this talks about the Coca-Cola's growth strategies with PESTLE analysis along with porters' five forces model.

1. STRATEGIC MANAGEMENT
By: Deepa Raghuwanshi

2. Industry Overview
“1940s: Industry in Transition.”
• The bottling industry releases a magazine at the height of post-war American
recovery with a mission: tell the world of soft drink marketing and technology.
• Bottling Industry changed it’s name to the Soft Drink Industry.
“The Fabulous 1950s.”
• Beverage sales increased and bottlers pushed for beverage departments in food
stores as television became an important part of daily lives.
“Swingin’ ’60s.”
• Soft drinks became part of major movements in the 60’s.
• Cans became highly popular in the soft drink industry, which introduced the “Touch n’
Go” slogan.

3. “Sipping in the 70s.”
• Carbonated beverages becomes the No.1 beverage of choice.
“Energetic ’80s.”
• Bottled water became the new fad. The water industry was considered the fastest
growing industry in the 80s.
“New Age ’90s.”
• New beverages hit the market, free of artificial flavors and
preservatives. Sparkling juice drinks increased in sales and juice became a heavy
contender for success.
• Sports drinks became vitamin and antioxidant heavy, in order to separate the
good drinks from the bad drinks.
International Players- Ab InBev, The Coca Cola Company, PepsiCo
Indian Players- Dabur India, Parle Food & Agro, Nestle India Ltd

4. GROWTH RATE
4
• Coca-Cola revenue for the last
quarter 2019 $9.742B, a 14.91%
increase year-over-year.
• Coca-Cola revenue for
2019 $37.266B, a 8.65%
increase year-over-year.

5. Profitability
5
$22,647
$21,233
$22,491
$25,398
$26,812
$28,109
$28,433
$28,964
$23,327
$22,426
$19,902
$20,570
$18,451
$15,924
$14,909
2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005
PROFIT
• Coca-Cola gross profit for the quarter ending
December 31, 2019 was $5.801B, a 15.14%
increase year-over-year.
• Coca-Cola gross profit for the twelve months
ending December 31, 2019 was $22.647B,
a 6.66% increase year-over-year.
• Coca-Cola annual gross profit for 2019
was $22.647B, a 6.66% increase from 2018.
• 2018 was $21.233B, a 5.59% decline from 2017.
• 2017 was $22.491B, a 11.45% decline from 2016

6. THE COCA-COLA COMPANY
• Created as Flavored Syrup mixed with carbonated water by Dr. John
Pamberton in 1886.
• Incorporated as The Coca Cola Company in 1892.
• Formulae sold to Griggs Candler who branded coke as a refreshing drink and
dropped all the medicinal claims.
• Nationwide bottling began as fountains were replaced by Bottles.
• Company purchases rights to Fanta in 1946.
• Introduction of several drinks like Sprite, Diet Cola in 1961.

7. • Nationwide bottling began as fountains were replaced by Bottles.
• Company purchases rights to Fanta in 1946.
• Introduction of several drinks like Sprite, Diet Cola in 1961.
• Entered India in 1956 but had to drop-out due to political reasons.
• Came back in 1993.
• Brought Thumbs Up, Limca from Parle.
• Several Campaigns like “Always Coca-Cola”, “Open Happiness” launched.
• Current Market Share: 15.2% (Overall), 31.4% (India).

8. Coca cola’s product portfolio(500 brands, 3500 beverages)
Sparkling Drinks (26%
low/no calorie, 74%
regular)
Coca-Cola
Coca-Cola light
Coca-Cola Zero
Coca-Cola Zer Decaf
Fanta
Fanta light
Sprite
Sprite Zero
Schweppes mixers
Still drinks Water
Premium
Spirits
Cocktails
Signature
Mixers
- Herbal
- Smoky
- Spicy
- Woody
S
N
A
C
K
s
Fruit Juice
- Amita
- Frulite
Sports Drinks
Energy Drinks
• Monster
• Burn
AVRA Natural
Mineral Water
• AVRA Bloom
• AVRA Active
Cap
• Eco-Flex
(24% less
plastic)
Tea and Coffee
Sprite
Fanta
MinuteMaid
Cocktails
• Edrington (Scotland)
• Brown-Forman
(American)
• Gruppo Campari
(Italian)
• Isidoros Arvanitis
(Greece)
Business Affiliations

9. Performance
Total Revenue
Europe, Middle-East, Africa
North America
Latin America
Asia Pacific

10. PESTEL ANALYSIS
POLITICAL FACTORS:
• Dependent on Government policies.
• Rise of taxes on sugar production in UK.
ECONOMIC FACTORS:
• Spend huge amount of budget on solving water crisis issues.
• Global economic crisis affects the consumption as it is seen as a luxury
item.
• Rising cost of raw materials.

