The Coca-Cola Company was founded in 1886 and is the world's largest beverage company. It manufactures concentrates and syrups that are then sold to bottlers who package and distribute over 400 brands of drinks in over 200 countries. While carbonated soft drinks make up most sales, the company has expanded its portfolio to include water, juice, tea, and sports drinks. Coca-Cola has maintained its dominance through effective marketing campaigns, strategic partnerships and acquisitions, and a focus on international growth.

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."