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The Coca- Cola Company is the world’s largest beverage company, manufacturer, distributor, and marketer of non-alcoholic beverage concentrates and syrups, with more than 400 widely recognized beverage brands in its portfolio. 1.1. Company History: The Coca-Cola Company is an American multinational beverage corporation and manufacturer, retailer and marketer of non-alcoholic beverage concentrates and syrups. The company is best known for its flagship product Coca-Cola, invented in 1886 by pharmacist John Stith Pemberton in Columbus. The Coca-Cola formula and brand was bought in 1889 by Asa Candler who incorporated The Coca-Cola Company in 1892. Besides its namesake Coca-Cola beverage, CocaCola currently offers more than 500 brands in over 200 countries or territories and serves over 1.7 billion servings each day. (http://www.thecoca-colacompany.com/ourcompany/index.html) The company operates franchised distribution system dating from 1889 where The Coca-Cola Company only produces syrup concentrate which is then sold to various bottlers throughout the world who hold an exclusive territory. The Coca-Cola Company owns its bottler in North America, Coca-Cola Refreshments. Coca-Cola was first introduced by John Syth Pemberton, a pharmacist, in the year 1886 in Atlanta, Georgia when he concocted caramel-colored syrup in a three-legged brass kettle in his backyard. (http://www.thecoca-colacompany.com/ourcompany/historybottling.html) He first “distributed” the product by carrying it in a jug down the street to Jacob’s Pharmacy and customers bought the drink for five cents at the soda fountain. Carbonated water was teamed with the new syrup, whether by accident or otherwise, producing a drink that was proclaimed “delicious and refreshing”, a theme that continues to echo today wherever Coca-Cola is enjoyed. Coca cola in Pakistan: “To provide Coca-Cola at arms ‘length” The Coca-Cola Company began operating in Pakistan in 1953. Coke, Fanta and Sprite are the brands with whom Coca-Cola is operating in Pakistan. The Coca-Cola System in Pakistan operates through eight bottlers, four of which are majority-owned by Coca-Cola Beverages Pakistan 1
Limited (CCBPL). The CCBPL plants are in Karachi, Hyderabad, Sialkot, Gujranwala, Faisalabad, Rahim Yar Khan, Multan and Lahore. The Coca-Cola System in Pakistan serves 70,000 customers/retail outlets. The Coca-Cola System in Pakistan has nearly 3,000 people working constantly for the company. During the last two years, The Coca-Cola Company in Pakistan has invested over $130 million (U.S) and coke has successfully provided 56 years of dedicated service to its customers in Pakistan. Since the beginning of Coke Company the firm has been continuously changing its slogans and that’s a very creative idea to get the attention of the customers. Here we would like to include some of the popular slogans of coke since the coke journey started. 2001 Life is Good 2003 Jo Chaho Ho Jaye Coca Cola Enjoy 2004 Flight Of Delight 2005 Galay Delicious Taste 2006 Thanda matlab coca cola 2007 khaly pily jila coca cola 2008 Aja jashan mena ly (http://www.antiessays.com/free-essays/103740.html) 1.2 Vision Statement Our vision guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable 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. Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities. (http://www.thecoca-colacompany.com/ourcompany/mission_vision_values.html) 2
1.3 Mission statement The Coca Cola Company creates value by executing business strategy guided by four key beliefs: Customer is king; Customer demand drives everything we do. Brand Coca Cola is the core of our business. We will serve consumers a broad selection of the nonalcoholic ready-to-drink beverages they want to drink throughout the day. We will be the best marketers in the world. (http://www.thecoca-colacompany.com/ourcompany/mission_vision_values.html) Everything we do is inspired by our enduring To Refresh the World To Inspire Moments of Optimism To Create Value and Make a Difference 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 Work Smart Act with urgency Remain responsive to change Have the courage to change course when needed Remain constructively discontent Work efficiently
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
Be the Brand Inspire creativity, passion, optimism and fun
1.4. Objectives Coca Cola’s objectives are: To maintain the quality and taste of the product To increase the sales and market share i.e. to maximize profit To sustain up to the mark standard of Coca Cola in the interest of consumers. To capture greater market share To stay as market leader To earn goodwill and good reputation for the brand. (http://www.thecoca-colacompany.com/ourcompany/mission_vision_values.html) 1.5. Goals of Coca Cola All CCBPL plants setup their own goal to achieve the objective. The company goal is “To increase sales volume and gain market leadership” (http://www.thecoca-colacompany.com/ourcompany/mission_vision_values.html)
6.Organizational hierarchy 5 .1.
coke competitor also introduces different type of beverages but the product line of coke is high. The market size and growth rate of coke is high and there is a lot of opportunity that coke increase market size and growth rate. Number of Rivals If we talk about the number of rival in the beverages industry so the strong rival of coke is: •PepsiCo (direct & strong competitor) • nestle (indirect competitor) •Gourmet cola (Potential competitor) 6 . Coca Cola Life Cycle Stage Coca Cola Coca-cola is in a stage of growth according to a product life cycle analysis. So. lot of chance available for coke that they increase industry growth rate and generate high profit margin. but there is no chance that Pepsi capture coke market. Coca Cola has a portfolio of more than 3.2. On the other side.3. 2. Market Size & Growth Rate Today. 2. It is recovering its market share very quickly which it had lost in previous years although there is good competition in market but it is still recovering and enjoying healthy profits. because the product line of coke include a different type of beverages and all beverages made by them are in accordance with consumers need.2. Industry Features 2.000 beverages. There are no barriers for new entrants.1. and many companies are entering in this industry because of healthy growth.
2. and compatibility with the overall Company's Information Technology strategy."The coca cola company has always worked for bringing in technological changes to meet the customer needs.2. They believe on “What Cold They Sold” For this reason. supportability. Coca-Cola has provided their coolers and freezers in the market. They are emphasizing on their bottling plan process for quick filling.’’ Their fastest production high technology can produce a faster than an eye see. They are working in more than 200 countries through FDI. They provide this infrastructure free of cost just to provide chilled coke to their customer. In almost every country where they are working they have their own production plants.6. if not then they immediately change or repair it. Their bottling system is best all over the world.4. These are the various examples of latest technology adopted by the company • Coca-Cola Seeks Edge With 120-Drink Jet Fountain 7 . 2. They don’t actually differentiate between these two brands on the basis of their tastes. they don’t care before drinking that whether it is “Pepsi” or “coke”. Pace of Technological Change "To continue to provide the highest level of service to The Coca-Cola Company by using technologies to improve efficiency. Their one assembly line can produce 2000 cans in minute.Production Capacity Of Coca Cola Coca cola production plant is the world sixth largest production plant. They have maximum number of coolers and freezers in the market.’’ They are continuously improving their production system because for them efficient production at minimum cost is real achievement. Their salesman and mechanics regularly visit all the shops where coke has its infrastructure to check that either it is in proper condition or not. They are rapidly growing their market in Middle East and central Asian countries. while at the same time recognizing the constraints of cost. licensing and franchising.5. leverage existing knowledge. Major Customers Need First of all the majority don’t care that what they are going to have. which they want to purchase. From their one production line they have 25000 bottle storage capacities per minute. So they are heavily investing on their production capacity improvement. In other words. and proactively mitigate legal issues by educating clients on key issues affecting the Company. Consumers basically drink what they get. approximately 250 Lorries leave daily.
