Making the worlds best known product“Thanda to Bass Coca Cola”Dr. John S Pemberton Asa G Candler
Making the worlds best known productOverviewCase AnalysisInput & ProcessesContinuous Flow MethodJust in TimeTotal Quality ManagementPenetration into PakistanPakistani ParallelRoadmap
Making the worlds best known productOverview• May 8, 1886• Transnational approach• $60 Billion industry led by E. Neville Isdell• Sells 400 brands in over 200 countries• Polycentric attitude and structure• Geographic market lead by ExecutiveCommittee
Making the worlds best known productObjectiveTo be the world’s leading provider of brandedbeverages solutions, to deliver consistent andprofitable growth, and to have the highest qualityproduct and processes
Making the worlds best known product• Partners in Success• Transforming Vs Transformed• TQM is the heart of Customer Satisfaction• Manufacturing cycle as a continuous flowmethod• Just in Time supply chainThe Case
Making the worlds best known product• Packaging Licensee– Franchises (Packagers)– Bottling and canning operators– Distributors, wholesalers and retailers• Continuous Flow Method & Network• Serving more than 5.8 billion peoplePackaging
Making the worlds best known productInput– Financial Capital– Raw Materials– Physical Plant– Human ResourcesManufacturing
Making the worlds best known productProcess1) Storing cans2) Delivering raw materials to the plant3) Mixing and blending water, carbonates and syrup4) Finishing off of the canning process– Interlink Step: Quality ControlManufacturing
Making the worlds best known productJust in Time• Transport technology & material handling is ceaselessly undergoing change• Computer technology has made tracking systems to find exact position of inventory• Dell Computer• A master of just-in-time producer• Keeps only 5 day inventory• Competitors keep 40 days or even 60 days• Tesco• Large British supermarket chain• Setup innovative JIT market logistic system• Reduce costly backroom storage space• Twice a day delivery of replenishment stock• Designed new trucks with 3 Compartments to carry 3 different types of goods• Auto Industry• The ideal candidate where large firms need to operate to strict delivery plans.• In this way, firms can make big economies in cost allied with keeping stocks when just-in-timemanagement approaches are used.
Making the worlds best known productJust in Time– Traditional Role– Salesperson initiating commercial transactions– Visit buyers with objective of securing orders– considered for next tendering round.– Advent of JIT / Lean Manufacturing– Started by the Japanese firms– Goal is zero inventory with 100% quality– Requirements / Demand of JIT– Delivery should be made exactly when needed, with zero defects.– High level of service, tightly scheduled & quality must met– Raw material or components have to be replenished on a regular basis– Advantages/Features– JIT an efficient means of cost saving– Reducing stock to an absolute minimum– Who adopted JIT?– Firms having large purchasing power– That imposes rigorous delivery conditions on their suppliers– Just-in-time II: The Next level of Customer-Supplier Partnerships– Focuses on reducing cost & time– Concept: Supplier places full time employee at customer’s site– Implants: take place of customer‘s buyer and material planner & of supplier’s sales representative.
Making the worlds best known productTQM is a management tool for improvingtotal performance. it takes place at everystage in the production of Coca-Cola i.e.from manufacturing the concentrate tillpacking the finished product into cases.TQM
Making the worlds best known product• Minimize Risk• Continuous improvement• Guarantees the quality of a product atevery step• Increases customer satisfaction• It ensures consistency in production ofevery single unit.TQM
Making the worlds best known productKaizen• Continuous improvement• TQM can be referred as a version of Kaizen.• It includes feedback from the employees similarto what TQM does• A Japanese analogous for ‘continuousimprovement’• Involves the gradual change in an organization’sbusiness process and corporate culture.
Making the worlds best known product• History• The Coca-Cola System– (CCBPL, CCEC)• Network of 75,000 retailers• Brands & Packaging• Economic Impact (strength of 2000 people)• 8 Bottlers providing 720,000 bottles daily• Market ShareCoke Pak
Making the worlds best known productMarket ShareCoca-ColaPepsi OthersGlobally65% 24% 11%Pakistan30% 60% 10%Karachi34% 56% 10%PepsiCoca-ColaOthersPepsiCoca-ColaOthersPepsiCoca-ColaOthers010203040506070Globally Pakistan Karachi
Making the worlds best known product– Imperial Tobacco Company– Since 1947, CEO Jeremy David Pike– Part of the trans-national BAT GroupSimilarity with COKE:– More focused on JIT and TQM.– Modern technology and packaging technique– One Though CompetitorP T C
Making the worlds best known product– Pakistan’s #1 tobacco company– Largest excise tax generator in the privatesector in the country– Over one million people are economicallydependent– Have brands for SEC A1 to SEC D– Lakson Tobacco Company , biggestcompetitorMarket Standing
Making the worlds best known productBrand Value010,00020,00030,00040,00050,00060,00070,00080,0002003 2004YearBrandValue($Million)Coca-ColaMicrsoftIBMGEIntel
Making the worlds best known productBrands• Major Brands– Coca-Cola, Sprite & Fanta• The Minute Maid Companys Brands include:– Premium Orange Juice (with Calcium)– Premium Lemonade– Iced Tea– Coolers– Hi-C Blast and Five Alive
Making the worlds best known productMake Every Drop CountContinuous Quality ImprovementEfficient JIT is crucialEconomies of ScaleStructure & CultureConsumer TastesSpecific line of specialty foods to go with CokeLine Extension & ExpansionConclusion