fewer we actually see in real life.

Various types of media are used in order to advertise the Coca-Cola brand in general, and Coca-
Cola drink in particular.
Newspapers are one of the most popular forms of media advertising that is widely used by Coca-
Cola. Pishko (online, 2011) informs that along with such global brand names as
Campbell’s Soup, Kellogg’s, and Pepsi Cola, Coca-Cola Company is one of the companies that
has stared media advertisement in its earlier stages, and by now the company has been engaged
in media advertising for more than 100 years.
Similarly, magazines have also been widely used at a global level in order to advertise Coca-
Cola. The choice of magazines to advertise the brand has been undertaken according to their
readability by the target customer segment of the company, and the Coca-Cola advertisements
usually occupy the whole page of magazines in order to maximize the positive impact of the
marketing initiatives.
Internet is another platform where the various forms of Coca-Cola advertisements are placed.
Specifically, the brand online advertisement is undertaken through the extensive use of banners,
pop-up ads, on-site sponsorships and various other formats of online advertisements in thousands
of websites along the globe. Moreover, there are specific forums and many websites globally that
are dedicated to Coca-Cola fans and where users share their stories where Coca-Cola is involved.
Coca-Cola has been advertised through television many counties as well with the company
spending a considerable amount of financial resources for this purpose. Coca-Cola TV ads in
different countries vary from each other and they have been prepared taking into account the
characteristics of a local culture in order to avoid any misunderstandings due to cultural
differences, and maximize the positive impact of the TV advertisement initiatives.

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The Coca-Cola is also advertised in cinema and this is undertaken in two ways. Firstly, there are
Coca-Cola video advertisements played in cinemas for selected movies before the movie starts.
Secondly, Coca-Cola is widely advertised through product placement in movies, where Coca-
Cola drink features somewhere during the movie and in order to maximize the efficiency of the
product placement, the drink is usually consumed by the leading role during the movie.

14.1. Community Public


“We believe it’s important for us to be active members of our local communities and to make a
positive difference where we do business. We have a long history of bringing people together
through our support of community projects and charities.” (COCA COLA). Here are some of
the projects we’re involved with:
Park Lives
Launched in 2014, ParkLives is delivered in partnership with local authorities and our charity
partner Street Games, and offers a long-term program of daily fun and free activities in 45
locations, including ten major cities across the UK. ParkLives encourages people to get
outdoors, meet new people and enjoy the parks and green spaces in their local community.
Everyone is welcome and there are a huge range of activities to suit all ages and abilities.

Street Games
Since 2011, we’ve had a partnership with sports charity Street Games, which aims to make sport
more widely available for young people in disadvantaged communities, and use the power of
sport to change communities and young people’s lives for the better. Through StreetGames, we
are able to bring our ParkLives scheme to a further 35 more locations across the country.

World Wildlife Fund (WWF)


We’ve had a global partnership with World Wildlife Fund for almost a decade, which is one of
the world’s leading conservation organizations. On a global level, we have agreed seven
ambitious goals for 2020 to help protect our environment. On a local level here in Great Britain,
we are focusing on providing a thriving future for England’s rivers, by working with local
partners like the Rivers Trust in East Anglia to promote sustainable water-sensitive farming to
help protect the region’s unique chalk streams.

Special Olympics
We’re a founding partner and global sponsor of Special Olympics, which runs year-round sports
training and competition programs for athletes with intellectual disabilities. We’re also a
founding partner and supporter on a national level, since Special Olympics GB was first
established in Great Britain in 1978. Through our annual funding we cover vital running costs for
the charity, and our employees get involved with fundraising and volunteering.

5by20
We recognize that women are a powerful global economic force, but we’re also aware of the
unique challenges they face. In 2010, we established our 5by20 initiative, which is our global
commitment to enable the economic empowerment of 5 million women entrepreneurs by 2020.

