Coca Cola

PLAN
• History
• Coca cola’s vision
• Coca cola’s mission
• Objectives and goals
• Strategies and tactics
• Marketing Mix -4ps
• Swot analysis – SMART
• Recommendations
•
BRIEF HISTORY
• The drink Coca-Cola was originated in 1886 by an Atlanta
pharmacist, John S. Pemberton (1831–88), at his Pemberton
Chemical Company. His bookkeeper, Frank Robinson, chose
the name for the drink and penned it in the flowing script that
became the Coca-Cola trademark.
• New markets opened up for Coca-Cola in the early
1990s; the company began selling products in East
Germany in 1990 and in India in 1993. In 1992 the
company introduced its first bottle made partially
from recycled plastic—a major innovation in the
industry at the time.

SLOGAN
• The Coca-Cola Company announced strategic steps to reorganize and better
enable the Coca-Cola system to pursue its Beverages for Life strategy, with a
portfolio of drinks that are positioned to capture growth in a fast-changing
marketplace.
• The company is building a networked global organization, combining the
power of scale with the deep knowledge required to win locally. The company
 will create new operating units focused on regional and local execution that
will work closely with five marketing category leadership teams that span the
globe to rapidly scale ideas.
• This structure will be supported by the company’s newly created Platform
Services organization, which will provide global services and enhanced
expertise across a range of critical capabilities.

• Coca Cola's mission statement is “to refresh the world in mind,

body, and spirit, to inspire moments of optimism and happiness
through our brands and actions, and to create value and make
a difference.” Coca Cola is a company that focusses on leaving
a legacy wherever it operates.

is to craft the brands and choice of drinks that people love, to refresh them in
body & spirit. And done in ways that create a more sustainable business and
better shared future that makes a difference in people's lives, communities and
our planet

OBJECTIVES

• The main objectives for the Coca-Cola Company are to be

globally known as a business that conducts business
responsibility and ethically and to accelerate sustainable
growth to operate in tomorrow's world. By having these
objectives, it forms the foundation for companies in the
decision making process.
•
STRATEGIES AND TACTICS
 The Coca-Cola company aims to be globally known, they do this by targeting
different areas across the globe with different products, gaining their brand
name and popularity. All the bottling partners work closely with their customers
such as convenience stores, grocery stores, movie theaters and street vendors to
create and use localized strategies developed in partnership with the Company.
Their competition with other beverage companies are also narrowed down as
they own various brands that could be possible competition. For example, the
company sells Coke without the competition of other popular soft drink brands
like Sprite and Fanta because the company owns those brands as well. The
company often reviews and evaluates their business plans and performance to
improve their earnings and analyze their competitive position in the market.
They make decisions in realigning their business models to match the objectives
of the company by using strategies and tactics in the analysis of their
performance

THE MARKETING MIX (4PS), PLAN, AND STRATEGY OF

 .COCA-COLA
• Coca-Cola has five major categories for Beverages; Sparkling Soft Water,
Waters and Hydration, Juices, Dairy and Plant-based, Coffees, and Teas.
There are roughly 500 beverages that make up these categories—the most
popular are Coca-Cola, Sprite, Fanta, Dasani.
• Having many independent bottlers created several macros and macro-
economic challenges for the firm, as smaller independent bottlers may
face problems in continuing business when faced with economic hurdles.
The Company started its Bottling Investments Group, identifying
struggling franchisees, providing them with financial and institutional
support. 
FLEXIBLE PRICING STRATEGY
• Coca-Cola, in its marketing mix, follows a pricing strategy called price
discrimination. Price discrimination is a microeconomic pricing strategy
where identical or largely similar goods or services are sold at different
prices by the same provider in different markets. In general, an oligopoly
is a market characterized by a small number of firms that realize they are
interdependent in their pricing and output policies. The beverages market
is an oligopoly, with a small number of manufacturers and many
purchasers.

