The document discusses the history and business of Coca-Cola. It notes that Coca-Cola was invented in 1886 in Atlanta, Georgia and discusses some of its early growth. It then summarizes Coca-Cola's current business, including that it sells over 3,500 beverage products globally and has a brand value of $74 billion. The document also outlines Coca-Cola's mission and strategic priorities to continue growing profitably.
The document discusses the history and business of Coca-Cola. It notes that Coca-Cola was invented in 1886 in Atlanta, Georgia and discusses some of its early growth. It then summarizes Coca-Cola's current business, including that it sells over 3,500 beverage products globally and has a brand value of $74 billion. The document also outlines Coca-Cola's mission and strategic priorities to continue growing profitably.
The document discusses the history and business of Coca-Cola. It notes that Coca-Cola was invented in 1886 in Atlanta, Georgia and discusses some of its early growth. It then summarizes Coca-Cola's current business, including that it sells over 3,500 beverage products globally and has a brand value of $74 billion. The document also outlines Coca-Cola's mission and strategic priorities to continue growing profitably.
• Hamza Mughal G1F18MCOM0069 • Awais Malik G1F18MCOM0070 • Adnan Malik G1F18MCOM0056 Our Parents and Teachers taught us “ Keep your dreams alive. Understand to achieve anything requires faith and belief in yourself, vision, hard work, determination, and dedication. Remember all things are possible for those who believe” Mian Zahaib Ahmed G1F18MCOM0068 • Coca-Cola is everywhere. The iconic American brand is recognized instantly around the globe and sold in more than 200 countries. Additionally there are thousands of subsidiary beverages that you might have no idea are owned by Coke. • And altogether 1.7 billion servings of Coke products are consumed every day. • Coke makes so many different beverages that if you drank one per day, it would take you over 9 years to try them all, more than 3,500 beverages (and 500 brands), spanning from sodas to energy drinks to soy-based drinks. • The Coca-Cola brand is worth an estimated $74 billion: more than Budweiser, Pepsi, Starbucks and Red Bull combined. • If every drop of Coke ever produced were put in 8-ounce bottles and laid end-to-end, they would reach the moon and back over 2,000 times. • There are 33 non-alcoholic brands that generate over $1 billion in revenue. Coca-Cola owns a whopping 15 of them. • Coca-Cola spends more money on advertising than Microsoft and Apple combined. The Coca-Cola Company is an American corporation, and manufacturer, retailer, and marketer of nonalcoholic beverage concentrates and syrups. The company is best known for its flagship product Coca-Cola, invented in 1886 by pharmacist John Stith Pemberton in Atlanta, Georgia. The Coca-Cola formula and brand were bought in 1894 by Asa Griggs Candler, who incorporated The Coca- Cola Company. The company’s headquartered in Atlanta, Georgia, but incorporated in Wilmington, Delaware has operated a franchised distribution system since 1889: the Company only produces syrup concentrate, which is then sold to various bottlers throughout the world who hold exclusive territories. Coca‑Cola is first served at Jacobs’ Pharmacy on May 8, 1886. Nine drinks a day are sold during this year.
Company accountant, Frank Robinson,
names the drink “Coca‑Cola,” and thinking the two Cs would look well in advertising, pens the famous Spencerian script logo. • Coca-Cola’s Journey is carry on with the passage of time
• And now it has more than 3500 products with it.
