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  1. 1. COMPETITIVE ADVANTAGE OF COCA-COLA Author- Younus Miraj Shanto-Mariam University of Creative & Tchnology Uttara-Dhaka
  2. 2. ABSTRACT Coca Cola is now a brand all around the world. Every day they promote their market every corner of the world. More than 60 percent soft drinks liked people like coca cola. They have different kinds of products like Coke, Sprite, Fanta, Lift etc. They always try to provide their product with low price with different packaging.As it is a soft drink, Coca-Cola Company follows Intensive Distribution. It is found more or less everywhere in Bangladesh. In terms of promotions they use Emotional Appeal. INTRODUCTION Coca-Cola is a cola (a type of carbonated soft drink) what sells in stores, restaurants and vending machines. It is produced by The Coca-Cola Company.The Coca-Cola Company offers nearly 400 brands in over 200 countries or territories, which shows its reorganization. The Coca-Cola Company only produces concentrate syrup which is then sold to various bottlers throughout the world who hold a Coca-Cola franchise. Executive summary this reports gives internal and external audit of coca cola. Coca Cola though was the company with the most obstacles. I think there are many different things that should be taken into consideration when you are trying to find out which issues that have attempted Coca Cola.Coca cola owns more than half of the world’s beverages. Coke is affordable in all countries. It was not out of the price range for an afternoon snack. Coca cola is recognized by 94% of size worldwide so youth world’s population can use it for a crowd or as a personal snack drink. COMPETITIVE ADVANTAGE Competitive advantage involves communicating a greater perceived value to a target market than its competitors can provide. This can be achieved through many avenues including offering a better-quality product or service, lowering prices and increasing marketing efforts. Sustainable competitive advantage refers to maintaining a favorable position over the long term, which can help boost a company's image in the marketplace, its valuation and its future earning potential.[1] Competitive advantage occurs when an organization acquires or develops an attribute or combination of attributes that allows it to outperform its competitors. These attributes can include access to natural resources, such as high grade ores or inexpensive power, or access to highly trained and skilled personnel human resources. New technologies such as robotics and information technology can provide competitive advantage, whether as a part of the product itself, as an advantage to the making of the product, or as a competitive aid in the business process for example, better identification and understanding of customers.[2]
  3. 3. TYPES OF COMPETITIVE ADVANTAGE When a firm sustains profits that exceed the average for its industry, the firm is said to possess a competitive advantage over its rivals. The goal of much of business strategy is to achieve a sustainable competitive advantage. There are two basic types of competitive advantage:(1-2)[3] 1. Cost advantage 2. Differentiation advantage 1. Cost advantage: A competitive advantage exists when the firm is able to deliver the same benefits as competitors but at a lower cost benefits that exceed those of competing products. Thus, a competitive advantage enables the firm to create superior value for its customers and superior profits for itself. 2. Differentiation advantage: Differentiation by a firm from its competitors is achieved. When it provides something unique that is valuable to buyers beyond simply offering a low price. FIVE FORCE MODEL Since its introduction in 1979, Michael Porter’s Five Forces has become the de facto framework for industry analysis. The five forces measure the competitiveness of the market deriving its attractiveness. The following is a Five Forces analysis of The Coca-Cola Company in relationship to its Coca-Cola brand. There are a given a chart the below of five force models: COMPETITIVE ADVANTAGE Differentiation advantage Cost advantage
  4. 4. Figure 1:Chart of five force model. 1. Threat of New Entrants/Potential Competitors: There is an increasing amount of new brands appearing in the market with similar prices than Coke products. Coca-Cola is seen not only as a beverage but also as a brand. It has held a very significant market share for a long time and loyal customers are not very likely to try a new brand. 2. Threat of Substitute Products: There are many kinds of energy drink soda or juice products in the market. Coca- Cola doesn’t really have an entirely unique flavor. In a blind taste test, people can’t tell the difference between Coca-Cola and Pepsi. 3. The Bargaining Power of Buyers: The individual buyer is no pressure on Coca-Cola. Large retailers have like Wal-Mart and have bargaining power because of the large order quantity but the bargaining power is lessened because of the end consumer brand loyalty. 4. The Bargaining Power of Suppliers: The main supply for soft drink is included carbonated water, phosphoric acid, sweetener, and caffeine. The suppliers are not concentrated or differentiated.Coca-Cola is likely a large or the largest customer of any of these suppliers. 5. Rivalry among Existing Firms: Currently, the main competitor is Pepsi which also has a wide range of beverage products under its brand. Both Coca-Cola and Pepsi are the predominant carbonated beverages and committed heavily to sponsoring outdoor events and activities.There are other soda brands in the market that become popular, like Dr. Pepper, because of their unique flavors. These other brands have failed to reach the success that Pepsi or Coke has enjoyed.
