Marketing Presentation

1. Joseph D’Elia
Warren DeRevere
Laura Louriero
The
Company

2. Coca-Cola
The Global Drink

3. • Coca-Cola was founded in
1886 by John Stith Pemberton
• World’s largest distributor,
manufacturer, and marketer of
non-alcoholic beverage
concentrates and syrups
• Divided into two parts: the
Coca-Cola Company and its
bottlers
•Coca-Cola manufactures
concentrates and syrups for its
beverages, which it then sells to
bottlers for packaging and
distribution

4. • Consists of a global workforce
of over 90,000 and it earned
$31.9 billion in revenues in
2008
• The Coca-Cola Company sells
over 400 different brands that
produce over 3000 different
products, while operating in
over 200 countries

5. • Statistics show that the Coca-Cola Company has
continued to grow on a yearly basis
Net Sales

6. • An important aspect of this statistic is that
Coca-Cola was able to increase their number
of units sold during the recession from 22.7
billion to 23.7 billion
Units Sold (in billions)

7. Cash Dividends
• Ability to distribute cash dividends
over a 5 year span indicates that they
belong to a mature market

8. • Carbonated soft drinks make
up 78% of the total volume of
beverages sold in 2008
•Beverages that are labeled
with the famous Coke
trademark make up 82% of the
total volume of carbonated soft
drinks sold
• Also offers non-carbonated
drinks such as Dasani bottled
water, Glaceau Vitamin Water,
POWERade sports drinks,
Nestea, Minute Maid, and
Aquarius sports drinks

9. • The Coca-Cola Company’s
most notable product is the soft
drink Coca-Cola
• Original promotion for Coke
included giving away
thousands of free drink
coupons and placing posters
around the city of Atlanta
• Coke was first advertised as a
remedy for headaches and
exhaustion
• First bottle of Coke was sold
on May 8, 1886 in Atlanta,
Georgia

10. • Coca-Cola sold only 25 bottles
in the first year
• Nowadays, they sell over one
billion bottles per day
• In July 1985, Coke was the first
soft drink to be enjoyed in outer
space on the space shuttle
Challenger

11. • Coca-Cola is recognized by
94% of the world’s population
• Approximately 10,450 Coca-
Cola brand drinks are
consumed around the world
each second of every day
• Coke advertises 200 in
countries around the world.
• Earn approximately 75% of
their sales from outside the
United States

12. • Due to the 2008 Financial
Crisis, the entire world has
suffered from the recession’s
ramifications
• The company has positioned
itself well enough in
international markets and has
vital acquisitions that will help
withstand the consequences of
the recession
• KO’s market share of 42.8% in
2007 is the majority in
comparison to the second
highest market share of 31.1%
held by PepsiCo, its main
competitor

13. • 1963 “Things Go Better With
Coke.”
•1970 “It’s the Real Thing”
•1975 “Look Up America”
•1979 “Have a Coke and a
Smile”
•1982 “Coke Is It!”
•1987 “You Can’t Beat the Real
Thing”
•1993 “Always Coca-Cola”
http://www2.coca-
cola.com/presscenter/av_adve
rtising.html

14. • Recent recession has put a damper on
mostly everyone’s ability to buy unnecessary
goods.
• Luckily for Coke, it is a highly popular
beverage that customers choose to drink
• Despite the popularity Coca-Cola, The Coca-
Cola Company is very sensitive to changes in
demand

15. • As a result of the current
economic environment, the
Coca-Cola Company posted a
3% decrease in revenues in the
first quarter of 2009 compared
to the first quarter of 2008.
• Net income also fell 10%.
Coca-Cola was especially hurt
by the dollars’ strengthening
against the euro, Brazilian real,
Mexican Peso, and South
African rand.
• The Coca-Cola Company is
based in the US, but around
75% of the operating income is
from outside the United States.

16. • Desire for more healthy
products has had a negative
impact on demand for
carbonated soft drinks
• in 2006 various state public
schools banned the sale of
carbonated soft drinks on their
grounds
• Another major regulation that
greatly affected KO was the
proposition by the Center for
Science and Public Interest that
a warning label be placed on
beverages containing more
than 13g of sugar per 12-oz
serving.

