2. Coca-cola
Market Leadership:- Coca-Cola is the largest bottler
of Coca-Cola trademark beverages in the world in
terms of total sales volume, with operations in
Mexico, Argentina, Brazil and etc…
Strong brand portfolio: a one-stop shop for its
retailers by offering a complete beverage portfolio -
including carbonated soft drinks, bottled
water, juices, orangeades, isotonics, teas, energy
drinks, milk, coffee and even beer in some markets
such as Brazil.
3. Coca Cola’s mission
statement
To refresh the world
To inspire moments of optimism and
happiness
To create value and make a difference
4. Now they are moving from :
“Creative Excellence” to
“Content Excellence”
5. This part consider both the internal and
external influence on coca cola marketing
planning.
The macro environment is analyzed using the
PESTEL framework.
6. 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.
7. 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.
8. 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.
9. 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.
10. 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 .
11. 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.
12. 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.
13. 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.
14. Management
Management are experienced and
successful in launching new products.
Machine
Coca cola own plant & equipment and
franchisees.
Materials
Good relationship with suppliers.
15. 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.
16. 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 world's
most consumed soft drink, doesn't 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.
17. 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,"
