Download as pptx, pdf, or txt
Download as pptx, pdf, or txt
You are on page 1of 34

What is the CocaCola compagny ?

The Coca-Cola company is the world’s leading soft drink maker, operates in
more than 200 countries and sells 400 brands of non-alcoholic beverages.
Coca-Cola is also the most valuable brand in the world. Coca-Cola is a globally
recognized successful company.Coca-Cola was founded in May of 1888 and
continues for more than a century through the times of war and peace,
prosperity and depression , economic boom and bust. As late as 1990’s, Coca-
Cola was one of the most respected compagnies in the world, known as a very
successful management team. Since 1998, the company has been struggling
with internal weaknesses and external threats.
History
It was 1986, and in New York Harbor, some workers were constructing the statue of liberty. Eight
hundred miles away, another great American symbol was about to be unveiled.
Like many people who changed history, John Pemberton, an Atlanta pharmacist, was inspired by
simple curiosity. One afternoon, he stirred up a fragrant, caramel colour liquid and, when it was
done, he carried it to Jacobs’Pharmacy. Here, the mixture was combined with carbonated water and
was tasted by customers who all agreed. This new drink was something special. So Jacobs’ Pharmacy
put in on sale for five cents a glass.
Pemberton’s bookkeeper, Frank Robinson, named the mixture Coca-Cola, and wrote it out in a
distinct script. Since this day, Coca-Cola is written the same way. In the first year, Pemberton sold just
9 glasses of Coca-Cola a day.
A century later, the Coca-Cola Company has produced more than 10 billion gallons of syrup.
Unfortunately Pemberton died in 1888 without realizing the success of the beverage he had created.
Over the course of three years, from 1888 to 1891,Griggs Candler, an Atlanta businessman,secured
rights to the business for a total of 2,300 dollars. Candler became the first president of the
company , and was the first to bring real vision to the business and the brand.
Main competitor
Brands of Coca-Cola Company
Advertising
• Coca-Cola uses the concept of aggressive advertising to promote its
products. Thus advertising is the most important marketing tool for the
company as it has to cater mass consumer markets. They mainly do national
advertising.
• Company introduces differents themes and concepts to sell their products
and advertises mainly in electronic media and out of home advertising.
These advertisements build brand image and create awareness.
• Famous indian film industry mainly become the brand ambassadors of
company.
• Throughout the years, the slogans of the Coca-Cola have been memorable.
Mediums of advertising
The mediums of advertising used by Coca-Cola are :

• Print media
• Point of sale materials
• T.V
• Outdoor advertising
• Direct marketing
• Internet
• Sales promotion
• Public relation
• Personal selling
pestel
Political
The Food and Drug Administration (FDA) regards non-alcoholic beverages such as Coca-Cola as within the food category.
The government regulates the manufacturing procedure of these products. Companies that fail to meet the government's
standards are subject to fines. Coca-Cola is also subject to the Occupational Safety and Health Act and to local, state,
federal, and foreign environmental regulation. Following are some of the factors that are influencing Coca-Cola's
operations:

• Soft power. Coca cola is the symphony of United states soft power. Soft power is held by the states able to influence
indirectly and seduce other countries of the world, to make them adopt their point of view without the need to use
force or threat. The soft power is a new form of power in contemporary international politics. Coca-Cola is an integral
part of the lives of European, Asian and South American,mostly all around the world.
• Changes in laws and regulations : changes in accounting standards, taxation requirements (tax rate changes, modified
tax law interpretations, entrance of new tax laws), and environmental laws either in domestic or foreign authorities.
• Changes in non-alcoholic business era : competitive product and pricing policy pressures and ability to maintain or earn
share of sales in worldwide market compared to rivals.
• Political conditions, specifically in international markets : civil conflict, governmental changes, and restrictions
concerning the ability to relocate capital across borders.
• Ability to penetrate emerging and developing markets : this also relies on economic and political conditions, such as
civil conflict and governmental changes, as well as Coca-Cola's ability to form effectively strategic business alliances with
local bottlers, and to enhance their production amenities, distribution networks, sales equipment, and technology.
Economy
During the recession of 2001, the US govemment took agressive actions to turn the
economy around by 2002. Coca-Cola took note of this, and realized that loan interest
rates would likely rise as the economy returned. Thus, they took out low-cost loans in
2001 to fund growth in 2002. They used the loans for research and development on
new products to capitalize on in strong 2002 economy. Currently, as global growth is
slowing, Coca-Cola may be watching for a similar opportunity.

