You are on page 1of 19

Political &

Macro Environment Impact

Coca Cola
International Management Assignment 01

7 billion beverage servings each day Invest millions of dollars for enhancing human life around the globe through CSR project.Hard Fact’s about coke… Introduce by John Pemberton in 1886 @ Atlanta Operational Reach 200+ countries by 2012 Company Associates with 90500 workers in plants Coca-Cola currently offers nearly 600 brands in over 200 countries or territories world’s largest beverage company selling more than 1. .

5% up to 2009 2010 2013 2017 Global Beverage Market US D Billion  Bottle water to continue the soft drink market with a projected growth rate of 5.6% $1. Current average growth rate is 10% Z . 21%  Global Energy drinks markets has surged by 14% growth in 2011 . 47%  Ready to drink tea and Asian specialty will be the fastest growing soft drink segments with an expected growth rate of 9% and 14% Cadbury. 24% Coke.04 $0.90 Current trends in the Beverage Industry  The beverage industry experienced a CAGR of 2.Global Beverages Market Global Beverage Market CAGR 4.4% Non-Alcoholic Beverages .35 $1. 8% Pepsi.Market Share % Others.

CCC. 43% Coke CCC Pepsi Others • Increased number of innovative products introduced to the market . 7% Current trends in the Local Beverage Industry • Fresh Fruit juice and Herbal Drinks has seen a significant growth rate of 20% in 2012 Pepsi. 40% • Gradual decline in carbonated drinks consumption • Volatility in the Supply Chain with higher input costs for key commodities. 10% Coke. Non-Alcoholic Beverages .Beverages Market in Sri Lanka The Food and Beverage industry is a very important sector of Sri Lankan economy as it contributes around 10% of the GDP. In 2012 only.Market Share In Srilanka % Others. 20 new products have entered the Sri Lankan Market .

PESTEL Analysis .

PESTEL – Political Factors Tax policies -import and excise duties Trade restrictions Environmental policies and laws Influence derived from the FDA (Food and Drug Admin) Standards imposed by the state Global Political issues .

8% (Jan’13) Hike in freight and import taxes Commodity Levy Amendments Effective From Aug’13 Special .PESTEL – Economic Factors Rupee depreciation Increased trade deficit Fluctuating Interest Rates – changed 6 times (Oct’11 –Jul’13) Fluctuating Inflation rates – 9.

PESTEL – Social Factors Shift towards in healthier life styles Increased aging population worldwide Alcohol content – (Rumor amongst ethnic groups) Pressure from social groups – Use local products High Calorie content .

PESTEL – Technological Factors Technology gap – shrink caffeine. phosphoric acid levels Coca Cola Sri Lanka yet to launch Earth Friendly Bottling Technology Traditional Bottle crates used Absence of vendor machines in Sri Lanka Dependency in Sole Bottling Partner Technology in Sri Lanka Source – Company Corresponding data .

(Eg –Pesticides in the Coke ingredients in India) Improper Waste Management .PESTEL – Environmental Factors Water Usage Material used for packaging / distribution The contents of coke.

PESTEL – Legal Factors Adhering to the local / International laws Advertising and labelling related laws Recent Highly volatile legal environment locally Legal issues -environmental and health concerns .

SWOT Analysis •Leader in the beverage market •Successful Marketing Campaigns •Brand Reputation and Customer Loyalty •Extensive distribution channels •Bargaining power over supplier •Effective CSR •Bottled water consumption growth •Increasing demand for healthy beverages – Diet Coke •Growth through acquisitions •New emerging markets (BRIC) attracted by more consumption •Significant focus on carbonated drinks •No Clear Diversification •Many brands with insignificant amount of revenues •High debt levels •Changes in consumer preferences •Water Scarcity in the world •Legal requirements to disclose negative information on labels •Inflation of the economies – appreciation of the dollar value .

Key Drivers Government Taxes and Duty Tariffs Influences from other Higher Authorities – FDA/SLICA/Health Ministry Consumer Behavior/Perception Change – More Health conscious of life styles Local & Global technology advancement More recyclable – More Efficiency – Minimize environment pollution Volatile market condition – Competition/localism Negative Publicity .

Key Strategies Operation Strategy Financial Strategy Marketing Strategy  .Economies of Scale  Shopper Engagemen trengthen Distribution Self Entrepreneurship More Distribution  Higher Market Share  Different Packaging  Tactful Media Campaig  Consumer Activation  Experience curve benefit  Marketing Differentiat Strengthen BTL Activity      Developed know how  Segmentation Visibility  Supply Chain Benefits  Product Portfolio Shop branding Coolers and Crate Display Bill Boards/Dealer Boards  CSR against Negative  Advance Technology Training & Development Skill development  Latest Machine  Enhance Productivity .

Global CSR Projects Diverse & Inclusive Culture Water Stewardship in Africa Sustainable Packaging & Recycling Energy Conservation & Climate Change Product Portfolio & Well Being .

March 26. (Reference: Daily FT. 50 million. 2013) . reconstructed complete by Coca-Cola with an investment of Rs.CSR Project in Srilanka ‘Say We Care’ – is and Coca-Cola Employee volunteerism project Some Completed project are. Play area in the Maharagama Cancer hospital Renovations to the Ranaviru Sevana / Ragama Hospital Sanitation facilities to Schools Mahamaya Girls' School in Hikkaduwa.

Recommendation Market Penetration  Further Development of Distribution  SKU Development (PET)  Product Development  Low Calorie products  Organic Drinks  Low Sugar Products  Energy Drink Market Development  Further Development of Distribution  SKU Development (PET)  Diversification  Step in to Water Industry .