17. • Focusing on and showwing
more interest in their network
of bottlers
• Integrating production and
distribution may allow the
company to respond to the
changing market more quickly

18. • Must continue its successful
promotion of products such a
VitaminWater
• Most significant innovation
was the creation of Coke Zero
• Coke Zero is ultimately the
calorie free version of Coca-
Cola
• Coke Zero alone accounted
for almost on third of the total
growth for beverages with the
famous Coca-Cola trademark.

19. • New technology will allow
their bottles to be ice-cold
• Focusing on technology
concerning beverage
dispensing
•Implementing new variety at a
quick pace
• “Fountain technology that can
dispense more than 100
branded sparkling and still
beverages from a single
freestanding unit”

20.  Entered market in 1898
 Dominates 30.8% of Cola market (Coke
dominates 42.7%
 Earned $35,137 million in revenues in 2006

21.  Large free cash flow
Strong market position
Successful marketing campaigns
 Takes higher risks with its marketing and
advertisements
 Renamed itself as Pecsi in Argentina
 Internationally known and popular
 Targets segments effectively
SWOT

22.  Health concerns
Caffeine and sugar
Yellow Teeth
 70% of its revenues concentrated in North
America
 Health craze- staying fit
Water, juice, diet beverages
SWOT

23.  Constant need of beverages
 Expand to foreign countries
Utilizes globalization
 “Think globally, act locally”
 African Americans 1947- untapped
niche market (not global, but targeted
specifically)
 Brand recognition
SWOT

24.  Economic decline
Recession
 Substitutes of the carbonated soft drink
market
Water

25.  Minor direct competitor
 Franchise from Royal Crown Cola
International
 Popular in Philippines in 1970s, then
dissapeared
 Relaunched
“Smooth, laid back” image
 3rd
largest selling Cola brand

26.  Price
 Affordability
 Concentrated brand identity from a focus on
mass marketing
 Growing availability
 Increasing number of plants
 Creative marketing ideas
 Contests
 Sponsoring organizations
SWOT

27.  Limited to lower class market
 Marketing and advertising not pushed
 Not available on fast-food chains
Prevents the word from spreading
SWOT

28.  Foreign markets
China
 Economic crisis
Decreased spending
 Popularity and brand loyalty of Coke
and Pepsi brand
SWOT

29.  Water, juice, milk, alcoholic beverages
etc
 Widely available
 Varying prices
 Healthier substitutes

30.  Switched from mass marketing to
target marketing
Segregated like-minded
individuals with same need and
then targeted them
 Specific targeting people boosts sales
and increases revenues

31.  Targets almost all sectors of society
 Rich
 Poor
 Boy
 Girl
 Young
 Old
 Caters to all these sectors by tweaking its
campaigns in order to cater to each
 Other countries: England, Japan, etc.

32.  Primary age group: 13 – 24
Coke appears hip and cool
Advertised on TV
Famous celebrities used to promote
Vivid ads & catchy phrases
 Secondary age group: 10-39

33.  Coke has been successful in
targeting these markets
94% of the world recognize brand
Never had to revamp its logo since
it first came out in 1886
Never redesigned its packaging
completely

34.  Product
 Price
 Promotion
 Place

35.  World's #1 non-alcoholic beverage distributor
 Most diverse product mix in the industry
 Has grown to over 3,000 products spanning
across over 400 brands
 78% of sales volume is carbonated soft drinks

36.  Price stability- Important to retain consumers.
Must remain at the price level of competitors.
 In 1886, Coca Cola was sold at $.05 per glass.
 Accounting for inflation, that equates to $1.18
in 2008.

37.  Advertising uses Memorable visual effects which stick
with consumers
 Use of celebrity endorsements
 Target audience - "emerging youth"
 "Cola Wars"

38.  Coca Cola products are now sold in over 200
countries worldwide
 Vending Machines enhance availability. Coca
Cola teamed up with Sapient to form new
technology
 Competitive advantage. Coca Cola has
contractual agreements with fast food giants:
McDonalds, Burger King, and Subway, among
others. These chains exclusively sell Coca Cola
products. Coca Cola controls over two thirds
of this segment.

39.  In addition to contractual agreements with fast
food powerhouses, Coca-Cola has multi million
dollar contracts with over 70% of the nation’s
universities.

40.  Company looks to expand into new markets
and further develop existing ones
 Shift from mass marketing to localized, "one-on-
one" marketing
 Expand portfolio of products. Further develop
presence in growing segments (Ex- Water, Juice,
Tea, etc)
 Main Focus: "To become the number one non-
alcoholic beverage business in every market
category of value."