Coca-Cola is the world's largest manufacturer and distributor of non-alcoholic beverages, holding a 45.84% market share over recent years with over 3500 products. The competitive landscape includes major players such as Pepsi and Nestlé, with ongoing innovations and joint ventures like Tata Water Plus showing market adaptability. Despite its strong position, Coca-Cola faces pressures from rivals, market demands for healthier options, and environmental sustainability initiatives.

1. By: Team Awesome
-Michelle
-Astha
-Lauren
-John

2.  New products produced almost daily
 Factors influencing consumer consumption:
 Weather
 Consumer taste
 Demographics
 Lifestyles
 Coca-Cola is the worlds largest manufacture,
distributor and marketer of non-alcoholic
beverages
 Carry over 3500 different products

3.  Coca Cola markets more than 3500 nonalcoholic
beverage brands worldwide:
 Sparkling and still beverages
 Waters
 Juices and juice drinks
 Read-to-drink teas and coffees
 Energy and sport drinks
 Beverage Concentrates
 Bases
 Syrups
 Fountain syrups
 Coke for the last 5 years (from February 2007 to
February 2012) has held a 45.84% of the nonalcoholic
beverage market size.
 Full list of beverages:
 http://www.thecoca-
colacompany.com/brands/brandlist.html

4.  Coke’s rivals on a
national scale:  Degree of product
 Pepsi Co differentiation:
 Nestle  Low prices
 Dr. Pepper Snapple  Product Innovation
 Groupe Danone
 Brand and trademark
 Kraft Foods Inc
development and
 Learning and Experience protection
Curve:
 In 2011 the distribution
 Introduction to new
of white Christmas coke packaging
to promote cans resulted  Sales promotion
in angry tweets from programs
caring consumers getting
confused with the Diet  Advertising
Coke cans.
 Increased efficiency
 In 1985 unsuccessfully
tried to change the in production
original formula. techniques
 New vending and
dispensing equipment

5. Other firms offering substitute products:
• Pepsi Co– Pepsi, Mountain Dew, Sierra •Hansen Natural- Sky Blue
• Dr. Pepper Snapple- 9 different flavors •Red Bull- Red bull and sugar free RB
• Cott Corp- Vess and Stars and Strips •Big Red- Big Red Soda
• National Beverage- RipIt, Ritz, & Crystal •Rockstars- Energy drinks
Bay
Rivalry among
competing sellers:
Suppliers: Buyers:
• NutraSweet (2011 Revenue)
Company and
Ajinomoto Co., • Eurasia &
Inc.- Aspartame Africa 7%
• Nutrinova • Europe 12.9%
Nutrition
Specialties & • Latin America
Food Ingredients 12.5%
GmbH-
Acesulfame • North America
Potassium
New Entrants: 53%
• Tate and Lyle- • Pacific 14.6%
Sucralose • NourishCo Beverages Ltd

6.  Pepsi promotes healthy beverages brands such as
Gatorade, Tropicana and Tata Water Plus
 How do they do this?
 Pepsi is promoting a new beverage called “Tata Water Plus” which is now
available in India, one of Pepsi’s top 5 targeted markets.
 Dr. Pepper is marketing a new product targeted for men,
the Dr. Pepper Ten
 How do they do this:
 Fashion the packaging in grey gunmetal and silver bullets.
 Marketing the new product by creating a Dr. Pepper Ten Facebook page also
designed only for men.
 Nestlé is expanding their beverage market by including
teas, lemonades and juices
 How do they do this:
 Acquiring the Sweet Leaf Tea Company, including its brands (Sweet Leaf and
Tradewinds)

7.  Influences of  Influences of Buyers
Suppliers  Buyer Independence
 Switching Cost  Buyer size
 Importance of  Price Sensitivity
quality/cost  Product Dispensability
 Supplier Size  Backwards integration
 Player independence  Undifferentiated
 Player dispensability product
 Oligopoly threat  Tendency to switch
 No substitute inputs  Oligopoly threat
 Differentiated input  Low-cost switching
 Forward integration  Financial muscle

8.  Weak to Normal likelihood of New Entrants
 Needs of new entrants
 Unique Production Method or nutritional benefits
 Fairly LARGE amount of capital
 Find new niche -- market research
 Tata Global Beverages and PepsiCo have joint
venture under NourishCo Beverages selling a new
nutrient beverage in India as of February 9th
2012 called Tata Water Plus.
 Referring to NourishCo’s “Nutrient Water,” TGB’s Vice
Chairman R. K. Krishna Kumar stated on February 9th
sales may rise 7% to 8% ending March 2012 creating a
3.5% increase from the year before; however, due to
the joint venture, the company will not see real
impact until 2014.

