2. Coca-Cola’s History
Invented in May of 1886 by Dr. John Styth
Pemberton
First glass sold for 5 cents at Jacob’s
Pharmacy in Atlanta
May 29, 1886- first newspaper
advertisement pronounced it “Delicious
and Refreshing”
3. Coca-Cola’s Growth cont.
1985, Coca-Cola changed its formula
introducing New Coke.
New Coke was roundly rejected by
consumers
Coca-Cola quickly brought back Coca-Cola
Classic to meet customer demands.
5. Coca-Cola’s Growth cont.
Mid 1980s, Coca-Cola came back to its roots
to concentrate on the soft drink industry.
Coca-Cola adopted a product development
effort with diet, caffeine-free, and citrus soft
drinks
introduced POWERADE and Fruitopia in
early 1990s.
6. Coca-Cola’s Mission
Mission + Commitment = Focus
Focus + Action = Results
Mission statement: “We exist to create value for our
share owners on a long-term basis by building a
business that enhances The Coca-Cola Company’s
trademarks. This is also our ultimate commitment.
As the world’s largest beverage company, we refresh
that world. We do this by developing superior soft
drinks, both carbonated and non-carbonated, and
profitable non-alcoholic beverage systems that create
value for our Company, our bottling partners and our
customers.”
7. Coca-Cola’s Objectives
Coca-Cola’s first objective is to maximize
share owner value over time.
Maximize long-term cash flow
To ensure the strongest and most efficient
production, distribution, and marketing
systems possible
9. Coca-Cola Statistics
Coca cola owns more than
½ of the world’s beverages.
Coke is affordable in all the
countries
Coke comes in a variety of
sizes worldwide.
10. Coca-Cola’s Ecological
Coca-Cola’s aluminum cans are recyclable.
Coca-Cola’s plastic containers are also
recyclable.
Coca-Cola’s cardboard containers are made
out of recycled materials.
11. Rivalry
Pepsi is Coca-Cola’s main rival
Coca-Cola prevailed from the “Cola Wars”
Coca-Cola has two of the top three soft
drinks:
Coca-Cola Classic (#1)
Pepsi (#2)
Diet Coke (#3)
13. Threat of Substitutes
Coca-Cola has successfully differentiated
their product.
Loyal Coca-Cola patrons do not see Pepsi as a
conceivable substitute.
Tremendous brand loyalty minimizes threat
of substitutes.
14. Supplier Power
Coca-Cola faces no significant threats in this
area
Within U.S., Coca-Cola uses high fructose
corn syrup as a raw material.
Outside U.S., Coca-Cola uses sucrose
Both are readily available therefore
restricting supplier power.
15. Threat of New Entrants
Coca-Cola enjoys significant economies of
scale.
Coca-Cola has huge market share.
Coca-Cola has tremendous brand loyalty.
These factors minimize the threat of new
entrants into the soda industry.
16. COCA-COLA MARKETING MIX
Coca cola is the brand with the highest brand equity.
No doubt it has gone through the ups and downs of
business to reach that position.
The marketing mix of Coca cola has been changing
over time with more and more products being added
such that today it has 3300 products.
17. PRODUCT
The company has the widest portfolio in beverage
industry comprising of 3300 products. Beverages are
divided into diet category, 100% fruit juices, fruit
drinks, water, energy drinks, tea and coffee etc. As per
Nielson’s data, Coca cola is the No.1 brand in sparkling
beverages, juice, and retail packaged water in 2010.
Coca cola has its market presence around 200
countries.
Coca cola brands in India are Fanta, Maaza, Limca,
sprite, Thums up, Minute Maid, Nimbu fresh, Nested
iced tea etc.
19. PRICE
Due to the availability of wide range products the
pricing is done according to the market and
geographic segment.
Each sub-brand of coca cola has different pricing
strategy. Their pricing strategy is based on the
competitors pricing, Pepsi is the direct competitor to
coke. Beverage market is said to be a oligopoly market
(few sellers and large buyers), hence they form into
cartel contract to ensure a mutual balance in pricing
between the sellers.
20. PLACE
Coca cola is the world’s most favorite brand and is
available all over the world. The distribution system of
coca cola follows the FMCG distribution pattern.
The effective distribution network of coke has almost
eroded the small and middle level players in the
market.
In India they have captured even the rural market by
extensive distribution and have eroded the market
share of Bovonto, Kalimark etc.
21. PROMOTION
Coca cola adopts various advertising and promotional
strategies to create an increased demand in the market
by associating with life style and behaviour.
You are more likely to see a coke ad individualised for a
particular festival or in with a general positive
message.
It has many brand ambassadors like Shahrukh khan,
Hrithik Roshan, South Indian Actor Vijay and Trisha ,
Ghambir, Aamir khan ,Imran khan etc. It allows price
discounts and allowances to distributors and retailers
in order to push more products into the market.
It employs both push strategy through promotions and
pull strategy through advertisements and campaigns.
