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Battle coke ppt Battle coke ppt Presentation Transcript

  • • Non-alcoholic beverage • Manufacturer, distributor, marketer of concentrates and syrup • 3,500+ products of 500+ brands • Distributed in 200+ countries • Sells more than 1.7 billion beverage servings • In Canada: operates in all 10 provinces, employs 6,300 people, 50 facilities
  • 1886: Created by John Pemberton, sold 9 glass per day for 5¢ WWII: oversea plants to supply troops with beverages 1923: Robert Woodruff began his 60-yr presidency Advertising budget: $100,000 (1901) $1M (1911) 1889: Asa Grigg Candler bought the rights for $2,300 1915: found signature bottle through competition 1928: Introduced to the Olympics and Times Square 1940: 53 countries
  • 1992: Coca-Cola Classic was re- introduced “Coke” caught on 1981: Diet Coke was introduced: instant success 1985: Introduced New Coke: received backlash 1990’s: Increasing associations with global sporting events Today: the most known brand worldwide and biggest selling soft drink in history 1970: The “wave” was introduced to the brand mark 1953: Ad budget surpassed $30M 120 countries 2000’s: continuous innovations in product designs
  • Non-alcoholic beverages industry • Coca-Cola products under carbonated soft drinks (CSD) market Carbonated beverages: • Colas, fruit flavoured beverages, ginger ales, root beers etc.
  • Other beverages: • Coffee, fruit juices, bottled water, sports drinks etc.
  • Domestic market Total revenue of CSDs in Canada was $3,725.8 million (2012) • 16.3% of the market share of non-alcoholic beverages market/industry (2009) • Second largest share after coffee (16.3%)
  • Major driving force: trend toward healthier beverage choices (and healthier lifestyle in general) • Thus drinks with low-calorie, energy, essential vitamins
  • Coca-Cola has six geographical business segments(North America, Eurasia and Africa, Europe, Latin America, Pacific) • Mass marketing – i.e. targets everyone (talked about later)
  • Volume growth of the Canadian CSD market = 0.1% in 2012 • 3350.3 million L • Future market volume is suspected to decrease about 0.2% from 2012 to 2017 to 3,343million L per year
  • Market value: • Market value in 2012: $3,725.8 million • Compound annual growth rate (CAGR) from 2008 to 2012 was 0.8% • Predicted CAGR from 2012 to 2017 is 0.9% • CSD market growth is stagnant
  • Distribution channels for CSD market: • Supermarkets and hypermarkets – 60.3% • Trade markets – 17.7% • Independent retailers – 11.5% • Specialist retailers – 2.8% • Other distribution channels – 7.8% 60%18% 11% 3% 8% Distribution Channels by Volume Sold Supermarkets/Hypermarket s Other Specialist Independent Trade Markets
  • Coca-Cola Enterprises Inc. – three major product lines (in Canadian market) Coca-Cola – targets mass market Diet Coke – targets women Coke Zero – targets men Various extensions (caffeine free, various flavours – cherry, lemon, vanilla etc.)
