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FINAL PROJECT MID TERM

L. AMAIRANI AGUILAR MURILLO

JESSICA CARVAJAL ZAMUDIO

MARIA FERNANDA MUNIVE GARCIA

CRN: 91331

SANTIAGO MACIP ORDUÑA

CRN: 91329

02 DE OCTUBRE DEL 2021


HISTORY OF THE COMPANY

• The product that has given the world its most recognized flavor was born in Atlanta, Georgia, on May 8, 1886. Dr.
John Stith Pemberton, a local pharmacist, produced the syrup for Coca-Cola and walked down the street with a jug
of the new product to Jacobs' Pharmacy where it was tasted, pronounced “excellent” and put on sale for a nickel
the glass like a soda fountain drink. The carbonated water was mixed with the new syrup to produce a drink that
was immediately “Delicious and Refreshing”, characteristics that today continue to echo in all places where Coca-
Cola is enjoyed.
• Believing that “the two C's would look good in advertising,” Dr. Pemberton's partner and accountant, Frank M.
Robinson, suggested the name and wrote it the now-famous trademark "Coca-Cola" in his unique handwriting.

ITS STRATEGIC EVOLUTION AND ITS MAIN TYPE OF STRATEGIES.


Coca-Cola makes important modifications. Since 1960, when the first can was launched in the American market, the
company has introduced changes. Starting with slogans; "Life tastes better (2001), "The Coca-Cola side of life" (2006) or
the recent "Uncover happiness" (2010). Their bottles have also changed and adapted to the context. In every World Cup,
for example, the brand launches a special package. When the end of the year approaches there are also New Year's
editions or some that include Santa Claus in the cans. The logo of Coca-Cola has changed in the time giving a better and
minimalist image.

Talking about marketing strategies along the time served to position Coca-Cola as a unique and pioneering brand, many
of its strategies have been copied throughout history even laying the foundations of the strategies that work best today,
here are a list of some strategies that Coca-Cola did in the history.

1. Unique formula, never tested before


2. Timeless font logo
3. Distribute in a bottle you own
4. Keep your level high as a brand
5. Same price for 70 years
6. Pioneer brand in merchandising
7. Adopted a franchise model
CORPORATE PHILOSOPHY.

There are 4 pillars that make up the philosophy of a company: the mission, vision, values, and goals of a corporation.
• MISSION: “Refresh the world in body, mind, and spirit. Inspire moments of optimism and happiness through our
brands and actions, to create value and leave our mark in each of the places where we operate.”
• VISION: "To be a highly effective company that reacts quickly to any unforeseen event.”
• GOAL OF CORPOTATION: The goal of The Coca-Cola Company is 'to be the world's leading provider of branded
beverage solutions, to deliver consistent and profitable growth, and to have the highest quality products and
processes.
• VALUES: Coca Cola to become one of the most important and largest companies in the world based each of its
actions on the following values:
• Integrity
• Quality
• Responsibility
• Leadership
• Collaboration
• Diversity
• Passion

DISTINCTIVE SKILL OR COMPETITIVE ADVANTAGE.


Coca Cola has always been a brand with a very clear mission: “To refresh the world, to inspire moments of optimism and
happiness, and to create value and make a difference.”
Starting with a unique history: Atlanta Georgia 1886, a pharmacist Dr. John S. Pemberton originally intended to mix
ingredients: kola nuts (caffeine), coca leaves (cocaine), and syrup, as a patent medicine.
Instead of that he ended up creating the most epic beverage of its time: Coca Cola.
Since the very beginning the distinctive skill of this company has been its UNIQUE flavor and irreplaceable brand.
Their competitive advantage lays on the idea of refreshing the world, nowadays, not just with coca cola flavor but with
many more products that take part of its costumers’ lives.
The fact that Coca Cola, after all these years continues in the industry is much more than just its products.
It must be its very valuable and epic marketing strategy, and therefore they had been for so long on its costumers’
minds. We all have seen at least once a Coca Cola advertisement, and they are so well done that stat for long in your
mind and makes you want the product.
Another aspect of its competitive advantage is that Coca Cola is the best company talking about strong brand image,
and they’ve had maintained it for over the years, any people, at almost any part of the world knows at least one product of
the company, like it and consume it periodically.
Additionally, with a portfolio of ownership or licenses in over 500 brands of sparkling and still beverages, Coca-Cola
manages six main operational groups which are diversified into the following segments:

