Case Analysis on

Coca Cola: Universal Appeal

Global Business BUS- 503

Prepared for Khan. M. Raziuddin Taufique Assistant Professor FBA of Eastern University

Prepared by

Partha Prati

Bhattachar!ee

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&'(' Sha sudduha Belayeth )e!aul isla (#' (ashud Parves

10 March 01

Coca Cola Life

Begins Here

,etter of -rans ittal

10 March! 01 To Khan. M. Raziuddin Taufique Assistant Professor FBA Eastern University

Sub: Sub ission of Case on Coca Cola Co pany "ear #ir! $e %ou&d &i'e to than' you for (ivin( us the )rivi&e(e of conductin( the case on .Coca Cola: Universal Appeal/ $ithin this short )eriod! %e tried our &eve& *est to +a'e this case a successfu& one. Pre)aration of this case has enriched our conce)tion on the a*ove su*,ect and has he&)ed us in (ettin( a thorou(h understandin( a*out -&o*a& Business. The )ractica& e.)osure %hi&e on this case he&)ed our tea+ of *rid(e the acade+ic %or' and the )ractica& 'no%&ed(e. $e have )re)ared a case on ho% to hand&e the situation +entionin( in the case %hi&e doin( *usiness internationa&&y. A&thou(h it %as not an easy tas'! )articu&ar&y the infor+ation co&&ection )hase %as fu&& of +any tou(h e.)eriences *ut %e en,oyed and &earned a &ot in the )rocess of carryin( out that re)ort. Then %e tried our *est to finish this case accordin( to a&& of your require+ents. $e ho)e this case %i&& +eet your e.)ectations. $e %i&& %e&co+e any c&arification and su((estion re(ardin( this re)ort. #incere&y yours
Partha Prati Bhattachar!ee (#' (ashud Parves 000000000000000 "#: $$3%000+% )e!aul "sla 000000000000000 "#: $$3%0000*

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Acknowledgement

This is too tou(h to )re)are a case study %ithout (uide&ines / he&) of others. For )re)arin( this case study %e too' he&) fro+ so+e )eo)&e. First of a&&! %e %ou&d &i'e to convey our sincerest than's to our course instructor of BU#01023-&o*a& Business41 Khan.M. Raziuddin Taufique. For *ein( )rovided and equi))ed %ith a&& 'ind of 'no%&ed(e and (uide&ines to )re)are this case. $ithout his (uidance and su))ort! so&vin( this case %ou&d *e a &ot +ore difficu&t. The thou(ht and focused (uidance that our instructor has )rovided us fro+ the acade+ic and )rofessiona& )ers)ective he&)ed us i++ense&y %hi&e so&vin( this case. 5n addition! %e %ou&d &i'e to (ive cordia& than's to +y (rou) +e+*ers a. They )rovided us a &ot of re&ated infor+ation a*out 6oca 6o&a 6o+)any. #o %e are rea&&y (ratefu& for their va&ua*&e ti+e! constructive o)inion! su))ort and encoura(e+ent. $hat is he&)fu& to so&ve this case.

Table of Content

Content $'"ntroduction $'$ $'4 4'Choosin2 Strate2y 4'$ 4'4 4'3 4'+ 3'Case Analysis 3'$ 3'4 3'3 3'+ 3'5 +' Conclusion 5' )eco )eference Appendi6 endation 5nternationa& #trate(y of 6oca 6o&a 6o+)etitive advanta(e of 6oca 6o&a Advanta(e and disadvanta(e of 5ndia +ar'et Advanta(e and disadvanta(e of 6hina +ar'et "ou(&as "aft Reco++endation #$7T Matri. 6onfrontation Matri. 6onfrontation ana&ysis 6onc&usion 6ase su++ery 6oca 6o&a overvie%

Pa2e 3o' $ $ 4-$0 $$ $$ $4 $4-$3 $3 $+ $+ $+ $+ $5 $5 $% $% $5 $7

1. Introduction: 6oca co&a is the &ar(est and +ost )rofita*&e soft0drin' co+)any in the %or&d. 5t has a &ar(e nu+*er of +ar'et shares.

