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REPORT OF COCACOLA

SUBMITTED TO:
DR AYESHA SHOUQAT

SUBMITTED BY:

AFTAB ARSHAD 06
ABDULLAH KARIM 09

DEPARTMENT OF COMMERCE

ISLAMIA UNIVERSITY OF BAHAWALPUR


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Acknowledgement
All praise to ALMIGHTY ALLAH alone, the omnipresent and the most
merciful and compassionate. The words are bound, knowledge is limited
and time is short to express His dignity. It is one of infinite blessings of
ALLAH that he bestowed me with the potential and ability to contribution
towards the deep oceans of knowledge already existing. I pay hum-age to
greatest personality of the universe; HOLY PROPHET HAZARAT
MUHAMMAD (PBUH) who is forever torch bearer and spring of
guidance in every sphere of life. I am deeply indebted and also express
my gratitude to my respected madam DR AYESHA SHOUQAT for her
support. Last, but not least we are thankful to all the mates at ISLAMIA
UNIVERSITY especially our Essential for International Business fellows
who supported us a lot. We could not achieve what little we have without
the support of all of them.

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TABLE OF CONTENTS

Sr.# Contents Page. #


1 The Coca-Cola Company 5
2 Mission, Vision & Values 05-7
3 History 7
4 Acquisitions 7
5 Revenue and sales 8-9
6 Swot Analysis 10-12
7 Competitive Analysis 12
8 Coca-Cola products 13
9 Strategies 14-17
10 Marketing mix of Coca Cola 16
11 Management structure 18
12 Organizational structure 19

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1-The Coca-Cola Company
The Coca-Cola Company is an American corporation, and manufacturer, retailer, and marketer
of nonalcoholic beverage concentrates and syrups. The company is best known for its flagship
product Coca-Cola, invented in 1886 by pharmacist John Stith
Pemberton in Atlanta, Georgia. The Coca-Cola formula and brand were bought in 1894 by Asa
Griggs Candler (December 30, 1851 – March 12, 1929), who incorporated The Coca-Cola
Company. The company—headquartered in Atlanta, Georgia, but incorporated in Wilmington,
Delaware has operated a franchised distribution system since 1889: the Company only produces
syrup concentrate, which is then sold to various bottlers throughout the world who hold exclusive
territories. The company owns its anchor bottler in North America, Coca-Cola Refreshments.
The company's stock is listed on the NYSE and is part of DJIA, the S&P 500 index, the Russell
1000 Index, and the Russell 1000 Growth Stock Index. Muhtar Kent serves as chairman of the
company with James Quincey as president and chief executive officer.

2-Mission, Vision & Values


The world is changing all around us. To continue to thrive as a business over the next ten years
and beyond, we must look ahead, understand the trends and forces that will shape our business in
the future and move swiftly to prepare for what's to come. We must get ready for tomorrow today.
That's what our 2020 Vision is all about. It creates a long-term destination for our business and
provides us with a "Roadmap" for winning together with our bottling partners.

2.1-AOur Mission:
Our Roadmap starts with our mission, which is enduring. It declares our purpose as a company
and serves as the standard against which we weigh our actions and decisions.

 To refresh the world...


 To inspire moments of optimism and happiness...
 To create value and make a difference.

2.2-Our Vision:
Our vision serves as the framework for our Roadmap and guides every aspect of our business by
describing what we need to accomplish in order to continue achieving sustainable, quality growth.

 People: Be a great place to work where people are inspired to be the best they can be.
 Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and
satisfy people's desires and needs.
 Partners: Nurture a winning network of customers and suppliers, together we create
mutual, enduring value.
 Planet: Be a responsible citizen that makes a difference by helping build and support
sustainable communities.

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 Profit: Maximize long-term return to shareowners while being mindful of our overall
responsibilities.
 Productivity: Be a highly effective, lean and fast-moving organization.

2.3-Our Winning Culture:


Our Winning Culture defines the attitudes and behaviors that will be required of us to make our
2020 Vision a reality.

