Coca cola e commerce


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Coca cola e commerce

  1. 1. Afeef ALi COCA COLA
  2. 2. What I m going to Present  Introduction  History  Marketing Mix  Part of Coca cola in E commerce  Competitors  Criticism , rumours and Suggestions
  3. 3. Introduction  Coca-Cola, the product that has given the world its best- known taste was born in Atlanta, Georgia, on May 8, 1886. Coca-Cola  Company is the world’s leading manufacturer, marketer and distributor of non-alcoholic beverage concentrates and syrups, used to produce nearly 400 beverage brands.  It is now the most recognized trademark in the world, with 94% recognition. It has 490000 employees globally  Coca Cola have now acquired the attention of more then 200 Nations  This Coca-Cola system owns, leases or operates more than 800 plants around the world. Coca-Cola's bottling partners range from international and publicly traded businesses to small, family-owned operations  majority of Coca-Cola products are manufactured and distributed by the Coca-Cola Bottling Company (CCBC)
  4. 4. Revenue by geographic region Region Revenue 2004 Revenue 2003 Change % North America $ 6.64 Billion $ 6.34 Billion 4.7 % Africa $ 1.06 Billion $ 827 Million 29% Asia $ 4.67 Billion $ 5.06 Billion - 7 % Europe $ 7.19 Billion $ 6.55 Billion 9.7 % Latin America $ 2.12 Billion $ 2.04 Billion 3.7 % Corporate $ 243 Million $ 223 Million 8.9 %
  5. 5. History  Atlanta the beginning 1886-1892 John Pemberton, an Atlanta pharmacist he stirred up a fragrant, caramel-coloured liquid and drink was something special. So Jacobs' Pharmacy put it on sale for five cents a glass. water and sampled by customers who all agreed this new drink was something special. So Jacobs' Pharmacy put it on sale for five cents a glass.  Beyond Atlanta 1893-1904 Asa G. Candler after the death of John pemberton took the charge of company. By 1895, Candler had built syrup plants in Chicago, Dallas and Los Angeles. Joseph Biedenharn became the first to put Coca-Cola in bottles. The woodruff legacy 1919-1940 In 1923, four years after his father Ernest purchased the Company from Asa Candler, Woodruff became the Company president. Woodruff in 1928 introduced Coca- Cola to the Olympic Games for the first time
  6. 6. History  A world of customers 1960-1981 After 70 years of success with one brand, Coca-Cola®, the Company decided to expand with new flavors: Fanta®, originally developed in the 1940s and introduced in the 1950s; Sprite® followed in 1961, with TAB® in 1963 and Fresca® in 1966. In 1960, The Coca-Cola Company acquired The Minute Maid Company, adding an entirely new line of business juices to the Company. In 1978, The Coca-Cola Company was selected as the only Company allowed to sell packaged cold drinks in the People's Republic of China.  Coca Cola now From the early beginnings when just nine drinks a day were served, Coca-Cola has grown to the world’s most ubiquitous brand, with more than 1.7 billion beverage servings sold each day.
  7. 7. Coca Cola Mission Our Mission 1. Our Roadmap starts with our mission, which is enduring. It declares our purpose as a company and serves as the standard against which we weigh our actions and decisions. 2. To refresh the world... 3. To inspire moments of optimism and happiness... 4. To create value and make a difference.