Europe, Middle East, and Africa – Sales: 29% and Profit: 7.21%
Asia Pacific – Sales: 28% and Profit: 4.92%
North America – Sales: 23% and Profit: 4.30%
Latin America – Sales: 20% and Profit: 3.78%
Corporate – Sales: 14% and Profit: 0.07%
Bottling Investments Operating Segment: – Sales: -16% and Profit: -3.70% (The Coca-Cola Company, 2017).

Other very important aspect and distinctive skill that puts the company over others is its distribution system, we’ve been
talking about the diversification of its products, but the key factor is that Coca Cola has managed its distribution system
like no other company and have made it a global business. With over 500 different products Coca Cola has been able to
build an infrastructure system that spans over 200 markets all over the world. They have a unique and peculiar logistic
system to distribute their products in almost any space in the planet. And the have made it very difficult to other companies
to compete with it. With the ‘one stop shops’ they make it easy to people to get their products easily. The advantage they
take and the strategy that has to do with it its that they distribute fridges to customers so that they are able to store their
products. The fridge is given free of charge so that retailers have no excuse for cost implications.
Last but not least, we need to talk about its packaging, Coca Cola its shape was first registered as Coca-Cola bottle.
Packaging draws the attention of the customer and justifies the price and value for the customer. Coca-Cola Company has
used a unique and identifiable packaging technique to target the customers. With special editions, different bottles, and
prices they make the very best strategy to attract their costumers and gain market. That is why Coca Cola is a unique
company, with so much history and presence in the world.

You can find a Coca Cola Company product almost anywhere.

Unique marketing strategies

Coca Cola adapts its advertisements to its time.


VRIO Analysis:
Valuable:
is the capability/ resource competitively valuable?
 Global distribution network
 Large product range
 Skilled human resources
 Marketing skills and expenses
 Secret formula
 Brand image
 Research and development:

Rare:
 Global distribution network: Possessed by only a few other firms in the soda industry.
 Large product range: Not absolutely rare, Pepsi and Dr Pepper Snapple also deal in a large product range.
 Skilled human resources: Yes, Coca Cola is ahead of all the other companies in the soda industry.
 Marketing skills and expenses: Coca Cola’s marketing expenses are around $4 billion which is far higher than that
of its competitors.
 Secret formula: Rare, however, Pepsi and Dr Pepper Snapple also serve unique flavours. Still, the
 differentiated flavour of Coca Cola gives the company an edge in terms of competition.
 Brand image: Yes, it is not easy to build a strong brand image like Coca Cola.
 Research and development: Yes, but Pepsi too places heavy focus on R&D.

Imitability:
 Global distribution network
 Large product range
 Skilled human resources
 Marketing skills and expenses
 Secret formula: not possible to imitate
 Brand image: Not possible to imitate. However, a competitor’s strong brand image can be a threat
 Research and development: Not inimitable because other firms too invest in R&D

Organization: firm’s policies and procedures are properly organized to help it exploit its valuable, are and
inimitable resources.
 Global distribution network
 Large product range
 Skilled human resources
 Marketing skills and expenses
 Secret formula
 Brand image
 Research and development

POSITIONING MAP ACCORDING TO COMPETITORS.


PESTLE ANALYSIS.

P E S
political economic social
Coca Cola retains all rights related to its It is in the top 10 of the main beverage According to the thinking of consumers, the
business, including past and future companies worldwide. positioning of the company's products is as
products developed with a patented (Evidence no. 2) shown in the graph. (Evidence no. 5)
process.