2.4-Live Our Values:


Our values serve as a compass for our actions and describe how we behave in the world.

 Leadership: The courage to shape a better future


 Collaboration: Leverage collective genius
 Integrity: Be real
 Accountability: If it is to be, it's up to me
 Passion: Committed in heart and mind
 Diversity: As inclusive as our brands
 Quality: What we do, we do well

2.5-Focus on the Market:

 Focus on needs of our consumers, customers and franchise partners


 Get out into the market and listen, observe and learn
 Possess a world view
 Focus on execution in the marketplace every day
 Be insatiably curious

2.6-Work Smart:

 Act with urgency


 Remain responsive to change
 Have the courage to change course when needed
 Remain constructively discontent
 Work efficiently

2.7-Act like Owners:

 Be accountable for our actions and inactions


 Steward system assets and focus on building value
 Reward our people for taking risks and finding better ways to solve problems
 Learn from our outcomes -- what worked and what didn’t

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2.8-Be the Brand

 Inspire creativity, passion, optimism and fun

3-History
In 1886, pharmacist John Pemberton from Columbus, Georgia invented the original Coca-Cola
drink and sold it as a medicinal beverage. Pemberton's bookkeeper, Frank M. Robinson, is credited
naming the products and creating its logo. Robinson chose the name Coca-Cola because of its two
main ingredients (coca leaves and kola nuts) and because it sounded like an alliteration. John
Pemberton had taken a break and left Robinson to make, promote, as well as sell Coca-Cola on his
own. He promoted the drink the best he could with the limited budget that he had and succeeded.
In 1894, American businessman Asa Candler purchased the company from Pemberton's heirs with
the intent to advertise and sell it as a beverage to regular consumers. Candler was one of the first
businessmen to use merchandising in his advertising strategy. By 1895, Coca-Cola was being sold
in every state in the union. Coca-Cola’s first ad read "Coca Cola. Delicious! Refreshing!
Exhilarating! Invigorating!"
As of 1948, Coca-Cola had claimed about 60% of the market share. In 1919, the company was
sold to Ernest Woodruff's Trust Company of Georgia. By 1984, The Coca-Cola Company's market
share decreased to 21.8% due to new competitors, namely Pepsi, being released.
4-Acquisitions
The company has a long history of acquisitions. Coca-Cola acquired Minute Maid in 1960 and in
1982, it acquired the movie studio Columbia Pictures for $692 million but Columbia was sold
to Sony for $3 billion in 1989. It acquired the Indian cola brand Thums Up in 1993, and Barq's in
1995. In 2001, it acquired the Odwalla brand of fruit juices, smoothies, and bars for
$181 million. In 2007, it acquired Fuze Beverage from founder Lance Collins and Castanea
Partners for an estimated $250 million. The company's 2009 bid to buy a Chinese juice maker
ended when China rejected its $2.4 billion bid for the Huiyuan Juice Group, on the grounds the
resulting company would be a virtual monopoly. Nationalism was also thought to be a reason for
aborting the deal.
In 2011, it acquired the remaining stake in Honest Tea, having bought a 40% stake in 2008. In
2013, it finalized its purchase of ZICO, a coconut water company. In August 2014, it acquired a
16.7% stake in Monster Beverage for $2.15 billion with an option to increase it to 25%, as part of
a long-term strategic partnership that includes marketing and distribution alliance, and product line
swap. In 2015, the company took a minority stake ownership in the cold pressed juice
manufacturer, Suja Life LLC. In December 2016, it bought many of the former SABMiller's Coca-
Cola operations. On 31 August 2018, it agreed to acquire Costa Coffee from Whitbread for £3.9bn
and is expected to go through in the first half of 2019.