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This means we’re focusing on helping women earn a living through a connection with our
business in some way - from small business owners, such as fruit farmers growing some of our
ingredients to micro-retailers and artisans, recycling packaging to make jewellery or bags or
other goods to sell. We work with partners all over the world to help them overcome some of the
barriers to setting up their own business by offering access to training courses, small loans and
networking connections with peers and mentors.
To-date, we’ve reached a total of more than 1.2 million women entrepreneurs across 60
countries.

Designated Driver
Since 2007 we’ve partnered with the Department of Transport’s THINK! road safety campaign
to launch Designated Driver, which rewards those who volunteer to drive friends and family over
the festive party season with free soft drinks, so they can celebrate too. It’s part of our
commitment to responsible marketing and, as the world’s largest non-alcoholic drinks company,
to build a responsible drinking culture and help people have a safe and enjoyable time over
Christmas and New Year’s Eve.

14.2. Financial Public

The main objective of conducting a public relations exercise is to persuade investors, consumers,
shareholders, employees, and shareholders to maintain a given viewpoint about the company’s
leadership, political decisions, and products. As a company, Coca Cola invest heavily in its
public relations activities to keep in touch with it audience. This is an important venture because
it helps in marketing the company as socially responsible.

COKE (Common Stock)

$287.83 +3.86 (+1.36%)


Mar 29,2019 4:00 pm EDT

14.3. Government Public

The Coca-Cola company and the UK government strengthen girls’ education and economic
opportunities in Nigeria

Coca-Cola and DFID to invest £7 million in an initiative to help 10,000 marginalized girls in
Nigeria.

The Coca-Cola Company and the UK Department for International Development (DFID) have
joined forces to bolster the educational and economic opportunities of more than 10,000
marginalized girls and young women in Nigeria.

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Together, The Coca-Cola Company and DFID will invest nearly £7 million in an initiative
known as “ENGINE” (Educating Nigerian Girls in New Enterprises). The investment comes as
part of the UK Government’s Girls’ Education Challenge and The Coca-Cola Company’s 5by20
initiative, which seeks to enable the economic empowerment of 5 million female entrepreneurs
across the global Coca-Cola value chain by 2020.

Justine Greening, the UK International Development Secretary said:

“Research has shown that girls with an education have healthier children and reinvest 90
per cent of income in their family and their community. By capitalizing on the business
expertise of The Coca-Cola Company and other enterprises, we are helping girls realize
their full potential and ultimately build a better future for themselves, their families, and
their communities.”

ENGINE will establish over 170 learning spaces where girls and young women between the ages
of 16 and 19 will meet for academic support and training sessions over a nine-month period.
Approximately 5,400 girls who are still in school will receive after-school tutoring, as well as
training to advance their leadership and entrepreneurship skills. Additionally, a vocational
training program focused on business and employment readiness will be offered to
approximately 12,600 young women who are currently out of school. Young women who
complete the vocational training program will have the opportunity to choose from a variety of
employment opportunities, including receiving assistance to set up their own businesses as
micro-retailers of Coca-Cola and d.light products.

The global humanitarian agency Mercy Corps will manage the implementation of ENGINE, with
support from the Nike Foundation, solar social enterprise d.light and other partners.

Adeola Adetunji, Managing Director, Coca-Cola Nigeria Limited said:

“At Coca-Cola, we believe that our business is only as strong and sustainable as the
communities in which we operate, and that investing in women’s education and careers
spurs economic growth and fosters sustainable development. This partnership
demonstrates Coca-Cola’s belief that many of the world’s most pressing challenges can
best be addressed by governments, business and civil society working together as
partners to create lasting, sustainable solutions.”

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Neal Kenny-Guyer, Chief Executive Officer, Mercy Corps said:

“ENGINE and other similar programmed generate what we call shared value: businesses
and communities recognizing their common interests and working together to accomplish
what neither could have achieved alone. This program engages not only the girls and
young women who take part, but also their families, schools and community leaders,
creating positive role models to inspire young women, no matter where life takes them.”

