POLITICAL FACTORS:

Coca-Cola are drinks that are under the category of non-alcoholic beverages of food and drugs
administration (FDA). The government have the control over the manufacturing procedure of
these products. Coca-Cola must comply in terms of regulation of the food and drugs
administration.

Some factors that affects the manufacturing of Coca-Cola Philippines is the changes in law and
regulations. After a successful implementation of the excise tax on sugar-sweetened beverages
(SSBs) under the Tax Reform for Acceleration and Inclusion (TRAIN) Law here in the
Philippines, the operation of Coca-Cola Philippines have been affected they had to reformulate
their drinks.

ECONOMIC FACTORS:

The COVID-19 pandemic has put millions of people worldwide out of work. Dole estimated that
around 5 million Filipinos will lose their jobs due to the pandemic. Due to this situation it may
affect the consumers’ behaviour. As many customers are losing their jobs they may become
practical and have financial limitation and reduce their consumption of products that are less
important just like soft drinks. Likewise, the rising cost of raw materials for example the price of
sugar and labour is another important factor affecting the company.

According to Undersecretary Dennis S. Mapa, Ph.D. (National Statistician and Civil Registrar
General), The Philippine Gross Domestic Product (GDP) posted a growth rate of -8.3 percent in
the fourth quarter of 2020, resulting in the -9.5 percent full-year growth rate for 2020. Despite
the challenges brought by the coronavirus disease 2019 (Covid-19) pandemic here in the
Philippines. The bottling company of Coca-Cola will still spend an additional P1.1 billion to
improve its operations in the country this year, bringing its total investment for 2020 to P4.7
billion despite of the pandemic.

SOCIAL FACTORS:

According to the recent survey of Manulife it shows that many Filipinos have adopted new
lifestyle habits under the COVID-19 pandemic. Because of this covid 19 pandemic more
Filipinos are becoming more health conscious than before and switching to a healthier lifestyle.
This means that more Filipinos are choosing water and energy drinks over sweetened beverages
or soft drinks because more Filipinos engaging in various fitness activities and sports to be
healthy. Filipinos are making healthier food and beverages choices and this may affect the sales
of Coca-Cola because of the decrease of demand.

TECHNOLOGICAL FACTORS:

Coca-Cola Philippines have is always been active in their company’s advertising, marketing, and
promotional programs to promote their product. Coca-Cola Philippines has a total of 4 million
followers in their Facebook account and many more millions in their other social media accounts
and they use these to advertise their product. Due to pandemic Coca-Cola PH has been using
digital technology not just to advertise their product but also to communicate with consumers,
partners and in operating the business virtually making their products available in online shops
just like in Shopee and Lazada. And still, Coca-Cola PH is still looking at more ways to digitize
the business.

Coca-Cola also loves to play with their packaging putting innovative programs like the “peel mo
panalo promo” that lets consumers unlock experiences and prizes by peeling the label and send
the code written with the used of their mobile phones.

ENVIRONMENT FACTOR:

Coca-Cola PH’s has a response about the issue that they are one of the leading suspects to plastic
waste here in the Philippines. Coca-Cola came up with a sustainable solution, innovating their
packaging from returnable glass, using clear PET plastic bottles because it has the highest
recyclability rate, and aluminium cans that are all 100% recyclable. According to Jonah De
Lumen-Pernia, Public Affairs and Sustainability Director of Coca-Cola Philippines, Coca-Cola is
globally committed to build a world without waste. They make partnership with Thailand-based
Indorama Ventures that is a global leader in recycling and green technologies. They establish the
PETValue facilities that will employ the safest and most advanced technologies to recycle and
process used PET plastic bottles

LEGAL FACTORS:

After imposing an enhance community quarantine on Luzon and placing he entire

country under state of calamity for six months due to covid-19 pandemic. Coca-Cola is
committed to their humanitarian pledge and help the Filipinos in this emergency period. Co-cola
PH put on hold all their commercial advertisements and to redirect their budget to help the front
liners and the most affected communities of covid-19. They distribute protective equipment,
foods, and beverages that would help the health workers, vulnerable families and also the small
retailers.