• • Coca Cola’s brands also include milk products. In downward stream they have their distributors. refreshment or other needs. Vertical Integration Coca cola vertical integration system is one of its major systems that are helping them to achieve the economies of scale. If we talk about backward integration they owned their suppliers of soda. From the original Coca-Cola to most recent introductions. Product Innovation • Coca Cola’s dozens of soft drink brands provide flavor and refreshment in a variety of choices. Scope of Competitive Rivalry The Pepsi competitive rivalry scope is high in case of coke and Pepsi because the competitor of coke is strong and there is a chance if coke competitor work fast on their beverage line of product.8. and more so you can choose a Coca Cola Company product anytime.• • • • Interactive Vending Machines Coca-Cola Commits To Climate-Friendly Refrigeration Worldwide MasterCard Acceptance Water Treatment at the Coca Cola Co.7. So we say that the scope of competitive rivalry is high and there is a strong competition 8 . soft drinks from The Coca-Cola Company are both icons and innovators in the beverage industry. 2.10. Why coca cola. anywhere for nutrition. and licensees. There is no substitute of this product available. channel management is active. 2. so coke has a lot of products through which coke easily differentiate their product such as coke beverage Minute Maid. In this way they save & secure themselves from their upper & down steam channel member’s conflict. water filtration. & why they purchase their suppliers because they don’t want to build the monopoly to any distributor who will influence them later on. soup. 2. so we say that coke has a degree of product differentiation. franchisers. 2. then may be Pepsi beat coke in case Pepsi introduced new and differentiated product from coke. bottling. Degree of Product differentiation If we talk about the degree of product differentiation.9. They are using both forward & backward integration. Product innovation is the major driver for soft drink industry because for long term sustainability and to fulfill the consumer demand according to their choices product innovation is the tool that helps the companies in this regard.
Advertising The field of advertisement is one area where Coca-Cola has always emphasized. This is basically called “Clutter Buster” means that only that advertisement will leave impact on customer mind that has some specialty or uniqueness in it.between them because both companies work on international level and every time the struggle of every company is to beat their rivals. Advertisement Objective: Type of advertising with respect to product life cycle that Coca-Cola adopts is reminder type. For example in India Coke current slogan “ Thanda Matlab Coca-Cola” has gained reasonable customer attention. So we can say that coke not only uses electronic but print media for advertisement as well. Advertisement Media: Coca-Cola Company advertises its products mainly coke through electronic media that includes Television. In year 2000 Coca-Cola unveiled the biggest advertising billboards in the history of Pakistan. Each unveiling was marked by entertainment and light shows watched by thousands of people. Advertising Strategy: Before creating advertising message the Coca-Cola Company gives lots of time to the factor that the message must gain customer attention. Setting of advertising budget: Coca-Cola sets its advertisement budget on the basis of competitor based budgeting. 9 .Fanta and Coke. Similarly in July 2000 Coca-Cola launched its first under the crown promotion by the name of Dream Vacations in which the consumers could collect caps of promotional bottles of Coca-Cola like Sprite. Radio and Internet as well. The reason behind this fact is that coke is such a product that is at the maturity level currently so for such a product companies mostly go for reminder type of advertisement so that they can penetrate more and more and same is the case with Coke. straight away Coca-Cola management plans to do the same so that they can compete in advertising department as well.11. 2. Moreover leading newspapers of Pakistan are also the targeted by coke for advertising. Major competitor of coke is Pepsi and as coke realizes that Pepsi has increased its advertising budget.
000 and revenues of $31.807 23. as well as that of other Coca Cola-produced brands.5 4.983 24. Market Share of Coca Cola: Coca Cola is now one of the largest corporations in the world.742 $23.857 $31. Marketing Mix: Marketing decisions generally fall into the following controllable categories: Product Price Position Place (distribution) Promotion Product Strategy 10 .7 $5.8 $4.872 20. with a global workforce of over 90.981 22.7 $5. Sales and Income Data in Millions Net Sales $21.944 $36.444 2006 2007 2008 2009 2010 2011 Net Income(Profits) Units sold in Billions $4.3.9 billion in revenues in 2008.4 $5.847 19.104 $24.088 $28.080 21. has established Coca Cola as a prominent figure in the non-alcoholic beverage industry and allowed the company to keep both revenues and profits high. Over the years. the brand equity of the Coca-Cola trademark.6 $5.
Actual Product Design: Pet bottles. Quality: Quality differs with respect to country for example. It is one flavor. It is one product. Product Classification Coke is categorized as a convenience product. economy packs.Product: Anything that can be offered to a market for attention. because the purchasing rate is very high and this is the product that is bought very frequently. which has the maximum consumers all over the world. Coke has already worked a lot on it by launching new 11 .1. high market share Coke Classic is the basic product through which the Coca Cola Company got the fame. Boston Consulting Group (BCG Matrix): 5. returnable glass bottles. Coca-Cola Can quality that is available in Middle East is certainly different as compared to Coke Can available in Pakistan. use or consumption that might satisfy a want or need. acquisition. Level of coke as a product Core Product Core benefit is that it fulfills the thirst. which gives the maximum revenue from all over the world. 5. Stars High Growth.
low market share Products that are still not a big hit as they haven’t consumed much time yet.com › Beverages) 5. (www. which the Coca Cola Company can never think of stop producing. Even it’s not a long period which flavored Fanta has consumed but still there are signs that it won’t be a success. Cash Cows Low growth.com › Beverages) 12 . So it needs time to be fully tested by the company & the company needs to think whether it should continue the production or should divert to something new.4. Dogs Low growth. It is the one which is giving maximum revenues to it by different products in this line. Diet Coke and Kinley are the examples of these question marks as the question marks as they have not taken much time yet to get a hold of market & not even the large percentage of the people have tasted it. but still it is a product they can turn as famous as coke Classic.com › Beverages) 5. (www. (www. Question Mark High growth. It is the one which make the coke company a huge success. Whenever the company thinks of launching its product in a country the first product they launch is coke classic as they know that if don’t work here then nothing else can.3.referenceforbusiness.flavors in it. High market share Fanta and Sprite are the products.Sprite Zero. it was one product which gives billions of dollars as revenue from world over. low market share A product that has not worked good or a product which has been a source of loss.com › Beverages) 5.referenceforbusiness.referenceforbusiness.2.referenceforbusiness. So it’s better for the company to get rid of it. (www. Sprite 3G. Flavored Fanta is one product that was not a big hit.
