2009 Institute for Staff Development Students Today, Leaders Tomorrow Students teaching Students: Using Students & Alumni to Support Classroom Instruction

Asian American Research & Consulting Group

Andrew Lau Amanda Tran Rebecca Lee Cassandra Lee Glory Visario

Coca-Cola: A Refreshing Part of Life

Challenges

Shifting consumer preferences

Complicated international markets Lagging domestic demand

Strong competition from Pepsi-Co

Solutions

Eco-Friendly BottleHealthy Non-Carbonated DrinksNew Business Policy

Eco-Friendly Bottle

Polyethylene Terephthalate (PET)

Increase Recycled Plastic Usage

Cost of PET, Aluminum, and Glass

Source: Resource Conservation & Development Program. 20 May 2008. MO Association of RC&D. 20 May 2008 .

Bottle Design

Classic Shape

Recycle me! caps

Redesigned Label

30% Less Plastic!

Lighter

New Product Line

Growing non-carbonated soft drink market

Health conscious consumers

Expand Coca-Cola opportunities

Carbonated vs. Non-Carbonated

Source: Gitlitz, Jennifer. "Water, Water Everywhere: The Growth of Non-Carbonated Beverages. 01 Feb 2007. Container Recycling Institute. 20 May 2008 .

Examples

Pepsi non-CSD products 47.3%Gatorade - 80.4% Lipton - 35.2%Tropicana - 26.8%

Coca-Cola non-CSD products 27.0%PowerAde - 18.1%Nestea - 23.9%Minute Maid - 14.8%

Source: Beverage Digest Fact Book 2005, pp. 104, 109, 184-195.

New Business Policy

New Business Policy

Source: Industry analysts and case writer estimates. Profit and loss percentage data are adapted from Andrew Conway, Global Soft Drink Bottling Review and Outlook: Consolidating the Way to a Strong Bottling Network, Morgan Stanley Dean Witter, August 4, 1997, p. 2, and supplemented with 2004 data supplied by Corey Horsch, of Credit Suisse First Boston

Concentrate ProducerBottler

Dollar per CasePercent of SalesDollar per CasePercent of Sales

Net Sales$0.97 100%$4.70 100%

Cost of Sales$0.16 17%$2.82 60%

Gross Profit$0.81 83%$1.88 40%

Selling and delivery$0.02 2%$1.18 25%

Advertising and marketing$0.42 43%$0.09 2%

General and administration$0.08 8%$0.19 4%

Pretax profit$0.29 30%$0.42 9%

Team Work

Reputable Image

Benefits

Address health concerns

Long Term partnerships

Coexist with the environment

Conclusion

Eco- Friendly

Non- Carbonated Drinks

New Relations

Adapting the original coke to the modern society

Good Morning we want to introduce how Coca-Cola could become A refreshing part of life

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Currently these are the challenges Coca Cola is facing todayShifting consumers preferences Complicated international marketsLagging domestic demandsAnd strong competition from Pepsi - co

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Our solutions to address these challenges are to have an eco friendly bottle, healthy non carbonated drinks and new business policies

Now Cassandra will explain our eco friendly bottle

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Polyethylene Terephthalate or PET is a recyclable plastic that can be remade into at least 48 different products. Its low chemical content reduces contamination to the environment. Our intention is to maximize the usage of this plastic in our new campaign in order to adapt Coca-Cola this generations environmental concerns.

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This chart shows that PET is the least expensive bottling material, but only 23.1% of its products is recycled. Aluminum is the most popular material used in single served containers, also most expensive and approximately 63% is recycled each year. PET would be a cost efficient alternative that will not negatively impact revenue.

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(show old bottle) This is Coca-Colas current plastic bottle. Our new bottle will retain the classic Coca-Cola shape (show glass bottle), which is recognizable and easy to hold. It will have a recycle me cap that is made out of PET. The label will be smaller and printed on recycled paper with fun facts to remind customers to recycle. The bottle will use 30% less plastic, which will make it lighter and easier to recycle. Show new bottle) It is the Classic Coca-Cola adapted into the modern eco-friendly society. Now Andrew will talk about our new product line.

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Our second solution is to expand into the non-carbonated soft drink market to attract new consumers. Our new product line will have options for health conscious consumers. We believe that this will bring new opportunities to Coca-Cola.

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As you can see the graph shows the comparison of Carbonated and Non- Carbonated Drinks. The Carbonated market has been saturated due to the increase in the variety of CSD products. Its no longer growing at a productive rate. But as you can see the non-carbonated market is growing at an exponential rate with potential increase. Basically, Coca-Cola should develop a line of non-carbonated soft drinks to expand more into the market and compete with Pepsi.

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Examples of Pepsi dominance over Coca-Cola include Gatorade representing 80.4% of the total 2004 sales volume of the $5.4 billion sport drinks market versus PowerAde representing only 18.11%. In the $3.2 billion tea-based market, Lipton represents 35.2% of the total sales volume of 2004 versus Nestea representing only 23.9%. In the $3.8 billion juice market, Tropicana represents 26.8%, while Minute Maid only represents 14.8%. Overall, Pepsi has a market share of 47.3% versus Cokes 27.0% market share.