Companies that do not meet government Coca-Cola is the brand most consumed by During 2020, it was estimated that between
standards are subject to fines. CocaCola Latin Americans, as 8 of the 14 countries in 8 and 26 percent of the usual spending of
is also subject to the Occupational Health the region choose it and acquire it 24.8 Mexicans was allocated to products
and Safety Law and environmental times more compared to 12.3 times considered healthy, characterized by having
regulation worldwide. Coca Cola was ranked in the first less sugar in the daily diet.
local, state, federal and foreign. place of the most chosen brands at the The company did not take long to present
national level according to the edition of the the "sugarfree Coca-Cola" , which is
Brand Footprint ranking carried out by the accompanied by the new visual identity.
consulting firm Kantar.
(Evidence no.3)

Mexico imposes a consumption tax of Consolidated total revenues decreased It is known that not all people lead the same
Ps.1.2616 per liter on the production, sale 2.7% reaching Ps. 492,966 million in 2020 lifestyle and less nutritional, that is, not all
and import of beverages with added compared to Ps. 506,711 million in 2019. people consume soft drinks, or carbonated
sugar. Coca-Cola FEMSA's total revenues drinks such as what coca cola handles, but
Panama imposes a 5.0% consumption decreased 5.6% to Ps. 183,615 million, as the company is well diversified they have
tax on non-carbonated beverages with impacted by an unfavorable sales mix effect a wide range of products such as energy
more than 7.5 grams of sugar or any and by the negative translation effect drinks juices among others
caloric sweetener per 100 ml, whether resulting from the depreciation of all Coca-
imported or locally produced. Cola FEMSA operating currencies in South
Among other taxes imposed by different America compared to the Mexican peso,
countries. mainly driven by an unfavorable translation
(Evidence no. 1) effect of 14.5% of the Brazilian Real.
(Evidence no.4)

The Food and Drug Administration (FDA) Coca Cola products represent more than Coca Cola develops differents remote
considers non-alcoholic beverages 70% of the national consumption of activities in support of the quality of life of
such as Coca-Cola and within the food beverages the people and communities. Some of the
category. The government regulates the sugary bottled. online activities were aimed at reinforcing
procedure the education, training and professional
manufacturing of these products. development of children and young people
in Mexico through the EmploLab
employment laboratory. They also
conducted several online training sessions
with volunteers from Colombia, who taught
some communities how to plant urban
gardens and become self-sustaining. And
also organized a toy donation campaign.
T E L
technological environment legal

The company strategy is to build a winning Coca-Cola European Partners (CCEP) will Due to the modification to the Official Mexican
portfolio for any occasion, focused on the accelerate the decarbonisation of its Standard 051, on the labeling of food and
client, capturing new occasions and business by reducing greenhouse gas non-alcoholic beverages, Coca-Cola had to
consumer preferences through innovation; (GHG) emissions throughout its value add as a warning the stamps of: "excess
and consolidating the market leadership in chain -including Scope 1, 2 and 3- calories" and "excess sugars", as well as that
emerging beverage categories (isotonic, emissions by 30% by 2030 (compared to "contains sweeteners, not recommended in
nutritional and energy) and always 2019) * and sets the path to become a children "and" contains caffeine, avoid in
exploring new categories in a disciplined Zero Emissions company by 2040, in line children "
manner. Coca Cola seeks to increase the with the Paris agreement to limit global
percentage of brands that has that are low warming to 1.5˚C.
in sugar or without sugar

In 2020, Coca Cola completed the To become a low-carbon company, Coca These General Conditions regulate the
deployment of Victoria, that is a Cola took the approach of the Science provision of the Service by FEMSA (coca)
prescriptive analytics engine for machine Based Targets (SBTi) initiative, aligned and the use of the Service by the Users.
learning. Victoria allows them to with the goals of the 2015 Paris FEMSA(coca) reserves the right to unilaterally
significantly improve the accuracy of their Agreement, which proposes limiting global modify, at any time and without prior notice,
demand projections, in addition to warming to less than 2 ° C per above pre- the provision and configuration of the Service,
generating savings in inventory and industrial levels. In this way, in 2020 Coca as well as the conditions required to use the
distribution. In just four weeks, Victoria Cola became the first Mexican company, Service.
understood and adjusted to their demand and the third in Latin America, to obtain
projections derived from the impact of official approval from SBTi for their
COVID-19. emission reduction targets.

