Coke Wastet

8/7/2019 Coke Wastet

1/16

Executive Summary

Coca Cola Company will invest up to Rs 550 crore to set up a new bottling plant in Karnataka. The new

unit is being set up by Hindustan Coca-Cola Beverages, the Indian subsidiary of the firm, at an initial

investment of Rs 250 crore. The work on the plant is expected to commence as soon as the company

gets all government clearances. The proposed plant, which will be the third unit of the company in the

state, will manufacture a range of beverages, juices and juice drinks which will cater to markets in

Karnataka, Andhra Pradesh and Maharashtra.

Coca Cola has so far invested over USD one billion in India. It has 55 bottling operations, of which 23

are owned by the company and rest are franchisee owned. Besides, 11 contract packers manufacture a

range of products for it.

Banks and financial institutions have to examine the viability of a project before providing financial

assistance. They have to ensure that the project will generate sufficient return on the resources invested

in it. With the shift from security oriented lending to purpose oriented lending; the study of viability of a

project has become more vital for financing a project.

Further, sanction of financial assistance after proper appraisal alone is not sufficient for success of a

project. Disbursement of funds according to the requirements of the project and close supervision and

follow- up are also equally essential to recover the financial assistance provided.

In order to develop proper coordination with the entrepreneurs, the financial institutions and many banks

are not only providing financial assistance to viable projects but also assist the entrepreneurs during all

phases of a project viz., identification, selection, appraisal, implementation and follow-up.


2/16

Table of Contents

1. Introduction to Project Appraisal

2. About the company

3. Project Environment- Beverage Industry

4. Market Feasibility, Ecological Analysis and Technical

feasibility

5. SWOT analysis

6. Conclusions and Recommendations

Introduction to Project Appraisal


3/16

It is the process in which the lending financial institution makes an assessment on various aspects of an

investment proposition to arrive at a final decision.

The important facets of project appraisal are:

1. Market analysis2. Technical analysis

3. Financial analysis

4. Economic analysis

5. Ecological analysis

MARKET ANALYSIS:

The first step in project analysis is to estimate the potential size of the market for the proposed to be

manufactured and get an idea about the market share that is likely to be captured. Put differently, market

and demand analysis is concerned with two broad issues: aggregate demand for the product/service and

share of the market that will be for the proposed project.

These are very important, yet difficult, questions in project analysis. Intelligent and meaningful answers

to them call for an in-depth study and assessment of various factors like patterns of consumption growth,

income and price elasticity of demand, composition of the market, nature of competition, availability of

substitutes, reach of distribution channels, so on and so forth. Yet, in many cases project feasibility

studies seem to make a short shrift of market and demand analysis. It is not uncommon to find cursory

statements like the market is attractive or the demand is expected to exceed supply as substitutes for

a thorough market and demand analysis in project evaluation exercises.

TECHNICAL ANALYSIS:

Technical appraisal of a project is essential to ensure that necessary physical facilities required for

production will be available and the best possible alternative is selected to procure them. It includes the

study of manufacturing process technical arrangements size of the plant, product mix, selection and

procurement of plant and machinery, plant layout, schedule of project implementation and location of

the project with reference to availability of various inputs required for production. Although the banker

may not have technical qualifications, he can examine the following basic points relating to technical


4/16

appraisal with his common sense, experience and discussion with promoters and their technical

personnel.

FINANCIAL ANALYSIS:

Financial analysis seeks to ascertain whether the proposed project will be financially viable in the senseof being able to meet the burden of servicing debt and whether the proposed project will satisfy the

return expectations of those who provide the capital.

ECONOMIC ANALYSIS:

Economic analysis, also referred to as social cost benefit analysis, is concerned with judging a project

from the larger social point of view. In such an evaluation the focus is on the social costs and benefits of

a project which may often be different from its monetary costs and benefits.

ECOLOGICAL ANALYSIS:

Ecological analysis should begin particularly for major projects which have significant ecological

implications like power plants and irrigation schemes, and environmental polluting industries like bulk

drugs, chemicals and leather processing.