1.16ase #u++ary
6oca co&a is the &ar(est and +ost )rofita*&e soft0drin' co+)any in the %or&d. 5ts +a,or co+)etitor is PEP#5 67. 7n A)ri& 11! 1889 "ou(&as :! the President of the Midd&e East ca&&ed a +eetin( a*out farther invest+ent in 5ndia and 6hina *ut the co++ittee is in quandary a*out this to% countries )o&itica& and econo+ic condition. 6oca co&a has so+e internationa& strate(y that0they can a&%ays ta'e ris' in e.istin( +ar'et and a&%ays understood the need to *e first in ne% +ar'ets to (ain the co+)etitive advanta(e. The co+)any;s strate(y for sustainin( its *rand i+a(e is the three P;s0 penetration in the +ar'et)&ace! offerin( the *est price %ith a (reater va&ue and +a'in( coca co&a the preferred *evera(e in every%here. They s)end &ots of +oney for advertisin(. They %ant ca)ture +ore +ar'et over the %or&d. 6oca co&a contro&s the %ea&thy +ar'et of (reater Euro)e and Pe)si co has *een +ore successfu& in e+er(in( +ar'ets such as 5ndia. 6hina and 5ndia has hu(e )o)u&ation and in here forei(n investors %ant to invest +ore +oney. And the econo+ic (ro%th a&so (ood for +ore infor+ation a*out 5ndia and 6hina;s +ar'et "ou(&as : as' those countries 6oca 6o&a senior office to crate to% re)ort on 5ndia and 6hina econo+ic and )o&itica& )osition. "oin( internationa& *usiness coca co&a is very +uch a%are a*out their )roduct and that;s %hy in soft drin's %ar sti&& coca co&a is &eader .

$'4' 8istory of Coca Cola B")-8 9: A );:);S8"3G "#;A The )roduct that has (iven the %or&d its *est0'no%n taste %as *orn in At&anta! -eor(ia! on May ?! 1??9. "r. @ohn #tith Pe+*erton! a &oca& )har+acist! )roduced the syru) for 6oca06o&aA! and carried a ,u( of the ne% )roduct do%n the street to @aco*s= Phar+acy! %here it %as sa+)&ed! )ronounced <e.ce&&ent< and )&aced on sa&e for five cents a (&ass as a soda fountain drin'. 6ar*onated %ater %as tea+ed %ith the ne% syru) to )roduce a drin' that %as at once <"e&icious and Refreshin(!< a the+e that continues to echo today %herever 6oca06o&a is en,oyed. Thin'in( that <the t%o 6s %ou&d &oo' %e&& in advertisin(!< "r. Pe+*erton=s )artner and *oo''ee)er! Fran' M. Ro*inson! su((ested the na+e and )enned the no% fa+ous trade+ar' <6oca06o&a< in his unique scri)t. The first ne%s)a)er ad for 6oca06o&a soon a))eared in The Atlanta Journal! invitin( thirsty citizens to try <the ne% and )o)u&ar soda fountain drin'.< >and0 )ainted oi&c&oth si(ns readin( <6oca06o&a< a))eared on store a%nin(s! %ith the su((estion <"rin'< added to infor+ )assers*y that the ne% *evera(e %as for soda fountain refresh+ent. "urin( the first year! sa&es avera(ed a +odest nine drin's )er day. "r. Pe+*erton never rea&ized the )otentia& of the *evera(e he created. >e (radua&&y so&d )ortions of his *usiness to various )artners and! ,ust )rior to his death in 1???! so&d his re+ainin( interest in 6oca06o&a to Asa -. 6and&er. An At&antan %ith (reat *usiness acu+en! Mr. 6and&er )roceeded to *uy additiona& ri(hts and acquire co+)&ete contro&.

Time line of Coca Cola

1886- 1892
It was 1886, and in New Yor Har!or, wor ers were constructing t"e #tatue of Li!erty. $ig"t "undred %iles away, anot"er great A%erican sy%!ol was a!out to !e un&eiled. Li e %any 'eo'le w"o c"ange "istory, (o"n )e%!erton, an Atlanta '"ar%acist, was ins'ired !y si%'le curiosity. *ne afternoon, "e stirred u' a fragrant, cara%el+ colored li,uid and, w"en it was done, "e carried it a few doors down to (aco!s)"ar%acy. Here, t"e %i.ture was co%!ined wit" car!onated water and sa%'led !y custo%ers w"o all agreed ++ t"is new drin was so%et"ing s'ecial. #o (aco!s)"ar%acy 'ut it on sale for fi&e cents a glass. )e%!erton-s !oo ee'er, /ran 0o!inson, na%ed t"e %i.ture Coca+Cola1, and wrote it out in "is distinct scri't. 2o t"is day, Coca+Cola is written t"e sa%e way. In t"e first year, )e%!erton sold 3ust 4 glassesof Coca+Cola a day. A century later, 2"e Coca+Cola Co%'any "as 'roduced %ore t"an 15 !illion gallons of syru'. 6nfortunately for )e%!erton, "e died in 1888 wit"out reali7ing t"e success of t"e !e&erage "e "ad created. *&er t"e course of t"ree years, 1888+1841, Atlanta !usiness%an Asa 8riggs Candler secured rig"ts to t"e !usiness for a total of a!out 9:,;55. Candler would !eco%e t"e Co%'any-s first 'resident, and t"e first to !ring real &ision to t"e !usiness and t"e !rand.

