STRATEGIC COCA COLA

In contrast to the cost advantage and differentiation strategy, especially the former which pays
attention to the entire market (industry), the focus strategy tries to focus the company's attention
on serving one particular market segment. The selection of the market segment can be based on the
unique characteristics of the marketing area or the unique attributes of the goods required by the
market segment. The focus strategy, therefore, begins by choosing a particular market niche that
has a specific preference for goods. The company's competitive advantage in serving this niche
market can be built by selling goods at a lower price than competitors (cost focus). Besides, the
company can also build a competitive advantage based on its ability to differentiate the goods
offered to the selected market segment (differentiation focus).

However, the risk of possible failure can still occur because there is a change in the tastes of the
targeted market niche and leads to a general trend of tastes that apply to the market as a whole.
Risks also arise because competitors are able to find a strategy to enter a market segment that was
previously only the target of companies implementing a focused strategy. Usually competitors are
able to find business opportunities that come from a particular part of an existing market niche: a
niche within a niche. Failure may also occur because the attractiveness of entering a particular
market niche becomes greater which in the end invites the entry of competitors. Potential
competitors become real competitors. This new attraction is usually born because the market niche
has experienced quite rapid growth, both quantitatively and qualitatively.

Soft Drink Industry Profile in Indonesia

The names Coca-Cola and Pepsi are certainly familiar to us. Today, both brands are leaders in the
global soft drink industry. Coca-Cola takes the bigger share, they control 4 of the 5 continents
whereas. Pepsi takes a slightly smaller share with sales in the Middle East. In terms of job creation,
the soft drink industry has a large effect on the workforce. With a ratio of 4.025, the soft drink
industry was ranked 14th out of 66 other industrial sectors throughout Indonesia.

Coca-Cola Profile

Coca-Cola was first introduced on May 8, 1886 by John Styth Pemberton, a pharmacist from Atlanta,
Georgia, United States. It was he who first mixed the caramel syrup which became known as Coca-
Cola. Frank M. Robinson, John's friend and accountant, suggested the name Coca-Cola because he
thought that two Cs would stand out for advertising. Then, he created a name with flowing italics,
and the world's most famous logo was born. skilled in creating consumer attention by making
various kinds of souvenirs with the Coca-Cola logo. The items are then distributed in key sustainable
sales locations. Innovative advertising styles, such as colorful designs for buses, decorative glass
chandeliers, and a range of souvenirs such as fans, dates and clocks were used to promote Coca-
Cola's name and drive sales.

This attempt to advertise the Coca-Cola brand at first did not encourage the use of the word Coke, in
fact consumers were encouraged to buy Coca-Cola with the following words: "Ask for Coca-Cola by
its full name; nicknames will only encourage substitution of products with other words" . But
consumers still wanted Coke, and finally in 1941, the company followed the popular tastes of the
market. That same year, the trade name Coke received the same advertising recognition as Coca-
Cola, and in 1945, Coke officially became a registered trademark.

Coca-Cola is the most popular and best-selling soft drink brand in history to date. First created in
Atlanta, Georgia by Dr. John S. Pemberton.

The first Coca-Cola we introduced as a fountain drink by mixing Cola flavored syrup and carbonated
water. First registered as a trademark in 1887, by 1895 Coca-Cola had been sold throughout the
United States. Now Coca-Cola is available all over the world

Coca-Cola Sales

In Indonesia, soft drinks are easy to find in various places, from small shops to supermarkets. Soft
drinks are consumed by all walks of life from various educational and occupational backgrounds.

In 2001, Indonesia recorded the lowest level of consumption of Coca-Cola products (only 13 servings
of 236ml per person per year), compared to Malaysia (33).

Because soft drinks are goods whose demand is elastic to price, various efforts have been made to
keep the prices of soft drink products affordable.

80% of soft drink sales are carried out by retailers and wholesalers of which 90% are included in the
category of small entrepreneurs. For these small entrepreneurs, soft drink products are their most
important merchandise with a contribution of 35% of total sales and a profit value of 34%.

Coca-Cola Marketing

At Coca-Cola, the Customer Service System (CSS), our customer service system, is designed to
continuously improve customer satisfaction and loyalty to Coca-Cola products by providing optimal
service to all customers based on their individual needs. The goal of Coca-Cola CSS is to create an
ideal outlet throughout Indonesia.Coca-Cola customers benefit from regular service, innovative
merchandising, equipment and special programs. This distribution system relies on two groups of
small and medium enterprises which are divided into two large groups: Area Marketing Contractors
(AMC) and Street Vending

Coca-Cola will continue to develop cooperation with SME entrepreneurs, because apart from being
mutually beneficial for both parties, this collaboration creates great job opportunities. Up to now,
80% of Coca-Cola's sales are made through retailers and wholesalers with a total of almost 500
thousand, of which 90% are included in the category of small entrepreneurs by absorbing <5
employees.

Manufacturer of ready-to-drink products (ready to drink), Coca-Cola, will continue to boost its
market penetration this year. The 2010 World Cup event in South Africa, where Coca-Cola is the
official sponsor, will be used as a momentum to improve brand image as well as expand market
share.
To expand penetration, Coca-Cola continues to implement a number of marketing and sales
strategies that are considered to be able to boost performance. Among others, by cooperating with
restaurant business actors. Product innovation is also continuously carried out. Currently, Coca-Cola
products have 25 variants consisting of a number of brands, such as  Coca-Cola, Sprite, Fanta, and
Frestea.

In sales, Coca-Cola recognizes two sales schemes, namely direct selling and indirect selling. The two
schemes will complement each other to increase product sales in the midst of an increasingly
competitive industry climate.

The brand image that Coca-Cola is trying to strengthen is the image of a drink that is able to
generate new enthusiasm and inspiration, so that its customers always live dynamically. The tagline
that Coca-Cola uses in its marketing is "Open a New Spirit".