ADDITIONAL ANALYSIS

An Overview of Coca-Cola

The market leader in the soft drinks industry, Coca-Cola is one of the most renowned brands
across the world. Be it your home, office, shops, hotels, bars or restaurants, Coca-Cola is
everywhere!

94% of the world’s population recognizes the brand instantly by its red and white Coca-Cola
logo as per Business Insider. More than 10,000 soft drinks from Coca-Cola are consumed
every second of every day on average.Coca-Cola was established in 1886 in Atlanta by John
Pemberton. Within a few years, Coca-Cola became the most recognized, renowned, and
widely distributed brand in the world. Currently, James Quincey is the CEO of this mega
corporation.
SWOT ANALYSIS OF COCA COLA

Strengths

1. The Coca-Cola Company has one of the world’s largest brand identities and brand
valuations.Wherever you travel in the world, you will no doubt spot the ubiquitous red-and-
white logo of The Coca-Cola Company. Branding and advertising campaigns of Coca-Cola
have taken over World Cup tournaments, capitalized on the festivities of Christmas, and
driven one of the strongest advertising rivalries in the marketing world.The Coca-Cola Brand
is valued at $84 billion. (Statista)

2. The Coca-Cola Company enjoys a commanding lead in market share in North

America.Coca-Cola remains an industry benchmark, with many imitation products cropping
up over time. Regardless, its customers continue to seek the original taste of its main product,
Coca-Cola, and that of its main product offerings. This authenticity buffers itself from its
competitors to some level. However, this does not hinder indirect competition from health
drinks, bottled water and hot drinks from impacting its market share.

3. One of the most recognizable brands, The Coca-Cola Company’s brand equity is one
of the strongest in the world.Brand loyalty of The Coca-Cola Company and its perceived
quality reinforce the image of The Coca-Cola brand. The company has remained in its
position for more than a century. To achieve this, it has had to ensure that its marketing and
advertising is at the top of its game and continues to be as the world’s refreshment needs
change. Even though the packaging and corporate identity of The Coca-Cola Company have
changed many times over the years, the lineage remains exceptionally strong.

4. Beverages from The Coca-Cola Company are available in over 200 countries around
the world.With the exception of North Korea and Cuba due to political sanctions, products
from The Coca-Cola Company can be found across the world. The distribution network has
been known to include some of the most innovative and localized methods of distribution to
penetrate its products into some of the most remote areas in the world.More than 1.9 billion
servings of products from The Coca-Cola company are served every day in 200 countries
around the world. (Coca-Cola)

5. As The Coca-Cola Company has such wide market penetration, its distribution
system is one of the most efficient and refined in the world.Getting a product to market is
possibly one of the most cost-intensive aspects of a product life cycle, and with Coca-Cola, it
is no different. The company relies on an incredible local partner network to ensure
expediency and efficiencies when it comes to its distribution system. Resilience is key to the
success of this system, as products from The Coca-Cola Company are distributed into some
of the most remote and hostile environments on the planet.

Weaknesses
1. The Coca-Cola Company fails to demonstrate sustainable practices.The Coca-Cola
Company’s reliance on single-use plastics has led to it being considered one of the world’s
worst polluters. This, coupled with its heavy reliance on water, is bad for its image. There is
an opportunity for The Coca-Cola Company to strengthen its commitment to sustainable
production, which would greatly benefit its brand.45.2% of Coca-Cola’s product line is
packaged in PET plastic bottles. (Statista)

2. The Coca-Cola Company faces stiff competition.The Coca-Cola Company faces direct
competition in the carbonated soft drink category, as well as indirect competition in the form
of hot drinks, bottled water and nutritional drinks. Furthermore, The Coca-Cola Company
continues to counter competitive action from its largest institutional competitor, The Pepsi-
Co. This rivalry has earned its own name, The Cola Wars.

3. Although Coca-Cola has a wide range of beverages available, it has not diversified
into any other market segment.Unlike its primary competitor, The Coca-Cola Company has
had few attempts at entering into industries other than that of beverages. Competitors have
gone into various industries, such as Pepsi-Co’s entrance into the snack market, a move
which has helped it diversify its offerings away from the carbonated beverages industry.
Moving beyond beverages could help Coca-Cola reinforce its position as a market leader.