Exchange : As Coca cola is a global brand fluctuations in exchange rate is the most
significant economic factor that has impacted Coca Cola performance. For example,
due to severe currency devaluation in Venezuela, Coca Cola has reported profits in this
market to be reduced by 55% in the fourth quarter of 2014 and there are similar
instances in other parts of the world.
Socio-cultural
• As a soft drink, Cocal cola is confronted to the problem of obesity which progressed in developed
countries, especially in US and now in Europe. Medical specialists, by the intermediary of media, try
to discourage people to drink sugar-soft drink so the majority of people in the US are showing
increasing interest in healthy lifestyles.
The Coca-Cola then became for some a distorted drink, with a lot of additives.

• Time management is a concern for 43 percent of all households, a percentage that has increased
over the years.

• Customers from ages 37 to 55 are concerned with their nutrition. Also, a large portion of the
population are baby boomers. As they become seniors, they are more concerned about life choices
that will impact their life expectancy. That will continue to affect the non-alcoholic beverage sector
by increasing the demand for healthier drinks.
Technology
With the arrived of Internet, the street-marketing clearly took another dimension(size) with the marks(brands). Indeed, fact to
realize a direct operation of marketing will, certainly, allow to affect(touch) the people who are "victims", but also developing the
viral contents easily and in lesser blow on internet
Coca-Cola is a very big follower of the viral operation. The purpose of this kind of communication is mainly to develop loyalty into
the young people, who will be the first ones affected by the viral operation. Then, it is a way ingenious to promote the brand.

• Packaging design : In the past, the introduction of cans and plastic bottles increased sales volume for the company due to how
easy these containers were to carry and dispose.
• New equipment : because the technology is continuously advancing, new equipment is constantly being introduced. Because of
these new technologies, Coca-Cola’s production volume has increased sharply compared to that of a few years ago.
• New factories : Coca-cole company has six factories in britain that use modern technology to insure the quality and speedy
delivery of product. In1990, CCE opened one of Europe’s largest soft drinks facories in Wakefield, Yorkshire. The factory has a
ability to produce cans of Coca-Cola at a faster rate than a machine gun can fire bullets.
• The efficiency of company’s advertising, marketing, and promotional programs : For example, television, Web and social
media advertising are constantly evolving. The ability of a company to effectively promote their products through these
channels impacts sales.
Environmental
Coca-Cola has made a sustained effort to meet consumer demands with regard to becoming a more environmentally
friendly brand. By setting up a Seven-point list of goals alongside WWF to be achieved by 2020, coke is enabling the brand
to come across as in touch witch consumer expectations from an ethical point of view. This seven-point plan ranges form
making the bottles, cans and cardboard more recyclable and covers key issues such as a reduction in carbon emissions,
thus having a less adverse effect on the environmental welfare of animals and their surrounding environment, through
coke’s production line. Coke make their environmental efforts abundantly clear and available for consumers to grasp as
they have dedicaced a comprehensive section of their greener approach and awareness of their effects on the
environment.

This provides a market opportunity for coke to etablish them as a brand, whitch has a vested interest in the welfare of the
planet, and thus appeal to consumers who are environmentally concerned.

However, it may be argued that despite the efforts to be seen as environmentaly concious, Coke’s reputation among
customers, and how they are perceived by the media, creates a negative brand image in light of their environmental
impact. Coke facing problems in India as a negative relationship with the environment is clear. Coke is adversely affecting
the welfare of the local, underdeveloped community in India, particularly on farmers through their production, where they
rely on large water consumption as a key ingredient, which is both wasteful and polluting. This is a threat to the brand in a
growing environmentally concerned world. Factors like these can be exploites by rival brands and in the media and
threaten coke’s success.
Legislation
Coca-cola must respect the prohibition of different countries of ingredients
contained in Coca-Cola. For example in France and other countries in 2012 Coca-
Cola was forced to change its recipe because of a carcinogenic colouring agent.