  8. 8. Marketing Mix of Coca Cola  PRODUCTION The Coca-Cola Company produces the concentrates and syrups used in its drinks at 30 principal companies owned and operated manufacturing plants worldwide. The production process is very secretive thus limiting the availability of production locations.  Product line Coca cola have 70 main products with 400 baewarages brands in which the most important are Coca cola, Fanta,Sprite,Kinley etc  Pricing Coke was a company ruling the markets before Pepsi entered. Earlier the price of coke was cost based i.e. it was decided on the cost which was spent on making the product plus the profit and other expenses. But after the emergence of other companies especially the likes of Pepsi, Coca-cola started with a pricing strategy based on the basis of competition. Nowadays more expenses are spent on advertising my soft-drink companies rather than on manufacturing
  9. 9. Manufacturing and target market  Manufacturing Coca-Cola Enterprises CCE is one of the world’s largest marketers, producers and distributors of Coca-Cola products. CCE buys concentrate from The Coca-Cola Company and combines it with other ingredients to create some of the most popular beverages in Belgium, Great Britain, France, Luxembourg, the Netherlands, Norway and Sweden.  Coca cola target market Coca Cola's target market is young adults to middle-aged people. Although, even kids cannot resist soda intake, it is not advisable for kids to consume soda because of its unhealthy effect to the body. Coca Cola has been successfully dominating its target market for years. The company's beverages are generally for all consumers. However, there are some brands, which target specific consumers. For example, Coca-Cola's diet soft drinks
  10. 10. Board of Directors  James Robinson III – Director since 1975  Donald McHenry – Director since 1981  Herbert Allen – Director since 1982  Warren Buffet – Director since 1989  Ronald Allen – Director since 1991  Cathleen Black – Director since 1993  Sam Nunn – Director since 1997  Barry Diller – Director since 2002  Pedro Reinhard – Director since 2003  Donald Keogh – Director since 2004
  11. 11. Joint ventures  Joint Ventures Beverage Partners Worldwide (BPW) – Coca- Cola and Nestlé formed Coca-Cola and Nestlé Refreshments in 1991 in order to expand both companies’ position in the ready-to-drink tea category. In 2001, the joint venture was renamed Beverage Partners Worldwide. The collaboration currently operates in the United States and 59 other countries and has expanded into the ready- to-drink coffee business. Some brands within BPW include Nestea and Nescafe ready-to-drink products and the Tian Yu Di tea and Yang Guang tea businesses from Coke.
  12. 12. Coca cola management Hierarchy
  13. 13. Coca Cola Part in E commerce What kinds of e-Commerce does the Coca-Cola Company use? Coca cola Uses both Business to business and Business to consumer E commerce
  14. 14. Coca Cola Part in E commerce  Coca Cola Co uses business to consumers or B2C. They created, an online shop designed to expand Coca-Cola's distribution of branded merchandise. The site features Coca-Cola brand products from clothing to cookware to collectibles. Innotrac Inc. is the e-commerce partner in the venture. The agreement calls for Innotrac to design and develop the site as well as manage all aspects of order processing, fulfillment, and customer care.
  15. 15. Business to Consumer  Coca-Cola uses two types of search engines in order to follow its B2C model; Crawler based search engine and human powered directories.  Google is considered a crawler based search engine and automatically creates a list  Yahoo is considered a human powered directory where you can type in a word in the search query  Like other strong brands Coca cola have his own web site
  16. 16. Coca Cola Part in E commerce  Internet has made it possible for Coca-Cola Company to build a strong relation with bottling partners all over the world internet makes it easier for them to interact with each other. The Coca-Cola Company’s business is focused on creating and marketing our brands and trademarks, while Coca-Cola bottling companies produce and package the finished beverage.  with more than 300 bottling partners globally and operate the most extensive beverage distribution system in the world  Coca cola operates more than 800 plants around the world
  17. 17. Business to business  Coca-Cola has launched, an online store for home delivery of the group’s various beverage products  The service is currently available in Ahmadabad municipality only. Customers need to book their orders before 12 noon to get products home-delivered the same day. You can also place bulk order or monthly supplies of products.  Minimum order for delivery is Rs 300, as of now  The website is run by Hindustan Coca-Cola Beverages Pvt Ltd, the largest bottling partner of The Coca-Cola Company in India E commerce in Pakistan There are 6 plants of Coca cola are in Pakistan The mega plants are in Lahore and Rahimyar khan bottle from all over the country are send to Rahimyar khan to be filled with the beverages and later on are send to distributers or Intermediaries Part of E commerce  PCD plan which is Order booking  ISIS (Indirect sales information system) software to distributions from company for sales and marketing information
  18. 18. Coca Cola Part in E commerce  Promotion In 2004, Coke spent $2.2 billion on the production of print, radio, television and other advertisements. This total is up from the approximately $1.8 billion spent in 2003 and the approximately $1.7 billion spent in 2002 on advertising. 118 In 2003 Coke spent a total of $472 million on advertising in the US and was ranked 69 th in Advertising Age’s top 100 Leading National Advertisers. 119 The company was ranked 57 Th and spent $569 million in 2002. The payoff for such large investments in advertising and branding has helped Coke maintain its position at the head of a list of world’s Top 100 brands. In the fourth annual survey compiled by Business Week magazine, Coke’s brand value was cited as over $67 billion US – ranking ahead of Microsoft and IBM.
