COCA COLA

Presented by:
Avanee Tyagi
Deepanshu Babele
Gaurav Virdi
Jyotsna Singh
Pankaj Singh
Shailja Sinha
Sharuti Goyal
Ankit Garg
 COMPANY OVERVIEW
• The Coca-Cola Company (Coca-Cola) is a leading
manufacturer, distributor and marketer of Non-alcoholic
beverage concentrates and syrups, in the world. The
company owns or licenses more than 400 brands,
including diet and light beverages, waters, juice and juice
drinks, teas, coffees, and energy and sports drinks. The
company operates in more than 200 countries.
Approximately 74% of its products are sold outside of the
US. The company is headquartered in Atlanta, Georgia
and employs 71,000 people as of September 2006.
 COMPANY
OVERVIEW(Cont..)
• The company recorded revenues of $24,088 million during the
fiscal year ended December 2006, an increase of 4.3% over 2005.
The increase in revenue was primarily due to increase in sales of
Unit cases of company’s products from approximately 20.6
billion unit cases of the company’s Products in 2005 to
approximately 21.4 billion unit cases in 2006, the increase in the
Price and Product/geographic mix also boosted the revenue
growth. The company-wide gallon sales and unit case volume
both grew 4% in 2006 when compared to 2005. The operating
profit of the company was $6,308 million during fiscal year
2006, an increase of 3.7% over 2005. The net profit was $5,080
million in fiscal year 2006, an increase of 4.3% over 2005.
 Mission
Our Roadmap starts with our mission, which is enduring. It declares our
purpose as a company and serves as the standard against which we weigh
our actions and decisions.

• To refresh the world...

• To inspire moments of optimism and happiness...

• To create value and make a difference.

 Vision
Our vision serves as the framework for our Roadmap
and guides every aspect of our business by describing
what we need to accomplish in order to continue
achieving sustainable, quality growth.
• People: Be a great place to work where people are
inspired to be the best they can be.
• Portfolio: Bring to the world a portfolio of quality
beverage brands that anticipate and satisfy people's
desires and needs.
 Vision (Cont..)
• Partners: Nurture a winning network of customers and
suppliers, together we create mutual, enduring value.
• Planet: Be a responsible citizen that makes a difference by
helping build and support sustainable communities.
• Profit: Maximize long-term return to shareowners while
being mindful of our overall responsibilities.
• Productivity: Be a highly effective, lean and fast-moving
organization.
 Live Our Values
Our values serve as a compass for our actions and describe how we behave in the world.

• Leadership: The courage to shape a better future

• Collaboration: Leverage collective genius

• Integrity: Be real

• Accountability: If it is to be, it's up to me

• Passion: Committed in heart and mind

• Diversity: As inclusive as our brands

• Quality: What we do, we do well

 Focus on the Market
Focus on needs of our consumers, customers and
franchise partners

Get out into the market and listen, observe and learn

Possess a world view

Focus on execution in the marketplace every day

Be insatiably curious
 STRENGTHS

 Popularity

 Well known

 Branding obvious and easily recognized

 A lot of finance

 Customer loyalty

 International Trade
 WEAKNESSES
Word of mouth

Lack of popularity of many Coca Cola’s brands

Most unknown and rarely seen

Result of low profile or non-existent advertising

Health issues 
 THREATS
Changing health

Consciousness attitude

Legal issues

Health ministers-competition (Pepsi)

 OPPORTUNITIES
Many successful brands to pursue

Advertise its less popular products

Buy out competition

More Brand recognition

 ADVERTISEMENT STRATEGY
 The first advertising agency hired by Coca-Cola was Leo Burnett but it failed to capture the
Indian market as an MNC.

 Then it hired Lintas Lowe. Again a failure.

 Presently it is McCann Erickson

In the year 2002 it launched a campaign “Thanda matlab Coca-Cola” and “Paanch matlab
chota Coke”.The word Thanda has universal appeal across India.

 It was bridging the gap between soft drinks and other local options.

 They were actually focusing rural market of India.

 The Cola war actually eliminates the other lesser rivals.

 PORTER’S 5 MODEL
 Rivalry among organizations:
prices of Pepsi and local brands.
Market share.
Promotional actions of competitions.

 New Entrants
New look-a-like manufacturers.

 Substitutes products
energy drinks, milk drinks, coffee, beer, water,
smoothies, etc.

 Suppliers
Price and availability of ingredients on world market
Quality, speed, safety, traceability, flexibility of supply chain.

 Buyers and consumers

High as a result of intense competition both among branded and unbranded products
Combined purchase power of shops, bars, supermarkets
Customers include large, international chains of retailers and restaurants, as well as small, independent businesses.
STRATEGY FORMULATION

1.BUSINESS STRATEGY

2.FUNCTIONAL STRATEGY
 BUSINESS STRATEGY
1.Buyers
• Ultimate buyer is individual consumer
• Real buyers are local bottlers to whom
company sells its patented syrups
2. Suppliers
• Various domestic sources (for fructose &
sucrose)
• NutraSweet company (for aspartame)
3. Substitute
• Citrus beverages
• Fruit juices

4. New entrants
• New age beverages are now ready with
different vision
• They are for well-informed, health-informed &
health-conscious consumers.
5.Rivalry
• Intense rivalry with Pepsi
• Known as cola wars
• Advertising and sales promotion are becoming
crucial.
 FUNCTIONAL STRATEGY

1. Operation
• Inclination towards regional operating strategy
• Centralized concentrate production facilities
• Lower manufacturing cost.

2. Human resources
• Loyal workforce, minimum turnover, internal
job hiring, attractive compensation
• “Think globally but act locally” strategy
3. Sales & Marketing
• Internationally coke is always ahead of Pepsi
• Major strength is brand loyalty
• Overall domestic market share is 41% and that of
Pepsi is 31%.

4.Distribution
• Coca cola uses its own network of wholesalers for
their fountain syrup distribution.
STRATEGY IMPLEMENTATION
• Close relationship with the customer and timely
decision making is required by the global yet diverse
marketplace of today’s world.
• Structurally , a flatter organization of the company is
followed .
• Therefore a crescive approach is followed.
- It addresses formulation and implementation
simultaneously.
- Encourages middle management to participate .
- Strategies are more operationally sound .
 Coca-Cola successfully implemented the strategies
formulated by ensuring effectiveness in the following
areas :

1. Distribution

1. Procurement

1. Marketing

1. HR
STRATEGIC CONTROL
 MONITORING PERFORMANCE
When Pepsi was more successful than Coca Cola in India,

•Coca Cola Did the marketing survey, and came to

know that India call soft drinks As “Thanda”, so
came with “Thanda matlab coca cola”,
•To adopt to globalization – came with advertisement
in different regional languages, Launched-5 rupee
campaign.

In Germany and America launched “Holiday are coming”

advertisement.
 COMPARING PERFORMANCE
TO STANDARD

• As the standards to give quality and customer

satisfaction was not meet, Coca Cola was found to
have pesticides which could dissolve teeth if kept in it
for two weeks.
• So it launched QUALITY TESTING Laboratory, ($6
dollar) it will test Temperature, Volume and acid
level.
 TAKING CORRECTIVE ACTION
WHEN NEEDED
• To improve its image it has partnered with American
family physician Academy, proving a 500,000 grant
to promote health-lifestyle Education.
• Its was the first brand to sponsor the Olympics in
1928,long association with sports as maximum users
of Coke are teenagers
• In 1985 coke was first soft drink to be enjoyed
outer space on space shuttle.
• Technological change-coca cola vending
machines appear in many schools around the
world
THANKS A LOT