PRESENTATION ON STRATEGIC MANAGEMENT OF COCA COLA

Coca-cola
Market Leadership:- Coca-Cola is the largest bottler of Coca-Cola trademark beverages in the world in terms of total sales volume, with operations in Mexico, Argentina, Brazil and etc Strong brand portfolio: a one-stop shop for its retailers by offering a complete beverage portfolio including carbonated soft drinks, bottled water,

juices, orangeades, isotonics, teas, energy drinks,

milk, coffee and even beer in some markets such as Brazil.

Coca Colas mission statement

To refresh the world
To inspire moments of optimism and happiness To create value and make a difference

Now they are moving from :

Creative Excellence to Content Excellence

This part consider both the internal and external influence on coca cola planning. marketing

The macro environment is analyzed using the

PESTEL framework.

 Political

Factors:

Economic

Coca cola operates globally and their performance is influenced by the political stability and instability of these countries.

factors

High inflation in any of the countries will cause the price of coca cola to raise and consumption of coca cola may fall.

Social

factors

Technological

Consumers in the different countries will have different taste and perception about coca cola.

factors

The current environment is technological driven and the need for dynamic innovation. Coca cola has got competent research and development team who discover new technologies to improve productivity.

 Environmental

Legal

Coca colas operations results in environmental footprints. They aim at reducing them in their areas of operations to gain brand image. Coca cola plant relies heavily on electricity for production. They generate alternative power to reduce this reliance. Coca cola is given the copy right to operate and is the only company that can produce and sell coca cola in all countries. Several countries have laws regulating how companies should operate and coca cola is a law abiding corporate citizen.

factors

The micro-environment can be analyzed using porters five forces. These forces determines the attractiveness of cold drinks industry. Threats of new entry.

This appears to be very low in this industry as there is exclusivity of right for coca cola to operate in some geographical locations. Ti is also capital intensive and require huge investment. This serves as a barrier to entry. Brand loyalty from customers serves as a barrier to entry. Economy of scale and scope also serve as a barrier to entry.

Threat of substitutes

Bargaining power of suppliers

Fruits and vegetable juices are closed substitutes for the industry. For health concerns, many choose to consume organic fruit juice.

Bargaining power of customers(B2B)

This also appears to be weak as suppliers products(e.g. sugar) are basic commodities and ingredients. Coca cola buys in bulk and rather has power over suppliers.
This appears to strong as customers are mainly large supermarkets and retailer. They have the power to negotiate price down to reduce coca cola profitability .

 Competitive

rivalry

There are currently three major players in the cold drink industry. Coca cola Pepsi cola Cadbury Schweppes Coca cola has got dominant position. There are currently growing markets and niches that can be exploited so competition is not so keen.

Men

Money

The experienced employees of coca cola will help in introducing the new product. The new product development will require finance for developing and launching it. Coca cola is financially sound.

 Markets

Make-ups

Coca cola has experiences to market the product to target customers, market exist and can be reached.
The culture influences how coca cola considers this new ideas and opinions. the culture at coca cola encourages new ideas for growth.

 Management

Machine

Management are experienced and successful in launching new products. Coca cola own plant & equipment and franchisees.
Good relationship with suppliers.

Materials

Transforming our commercial models to focus on our customers value potential and using a value-based segmentation approach to capture the industrys value potential, Implementing multi-segmentation strategies in our major markets to target distinct market clusters divided by consumption occasion, competitive intensity and socioeconomic levels; Implementing well-planned product, packaging and pricing strategies through different distribution channels; Driving product innovation along our different product categories and Achieving the full operating potential of our commercial models and processes to drive operational efficiencies throughout our company.

LOW COST-HIGH VOLUME STRATEGY

Industry estimates for the January to September 2012 period indicate that the top 2 soft drinks brands are from the Coca-Cola stable. But brand Coke, the world's most consumed soft drink, doesn't figure amongst those top 2. Coca-Cola is now counting on the 'meals' campaign to ramp up volumes of its global flagship cola, which languishes at No 4 in the pecking order. The top 2 are Thums Up and lemon-lime flavored Sprite, both brands from the Coca-Cola India stable; global rival PepsiCo is at No 3.

The price of Coke concentrate has been consciously kept lower than that of Thums Up to spur bottling of the global cola, confirms a top official within its bottling business who did not want to be named. This summer, the company had dropped the price of Coke in 200 ml returnable glass bottles to Rs 8 from Rs 10 in big markets like Mumbai, Tamil Nadu, Gujarat and Karnataka; the prices of other soft drinks in the Coca-Cola stable were not tinkered with. "Bringing the price down to Rs 8 for glass bottles is unprofitable. But the company wants volume gains for Coke, even if the bottling business' profits are compromised," the beverage maker has only mentioned growth numbers of only brand Coke. "If brand Coke does well, it is perceived by headquarters as The Coca-Cola Company is doing well... it reflects on shareholder sentiment as well,"

Brand Mapping