1893- 1904
Asa 8. Candler, a natural !orn sales%an, transfor%ed Coca+Cola fro% an in&ention into a !usiness. He new t"ere were t"irsty 'eo'le out t"ere, and Candler found !rilliant and inno&ati&e ways to introduce t"e% to t"is e.citing new refres"%ent. He ga&e away cou'ons for co%'li%entary first tastes of Coca+Cola, and outfitted distri!uting '"ar%acists wit" cloc s, urns, calendars and a'ot"ecary scales !earing t"e Coca+Cola !rand. )eo'le saw Coca+Cola e&eryw"ere, and t"e aggressi&e 'ro%otion wor ed. By 184<, Candler "ad !uilt syru' 'lants in C"icago, =allas and Los Angeles. Ine&ita!ly, t"e soda-s 'o'ularity led to a de%and for it to !e en3oyed in new ways. In 184>, a ?ississi''i !usiness%an na%ed (ose'" Bieden"arn !eca%e t"e first to 'ut Coca+Cola in !ottles. He sent 1: of t"e% to Candler, w"o res'onded wit"out ent"usias%. =es'ite !eing a !rilliant and inno&ati&e !usiness%an, "edidn-t reali7e t"en t"at t"e future of Coca+Cola would !e wit" 'orta!le, !ottled !e&erages custo%ers could ta e anyw"ere. He still didn-t reali7e it fi&e years later, w"en, in

1844, two C"attanooga lawyers, Ben3a%in /. 2"o%as and (ose'" B. @"ite"ead, secured e.clusi&e rig"ts fro% Candler to !ottle and sell t"e !e&erage ++ for t"e su% of only one dollar.

1905-1918
#afeguarding t"e !rand I%itation %ay !e t"e sincerest for% of flattery, !ut 2"e Coca+Cola Co%'any was none too 'leased a!out t"e 'roliferation of co'ycat !e&erages ta ing ad&antage of its success. 2"is was a great 'roduct, and a great !rand. Bot" needed to !e 'rotected. Ad&ertising focused on t"e aut"enticity of Coca+Cola, urging consu%ers to A=e%and t"e genuineA and AAcce't no su!stitute.A 2"e Co%'any also decided to create a distincti&e !ottle s"a'e to assure 'eo'le t"ey were actually getting a real Coca+Cola. 2"e 0oot 8lass Co%'any of 2erre Haute, Indiana, won a contest to design a !ottle t"at could !e recogni7ed in t"e dar . In 1416, t"ey !egan %anufacturing t"e fa%ous contour !ottle. 2"e contour !ottle, w"ic" re%ains t"e signature s"a'e of Coca+Cola today, was c"osen for its attracti&e a''earance, original design and t"e fact t"at, e&en in t"e dar , you could identify t"e genuine article. As t"e country roared into t"e new century, 2"e Coca+Cola Co%'any grew ra'idly, %o&ing into Canada, )ana%a, Cu!a, )uerto 0ico, /rance, and ot"er countries and 6.#. territories. In 1455, t"ere were two !ottlers of Coca+ColaB !y 14:5, t"ere would !e a!out 1,555.

1919- 1940
2"e woodruff legacy )er"a's no 'erson "ad %ore i%'act on 2"e Coca+Cola Co%'any t"an 0o!ert @oodruff. In 14:;, four years after "is fat"er $rnest 'urc"ased t"e Co%'any fro% Asa Candler, @oodruff !eca%e t"e Co%'any 'resident. @"ile Candler "ad introduced t"e 6.#. to Coca+Cola, @oodruff would s'end %ore t"an 65 years as Co%'any leader introducing t"e !e&erage to t"e world !eyond. @oodruff was a %ar eting genius w"o saw o''ortunities for e.'ansion e&eryw"ere. He led t"e e.'ansion of Coca+Cola o&erseas and in 14:8 introduced Coca+Cola to t"e *ly%'ic 8a%es for t"e first ti%e w"en Coca+Cola tra&eled wit" t"e 6.#. tea% to t"e 14:8 A%sterda% *ly%'ics. @oodruff 'us"ed de&elo'%ent and distri!ution of t"e si.+'ac , t"e o'en to' cooler, and %any ot"er inno&ations t"at %ade it easier for 'eo'le to drin Coca+Cola at "o%e or away. 2"is new t"in ing %ade Coca+Cola not 3ust a "uge success, !ut a !ig 'art of 'eo'le-s li&es.

