Prnciples Of Marketing Final Presentation Ehab Etani IPAD 3 001
Coca Cola-Competitve Anaylsis-Ihab Itani
1.
2. Type: Soft Drink (Cola)
Manufacturer: The Coca- Cola Company
Founder (s): John S. Pemberton
Country of Origin: United States
(Atlanta, Georgia)
Introduced: 1886
Area Served: Over 200 countries
Company Overview
is an
American multinational
beverage corporation
and manufacturer,
retailer and marketer of
non-alcoholic beverage
concentrates
and syrups
3. • Coca-Cola recipe was formulated at the Eagle Drug and Chemical
Company, a drugstore in Columbus, Georgia
• It was inspired from European coca wine which was in France.
• It was initially sold as a patent medicine for five cents.
• Coca-Cola was first sold to the public in Atlanta at Jacob’s Pharmacy
• Only 9 servings of the soft drink were sold each day
• Sales for the first year were only $50
History
The Coca-Cola formula and brand was
bought in 1889 by Asa Candler who
incorporated The Coca-Cola
Company in 1892.
4. Company`s Profile (Mission, Vision ,Values)
• Vision:
- People: Be a great place to work where people are inspired to be the
best they can be.
- Portfolio: Bring to the world a portfolio of quality beverage brands that
anticipate and satisfy people's desires and needs.
- Profit: Maximize long-term return to shareowners while being mindful of
our overall responsibilities
• Mission:
- To refresh the world in body, mind and spirit
- To inspire moments of optimism through our brands and our actions
- To create value and make a difference everywhere we engage.
• Values:
Leadership: The courage to shape a better future
Collaboration: Leverage collective genius
8. Generic Strategies
Cost Leadership
• Coca-Cola`s
positioning is
archived through
economies of scale
in research,
development, and
promotion.
• It is also achieved
through
effective/efficient
distribution
networks and
manufacturing
systems
Differentiation
• For Coca-Cola it`s
achieved through
superior quality
product.
• High Brand image
and recognition
• Promotion and
packaging
• ex: Coca-Cola
bottle (A symbol)
Focus
• Coca-Cola have
230 brand globally
some of these
products were
targeted for specific
people who were
for differentiation.
• Ex: Diet coke,
Coke-zero
9. Main
Competition
limited to small
number of big
players. (Pepsi)
Threat of
new
Entrants
Fashionable
new drinks,
milk, coffee,
beer
Bargaining
power of
Suppliers
Threat of
Substitute
products
Bargaining
power of
Suppliers
Low buyer
bargaining,
Prices and
availability
Low supplier
bargaining
power due to
scale of
Coca-Cola.
No consumer
switching cost
zero capital
requirement
Porters Five
Forces
Entry barriers are relatively low.
Medium to High pressure
Lowpressure
Lowpressure
10. SWOT
Analysis
STRENGTHS WEAKNESSES
OPPORTUNITIES
THREATS
- Strong brand image
- Financially stable
-Strong distribution channel
-Heavy promotional activities
-70% revenue-outside USA
- Health care issues.
-Product offering restricted to
beverages
-Inability to launch new product.
- Large domestic market
- Export potential
- Alliances and Merges
- Changing consumers preference
-legal issues
-competition (Pepsi)
-Large number of substitutes
- Increased prices of raw materials
11. • Differentiated Marketing
• Customer satisfaction
• Endorsement of celebrities
• Reasonably priced
• Consumer connecting
advertisements
• Availability in every local market
Strategies of
Coca-Cola
Competitive Advantages:
• Market Leadership: A huge Trademark.
• Strong Brand Portfolio: offers powerful and wide portfolio of
beverages to it`s customers. Always exploring new categories.
• Channel Marketing: To classify the markets and develop targeted
efforts for each consumer segment.
12. Competitors Analysis
- Pepsi is a very tough company to
go against because they have
almost similar investments,
advertisements, Strategies and
Products.
- PepsiCo also has a snack product
line including Lays, Cheetos and
Quaker OAT’s
- PepsiCo provide carbonated
drinks, Fruit Drinks and Packaged
Drinking Water
60%
35%
5%
coca cola pepsi.co others
Market Share of
Carbonated Drinks
13. Comparison
Companies Coca-Cola Pepsi
Founded Atlanta, Georgia
USA 1892
North Carolina
USA
1965
Company
Ownership
Public Public
Sector Beverages Beverages
Statistics Number of
Employees:
146,200
Revenue: 48.01
billion
Number of
Employees:
297,000
Revenue: US$
66.504 billion
14. Comparison of financial highlights
COMPANY NAME Coca cola Pepsi.co
Profit Margin
33.768046 10.958194
Asset Turnover
0.577 1.071
Return on Assets
19.506218 11.736928
Earning Per Share
5.12 3.97
Financial Objectives
- Investing to drive additional growth in key developing markets across the world
in both Snacks and Beverages.
- Increase our investments in R&D, with particular focus on long-term bets and
innovation to sustain our long-term growth.
15. Pepsi SWOT Analysis
Strengths
- Broad Product line
- Great reputation for their products
- Increasing market share
3 different sectors to improve efficiency
US food
US drinks
food and drinks abroad
#1 company in snacks
- Doritos
- Lays Chips
- Quaker Oat
Weaknesses
- Lack brand awareness with all
products
- PepsiCo doesn't have all the products
under one brand
Threats
- Weakened economy
- Pepsi blamed for pesticide residues in
their product.
- Lawsuits
- Several competitors due to broad
product line
Opportunity
- Invest in healthier products
- Devote more focus to non
carbonated healthy drinks
- Focus on international presence and
recognition
- Invest in going green
16. Coca-Cola and Pepsi-Cola focused particularly on pop
stars; notable soft drink promoters to advertise there
products.
Pepsi ads often focused on celebrities choosing Pepsi
over Coke, supporting Pepsi's positing as "The Choice of a
New Generation.“
Pepsi generation was created focusing on the user of the
drink, never the drink. Coke always focused on the drink.
Coca-Cola advertising is often characterized as "family-
friendly", and often relies on "cute" characters (e.g. the
Coca-Cola polar bear mascot and Santa
Claus around Christmas).
Similar& Different
Strategies Used
17. Conclusion
Coca-Cola currently offers more than 500
brands in over 200 countries or territories and
serves over 1.7 billion servings each day.
Future Plans
2020 Vision & Commitment
• Energy conservation/climate
change: reduce the overall carbon
footprint of our business operations
by 15% by 2020
• Sustainable
packaging/recycling : reduce the
impact of our packaging; maximize
our use of renewable, reusable, and
recyclable resources
• Product portfolio/wellbeing: provide
refreshing beverages for every
lifestyle and occasion