The analytical commercial platform of Coca In 2020, the company use an average of Export control laws in the United States
Cola, which already operates in Mexico, 29% recycled content in PET packaging, prohibit the export of certain technical
Colombia, and Brazil, gives greater value exceeding their goal of 25%. It is important information and software to some countries.
to their operations by improving its ability to to mention that today Coca Cola offer to In no case, the software found on the Site
determine prices, portfolio, optimize their customers a bottle made of 100% may be downloaded or exported:
promotions, demand projections and recycled resin for the non-returnable PET * to (or for a citizen or resident of) Cuba,
market segmentation. To achieve this, the presentations of water brands. Consistent North Korea, Iran, Sudan, Syria, or any other
strategy they use focuses on taking with their efficient resource management country to which the United States applies
advantage of digital facilitators with cutting- and packaging material optimization, Coca trade embargoes,
edge technology to improve the experience Cola continue to employ a comprehensive * for anyone on the Treasury Department's
of their clients when they contact them and lightweight packaging strategy for the PET specially designated persons list or the US
interact with them, strengthening the presentations and lids. Department of Commerce's order denial list.
market presence and taking advantage of The Coca-Cola Company does not authorize
integrated platforms and the information in the download or export of any software or
real time. technical information from the Site to any
jurisdiction prohibited by the export laws of
the United States or to anyone listed above.

Coca Cola completed and accelerated the Between 2010 and 2020, Coca Cola Coca Cola is obliged to take care of the
deployment of a chatbot to accept digital increased their efficiency in the use of environment since they are the largest bottler
orders from 200,000 active customers at water 24%, this represented a surprising even in Mexico and with the global initiative
their operations in Brazil and 70,000 reduction that allowed them to register an #MundoSinResiduos, in 2030 we will collect
customers in Mexico. This comprehensive average of 1.49 liters of water per liter of and recycle the equivalent of 100% of our
digital platform complements personal drink produced, in addition to reducing their packaging.In fact, the IMCC employs around
presale visits, offering a 24/7 customer absolute consumption by 30.6%. Currently, 1,200 PET consolidators to transport the
service window and considerably reducing the return of the company to their material from every corner of the country to
the cost of service. communities and the environment is more one of the company's 8 collection centers,
than 100% of the water they use in the which are located in: Monterrey, Guadalajara,
production of their beverages in Argentina, Mérida, Ecatepec, Toluca, Querétaro, San
Brazil, Central America, Colombia, and Luis Potosí and Acapulco. IMCC is the largest
Mexico. food grade PET recycler in the country thanks
to our PetStar and IMER plants, as they have
the capacity to process 85,000 tons each
year, which is equivalent to 4,000 million
bottles, with which the Azteca Stadium would
be filled 3 times

Evidences: Hard Data.

1.

2.
3.

4.
5.

Talking about two of its competitors, one of the biggest is Pepsi, PepsiCo is an American multinational company dedicated
to the manufacture, marketing, and distribution of beverages and snacks. It is based in Purchase, New York, United
States. PepsiCo was formed in 1965 from the merger of the Pepsi-Cola Company and Frito-Lay.
And another of its competitors is Nestle, Nestlé S.A. is a Swiss multinational food and beverage company based in Vevey,
Vaud, Switzerland. They produce, market, and export more than 1,850 products divided into 80 brands distributed in 12
categories: Dairy, coffee, beverage, culinary, confectionery, and ice cream.
Nowadays, Coca-Cola consolidated total revenues decreased 2.7% reaching Ps. 492,966 million in 2020 compared to Ps.
506,711 million in 2019. Coca-Cola FEMSA's total revenues decreased 5.6% to Ps. 183,615 million, impacted by an
unfavorable sales mix effect and by the negative translation effect resulting from the depreciation of all of Coca-Cola
FEMSA's operating currencies. Consolidated gross profit decreased 1.0% to Ps. 189,653 million in 2020 compared to Ps.
191,481 million in 2019 and consolidated expenses increased. Currently, the price of its shares is: KO (BMV) MXN
1,096.35 -1.15 (-0.10%).

