A Framework for Enterprise and Entrepeneurship Version 14
Coca cola by Jeevan
Coca-Cola is a cola (a type of carbonated soft drink)sold in stores, restaurants and vending machines.It is produced by The Coca-Cola Company (UnitedStates).The Coca-Cola Company offers nearly 400 brands inover 200 countries or territories, which shows itsreorganization.The Coca-Cola Company (TCCC) only producesconcentrate syrup which is then sold to various bottlersthroughout the world who hold a Coca-Cola franchise.
COMPANY PROFILE ORIGIN• The first Coca-Cola recipe was invented in Covington, Georgia, by JOHN STITH PEMBERTON, originally as a coca wine called “Pembertons French Wine Coca’ in 1885.• The first sales were made at Jacobs Pharmacy in Atlanta, Georgia, on May 8, 1886, and for the first eight months only nine drinks were sold each day.• It incorporated in 1892 as Coca-Cola Company (the current corporation).
COMPANY PROFILEInterbrand’s Global Brand AchievementsScorecard for 2011 rankedCoca-Cola the #1 Brand in theWorld and estimated its brandvalue at $70.45 billionCoca-Cola currently offersnearly 400 brands in over 200countries or territories andserves 1.5 billion servings eachday.
COMPANY PROFILE Mission, Vision & ValuesTo Refresh the W orld...in boy, mind, an spirit. To Create Vale and Make a Difference...everywhere we engage. People: Being a great place to work where people are inspired to be the best they can be. Leadership: “The courage to shape a better future” Passion: “Committed in heart and mind” Integrity: “Be real”
VARIETIES OF PRODUCTFrom the 1st day of launching till today Coca-Cola hasbeen introduced in 27 different varieties:
Coca-Cola Statistics Coca cola owns more than ½ of the world’s beverages. Coke is affordable in all the countries. It was not out of the price range for an afternoon snack. Coke comes in a variety of sizes worldwide so you can use it for a•Coca-Cola is recognized by 94% of theworld’s population crowd or as a personal snack drink
Going Global: to take up global marketing strategy through standardization and integration of the many services to ensure uniform growth for the company “Coke” throughout the world. From now onwards Global marketing strategies will be incorporated not in a specific area or country but other country also which was neglected till now, which will get 100% recognition to the company “COKE”.Places already company’s supplying
Our Quality Promises: Quality Is The Highest Business Objective. Have achieved GOLDEN PEACOCK NATIONAL QUALITY AWARD 2004 in India and are marching forward to achieve such more awards globally. Though there were many problems in quality, the quality department have taken an immediate action to ensure that consumers do not lose interest
Targeting young minds: Coke’s commercials basically based on young generations, So, the young generation is the target market of Coke because they want to represent Coke with the youth and energy but they also consider about the old people they take then as a co-target market. Im Extremely Selfish Protective Possessive With my
Change Of Bottle Designs: While targeting young minds of India they are also changing the design of the bottle to attract the young minds of India. As bottles of coke company have always been simple we are going to launch designer bottles with few new old attractive taste.
• Fun Island : to provide a real fun time in a privateisland of coke company. This island is mainly meant for collegecouples on a special occasion. To have fun things like -coke fountain -coke Halloween parties -coke games -coca competitions
Cocateria: to open world wide cafeteria like cocateria. Where we are going to have all the varieties of drinks only of coco cola company including refreshments
Coca Cabs: we are providing private cabs for tourists for their personal use with limited free coke drinks in the cab for the customers
Coke Hookah: Are planning to introduce a coke flavor hookah. This flavored hookah combines the taste of generations which are not harmful and are suitable for girls, ladies, old people etc…
Coke Pumps: to install coca pumps all over the world .this will reduce the cost price of the soft drink compared to the bottled price and will create more demand in the market
SW ANALYSIS OT Strengths Weaknesses•World’s largest brand •Negative publicity•Large scale of operations •Sluggish performance in•Robust revenue growth in north Americathree segment. •Decline in cash from operation activities Opportunities Threats•Acquisitions intense •Intense competitioncompetition •Dependence on bottling•Growing bottled water partnersmarket •Sluggish growth of•Has sufficient capital to carbonated beveragesexpand
COMPETITORS• The biggest competitor of coke is Pepsi.• Pepsi is often second to Coke in terms of sales , but outsells in some localities.• In India, Coca-Cola ranked third behind the leader, Pepsi-Cola, and local drink Thums Up. However, The Coca-Cola Company purchased Thums Up in 1993. As of 2011, Coca-Cola held a 60.9% market-share in India.
Coca-Cola : Porter’s Five Forces Rivalry Substitutes (Wilde and Thick causing a Thums up significant decline in Coca-Cola profits . Pepsi To reduce the threats it embraced bottling and concentrated on diversification Teas Milk Coffee Juice Alcoholic drinks Bottled water Energetic drinks Other refreshments
Barriers to Entry (Penetrating Power of Suppliers the soft drink industry is hard Sugar because of the established Packaging name of Coca-Cola, Bargaining power of suppliers is low due to two reasons. Exclusive Territories First, the main inputs are sugar Direct-store-delivery (DSD) and packaging. Sources of sugar Substantial Investment are on the open market which Current Market Presence of subsequently makes the creation Coca-Cola power of suppliers at low levels. There are several suppliers for Coca-Cola has long-term packaging as well as the relationships with their retailers abundance in supply of and distributors making inexpensive aluminum. possible the defense of the position by means of discounts Second, direct negotiations from and other tactics, and concentrate producers to regulation make it impossible suppliers are present; an for new bottlers to enter areas initiative to encourage reliable where an existing bottler supply, faster delivery and lower operates. prices.
Bargaining Power of Buyers depends on the marketing channel used. For Coca-Cola, there are six core channels such as: Super Markets Convenience Stores Mass Merchandisers Fountain vending machine Restaurants and Food storesBargaining power of buyer is high for fountain supermarkets and mass merchandising because of the low profitability and strong negotiation power of retail channels but for vending bargaining power is non-existing caused by high profitability.
Porter’s value chain: Overview InfrastructureSupport Activities Financial Human Resources Management SalesPrimary Activities Inbound Outbound Process & Aftercare logistics Logistics Marketing
KSF Key Success FactorsStrong global presenceSpread in more than 200 countries Licensed BottlersHigh utilization of fixed assets Coca-Cola does not have complete possession of its bottling system,its major basis of revenue is the sale of concentrate to itsbottlers. Advertising and differentiationCoke mainly is competing on advertising and differentiation ratherthan pricing. W recognized and cherished brand name ellThe main brand of the Coca-Cola Company is sold globally and isrecognized as the best-known brand name in the globe.
Retail and distribution networkCoke provides significant margins to retailers up to 15-20%; thesemargins are reasonably enough for retailers to keep Coke’s products Product innovation capabilitiesOffers different products lines according to the specific needs,preferences and tastes of the customers such as Coca-Cola Vanilla,Cola-Cola Zero, and Coca-Cola Cherry etc. Breadth of product lineThe Coca-Cola organization has occasionally launched other coladrinks beneath the Coke brand name.
Conclusion At Coke, the creation of the absolute effective position is central on investing on Coca-Cola Retailing Research Councils. Along with its four key processes, Coke creates value through proactively engaging their retailers at technically every levels of the value chain from raw materials down to end-products. Conforming to holistic improvements, Coke strategically put value to store management, providing consumers with the right to choose while also enjoying the health benefits of its brands. More than complying to standards and acquiring first rates, Coke aimed at enhancing the shopping experience and enjoyment of refreshments which are reflected in the figures they accumulate coupled with ethical operation.