The UK Government has prioritized girls’ education as one of the four pillars of the Women and
Girls Strategy. In September 2011, the Deputy Prime Minister announced the £355 million Girls’
Education Challenge – the largest ever global fund dedicated to girls’ education – calling on
NGO’s , charities and the private sector to find better ways of getting girls in school and ensuring
they receive a quality of education to transform their future.
The Girls’ Education Challenge in total will help up to one million of the world’s poorest girls to
have an opportunity to improve their lives through education in 22 focus countries, leverage
additional resources for girls’ education from the private sector and develop new knowledge on
cost effective programming. The Coca-Cola Company has been awarded funding through the
Strategic Partnerships Window for the most innovative, effective and well evaluated pilot
projects that support marginalized girls and young women to succeed in their education. These
are the first partnerships of their kind between DFID and the private sector and bring DFID and
global business together to deliver education solutions for marginalized girls.
The Nike Foundation supports the girl effect: the unique potential of adolescent girls to end
poverty for themselves and the world.
Mercy Corps is a leading global humanitarian agency saving and improving lives in the world’s
toughest places.

15.PRICING STRATEGY
Due to availability of wide range products, the pricing is done according to the market and
geographic segment. Their strategy is based on the competitors pricing, pepsi is the direct
competitor to coke. Beverage market is said to be a oligopoly market , hence they form into cartel
contract to ensure a mutual balance in pricing between the sellers.
As price gives us the profit so this P is very important for business price of product should be that
which gives maximum benefit to the company and gives maximum satisfaction to the customer.

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Following factors COCA COLA kept in its mind while determining the pricing strategy.

 Price should be set according to the product demand of public


 Price should be that which gives the company maximum Revenue.
 Price should not be too low or too high than the price competitor is charging their customer
otherwise nobody will buy your product.
 Price must be keeping the view of your target market.

List of prices of coca cola products:


Prices of COCA COLA bottle RS/=

COCA COLA 250ml Glass Bottle 20

COCA COLA 250ml Can pack 35

COCA COLA 330ml Can pack 50

COCA COLA 500ml Plastic Bottle 40

COCA COLA 750ml Plastic Bottle 50

COCA COLA 1littre Plastic Bottle 65

COCA COLA 1.5littre Plastic Bottle 80

COCA COLA 2.25littre Plastic Bottle 110

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COCA COLA PRICING STRATEGY IS BASED ON:
15.1. COMPETITION-BASED PRICING

Using a competition-based pricing strategy, the company prices its products based on competitor’s
product pricing. This strategy is implemented by companies when there are several competitors in
market selling similar products.
The pricing strategy used by COCA COLA is an example of competition based pricing.

COMPETITION–BASED PRICING
 Promotional pricing strategy
 Market penetration strategy
 Skimming price strategy

Other strategies:
 Psychological pricing strategy
 Segmented pricing strategy
 Discriminatory pricing strategy

COMPETITION–BASED PRICING
 Promotional pricing strategy
COCA COLA has offered promotional prices as often as possible. In store that offer coca cola,
costs are regularly incidentally valued underneath the rundown cost to build short-run deals.

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Particularly on some event coca cola diminishes its rate like in Ramadan Coca Cola decreases its
rate upto
5 rupees on 1.5 littre container which gives the motivations to its retailer

 Market penetration strategy


Coca Cola’s prices are set according to their supply and demand. Their price neither extremely
high nor low so that their customers don’t get persuaded by their competitors as well As make
profit. Prices change when dealing with varieties of target markets.

 Skimming price strategy


In skimming price Coca Cola charges premium prices initially to earn maximum revenue.

 Psychological pricing strategy


In 2009 Coca Cola utilized the psychological estimating system for their original coke For example,
the cost of 2 litre jg of original coke was $2.49. They set the cost to end in 9, since this influences
clients to think the cost is under $2.50, to speak to the client.