Unlike its closest competitor Pepsi that, it reduced its net profit by 2.6% in 2020 to $ 7.12 billion, even though sales
experienced a 4.8% improvement to $ 70.372 million. The increase in administrative expenses reduced operating profit
2% to $ 10.08 billion for the year. Currently the price of its shares is: PEP (BMV) MXN 3,150.00 +56.25 (+1.82%)

On the other hand, Nestlé's organic growth reached 3.6%, with a real internal growth (RIG) of 3.2% and prices of 0.4%.
Growth was supported by the big push from the Americas, Purina PetCare, and Nestlé Health Science.
The exchange rate reduced sales by 7.9%, due to the continued appreciation of the Swiss franc against most currencies.
Divestments had a negative impact of 4.6%. Consequently, total reported sales reflected a reduction of 8.9% to reach 84.3
billion Swiss francs (CHF) (2019: 92.6 billion Swiss francs). Currently, the price of its shares is: NESNN (BMV) MXN
2,499.14 +59.05 (+2.42%)

The 3 companies had problems due to the pandemic and exchange rates, but some of their strategic movements to
continue in the competition are:

Coca-Cola strategies:
The strategy for segmented revenue growth across your businesses in a way that varies by market type, and we align the
incentives for our employees respectively.
In new markets, they are primarily focused on increasing volume, maintaining the affordability of our beverages, and
strengthening the foundation for our future success. In developing markets, a balance is struck between volume and
prices. In developed markets, we rely more on price/ mix and improve profitability by offering smaller containers and more
premium packaging, such as glass and aluminum bottles. For the company to be profitable it is necessary to invest
constantly, and it was decided to invest in more and better marketing for our brands, increasing both the quantify and the
quality of our advertising. Spending on media advertising has expanded by more than $250 million and we use these
funds to share more impactful and dynamic ads.
At the same time, it invested in a wide portfolio of beverages. We enhance our position in the energy drinks category with
a new strategic alliance with monster beverage corporation. we invested in brands like Suja, a special line of cold- pressed
organic juices, and agreed to buy china green culiangwang a brand of plant- based protein drinks. We also expanded the
distribution of ultra- filtered fair life milk in the United States nationwide

Pepsi strategies:
In the financial report for the second quarter of the year, the brand claimed to have adapted to the new market demands
with the use of better ingredients for its sandwiches and soft drinks, where the focus on a healthier consumption was an
important part of the equation.
Added to this was the acquisition of new firms and the launch of new products with the aim of reaching new potential
markets. Thus, Bare, a snack maker, joined the family of the company, a movement that was accompanied by the launch
of Pepsi Zero Sugar, mineral waters and Pure Leaf iced tea.
All these movements were accompanied by new plans to invest more in advertising, increase production capacity, improve
its supply chain as well as focus more on healthy snacks and beverages.
All of this caused Pepsi to exceed the expectations of even analysts in the results presented in its earnings report.

Nestlé strategies:
The first step for Nestlé was to identify the impact on different foods in real time, performing a segmentation by region and
states of the country. Thus, it would be able to develop a much more effective strategy, managing to adapt to the needs of
each type of consumer.

According to data obtained from Google Trends, interest in superfoods such as chia and oats exhibited an explosive rise
in searches carried out by Mexicans since 2014, showing a stable behavior over time. Something similar happens with the
consultations related to habits oriented to a healthier life. Thus, for example, the frequency of searches related to the term
organic has shown an upward trend in Mexico during the last five years. Key clues for Gerber when considering
reorienting their product strategy, "it was stated at thinkwithgoogle.com.
So, Nestlé decided to invest in the innovation of its products and thus creating new organic lines of its products.
Despite the significant challenges that arose from the COVID-19 pandemic, 2020 was a year of resilience and ongoing
transformation for Coca-Cola FEMSA. We not only face the pandemic with operational excellence, but we also continue to
aggressively advance on all strategic and digital fronts.