The main legal factors affecting Coca Cola may be seen as changes in legislation
and regulation in the UK and international soft drink market, and different pressure
groups lobbying for more environmentally friendly, or ethically sound practices. For
example, activists have been said to be pushing for more government control over
some products labelling and advertising standards. Coca Cola have a legal
responsibility to show ingredients clearly and honestly on their packaging.
Swot
Strengths in the swot of coca cola
• Brand Equity : Interbrand in 2011 awarded Coca cola with the highest brand equity award. Coca cola with its vast global presence and
unique brand identity is definitely one of the costliest brands with the highest brand equity.
• Company valuation : One of the most valuable companies in the world, Coca cola is valued around 79.2 billion dollars. This valuation
includes the brand value, the numerous factories and assets spread out across the world and the complete operations cost and profit of
Coca cola.
• Vast global presence : Coca cola is present in 200 countries across the world. Chances are, any country that you go to, you will find coca
cola present in that market. This vast global presence of coca cola has also contributed to the building of the mammoth brand name.
• Largest market share : There are only 2 Big competitors in the beverage segment : Pepsi and Coca cola. Out of these 2, coca cola is the
clear winner and hence has the largest market share. Amongst all beverages, Coke, Thums up, Sprite, Diet coke, Fanta, Limca and Maaza
are the growth drivers for Coca Cola.
• Fantastic marketing strategies : Coca cola unlike Pepsi always tries to win peoples heart. Where Pepsi’s target is continuously changing,
and is targeted towards youngsters, Coca cola targets people of all ages. The targeting is also done by celebrities who are well liked – for
example – Amitabh Bacchan, Sachin tendulkar, Aishwarya Rai,Aamir Khan etc
• Customer Loyalty : With such strong products, it is natural that Coca cola has a lot of customer loyalty. The products mentioned above
like Coca cola and Fanta have a huge fan following. People will prefer these soft drinks over others. Because of the good taste of Coca
cola, finding substitutes becomes difficult for the customer.
• Distribution network : Coca cola has the largest distribution network because of the demand in the market for its products. On the
other hand, due to this successful distribution network, Coca cola has been able to command such a high market presence.
Weaknesses in the swot of coca cola
• Competition with Pepsi : Pepsi is a thorn in the flesh for Coca cola. Coca cola would have been the clear
market leader had it not been for Pepsi. The competition in these two brands is immense and we don’t think
that Pepsi will give up so easily.
• Product Diversification is low : Where Pepsi has made a smart move and diversified into the snacks segment
with products like Lays and Kurkure, Coca cola is missing from that segment. The segment is also a good
revenue driver for Pepsi and had Coca cola been present in this segment, these products would have been an
additional revenue driver for the company.
• Absence in health beverages : If you watch the news, you would know that obesity is a major problem
affecting people nowadays. The business environment is changing and people are taking measures to ensure
that they are not obese. Carbonated beverages are one of the major reasons for fat intake and Coca cola is the
largest manufacturer of Carbonated beverages. The inference is that the consumption of beverages in
developed countries might go down as people will prefer a healthy alternative.
• Water management : Coca cola has faced flak in the past due to its water management issues. Several groups
have raised lawsuits in the name of Coca cola because of their vast consumption of water even in water scarce
regions. At the same time, people have also blamed Coca cola for mixing pesticides in the water to clear
contaminants. Thus water management needs to be better for Coca cola.
Opportunities in the swot of coca cola
• Diversification : Diversification in the health and food business will improve the offerings of Coca cola to their customers. This will also
ensure that they get better revenue from existing customers by cross selling their products. The supply chain which is distributing their
beverages can also distribute these snacks thereby sharing the load of Supply chain costs.
• Developing nations : Although developed nations have a high presence of Coca cola, these countries are slowly moving towards
healthy beverages. However developing countries are still being introduced to the delight of carbonated drinks and soft drinks.
Countries like India which are developing and have a hot summer, find the consumption of cold drinks almost doubled during
summers. Thus the higher consumption in developing business environment can be a good opportunity to capitalize for Coca cola.
• Packaged drinking water : With hygiene becoming a major factor in the consumption of water, Packaged drinking water has found its
way into peoples mind. Coca cola has a presence in the packed drinking water segment though Kinley. Although Kinleys expansion is
slow as of now, Kinley has a huge potential of expansion. Thus Coca cola as a company should focus on the expansion of Kinley as a
brand and take it up to Bisleri ‘s level of trust.
• Supply chain improvement : Supply chain can be a major cost sink hole with the transportation costs always rising. Coca cola’s
complete business is based on transportation and distribution. There will always be possible improvements in this area. Thus Coca cola
should keep strict watch on its Supply chain and keep improving to bring the cost down.
• Market the lesser selling products : In the product portfolio of Coca cola, there are several products which have not found acceptance
in the market. Coca Cola needs to concentrate on the marketing of these products as well. It is understood that Coca cola has made
several expenses to launch these products. Thus, the marketing and subsequent rise of sale of these products will help revenue of
Coca cola.
Threats in the swot of coca cola
• Raw material sourcing – Water is the only threat to Coca cola. The weakness of Coca cola was
the suspected use of pesticides or vast consumption of water. However, the threat here is that
water scarcity is on the rise. With the climate changing, and regions of various countries
facing scarcity of water, sooner or later someone might raise fingers on beverage companies.
Thus, Water sourcing is an axe which can fall anytime on the head of Coca cola. If water is
limited or rationed, Coca cola can experience a major downfall in their revenue and capacity
of distribution. The same can affect its arch rival Pepsi as well.

