Coca Cola Strategy Formulation 473k6a

Type

Soft Drink (Cola)

Manufacturer

The Coca- Cola Company

Founder (s)

John S. Pemberton

Country of Origin

United States

Introduced

1886

Area Served

Over 200 countries Cola, Cola Green Tea, Cola Lemon, Cola Lemon Lime, Cola Lime, Cola Orange and

Flavors

Cola Raspberry.

Employees Servings per Day

92,400 1.6 Billion

1•

2•

3•

4•

Coca-Cola was first sold to the public in Atlanta at Jacob’s Pharmacy Only 9 servings of the soft drink were sold each day Sales for the first year were only $50 Today it has 3000 brands-200 nations

VISION

VISION

MISSION To refresh the world in body, mind and spirit 2• To inspire moments of optimism through our brands and our actions 3• To create value and make a difference everywhere we engage. 1•

VALUES 1• 2• 3• 4• 5• 6•

Leadership: The courage to shape a better future Collaboration: Leverage collective genius Integrity: Be real ability: If it is to be, it's up to me ion: Committed in heart and mind Diversity: As inclusive as our brands

7•

Quality: What we do, we do well

Coca-Cola Bottles 1894 was the first time Coca-Cola was bottled 1894- early 1900s

1905-1916

1915- today

EXTERNAL ENVIRONMENT

ENVIRONMENTAL ANALYSIS

PO LITI CA L AN AL YSI S EC ON OM IC ANALYSIS

LEGAL ANALY SIS

TECHN OLOGY ANLYSIS

INDUSTRY ANALYSIS 1•

2•

3•

The food and beverage industry encomes harvesting, processing, milling, packaging, transport and distribution of products to consumers. In 1999, the value of food and beverage industry shipments reached an estimated $487 billion. The needs that customer might be seeking to satisfy are: 1∙ Physiological: the need of special food items 2∙ Economic: the need for good value for the price paid 3∙ Social: a friendly atmosphere, to express feelings frankly 4∙ Psychological: the need for enhancement of self‐ esteem 5∙ Convenience: the desire for someone else to do the

work.

PORTER’ s FIVE FORCEs MODEL Potential entrants Threat of new entrants

Bargaining power of suppliers

Industry competitors

Supplier s

Buyers Rivalry among existing firms Threat of

Bargaining power of buyers

substitute s

Substitute products

COMPANY ANALYSIS REVENUE years

20 11

20 10

20 09

20 08

20 07

Revenue

46.54B 35.12B 30.99B 31.94B 28.86B

Gross profit operating income

28.33B 22.43B 19.90B 20.57B 18.54B

Net income

8.572B 11.81B 6.824B 5.807B 5.981B

10.15B 8.499B 8.231B 8.446B 7.252B

coca cola

pepsi.co

othe rs

5%

35% 60%

Product Portfolio of CCI

others 15% kinle y 11% sprite 10%

coca cola 17%

STRATEGIES 1•

2•

3•

4•

5•

6•

Differentiated Marketing Customer satisfaction Endorsement of celebrities Reasonably priced Consumer connecting ments Availability in every local market

Future plans 1•

2•

3•

Increasing the per capita consumption of its beverages Expanding its distribution networks Leading the beverage revolution in India

COMPETITO RS

Competitors Analysis 1• 2•

3•

4•

5•

Competitors: PepsiCo, Parle Agro Products Pepsi gives tough fight with almost similar investment, ment, Strategies and Products Parle resurges with refreshing drinks as Appy Fizz, Fruity, LMN PepsiCo also has a snack product line including Lays, Cheetos and Quaker OAT’s PepsiCo provide carbonated drinks, Fruit Drinks and Packaged Drinking Water.

Comparison of financial highlights COMPANY NAME

Profit Margin Asset Turnover Return on Assets Earning Per Share

Coca cola

Pepsi.co

33.768046

10.958194

0.577

1.071

19.506218

11.736928

5.12

3.97

Comparison b/w Coke vs. Pepsi slice 20%

cola pep si 45 %

35%

mazza 80%

thum sup 20% mirinda 25%

fanta 75%

lemon mirinda 20%

limc a 80 %

everve ss 50%

kinle y 50%

7up

25%

y 80% sp rit e 7 5 %

Aquafina 20%

kin el

Questio n

Mark HIGH

LOW

STA R

CAS H CO W

DO G