The subsidiary company Coca-Cola in accordance with the Mexican Economic Development, S.A.B. de C.V. (“FEMSA”),
has a participation of 47.2% of the capital stock and 56% of the shares with voting rights and The Coca-Cola Company
(“TCCC”), which indirectly owns 27.8% of the capital stock and 32.9% of shares with voting rights. In addition, the shares
representing 15.6% of Coca-Cola FEMSA's capital stock are listed on the Mexican Stock Exchange.

In 2020, more than US $ 7.2 billion in payments to suppliers, employee salaries and benefits,
capital investments in long-term assets, dividends paid to shareholders, taxes paid to
governments and community investment were distributed in the economies where it operates.
and donations.

Bearing in mind that the objective of Coca-Cola's market positioning is universal, we can select
some that are key, such as: in line with this Marketing91 article, Coca-Cola is a brand known
throughout the world that is directs customers of all ages, with targets of all kinds: from anyone
who wants a refreshing drink to athletes who drink Aquarius or the Powerade isotonic drink
Not to mention that it is difficult to find a corner of the world where you do not drink Coca-Cola or
some other of its soft drinks. Obviously there is, but the brand has a presence in practically
every possible market that we can imagine. Since the target plan was for Coca-Cola's target
market to be the entire world, they have succeeded.
It is in the top 10 of the main beverage companies worldwide and is the brand most consumed by Latin Americans, as 8 of
the 14 countries in the region choose it and acquire it 24.8 times more compared to 12.3 times worldwide. Coca Cola was
ranked in the first place of the most chosen brands at the national level according to the edition of the Brand Footprint
ranking carried out by the consulting firm Kantar.
RESOURCES & CAPABILITIES.

It is essential for any company to make an internal analysis which is an examination and an evaluation of the internal
aspects of the company, such as their processes, company’s strengths, but most of all and an essential aspect are the
resources and capabilities a company has.
First of all we need to clearly understand the difference between them to establish a well fundamented analysis.
Resources are absolutely everything a company counts on, what they have to compete. And they are divided in: tangible
such as machinery, offices, etc; and intangible such as skills, reputation, customer’s fidelity, etc. And also human
resources, which is related to how well prepared are the employees. Resources then, are all that a company owns.
On the other hand the capabilities are what a company CAN actually do with those resources. And how a company
competes with its competitors making use of those resources. How they apply resources in order to be better than their
competitors.

Talking about COCA - COLA COMPANY, there are plenty of resources and capabilities which we will list below.

Resources:

o Strong financial resources.

o Modern offices.
o Machinery.

o Transport.

o Global presence.

o Secret recipe.

o Workforce. (Up to 200,000 worldwide)

o Tech resources.

o Brand reputation.

o Costumer’s fidelity.

o Hybrid engine trucks.

o Supply chain.

o Bottling and distribution network

o Variety of products.

o Strong and recognized brand.

o Product range and quality.


Capabilities:
Coca cola can distribute their products all over the world, as they have a presence in 24,000,000 of pop up stores.

 Develop their market size in almost any region.

 Adapt their products to every region.

 Marketing strategies all over the world.

 Marketing activations.

 Distribute their products in almost every restaurant, store, and events all over the world.

 Positive working environment.

 Acquisition of new talent.

 Brand value.

 Value chain.

 Operating in the global economy.

 Commercial leadership.