  5. 5. COMPANY PROFILE ORIGIN a) The first Coca-Cola recipe was invented in Covington, Georgia, by JOHN STITH PEMBERTON, originally as a coca wine called “Pemberton's French Wine Coca’ in 1885.” b) The first sales were made at Jacob's Pharmacy in Atlanta, Georgia, on May 8, 1886, and for the first eight months only nine Drinks were sold each day. c) It incorporated in 1892 as Coca-Cola Company (the current corporation).(a-c)[4] COMPANY PICTURE Figure 2:Picture of The coca cola company. HEADQUARTERS The Coca-Cola Company, Atlanta, USA
  6. 6. COMPANY PROFILE The world is changing all around us. Coca Cola Company isfounded in 1886. World's leading manufacturer, marketer, and distributor of nonalcoholic beverage concentrates and syrups, used to produce more than 230 beverage brands. The corporate headquarters are in Atlanta, with local operations in nearly 200 countries around the world.The Coca Cola Company is a leader in the coke’s industry, with thousands of employees and offices in the entire world, making it an emporium of beverages.[5] MISSION OF COMPANY There are given below of company mission:  To refresh the world - in mind, body and spirit  To inspire moments of optimism - through our brands and actions  To create value and make a difference everywhere we engage VISSON OF COMPANY To achieve our mission, we have developed a set of goals, which we will work with our bottlers to deliver :( A to Z)[6] Profit:Maximizing return to shareholders, 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 people's desires and needs Partners: Nurturing a winning network of partners and building mutual loyalty Planet: Being a responsible global citizen that makes a difference Productivity: Be a highly effective, lean and fast-moving organization VALUE OF COMPANY Our shared values that we are guided by are: Leadership Passion Integrity Accountability Collaboration Innovation Quality
  7. 7. VARIETIES OF PRODUCT There are given the below verities of products: SL NO PRODUCT NAME SL NO PRODUCT NAME 1 Coca-Cola 5 Ceil 2 Diet Coke 6 PowerAde 3 Coca-Cola Zero 7 Simply 4 Dasani 8 Coca Cola light IMAGE OF PRODUCTS Coca-Cola Diet Coke Coca-Cola Zero Dasani Ceil PowerAdeSimply Coca-Cola light Figure 3:Image of variety products. COCA-COLA STRATICES Coca cola owns more than ½ of the world’s beverages.Coke is affordable in all the countries. It was not out of the price range for an afternoon snack.Coke comes in a variety of sizes worldwide so you can use it for a crowd or as a personal snack drinkCoca-Cola is recognized by 94% of the world’s population.
  8. 8. MARKETING STRATEGY Going Global Our Quality Promises Targeting young Mind Change Of Bottle Designs Fun IslandCocateria Coca Cads Coca Hookha Coke Pumps MARKETING STRETEGY Examines how Coca-Cola has strategically positioned itself within the world’s soft drinks market. Given that they operate in over 200 countries, they are faced with a clear choice of whether to standardize their product offerings globally and reap the potential benefits of economies of scale, adapt their offerings to a particular market. Figure 4: Chart of marketing strategy. 1. Going Global: To take up global marketing strategy through standardization and integrationof the many services to ensure uniform growth for the company “Coke” throughout the world. From now onwards Global marketing strategies will be incorporated not in a specific area or country but other country also which was neglected till now, which will get 100% recognition to the company “COKE”. Figure 5: Image of going global.