the company is threatened by intense competition. The main dark cola drink of the company which Pepsi version of dark cola which is the major 13 . The key competitors in the industry are: PepsiCo(direct& strong Competitor) Gourmet Cola(potential competitor) Nestle(indirect competitor) I am comparing some Coca.888 million. Coca Cola V/S Pepsi products: Both the companies Coca Cola and Pepsi have a number of products. Some of these products that are brought in the market by both the companies to compete against each other are as follows: Coca Cola Products 1. Many of these products are innovations but there are also many products which are brought out just as a competitive product for other companies. Pepsi Products 1. Pepsi.Pepsi Cola primary competitor to Coke. The company's strong brand value facilitates customer recall and allows Coca-Cola to penetrate markets. which was ranked 22 with a brand value of $12.6.Coca Cola started the rivalry between these Companies. However. Competitor’s Analysis: The competitors to the products of the company mainly lie in the non-alcoholic beverage industry consisting of juices and soft drinks.cola products with Pepsi products Pepsi Coca Cola ranks well ahead of its close competitor. which could have an adverse impact on the company's market share.
3.Sprite Sprite is a clear. 4.2. was introduced in U. 5. 7. Diet Coke Diet Coke or Diet Coca Cola is a sugar-free soft drink produced and distributed by Coca Cola Company. non caffeinated soft drink. Mirinda is owned by Pepsi Co. Mirinda Mirinda is a brand of soft drink. Coke chose to concentrate their operation on the first segment while intimately depending on independent bottlers companies. in 1982 4. Diet Pepsi Diet Pepsi is a low calorie carbonated cola. 7 up 7 up is a brand of a lemon-lime flavored soft drink. Kinley water Kinley is a brand of still or carbonated water owned by The Coca Cola Company. It was introduced in 1964 as a variant of Pepsi Cola with no sugar.1 Bargaining Power of Buyers/Customers: 14 . 2. It is produced and distributed by Coca Cola Company’s bottlers. packaging in plastic canisters (market research) and shipping to bottlers (advertising).Fanta Fanta is a soft drink brand owned by The Coca Cola Company. 5. Porter’s Five Competitive Forces: Soft drink industry is divided into two segments namely production of soft drink syrup and manufacturing and/or distribution of soft drinks in retail level.S. 7. 3. Aquafina Aquafina is non carbonated bottled water produced by PepsiCo. Basically. the company is engaged into blending raw material ingredients (product planning). produced by Coca Cola Company. lemon lime flavored.
For Coke. and play competitors against each other. on global level the situation is reverse. prize scheme wars and sponsorship wars to win over each other customers. 7. Bargaining power of buyers depends on the marketing channel used. Substitute products Existence of substitute products is wide and thick and substitute products for Coke reached the market where Coke has a strong presence. The bargaining power of buyer is high for fountain supermarkets and mass merchandising because of the low profitability and strong negotiation power of retail channels but for vending bargaining power is non-existing caused by high profitability. Industries that have intense competition are characterized by competitors that are roughly equal in size. Apart from the primary rival (PepsiCo). if alternative suppliers are plentiful because the product in undifferentiated.000 cerates /year.Bargaining power of buyers affects the industry through their ability to force down prices. these three customers being large and powerful are in an influential and bargaining position they can demand discount or others facilities like (boards sign/freezers/coolers etc. McDonald’s 40.) and impose a threat to switch to their closest rival and competitor Pepsi.Rivalry among existing firms is the amount of direct competition in an industry. The direct competitor of Coca-Cola is Pepsi and that of CCBPL is PCI (Pepsi cola international) there is always ongoing tuff competition between these two arch rivals with Pepsi leading with 54% market share and Coke gradually growing and catching up 36% market share in Pakistan. Coca-Cola has three major and large customers in the market. bargain for higher quality or more services.3 . and high exit barriers arising from investments in specialized equipment. slow rates of industry growth. if the buyers earns low profits and is sensitive to cost differences.000 cerates/year and Pakistan Railways who buy 50. 7. Buyers are likely to have power if a buyer purchases a large part of the sellers product. the company 15 . Both companies often engage in price cut wars. However. food street 60.2 . and if the purchased product is unimportant to the final quality or price of a buyer's product. high fixed costs. there are five core channels such as food stores. convenient stores. However. and the production of commodities. fountain.000 cerates /year. vending machine and mass merchandisers. Rivalry condition Rivalry condition is concentrated on two main actors – Coca-Cola and Pepsi Cola.
Penetrating the soft drink industry is hard because of the established name of Coke. coffee. 7. powered drinks.referenceforbusiness. they call their sales managers to lift up all the stock from the market then inquired from the quality inspector.Barriers to new entrants Respectively. coffee. new entrants must first overcome the remarkable marketing muscle and marketing pre sence of Coke. The company management believes that new entrants provoke healthy competition. They take strict notice of that and don not take materials from that company again if that default is due to the ingredient contains by it. Bargaining power of suppliers Bargaining power of suppliers is low due to two reasons.finds intensified competitions on companies that produce. wine. which will provide Coke with a challenge to hold on to its loyal customers.com › Beverages) 16 . For example If market has low quality carets of bottles by chance.Cola or other new entrants.hence. Coca-Cola is not afraid of competing . beers.it doesn’t fear losing its share to Amrat. To reduce threats. Sources of sugar are on the open market which subsequently makes the creation power of suppliers at low levels.wine. Coke embraced the idea of bottling and concentrated on product diversification. mineral water etc.5 . and regulation make it impossible for new bottlers to enter areas where an existing bottler operates. (www. sport drink and other refresh ments causing a significant decline in Coke prices. There are several suppliers for packaging as well as the abundance in supply of inexpensive aluminum. juice. milk. Besides it will take a lot of effort on the part of new entrants like Amrat. and Shezan juices are substitutes of Coke for health conscious people and other fresh juices.4 . Nestle products like juices. Pak-cola to fully launch its product in Pakistan and capture or even motivate people to switch on to their new product from Coke. market and sell tea. milk. First. 7.Cola. the main inputs are sugar and packaging. coffee. Coke has long-term relationships with their retailers and distributors making possible the defense of the position by means of discounts and other tactics. bottled water.