 Franchise leadership.
CROSSED SWOT.
CROSSED STRENGTHS(S) WEAKNESSES (W)
SWOT
Greater market penetration: The Coca- Poor product diversification: Coca-Cola
Cola Company is the largest non- has focused on a large beverage portfolio;
alcoholic beverage company in the world. however, it has not explored other
It serves 1.9 billion of the 59 billion drinks segments such as snacks as did its
of all kinds consumed daily around the competitor Pepsi, which obtains a large
world, which is equivalent to 3.2%. The revenue stream in one market. in which
company owns, distributes, and sells Coca-Cola is not present.
more than 600 non-alcoholic brands in
more than 200 countries. Dependence on unhealthy beverages:
Today, obesity is a problem that affects
Scale economics: Economies of scale many people, this has led to changes in
allow the company to spread its fixed the business environment and therefore
costs over hundreds of brands and people are taking measures to fight
billions of drinks served, making the obesity. Carbonated beverages are one of
production of each drink as cheap as the main sources of calorie intake and
possible. Coca-Cola is the largest manufacturer of
carbonated beverages. The conflict is that
Power over buyers: Unlike some smaller the consumption of carbonated beverages
competitors, the Coca-Cola brand and the in developed countries will decrease
company's other flagship beverages have because people will prefer healthier
great brand recognition around the world. options.
The company can influence consumer
purchasing decisions through the power Bad water management: Several groups
of its brands and massive marketing have sued the company for its high-water
campaigns easier than its rivals. consumption even in regions where this
vital liquid is scarce. At the same time,
Diversified product portfolio: they own some people have accused Coca-Cola of
and distributes more than 600 different mixing pesticides in water to remove
brands, making its beverage portfolio the contaminants. Therefore, Coca-Cola must
most extensive in the entire industry. The improve its water management policies.
company offers drinks for all tastes in 7
drink categories: carbonated drinks, pure
bottled water, juices and natural juices,
sport drinks, tea and coffee, energy
drinks and shots, alternative drinks.

Great marketing strategies: Coca-Cola


always tries to win the hearts of people;
Coca-Cola advertising is aimed at people
of all ages which has led to winning the
loyalty of its consumers.
OPPORTUNITIES(O) STRATEGIES (SO) STRATEGIES (WO)

Diversification: Diversification in the


The company already has the prestige - A great strategy for Coca-Cola
health and food markets will enhance and loyalty of the client, as well as the considering its weakness and
Coca-Cola's offering. This will also necessary resources to provide the client opportunities is to focus on
ensure that the company earns better with what they need. We believe that it is diversifying the best-selling products
revenue from existing customers by important to expand to various sectors of to create new products, that is,
cross selling its products. The supplythe food industry. With the marketing trying to launch its most famous
chain that distributes your beverages strategies that Coca-Cola has and the products but in a healthy line like
may also distribute snacks, so opportunity in the market to enter this that and promote them to reach new
distribution costs could be further market with both healthy foods and junk markets.
diluted. foods.
This strategy will allow Coca-Cola to
Improvements in the supply chain: spread its transportation costs even
The supply chain can be a real cost more, thus generating more profits.
sink, especially when transportation
prices rise. Coca-Cola's entire
business is based on transportation
and distribution. There is always
room for improvement in this area, so
The Coca-Cola Company must keep
a close eye on its supply chain and
continue to improve it to reduce
costs.

Marketing of the least sold


products: There are several
products in The Coca-Cola
Company's product portfolio that
have failed to find market
acceptance. The company needs to
focus on marketing these products. It
is understood that Coca-Cola has
invested a great deal of money in the
development and launch of these
products. Marketing and increased
sales of these products will help
increase the company's revenue.

THREATS STRATEGIES (ST) STRATEGIES (WT)

Competition with Pepsi: Coca-Cola Despite being a leader in the beverage Undoubtedly, a company cannot operate
could have become the only big industry, Coca-Cola has the threat of without raw materials, that is why it is
player and market leader had it not different competitors who steal part of the necessary for Coca-Cola to start reducing
been for Pepsi. The competition consumers from the market. We know water consumption and return to the
between these two brands is that Coca-Cola has a very broad product environment and to the communities the
immense. portfolio, however, those products that do same amount of water that they use to
not have great sales are forgotten. For produce their drinks, this to preserve and
Indirect competitors: Coffee chains this reason, Coca-Cola should start to conserve this resource for future
such as Starbucks or energy drinks make marketing strategies to promote generations. So, that they can return the
such as Red Bull or healthy drinks other beverages within its portfolio that water they use in their processes,
such as juices are on the rise, these are not as well-known as dairy, caffeine, replenishing and conserving the
companies are a healthy competition or energy drinks. By promoting these watersheds, they can create alliances with
to Coca-Cola carbonated beverages, drinks, you would be increasing your organizations and foundations that allow
therefore they affect their beverage sales and popularity, which would put you them to follow protocols where they can
market indirectly and they steal a above all the products offered in the replenish, reduce, and recycle water.
larger share of the market. market.