  9. 9. 2. Our Quality Promises: Quality Is The Highest Business Objective. Have achieved “GOLDEN PEACOCK NATIONAL QUALITY AWARD 2004” in India and are marching forward to achieve such more awards globally. Though there were many problems in quality, the quality department has taken an immediate action to ensure that consumers do not lose interest Figure 6: Image of our quality promises. 3. Targeting young minds: Coke’s commercials are basically based on young, the young generation is the target market of Coke because they want to represent Coke with the youth and energy but they also consider about the old people they take then as a co-target market. 4. Change Of Bottle Designs: While targeting young minds of India they are also changing the design of the bottle to attract the young minds of India. As bottles of Coke Company have always been simple we are going to launch designer bottles with few new old attractive tastes. Figure 7: Image of bottle design.
  10. 10. 5. Fun Island : To provide is a real fun time in a private island of Coke Company. This island is mainly meant for college couples on a special occasion. To have fun things like  coke fountain  coke Halloween parties  coke games  cock competitions Figure 8: image of Fun Island. 6. Cocateria: To open worldwide cafeteria like cocateria. Where we are going to have all the varieties of drinks only of coco Cola Company including refreshments Figure 9:Image of Cocateria.
  11. 11. 7. Coca Cabs: We are providing private cabs for tourists for their personal use with limited free coke drinks in the cab for the customers. Figure 10:Image of coca cabs. 8. Coke Hookah: Coke hookah is planning to introduce a coke flavor hookah. This flavored hookah combines the taste of generations which are not harmful and are suitable for girls, ladies, old people etc. Figure 11:Image of coke hookah. 9. Coke Pumps: To install coca pumps all over the world .this will reduce the cost price of the soft drink compared to the bottled price and will create more demand in the market. Figure 12:Image of coke pumps.
  12. 12. SWOT ANALYSIS STRENGTH WEAKNESS 1. The best global brand in the world in terms of value ($77,839 billion) 2. World’s largest market share in beverage 3. Strong marketing and advertising 4. Most extensive beverage distribution channel 5. Customer loyalty 6. Bargaining power over suppliers 7. Corporate social responsibility 1. Significant focus on carbonated drinks 2. Undiversified product portfolio 3. High debt level due to acquisitions 4. Negative publicity 5. Brand failures or many brands with insignificant amount of revenues OPPORTUNITIES THREATS 1. Bottled water consumption growth 2. Increasing demand for healthy food and beverage 3. Growing beverages consumption in emerging markets (especially BRIC) 4. Growth through acquisitions 1. Changes in consumer preferences 2. Water scarcity 3. Strong dollar 4. Legal requirements to disclose negative information on product labels 5. Decreasing gross profit and net profit margins 6. Competition from PepsiCo 7. Saturated carbonated drinks market Figure 13:Chart of SWOT. COMPETITORS  The biggest competitor of coke is Pepsi.  Pepsi is often second to Coke in terms of sales.  In Bangladesh, Coca-Cola ranked first and behind of the coca cola have Pepsi, seven up, Mountain Dew and so on. CONCLUSION To produce the world's best is known product. The Coca-Cola Company has built internal and external structures to support the delivery of its business goals. The Coca-Cola Company has to employ the highest quality processes and establish standards which guarantee the production of a standardized product which meets consumers' high expectations each and every time they drink a bottle or can of Coca-Cola.More than complying with standards and acquiring first rates, Coke aimed at enhancing the shopping experience and enjoyment of refreshments.
  13. 13. REFFERENCE 1. 2. 3. 4. 5. 6. 7. Figure 1- of-coca-cola/ 8. Figure2/ x-a&rls=org.mozilla 9. Figure 3/ 10. Figure4/ me&client=firefox-a&rls=org.mozilla:en- 11. Figure 5- 12. Figure6/ me&client=firefox-a&rls=org.mozilla 13. Figure 7/ 14. Figure 8/ statement.html 15. Figure 9/ 16. Figure10/ opportunities-and-t/15515/ 17. Figure 11/ 18. Figure12/ Cola_Company.3f8a006eaf87d773.html 19. Figure13/ ame&client=firefox-a&rls=org.mozilla