This is an External Analysis from my Management Analysis and Consult 492 class on The Coca Cola Company.

1. By: Team Awesome
-Michelle
-Astha
-Lauren
-John

2.  New products produced almost daily
 Factors influencing consumer consumption:
 Weather
 Consumer taste
 Demographics
 Lifestyles
 Coca-Cola is the worlds largest manufacture,
distributor and marketer of non-alcoholic
beverages
 Carry over 3500 different products

3.  Coca Cola markets more than 3500 nonalcoholic
beverage brands worldwide:
 Sparkling and still beverages
 Waters
 Juices and juice drinks
 Read-to-drink teas and coffees
 Energy and sport drinks
 Beverage Concentrates
 Bases
 Syrups
 Fountain syrups
 Coke for the last 5 years (from February 2007 to
February 2012) has held a 45.84% of the nonalcoholic
beverage market size.
 Full list of beverages:
 http://www.thecoca-
colacompany.com/brands/brandlist.html

4.  Coke’s rivals on a
national scale:  Degree of product
 Pepsi Co differentiation:
 Nestle  Low prices
 Dr. Pepper Snapple  Product Innovation
 Groupe Danone
 Brand and trademark
 Kraft Foods Inc
development and
 Learning and Experience protection
Curve:
 In 2011 the distribution
 Introduction to new
of white Christmas coke packaging
to promote cans resulted  Sales promotion
in angry tweets from programs
caring consumers getting
confused with the Diet  Advertising
Coke cans.
 Increased efficiency
 In 1985 unsuccessfully
tried to change the in production
original formula. techniques
 New vending and
dispensing equipment

5. Other firms offering substitute products:
• Pepsi Co– Pepsi, Mountain Dew, Sierra •Hansen Natural- Sky Blue
• Dr. Pepper Snapple- 9 different flavors •Red Bull- Red bull and sugar free RB
• Cott Corp- Vess and Stars and Strips •Big Red- Big Red Soda
• National Beverage- RipIt, Ritz, & Crystal •Rockstars- Energy drinks
Bay
Rivalry among
competing sellers:
Suppliers: Buyers:
• NutraSweet (2011 Revenue)
Company and
Ajinomoto Co., • Eurasia &
Inc.- Aspartame Africa 7%
• Nutrinova • Europe 12.9%
Nutrition
Specialties & • Latin America
Food Ingredients 12.5%
GmbH-
Acesulfame • North America
Potassium
New Entrants: 53%
• Tate and Lyle- • Pacific 14.6%
Sucralose • NourishCo Beverages Ltd

6.  Pepsi promotes healthy beverages brands such as
Gatorade, Tropicana and Tata Water Plus
 How do they do this?
 Pepsi is promoting a new beverage called “Tata Water Plus” which is now
available in India, one of Pepsi’s top 5 targeted markets.
 Dr. Pepper is marketing a new product targeted for men,
the Dr. Pepper Ten
 How do they do this:
 Fashion the packaging in grey gunmetal and silver bullets.
 Marketing the new product by creating a Dr. Pepper Ten Facebook page also
designed only for men.
 Nestlé is expanding their beverage market by including
teas, lemonades and juices
 How do they do this:
 Acquiring the Sweet Leaf Tea Company, including its brands (Sweet Leaf and
Tradewinds)

7.  Influences of  Influences of Buyers
Suppliers  Buyer Independence
 Switching Cost  Buyer size
 Importance of  Price Sensitivity
quality/cost  Product Dispensability
 Supplier Size  Backwards integration
 Player independence  Undifferentiated
 Player dispensability product
 Oligopoly threat  Tendency to switch
 No substitute inputs  Oligopoly threat
 Differentiated input  Low-cost switching
 Forward integration  Financial muscle

8.  Weak to Normal likelihood of New Entrants
 Needs of new entrants
 Unique Production Method or nutritional benefits
 Fairly LARGE amount of capital
 Find new niche -- market research
 Tata Global Beverages and PepsiCo have joint
venture under NourishCo Beverages selling a new
nutrient beverage in India as of February 9th
2012 called Tata Water Plus.
 Referring to NourishCo’s “Nutrient Water,” TGB’s Vice
Chairman R. K. Krishna Kumar stated on February 9th
sales may rise 7% to 8% ending March 2012 creating a
3.5% increase from the year before; however, due to
the joint venture, the company will not see real
impact until 2014.

