Coca-colaMarket Leadership:- Coca-Cola is the largest bottlerof Coca-Cola trademark beverages in the world interms of total sales volume, with operations inMexico, Argentina, Brazil and etc…Strong brand portfolio: a one-stop shop for itsretailers by offering a complete beverage portfolio -including carbonated soft drinks, bottledwater, juices, orangeades, isotonics, teas, energydrinks, milk, coffee and even beer in some marketssuch as Brazil.
Coca Cola’s mission statementTo refresh the worldTo inspire moments of optimism andhappinessTo create value and make a difference
Now they are moving from : “Creative Excellence” to “Content Excellence”
This part consider both the internal and external influence on coca cola marketing planning. The macro environment is analyzed using the PESTEL framework.
Political Factors: Coca cola operates globally and their performance is influenced by the political stability and instability of these countries.Economic factors High inflation in any of the countries will cause the price of coca cola to raise and consumption of coca cola may fall.
Social factors Consumers in the different countries will have different taste and perception about coca cola.Technological factors The current environment is technological driven and the need for dynamic innovation. Coca cola has got competent research and development team who discover new technologies to improve productivity.
Environmental Coca cola’s operations results in environmental footprints. They aim at reducing them in their areas of operations to gain brand image. Coca cola plant relies heavily on electricity for production. They generate alternative power to reduce this reliance.Legal factors Coca cola is given the copy right to operate and is the only company that can produce and sell coca cola in all countries. Several countries have laws regulating how companies should operate and coca cola is a law abiding corporate citizen.
The micro-environment can be analyzed using porter’s five forces. These forces determines the attractiveness of cold drinks industry. Threats of new entry. This appears to be very low in this industry as there is exclusivity of right for coca cola to operate in some geographical locations. Ti is also capital intensive and require huge investment. This serves as a barrier to entry. Brand loyalty from customers serves as a barrier to entry. Economy of scale and scope also serve as a barrier to entry.
Threat of substitutes Fruits and vegetable juices are closed substitutes for the industry. For health concerns, many choose to consume organic fruit juice. Bargaining power of suppliers This also appears to be weak as suppliers’ products(e.g. sugar) are basic commodities and ingredients. Coca cola buys in bulk and rather has power over suppliers. Bargaining power of customers(B2B) This appears to strong as customers are mainly large supermarkets and retailer. They have the power to negotiate price down to reduce coca cola profitability .
Competitive rivalry There are currently three major players in the cold drink industry. Coca cola Pepsi cola Cadbury Schweppes Coca cola has got dominant position. There are currently growing markets and niches that can be exploited so competition is not so keen.
Men The experienced employees of coca cola will help in introducing the new product.Money The new product development will require finance for developing and launching it. Coca cola is financially sound.
Markets Coca cola has experiences to market the product to target customers, market exist and can be reached.Make-ups The culture influences how coca cola considers this new ideas and opinions. the culture at coca cola encourages new ideas for growth.
Management Management are experienced and successful in launching new products.Machine Coca cola own plant & equipment and franchisees.Materials Good relationship with suppliers.
Transforming our commercial models to focus on our customers’ value potential and using a value-based segmentation approach to capture the industry’s value potential, Implementing multi-segmentation strategies in our major markets to target distinct market clusters divided by consumption occasion, competitive intensity and socioeconomic levels; Implementing well-planned product, packaging and pricing strategies through different distribution channels; Driving product innovation along our different product categories and Achieving the full operating potential of our commercial models and processes to drive operational efficiencies throughout our company.
LOW COST-HIGH VOLUME STRATEGY• Industry estimates for the January to September 2012 period indicate that the top 2 soft drinks brands are from the Coca-Cola stable. But brand Coke, the worlds most consumed soft drink, doesnt figure amongst those top 2.• Coca-Cola is now counting on the meals campaign to ramp up volumes of its global flagship cola, which languishes at No 4 in the pecking order. The top 2 are Thums Up and lemon-lime flavored Sprite, both brands from the Coca-Cola India stable; global rival PepsiCo is at No 3.
The price of Coke concentrate has been consciously kept lower than that of Thums Up to spur bottling of the global cola, confirms a top official within its bottling business who did not want to be named. This summer, the company had dropped the price of Coke in 200 ml returnable glass bottles to Rs 8 from Rs 10 in big markets like Mumbai, Tamil Nadu, Gujarat and Karnataka; the prices of other soft drinks in the Coca-Cola stable were not tinkered with. "Bringing the price down to Rs 8 for glass bottles is unprofitable. But the company wants volume gains for Coke, even if the bottling business profits are compromised," the beverage maker has only mentioned growth numbers of only brand Coke. "If brand Coke does well, it is perceived by headquarters as The Coca-Cola Company is doing well... it reflects on shareholder sentiment as well,"