CREATIVE PROMOTIONAL STRATEGY

 • If we had to choose one brand that has always been consistent with its
promotions in marketing strategy, it is Coca-Cola. Never deviating from
the basics, Coke has always been consistent with its projection.
MARKETING MIX OF COCA-COLA – COCA-COLA
MARKETING MIX
 PRODUCT
 PLACE
 PROOTION
 PRICE

PRODUCTS IN THE MARKETING MIX OF COCA-COLA

• The Coca-Cola Company has a wide product range. It has more

than 500 sparkling and still brands and sells approximately 1.9
billion servings a day globally. It offers 80 drinks across 20
different brands in the UK. Coca-Cola Classic, Coca-Cola Zero
Sugar, Fanta, Fanta Zero, Sprite, Sprite Zero, Diet Coke, Dr
Pepper, Dr Pepper Zero, Powerade, Powerade Zero, Schweppes
Water, Schweppes Mixers, Schweppes Lemonade, and Oasis are
some of the popular products of Coca-Cola (The Coca-Cola
Company, 2020).
• Coca-Cola Company is one of the most valuable brands in the
world. Its products come in different sizes and shapes which help
customers choose the right amount of drink. All the bottles and
cans of Coca-Cola are 100% recyclable. Coca-Cola had 48.6% of
market share of carbonated beverages worldwide in 2015. The
company’s net revenue for the year 2018 was $31.9 billion
(Statista, 2019).
PRICE IN THE MARKETING MIX OF COCA-COLA
• There are a number of pricing policies available to business
marketers e.g. competitor pricing, discrimination pricing, value
pricing, cost-plus pricing, and, loss leader pricing. The biggest
rival of Coca-Cola worldwide is Pepsi. Both companies price their
products competitively. Therefore, it can be said that Coca-Cola’s
pricing policy is a competitor pricing.
• Some analysts would argue that the company also uses value
pricing as the prices of the Coca-Cola products are not so high
that the average customers cannot afford to buy. However, the
prices are not very cheap either which would have given the
customers an impression of low quality. Prices may vary country
 to country, and city to city. For example, the typical price of a
Coca-Cola drink (1.25L) is £1.00 (One pound) in many UK super
markets, while a 330ml can of Coca-Cola drink costs customers
70p (Seventy pence). The price of a 2 liters of Coca-Cola in New
York is $2.43 dollars. The price of a 2 litres of Coca-Cola is £1.79
in London, while it is slightly higher at Glasgow in Scotland.
PLACE IN THE MARKETING MIX OF COCA-COLA
• Place in the marketing mix of Coca-Cola refers to where the
company’s products are available and how they are made
available to the customers. Coca-Cola has developed an extensive
distribution network. The company’s distribution strategy is very
intensive as well. Therefore, customers find Coca-Coca products
available in almost all retail outlets and supermarkets across the
globe.While Coke’s ingredients are well-known, the exact recipe
of Coca-Cola is a secret. The company produces a syrup
concentrate to sell to its licensed bottlers around the world. The
bottlers then add filtered water and sweeteners with the
concentrate to produce the final products in cans and bottles.
• The bottlers then sell, distribute, and merchandise the finished
products to retail outlets, restaurants, petrol stations,
newsagents, corner shops and many more. It is not therefore hard
to imagine how Coca-Cola products are available even in remote
areas in many countries. It is worth mentioning that the shapes
and sizes of the bottles are predefined by the Coca-Cola
Company, not by the bottlers.
PROMOTION IN THE MARKETING MIX OF COCA-COLA
• Promotion in the marketing mix of Coca-Cola usually refers to
how the company communicates with its customers and
stakeholders. The cost of maintaining the position of the global
leader in the beverage industry is not cheap! The Coca-Cola
Company spent a total of $3.499 billion in 2014, $3.266 billion in
2013 and $3.342 billion in 2012 in advertising globally. The total
advertising spending for the year 2018 was approximately $4.1
billion. This is massive!
• The Coca-Cola Company uses a variety of promotional strategies
to take its messages to the customers. It uses different types of
media for its advertising campaigns. Media e.g. TV, the Internet,
newspapers, and social media have all been used by the
company. The company also makes use of different sales promotion
 techniques. For example, it offers special incentives and bulk-
buying discounts to the distributors and the retailers.
COCA-COLA STRENGTHS – INTERNAL STRATEGIC
FACTORS