35 1. Assessing the Competitive Strength: Sr.4 0.6 Snatching Away Customers: In the market Coke has been able to snatch large customers like Food Street. eid.5 0.48 Other s 0. 7. Pakistan Railways.08 0.75 0.35 1.36 17 .25 0.3 0.7 .18 0.32 4 5 6 7 8 Clear Advertising Globalization Product Innovation Brand positioning Convenient Location 9 9 9 9 9 9 8 8 7 9 5 2 4 3 3 15% 15% 10% 6% 12% 1.5 1 0.35 0.8 0.45 0.# Critical success factor Rating Weights Weights*Rating Coke 1 2 3 Quality Control Low Cost Production Supply chain management 10 10 10 Pepsi 9 8 6 Others 5 5 4 5% 10% 8% Coke 0.) from Pepsi mainly due to its superiority in the following areas.9 0.42 1.2 0. as well as Sponsorship events (basant. concerts etc.8 Pepsi 0. McDonald’s.08 1.8 0.7.54 1.
1 .35 0.2 . As we already know that the R & D and technology of coca cola is very strong. Coca-Cola can use this technology to have a competitive edge in the market and it can reduce its costs at the same time as it already has a strong setup (www. These are the various examples of latest technology adopted by the company • • • • • Coca-Cola Seeks Edge With 120-Drink Jet Fountain Interactive Vending Machines Coca-Cola Commits To Climate-Friendly Refrigeration Worldwide MasterCard Acceptance Water Treatment at the Coca Cola Co. Value Chain Analysis: As far as coca cola is concerned the cross business strategic fits can exist anywhere along the value chain of coca cola. Supply chain activities Coca cola has a strong supply chain network. energy drinks etc. It makes the syrup used to make the coke and gives it to its distributors and they make the final good. water. For example there are different products which coca cola has introduced which are examples of related diversification like minute maid juice.32 6.05 0.61 8. tea and coffee. The coca cola company has always worked for bringing in technological changes to meet the customer needs.referenceforbusiness.9 10 Taste Bottle design 9 9 7 8 2 0 Total 15% 4% 100% 1.73 1. It also has contract with a bottling company 18 .7 0. In the area of technology coca cola is very advance when we see their packaging and bottling technology.R & D and technology activities Coca cola can fit into a kind of business where it can utilize its resources of R & D and technology.com › Beverages) 8. We will discuss these value chains one by one and see how Coca-Cola can strategically fit into these value chains: 8. When coca cola will diversify into any other business which is related to its industry it will obviously have the advantage of its technological expertise.3 0 2.36 7.
One assembly line can produce2000 cans in minute. The Coca-Cola Company owns its bottler in North America. Managerial and administrative support Activities Coca cola can also diversify because of its managerial and administrative support activities.referenceforbusiness. Production related Activities Coca cola has the World sixth largest production plant. Many times most of the businesses require same management.which makes bottles for coca cola.referenceforbusiness. administrative and operating know how. So having such a strong supply chain network it can also diversify into relative business as this will help the company in reducing costs and increasing efficiency.referenceforbusiness. So Coca-Cola can also fit because of its production related activities. Already having a separate distributor the other products can be similarly distributed to the markets.6.com › Beverages) 8. The strong company brand name is also important in this case. Production line has 25000 bottle storage capacities per minute.5 Sales and marketing activities Many cost saving opportunities will arise for coca cola as single sales and marketing activities will be used to sell the diversified products. Coca cola is using the same supply chain for its diversified products. Like all the other fits coca cola can diversify because of its distribution activities.com › Beverages) 8. (www. Coca-Cola Refreshments.com › Beverages) 8. (www. The new products will gain attractiveness because of the strong brand name. (www. Advertising of the related products will be carried out together.4 Distribution related Activities The company operates franchised distribution system dating from 1889 where The Coca-Cola Company only produces syrup concentrate which is then sold to various bottlers throughout the world who hold an exclusive territory.referenceforbusiness. (www. There will be a single sales force for the related products. 19 .com › Beverages) 8.3 . Such a strong production capacity will result in lower costs.
com) 9. SWOTAnalysis: 9.1.coca-cola.referenceforbusiness. sport drinks. This is a huge cost saving benefit for coca cola. soft drinks. Opportunities Targeting the ageing customers and the young and more environmental concern people. juices. etc) Innovation Leading brand value and a strong brand portfolio Large investments in brand promotions Sells its products in more than 200 countries Large Scale of Operations Leading Market Position Strong cash flow from operations (heritage.The products which coca cola is producing are under the control of same management.2 .” Entire infrastructure needs a face-lift. 20 .3 . Coca cola itself is a benchmark for many corporations but where it lacks is its distribution capabilities especially in Pakistan.com › Beverages) 9. Financial market volatility (heritage.Weaknesses Coca-Cola has recently reported some "declines in Sales due to reduced consumer purchasing power.coca-cola. So for this case it should see Benchmark Pepsi as it is also the biggest competitor to it. (www. Strengths Solid financial performance Product diversification (water.com) 9.
Overdependence on Bottling partners (heritage. Threats The threat of substitutes.coca-cola.Consumer buying power also represents a key threat in the industry. Booming Global functional drink market e.g. Strength Weaknesses Opportunities SO Strategies WO Strategies Strength Weaknesses Threats ST Strategies 21 . Expansion – Reaching all segments. Energy drinks Intense competition Catering to Health Consciousness of People Bottled water growth Acquisitions of smaller players (heritage.5 Tows Analysis TOWS Analysis is an effective way of combining a) internal strengths with external opportunities and threats. is a very real threat.4.coca-cola. however. and b) internal weaknesses with external opportunities and threats to develop a strategy.com) 9. Economic Climate . Health and wellness concerns – Fruit Juice Companies Intense competition (Pepsi.com) 9. but consumers are not necessarily loyal to it. etc) Commodity prices growth Image perception in certain parts of the world. The soft drink industry is very strong.
Diversified in snack market Strengths/threats(ST): Consider all strengths one by one listed in the SWOT Analysis with each threat to determine how each internal strength can help it to avoid every external threat. to competitors by extend to the new market. Coca Cola has the largest sponsorship in games such as football. consider the following combinations: Strengths/Opportunities (SO) Consider all strengths one by one listed in the SWOT Analysis with each opportunity to determine how its single internal strength can help it to capitalize on each external opportunity. 3. Can renewed focus on ageing and affluent consumers globally. it could be the fastest selling product if use some of the famous stars in the game to advertise the product. e. Government policies Weaknesses/Opportunities (WO) Consider all weaknesses one by one listed in the SWOT Analysis with each opportunity to determine how each internal weakness can be eliminated by using each external opportunity. c. A number of people have limited disposable income. b.WT Strategies To carry out a TOWS Analysis. a. New management team-brand consistency. With their experience staff they should be able to make an instead market decision Failing to conduct further market research into new market can give an advantage explore the new market. Olympic etc. b. Coca Cola can be a leader in this market by extending its product line and campaign for healthy drink in the industry. 1. 4. 22 . by launching energy of their own brand. the company can still take advantage through their economy of scale by reducing the price of their product at the current economic climate. 2. Do research and know what the consumers want by this they will be able to extend their product line to include sugar free product and by this they will be able to attract new customers. a. Growing market for bottle water market. Threat of currency devaluations d.