• Indirect competitors – Coffee chains like Starbucks, Café coffee day, Costa coffee are on the
rise. These chains offer a healthy competition to Coca colas carbonated drinks. They might not
be a big competition for Coke, but they do give a dent to its beverage market. Similarly, health
drinks like Real and Tropicana as well as energy drinks like Red bull and Gatorade are stealing
away the market share indirectly.
Marketing diagnostic
• Mission statement
• Target
• Perception
What is the problem ?
How Coca Cola was able to
keep its leader position in all
these years but actually while
there is obesity problem,how
could it face strong
competition ?
Solution

Playing on different tastes


and make love
consumers using an icon
that will influence
people
In one Phrase
Each bottle of Coca cola is open for a moment that we thought for
you. We offer different ranges because we thought your
nutritional benefits.
Perceived value / Value benefit and
emotions
Our strategy will be to show that we
care about nutrionals contributions
of our consumers and we are
answered to a social problem, while
putting forward our slogan that calls
to happiness.
COMMUNICATION DIAGNOSTIC
SINGLE-MINDED PROPOSITION
Here it comes to highlight the benefits of the drink. We want to
emphasize the range of zero coca cola products, coca cola light
and life.
MESSAGE
Through this message we wish to
restore the cola coconut image. We
care about the weaknesses of the
drink. We want to show that it can
be no nutritional dangers. the
problem we are addressing are the
nutritional dangers with obesity
because of too much sugar present
in the beverage
COMMUNICATION
POSITIONING

“Coca Cola is the world leader in soda that understands your desires and
your needs by providing multiple product lines lightened in sugar,
without sugar but still with an inimitable taste, and with the joy of
drinking a coca cola”.
COMMUNICATION OBJECTIVES

Improving Make people


coca cola forget their increase brand
image to the misconception visibility
target is about drinking beneficent
tempted
TARGET MARKETS
HEART TARGET :
Men / Women
18/30 years
CSP B/C
rural
Students and active. Followers of social
networks. Always with his friends, or his / her
boyfriend. Always up for new experiences.
Who cares about their health, who balances
their meals. Young, intelligent, who loves good
things but paying attention to them
TARGET MARKETS
TARGET PRINCIPAL
Men/women 15/35
All CSP
Rural but not only
Ready to take the news habits if
we can convice

TARGET RELAY

journalists, bloggers, partners, and


forums / health website that give their
opinion on drinks
KEY MESSAGE

“Coca cola includes consumers concerns about the


dangers nutritionals”.

You might also like