 Segmented pricing strategy


Segmented pricing strategy based on different packages, Coca Cola is available at different prices.
By their different product size in different cost, they get to increase their revenue.

 Discriminatory pricing strategy


This strategy is used globally because of different target market having different prices when it is
sold through different channels it is charged differently.

16.COMPETITIVE STRATEGIES OF COCA COLA


The Coca Cola company has created and achieved a strategic lock –in such that it has achieved
dominance in the industry. For instance many people will think of coke once they think of using or
taking a soft drink.

Promotional strategy
• Advertisement
• sponsorship
• Expand in Market and product range
• keep innovative and efficient over the long run
• cutting price

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C) MARKET ANALYSIS
17.COCA-COLA COMPETITORS
Coca Cola is one of the leading soda beverages company of the world with a very large product
portfolio made up of more than 500 sparkling and still brands. The brightest stars in its portfolio
are the 21 Billion dollar brands, each of which generates 1 billion USD or more in revenue.
Apart from soda beverages in various flavors, the brand also sells energy drinks, bottled water,
juices and low calorie soda drinks. Coca Colas is sold in more than 200 countries and is also
known for great marketing capabilities apart from high level of popularity.

Major competitors of Coca Cola Company: –

1. Pepsico

2. Dr Pepper Snapple

3. Red Bull

4. Nestle

5. Parle

11 Top Coca cola competitors – Competitor analysis of Coca cola

Coca-Cola is one of the most respected brands in the world and it has strong distribution strategy
and equally strong marketing messages. Coca-Cola has over a period of time used positive
marketing to the best of its advantage and has rarely been involved in negative marketing (which
Pepsi does frequently). We will be considering Coca-Cola as an individual drink and not
considering Coca-Cola as a brand which has many sub-brands and products under it. The
ranking is mainly on the basis of brand valuation of the individual brands.

THERE ARE TWO TYPES OF COCA-COLA COMPETITORS

1. Direct competitors – Other soft drinks and energy drinks

1) Pepsi:

Without a doubt one of the strongest coca cola competitors is Pepsi. One of
the reasons these brands fight tooth and nail is because both of them are
very strong in their distribution and have excellent marketing and sales
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policies. As a result, you will find that the maximum market share is of these 2 brands –
be it any country.

2) Red Bull

Red Bull gives you wings, quite literally!! Red Bull is one of the
strongest growing energy drink/sports drink and is amongst the
strongest direct coca cola competitors in terms of brand valuation. Its
taste is stronger and loved by Red Bull drinkers. It was one of the first
entrants to popularize energy drinks to such a massive audience
(Gatorade is targeted towards sports whereas Red bull is targeted
towards the masses). Interestingly, amongst the top 6 direct
competitors of Coca-Cola, Red bull is the only one not manufactured
by Coca-Cola or Pepsi. It is owned by an Australian company Red Bull GmbH.

3) Diet Coke / Diet Pepsi

The diet soft drink market is fast rising, especially with at least a 1000 videos
and blog articles bombarding people about the sugar content in traditional soft
drinks such as Coca-Cola and Pepsi. As a result, Diet Coke and Diet Pepsi both
are being replaced and being consumed instead of regular coke and Pepsi. If we
had to rank further, Diet coke will rank much higher than Diet Pepsi in terms of
market penetration and in terms of Brand valuation as well.

4) Fanta:

Again a sub-brand of the Coca-Cola company and one of the most widely loved
fruit-flavored carbonated drink. If you want a break from cola’s which are black
colored, you would do well with the various tastes of Fanta. Fanta has close to
100 flavors being used across various countries. But the target message is always
towards “freshness”

5) Sprite

Sprite originally started as a competitor to 7 up but it has ended up being a large


market share holder of soft drinks market.it is one of the strong coca cola competitor
in the market.it has captured the market which previously belonged to Limca or 7
Up. There are at least 20 variations of sprite. Sprite majorly targets the youth and
talks of being a brand with a no bullshit – clear message. Sprit has clear in color and
is transparent in nature. It is the 5th strongest direct coca cola, competitor.