5/16

About the Company

Coca-Cola is a carbonatedsoft drinksold in the stores, restaurants, and vending machines of more than

200 countries. It is produced by The Coca-Cola Company ofAtlanta, Georgia, and is often referred to

simply as Coke (a registered trademark of The Coca-Cola Company in the United States since March

27, 1944). Originally intended as a patent medicine when it was invented in the late 19th century

by John Pemberton, Coca-Cola was bought out by businessman Asa Griggs Candler, whose marketing

tactics led Coke to its dominance of the world soft-drink market throughout the 20th century.

The company produces concentrate, which is then sold to licensed Coca-Cola bottlers throughout the

world. The bottlers, who hold territorially exclusive contracts with the company, produce finished

product in cans and bottles from the concentrate in combination with filtered water and sweeteners. The

bottlers then sell, distribute and merchandise Coca-Cola to retail stores and vending machines. Suchbottlers include Coca-Cola Enterprises, which is the largest single Coca-Cola bottler in North America

and Western Europe. The Coca-Cola Company also sells concentrate forsoda fountains to major

restaurants and food service distributors.

The Coca-Cola Company has, on occasion, introduced other cola drinks under the Coke brand name.

The most common of these is Diet Coke, with others including Caffeine-Free Coca-Cola, Diet Coke

Caffeine-Free, Coca-Cola Cherry,Coca-Cola Zero, Coca-Cola Vanilla, and special editions with lemon,

lime or coffee.

In response to consumer insistence on a more natural product, the company is in the process of phasing

out E211, orsodium benzoate, the controversial additive used in Diet Coke and linked to DNA damage

in yeast cells and hyperactivity in children. The company has stated that it plans to remove E211 from

its other products, including Sprite and Oasis, as soon as a satisfactory alternative is found.

The famous Coca-Cola logo was created by John Pemberton's bookkeeper, Frank Mason Robinson, in

1885. Robinson came up with the name and chose the logo's distinctive cursive script.

The typeface used, known as Spencerian script, was developed in the mid 19th century and was the

dominant form of formal handwriting in the United States during that period.

Robinson also played a significant role in early Coca-Cola advertising. His promotional suggestions to

Pemberton included giving away thousands of free drink coupons and plastering the city of Atlanta with

publicity banners and streetcarsigns.
http://en.wikipedia.org/wiki/Carbonationhttp://en.wikipedia.org/wiki/Soft_drinkhttp://en.wikipedia.org/wiki/Vending_machinehttp://en.wikipedia.org/wiki/The_Coca-Cola_Companyhttp://en.wikipedia.org/wiki/Atlanta,_Georgiahttp://en.wikipedia.org/wiki/Patent_medicinehttp://en.wikipedia.org/wiki/John_Pembertonhttp://en.wikipedia.org/wiki/Asa_Griggs_Candlerhttp://en.wikipedia.org/wiki/Concentratehttp://en.wikipedia.org/wiki/Coca-Cola_Enterpriseshttp://en.wikipedia.org/wiki/Soda_fountainhttp://en.wikipedia.org/wiki/Food_servicehttp://en.wikipedia.org/wiki/Diet_Cokehttp://en.wikipedia.org/wiki/Diet_Coke_Caffeine-Freehttp://en.wikipedia.org/wiki/Diet_Coke_Caffeine-Freehttp://en.wikipedia.org/wiki/Coca-Cola_Cherryhttp://en.wikipedia.org/wiki/Coca-Cola_Zerohttp://en.wikipedia.org/wiki/Coca-Cola_Vanillahttp://en.wikipedia.org/wiki/Sodium_benzoatehttp://en.wikipedia.org/wiki/Sprite_(soft_drink)http://en.wikipedia.org/wiki/Oasis_(drink)http://en.wikipedia.org/wiki/Logohttp://en.wikipedia.org/wiki/Frank_Mason_Robinsonhttp://en.wikipedia.org/wiki/Typefacehttp://en.wikipedia.org/wiki/Spencerian_Scripthttp://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Atlantahttp://en.wikipedia.org/wiki/Streetcarhttp://en.wikipedia.org/wiki/Carbonationhttp://en.wikipedia.org/wiki/Soft_drinkhttp://en.wikipedia.org/wiki/Vending_machinehttp://en.wikipedia.org/wiki/The_Coca-Cola_Companyhttp://en.wikipedia.org/wiki/Atlanta,_Georgiahttp://en.wikipedia.org/wiki/Patent_medicinehttp://en.wikipedia.org/wiki/John_Pembertonhttp://en.wikipedia.org/wiki/Asa_Griggs_Candlerhttp://en.wikipedia.org/wiki/Concentratehttp://en.wikipedia.org/wiki/Coca-Cola_Enterpriseshttp://en.wikipedia.org/wiki/Soda_fountainhttp://en.wikipedia.org/wiki/Food_servicehttp://en.wikipedia.org/wiki/Diet_Cokehttp://en.wikipedia.org/wiki/Diet_Coke_Caffeine-Freehttp://en.wikipedia.org/wiki/Diet_Coke_Caffeine-Freehttp://en.wikipedia.org/wiki/Coca-Cola_Cherryhttp://en.wikipedia.org/wiki/Coca-Cola_Zerohttp://en.wikipedia.org/wiki/Coca-Cola_Vanillahttp://en.wikipedia.org/wiki/Sodium_benzoatehttp://en.wikipedia.org/wiki/Sprite_(soft_drink)http://en.wikipedia.org/wiki/Oasis_(drink)http://en.wikipedia.org/wiki/Logohttp://en.wikipedia.org/wiki/Frank_Mason_Robinsonhttp://en.wikipedia.org/wiki/Typefacehttp://en.wikipedia.org/wiki/Spencerian_Scripthttp://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Atlantahttp://en.wikipedia.org/wiki/Streetcar