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5-Revenue and sales

The Coca-Cola Company's Minute Maid group North America offices in Sugar Land Town
Square, Sugar Land, Texas, United States
According to The Coca-Cola Company's 2005 Annual Report, the firm at that time sold beverage
products in more than 200 countries. he 2005 report further states that of the more than 50 billion
beverage servings of all types consumed worldwide, daily, beverages bearing the trademarks
owned by or licensed to Coca-Cola account for approximately 1.5 billion. Of these, beverages
bearing the trademark "Coca-Cola" or "Coke" accounted for approximately 78% of the company's
total gallon sales. According to the 2007 Annual Report, Coca-Cola had gallon sales distributed as
follows: 43% in the United States, 37% in Mexico, India, Pakistan, Brazil, Japan, and the People's
Republic of China, and 20% spread throughout the rest of the world. The figure in 2010 showed
that they sold 1.6 billion drinks every day.
In 2010, it was announced that Coca-Cola had become the first brand to top £1 billion in annual
UK grocery sales. In 2017, Coke sales were down 11% from a year earlier due to consumer tastes
shifting away from sugary drinks and health risks associated with artificial sweeteners in diet
drinks.

Revenue Net income Price per Share


Year Employees
in mil. USD$ in mil. USD$ in USD$

2000 17,354 2,177 17.11

2001 17,545 3,969 15.24

2002 19,394 3,050 15.82

2003 20,857 4,347 14.28

2004 21,742 4,847 15.34

2005 23,104 4,872 14.47

2006 24,088 5,080 15.26

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2007 28,857 5,981 19.24 90,500

2008 31,944 5,807 19.71 92,400

2009 30,990 6,824 18.49 92,800

2010 35,119 11,787 22.12 139,600

2011 46,542 8,584 26.84 146,200

2012 48,017 9,019 30.70 150,900

2013 46,854 8,584 33.78 130,600

2014 45,998 7,098 35.82 129,200

2015 44,294 7,351 37.29 123,200

2016 41,863 6,527 40.63 100,300

2017 35,410 1,248 42.80 61,800

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6-SWOT ANALYSIS

6.1-Strengths:
 Brand Equity – Interaaabrand 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
– Pepsiand 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.

6.2-Weaknesses:
 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 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

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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.

6.3-Opportunities:

 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 environments 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 Kinley’s 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.

6.4-Threats:
 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.

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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.

7-Competitive Analysis

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8-Coca-Cola products

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9-Startegies

9.1-Marketing strategy of Coca cola – Coca cola marketing strategy:


Coca Cola is world’s leading soft drink maker and operates in more than 200 countries around the
world. It sells a variety of sparkling and still beverages. It generates 60% of its revenue and about
80% of its operating profit from outside the United States. It has strong brand recognition across
the globe. According to business insider, approximately 94% of the world population is aware of
the red & whitA.1e logo of Coca Cola.

9.2-Segmentation, targeting, positioning of Coca Cola:


Segmentation helps the brand to define the appropriate products for specific customer group; Coca
Cola doesn’t target a specific segment but adapts its marketing strategy by developing new
products.

Similarly it uses mix of undifferentiated & mass marketing strategies as well as niche marketing
for certain products in order to drive sales in the competitive market. Its Cola is popular worldwide
& is liked by people of all age group while the diet coketargets niche segment for people who are
more health conscious.

Coca Cola uses competitive positioning strategy to be way ahead of its competitors in the Non-
alcoholic beverages market.

9.3-Distribution strategy in the Marketing strategy of Coca Cola :


It uses several sales and distribution models depending on market, geographic conditions and the
customer’s profile:

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(1) The pre-sale system, which separates the sales and delivery functions, permitting trucks to be
loaded with the mix of products that retailers have previously ordered, thereby increasing both
sales and distribution efficiency,

(2) The conventional truck route system, in which the person in charge of the delivery makes
immediate sales from inventory available on the truck,

(3) A hybrid distribution system, where the same truck carries product available for immediate
sale and product previously ordered through the pre-sale system,

(4) The telemarketing system, which could be combined with pre-sales visits and

(5) Sales through third-party wholesalers of the products.

9.4-Brand equity in the Marketing strategy of Coca Cola:


Coca Cola is the one brand which is recognized by everyone around the globe. When we talk about
brand equity then it is its value & it’s about stories, memories, associations, and human connections
(although of course, these connections would have been very carefully and deliberately engineered
by talented marketers over many years and countless board meetings).