Improve performance in certain part of America TOWS Matrix: Strengths brand portfolio 2.Sluggish performance 23 . c. brand 2.Large Scale of Operations5. a. b. New infrastructure for the health related drinks d.Strong cash flow from operation investments in Weaknesses a face-lift. Entire infrastructure needs 3.Negative publicity 1.Leading Market Position 6. e.Financial market volatility 3.Large promotions countries 4. d. The company slow in making decision can cost them in terms of their market if the key competitors take the lead in providing what the customers want it will be difficult for Coca Cola to win back the customers.c.Sells its products in more than200 4. If for instance the Coca Cola sugar level exceed the requirement of the health authorities this could lead to fall in sales hence the company will lose market share to the Pepsi. Training to unskilled labor Job securities to fear employees improve negative publicity Weaknesses/Threats (WT) Consider all weaknesses one by one listed in the SWOT Analysis with each threat to determine both can be avoided.Leading brand value and a strong 1.
If for instance the Coca able to extend their product line to Cola sugar level exceed the include sugar free product and by this requirement of the health they will be able to attract new authorities this could lead to fall in sales.Job securities to fear employees 5.Bottled water growth SO market (O6 S6) 2. The company slow in disposable income.Overdependence on Bottling partners ST WT 1.g.Improve negative publicity 3. Targeting the ageing customers 1. With their experience sponsorship in games such as football.Expansion 3. (O4 S2) affluent consumers globally. 2. 1.New infrastructure for the 6. it could be the fastest research into new market to selling product if use some of the can give an advantage to famous stars in the game to advertise competitors by extend to the the product. Image perception in certain economic climate.(O1 S3) 4.Commodity prices growth parts of the world.Diversified in snack market (02 S5) 5.Do research and know what the customers want. 7.Opportunities and the young 2.Health and wellness concerns still price of their product at the current competitors take the lead in 2. consumers want by this they will be 2.Growing market for bottle water 1. the company can making decision can cost take advantage through them in terms of their if the what key the their economy of scale by reducing the market providing 3.Failing to Olympic etc.Intense competition (Pepsi.Investment in global market new market 4. Energy drinks 4.Catering Health Consciousness of People 6.Coca Cola has the WO staff they should be able to largest explore the new market. etc) 5.Intense competition 5. The threat of substitutes 2.Booming Global functional drink market e.Can renewed focus on ageing and 3. by launching energy of conduct further market their own brand. 3. Providing health conscious brand (05 S1) 6. 24 .Economic Climate 4.Training to unskilled labor Threats 1. A number of people have limited 1.
56 0.24 Less than average of 2.health related drink Key Internal factors: Strengths Average customer Weight 0.05 0.08 0.22 0. finance.15 Weight 0.30 0. Low to High respectively. MIS.15 0.08 2.50 Need efficiency in the Management.14 0.08 1 4 2 4 Rating 3 1 2 1 0. 25 .36 purchases increased Employee moral Technical support and research efficiency Newspaper advertisement expenditures increased Revenues from other segments Debt to total asset ratio decline Locations in the world Weaknesses Inventory turnover decreased Return on equity down decreased Website Supplier time delivery Total 0. and other operations.10 4 Weight Score 0.08 0. R & D.08 0.10 0.11 0.24 Ranked 1 to 4. Current Evaluation: 2.09 Rating 2 3 1 4 Weight Score 0.05 0.11 0.04 0.11 0. Marketing.
g.050 4. External Key Factors Opportunities Entering into business (Pepsi Weight snacks earns 0.025 3.015 1.50 Weight Score 0.09 introducing new sports events (e.to 26 0. Formula I) to introduce energy drinks Strong financial and 0.eliminate obesity concept Link with computer internet/network/cell gaming business to focus on youth worldwide .) Entering into or ready-to-drink products (tea.075 3.00 0.00 0.50 0.050 4.26 .13 0.50 0. coffee.20 0.02 assets support available worldwide to take financing for expansion Introduce soft drink with focus of "healthy soft drink" .025 2. 0.35 60% from snacks Expansion by taking over Cadbury division or product line Expansionby introducing new etc.10 Rating 3.50 0.50 0.20 0.
43 2.430 1.50 0.075 0.50 0.43 technology Total Threats Hurting products containing sugar & sugar-substitute based drinks (trend towards more healthy eating & drinking) Increase in raw material costs Government policies may hurdle in expansion Competitor may access unreached parts of the world prior to Coca Cola Ban in public schools due to obesity issues Lack in snacks business Salesman not equipped with sales ordering devices Total Grand Total 0.075 0.00 0.075 3.26 0.40 0.86 27 .50 2.015 3.00 0.075 0.50 3.100 4.take advantage of 0.26 0.26 0.000 1.03 0.50 3.05 0.570 1.015 3.
Efforts were made for creating its awareness in the market.com › Education › MBA) Decline Stage of Coca Cola: 28 .6. (www.docstoc. Coca Cola’s brand differentiation and features diversification is emphasized to maintain and increase market share. inducing trial of the product and securing space in the outlet shelf. Product Life Cycle: The following graph illustrates the four stages of the PLC: Introduction Stage Of Coca Cola: In the Introduction stage. In this stage the marketing strategies used by Coca Cola were as follows: Product improvement New models were developed It entered new market segments It enlarged its distribution channels.9. Coca Cola was launched and initially promoted. and there was no existing demand for Coca Cola in this stage. (www. The marginal costs of Coca Cola are low in this stage. There is increase in competitors which are entering in the market. When their costs were high. sales volume is at the peak and most of the market is covered. (www.com › Education › MBA) Growth stage Of Coca Cola: In the growth stage Coca Cola experienced rapid increase in sales volume and its competition began to increase.com › Education › MBA) Maturity Stage Of Coca Cola: Coca Cola is in the Maturity stage from years now. sales volume were low.docstoc.docstoc. People got more awareness about Coca Cola and the increase in the competition leads it to decrease prices.