4. The nutritional value of products from The Coca-Cola Company is a leading reason
for customers to move away from the company.The Coca-Cola Company has indeed
attempted to produce Cola-type products that include less sugar, no sugar and sugar
replacement products, but its image is still strongly entrenched as one of an unhealthy
product. These attempts have led to the creation of products like TAB and Coke Life, which
replace sugar with Stevia, which is seen as healthier. Interestingly, these brands are among
the brands that The Coca-Cola Company decided to discontinue recently in order to
streamline its operations.).

5. In order to penetrate all corners of the world, The Coca-Cola Company has high
distribution costs.In order to ensure that its products are available in the 200 countries that
sell Coca-Cola products, the company maintains an exceptionally intricate supply chain
system. The Coca-Cola Company’s business model revolves around independent bottling
companies that add carbonated water to a syrup that is supplied by The Coca-Cola Company.
The filled bottles are then distributed to customers and regions in order to fill orders. In this
model, the actual bottling process is completed by the bottling partners, while the syrup
production and distribution of the final product are executed by the company itself.

Opportunities

1. The Coca-Cola Company can focus more of its marketing efforts on emerging
markets.There has been a massive growth in net income per capita in large parts of the
world, in territories where Coca-Cola had not previously focussed its expansion efforts. This
offers the opportunity for expansion in underexposed markets in emerging economies.
Expansion into the European, Middle East and African markets poses a great opportunity to
Coca-Cola.

2. The Coca-Cola Company can introduce non-beverage items into its product
line.Following on from the diversification strategies of its competitors, The Coca-Cola
Company can diversify its range of offerings into products beyond its legacy products of
beverages. This strategy has proven to be an effective way of mitigating the risk of downturns
in product-specific markets, such as carbonated beverages. Furthermore, The Coca-Cola
Company can leverage its vast and efficient distribution network for products in a similar
segment to that of carbonated beverages, such as snacks.

3. Continued innovation in Coca-Cola’s supply chain can open up new opportunities.As

global supply chains continue to develop and innovate, this offers The Coca-Cola Company
the opportunity for further efficiencies in its distribution strategies. The Coca-Cola Company
is seen to be taking advantage of these technological advances, with the adoption of
blockchain technology in its supplier and distribution technological infrastructure. The use of
cryptocurrencies such as

4. The Coca-Cola Company can focus more of its product range on health drinks.:The
global trend toward a healthier existence, as well as the continued health pandemic
manifesting itself in obesity, diabetes and other diet-related health concerns, is driving the
market away from sugary, carbonated drinks toward alternatives that are perceived to be
healthier. These include smoothies, bottled water, teas and coffees. The Coca-Cola Company
has recently entered into the market for hot beverages through the acquisition of Costa
Coffee.

5. Recycled plastic is an environmental imperative for the future.:Conscious consumption

is becoming an incredibly important corporate value for consumers worldwide. The Coca-
Cola Company is currently seen as one of the world’s greatest contributors to plastic
pollution. Single-use plastic is still very much a part of The Coca-Cola Company’s supply
chain. This offers the opportunity to change its image by setting itself targets of reducing not
only single-use plastics in their product lines, but reducing plastic altogether. Targets have
been set for 100% recycled plastic by 2030; however, a return to glass packaging offers an
even greater opportunity.

Threats
1. It may be unable to grow its customer base over the long term.The Coca-Cola
Company’s marketing efforts have been so successful in the markets that it has concentrated
on, a level of market saturation has been reached, where it has become difficult to attract new
customers to its legacy offerings. This phenomenon presents itself not only to The Coca-Cola
Company, but also to its competitor, The Pepsi-Co.

2. Many of The Coca-Cola Company’s products are outdated and not very
profitable.The vast majority of The Coca-Cola Company’s product lines contribute to a very
small percentage of the company’s sales. This exposes the company to significant market-
related risks, which may affect its few volume-based brands.