Due to covid-19 some companies and business are not allowed by the government to
operate have to stop their operation and production. But the Coca-Cola PH is one of the business
establishment categories who is allowed to operate. During the continuation of production Coca-
Cola PH, Coca-Cola focuses on the safety of everyone from their staff to the customers. They
ensure their product if free from virus by implementing additional cleaning and sanitization
routines. They prioritize the safety of production and distribution by following the protocols
given by the government and also, they reinforced hygiene and exposure guidelines with our
employees.
References:

(2020). How Coca-Cola company is responding to the coronavirus outbreak. Retrieve from
https://www.coca-colacompany.com/news/how-the-coca-cola-company-is-responding-to-
the-coronavirus-outbreak

Neo (2020). Going off-air for COVID-19: Coca-Cola Philippines cancels all commercial
advertising. Retrieve from https://www.foodnavigator-
asia.com/Article/2020/03/31/Going-off-air-for-COVID-19-Coca-Cola-Philippines-
cancels-all-commercial-advertising

Reference:

Mapa (2021). Philippine GDP posts -8.3 percent in the fourth Quarter 2020; -9.5 percent for full-
year 2020. Retrieve from https://psa.gov.ph/national-accounts

Manulife (2020). COVID-19 worries in the Philippines prompt healthier lifestyle habits among
Filipinos – Manulife survey. Retrieve from
https://www.manulife.com.ph/en/individual/about-us/newsroom/latest-news/covid-19-
manulife-survey.html

Staff writer (2017). Filipinos making healthier food and beverage choices. Retrieve from
https://www.marketing-interactive.com/filipinos-making-healthier-food-and-beverage-
choices

Rodriguez (2020). The Fragile State of Unemployed Youth During Covid-19. Retrieve from
https://plan-international.org/blog/2020/06/fragile-state-unemployed-youth-during-covid-
19

(2019). ASEAN members cite TRAIN’s sweetened beverage tax as successful policy—DOF.
Retrieve from https://taxreform.dof.gov.ph/news_and_updates/asean-members-cite-
trains-sweetened-beverage-tax-as-successful-policy-dof/

Canivel (2020). Coke bottler investing P1.1B more despite pandemic. Retrieve from
https://business.inquirer.net/304138/coke-bottler-investing-p1-1b-more-despite-pandemic

Ocampo (2019). ‘Stabbed in the back,’ farmers slam Coca-Cola PH for local sugar snub.
Retrieve from https://business.inquirer.net/277836/stabbed-in-the-back-farmers-slam-
coca-cola-ph-for-local-sugar-snub

Fenol (2020). Pandemic 'accelerates' digitalization of Coca-Cola PH. Retrieve from

https://news.abs-cbn.com/business/08/31/20/pandemic-accelerates-digitalization-of-coca-
cola-ph
Manila standard (2020). Coca-Cola continues to lead sustainable solutions for plastic recovery
and recycling in the Philippines. Retrieve from
https://manilastandard.net/spotlight/337174/coca-cola-continues-to-lead-sustainable-
solutions-for-plastic-recovery-and-recycling-in-the-philippines.html

https://psa.gov.ph/national-accounts

https://www.manulife.com.ph/en/individual/about-us/newsroom/latest-news/covid-19-
manulife-survey.html

https://www.marketing-interactive.com/filipinos-making-healthier-food-and-beverage-choices

https://plan-international.org/blog/2020/06/fragile-state-unemployed-youth-during-covid-19

https://taxreform.dof.gov.ph/news_and_updates/asean-members-cite-trains-sweetened-
beverage-tax-as-successful-policy-dof/

https://business.inquirer.net/304138/coke-bottler-investing-p1-1b-more-despite-pandemic

https://business.inquirer.net/277836/stabbed-in-the-back-farmers-slam-coca-cola-ph-for-local-
sugar-snub
https://news.abs-cbn.com/business/08/31/20/pandemic-accelerates-digitalization-of-coca-
cola-ph

https://manilastandard.net/spotlight/337174/coca-cola-continues-to-lead-sustainable-
solutions-for-plastic-recovery-and-recycling-in-the-philippines.html