1941- 1959
2"e war and its legacy In 14>1, A%erica entered @orld @ar II. 2"ousands of %en and wo%en were sent o&erseas. 2"e country, and Coca+Cola, rallied !e"ind t"e%. @oodruff ordered t"at Ae&ery %an in unifor% gets a !ottle of Coca+Cola for < cents, w"ere&er "e is, and w"ate&er it costs t"e Co%'any.A In 14>;, 8eneral =wig"t =. $isen"ower sent an urgent ca!legra% to Coca+Cola, re,uesting s"i'%ent of %aterials for 15 !ottling 'lants. =uring t"e war, %any 'eo'le en3oyed t"eir first taste of t"e !e&erage, and w"en 'eace finally ca%e, t"e foundations were laid for Coca+Cola to do !usiness o&erseas. @oodruffCs &ision t"at Coca+Cola !e 'laced wit"in Aar%-s reac" of desire,A was co%ing true ++ fro% t"e %id+14>5s until 1465, t"e nu%!er of countries wit" !ottling o'erations nearly dou!led. )ost+war A%erica was ali&e wit" o'ti%is% and 'ros'erity. Coca+Cola was 'art of a fun, carefree A%erican lifestyle, and t"e i%agery of its ad&ertising ++ "a''y cou'les at t"e dri&e+in, carefree %o%s dri&ing !ig yellow con&erti!les ++ reflected t"e s'irit of t"e ti%es.

1960-1981
2"e world of custo%er After D5 years of success wit" one !rand, Coca+Cola1, t"e Co%'any decided to e.'and wit" new fla&ors: /anta1, originally de&elo'ed in t"e 14>5s and introduced in t"e 14<5sB #'rite1 followed in 1461, wit" 2AB1 in 146; and /resca1 in 1466. In 1465, 2"e Coca+Cola Co%'any ac,uired 2"e ?inute ?aid Co%'any, adding an entirely new line of !usiness ++ 3uices ++ to t"e Co%'any. 2"e Co%'any-s 'resence worldwide was growing ra'idly, and year after year, Coca+ Cola found a "o%e in %ore and %ore 'laces: Ca%!odia, ?ontserrat, )araguay, ?acau, 2ur ey and %ore. Ad&ertising for Coca+Cola, always an i%'ortant and e.citing 'art of its !usiness, really ca%e into its own in t"e 14D5s, and reflected a !rand connected wit" fun, friends and good ti%es. 2"e international a''eal of Coca+Cola was e%!odied !y a 14D1 co%%ercial, w"ere a grou' of young 'eo'le fro% all o&er t"e world gat"ered on a "illto' in Italy to sing AI-d Li e to Buy t"e @orld a Co e.A In 14D8, 2"e Coca+Cola Co%'any was selected as t"e only Co%'any allowed to sell 'ac aged cold drin s in t"e )eo'le-s 0e'u!lic of C"ina.

1982- 1989
=iet co e and new co e

2"e 1485s ++ t"e era of legwar%ers, "ead!ands and t"e fitness cra7e, and a ti%e of %uc" c"ange and inno&ation at 2"e Coca+Cola Co%'any. In 1481, 0o!erto C. 8oi7ueta !eca%e c"air%an of 2"e Board of =irectors and C$* of 2"e Coca+Cola Co%'any. 8oi7ueta, w"o fled Castro-s Cu!a in 1461, co%'letely o&er"auled t"e Co%'any wit" a strategy "e called Aintelligent ris ta ing.A A%ong "is !old %o&es was organi7ing t"e nu%erous 6.#. !ottling o'erations into a new 'u!lic co%'any, Coca+Cola $nter'rises Inc. He also led t"e introduction of diet Co e1, t"e &ery first e.tension of t"e Coca+Cola trade%ar B wit"in two years, it "ad !eco%e t"e to' low+ calorie drin in t"e world, second in success only to Coca+Cola.

