Coca Cola is the world's largest beverage company that was started in 1886 in Atlanta, Georgia. It has maintained its position as the top soft drink brand through strategic decisions around branding, marketing, and product distribution. While Coca Cola saw a 2% decrease in total turnover and a 17% decrease in net income in 2014 due to some negative impressions, it remains one of the most recognized brands globally with a portfolio of over 20 drink brands.
Introduction to LPC - Facility Design And Re-Engineering
Coca Cola's Global Success and Strategies
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2.
3. Coca Cola Inc. is number one soft drink company in
the world. Coca Cola is started their journey of
business in the 1886. First manufacturing of Coca
Cola is from Atlanta, Georgia. Coca Cola provide its
soft drink in bottling of which first bottling plant
initiated by Joseph. From year 1985, Coca Cola
planned to change formula of their cold drink by
developing “New Coke”. But due to lower response of
public on New Coke, Company again move to their
old formula. Coca Cola provides its range of products
to the consumers with the different taste and quality.
(ANON, N.D., “Coca Cola Invention” Accessed on 25th
September, 2015
http://www.iml.jou.ufl.edu/projects/spring08/Cantw
ell/invention.html)
4. Main objective of Coca Cola is to become number one brand in the world and for that
Currently Coca Cola used following Strategies for the purpose of their management –
Provide unique and different market tasted formula.
Develop standardise logo for differentiate from competitors, in order to this strategies
company develop their logo in 1923 which is continue used till.
Distribute drink in proprietary bottle. In order to make some different looks of the
bottle, Coca Cola develop different bottle which differentiate them with competitors.
Retailer should be held responsible for maintenance of its standard of quality of
product, In order to maintain its quality Coca Cola served their drink at 36 degree
Fahrenheit and Coca Cola told to retailers that never serve drink at 40 degree.
Maintain same price from 70 years; in order to this strategies company maintain its price
as 5 cent from the beginning to the till.
Best kind of marketing strategies; word of mouth marketing plan is one of the best plan
and it is very effective to attract customers.
Franchise model for sales of products, in this strategies company provide franchise to
the 250 bottlers in the world.
Doubling the marketing expense for lower sugar, nil sugar and calories cola.
(ANON, N.D., “Coca Cola Mission Vision and value” Accessed on 25th September, 2015
http://www.coca-colacompany.com/our-company/mission-vision-values)
5.
6. Current performance - Even there is much argument and claim
about the pesticides in the products come in the market though
performance of company does not affected any manner. Coca
Cola operate their business continuously like it operates
previously.
Total turnover of Coca Cola in Year 2014 is $45998 million
which is 2% lower than the 2013. But net income of the company
is $7098 million which is 17% lower than year 2013. In 2014
performance of company have downtrend due to some negative
impression about the soft drink in the market.
Coca Cola have more than 20 brands over world.
Company have one of the big competitors is PepsiCo but some
other local brand also provide competition to the company.
(ANON, N.D., “Coca Cola Annual Report” Accessed on 25th
September, 2015
<http://assets.coca-
colacompany.com/d2/78/7d7cad454f3fbd033d55d786b890/20
14-annual-report-on-form-10-k.pdf)
7. Mission – Mission of Coca Cola is to provide refreshes
to the world by create value and make difference of
moment and creating optimism of happiness.
Vision - Vision of company includes achieving
sustainable growth by providing quality of product to
the customer. Vision of company includes 6P i.e.
People, Portfolio, Partners, Planet, Profit and
Productivity. Company try to create winning culture
within company for achieve 2020 vision in reality.
Objective - Objective of company includes work
smart, be the brand, act like owners and focus on the
market. (ANON, N.D., “Coca Cola Mission Vision and
value” Accessed on 25th September, 2015
http://www.coca-colacompany.com/our-
company/mission-vision-values)
8. Top-management of the company
Since 1986, when the first soda fountain sales, coca cola has
been considered as the driver of marketplace innovation, and
today they are leading the market with more than 500 beverage
brands and which also includes world’s four out of top five
brands. The chairman of the board and chief executive officer of
the company leads the company with new firm commitment to
the values and provide coca cola and opportunity to become
world’s greatest brand. The top management of the company
leading by some senior officers having experience in the
beverages market for more than 20 years and contributed well in
the journey of the company to sustain, and to make profitable
growth. (
ANON, N.D., “About Coca Cola” Accessed on 25th September,
2015 https://www.worldofcoca-cola.com/about-us/coca-cola-
history/)
9. Task Environment -
Competition in domestic market of USA is very strong for Soft
drink product; one of the big competitors of Coca Cola is
PepsiCo, who provide tough competition to Coca Cola n global
market as well as domestic market.
Coca Cola operate their business in more than 200 countries
and each country have their local brand as well, who provide
tough competition to Coca Cola; stringent things is that now a
day people move towards local brand compared to Coca Cola.
Threats of new entrants are also very high as even single product
at entry level reduces the market by 1% domestically.
Threats of rivalry - In local market of each country have many
local manufacturer of soft drink, who provides tough competition
to Coca Cola.
(ANON, N.D., “Coca Cola brand strategy” Accessed on 25th
September, 2015
http://www.coca-colahellenic.com/aboutus/ourstrategicframew)
10. The board of directors of Coca Cola Enterprise is comprised of total 12 members. Mr.
John F. Brock stands in the position of chairman of board and also as a chief executive
of the company. He has also served as president of Legacy CCE during 2006 to 2008. He
has wide range of international beverage industry experience and has well leadership
and consensus building skills. The other members of the board of directors are also very
knowledgeable and skilful. The group managing director is working as the executive
director of the company. Geoffrey Kelly and Martin Jansen are working as non-executive
directors, and all the non-executive directors are independent.
The Board of directors has a crucial position in framing of strategy for the company
future. The Board of directors has been considered as the ultimate body for decision
making, expect for certain matters which has been reserved for shareholders of the
company. The composition of the board comprised with many overseas management
experts who serves in the best interest of the company coca cola enterprises. The other
directors of the company provide necessary information and guidance to chief executive
officer and senior officer of the board to take some crucial decisions. In discharging of
their duties, the members of the board have reliance on the senior officers of the
company, and outside on the experts serving as advisors and auditors of the company.
(ANON, N.D., “7 brilliant Strategy of Coca-Cola” Accessed on 25th September, 2015
<http://www.businessinsider.in/7-brilliant-strategies-Coca-Cola-used-to-become-
one-of-the-worlds-most-recognizable-brands/articleshow/47649874.cms)