11. CONTD.
SOCIO-CULTURAL FACTORS:
• Consumers shifting to energy drinks instead of carbonated drinks.
• The brand is considered destructive towards environment &
livelihood.
TECHNOLOGICAL FACTORS:
• Coca Cola currently has 108 million followers on Facebook, 3.34
million followers on Twitter.
• Coca Cola uses smart water harvesting process.

12. CONTD.
ENVIRONMENTAL FACTORS:
• Backlash for being the biggest consumer of freshwater in the world.
• Development of humid temperature has proven beneficial.
LEGAL FACTORS:
• Countries having different caffeine standards laws.
• Protest from various labour unions.

13. PORTER’S 5 FORCES MODEL
• Bargaining power of buyers-
1. Low bargaining power because of low switching due to low level of product differentiation and
smaller quantities.
2. Exceptions- McDonald’s and Walmart have moderate bargaining power.
• Substitute products or services-
1. Water, Tea, Juices, coffee, soda, beer etc
2. Low threat due to diverse products.
3. Offers nearly 4000 drink options through its 500 brands in over 200 countries
4. Chu-Hi in Japan
5. Evolved and changed with social trends
• Rivalry against competitors-
1. Duopoly in India
2. Other companies like Anheuser-Busch, Red Bull

14. PORTER’S 5 FORCES MODEL
• Threats of new entrants-
Innovation- Providing new value to customers through low price and cost
reductions.
Low threat as huge capital and resources required to build the brand.
Factors resisting the threat- brand image and loyalty, advertising expense, bottling
network, retail distribution, fear of retaliation and global supply chain.
• Bargaining power of suppliers-
Huge suppliers but low bargaining due to-
1. Ingredients
2. Fear of losing business contracts

15. COMPETITORS
Pepsi
• Came after 12 years
• Friendly brand, focussing on teens and young adults.
• Clever advertisements
• ‘The Pepsi Challenge’
• More appealing, yet, was far behind creating superior brand image
• Diverse product portfolio
• 50% revenue comes from snack food industry.
• Acquired or created complementary food products in both beverage and
food industry.

16. Other Players
• Red bull- Brand valuation, pub culture
• Limca-Fresh and light lemon lime taste (acquired later)
• Maaza- Non-carbonated mango soft drink with rich and natural
mango juice (acquired later)
• ThumsUp- Strong and fizzy, commanding good market share in India
(acquired later)
• Appy Fizz- Popular, carbonated apple juice for cocktails known for its
cleanliness.

17. Growth Strategy
Vertical Integration Strategy
• Increases operating effectiveness.
• Control of Supply Chain & Distribution Channel by Stake Holder
Product Development Strategy
• Offer great choices & Providing more info about their products
• Ensure that their products are sold and marketed responsibly.
Joint Venture
• Launching of Fair life Milk Product in joint venture with Select Milk Producers Inc.
• Deal with Keurig Green Mountain
• Deal with Monster Beverage

18. SWOT ANALYSIS
Strength
• Strong Brand
Identity
• Extended
Global Reach
• Unparalleled
Distribution
System
Weakness
• Aggressive
Competition
with Pepsi
• Product
diversification
• Health
Concerns
Opportunities
• New Offerings in
health & food
segment
• Increase their
offerings in
Packaged Water
segment
Threats
• Water usage
controversy
• Packaging
Controversy

19. RECOMMENDATIONS
• New bottle design to attract the crowd
• New & Improved Advertisements plan.
• Product Innovation & diversification- Coca
Cola Tea
• Introduction of products in food segment.
• Improving their water management system to
avoid further criticism.
• Campaigns for improving company’s image-
Green Logo & Public Safety

20. THANK YOU