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6) Gatorade

Gatorade uses Science to come up with its various formulae and targets
mainly sports and athletes for its drink. It has various nutrients, each of
which can be applied to different sports activities – such as drinking
before the game, drinking within the game or drinking after it. Calories,
proteins, and various nutritional value.

7) Dr Pepper (Dr Pepper Snapple):

The 7th coca cola competitor is another one in this list. Dr Pepper
Snapple Group has a combination of some well-known brands such as 7
up and RC Cola. Amongst these, the flagship product which is the
strongest coca cola competitor is Dr Pepper itself. Dr Pepper comes in
various flavors and in fact, is known and loved for its unique taste. It
has a major market penetration in the US, from where it derives its
brand valuation. It is also known for its smart marketing and use of
slogans, due to which it has survived and thrived for long against the likes of Coca-Cola and
Pepsi.

8) Mountain dew:

Mountain dew is a clear carbonated drink from the house of PepsiCo.


Mountain dew is known for its clear beverage worldwide. The brand
has 40 flavors in the market, all of them lined up for competition
against the standard colas. Mountain dew lags behind Sprite because of
the massive distribution advantage which sprite has being from the
house of coca cola. There are many regional players as well. However,
besides the direct coca cola competitors.

Indirect coca cola competitors


9) Lipton:

Most prominently known for its green tea and various flavors of tea,
Lipton is the number one competitor for coca cola brand especially in
tea drinking nations like UK, India, China, and others. As people are
getting more health conscious, they are turning towards the tea
providers which are brands such as Lipton.

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10)Nescafe

Some people love tea and others love Coffee. The USA itself is a
major coffee drinking nation and so are many others. And in
Coffee, the one brand which has the top mindshare is Nescafe.
Nescafe is without a doubt a very strong coca cola competitor
because of its superb taste and fantastic distribution. Nescafe is a
product from the brand Nestle. Nescafe has a distribution setup
which is even larger then Coca-Cola because of the simple
reason that Nescafe is also sold in medical shops besides being
sold in groceries or other markets.

11) Tropicana

Would you like to replace your carbonated beverage with Juice


so that you can be healthier and have a drink which is far less in
sugar and has a lot of natural elements to boost your immune
system? I am sure you would prefer one above the other.
Tropicana’s range of natural juices is strong rising as a go-to
drink for people who don’t want carbonated beverages. Because
it is unique and has such a large flavor base, Tropicana is one of
the strongest indirect coca cola competitors in the market.

 Nestle – While Nestle is not a direct competitor of Coca


Cola, still it competes with the brand across some specific product categories like bottled
water. Its Nestle Pure life and Poland Spring are two bottled water brands that are quite
popular and major competitors for Coca Cola’s Dasani.
 Parle – Parle is an Indian brand and competes with Coca Cola across some specific
product categories that include bottled water and juices. Parle’s Frooty, Appy and Bailey
are major competitors of Coca Cola’s minute maid and other juice products as well as
juice drinks and bottled waters in the Indian market.

18. SWOT ANALYSIS OF COCA-COLA COMPANY

STRENGTHS:

i. BRAND EQUITY
ii. LOYAL CUSTOMER BASE
iii. GLOBAL PRESENCE
iv. STRONG PRODUCT PORTFOLIO
v. STRONG SUPPLY AND DISTRIBUTION NETWORK

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WEAKNESSES

vi. HEAVY RELIANCE ON CARBONATED DRINK


vii. LACK OF PRODUCT DIVERSIFICATION

THREATHS

viii. REDUCING CUSTOMER DEMAND FOR CARBONATED DRINK


ix. HEAVY COMPETITION FROM GLOBAL AND LOCAL PLAYERS
x. LACK PRODUCTPORTFOLIO OF NON-CARBONATED /HEALTHY DRINKS AND
FOODS

OPPORTUNITIES

xi. INCREASING DEMAND FOR HEALTHY PRODUCTS(DRINK AND FOOD)


xii. MARKET EXPENSION THROUGH PARTNERSHIPS AND AQUISITIONS

19. BCG MATRIX ( BOSTAIN CONSULTING GROUP):


The Bastian consulting group (BCG matrix) is used in analyzing the various products being sold
by manufacturer. Coca-cola is the multinational company that been operating for our century. It
supplies its products to the hundred of countries worldwide. To create the matrix, the industry’s
growth and market is on x axis and y axis.

