Coca-cola

TERM PAPER ON COCACALA

BY SITHARA.S.PARAKASH
 COMPANY PROFILE

 INDEX MEMBERSHIP:DOW JONES COMPOSITE

 SECTOR : CONSUMER GOODS

 INDUSTRY :BEVERAGE(SOFT DRINKS)

 FULL TIME EMPLOYEES:139,600

 INTRODUCTION
 The Coca-Cola Company (NYSE: KO) is a beverage retailer,
manufacturer and marketer of non-alcoholic beverage
concentrates and syrups.
 The company is best known for its flagship product 
Coca-Cola, invented by pharmacist John Stith Pemberton in
1886.
 The Coca-Cola formula and brand was bought in 1889 by Asa
Candler who incorporated The Coca-Cola Company in 1892.
 Besides its namesake Coca-Cola beverage, Coca-Cola
currently offers more than 500 brands in over 200 countries
or territories and serves 1.6 billion servings each day
 The Coca-Cola Company is headquartered in Atlanta, Georgia.
Its stock is listed on the NYSE and is part of DJIA, 
S&P 500 Index, the Russell 1000 Index and the Russell 1000
Growth Stock Index.

 Its current chairman and CEO is Muhtar Kent.

 The Coca-Cola Company only produces syrup concentrate

which is then sold to various bottlers throughout the world
who hold an exclusive territory. 
 The world's favorite drink. The world's most valuable brand.
The most recognizable word across
the world after OK. Coca-Cola has a truly remarkable heritage.

 In India, Coca-Cola was the leading soft-drink till 1977 when

govt. policies necessitated its departure. Coca-Cola made its
return to the country in 1993 and made significant
investments to ensure that the beverage is available to more'
and more people, even in the remote and inaccessible parts
of the nation.
 MISSION
 Refresh the World... In body, mind, and spirit

 To Inspire Moments of Optimism... Through our

brands and our actions
 
 To Create Value and Make a Difference... Everywhere
we engage.
 VISION

 PROFIT: Maximizing return to shareowners while being

mindful of our overall responsibilities.
 
 PEOPLE: Being a great place to work where people are
inspired to be the best they can be.
 
 PORTFOLIO: Bringing to the world a portfolio of beverage
brands that anticipate and satisfy peoples’ Desires and needs.
 
 PARTNERS: Nurturing a winning network of partners and
building mutual loyalty.
 DISTRIBUTION

 Direct distribution: In direct distribution, the bottling unit or the bottler

partner has direct control over the activities of sales, delivery, and
merchandising and local account management at the store level.

 Indirect distribution: In indirect distribution, an organization which is not

part of the Coca-Cola system has control on one or more of the
distribution elements (Sales,delivery, merchandising and local account
management)

 Merchandising: Merchandising means communication with the consumer

at the point of purchase to convey product benefit, value and Quality.
 CUSTOMERS
 Cocacola has a wide range of products. Its customer also varies according
to taste andpreference. Coca cola is also available in can of 330ml which
targets the upper income class andtheir sale is also confined in those
particular places.

 Coca cola is available in cola, lemon, orange and juice flavor, accordingly
customers have choicefor. Among the products of coca cola Thumps-up
has lead the way with 45% of market shareFanta stands third after
Mirinda.

 Coca Cola Company has wide range of customers that falls under the
distribution channels ofmarketing. Customers may be distributor,
retailers to final customers, which are households.
 MARKET SHARE
 Being the biggest company in the soft drink industry, Coca Cola
enjoys the largest marketshare.This company controls about 59% of
the world market.

 In 2002, the company grew their carbonated soft-drink business by

nearly250 million unit cases and generated record volumes.

 Because carbonated soft drinks arethe largest growth segment

within the nonalcoholic ready-to-drink beverage categorymeasured
by volume, that is why they are focusing more on this and they are
continuallyincreasing the pace because they know that accelerating
this pace is crucial to their futuresuccess. Thus they are increasing
their market day by day. 
NEW VARIATION OF COKE
 BRAND AMBASSADOR-
GUATHAM GAMBIR
 SEGMENTATION
 Focused on 3 groups
 A)E & D
 B) Convenience
 C) Grocery
1.E&D:–Those outlets where people visit to ear of drink are known and
eating and drinking outlets. Such as Restaurants and Hotels.

2. Convenience :–Convenience outlets ate those outlets where people

visit regularly for various purposes like stationary shop, S.T.D– Booth,
Betal Shop and general Store.

3. Grocery :–Those outlets where people visit to purchase food grains

and any of such things for futureconsumption and called as Grocery
shops.
 TARGET

 The company's beverages are generally for all

consumers.

 However, there are some brands, which target

specific consumers. For example, Coca-Cola's diet
soft drink are targeted at consumers who are older
in age, between the years of 25 and 39.

