The Coca Cola Company A Case Study April 27th, 2010 by Don Merlin
Coke is a Global Brand <ul><li>1.6 Billion servings sold each day </li></ul><ul><li>Sold in over 200 Countries </li></ul><...
A Brief History of Coke <ul><li>Founded in 1886 by John Pemberton </li></ul><ul><li>Sold at Jacob's Pharmacy in Atlanta,Ge...
A Brief History of Coke <ul><li>Bought by Asa Griggs Candler in 1888-1891 </li></ul><ul><li>In 1900 there were two bottlin...
A Few Fun Facts About Coke From Coke's Website <ul><li>Served aboard the Space Shuttle </li></ul><ul><li>Coke is not an ef...
Coke's Products <ul><li>Coke sells syrup to its franchisees who bottle the product </li></ul><ul><li>Coke maintains contro...
Coke Brands <ul><li>A&W </li></ul><ul><li>Dasani water </li></ul><ul><li>Minute Maid  </li></ul><ul><li>Bacardi </li></ul>...
Pepsi is a Substitute to Coke <ul><li>Coke competes in a global market with many substitutes for its products </li></ul><u...
Coke is an Oligopoly <ul><li>Coke's only serious competitor is Pepsico </li></ul><ul><li>In 2005 Pepsi passed Coke in over...
Coke's Labor Market <ul><li>Coke has 92,400 employees with 86% employed outside the US </li></ul><ul><li>Coke claims 30% U...
What Coke Pays its Hourly US Employees <ul><li>$12.22 Merchandiser  </li></ul><ul><li>$19.72 Truck Driver  </li></ul><ul><...
Coke's Opportunity Costs <ul><li>Coke spends over 2.8 Billion Dollars a year on Advertising </li></ul><ul><li>More than th...
Coke's International Trade <ul><li>The franchise system limits actual trade of products except Syrup </li></ul><ul><li>Fra...
Coke Imports Coca Leaves <ul><li>Coke imports Coca leaves as a flavor ingredient after the cocaine is removed </li></ul><u...
Coke's Negative Impact <ul><li>Coke is accused of lowering aquifers </li></ul><ul><li>Accused of selling contaminated prod...
Coke's Long term Goals <ul><li>Increase Shareholder Value </li></ul><ul><li>Increase international and domestic market sha...
Coke's Short Term Goals <ul><li>Increase market share of bottled water </li></ul><ul><li>Increase sustainability through r...
Coke and Micro Economics Class <ul><li>Coke is not in a monopolistic competition but is an Oligopoly with Pepsi </li></ul>...
The Future of Coke <ul><li>Coke's future is assured by its global brand recognition </li></ul><ul><li>Coke continues to ex...
Works Cited  http://heritage.coca-cola.com/2  http://www.thecoca-colacompany.com/contactus/myths_rumors/packaging3  http:/...
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Coke ppt

  1. 1. The Coca Cola Company A Case Study April 27th, 2010 by Don Merlin
  2. 2. Coke is a Global Brand <ul><li>1.6 Billion servings sold each day </li></ul><ul><li>Sold in over 200 Countries </li></ul><ul><li>World Wide Brand Recognition </li></ul>
  3. 3. A Brief History of Coke <ul><li>Founded in 1886 by John Pemberton </li></ul><ul><li>Sold at Jacob's Pharmacy in Atlanta,Georgia </li></ul><ul><li>Sold as a “Health Elixir” </li></ul>
  4. 4. A Brief History of Coke <ul><li>Bought by Asa Griggs Candler in 1888-1891 </li></ul><ul><li>In 1900 there were two bottling plants </li></ul><ul><li>By 1920 there were over 1,000 bottling plants </li></ul>
  5. 5. A Few Fun Facts About Coke From Coke's Website <ul><li>Served aboard the Space Shuttle </li></ul><ul><li>Coke is not an effective pesticide </li></ul><ul><li>Coke is not an aphrodesiac </li></ul>
  6. 6. Coke's Products <ul><li>Coke sells syrup to its franchisees who bottle the product </li></ul><ul><li>Coke maintains control of marketing and all trademarks </li></ul><ul><li>Coke sells and markets soft and hard beverages </li></ul>
  7. 7. Coke Brands <ul><li>A&W </li></ul><ul><li>Dasani water </li></ul><ul><li>Minute Maid </li></ul><ul><li>Bacardi </li></ul><ul><li>Powerade </li></ul><ul><li>And 3,000 other brands </li></ul>
  8. 8. Pepsi is a Substitute to Coke <ul><li>Coke competes in a global market with many substitutes for its products </li></ul><ul><li>Coke buys up competing foreign brands to maintain Market Dominance </li></ul>
  9. 9. Coke is an Oligopoly <ul><li>Coke's only serious competitor is Pepsico </li></ul><ul><li>In 2005 Pepsi passed Coke in overall market value for the first time in 112 years </li></ul><ul><li>Pepsi made $43.7bn in 2009 in the US </li></ul><ul><li>Coke made $38.1b in 2009 in the US </li></ul>