BCG MATRIX OF Coca-cola Company:

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Cash cow:
The cash cow the product in a no growth industry with a large market share. These products have
a substantial sources of income. For the business and generate a fair amount of sales to get ahold
of the market share in the local and global market.as an analysis the coca-cola market.it has
matured to a great extent with the part few years with the new companies marketing coca-cola
products . coca-cola companies over 200 countries .coca-cola is operating as a cash cow for the
company.

Cash cow product of coca-cola company:


1) Coca-cola
2) Limca

Star:
The star is the product in a growing industry that has a high market share. These products has a
potential to generate a considerable amount of cash in the future due to the preferred position and
the possibility of growth in sales as a industry expends. When the market is still developing ,the
star can add more to the existing market share and inn return it generate revenue.

Star products of coca-cola company:


1) Thums up
2) Maza
3) Kinley

Question mark :
A question is a product that has a small market share in the expending company . the product is
carefully evaluated and determine if there is more marketing required to attract potential
customer to result in profit. These products have not succeeded in the market and can be
recognized as a star .there are the products that formulate a part of the industry that is still in the
process.

Question mark of coca-cola company :


1) Fanta
2) Sprite

Dog:
A dog in the flat industry has a low market share with the stoppage of growth in the industry
.These are the business products which are the products in declining stage. they are the cash
traps ,getting a return on investment from the business or product is the next to impossible.

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Dog product of the coca-cola company:
1) diet coke
2) minute maid

20.Strategic Business Unit:


Strategic Business Unit, properly known as SBU is a fully functional unit of the business that has
its own vision and direction.typically a strategic business unit operates a separate units.but it is
also an important part of the company .it reports to the head quarter about its operational status .
coca-cola company divide the strategic business unit according to the geographical location.
Eurasia & Africa
Central east and west Africa
Middle east and north Africa
Russia Ukraine and Belarus
South Africa
Turkey , Caucasus & central Asia
Europe :
Central and southern Europe
Germany
Iberia
North west Europe & Nordic
Latin America:
Brazil
Latin central
Maxico
South Latin
North America:
Coca-cola refreshment
Coca-cola brand
Pacific:
Association of southern asian nation

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Greater china and Korea
India and southwest Asia
Japan

Coca cola is probably the only product in the world that is universally relevant in every corner of
the globe .the company feels that its responsibility is to ensure that with every single can and
bottle individual connections are made with their consumer this can only be achieve with local
strategy.

21. COCA COLA MARKETING ENVIRONMENT

21.1. MICRO ENVIRONMENT: Micro Environment are those factors which


influences the business environment of Coca-Cola Company directly and are controllable up
to some extend but not completely. Some of them are its,
 COMPETITORS: In beverage industry, Coca-Cola company is leading the market
however, Pepsi Co. is the only direct competitor of Coca-Cola and competing almost in
all the markets worldwide. Coca-Cola has higher sales and market share than Pepsi Co.
globally, though Pepsi Co. dominates the U.S market which is surprisingly the home
country of Coke. There are any other players in beverage industry like Red-Bull, Nestle,
Sprite, Mountain Dew, lipton etc. Although, the market of tea and coffee lovers like
Pakistan and India the Nestle Nescafe coffee and lipton tea and Green tea has a larger share.