The Coca Cola’s Mission statements:
“ To refresh the world
To inspire moments of optimism and Happiness To create value and Make a difference ” • Be a great place to work where people are inspired to be the best they can be. • Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people’s desires and needs. • Nurture a winning network of customers and suppliers, together we create mutual, enduring value. • Be a responsible citizen that makes a difference by helping build and support sustainable communities. • Maximize long-term return to shareowners while being mindful of our overall responsibilities. • Be a highly effective, lean and fast-moving organization. is to be the world’s leading supplier of branded beverages solutions, to provide a consistent and profitable growth and to have the highest quality of products and processes. To achieve this, the company has established six strategic priorities and has built these in every aspect of its activity:
1. fizzy drinks Accelerate growth, led by Coca-Cola
2. Broaden the range of products, where appropriate, for example water, bottled tea, coffee, juices, energy drinks 3. system Grow Profitability & ability along with bottlers 4. Creatively serve customers (e.g. resellers) to build their businesses 5. Invest intelligently in market growth 6. Drive efficiency & cost effectiveness using technology and large- scale production cost control enabling our people achieve extraordinary results every day. Strength Strong advantages over their competitors Coca cola utilizes a strong marketing strategy and various enterprise Advertisements that entice consumers to buy their products. The Brand logo and Image of the Coca Cola company is cemented within the majority of consumers in the market and has almost become a daily part of their consumption. Coca Cola has managed to keep their formula a secret. Giving them a huge advantage over their competitors They have an integrated system of Marketing ranging from vending machines within the fast food industry and multiple strong channels of distribution i.e. McDonalds. They Have the ability to produce innovative products via a well established research and development team. Due to the fact that they dominate a high market share, their products are mostly products that lead the market. Weakness Due to the sheer size of their industry, the control of the corporation has not been easy due to hundreds of different components within the franchise. A consumer Stereotype of Coca cola is that their beverages are not healthy. This is widely due to the fact that Coke contains caffeine, sugar and various other ingredients. Because the products of Coca-Cola Company are mainly bottled drinks, the quality of the products which consumers finally enjoy is relatively difficult to control (due to the possibilities of expiration or metamorphism and other situations). It tends to be very easy for the consumer’s to buy from the competitor’s i.e. Pepsi due to the fact that each products are very similar in how they are made, how they are marketed, their prices and to some extent their taste. Opportunity Generally speaking, it is quite easy for the companies to enter the industry of soft drink. However, the standard which is needed to come to be an international corporation is quite high. As is known to all, carbonated drinks suit better with the demand of young people. Also, the proportion of young people is increasing fast, especially in some countries in Latin America and Asia Pacific. This would therefore be a positive sign that Sales in the future should increase and therefore bring in More revenue. All over the world, fast food culture coordinates with the carbonated drinks, Junk Food Outlets such as McDonalds, KFC, King Burger etc. have normalized the idea of Coca Cola being a drink that goes with fries and a burger. Big Events such as The World Cup with draws in millions of viewers, by sponsoring and or basing advertisements around such events increases sales. Threat There is still a high possibility that the other non-coke carbonated beverage will take place of Coca-Cola, for example Pepsi, one of Coke’s biggest competitor’s If the general consensus decided to forgo a healthier lifestyle it would almost certainly cause a decrease in sales for some of Coca Cola’s main products i.e. Classic Coke. Even though the Secret Formula is a key factor to the success of the company, it also carries a big risk. If the formula was to be discovered it would prove disastrous for the company and could almost be certain doom for the firm. Price The prices for Coca cola products tend to vary between 45 pkr for cans and 90 pkr for 1.5L bottles. Setting low prices for the products means that the product is very price elastic. This means that lower prices guarantee more sales and therefore an overall increase in Revenue. Also due to the fact that it is a product consumed on a daily basis, it is more beneficial to the franchise to set cheaper prices. Prices are also low, due to the fact that it is cheap to make their product and sell it in bulk to different consumers. Product The Coca Cola franchise is Responsible for several different products. For example Coca Cola, Sprite, Dasani Water. By differentiating their product they are able to satisfy several of the consumer’s wants and needs. A typical customer is not going to only drink one type of beverage, and therefore by differentiating your products you are able to cover all their wants and needs. This also allows the company to target several different markets, for example the younger generation is more inclined towards beverages such as Coca cola and sprite. Whereas the older generation may only drink such beverages on occasion and prefer Water. It also allows Coca cola to target consumers who may not be able to drink Normal coke due to diabetics. This area is covered by the product known as ‘Coke Zero’ which claims to have no Sugar but still contains the taste of Coke. Place Coca Cola