docstoc. more innovative products have been created that replaces that product. has bought the product or new. The financial strength factors often come from company accounting. These factors analyze a business internal strategic position.com/SPACE+matrix+model+strategic+management+method) 29 . • • • • CA values can range from -1 to -6 IS values can take +1 to +6 ES values can be between -1 and -6 FS values range from +1 to +6 The FS and ES dimensions of the model are plotted on the Y axis (http://www.This is the stage in which sales of the product begin to fall. The SPACE matrix is based on four areas of analysis.maxi-pedia. By definition. the CA and IS values in the SPACE matrix are plotted on the X axis. Internal strategic dimensions: • • • • Financial strength (FS) Competitive advantage (CA) Environmental stability (ES) Industry strength (IS) External strategic dimensions: There are many SPACE matrix factors under the internal strategic dimension. The only way to increase sales during this period is to cut the cost of the product. SPACE Matrix: The SPACE Matrix analysis functions upon two internal and two external strategic dimensions in order to determine the organization's strategic posture in the industry. (www.com › Education › MBA) 10. Either everyone that wants to.
5 Total Y-axis=2.5 Environmental Strength (Worst-6.25 30 .75 Total X-axis Score=3.5 -4 Average score=4. Best-1) Inflation Technology Demand Elasticity Taxation -2.5 -1 -2.5 5 4.Best+1) 5 4. best+6) 5 Barriers to entry Growth potential Access to financing Consolidation Average Score=4.25 -1 -1 -1 -2 External Strength Position Industry strength (Worst-6.SPACE MATRIX OF COCA COLA Internal Strength Position Competitive Advantage (Worst-6.best-1) Product Quality Market Share Brand& image Product life cycle Average Score=-1.75 Average Score=-2.5 5 4 5 Axis X Financial Strength Axis Y ROA Leverage Liquidity Cash flow (Worst+6.
scribd.com/doc/45886202/Space-Matrix) This includes focus on Water and Juices products.25 CA (-1. depending market penetration. Further company should integrate with other companies. So. that backward face integration.FS (0. horizontal diversification. the integration.25.50 for x-component and a ycomponent of 2. in this position Coca-Cola Company has set of possible strategies such as market development. acquisition of potential profitability.-2. competitor -6 -1 +1 +3. and avoid threats.0) IS (4. It shows that the company has an admirable position to use its IS in order to take advantage of external opportunities. innovation in branding and aggressive marketing strategy can bring long term 31 . and catering to health consciousness of people through introduction of different coke flavor and maintaining basic coke flavor. we noticed that the Coca-Cola Company falls into the aggressive quadrant of the SPACE matrix. 4. 0) horizontal company. on detailed forward integration. It is located at the coordinates of +3.75) Conservative +6 Aggressive +2. businesses.75. product development.25. overcome weaknesses.5) According to the graph above. concentric diversification and conglomerate diversification conditions (http://www.5 +6 Defensive Competitive ES (0.
Coca cola being a giant in the industry has a big power to use its resources of technology. sales and marketing. supply chain. Diversify into Unrelated Business Build shareholder value by doing a superior job of choosing businesses to diversify into and of managing the whole collection of businesses in the company portfolio Diversify into both Related & Unrelated Businesses For Coca Cola Related diversification: Coca cola belongs to the beverages industry.referenceforbusiness. In aggressive strategies coca cola inter in to new markets i. Action strategies Coca cola space analysis indicates that it should go for aggressive strategies.com › Beverages) 32 .e. snacks most probably would be suitable. •Share facilities or resource to reduce cost •Leverage use of a common brand name •Combine resources to create new strength and capabilities 2. Diversify into Related Business Enhance shareholder value by capturing cross – business strategic fits: •Transfer skills and capabilities from one business to another. Here is the list of businesses or products for which coca cola has used related diversification strategy: Energy drinks Juices/juice drinks Water Tea and coffee Soft drinks Sports drinks (www. distribution activities and support activities. manufacturing. During these years coca cola has used the diversification strategy many times and in almost all the cases it has opted related diversification strategy. Coca cola has now completed more than 100 years of its business. Diversification strategies Options: 1. R & D.
co. FriChiks. Market Penetration Market Penetration is the strategy. PFC are examples of the buyers in the local market. They look forward for expanding & growing in different markets & making a variety in their product line.com/doc/52148589/20/GROWTH-STRATEGY) 11. which every company has to opt when it reaches a maximum height of growth. Coca Cola can develop a new market if they 33 . who are huge multinational organizations like McDonalds.coursework4you. The approach is known as ANSOFF..2. A company can identify their growth through the product-market expansion grid. Dunkin Donuts and many more.php) 11. Many flavors of Coca Cola are not being sold in Pakistan.uk/essays-and. Growth Strategy: Ansoff’s Matrix Growth is the main objective of every organization. They are also keeping the local market in focus. Subway.scribd. AFC. Coca Cola in Pakistan is doing market penetration through the selling its products to the business buyer./ansoff-analysis.. Market Development Market Development is exploring new markets for the products you are already selling. (www.Coca Cola Company can also identify its expansion through the ANSOFF approach.11.1. (www. They are selling the Coca Cola as the only beverage in their restaurants.
(www. The company has to put large effort in that.introduce those flavors in Pakistan. (www. It is a tool that helps organizations for making strategies and to know the External environment in which the organization is working or going to work in future.1. Diversification Strategy Diversification strategy is one which every company really wants to practice. Technological. which are eaten with the beverages.scribd.com/doc/52148589/20/GROWTH-STRATEGY) 11. There are lots of chances of growth but the risk factor is also there.4 . But there is also an opportunity for them as they know the market of Pakistan. that what the people here can afford & what taste they want.3. (www.scribd. The company can manufacture products. Legal and Environmental. (www. Coca Cola is only dealing in beverages but it can also manufacture its own snacks item as the company name is known almost all over the world. as it has to conduct all market research & feasibilities for it. Political factors: Government Regulations 34 .com/doc/52148589/20/GROWTH-STRATEGY) 11. Social. there is a chance that it loses its customers or there will be a crowd of people demanding their product.com › Business) 12. Many people in Pakistan want a change in the beverage industry. which are not manufactured by it before.com/doc/52148589/20/GROWTH-STRATEGY) 12. So it can cash the name by producing the items.scribd. PESTLE Analysis of Coca Cola: PESTLE stands for Political. as they are having the same flavors from many years.ehow. Coca Cola Company can do product development by introducing the new flavors in Pakistan which are not sold anywhere in the world by the coke company. Product Development A company takes a risk when it does Product Development. Economic.