• Strong brand identity – Coca-Cola is a highly popular brand with a

unique brand identity. Its soft drinks are the most-selling drinks in history.
• High brand valuation – Coca-Cola is undoubtedly one of the most
renowned brands with a high brand value. According to Interbrand annual
report, Coca Cola is ranked 6th best global brand in 2021 with a brand value
of $57 Billion.
• Extended global reach – It is sold in more than 200 countries with 1.9
billion servings per day of Company products. It has introduced more than 500
new products globally. Some of these are variations of Coca-Cola beverage,
like Coco Cola Vanilla and Cherry Coca-Cola. Its brands are known to touch
every lifestyle and demography.
• Greatest brand association and customer loyalty – Coca-Cola is
considered one of US’s most emotionally-connected brands. This valuable
brand is associated with ‘happiness’ and has strong customer loyalty.
Customers can quickly identify their particular taste. Finding its substitutes is
difficult for them. Moreover, Coca-Cola and Fanta have a huge fan following
than other beverage names in the industry.
• Dominant market share – Out of Coca-Cola and Pepsi, the only two
largest manufacturers of soft drinks in the beverage segment, Coca-Cola has
the largest market share. Coke, Sprite, Diet Coke, Fanta, Limca, and Maaza
are the highest growth drivers for Coca-Cola.
• Unparalleled distribution system – Coca-Cola has the most efficient
and most extensive distribution network in the world. The company has nearly
225 bottling partners and about 900 bottling plants globally.
• Acquisitions – Coca-Cola has a long list of strategic and profitable
acquisitions including Costa coffee chain, Fairlife (Milk Products), Fuze Tea,
AdeS, and many more. Through these acquisitions, Coca-Cola expanded its
ready-to-drink beverage portfolio

COCA-COLA WEAKNESSES – INTERNAL STRATEGIC FACTORS

• Aggressive competition with Pepsi – Pepsi is the biggest rival of Coca-
Cola. Had it not been Pepsi, Coca-Cola would have been the clear market
leader in the beverage.
• Coca cola has low product diversification , Where Pepsi has launched
many snacks items like Lays and Kurkure, Coca-Cola is lagging in this
segment. It gives Pepsi leverage over Coca-Cola.
• Health concerns –Carbonated drinks are one of the major sources of
sugar intake. It results in two grave health issues – obesity and diabetes.
Coca-Cola is the biggest manufacturer of carbonated beverages. Many
health experts have prohibited the use of these soft drinks. It is a
controversial issue for the company. However, Coca-Cola hasn’t devised
any health alternative or solution for this problem yet.
• Lawsuits – Trust is undermined whenever the company is accused of
wrongdoing. Coca Cola is facing a patent infringement lawsuit for using a
dispenser that can recognize users and customize drinks based on their
preferences
• Overdependence on Third-Party Technology Providers – Coca Cola’s
operations rely heavily on the technological expertise of third-parties. The
company signed another five-year deal with Microsoft to supply business
software.
• Environmentally Destructive Packaging , Coca Cola was named as one of
the four world’s largest consumer brands that are contributing
immensely to global warming and carbon emissions by using throwaway
plastic bottles
COCA-COLA OPPORTUNITIES – EXTERNAL STRATEGIC
FACTORS