6/16

Pepsi is usually second to Coke in sales, but outsells Coca-Cola in some markets. Around the world,

some local brands compete with Coke. In South and Central America Kola Real, known as Big Cola in

Mexico, is a fast-growing competitor to Coca-Cola. On the French island ofCorsica, Corsica Cola,

made by brewers of the local Pietra beer, is a growing competitor to Coca-Cola. In the French region

ofBrittany, Breizh Cola is available. In Peru, Inca Kolaoutsells Coca-Cola, which led The Coca-Cola

Company to purchase the brand in 1999. In Sweden, Julmust outsells Coca-Cola during

the Christmasseason. In Scotland, the locally produced Irn-Bru was more popular than Coca-Cola until

2005, when Coca-Cola and Diet Coke began to outpace its sales. In India, Coca-Cola ranked third

behind the leader, Pepsi-Cola, and local drinkThums Up. The Coca-Cola Company purchased Thums

Up in 1993. As of 2004, Coca-Cola held a 60.9% market-share in India. Tropicola, a domestic drink, is

served in Cuba instead of Coca-Cola, due to a United States embargo. French brand Mecca Cola and

British brand Qibla Cola, popular in the Middle East, are competitors to Coca-Cola. In Turkey, Cola

Turka is a major competitor to Coca-Cola. In Iran and many countries of Middle East, Zam Zam

Cola and Parsi Cola are major competitors to Coca-Cola. In some parts of China Future cola is a

competitor. In Slovenia, the locally produced Cockta is a major competitor to Coca-Cola, as is the

inexpensive Mercator Cola, which is sold only in the country's biggest supermarket chain, Mercator.

In Israel, RC Cola is an inexpensive competitor. Classiko Cola, made by Tiko Group, the largest

manufacturing company in Madagascar, is a serious competitor to Coca-Cola in many

regions. Laranjada is the top-selling soft drink on the Portuguese island ofMadeira. Coca-Cola has