This is something that Coca-Cola has been the master of for over 100 years. This equity is derived
from people’s willingness to pay a premium for the brand and an unwillingness to accept
substitutes. Coca-Cola’s marketing strategy has always been to associate happiness, positivity
and the good life with their products, & that’s how they are able to create high TOMA
(Top of mind awareness).

9.5-Competitive analysis in the Marketing strategy of Coca Cola:


Big Giants in the Non-alcoholic beverages segment have similar strategy & objectiveswhich
means innovation & creative marketing campaigns can help the companies to differentiate from
each other. Competition from the local players is the other major issue that company is facing now
days. Pepsi is the single largest main competitor of Coca-Cola having products across the
segments.

9.6-Market analysis in the Marketing strategy of Coca Cola:


Non-alcoholic beverages market is ever-growing industry & with the advent of growing Asian
markets & developing nations the consumption will be higher also due to the changing

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lifestyle, economic conditions & changing buying habits. In this industry customer have got lots
of options ranging from water to tea/coffee to soft drinks, so chances of customer switching to
another brand is high. The only way to differentiate products & retain customers is the strong brand
building, and creating pull in the market.

Customer analysis in the Marketing strategy of Coca Cola – Coca cola targets a mass market.
And the customer expectation is low price, great taste, convenience & accessibility and various
options to choose from.

10-Marketing mix of Coca Cola


Coca cola is the brand with the highest brand equity. No doubt it has gone through the ups and
downs of business to reach that position. The marketing mix of Coca cola has been changing over
time with more and more products being added such that today it has 3300 products. So what is
the marketing mix of Coca cola? Read on.

10.1-Product in the Marketing mix of Coca cola:


The company has the widest portfolio in beverage industry comprising of 3300 products.
Beverages are divided into diet category, 100% fruit juices, fruit drinks, water, energy drinks, tea
and coffee etc. As per Nielson’s data, Coca cola is the No.1 brand in sparkling beverages, juice,
and retail packaged water in 2010. Coca cola has its market presence around 200 countries. Coca
cola brands in India are Fanta, Maaza, Limca, sprite, Thums up, Minute Maid, Nimbu fresh,
Nested iced tea etc.

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10.2-Price in the Marketing mix of Coca cola:
Due to the availability of wide range products, the pricing is done according to the market
and geographic segment. Each sub-brand of coca cola has different pricing strategy. Their
pricing strategy is based on the competitors pricing, Pepsi is the direct competitor to coke.
Beverage market is said to be a oligopoly market (few sellers and large buyers), hence they form
into cartel contract to ensure a mutual balance in pricing between the sellers.

10.3-Place in the Marketing mix of Coca cola:


Coca cola is the world’s most favorite brand and is available all over the world. The distribution
system of coca cola follows the FMCG distribution pattern. The effective distribution network of
coke has almost eroded the small and middle level players in the market. In India they have
captured even the rural market by extensive distribution and have eroded the market share of
Bovonto, Kalimark etc.

10.4-Promotions in the Marketing mix of Coca cola:

Coca cola adopts various advertising and promotional strategies to create an increased demand in
the market by associating with life style and behaviour and mainly targeting value based
advertising. You are more likely to see a coke ad individualised for a particular festival or in with
a general positive message.

Coca cola uses CSR as its marketing tool to gain emotional benefits in consumers mind. The
current promotions through CSR include “Support my school” campaign with NDTV. It has many
brand ambassadors like Shahrukh khan, Hrithik Roshan, South Indian Actor Vijay and Trisha,
Ghambir, Aamir khan etc and has signed contract recently with Imran khan.

It allows price discounts and allowances to distributors and retailers and uses various types of sales
promotions in order to push more products into the market. It employs both push strategy through
promotions and pull strategy through advertisements and campaigns.

Also Read about Marketing Mix or about the Marketing strategy of Coca cola & the SWOT
analysis of Coca cola.

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