9.  A 5 year competition pressure graph between Coke (blue), Pepsi (green), and
Dr. Pepper (orange) compared with the Dow (red).
 Our company Coca Cola is leading the Economic Dow

10.  Overall average strength of competitive forces in the US,
China and Europe – NEED TO CHANGE ONCE DONE
 Suppliers = Moderate
 Buyers= Weak to Moderate
 Substitute products= Moderate
 Potential new entrants = Weak to Moderate
 Rivalry= Moderate
 Collective Strength
 By looking at the 5 Forces Model, our company is moderately
sensitive to their suppliers, buyers, substitute products, rivalry
with the other companies and potential new entrants.
 Coke’s competitive environment is neither ideal nor unattractive
because
 rivalry is vigorous
 entry barriers are low but entry is likely
 competition from competitors is on average moderate from our
sample
 the suppliers and customers have considerable bargaining power
 Good substitutes do exist

11.  Product and Technology Innovation
 PlantBottle – 100% plant based materials
 Freestyle drink dispensers were introduced to the market in 2010.
 New calorie-burning tea introduced in 2006
 Productivity and Reinvestment Program
 Cutting cost and investing in brand redevelopment and offset of increasing cost of
commodities
 Globalization of Industry
 The change in the price of money from other countries converting to the US dollar
 Coke tries to globalize its products into China, Asia and beyond; however, global
differences affect countries’ acceptance to Coke products such as China and Iran
 Societal Values
 Promoting a healthier environment with the new PlantBottle that will allow Coke to
quit using materials made from fossil fuels and non-renewable resources.
 Improving water efficiency and reducing carbon emissions from its operations
through its partnership with the World Wildlife Fund will reduce emissions by 27.4%
in 2015
 These driving forces originate from the outer ring of the macro
environment model

12.  Soft Drinks in China
 Groupe Danone at…………………………20.3%
 Tingyi Holding Corp at………………….15.5%
 Coca-Cola Company at………………….10.7%
 Others at……………………………………….53.6%
 Soft Drinks in Europe
 Coca Cola at………………………………….16.5%
 PepsiCo, Inc at…………………………….….6.6%
 Nestle S.A. at……………………………….…6.2%
 Others at……………………………………….70.8%
 Soft Drinks in USA
 Coca Cola at………………………………...27.7%
 PepsiCo, Inc at……………………………..24.4%
 Nestle S.A. at………………………………...8.4%
 Others at……………………………………….39.4%

13.  Pepsi Co
 By joining forces with Tata Global Beverages to
produce a nutritious drink for their buyers,
NourishCO will observe their revenues over the
next few years to see if joining forces was a
financially smart and competitive move in the
market
 Dr. Pepper Snapple
 Slimming Down Project
 Last month Dr. Pepper started testing 5 of their other
products to follow Dr. Pepper Ten in hopes of
continuing promising sales

14.  Powerful Brands
 Taste test example
 Worldwide network of bottlers and
distributors of Company products
 Sophisticated Marketing capabilities
 Except in Cuba, Sudan, Iran, Burma and
North Korea
 Talented group of dedicated employees
 Money is not the key to success; people are a
company’s assets to achieve success

15.  The soft drink industry has a large growth
potential as the market moves towards
healthier new beverages.
 PepsiCo and Nestlé are constantly keeping
Coke on its toes to stay ahead of the game
 Coke recognizes the potential risks and
vulnerabilities that could hurt their business
(ex: obesity, changes in laws and regulations,
and unfavorable economic and political
circumstances in the international markets)

16. We believe that The Coca-Cola
Company is moderately sensitive
to the market. Based on the
competitive analysis of market
positions, the Five Forces Model
and the NYSE anything is possible
but since TCCC is a large
established and vastly located
around the world, it would be
pretty hard to knock down this
bully without a strategic plan.