ORGANISATIONAL EVENTANALYSIS FOR EXPERENTIAL LEARNING. PROJECT ON COCA-COLA
INTRODUCTION Coca-Cola Company is the worlds largest nonalcoholic beverage company. It offers a portfolio of world class quality sparkling and still beverages, starting with Coca- Cola® and extending through over 400 soft drinks, juices, teas, coffees, waters, sports and energy drinks that refresh, hydrate, nourish, relax and energize. Within our more than 400 brands are nearly 2,400 beverage products. Four of the worlds top-five soft-drink brands are ours: Coca-Cola, Diet Coke®, Sprite® and Fanta®. Thums Up and Limca, which are formulated to appeal to local cultures and lifestyles.
With operations in more than 200 countries, we have a diverse workforce of approximately 55,000 Company employees. Our family of beverages accounts for approximately 1.3 billion servings worldwide of the 50 billion beverage servings consumed every day-a figure that indicates both strength and growth opportunity of the company. The Company strives continuously to expand beverage offerings to meet consumers evolving needs and tastes.
HISTORY Coca-Cola was invented in May 1886 by Dr. John S. Pemberton in Atlanta, Georgia. The name Coca-Cola was suggested by Dr. Pembertons bookkeeper, Frank Robinson. He kept the name Coca-Cola in the flowing script that is famous today.
In 1891, Atlanta entrepreneur Asa G. Candler had acquired complete ownership of the Coca-Cola business, whose marketing tactics led Coke to its dominance of the world soft drink market throughout the 20th century. Within four years, his merchandising flair helped expand consumption of Coca-Cola to every state and territory. Under Robert W. Woodruff six decades of leadership , The Coca-Cola Company took the business to unrivaled heights of commercial success, making Coca-Cola an institution the world over.
The trademark "Coca-Cola" was registered with the U.S. Patent and Trademark Office in 1893, followed by "Coke" in 1945. The unique contour bottle, familiar to consumers everywhere, was granted registration as a trademark by the U.S. Patent and Trademark Office in 1977, an honor awarded very few packages.
MissionEverything we do is inspired by our enduring mission: To Refresh the World... in body, mind, and spirit. To Inspire Moments of Optimism... through our brands and our actions. To Create Value and Make a Difference... everywhere we engage.
VisionTo achieve sustainable growth, we have established a vision with clear goals. Profit: Maximizing return to shareowners while being mindful of our overall responsibilities. People: Being a great place to work where people are inspired to be the best they can be. Portfolio: Bringing to the world a portfolio of beverage brands that anticipate and satisfy peoples’ desires and needs. Partners: Nurturing a winning network of partners and building mutual loyalty. Planet: Being a responsible global citizen that makes a difference.
ValuesWe are guided by shared values that we will live by as acompany and as individuals.Leadership: "The courage to shape a better future"Passion: "Committed in heart and mind"Integrity: "Be real"Accountability: "If it is to be, it’s up to me"Collaboration: "Leverage collective genius"Innovation: "Seek, imagine, create, delight"Quality: "What we do, we do well"
Manifesto For Growth (5 P’s) Manifesto represents the beginning of a journey which, willnever end. It is a foundation upon which will build sustainablegrowth as each and every member of the Coca-Cola systemrecognizes and invests in company’s rich long-termopportunities, while also accepting a renewed responsibilityfor meeting its short-term commitments.
People - Coke inspires to be a great work place, where people are inspired to be the best they can be. Profits - Coke maximizes return to shareholders while being mindful of overall responsibility. Portfolio - Coke brings the global marketplace beverage brands that anticipate &satisfy people’s desire & needs. Partners - Coke actively nurtures a winning network of beverage and bottling partners, building mutual loyalty. Planet - Coke acts as a responsible citizen, focus on environmental efforts making making a difference wherever they engage.
BRANDS OF COCA COLA
THE COCA -COLA GLOBALSYSTEMGlobal business is organized into six geographic Operating Groups 1. Africa Group 2. Pacific Group 3. European Union Group 4. Latin America Group 5. Eurasia Group 6. North America Group
PRODUCTS DESCRIPTIONThe Rejuvenation division offers a range of drinksdesigned to improve how people feel physically andmentally. Products include ready-to-drink coffees,teas and herbal beverages.The Health & Nutrition division produces a range ofproducts to promote health and well being. In the US,its products encompass Minute Maid Premium 100%juices, Hi-C fruit drinks and Minute Maid Coolers.The Replenishment division offers a range of waterproducts around the world. The division also produces arange of energy drinks, such as PowerAde.
Elsewhere in the world, the company has created other products designed to meet the needs of local consumers and communities. For example, in Chile, it developed Bibo (Kapo) because mothers wanted a healthy, noncarbonated drink for their children.
COCA-COLA SYSTEM - PRODUCTION The Coca-Cola formula is The Coca-Cola Companys secret recipe for Coca-Cola. As a publicity marketing strategy started by David W. Woodruff, the company presents the formula as a closely held trade secret known only to a few employees. The actual production and distribution of Coca-Cola follows a franchising model. The Coca-Cola Company only produces a syrup concentrate, which it sells to various bottlers throughout the world who hold Coca-Cola franchises for one or more geographical areas. The bottlers produce the final drink by mixing the syrup with filtered water and sugar (or artificial sweeteners)and then carbonate it before filling it into cans and bottles, which the bottlers then sell and distribute to retail stores, vending machines, restaurants and food service distributors
The Coca-Cola Company and bottling partners arenot one and the same from a legal or managerialperspective. The Companys business is focused oncreating and marketing brands and trademarks, whileCoca-Cola bottling companies produce and package thefinished beverage products and then sell and distributethem to retail and wholesale customers.These bottling partners range from international andpublicly traded businesses to small, family-ownedoperations. Their governance and management structuresare separate from those of The Coca-Cola Company.