products such as Coke and Coke Zero can be found pretty much anywhere. The Coca Cola franchise distributes their products among various outlets, For example ‘7-Eleven’. By distributing products to convenient stores, it allows their products to be readily available to anybody who wants to quench their thirst. Convenient outlets such as 7-eleven are key to Coca Cola’s sales as such stores are located in highly populated areas where the potential for a sale is very high, if not guaranteed. On top of that, the products sold at convenient stores tend to be more expensive. This is due to the fact that convenient stores are located in such highly competitive locations with little to no competition. Promotion Coca Cola do various different types of promotions ranging from small prizes to prizes worth $100,000 and more. The most common promotion that they use is to hide a code under the bottle cap, and if you get the right code you stand to win a prize ranging from hundreds to thousands of dollars in value. By offering such high end rewards, Consumers will be very eager and willing to buy the product, as the chance of winning a product worth hundreds of bottles of coke is too good to miss. Coca cola on occasion also run more than one type of promotion during a certain period. Coke also tend to do very well during Holidays and Major events such as EIDs/ New Year/ Christmas / The world Cup. Advertising One way that Coca Cola have implemented their products in the past was via Advertising. A prime example of how they did this was with one of their more recent products, ‘Coke Zero’. To successfully introduce this product into the market, they had to target specific age group i.e. Young adults. By narrowing down your Target market, it makes it easier to design the marketing and advertising strategy for the product as it narrows down the possibilities. If Coca Cola did not carry out this type of Market Research, they would have most likely not have made as much revenue as they have done. Celebrity Endorsement Hiring an iconic figure is a very effective way in implementing a product into the Market. In The Subcontinent Coca Cola hired Ali Zafar, Mahira Khan, Depika Podokon and Katrina Kaif to endorse the products of Coke. The reason why celebrity endorsements are effective forms of implementation is due to the fact that they are known worldwide, they have a huge fan base, and almost always have a group of fanatics that will try to do exactly what they do. The idea of selecting an attractive successful Subcontinent artists was to entice young men to buy the products. Sponsorships Coca Cola have successfully launched their products into the market via Sponsorships. In Pakistan Coke Studio is very famous among young generation. Since 2008 Coke Zero have been sponsoring a NASCAR Sprint Cup called the “Coke Zero 400”. By sponsoring such big events, it shows the consumers that they are aware of their interests and also advertises the product as a “Sporty Beverage”. Sponsorships would also be able to create consumer loyalty as it shows that your supporting something that they like. • Effective message strategy Under this approach, the management ensures that message communicated from any corner of the organization is spread across the organization and retains its intended meaning. • Communication channels Leaders at Coca-Cola have enacted effective communication channels that allow free flow of message from/to the management; the channels include internally made mechanisms like telephones extensions, intranets, emailing systems, notice boards, and meetings. • Organizational culture and behavior Coca-Cola has largely invested in an organizational culture that supports free interaction among employees and the management. • Effective message strategy in the case of Coca-Cola; the management has a central department that dispenses information across the organization whether for internal or external consumption. • Brand management To maintain the strength of the brand and attain brand loyalty, the company ensures its products are differentiable in the market; this call for high quality good and brand salience. • Public relations Coca-Cola has one of the world’s largest advertising budgets where it ensures that it sells products to people of different classes by creating adverts and marketing’s that fit the particular class. • Media management In the changing business environments, the company is forced to maintain some close links with stakeholders via the media. In international journals and magazines, the company posts some articles that aims at creating better linkage and understanding with its customers. Revenue Net income Price per Share Year Employees in mil. USD$ in mil. USD$ in USD$ 2000 17,354 2,177 17.11 2001 17,545 3,969 15.24 2002 19,394 3,050 15.82 2003 20,857 4,347 14.28 2004 21,742 4,847 15.34 2005 23,104 4,872 14.47 2006 24,088 5,080 15.26 2007 28,857 5,981 19.24 90,500 2008 31,944 5,807 19.71 92,400 2009 30,990 6,824 18.49 92,800 2010 35,119 11,787 22.12 139,600 2011 46,542 8,584 26.84 146,200 2012 48,017 9,019 30.70 150,900 2013 46,854 8,584 33.78 130,600 2014 45,998 7,098 35.82 129,200 2015 44,294 7,351 37.29 123,200 2016 41,863 6,527 40.63 100,300 2017 35,410 1,248 42.80 61,800 Famous Brands under Coca-Cola Healthy beverages – Minute Maid -Vio (flavoured milk) – C2 Cola -Fruitopia – Enviga (Green Tea) -Nestea – Huiyuan Juice (Chinese Special Recipe) - Powerade Dasani Water – Glaceau (Vitamin Water) Coca-cola is one of the most respected brands in the world and it has long warded off the competition with the use of a strong distribution strategy and equally strong marketing messages. Coca-cola has over a period of time used positive marketing to the best of its advantage and has rarely been involved in negative marketing (which other brands do frequently). List of top Competitors 1) All Pepsi’s Products 2) Red Bull 3) Gatorade 4) Dr Pepper (Dr Pepper Snapple) 5) Lipton 6) Nescafe 7) Tropicana