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Coca-Cola is traditionally known to be the original CSD. It has presented a respectable image for its consumers, but a series of unsuccessful events has damaged their reputation. The public has a growing concern for recycling, which Coca-Cola hasnt given enough effort to. They have lost many profitable opportunities when they hesitated to explore new drinks. Also, while dominating the bottling industry, they have weaken their relationships with independent companies which led to a lack of support in production. Our new business policy will focus on balanced partnerships and more liability.

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This chart clearly states that a typical U. S. concentrate producer profits a significantly greater percentage than bottlers. It is essential that we reduce our demands in order to fully support bottling companies in our new campaign. Through partnerships we can build a long term business relations with independent bottling companies and retail channels.

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Our main focus in the new business policy is to present Coca-Cola as a team player. We understand that we are codependent with the other companies, so our financial capabilities will be used to support the entire cycle of coke production. Coca-Cola will lower its cost and invest in upgrades to help bottlers accommodate to our eco-friendly design. Bottlers will continue to supply to retailers in addition to promoting recycling as a natural habit in our daily lives. Our bottles will be sold to recycling banks to be cleaned and reprocessed then bought back by the bottlers to reuse. Therefore, we have created a sustainable business cycle.

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The root of the tree represents our new campaign and the branches represent the benefits and future possibilities. The benefits of our new campaign is that our company can coexist with the environment, and create long term business partnerships. We also will re-establish Coca-Colas reputable image to the public and address the issue of consumer health concerns. If our campaign is successful, we will expand to all of our product lines and allow our tree to prosper!

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In order to resolve the challenges previously discussed, we would have to create a new image of coca cola. A trend relevant on the national and international level is the increasing awareness of problems in our environment and health. And with our new campaign, we are recognizing this trend and matching it by creating a new wave of improved products to our consumers.

We want to preserve the image of the original Coca-Cola and adapt it to modern society.

This will be Coca-Colas refreshing part of life. Will you be apart of it?

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Sarah BrinkHannah HoMelkorka LiceaAlisa Vijitkul

Cola Wars Continue

Agenda

Current situation

History

SWOT

Weaknesses that could turn into opportunities

Solution

Expected results

History

Coca-Cola is sold in more than 200 countries

Coca-Cola was bought out by businessman Asa Griggs Candler, whose marketing tactics led Coke to its dominance of the world soft drink market throughout the 20th century

The Coca-Cola Company sells its patented concentrate to many different sources worldwide

Specific Coca-Cola products are furnished by bottlers around the world, who take the manufactured concentrate of Coca-Cola and turn it into finished products ready for sale

Current Situation

Coca-Cola Company

PepsiCo

Current Situation SWOT Weaknesses Solution Expected Results

SWOT Analysis

StrengthsHigh brand recognitionBeen around longer than PepsiWide arrange of productsPartnership with major fast-food restaurant business such as McDonalds, Subway, Pizza Hut

WeaknessesNot enough advertisingUnmemorable adsTaste not desirable by all too sweet


SWOT Analysis

OpportunitiesExpand in Asia more vending machinesMore/better commercialsEmphasize the non-CSD products

ThreatsPepsiConsumer preferencesPoor economy


Weaknesses Unsatisfying taste to some people


Chart1

0.48

Year

Percentage

Morgan Stanley survey:American who said cola was "too fattening"

Sheet1

Year 200348%

Sheet1

Year

Percentage


Sheet2

Sheet3

Chart1

0.48

0.59

Year

Percentage


Sheet1

Year 200348%

Year 200459%

Sheet1

Year

Percentage


Sheet2

Sheet3

Weaknesses Weak in Non-CSD Products

in 2004


Chart1

0.804

0.181

0.352

0.239

0.268

0.148

0.473

0.27

Products

Percentage

Volume Sales of non-CSD Products

Sheet1

Sports DrinkTea-based DrinkJuiceNon-Carb market overall

GatoradePowerAdeLiptonNesteaTropicanaMinute MaidPepsiCoke

80.40%18.10%35.20%23.90%26.80%14.80%47.30%27%

Sheet1

Products

Percentage

Volume Sales of non-CSD Products

Sheet2

Sheet3

Weaknesses


Solution

New ad campaign:" My Coke Moment and bring back old slogans

Vending machines in major Asia countries such as China and India

Campaigning for healthier products

Purchase restaurants as opposed to pouring rights


Expected Results

More brand recognition

Appeal to broader audience

Increase in customer involvement increase in overall salesIncrease in Non-CSD product sales

Greater presence in International market


Q&A

Chinese Beverage Markethttp://www.beveragemarketing.com/reportcatalog1h.html

Coca-Cola Financial Datahttp://www.thecoca-colacompany.com/investors/annualandotherreports/2006/financial_highlights.html