  • PepsiCo Inc. has direct competing product lines to all above: Pepsi, Diet Pepsi and Pepsi Max, with respective extensions of product lines
  • Coca-Cola Enterprises Inc. • Revenues of $48,017 million(end of Dec. fiscal year 2012) • Increase of 3.2% compared to 2011 • Net income was $9,019 million in 2012 (vs. $8,572 million in 2011) • 35.5% share of the Canadian CSD market volume PepsiCo Inc. • Revenues of $65,492 million in 2012 • Decrease of 1.5% from 2011 • Net income was $6,214 million in 2012 (vs$6,462 million in 2011) • 35.1% share of the Canadian CSD market volume
  • Other Competitors: Non- Colas • Cott Corporation – 5.3% share • Dr Pepper Snapple Inc. – 3.3% share • Other companies – 20.9% share Low-involvement product = consequences
  • Population of Canada (thus size of CSD market) = 34.9 million people in 2012 • Growth of 1.1% since 2008 Average Canadian household spent $103 annually on CSDs in 2011 Average income: $29,574 CAD vs per capita consumer expenditure: $27,251 CAD
  • Peak consumption range: ages 35-44 • Core consumption market (consumption at least 20% > average): adults age 35-44, income < $30,000 USD, high school education and below • Underdeveloped markets (consumption at least 20% < average): households with very young children, women over 65 years old, and Asian consumers *Health concerns*= falling consumption in general
  • • Consumption declines with household income and education! • Typical CSD consumer drinks 3.5 soft drinks each week • 62% of adults drink soda at least every once every two weeks • CSD drinks are consumed as a beverage 74% of the time • Consumption is distributed evenly both weekly and annually
  • • 40% of the beverage market • Strategy promises enjoyment and pleasure in the form of a soft drink • Epitomizes personality of the brand • internalized → loyal consumers → easier purchase deicision
  • • Offered in every country except cuba and north korea • Appeals to any type of consumer • Different cultural needs and wants • Customized campaigns
  • Widest portfolio • 300 brands and 3300 products • Presence in 200 countriesUse of the color red
  • • According to the market and geographic segment • Competition based • Oligopoly market → cartel contract • New market = lower prices • Psychological pricing
  • • Joy and Happiness: “Open Happiness” • Entertainment and passion: Sponsorship- Olympic Games, FIFA, American Idol • Vision of “Planet”: Social Responsible Marketing • Vision of “Partner”: Coca-Cola System, “My Coke Rewards”
  • Global business with Local Scale
  • • 250 bottling partners, 23million retailers, Over 200 countries, 1.8 billion people/ day • “Coke University”: reach more young adults • “Direct Store Delivery” System: Coca-Cola Enterprise employees deliver the products to the stores
  • 1. Traditional commercials through media: Santa Claus-American Culture implementation 2. Shift from Website plus Email to Social Media: 1st brand Facebook Page with 73 millions “Like” 3. Content Marketing “Liquid and Linked”: mobile app, television commercials, video clips (i.e. 2012
  • 4. Marketing associated with packaging design “My Coke Rewards” “Open Happiness” advertisement campaign 5. Socially Responsible Marketing • Children: Breakfast Club • Health: Anti-Obesity Campaign • Animal: WWF-Polar Bear Conservation • Environment: Plantbottle-deal with climate change
  • Good segment-specific marketing Freestyle touch-screen fountain machines Named Creative Market of the Year • Data on the mix and matching of flavors • Helped fountain sales
  • Company Shares of Carbonates by Off-trade Volume 2008-2012
  • Brand Shares of Carbonates by Off-trade Volume 2009-2012 Company Shares of Carbonates by Off-trade Value 2008-201 % Off-trade value RSP 2008 2009 2010 2011 2012 Coca-Cola Ltd 38.7 37.4 37.0 37.0 37.1 Pepsi-Cola Canada Beverages Ltd 30.4 28.3 27.3 26.8 26.2
  • Brand Shares of Carbonates by Off-trade Value 2009-2012 % Off-trade value RSP Company 2009 2010 2011 2012 Coca-Cola Coca-Cola Ltd 14.1 14.2 14.5 14.6 Pepsi Pepsi-Cola Canada Beverages Ltd 13.8 13.1 12.7 12.3
  • • Most Popular Carbonated Soft Drink (15% share) • Most often drunk soft drink (25.24%) • 259 servings per person
  • 1. Continue to its brand positioning based on the emotional benefits that it can provide. 2. Use Stevia for Diet Coke to increase its appeal to Aspartame sensitive customers and increase its perception as a healthy drink.
  • 3. Create its own in-home soda maker system. 4. Launch worldwide ad campaign competition to find the optimal marketing strategies for underdeveloped markets from their POV.
  • 5. Continue with their social marketing initiatives to further enhance and strengthen their brand image.