• Introduce new products and reduce added sugar – Coca-Cola has the
opportunity to introduce new offerings in healthy drinks and food
segments just like Pepsi , It can contribute to their revenue, brand image
and they can branch out from carbonated drinks. According to its recent
annual report, Coca-Cola has been evolving and prioritizing the
reduction of sugar in its beverages and so far 28% of its volume sold was
low or no-calorie beverage.
• Increase presence in developing nations – Many regions with hot
climate have the highest consumption for cold drinks. Thus, increasing
presence in such emerging markets can be excellent – Middle Eastern and
African countries are a good example.
• Bring advanced supply chain system – Coca Cola’s business is
entirely dependent upon logistics and supply chain. Transportation costs
and fuel prices are always on the rise. Thus, coming up with some
advanced and improved systems for distribution can be an opportunity.
• Packaged drinking water – Coca-Cola owns several packaged
drinking water brands like Kinley. There is a great potential for
expansion in this segment for Coca-Cola. There is an opportunity to
expand and bring more healthy drinks in the market to avoid people’s
criticism.
• Coca-Cola introduces its very First TikTok challenge across
the US – Coca-Cola enters the TikTok stratosphere, announcing the
company’s first-ever TikTok challenge in the US. It’s an excellent move
for the company to enhance its brand recognition further. TikTok is a
huge platform with over 1 billion monthly active users. Debuting its first
TikTok challenge, Coca-Cola has also collaborated with Grammy-
nominated music artist ‘Khalid’ to sing the challenge’s first opening song.
Moreover, Coca-Cola will also collaborate with choreographer Jalaiah
Harmon, the young woman behind the famous Renegade Dance
COCA-COLA THREATS – External STRATEGIC FACTORS

• 1. Water usage controversy – Coca-Cola has faced many criticisms

over its water management issue. Many social and environmental groups
have claimed that the company has a vast consumption of water in water-
scarce regions. Besides, people have alleged that Coca-Cola is polluting
water and mixing pesticides in water to clear contaminants.
• 2. Pollution Lawsuit – Coke and three other companies are being
sued by a California environmental group for contributing to plastic
pollution , In the lawsuit, Coca-Cola is singled out for misleading the
public about the recyclability of its single-use plastic bottles.
• 3. Direct and indirect competition – Although direct competition
from Pepsi is clear in the market, however, there are many other
companies which are indirectly competing with Coca-Cola , starbucks ,
Costa Coffee, Tropicana, Lipton juices, and Nescafe, are the indirect
competitors of Coca-Cola, which can threaten its market position
• Economic Uncertainty – The recent events have negatively affected
business operations, supply and distribution chains, and devastated
revenues of many global companies. In 2020, Coca cola’s revenues
declined drastically as restaurants, theaters, and other venues that
contribute about half of its revenue remained closed due to the global
crisis.
• Increasing Health-Consciousness – Consumers are
increasingly adopting healthy lifestyles and avoid products
with unhealthy ingredients. The increase in health
consciousness can reduce Coca Cola’s sales and profits as
customers migrate to healthier options offered by competitors.
 RECOMMENDATIONS
• Based on the above SWOT analysis of Coca-Cola, we can conclude that
Coca-Cola has a definitive market position in the soda industry. However,
it is recommended to bring more innovative changes.Some
recommendations are explained as follows:
 Stepping into the food market – Coca-Cola needs to introduce new
products in snacks and food segments.
 Focusing on health-related matters – It should bring some solution to
address the rising health concerns from social activists.
 Improving its water management system and dealing with the criticisms
from environmental agencies.
 Improving its water management system and dealing with the criticisms
from environmental agencies.
 Expanding into developing countries , with humid temperatures – There
are many products of Coca-Cola like Fuze Tea, Dasani and Hi-C which
aren’t distributed in many developing countries. Coca-Cola needs to
increase the distribution of such products
 Increasing the distribution of packaged drinking water like Kinley.
 Working on sustainability and green marketing It can improve its brand
image in the market.

• Prepared by Salman Alwaidah

• student ID:1195157