  19. 19. Promotion  How Coca-Cola uses Face book & Twitter  Face book
  20. 20. Promotion Face book  Coca Coca-Cola has attracted 63 million fans to its main Facebook page,  And one of the privileges that come with its international celebrity is the ability to leave its Face book page unattended for long periods of time.  While other consumer brands such as ASOS and Red Bull push out several updates per day in order to keep their fans interested, Coca-Cola often goes more than a week without posting anything  Furthermore, as Coca-Cola doesn’t have its own stores its social strategy isn’t focused on driving people to its shops or to an ecommerce platform.  Instead it’s all about maintaining the brand image and raising awareness of its ad campaigns.  , in the past 12 months the company has used its Face book pages to publicise its Olympics and Euro 2012 ad campaigns.  Compared to a number of other brands I’ve looked at the level of engagement on Coca-Cola’s page is actually quite low.
  21. 21. Promotion Twitter
  22. 22. Promotion Twitter  As is common with most global brands, Coca-Cola has separate Twitter feeds for each of the local markets in which it operates.  It also has dedicated pages for various products and sub- brands, including Diet Coke, Coke Zero, its racing teams, and the company’s long-deceased founder Doc Pemberton.  The main Twitter feed has just over 700,000 followers and has tweeted more than 75,000 times, which makes it among the most active brands I’ve looked at.  It responds to a huge number of mentions each day, including complaints, follow requests, compliments and general chitchat. And the social team even has a Spanish speaker among the ranks.  there are probably still hundreds of @mentions going unanswered which Coca-Cola could probably address by adding more staff to the social or customer service teams.  It has a clearly defined audience and could easily use Twitter to communicate with its customers and increase brand loyalty, however it prefers instead to use it primarily as a broadcast tool.
  23. 23. Promotion Advertisement  Coke's advertising is pervasive, as one of Woodruff's stated goals was to ensure that everyone on Earth drank Coca-Cola as their preferred beverage  1941 saw the first use of the nickname "Coke" as an official trademark for the product, with a series of advertisements informing consumers that "Coke means Coca-Cola". In 1971 a song from a Coca-Cola commercial called "I'd Like to Teach the World to Sing", produced by Billy Davis, became a hit single  Coca cola has always been effective in his Advertisement  The Coca-Cola Company purchased Columbia Pictures in 1982, and began inserting Coke-product images into many of its films
  24. 24. Advertisement Sports sponsorship  Coca-Cola was the first commercial sponsor of the Olympic games, at the 1928 games in Amsterdam, and has been an Olympics sponsor ever since  Since 1978, Coca-Cola has sponsored the FIFA World Cup  Coca-Cola is the official soft drink of many collegiate football teams throughout the nation  Coca-Cola has a long history of sports marketing relationships, which over the years have included Major League Baseball, the National Football League, the National Basketball Association, and the National Hockey League
  25. 25. Advertisement In mass media  Coca-Cola has been prominently featured in countless films and television programs. Since its creation, it remains as one of the most important elements of the popular culture. It was a major plot element in films such as One, Two, Three, The Coca-Cola Kid, and The Gods Must Be Crazy among many others. It provides a setting for comical corporate shenanigans in the novel Syrup by Maxx Barry. And in music, in The Beatles' song, "Come Together", the lyrics said, "He shoot Coca- Cola, he say...". The Beach Boys also referenced Coca-Cola in their 1964 song "All Summer Long" (i.e. 'Member when you spilled Coke all over your
  26. 26. Advertisement COCA COLA Brand Ambassadors  Tayler swift as Brand ambassador of Coke Diet  Kareena Kapoor,s as Limca  Sachin Tendulkar acting as Coke's brand ambassador.
  27. 27. Advertisement (Slogans)
  28. 28. E procurement strategies of Coca cola  The product must be in the catalogue  Users must be able to find what they need  The data must be right  Users must want to use the system
  29. 29. Coca cola’s Information System  Different types of information systems are needed for different companies. Each company has individual needs and requirements and finding the right information system mean the difference between success and failure.  They started out with an old system called the legacy system. This turned out to be very inefficient, it was not user friendly and a lot of costs were incurred  They also did their financial plans manually on spreadsheets and were submitted as hard copies. This made it very difficult to update information and was a very big issue as they began to expand globally.  As they were growing an integrated business management system was needed to handle the different aspects of their worldwide corporation. They decided to incorporate Strategic Enterprise Management (SEM).
