PRESENTATION 
ON 
STRATEGIC MANAGEMENT OF 
“COCA COLA”
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.
Coca Cola’s mission 
statement 
To refresh the world 
To inspire moments of optimism and 
happiness 
To create value and make a difference
Now they are moving from : 
 “Creative Excellence” to 
 “Content Excellence”
 This part consider both the internal and 
external influence on coca cola marketing 
planning. 
 The macro environment is analyzed using the 
PESTEL framework.
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.
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.
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.
 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.
 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 .
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.
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.
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.
Management 
 Management are experienced and 
successful in launching new products. 
Machine 
 Coca cola own plant & equipment and 
franchisees. 
Materials 
 Good relationship with suppliers.
 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.
 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.
 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,"
Brand Mapping
a-ppt-on-coca-cola

a-ppt-on-coca-cola

  • 1.
    PRESENTATION ON STRATEGICMANAGEMENT OF “COCA COLA”
  • 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 aremoving from :  “Creative Excellence” to  “Content Excellence”
  • 5.
     This partconsider 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  Cocacola’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-environmentcan 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 ofsubstitutes  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  Theexperienced 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  Cocacola 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  Managementare experienced and successful in launching new products. Machine  Coca cola own plant & equipment and franchisees. Materials  Good relationship with suppliers.
  • 15.
     Transforming ourcommercial 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-HIGHVOLUME 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 priceof 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,"
  • 19.