  10. 10. Coke's Labor Market <ul><li>Coke has 92,400 employees with 86% employed outside the US </li></ul><ul><li>Coke claims 30% Unionization </li></ul><ul><li>Additional 708,000 System Associates working for Franchisees </li></ul>
  11. 11. What Coke Pays its Hourly US Employees <ul><li>$12.22 Merchandiser </li></ul><ul><li>$19.72 Truck Driver </li></ul><ul><li>Average Management Salary $101K </li></ul><ul><li>Pepsi pays Merchandisers - $10.41 Truckers - $17.41 and avg salary is $141,738 </li></ul>
  12. 12. Coke's Opportunity Costs <ul><li>Coke spends over 2.8 Billion Dollars a year on Advertising </li></ul><ul><li>More than the GDP of 49 Nations </li></ul><ul><li>No upgrades to Bottlers </li></ul><ul><li>Less money spent on selling safe products </li></ul>
  13. 13. Coke's International Trade <ul><li>The franchise system limits actual trade of products except Syrup </li></ul><ul><li>Franchisees supply water and sweeteners </li></ul><ul><li>Coke imports Coca base for flavoring </li></ul>
  14. 14. Coke Imports Coca Leaves <ul><li>Coke imports Coca leaves as a flavor ingredient after the cocaine is removed </li></ul><ul><li>The Stepan Company is the only legal source of Coca in the US </li></ul>
  15. 15. Coke's Negative Impact <ul><li>Coke is accused of lowering aquifers </li></ul><ul><li>Accused of selling contaminated products </li></ul><ul><li>Accused of stifling labor organizing </li></ul><ul><li>Coke products are linked to negative health effects like diabetes and obesity </li></ul>
  16. 16. Coke's Long term Goals <ul><li>Increase Shareholder Value </li></ul><ul><li>Increase international and domestic market share </li></ul>
  17. 17. Coke's Short Term Goals <ul><li>Increase market share of bottled water </li></ul><ul><li>Increase sustainability through recycling </li></ul><ul><li>“ Live Positively” campaign to increase healthy living </li></ul><ul><li>Returning water to communities </li></ul>
  18. 18. Coke and Micro Economics Class <ul><li>Coke is not in a monopolistic competition but is an Oligopoly with Pepsi </li></ul><ul><li>Coke and Pepsi are “Price Makers” </li></ul><ul><li>Coke uses the “Kinked Demand Curve” and its demand is inelastic </li></ul>
  19. 19. The Future of Coke <ul><li>Coke's future is assured by its global brand recognition </li></ul><ul><li>Coke continues to expand its markets into India, Brazil and China </li></ul>
  20. 20. Works Cited http://heritage.coca-cola.com/2 http://www.thecoca-colacompany.com/contactus/myths_rumors/packaging3 http://www.coca-colaconversations.com/my_weblog/2008/02/coke-in-space.html4 http://www.btimes.co.za/97/1228/comp/comp.htm5 http://www.thecoca-colacompany.com/brands/product_list_p.html6 Tucker, Irvin, and Cram101 Reviews. Outlines and Highlights for Microeconomics for Today by Irvin B Tucker, Isbn . South-Western Pub, 2009. 262-263. Print. 7 http://www.thecoca-colacompany.com/ourcompany/index.html1 http://www.pepsico.com/Company/Our-Brands.html8 http://www.pepsico.com/Company/PepsiCo-Values-and-Philosophy.html9 http://www.flex-news-food.com/pages/28924/Coca/coca-cola-bottling-q4-profit-rises.html10 http://www.istockanalyst.com/article/viewarticle/articleid/3362077 http://www.thecoca-colacompany.com/ourcompany/meet_our_people.html http://www.payscale.com/research/US/Employer=Coca_Cola_Enterprises_Inc/Hourly_Rate http://www.salarylist.com/all-real-jobs-salary-at-the-coca-cola-company.htm http://www.payscale.com/research/US/Employer=Pepsi_Bottling_Group/Hourly_Rate http://www.salarylist.com/all-real-jobs-salary-at-pepsico-beverages-international.htm http://www.adbrands.net/us/cocacola_us.htm https://www.cia.gov/library/publications/the-world-factbook/index.html http://www.indiaresource.org/campaigns/coke/index.html http://internationaltrade.suite101.com/article.cfm/cocacola_drinks_in_mexico_india20 http://www.thecoca-colacompany.com/presscenter/viewpoints_kent_uscib.html http://www.alacrastore.com/company-snapshot/The_Coca_Cola_Export_Corporation-1089128
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