9.  A 5 year competition pressure graph between Coke (blue), Pepsi (green), and
Dr. Pepper (orange) compared with the Dow (red).
 Our company Coca Cola is leading the Economic Dow

10.  Overall average strength of competitive forces in the US,
China and Europe – NEED TO CHANGE ONCE DONE
 Suppliers = Moderate
 Buyers= Weak to Moderate
 Substitute products= Moderate
 Potential new entrants = Weak to Moderate
 Rivalry= Moderate
 Collective Strength
 By looking at the 5 Forces Model, our company is moderately
sensitive to their suppliers, buyers, substitute products, rivalry
with the other companies and potential new entrants.
 Coke’s competitive environment is neither ideal nor unattractive
because
 rivalry is vigorous
 entry barriers are low but entry is likely
 competition from competitors is on average moderate from our
sample
 the suppliers and customers have considerable bargaining power
 Good substitutes do exist

11.  Product and Technology Innovation
 PlantBottle – 100% plant based materials
 Freestyle drink dispensers were introduced to the market in 2010.
 New calorie-burning tea introduced in 2006
 Productivity and Reinvestment Program
 Cutting cost and investing in brand redevelopment and offset of increasing cost of
commodities
 Globalization of Industry
 The change in the price of money from other countries converting to the US dollar
 Coke tries to globalize its products into China, Asia and beyond; however, global
differences affect countries’ acceptance to Coke products such as China and Iran
 Societal Values
 Promoting a healthier environment with the new PlantBottle that will allow Coke to
quit using materials made from fossil fuels and non-renewable resources.
 Improving water efficiency and reducing carbon emissions from its operations
through its partnership with the World Wildlife Fund will reduce emissions by 27.4%
in 2015
 These driving forces originate from the outer ring of the macro
environment model

12.  Soft Drinks in China
 Groupe Danone at…………………………20.3%
 Tingyi Holding Corp at………………….15.5%
 Coca-Cola Company at………………….10.7%
 Others at……………………………………….53.6%
 Soft Drinks in Europe
 Coca Cola at………………………………….16.5%
 PepsiCo, Inc at…………………………….….6.6%
 Nestle S.A. at……………………………….…6.2%
 Others at……………………………………….70.8%
 Soft Drinks in USA
 Coca Cola at………………………………...27.7%
 PepsiCo, Inc at……………………………..24.4%
 Nestle S.A. at………………………………...8.4%
 Others at……………………………………….39.4%

13.  Pepsi Co
 By joining forces with Tata Global Beverages to
produce a nutritious drink for their buyers,
NourishCO will observe their revenues over the
next few years to see if joining forces was a
financially smart and competitive move in the
market
 Dr. Pepper Snapple
 Slimming Down Project
 Last month Dr. Pepper started testing 5 of their other
products to follow Dr. Pepper Ten in hopes of
continuing promising sales

14.  Powerful Brands
 Taste test example
 Worldwide network of bottlers and
distributors of Company products
 Sophisticated Marketing capabilities
 Except in Cuba, Sudan, Iran, Burma and
North Korea
 Talented group of dedicated employees
 Money is not the key to success; people are a
company’s assets to achieve success

15.  The soft drink industry has a large growth
potential as the market moves towards
healthier new beverages.
 PepsiCo and Nestlé are constantly keeping
Coke on its toes to stay ahead of the game
 Coke recognizes the potential risks and
vulnerabilities that could hurt their business
(ex: obesity, changes in laws and regulations,
and unfavorable economic and political
circumstances in the international markets)

16. We believe that The Coca-Cola
Company is moderately sensitive
to the market. Based on the
competitive analysis of market
positions, the Five Forces Model
and the NYSE anything is possible
but since TCCC is a large
established and vastly located
around the world, it would be
pretty hard to knock down this
bully without a strategic plan.