as it is a purely consumer product.druglibrary.druglibrary.htm) Currency Devaluation Depreciation of currency generally has no major effects on Coke they really don’t do imports& exports on large scale. (www. It is monitoring the policies and regulations set by the government. Pressure groups tried to de-market Coke in Pakistan by spreading the rumors that the revenue collected from coke goes to the Jewish lobby.druglibrary.org/schaffer/history/ophs. So it affects slightly the revolution of Coke. “Environmental protection laws” they somewhat effect the industry of Coke. There are no political issues in this instance.htm) Elections & Military takeover Another political variable which effects Coke is “elections & military takeover” Because in the days of elections and marshal law’s condition the countries production in any field is declined. (www. everything is recyclable. because of GATT rules and government is also supporting FDI inflow in Pakistan. But after making the adjustments in plants and applying the proper way of wastage the chances of being affected by the “protection laws” are going to be diminished.org/schaffer/history/ophs. The company has no problem from doing business in Pakistan. they keep at least one company owned plant in a country.org/schaffer/history/ophs. (www.Coke is not usually affected by government regulations & deregulations as no major changes occur in the food laws. (www. From the caps till the labels on the PET bottles.htm) Foreign Trade regulations Sudden changes in political conditions in a certain country doesn’t effect much on Coke.So “political conditions” are over all leave neutral effects on coke’s industry (www.org/schaffer/history/ophs. So it impact good for the Coke’s reputation.druglibrary. From last two years Government is going to be really very much conscious about the environment.druglibrary.htm) 35 .htm) Environment friendly Coke is a very environmental friendly product. They try to be local market oriented.org/schaffer/history/ophs.
(www. Coke that was 36 . The economy worldwide was disturbed by the incident of September 11th. Exchange rates Inflation Economic factors do affect a company in negative & positive manner.druglibrary. Inflation and wage rate go hand in hand when there is increase in inflation.druglibrary.org/schaffer/history/ophs. When there is increase in the interest rate it may stop the company to do further investment as the cost of borrowing is high. (www. Taxation changes.org/schaffer/history/ophs.htm) Unemployment Coke has employed 1800 workers in the last two years & huge amount of revenues have been collected from Pakistan. The increased price has a high negative effect on coke.12. it is affected if there is inflation in the country & as a result coke increases its prices. petroleum and oil prices. 2001.2.druglibrary. Economic growth. the employee demand for higher wage rate to cope up with the cost of living. Pepsi is always waiting to take a competitive edge.org/schaffer/history/ophs. shortage of electricity they are not getting economies of scale. Coke is not an exception here. It is a major threat in external environment for Coca cola because due to the instability. Economic factors: These include Interest rates. Coca cola use derivative financial instruments to cope up with fluctuating interest rates. All these factors further leads to increase in sales taxes which cause increase in per unit output/ per bottle increase.htm) Interest rates Interest rates are the rates imposed on the money borrowed by the company from the government.htm) Disposable income The disposable income of the people of Pakistan is decreasing day by day due to increase in the cost of expenditures such as increase in utility bills. Inflation. (www.
In Pakistan. Coca cola is not facing as such tough situation from Pakistan especially in technological environment. which are also environmental friendly. Cola Company got the technology of dispensers so they give Coke to people that is as fresh from the fountain.3Social factors Coke. Technological factors Technology in any field is effecting the development of that industry at a high rate. a customer oriented company. waste environment education & recyclable products.htm) 12. Pakistan where it provides basic education to children. The recyclable products used in manufacturing coke helps save people’s environment.druglibrary. the disposable bottles. Beverage industry is also affected by the technological factors but in a positive manner. the refrigeration methods.thought as a luxury good is now becoming a necessity for some people who still have some income. advancements in automation and information technology have posed the challenging situation for the organizations in future. The new methods of filling the bottles.druglibrary. (www. Coca Cola Company is producing new packaging sizes with differentiated packaging with the help of new technology everyday. Coke is being supplied with the refrigerators. Coke is adopting all the new technologies available. climate changes. Coca Cola Company has chosen the technology for the usage of PET bottles. Coke has also launched programs to increase awareness about the conservation of water & natural resources. Coke is also helping the needy & knowledge seeking people with fewer resources by providing them books. (www. Coca Cola Company chose the recycling method to keep its environment clean & also to have the soft corner in people's heart. Actually coca cola adopt its own technical 37 .org/schaffer/history/ophs. the PET bottles all made so many changes to the Coke which is one of the giants in the beverage industry. as they claim in the subcontinent "thanda matlab Coca Cola".4. scholarships & opportunities to work.htm) 12. always take steps for the welfare of its consumers. coolers & many more for keeping the bottles chilled.org/schaffer/history/ophs. Coke has launched a program in Gujranwala.
The company is in the process of setting specific global targets. They track the previous record of the ruling party and policies.druglibrary.html) 12. With major climate changes occurring due to global warming and with greater environmental awareness this external factor is becoming a significant issue for firms to consider. If any problem arises regarding political or legal issues. (www.org/schaffer/history/ophs.they deny and left the huge Indian market. When Indian Government asked for formula of concentrate. Environmental Factors Environmental factors include the weather and climate change. Georgia. if the law affects the likelihood of customers buying the good or using the service). The introduction of age discrimination and disability discrimination legislation. in UK there have been many significant legal changes that have affected organizations behavior. the company invested in designing and producing sustainable fashion apparel made from recycled PET bottles.5. the “Tidy Britain Group” in Great Britain and “Keep America Beautiful” in the United States.6.” Coca-Cola launched their sustainable fashion line of apparel and consumer products at the new World of Coca-Cola in Atlanta.They perform thorough study of legal and political problems to decide to enter into any country. if new systems and procedures have to be developed) and demand (e. Legal changes can affect a firm's costs (e.g. Changes in temperature can impact on many industries including farming. Legal Factors In recent years. In2007.org/schaffer/history/ophs. The technical progress in Pakistan especially in IT sector would bring positive impact on coca cola.html) 12.g. (www. Coca Cola system supports numerous litter prevention and community beautification organizations around the world. The Tshirts are made from a blend of recycled PET bottles and cotton and feature playful slogans such as “Make Your Plastic Fantastic” and “Rehash Your Trash. including “Keep Australia Beautiful” in Australia. they don’t sacrifice their policies and secrecies.druglibrary. as we have a case of COKE AND INDIAN GOVERNMENT. an increase in the minimum wage and greater requirements for firms to recycle are examples of relatively recent laws that affect an organization’s actions. technical procedures and equipments all over the world for maximum output.knowhow. they know that public education is a key to preventing litter. The company has worked hard to advance community recycling programs. They also keep in mind the attitude of other opposition parties about foreign companies. tourism and insurance. in addition. 38 .
org/schaffer/history/ophs.html) 13.druglibrary.(www. QSP Matrix Of Coca Cola: Quantitative Strategic Planning Matrix 39 .