The company’s bottling relationships can be divided into three types: Bottlers in which coca cola company have invested and have a non-controlling ownership interest Independently owned bottlers in which the company have no ownership interest Bottlers in which the company have invested and have a controlling ownership interest
The Coca-Cola Company owns minority shares in some of itslargest franchisees, like Coca-Cola Enterprises, Coca-ColaAmatil, Coca-Cola Hellenic Bottling Company (CCHBC) andCoca-Cola FEMSA, but fully independent bottlers producealmost half of the volume sold in the world. Sinceindependent bottlers add sugar and sweeteners, thesweetness of the drink differs in various parts of theworld, to cater for local tastes.
SuppliersSuppliers include those business partners who supply systemwith materials, including ingredients, packaging and machineryas well as goods and services. At a minimum, all authorized anddirect suppliers must comply with all applicable laws andregulations, including those concerning child labor, forced labor,abuse of labor, freedom of association and collective bargaining,discrimination, wages and benefits, working hours andovertime, health and safety, and environmental practices.
Customers Customers include large, international chains ofretailers and restaurants, as well as small,independent businesses. Some of our customersare major corporations as globally familiar asthe name Coca-Cola; others are the cornermarket or the local pushcart vendor.
DEPARTMENTS OF COCA COLA Every organization is made up of different departments, each of these departments help Coca Cola achieve their objectives. As Coca Cola is a large multinational company, the amounts of departments are huge. Each country has their own Head Office and departments. Coca Cola is geographically split into five geographic operating segments, also known as strategic business units (SBUs). The five SBUs are North America, Africa, Asia, Europe, Eurasia and Middle East and finally Latin America. If all these departments perform in the correct way then that will continue the success of Coca Cola.
COKE INthe leading soft drink brand in IndiaCoca-Cola was INDIA until 1977 when it left rather than reveal its formula to the government and reduce its equity stake as required under the Foreign Exchange Regulation Act (FERA) which governed the operations of foreign companies in India After a 16-years absence, Coca-Cola returned to India in 1993 Coca-Cola India started business, including new production facilities, wastewater treatment plants, distribution systems and marketing equipment. Coca-Cola system has invested more than US$ 1 billion in India Coca-Cola is one of the countrys top international investors
It employs approximately 6,000 people, and indirectly createsemployment for more than 125,000 people in related industriesthrough vast procurement, supply and distribution systemThe Coca-Cola system in India comprises 27 wholly-owned company-owned bottling operations and another 17 franchisee-owned bottlingoperationsThe complexity of the Indian market is reflected in the distributionfleet, which includes 10-tonne trucks, open-bay three-wheelers thatcan navigate the narrow alleyways of Indian cities, and trademarkedtricycles and pushcarts. Coca-Cola serves in India some of the most recalled brands acrossthe world, which include names such as Coca-Cola, Diet Coke, Sprite,Fanta, along with the Schweppes product range.In 2002, Coca-Cola India (CCI) launched a new advertisementcampaign featuring leading bollywood actor - Aamir Khan. Theadvertisement with the tag line - Thanda Matlab Coca-Cola wastargeted at rural and semi-urban consumers.
RURAL MARKETINGSTRATEGY CCIs rural marketing strategy was based on three As - Availability, Affordability and Acceptability. The company opted for a hub and spoke distribution system to market in rural areas.( stock was transported from the bottling plants to hubs and then from hubs, the stock was transported to spokes which were situated in small towns.) Large trucks for transporting stock from bottling plants to hubs and medium commercial vehicles transported the stock from the hubs to spokes.stock from spokes to village retailers the company utilized auto rickshaws and cycles. It made an investment of Rs 7 million to meet rural demand . Through its rural distribution initiatives, CCI was able to increase its presence in rural areas from a coverage of 81,383 villages in 2001 to 1,58,342 villages in August 2003
SWOT ANALYSIS STRENGTHS * Strong brand name * Co-operate identity * Global distribution * Innovation WEAKNESSES * Does not enjoy the number one position in India. * Advertising was not clear and was misunderstood in India
OPPURTUNITIES * Possible growing demand * Expansion – Reaching all segments * Glocalisation * Catering to Health Conciouness of People THREATS * Competition-Pepsi * Health Drinks – Fruit Juice Companies
SUGGESTION TO STAY AHEAD OFCOMPETITION The three main ways are through innovation, relations or reputation. First of all innovation can be used. This may certainly give coca cola competitive advantage because it introduces a new product, which many people will want to try People will like to purchase the commodity even though price is high because no substitutes are available. It may also give coca cola brand loyalty which means customers will stay loyal to them no matter what happens.
Many of coca cola’s plastic bottles are recycled and as a result less resources are lost and costs decrease. This makes profits increase. It attracts a new market segment This will mean they will have a higher revenue increasing long term profitability.
Another factor is marketing. This is a very important factor for coca cola. In order for the company to maintain its strong market position, Coca Cola needs to continuously strengthen its brand to maintain brand loyalty and positive responses and differentiate itself from its competitors If coca cola used strong marketing it may raise barriers to entry, thus decreasing the threat of new entrants to the industry. Coca Colas brand represents quality, taste and excitement to the market, qualities that remain unmatched by the companys competitors, thus severely reducing any threat of being substituted.
The message that is conveyed through Coco Colas advertisements implies that no matter what personality or what ever kind of lifestyle someone has drinking cola boosts their confidence as well as allowing them to get pleasure from every day activities that are considered as being dull. This gives a bright, bubbly, lot of energy, loving and not to mention lively atmosphere. The white meaning a loyal, pure and trustworthy company