Pepsi Financial Datahttp://phx.corporate-ir.net/phoenix.zhtml?c=78265&p=irol-reportsannual

Pepsi productshttp://en.wikipedia.org/wiki/List_of_Pepsi_types

Coke productshttp://en.wikipedia.org/wiki/Coca-Cola#Coca-Cola_variations

Bibliography

http://www.thecoca-colacompany.com/investors/annualandotherreports/2006/financial_highlights.html

http://phx.corporate-ir.net/phoenix.zhtml?c=78265&p=irol-reportsannual

http://en.wikipedia.org/wiki/Coca-Cola#Coca-Cola_variations

http://images.google.com

By: Mohamad Shibly Monica Neang Anthony Rosario Dat Nguyen

Acting as consultants hired by Coca-Colas executive management teamHired to propose a new marketing strategy for 2008How can Coca-Cola best adapt to the changing environment while increasing consumption of their product lines?Where is there opportunity for growth?

Baby Cola that targets children ages 3-12Also targets parents to give a healthier, but enjoyable soda to childrenMade from sugar cane, which is a healthier based sugarMore calcium, more vitamins, but still soda based

Ingredients:

Vitamin Afor vision and healthy skin Vitamin Cfor healthy bones and teeth Vitamin Efor protection against cell damage Calciumfor strong bones Potassiumfor normal heart rhythm and mineral balance Magnesiumfor bone formation and nerve function

Ingredients:

Carbonated Water High Fructose Corn SyrupCaramel Color Phosphoric AcidNatural Flavors Caffeine

B A B Y

Why would people buy our product?

Contains calcium and Vitamin CCarbonationSmall sizeSugar Cane

Nutrition

8 fl oz:120 Calories/Serving29 g Carbohydrates26 g Sugar25 mg Sodium

Nutrition

8 fl oz:46 Calories/Serving13 g Carbohydrates13 g Sugar16 mg Sodium

B A B Y

We want people to know: Made from Sugar Cane Healthier than actual 100% Juices Has Vitamin C (like in OJ) & Calcium (like in Milk) Kids LOVE soda, so why not buy them something they want, yet healthy for them.

Main Target: Parents (Informing them through advertisements, commercials, and drink demos.) Kids ages between 3-12 (Colors, Famous Characters)

Our Goal:Baby Coke is a mixture of Minute Maids CSD/non-carb drink and our Coke Classic. We want to give parents the nutrition that they want, yet have a similar taste to our Coke Classic that kids love and crave.

U.S. Soft Drinks Market Share by Case Volume (percent)

Year

Estimate

Benefits of the Solution

For the CompanyNew productDrink for KidsMore profitsStronger reputationDifferent outlook on company, different age target

For the People Good nutrition for kids Cheap prices

Adapt to the changing environment while increasing consumptionWhere is there opportunity for growth?

Baby Coke VS TreeTop Apple Juice46 Cal/Serv.VS 120 Cal/Serv.13 g. Carb.VS 29 g. Carb.13 g. SugarVS 26 g. Sugar16 mg. SodiumVS 25 mg. Sodium

B A B Y

BenefitsCompanyNew productDrink for KidsMore profitsStronger reputationDifferent outlook on company, different age target

PeopleGood nutrition for kidsCheap prices

Synthesis

Baby

Coca-Cola

2009 Institute for Staff Development Students Today, Leaders Tomorrow

Outcomes120 students learned prep and presentation of complex material and ideas, teamworkEvidence of rigor in curriculumEnhanced alliance with UW business schoolStudent mentoring, college-level experienceScholarshipsParent, teacher, Advisory Board interaction


2009 Case CompetitionNew Advisory Board member involvementTime Line November 2008-March 2009Harvard Case Study Innovation with ApplePreparation 170 students = 42 teams of 4more college mentors5 days to prepPowerPoint decks submitted prior to competition


2009 Case Competition (contd)

School CompetitionPresentation = 10 minutesQ&A = 5 minutesFeedback = 5 minutes2 judges @ Ballard & Chief Sealth; 4 judges @ FranklinRubric scoring Quality, Professionalism Creativity1 winning team from each school


2009 Case Competition FinalsHeld on University of Washington CampusThree Top teamsAudience College Global Case Competition participants & AOF students from 3 schoolsJudges from UW School of Business & School DistrictPressure!


2009 Case Comp: Finals!


Outcomes & Recommendations170 students learned prep and presentation of complex material and ideas, teamworkEvidence of rigor in curriculumEnhanced alliance with UW business school; grant writingStudent mentoring, college-level experienceScholarshipsParent, teacher, Advisory Board interactionIncreased student involvement, but junior team from FHS could not attend2010, return to 2008 Final Format


Q&A


Contact InformationJoanne [email protected]

David [email protected]

Kristen [email protected]

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Documents

2009 Institute for Staff Development Students Today, Leaders Tomorrow Students teaching Students: Using Students & Alumni to Support Classroom Instruction