3. Customers of The Coca-Cola Company are increasingly seeking more nutritious

choices in their beverage consumption.Without the further development of its own health-
focused brands, or further acquisitions of established brands that offer a healthier alternative
to carbonated sugary drinks, The Coca-Cola Company will experience a decrease in sales of
its core, volume-based product lines.

4. Water is becoming an increasingly more valuable resource, and water is a big input of
The Coca-Cola Company.As worldwide freshwater resources become increasingly
threatened, The Coca-Cola Company will experience an increased cost of its main production
input: water. The company will need to refine its production process in order to cut down on
the amount of water required in its operations in order to remain profitable and in operation.

5. The beverage industry is one of the most competitive industries in the world.The
Coca-Cola Company has faced some of the fiercest competition in its existence. The so-
called Cola Wars between The Coca-Cola Company and Pepsi-Co has led to the
establishment of two behemoths in the beverage space. This mutually identified competition
ensures a strategy of continuous innovation to ensure survivability.

Marketing Mix of coca cola:

Product Strategy

Coca-Cola has diversified its products vastly over time. The company offers 500 sparkling
and still beverage brands in its portfolio. There are over 3,900 beverage options in total in its
product mix.
Although Coca-Cola, the company’s flagship product, is one of the most well-known and
valuable brands amongst all.
The following are some of Coca-most Cola’s well-known brands:

● Coca-Cola- It is the world’s most popular and highest-selling soft drink, as well as
one of the most recognisable brands.
● Sprite- Is another popular soft drink with a lemon-lime flavour that was first produced
in 1961.
● Fanta- Is Coca-second-oldest Cola’s brand, having been created in 1940. It comes in a
signature orange flavour.
● Diet Coke- In several markets, Diet Coke is referred to as Coca Cola Light. A calorie-
and sugar-free soft drink. It was first introduced in 1982.
● Coca-Cola Zero: Introduced in 2005, this sugar-free beverage became a million-dollar
brand in 2007.

Price Strategy

Coca Cola follows a price discrimination strategy in its marketing mix. This means that they
charge different prices for products in different segments. The beverage market is considered
an oligopoly, with a small number of sellers and a large number of purchasers. And Coca-
Cola and Pepsi are their two most powerful brands. Hence, Coke products are priced
similarly to Pepsi products in the same segments.
Consumers in developing nations like India are price sensitive and may flip if Coca-Cola
prices its goods too high in comparison to Pepsi in a certain segment. As a result, both parties
agree to preserve price parity in each segment. Coca-Cola also provides discounts on bulk
purchases by bundling items.

Place and Distribution Strategy

Coca-Cola, which has been in business for more than 130 years and operates in more than
200 countries throughout the world, has thus amassed a massive distribution network. Their
place strategy is highlighted by their extensive distribution network. The Coca-Cola company
manufactures the beverage using its patented formula and distributes it to bottlers across the
world.
The company itself controls the brands and is in charge of consumer brand marketing
campaigns as well as manufacturing and selling concentrates, beverage bases, and syrups to
bottling plants. Their bottling partners then manufacture packages, merchandise, and
distribute the finished branded beverages to their vending partners, who finally sell them to
consumers.
Its products can be found in practically every retail shop and supermarket. Coca-Cola
products are sold at 2.5 million stores in India. Their products are also distributed in a variety
of hotels and restaurants around the world.

Promotion Strategy
Coca-Cola is the gold standard in terms of advertising and branding. Coca Cola’s promotion
strategy focuses on aggressive marketing through ad campaigns using media channels such as
television, online commercials, print media, sponsorships, and so on. Coca-Cola sponsors
important events such as American Idol, BET Network, NASCAR, NBA, NCAA, Olympic
Games, FIFA World Cup, among others.
Coca-Cola also airs commercials on television in a variety of national languages around the
world. Coca-Cola started the “Taste the Feeling” campaign in India in March 2016, intending
to remind people of the joy and happiness that Coke delivers to their life. Coca-Cola has
evolved into a mass-market product that is expected to be available at any time, anywhere.