PRESENTATIONON

STRATEGIC MANAGEMENT OF

“COCA COLA”

Coca-cola Market Leadership:- Coca-Cola is the largest bottler

of Coca-Cola trademark beverages in the world in

terms of total sales volume, with operations in Mexico,

Argentina, Brazil and etc…

Strong brand portfolio: a one-stop shop for its

retailers by offering a complete beverage portfolio -

including carbonated soft drinks, bottled water,

juices, orangeades, isotonics, teas, energy drinks,

milk, coffee and even beer in some markets such as

Brazil.

To refresh the world

To inspire moments of optimism and

happiness

To create value and make a difference

Coca Cola’s mission statement

Now they are moving from :

“Creative Excellence” to

“Content Excellence”

This part consider both the internal and

external influence on coca cola marketing

planning.

The macro environment is analyzed using the

PESTEL framework.

Political Factors: Coca cola operates globally and their

performance is influenced by the politicalstability and instability of thesecountries.

Economic factors High inflation in any of the countries will

cause the price of coca cola to raise andconsumption of coca cola may fall.

Social factors Consumers in the different countries will

have different taste and perception aboutcoca cola.

Technological factors The current environment is technological

driven and the need for dynamicinnovation.

Coca cola has got competent research anddevelopment team who discover newtechnologies to improve productivity.

Environmental Coca cola’s operations results in

environmental footprints. They aim atreducing them in their areas of operationsto gain brand image.

Coca cola plant relies heavily on electricityfor production. They generate alternativepower to reduce this reliance.

Legal factors Coca cola is given the copy right to operate

and is the only company that can produceand sell coca cola in all countries.

Several countries have laws regulating howcompanies should operate and coca cola is alaw abiding corporate citizen.

The micro-environment can be analyzed usingporter’s five forces.

These forces determines the attractiveness ofcold drinks industry.

Threats of new entry. This appears to be very low in this industry as there is

exclusivity of right for coca cola to operate in somegeographical locations.

Ti is also capital intensive and require huge investment.This serves as a barrier to entry.

Brand loyalty from customers serves as a barrier to entry.

Economy of scale and scope also serve as a barrier toentry.

Threat of substitutes Fruits and vegetable juices are closed substitutes for the

industry.

For health concerns, many choose to consume organicfruit juice.

Bargaining power of suppliers This also appears to be weak as suppliers’ products(e.g.

sugar) are basic commodities and ingredients.

Coca cola buys in bulk and rather has power oversuppliers.

Bargaining power of customers(B2B) This appears to strong as customers are mainly large

supermarkets and retailer. They have the power tonegotiate price down to reduce coca cola profitability .

Competitive rivalry There are currently three major players

in the cold drink industry.

Coca cola

Pepsi cola

Cadbury Schweppes

Coca cola has got dominant position.

There are currently growing markets andniches that can be exploited socompetition is not so keen.

Men The experienced employees of cocacola will help in introducing the newproduct.

Money The new product development willrequire finance for developing andlaunching it. Coca cola is financiallysound.

Markets Coca cola has experiences to market the

product to target customers, marketexist and can be reached.

Make-ups The culture influences how coca cola

considers this new ideas and opinions.the culture at coca cola encourages newideas for growth.

Management Management are experienced and

successful in launching new products.

Machine Coca cola own plant & equipment and

franchisees.

Materials Good relationship with suppliers.

Transforming our commercial models to focus on ourcustomers’ value potential and using a value-basedsegmentation approach to capture the industry’s valuepotential,

Implementing multi-segmentation strategies in our majormarkets to target distinct market clusters divided byconsumption occasion, competitive intensity andsocioeconomic levels;

Implementing well-planned product, packaging andpricing strategies through different distribution channels;

Driving product innovation along our different productcategories and

Achieving the full operating potential of our commercialmodels and processes to drive operational efficienciesthroughout our company.

LOW COST-HIGH VOLUME STRATEGY• Industry estimates for the January to September

2012 period indicate that the top 2 soft drinks brands arefrom the Coca-Cola stable. But brand Coke, the world'smost consumed soft drink, doesn't figure amongst thosetop 2.

• Coca-Cola is now counting on the 'meals' campaignto ramp up volumes of its global flagship cola, whichlanguishes at No 4 in the pecking order. The top 2 areThums Up and lemon-lime flavored Sprite, both brandsfrom the Coca-Cola India stable; global rival PepsiCo isat No 3.

The price of Coke concentrate has been consciously kept

lower than that of Thums Up to spur bottling of the global

cola, confirms a top official within its bottling business who did

not want to be named.

This summer, the company had dropped the price of Coke in

200 ml returnable glass bottles to Rs 8 from Rs 10 in big

markets like Mumbai, Tamil Nadu, Gujarat and Karnataka; the

prices of other soft drinks in the Coca-Cola stable were not

tinkered with.

"Bringing the price down to Rs 8 for glass bottles is

unprofitable. But the company wants volume gains for

Coke, even if the bottling business' profits are

compromised,"

the beverage maker has only mentioned growth numbers of

only brand Coke. "If brand Coke does well, it is perceived

by headquarters as The Coca-Cola Company is doing

well... it reflects on shareholder sentiment as well,"

Brand Mapping