*ne of 8oi7ueta-s ot"er initiati&es, in 148<, was t"e release of a new taste for Coca+ Cola, t"e first c"ange in for%ulation in 44 years. In taste tests, 'eo'le lo&ed t"e new for%ula, co%%only called Enew Co e.F In t"e real world, t"ey "ad a dee' e%otional attac"%ent to t"e original, and t"ey !egged and 'leaded to get it !ac . Critics called it t"e !iggest %ar eting !lunder e&er. But t"e Co%'any listened, and t"e original for%ula was returned to t"e %ar et as Coca+Cola classic1, and t"e 'roduct !egan to increase its lead o&er t"e co%'etition ++ a lead t"at continues to t"is day.

1990- 1999
New %ar et and !rand 2"e 1445s were a ti%e of continued growt" for 2"e Coca+Cola Co%'any. 2"e Co%'any-s long association wit" s'orts was strengt"ened during t"is decade, wit" ongoing su''ort of t"e *ly%'ic 8a%es, /I/A @orld Cu'G foot!all HsoccerI, 0ug!y @orld Cu' and t"e National Bas et!all Association. Coca+Cola classic !eca%e t"e *fficial #oft =rin of NA#CA0 racing, connecting t"e !rand wit" one of t"e world-s fastest growing and %ost 'o'ular s'ectator s'orts. And 144; saw t"e introduction of t"e 'o'ular AAlways Coca+ColaA ad&ertising ca%'aign, and t"e world %et t"e lo&a!le Coca+Cola )olar Bear for t"e first ti%e. New %ar ets o'ened u' as Coca+Cola 'roducts were sold in $ast 8er%any in 1445 and returned to India in 144;. New !e&erages 3oined t"e Co%'any-s line+u', including )owerade1 s'orts drin , Joo1 c"ildren-s fruit drin and =asani1 !ottled water. 2"e Co%'any-s fa%ily of !rands furt"er e.'anded t"roug" ac,uisitions, including Li%ca1, ?aa7a1 and 2"u%s 6'1 in India, Bar,-s1 root !eer in t"e 6.#., Inca Kola1 in )eru, and Cad!ury #c"we''es-1 !e&erage !rands in %ore t"an 1:5 countries around t"e world. By 144D, t"e Co%'any already sold 1 !illion ser&ings of its 'roducts e&ery day, yet new t"at o''ortunity for growt" was still around e&ery corner.

2000- Now

Coca Cola now In 1886, Coca+Cola1 !roug"t refres"%ent to 'atrons of a s%all Atlanta '"ar%acy. Now well into its second century, t"e Co%'any-s goal is to 'ro&ide %agic e&ery ti%e so%eone drin s one of its %ore t"an <55 !rands. Coca+Cola "as fans fro% Boston to Buda'est to Ba"rain, drin ing !rands suc" as A%!asa, Legita!eta and /rescolita. In t"e re%otest co%ers of t"e glo!e, you can still find Coca+Cola. Coca+Cola is co%%itted to local %ar ets, 'aying attention to w"at 'eo'le fro% different cultures and !ac grounds li e to drin , and w"ere and "ow t"ey want to drin it. @it" its !ottling 'artners, t"e Co%'any reac"es out to t"e local co%%unities it ser&es, !elie&ing t"at Coca+Cola e.ists to !enefit and refres" e&eryone it touc"es. /ro% t"e early !eginnings w"en 3ust nine drin s a day were ser&ed, Coca+Cola "as grown to t"e worldCs %ost u!i,uitous !rand, wit" %ore t"an 1.D !illion !e&erage ser&ings sold eac" day. @"en 'eo'le c"oose to reac" for one of 2"e Coca+Cola Co%'any !rands, t"e Co%'any wants t"at c"oice to !e e.citing and satisfying, e&ery single ti%e.

Coca Cola Brands

Coca cola !rands are di&ided into D grou's t"is are Energy Drinks

/or t"ose wit" a "ig"+intensity a''roac" to life, our !rands of energy drin s contain ingredients suc" as ginseng e.tract, guarana e.tract, caffeine and B &ita%ins. Juices

Coca cola !ring inno&ation to t"e goodness of 3uice in our %ore t"an 155 3uice and 3uice drin !rands, offering !ot" adults and c"ildren nutritious, refres"ing and fla&orful !e&erages. Soft Drinks

=o7ens of soft drin !rands 'ro&ide fla&or and refres"%ent in a &ariety of c"oices. /ro% t"e original Coca+Cola to %ost recent introductions, soft drin s fro% 2"e Coca+Cola Co%'any are !ot" icons and inno&ators in t"e !e&erage industry.

Sport Drinks

Car!o"ydrates, fluids, and electrolytes tea% toget"er in our s'orts drin s, 'ro&iding ra'id "ydration and terrific taste for fitness+ see ers at any le&el.

