You are on page 1of 12

THE STRATEGIC POSITIONING OF

COCA-COLA

Group 6

STRUCTURE
1. The Coca-Cola Company as a world leader
2. Strategic Positioning of Coca-Cola
2.1. Operating globally vs. acting locally
2.2. Coca-Colas distribution model
2.3. Differentiation strategy vs. cost leadership strategy
2.4. Margin vs. volume strategy
2.5. Segmentation: broad coverage strategy vs.
focus strategy
2.6. Growth strategy
3. Conclusion

1. THE COCA-COLA COMPANY

Recipe invented in 1886, company founded in 1892

Leading manufacturer, marketer and distributor of


non-alcoholic beverage concentrates and syrups
world-wide

Customers in 200 countries all over the world

Brand value: 80.68 billion US dollars


Great success

2. STRATEGIC POSITIONING OF
COCA-COLA
Market definition

Relevant sector: carbonated soft drinks market

Dominated by Coca-Cola with a share of 47%

High market concentration in this industry

2.1. OPERATING GLOBALLY VS.


ACTING LOCALLY

Many activities are controlled centrally

More than 230 brands in nearly 200 different countries


meeting demands of local tastes and cultures as a big
challenge

The Coca-Cola Company has delegated decision making


largely to individual markets

Maintenance of a global brand strategy, BUT:


communication is different in each country.

2.2. COCA-COLAS DISTRIBUTION


MODEL

Products available in supermarkets and other retail


stores

Package: cans and bottles (glass/ plastic)

Offered in many restaurants

Really easy and convenient to get the product

2.3. DIFFERENTIATION STRATEGY VS.


COST
LEADERSHIP STRATEGY

Coca-Cola Company: differentiation strategy (high


amount of money is spent on
advertising for creating a unique
brand image)

E.g. Coca-Cola Zero


with Manuel Neuer

Many differentiated products:

Products are sold at a slightly higher price compared


to competitors

BUT: a clearly higher benefit is offered

Additionally: importance of the motivation,


healthiness and happiness of its employees

2.4. PROFIT MARGIN VS. VOLUME


STRATEGY

Coca-Cola: Profit margin strategy

Strong product differentiation and low price


elasticity

Benefit leader

Charge of a price premium (but only slightly higher


than the competitors)

2.5. SEGMENTATION

Coca-Cola: broad coverage strategy

Offers many different products (e.g. fruit drinks,


sport drinks) in many different flavors to a wide
range of customers all over the world

No specialization in customer groups, products or a


geographical area

2.6. GROWTH STRATEGY

Internal growth: Ansoffs matrix


- Beginning: market penetration
strategy
- Market development
(internationalization)
launching into foreign markets
- Product development modeling of new products
- Diversification

External growth: acquisitions

3. CONCLUSION

Best combination of operating globally and locally

Awareness of necessity of advertising (not enough to offer


different products of superior quality)

Consciousness of the need for diversification

Responsibility taken in the field of their employees

Ability to react quickly to changes in the environment


ability to adapt its business model efficiently to different
surroundings

Permanent efforts to grow