  30. 30. Coca cola’s Information System Advantages of SEM  This provided them with business planning for finances,  data warehousing for information collection and data analysis  generate financial reports and monthly sales forecasts  It helps them in decision making Disadvantages  data redundancy and lack of necessary information
  31. 31. Coca cola’s Information System Microsoft's Enterprise Project Management (EMP)  Due to data redundancy Coca cola needs a new IS so to tackle the problem and EMP is supposed to help them Advantages of EMP  The data from different departments will be gathered into one databa se.  It can also integrate SAP Microsoft products to reduce our maint enance costs.  With spreading EMP all over our company, all managers will hav e their own account numbers  managers of production department managers can easily monitors prodyction processes  sales managers can acquire sales costs and inventory at the same time.  Managers of the financial department can calculate and analyze all the finances in EMPsolution
  32. 32. Competitors  The greatest competition that Coca-cola faces is from the rival sellers within the industry. Pepsi Co, and Cadbury Schweppes , Nestle are among the largest competitors in this industry, and they are all globally established which creates a great amount of competition. In which Pepsi is the biggest competitor of all
  33. 33. Competitors Advantages of E commerce of Coca cola  Buying/selling 24/7.  More reach to customers, there is no theoretical geographic limitations.  Low operational costs and better quality of services.  No need of physical company set-ups.  Easy to start and manage a business.  Social Networking Coca-Cola maintains a visible appearance on Face book and other social networking sites such as Twitter. With over 34 million fans as of 2011  Online Advertising Coca-Cola uses subtle yet effective online advertising to make you feel like you want its products. Targeted advertisements on websites mean that Coca-Cola has greater control over who sees their ads and when they see them.
  34. 34. Advantages of Coca cola over Pepsi 1. Coke and Pepsi are very active in social media, and I think their hard work is helping to build up a bank of trust with their audiences. But coca cola is producing much better then Pepsi on Social media then Pepsi. Coca-Cola also has been working in many different ways to use social media to create trusting customer relationships. For example, Coke has the second most popular page on Face book (after President Obama's) with more than 5 million fans. Pepsi number of Fans on Face book Coca cola number of fans Face book 11154757 101534
  35. 35. Advantages of Coca cola over Pepsi 2. Pepsi Co Return-on-investment is difficult to calculate. 3. Pepsi Co have had trouble recruiting and retaining employees with the technological, design, and business process skills needed to create an effective electronic commerce presence. 4. Difficulty of integrating existing databases and transaction-processing software designed for traditional commerce into the software that enables electronic commerce. 5. Pepsi Co faces cultural and legal obstacles to conducting electronic commerce.
  36. 36. Disadvantages of Coca cola over Pepsi 1. Promotion  Both coca cola and Pepsi have great strategies of promotions but Pepsi always have a upper hand over coca cola eg  Pepsi advertisements often focused on celebrities, choosing Pepsi over Coke  The blind taste challenge 2. Pepsi home page is more attractive then Coca cola 3. Pepsi electronic commerce can also make products and services available in remote areas.
  37. 37. Criticism  Coca-Cola has been criticized for alleged adverse health effects, its aggressive marketing to children, exploitative labour practices, high levels of pesticides in its products, building plants in Nazi Germany which employed slave labour, environmental destruction, monopolistic business practices, and hiring paramilitary units to murder trade union leaders. In October 2009, in an effort to improve their image, Coca-Cola partnered with the American Academy of Family Physicians, providing a $500,000 grant to help promote healthy-lifestyle education; the partnership spawned sharp criticism of both Coca-Cola and the AAFP by physicians and nutritionists.  Bolivia has been reported to consider banning Coca- Cola prior to January 2013
  38. 38. Rumours Coca-Cola contains material making it unsuitable for vegetarians and Muslims. Some products of the Coca-Cola Company contain alcohol.
  39. 39. Suggestions  Focusing on its advertising and differentiation can increase its profits.  Changing consumer lifestyle; by becoming health conscious and preferring substitute products. Coke can relatively diversify and offering health conscious products.  Coke must Use social media effectively not only for awareness but for marketing also  Coke must introduce Online sides for booking not only in India but in other countries too  In Pakistan coca cola E commerce is not very impressive it should enhance its e commerce
  40. 40. Conclusion  Coca cola is one of the most productive and famous brand of a world with strong marketing base but E commerce is good but not as effective as expected from such a world leader