08 2.06 0. soft drinks.00 2.16 worldwide network 3.48 0.32 0.00 1. A lot of loyal Pepsi customers are not enough loyal Coca Cola 0. Product diversification (water.08 0.24 0.30 0.00 2.12 0. Pakistan Opportunities 1.10 0.24 0.10 0.00 4.00 2.00 1.Solid Financial performance 4.00 3.00 .00 2.00 AS 4.00 1.00 TAS 0. 0.00 0.08 recognition 2. Corporate identity Weaknesses 1.00 0.18 0.00 0.00 0.00 1. Credit rating 2.40 0. Does not enjoy the number one position in India. Bottled water growth 6.06 0.20 particularly in the US (Wal-Mart accounts for more than 10% of Coca Cola's business in the US) 3.30 0.00 0.00 customers 4.06 1.48 0. One of the world's most recognized brand 5.00 0.00 4. Catering to Health Consciousness of People 40 5.00 0.10 0.11 0.12 0.06 3.00 4. etc) 6. Possible growing demand 2.13 0.13 0.11 0.00 3.00 3.30 0.16 0.00 3.10 2.10 0.00 0.00 TAS 0.24 0.12 0. Customer concentration. 0.00 1. Product AS 3.24 0.13 0.00 2. Brand equity/image distribution & and 0.10 1.08 3. 3.22 0.08 0. Expansion – Reaching all segments. juices. sport drinks.20 0.Internal External Factor Weight Introduce New Product Outsourcing Strength 1.00 0. Acquisitions of smaller players. Globalization 4.18 0.00 0.
14. Coca Cola’s objective is to target every consumer of the country so Coca Cola has to set its prices at such a level which no one can offer to its consumers. Otherwise. Market pricing policy Prices in beverage industry are determined by the consumer. If price of the Coca Cola exceed too much from the Pepsi then people will shift to the Pepsi Cola and on the other hand if the price of Coca Cola decreases people might get the impression that its quality is also low. That is why Coca Cola charges the same prices as are being charged relatively high price. Pricing Strategy Competition Based Coca Cola has intense competition with Pepsi so its pricing can’t exceed too much nor decrease too much as compared to the price of Pepsi Cola. Promotional pricing strategy Coca Cola has offered promotional prices very frequently. despite being market leader is the same as that of its competitor Pepsi Cola. Conclusion: 41 . In an economy like that of Pakistan.1.14.5 liter bottle. consumers tend to switch towards a low priced product. Especially on some occasion. Pepsi places its customers into some psychological pricing strategies by reducing a high priced bottle and consumers think that they save a lot of money from this. by its competitors. consumers may go for Pepsi Cola in case of availability of Coca Cola at 15. Pricing strategy: The price of Coca Cola. Sometimes. Coca Cola reduces its rates like in Ramzan Coca Cola reduces its rate unto 5 Rupees on 1.
Recommendations: 42 . Lastly. Furthermore strength of the company is the effective advertising it uses. competitor businesses. It needs to use its internal strength to develop a market penetration strategy and market development strategy. In Pakistan as compared to Pepsi. acquisition of potential profitability. Coca-Cola has less number of consumers as Pepsi’s market share in Pakistan is approximately 54% where as Coke market share is hovering about 36%. innovation in branding and aggressive marketing strategy can bring long term 16. The battle of the two companies gives life to the industry. Lastly an opportunity for the company is to reach newer territories where it can offer its products and services. I have concluded from this detailed report that despite the fact Coca Cola currently occupies the market leadership position overall but it does not guarantee that the company will sustain its position in the future as well. innovation and technology especially in Pakistan to attain market leader position in this region as well. The main weakness of the company is the health issues when as far as their product is concerned. Further company should integrate with other companies. hence the conclusion is that Coca-Cola must enhance factors such as relationship marketing. Lastly. a weakness of the company is it not being able to separate from other beverage companies.The soft drink industry is focused on the battle for supremacy of the two companies. and informative. Coca Cola’s strength of the company is the strong brand name it has. An opportunity for the company is to find out more ways to give a distinctive taste to their product. strength of Coca Cola is its website that is easy to use. A weakness of the company is its inability to restrict certain age from using their product. attractive. The goal of Coca Cola is to produce growth for the company. It intends to not only reinvigorate the company but inspire the people working for them. Coca-cola’ strength is the international popularity it has. Opportunity for the company is to create products that can give not only satisfaction to clients but health benefits as well.
The company can also use more internet advertisements. This will help company to maintain quality control. The company to increase profitability and occupancy must first add new methods to advertise itself to people. in the market to fulfill the local need. conducted by the international firm Pakistani people like less sweet cola drink. According to the survey. This may cause the company more finances but it may help the company in increasing its profits. Currently in Pakistan there are only two flavor of coke available. Marketing team should try to increase the availability of Coke in rural areas. Coca Cola Company should think about producing Coke Can locally as well because currently coke Cans are only smuggled from abroad and sold at high price. which are following.After completing our project I have come up with following recommendations for the coca cola company. so providing more satisfaction to them company should introduce ½ liter disposable bottle. They can collaborate with internet companies and post advertisements and reminders on other companies’ site. Currently two plants of coke are being run under private companies. Company should plan to buy these plants as well so that customers can get equally good quality all over the country. The company can make additional use of TV and newspaper adv ertisements to showcase its products to people as well as to show the effect of the use of their product to people. Company can capitalize on this factor. company can extend their portfolio by introducing new flavors. The company’s relationship with international clients is important because the international clients are the one that can make the international expansion successful or it can make it fail. Now young generation has a trend to drink coke 2 regular bottles at same time. one is in Peshawar and other in Rawalpindi. So for this Coca-Cola Company should think about bringing a new product for example new diet flavors. 43 . The company should also increase its knowledge of communicating with international clients to increase the company’s companionship with them.
co.maxi-pedia.net/VanitaAgrawal/strategic-management-of-coca-cola) (www.com › Business) (www.ehow.com/SPACE+matrix+model+strategic+management+method) (http://www.htm) (www.org/schaffer/history/ophs.ulpgc.docstoc.scribd./ansoff-analysis.webs.slideshare.php) (www.druglibrary.com/ QSPM) 44 .referenceforbusiness.com › Beverages) (http://www..com/doc/45886202/Space-Matrix) (www.com › Education › MBA) (http://www.doc) (www.maxi-pedia.es/sistrat/english/casos/cocacola.scribd..uk/essays-and.coursework4you.REFERENCES: (www.com/doc/52148589/20/GROWTH-STRATEGY) (www.