Tea and Coffee

Bottled and canned teas and coffees 'ro&ide consu%ers- fa&orite drin s in con&enient ta e+anyw"ere 'ac aging, satisfying !ot" traditional tea drin ers and today-s growing coffee culture

Water

#%oot" and essential, our waters and water !e&erages offer "ydration in its 'urest for%.

Other Drinks

#o %uc" %ore t"an soft drin s, our !rands also include %il 'roducts, sou', and %ore. #o you can c"oose a Coca+Cola Co%'any 'roduct anyti%e, anyw"ere, for nutrition, refres"%ent or ot"er needs.

#u%%ary

Traded as Industry Founded Founder(s) Head uarte rs !rea ser"ed #ey peop$e %roducts &e"enue Operating inco'e (et inco'e Tota$ assets Tota$ e uity E'p$oyees Su)sidiaries We)site

NY#$: K* =ow (ones Co%'onent #M) <55 Co%'onent Be&erage 184: Asa Candler Coca+Cola "ead,uarters, Atlanta, 8eorgia, 6.#. @orldwide ?u"tar Kent HC"air%an M C$*I List of 2"e Coca Cola Co%'any 'roducts 6#9 ;<.114 !illion H:515IN1O 6#9 8.>>4 !illion H:515IN1O 6#9 11.854 !illion H:515IN1O 6#9 D:.4:1 !illion H:515IN1O 6#9 ;1.;1D !illion H:515IN1O 1;4,655 H:515IN1O List of 2"e Coca Cola Co%'any su!sidiaries 2"eCoca+ColaCo%'any.co%

CS) of coca cola

Wor$d *i$d$ife fund 3$$F4 is the %or&d;s &eadin( conservation or(anization! %or'in( in

100 countries! and su))orted *y near&y five +i&&ion +e+*ers (&o*a&&y. #trivin( to *ui&d a future in %hich )eo)&e &ive in har+ony %ith nature! $$F;s +ission is to conserve nature and reduce the +ost )ressin( threats to the diversity of &ife on Earth. By 0 0! $$F see's to conserve 11 of the %or&d;s +ost eco&o(ica&&y i+)ortant re(ions *y %or'in( in )artnershi) toB

Protect and restore s)ecies and their ha*itats #tren(then &oca& co++unities= a*i&ity to conserve the natura& resources they de)end u)on Transfor+ +ar'ets and )o&icies to reduce the i+)act of the )roduction and consu+)tion of co++odities Mo*i&ize hundreds of +i&&ions of )eo)&e to su))ort conservation

Fro+ )rotectin( endan(ered s)ecies and e+)o%erin( )eo)&e to conserve natura& resources to co&&a*oratin( %ith (overn+ent a(encies! $$F %or's at a&& &eve&s to )rotect the future of nature.

$hi&e fresh%ater ecosyste+s are a to) )riority in $$F;s %or'! the *readth and de)th of their %or' affects a&& as)ects of nature. Rea&izin( the strate(ic va&ue of co&&a*oration! our 6o+)any announced a transfor+ationa& )artnershi) %ith $$F on @une 1! 00C to %or' to%ard conservin( and )rotectin( fresh%ater resources around the %or&d. 7ver the years! our )artnershi) has *&osso+ed. By %or'in( to(ether to%ard a co++on (oa& and co+*inin( our internationa& stren(ths and resources! %e *e&ieve %e can do (reat thin(s and continue to advance fresh%ater conservation throu(hout the . $ater ste%ardshi) To *e res)onsi*&e ste%ards of the %ater %e use! %e are *eco+in( +ore efficient in our %ater use *y reducing the a+ount %e use )er &iter of )roduct! even as %e increase our )roduction vo&u+e. $e are recyc&in( %aste%ater! so+eti+es returnin( it c&eaner than %e found it. And %e are replenishing! or offsettin(! the %ater used in our finished *evera(esDan esti+ated 2 )ercent 1 so far. $e *e&ieve the %or&d contains enou(h %ater to +eet individua&! eco&o(ica&! a(ricu&tura& and *usiness needs! *ut on&y if everyone %or's to *etter +ana(e %ater resources. As a consu+er of %ater and as a co+)any %ith a )resence that is at once (&o*a& and &oca&! %e have a )articu&ar o*&i(ationDand a unique o))ortunityDto *e a res)onsi*&e ste%ard of this +ost )recious of resources. >ere is ho% %e are %or'in( to do our )art.