Supply of raw materials: Water is


the only threat to Coca-Cola. Coca-
Cola's weaknesses were the
suspected use of pesticides, or the
large amount of water consumed by
the company. However, the latent
threat is that water is becoming
increasingly scarce. With climate
change, entire regions in various
countries face water shortages, and
sooner or later someone will point out
the beverage companies. Therefore,
the water supply is an ax that can cut
Coca-Cola's head at any moment.

Undoubtedly, we can see that there are more strengths and aspects in its favor that the company has than against. Coca-
Cola is a giant in the beverage industry with more than 154 leading brands and with more than 1,352 presentations of its
products in the market. The Coca-Cola Company worldwide offers profitability, value, and confidence to its investors, while
adding value to all its stakeholders. It is a company that has done an incredible job in managing its brand, creating value
and monitoring strategies that has guaranteed the loyalty of millions of people. Despite this, there are some things that the
company can improve, and it is important that it maintains a constant internal and external analysis to stay as a leader and
that they take advantage of their environment, capacities, opportunities to continue improving.

VALUE CHAIN.

Below we try to capture all the points that are part of this Value Chain topic focused on a company as important as The
CocaCola Company, this company can give us a general idea of how a Value Chain works in a company at an
international level. The Value Chain day by day seems to acquire greater importance in the labor field.
It is important to be clear from the beginning with keywords that describe the product or service. Also, to have a business
strategy that will maximize demand by optimally configuring the supply. Without saying that in this way the company's
strategy for each customer segment will materialize, describing the unique combination of product, price, service, and
image. Likewise, they could offer several related or independent value propositions, aimed at one or more groups of target
customers and offer a solution to consumers' problems and satisfy their needs.

COMPETITIVE PROFILE MATRIX.


GENERIC STRATEGIES.

The Coca-Cola Company's main competitors are: PepsiCo, Dr Pepper Inc., Suntory Beverage & Food Limited and
Unilever. It competes against numerous regional and local companies and, increasingly, against smaller companies that
develop micro-brands. On the other hand, the competitive strengths of The Coca-Cola Company include, according to the
company itself, leading brands with high levels of consumer acceptance; a worldwide network of bottlers and distributors
of the company's products; sophisticated marketing capabilities; and a talented group of dedicated associates.

Conversely, the competitive challenges for The Coca-Cola Company include strong competition in all geographic regions;
in many countries, a concentrated retail sector with powerful buyers able to freely choose between company products,
products from competitive beverage suppliers, and own-label or retail-owned beverage brands.
The Peer Group Index is a group of self-built companies that is included in the Dow Jones Food & Beverage Index and the
Dow Jones Tobacco Index, from which The Coca-Cola Company has been excluded.

Coca-Cola Company's market share in the United States from 2004 to 2020
Market size:
This timeline depicts the market share of The Coca-Cola Company in the United States from 2004 to 2019. In 2019, Coca-
Cola's U.S. market share amounted to 43.7 percent.  Coca-Cola's brand value is estimated to be roughly over $80 billion
for the full 2020 fiscal year. Its market share, at least in the U.S. is almost 44%. 67 This is due to the company's
advertising budget. In North America, The Coca-Cola Company's flagship market, includes finished goods, juice, and
foodservice businesses. With over 370 million consumers, the region holds approximately $215 billion in industry value.

CONCLUSIONS:

In conclusion, what we can see that we learned is that this class helped us to define well short, medium, and long-term
strategies that do not help in making decisions, managing a company and recognizing weaknesses to work on strengths
as well. to work as a team with different people and to see beyond so that a company is more competitive.
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