 PowerAde sports water target those who are fit,

healthy and do sport. Winnie the Pooh sipper cap
Juice Drink target children between the ages 5-12. 
 POSITIONING

 Age
 High price
 Gender
 Time of day
 Place of distribution
 Quantity
 PRODUCTS& BRAND”S
There are different brands of the Coca Cola Company, which are currently in
use throughout the world. This company not only deals in the carbonated
drinks but also other drinks.While launching its product, the marketing team
considers the culture of the country.

Major brands of coca cola

•Coke
•Sprite
•Fanta
•Diet coke
•Coke classic
 COCACOLA’S MAJOR OFFERINGS
 Dasani bottled water
 Glaceau VitaminWater
 POWERade sports drinks
 Minute Maid and Minute Maid To Go juices
 Aquarius sports drinks
 Nestea
 Sokenbicha
 Odwalla
 NEW LAUNCH OF
COCACOLA
 Coca-Cola Co. it will launch a no-calorie version of its
trademark soft drink called Coca-Cola Zero in the United
States in June.

 The drink will be sweetened partly with a blend of

aspartame and acesulfame potassium. Aspartame is a key
ingredient in Diet Coke, but a spokesman for the Atlanta-
based company said Coca-Cola Zero will have a unique taste.
 GROWTH OF COC
 LEADERSHIP: The courage to shape a better future
 •
 PASSION: Committed in heart and mind
 •
 INTEGRITY: Be real
 •
 ACCOUNTABILITY: If it is to be, it’s up to me
 •
 COLLABORATION: Leverage collective genius
 •
 INNOVATION: Seek, imagine, create, delight
 •
 QUALITY: What we do, we do well
MANUFACTURING
MECHANISM
 PRODUCT
SAFETY&QUALITY
 The global nature of the business requires that the 
Coca-Cola system has the highest standards and
processes for ensuring consistent product safety and
quality -- from our concentrate production to our
bottling and product delivery.

 The measure of key product and package quality

attributes to ensure our beverage products in the
marketplace meet Company requirements and
consumer expectations.
 STRATEGIC PLANNING

.Accelerate carbonated soft-drink growth, led by Coca-Cola.

•Selectively broaden the family of beverage brands to drive

profitable growth.
•Grow system profitability and capability together with our
bottling partners.
•Serve customers with creativity and consistency to generate
growth across all channels.

•Direct investments to highest potential areas across market.

 MICRO ANALYSIS

 Threat of new Entrants

 Threat of substitutes
 Rivalry in industries
 Bargaining power of suppliers
 Bargaining power of suppliers
 MACRO ANALYSIS

 Demographic environment
 Population growth
 Population mix
 Household patterns-large and small families
 Geographical shift
 PESTLE ANALYSIS
 Political Analysis:
 Political analysis examines the current and potential influences
from political pressures.

 The non-alcoholic beverages falls in the category under the

FDA and the government plays a role within the operation of
manufacturing these products.

 In terms of regulations, the government has the power to set

potential fines for the companies that did not meet their
standard law requirement.
 Ecocnomic analysis:

Economic analysis examines the local, national and world

economy impact which is also includes the issue of recession
and inflation rates.

"For major soft drink companies, there has been economic

improvement in many major international markets, such as
Japan, Brazil, and Germany." These markets will continue to
play a major role in the success and stable growth for a
majority of the non-alcoholic beverage industry.

There is a low growth in the market for carbonated drinks,

especially in Coca Cola’s main market, North America. The
market growth recorded at only 1% in 2004 for North America.
 Sociological analysis

 This analyzes the ways in which changes in society affect

the organization such as changing in lifestyles and attitudes of the
market. 
 Consumers from the ages of 37 to 55 are also increasingly concerned
with nutrition. There is a large population of the age range known as the
baby boomers.

 Since many are reaching an older age in life they are becoming more
concerned with increasing their longevity. This will continue to affect the
non-alcoholic beverage industry by increasing the demand overall and in
the healthier beverages.

 The demand for carbonated drinks decreases and this pulled down the
revenues of Coca Cola.
 SWOT ANALYSIS

 Coca-Cola ranks well

ahead of its close competitor Pepsi which has a ranking of
22 having a brand value of $12,690
million The Company’s strong brand value facilitates
customer recall and allows Coca-Cola to penetrate markets.

 However, the company is threatened by intense

competition which could have
an adverse impact on the company’s market share
 Strengths:
 World’s leading brand
Large scale of operations
Robust revenue growth in three segment
WEAKNESS:
 Negative publicity
 Sluggish performance in North America
 Decline in cash from operating activities
 Oppurtunity:
 Acquisitions Intense competition
Growing bottled water market
Growing Hispanic population in US
Threats:
 Intense competition
Dependence on bottling partners
Sluggish growth of carbonated beverages