4' Choosin2 Strate2y 5n )ara(ra)h .1 there %i&& *e a #$7T +atri. )resented and after this the confrontation +atri. can *e (iven in )ara(ra)h . . 5n )ara(ra)h .2 confrontation +atri. ana&ysis is (iven.

4'$. Ta*&e 1B #$7T Ana&ysis of 6oca 6o&a 6o+)any

Stren2th

<ea=ness

#1B %or&d;s &eadin( *rand # B &ar(e sca&e of o)erations #2B Ro*ust revenue (ro%th

$1B :e(ative )u*&icity $ B #&u((ish )erfor+ance in :orth A+erica $2B "ec&ine cash fro+ o)erations

9pportunity

-hreat

71B Acquisition intense co+)etition 7 B -ro%in( *ott&e %ater +ar'et 72B (ro%in( )o)u&ations

T1B 5ncreasin( co+)etition T B de)endin( in *ott&in( )artners

4'4' Confrontation

atri6

5n the confrontation +atri. the different stren(th! %ea'ness! o))ortunities and threats are confronted %ith each other. 5t is *ui&t in the *asis of the #$7T +atri.B Ta*&e0 B 6onfrontation +atri. of 6oca 6o&a 71 #1 # >> > 7 >> > 72 >> 0 T1 > T 0 +, +-

#2 $1 $ $2

0 >> >3

> 0 > >+

>> 0 0 0 >+

> -> ->3

-0 -5

+. /0 /. /1

4'3' Confrontation S$? 9$@ A>>B

atri6 analysis

As coca co&a is the &eadin( *rand and acquisition intense co+)etition is +ore i+)ortant to (ain the +ar'et share and coca co&a have this a*i&ity.

S$? 94@ A>>B

Bott&e %ater +ar'et is *oo+in( and as 6oca 6o&a is a %e&& 'no%n *rand it;s easy for than to ho&d the hi(hest +ar'et share.

S$ ? 93@ A>>B
-ro%in( )o)u&ation +eans nu+*er of )otentia&s custo+er are increasin( and as the &eader of +ar'et )eo)&e +ust thin' a*out 6oca 6o&a )roducts.

S4 ? 9$ @ A>B Acquisition of co+)etition is a very vita& )oint of *eat co+)etitors and coca co&a are (ood in this. S4 ? 9$@ A>B To ca)ture ne% +ar'et a &ar(e sca&e is %i&& *e he&)fu&. S3 ? 94 @ A>B As coca co&a;s +ar'et revenue is (ro%in( and enterin( in a ne% +ar'et %i&& increasin( +ore revenue for the co+)any.

<4 ? 9$ @ A>B As coca co&a;s +ar'et %ho&e %or&d so a &itter *ad )erfor+ance %i&& not effect on its co+)etition. <4 ? 94 @ A>B 6oca 6o&a is a &eader in his +ar'et so if he effort &itt&e in :orth A+erica than the ho&e %ater +ar'et %i&& *e his. S$ ? -$ @ A-B $e 'no% that 6oca 6o&a is +ar'et &eader in soft0drin' +ar'et *ut in this day;s Pe)si co is *eco+e +a,or co+)etitor of 6oca 6o&a 6o+)any so this is a +a,or threat for the co+)any.

4'+' Conclusion
By this +atri. %e understand that 6oca 6o&a 6o+)any have so+e %ea'ness and have so+e threats. 5f the co+)any fu&fi&&s the &i'in(s than the co+)any %i&& *e +ore secure in the +ar'et.

3' Case Analysis

3'$' Strate2ic "ssue C $ coca cola international strate2y 6oca co&a internationa& strate(y is they are ready to ta'e ris' in e+er(in( +ar'et and they understood the need to *e the first in ne% +ar'et to (ain the co+)arative advanta(e.