 Suppliers: The suppliers of Coca-Cola Company are its bottling equipment


manufacturers, raw material, sugar and ingredient suppliers. Overall in general, the
suppliers power in Coke is relatively low as being a global brand Coke enjoys economies
of scale and has higher power than suppliers as it orders in huge quantity from its suppliers.
 Customers: One of the recent survey showed that Coke is the only brand with which
85% of the population is well aware of. Besides, company has always maintained
customers retention, another reason why the company has such strong loyal customer base.
Coke customers ranges from kids to youngsters, from youngsters to elders and from elders
to older. According to a beverage digest, a trade publication, the market share of Coca-
Cola increased from 17.3% to 17.8% in past few years.
 Marketing Intermediaries: Marketing intermediaries helps the company to promote,
sell and distribute its products to its end customers. Includes wholesalers, distributors,
retailers and marketing agencies. Recently, Coke signed 10 years deal with U.S based
Company Wendy that it will provide coke to all the food chains located in U.S.

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21.2. MACRO ENVIRONMENT:
Macro Environment refers those factors which influences the business of the Coca- Cola company
indirectly and are completely uncontrollable. These usually occurred on macro level. Some of
them are,

 Globalization:
Globalization is happening at a fast rate and Coca-Cola is at the forefront of this change. Coke
drives its major and higher revenues from its international markets than its home country which
only yields 35% of its revenue. The general trend to reduce trade barriers and increasing
businesses across the globe. Coca-Cola is enjoying immense benefit from this. However, at
several places around the world, globalization is the reason people resist Coke. The reason is
anti-global groups who considered Coca-Cola as American imperialism.

 Political:
Being in a beverage Industry, Coca-Cola is restricted to the rules and regulations to meet
certain standards of any country it is operating. Political conditions in an international markets
such as military takeover, govt, policies and civil restlessness can cause negative impact on its
business. Like Coke for a longer time didn’t e go into Israel since it was concerned about much
larger market of Arab countries.

 Economical:
Economical variables affect every business in any industry and Coca Cola is no exception.
Economic slumps can impact negatively in the production as well. In Inflation, people reduces
their spending and non-basic items like Soft drinks are supposed to go out first from the
shopping list. Economic recession can influences the business in any economy.

 Social and Cultural:


People nowadays, are being more health conscious than ever and this is hurting the growth of
the Coke as it relies heavily on its carbonated drinks. At the same time, it is an opportunity for
the company to exploit the new non-carbonated drinks market to expand its market more. The
social and cultural structure is the another aspect which affect the company. The impact is
more in food and beverage category because these both depends upon the local culture.
Example can be of an Islamic country, where the citizens avoid the toxic and ingredients which
are prohibited there.

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22.Holistic Marketing Of Coca-Cola

 Internal Marketing: Internal Marketing involves the within Company activities


concerning top management to lower management and all the departments. Coca-Cola
employs around 136,600 associates around the world. Communicating and engagements
among employees in such a large and huge scale is not an easy task. However, Coke is
trying its best to build a bridge and fulfill this gap. They conduct survey on regular basis
on webinars to review its marketing plans and its employees. When Company start any
campaign it provides T-shirts to employees related its campaign. And the company is
continuously improving its Internal marketing to give its best to its employees an
associates.
 Integrated Marketing: The global and local marketing campaign consistency of
Coca-Cola evident that the whole system is integrated. Coca-Cola ensures that the
messages passed on to customers through various means of channels is the same as well as
the product gives the value that’s communicated to the customers. Integrated Marketing of
Coca-Cola is much stronger and coherence than its competitors. This is the another reason
why it is enjoying a huge market.