3'4' Strate2ic "ssue C 4 co petitive advanta2e does Coca-Cola has over its

a!or rival Pepsi

6oca06o&a;s co+)etitive advanta(e over Pe)si is that since 18?8 u) to 188E! its +ar'et share is (reater than that of Pe)si. 6oca06o&a has esta*&ished its )osition in the forei(n +ar'et for over a decade. 5t has a&so invested heavi&y in *ott&in( o)erations to +a.i+ize its efficiency of )roduction and +ar'etin(. They a&%ays ai+ to (et invo&ved in the *ott&in( *usiness to fue& continued (ro%th. 6oca06o&a has the fo&&o%in( criteria for +a'in( a *ott&in( invest+ent. The coca co&a trade+ar' is inva&ua*&e. 5f a&& of the co+)any assts *urned to the (round today it %ou&d have no trou*&e *orro%in( the +oney to re*ui&d *ased on the stren(th of its trade+ar' a&one. 5ts *rand is )ervasive around the %or&d. 6oca co&a co+)any stron( *rand in the %or&d +ar'et. 6oca co&a co+)any co++it+ent to *ui&din( and sustainin( its *rand i+a(e is indicated *y the a+ount of +oney it s)ends on +ar'etin( . for instance in 1881 the co+)any s)ent 2.? *i&&ion for +ar'etin(. Ad s)endin( %hich is sti&& considered one of the *est too&s for *ui&din( *rand equity %as F1.2 *i&&ion. 5ts +a,or riva& Pe)so co+)any s)ent ++ore on advertisin( at F1.? *i&&ion *ut had to a&&ocate for these funds for its restaurant and snac' food se(+ents as %e&&. 3'3' Strate2ic issue C 3 the pros and cons Coca Cola invest ent further in "ndia Advanta2e of "ndia ar=et:-

ar=et

>u(e )o)u&ation a*out 829 +i&&ions The )er ca)ita consu+)tion rate is 6oca co&a (a&&on sa&es %ere u) to 1G Econo+ic (re% at 9G and ? +i&&ion ne% ,o*s are crated #isadvanta2e of "ndia ar=et:-

5nf&uence of )o&itica& )arty in the &oca& +ar'et Under )overty &ine is hi(h Peo)&e have anti+u&tinationa& senti+ent

3'+' Strate2ic "ssue C + the pros and cons Coca Cola invest ent further in China Advanta2e in ChinaDs ar=et:-

ar=et

-ood nu+*er of )o)u&ation a*out 1. *i&&ions 2 )&ant in china -a&&on sa&es (re% a&+ost every year

Peo)&e of 6hina &i'e (ood *rand Their inco+e rate and consu+)tion rate ra)id&y increasin( #isadvanta2e of China ar=er

5n china have so+e econo+ic )o&itics -overn+ent i+)oses hi(h ta. rate in forei(n *rands 3'5' Strate2ic "ssue C 5 )eco

endation #ou2las on e6ecutive co

ittee

6oca co&a shou&d (o for +ore invest+ent in 6hina *ecause the )o)u&ation of 6hina is +ore than 5ndia and the econo+ic (ro%th are hi(h in 6hina. Peo)&e of 6hina &i'e (ood *rand and they ready to )ay hi(h for that. The consu+)tion rate is a&so hi(h and 6hina )eo)&e don;t have anti+u&tinationa& e+otion &i'e 5ndia.

4. Conclusion
Ri(ht this +o+ent the )resent %or&d is i+a(inin( a (&o*a& vi&&a(e. 7ne sin(&e +ar'et. 7ne or(anization can sa&e their )roduct a&& over the %or&d. 6oca 6o&a is an A+erican +u&tinationa& *evera(e cor)oration and +anufacturer! retai&er and +ar'eter of non0a&coho&ic *evera(e concentrates and syru)s.H I The co+)any is *est 'no%n for its f&a(shi) )roduct 6oca06o&a! invented in 1??9 *y )har+acist @ohn #tith Pe+*erton in 6o&u+*us! -eor(ia.H2I The 6oca06o&a for+u&a and *rand %as *ou(ht in 1??8 *y Asa 6and&er %ho incor)orated The 6oca06o&a 6o+)any in 1?8 . Besides its na+esa'e 6oca06o&a *evera(e! 6oca06o&a current&y offers +ore than 100 *rands in over 00 countries or territories and serves over 1.C *i&&ion servin(s each day.

5. Recommendation
6oca 6o&a shou&d %or' to erase ne(ative )u*&icity :eed to decries de)endency on *ott&in( )artners and (o for %on *ott&in( )&ant. Provide sufficient cash in o)erations :eed +ore invest+ent in 6hina.

References

Appendix
Case uestion 1. @"at is coca cola international strategyP :. @"at co%'etiti&e ad&antage does Coca+Cola "a&e o&er its %a3or ri&al )e'siP ;. @"at are t"e 'ros and cons Coca Cola in&est%ent furt"er in India %ar et

>. @"at are t"e 'ros and cons Coca Cola in&est%ent furt"er in C"ina %ar et 1. $hat shou&d "ou(&as "aft reco++end to the senior e.ecutive co++ittee concernin( further invest+ent in the e+er(in( +ar'et of china and 5ndiaJ $hyJ