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 Performance Marketing: Performance marketing of Coca-Cola company
ensures its customer equity and develop brand. Coca-Cola has been a well-known brand
because of its sustained marketing efforts and customers equity is developed by engaging
in various developmental, Social and environmental activities.
 Relationship Marketing: Coca-Cola is highly engaged with its bottling partners
and associates in its marketing activities. Coca-Cola also keeps its customers engaged with
company through various activities including social networks, sponsorships, promotions,
music and commercials etc. That is the main cause that the brand is having quite strong
relationships with its customers and partners.
23.Markets Leaders, Challenges and Followers:
Being a leader has a number of benefits and drawbacks .Ultimately, your company must constantly
defend its position as the incumbent supplier. You must continually keep your pipeline full of new
product introductions. This is extremely costly and time consuming. With little room for error.
Maintaining a leadership position means constantly defending business, protecting market share
and keeping your customers waiting for the next product offerings. The benefits are that you have
secured your markets top spot and are the first choice of customers. You have high markets
credibility and are seen as the ultimate recourse within the markets. The drawbacks are that its
extremely difficult and costly maintain that position for extended periods. In many instance,
leaders have high overhead. They find it difficult to complete with smaller more nibble
competitors. Ultimately, you have got the top spot, but ball your competitors are trying to suburb
your position. As much they may have an easier time adjusting to changing market place.

The market challenger:


Being a challenger, means capitalizing on the mistake of leaders. This allows your company to
reduces its research and development costs, as you can easily offer an upgrade product or services
based on the defensives of your compactions latest offering design cost mean you have faster
product to market lead times on new introductions. You are hungry, constantly in pursuit of new
business, and seen as an aggressive and proactive enterprise. In some cases its easier to win
business due to your lower overhead and smaller overall cost structure. However there are
drawbacks. Some of the biggest issues with being a challenger is the position it carries. First your
company is constantly being compared to leaders. This makes it difficult to change customer
perceptions. Second you are not the primary choice of the market and likely are not able to secure
incumbent positions. Third customers may not turn to you for new product designs and upgrades-
instead preferring to deal with the markets leaders. Finally any issue in product performance
immediately reinforcement the view that your company is not good as the competitor you’re
chasing.

The Market Follower:


Unlike the leaders and challengers in your markets, your position as the follower allows you to
capitalize on the mistake of both. You can then use price skimming strategies that increase gross
profit by focusing on customers segments ignored by your large compition. Instead of waiting for

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individual leaders or challenges to falter, you mealy wait to see how the market responds to their
product offering before making move of your own. Today’s market polices requires you become
a market expert first, before deciding weathers to lead, challengers or follow any new production.

24. Retailing and wholesaling:


Each layer of marketing intermediaries that performs some work in bringing the product to its final
buyer is a channel level. Channel 1 contains two intermediary levels wholesalers and retailers. A
wholesaler typically buys and stores large quantities of several producers’ goods and then breaks
into bulk deliveries to supply dealers with smaller quantities. For small retailers with limited order
quantities the use of wholesaler makes economic sense. This arrangement tends to work best where
the retail channel is fragmented sense. This arrangement tends to work best where the retail channel
is fragmented i.e. not dominated by a small number of large power full retailers who have an
incentives to cut out the wholesaler. Channel 2 contains one intermediary in consumer, markets,
this is typically a retailer. The consumer electrical goods markets in the UK .

Functions of wholesalers:
 Bulk buying
 Mass selling
 Dividing or bulk breaking
 Transportation
 Warehousing
 Financing
 Risk bearing
 Market information

Functions of retailers:
 Providing Assortments
 Breaking Bulk
 Holding Inventory
 Providing convenient and timings
 Providing services
 Recording and providing feedback
 Increasing the value of products and services.

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RECOMMENDATIONS:

1. We discuss the perpetual inventory system in the COCA COLA COMPANY. Here are some
recommendations for the improvement.

2. 1- A detailed and comprehensive data base must be established.

3. 2- All information should be included in the data base.

4. 3 – Competent and qualified personnel; should be hire for the accounts management.

5. 4-New advanced technology should be utilized for the accounts management.

6. 5- Untrained staff and inventory officer should be provided with training in new processing.

7. 6- The organization must provide training opportunities to its workers and officers to minimize
the factor of human error in data entry in inventories.

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