stated that Pepsi was not its main rival in the UK, but ratherRobinsonsdrinks.
http://en.wikipedia.org/wiki/Pepsihttp://en.wikipedia.org/wiki/South_Americahttp://en.wikipedia.org/wiki/Kola_Realhttp://en.wikipedia.org/wiki/Big_Colahttp://en.wikipedia.org/wiki/Corsicahttp://en.wikipedia.org/wiki/Corsica_Colahttp://en.wikipedia.org/wiki/Brittanyhttp://en.wikipedia.org/wiki/Breizh_Colahttp://en.wikipedia.org/wiki/Inca_Kolahttp://en.wikipedia.org/wiki/The_Coca-Cola_Companyhttp://en.wikipedia.org/wiki/The_Coca-Cola_Companyhttp://en.wikipedia.org/wiki/Julmusthttp://en.wikipedia.org/wiki/Christmashttp://en.wikipedia.org/wiki/Irn-Bruhttp://en.wikipedia.org/wiki/Thums_Uphttp://en.wikipedia.org/wiki/The_Coca-Cola_Companyhttp://en.wikipedia.org/wiki/Thums_Uphttp://en.wikipedia.org/wiki/Thums_Uphttp://en.wikipedia.org/wiki/Cubahttp://en.wikipedia.org/wiki/Mecca_Colahttp://en.wikipedia.org/wiki/Qibla_Colahttp://en.wikipedia.org/wiki/Turkeyhttp://en.wikipedia.org/wiki/Cola_Turkahttp://en.wikipedia.org/wiki/Cola_Turkahttp://en.wikipedia.org/wiki/Iranhttp://en.wikipedia.org/wiki/Zam_Zam_Colahttp://en.wikipedia.org/wiki/Zam_Zam_Colahttp://en.wikipedia.org/wiki/Parsi_Colahttp://en.wikipedia.org/wiki/China_Colahttp://en.wikipedia.org/wiki/Sloveniahttp://en.wikipedia.org/wiki/Cocktahttp://en.wikipedia.org/wiki/Supermarkethttp://en.wikipedia.org/wiki/Mercator_(retail)http://en.wikipedia.org/wiki/Israelhttp://en.wikipedia.org/wiki/Madagascarhttp://en.wikipedia.org/wiki/Laranjadahttp://en.wikipedia.org/wiki/Madeirahttp://en.wikipedia.org/wiki/Robinsons_(drink)http://en.wikipedia.org/wiki/Pepsihttp://en.wikipedia.org/wiki/South_Americahttp://en.wikipedia.org/wiki/Kola_Realhttp://en.wikipedia.org/wiki/Big_Colahttp://en.wikipedia.org/wiki/Corsicahttp://en.wikipedia.org/wiki/Corsica_Colahttp://en.wikipedia.org/wiki/Brittanyhttp://en.wikipedia.org/wiki/Breizh_Colahttp://en.wikipedia.org/wiki/Inca_Kolahttp://en.wikipedia.org/wiki/The_Coca-Cola_Companyhttp://en.wikipedia.org/wiki/The_Coca-Cola_Companyhttp://en.wikipedia.org/wiki/Julmusthttp://en.wikipedia.org/wiki/Christmashttp://en.wikipedia.org/wiki/Irn-Bruhttp://en.wikipedia.org/wiki/Thums_Uphttp://en.wikipedia.org/wiki/The_Coca-Cola_Companyhttp://en.wikipedia.org/wiki/Thums_Uphttp://en.wikipedia.org/wiki/Thums_Uphttp://en.wikipedia.org/wiki/Cubahttp://en.wikipedia.org/wiki/Mecca_Colahttp://en.wikipedia.org/wiki/Qibla_Colahttp://en.wikipedia.org/wiki/Turkeyhttp://en.wikipedia.org/wiki/Cola_Turkahttp://en.wikipedia.org/wiki/Cola_Turkahttp://en.wikipedia.org/wiki/Iranhttp://en.wikipedia.org/wiki/Zam_Zam_Colahttp://en.wikipedia.org/wiki/Zam_Zam_Colahttp://en.wikipedia.org/wiki/Parsi_Colahttp://en.wikipedia.org/wiki/China_Colahttp://en.wikipedia.org/wiki/Sloveniahttp://en.wikipedia.org/wiki/Cocktahttp://en.wikipedia.org/wiki/Supermarkethttp://en.wikipedia.org/wiki/Mercator_(retail)http://en.wikipedia.org/wiki/Israelhttp://en.wikipedia.org/wiki/Madagascarhttp://en.wikipedia.org/wiki/Laranjadahttp://en.wikipedia.org/wiki/Madeirahttp://en.wikipedia.org/wiki/Robinsons_(drink)


7/16

Project Environment Beverage Industry

Soft drinks recorded robust double digit off-trade value growth in 2009, which was higher than that

witnessed in 2008. Bottled water and fruit/vegetable juice continued to grow strongly as more

consumers turned to these products in the search of healthier options. Carbonates also witnessed goodsales growth as the long summer helped to fuel sales. Energy drinks has witnessed a slowdown in sales

growth as it is a premium priced product type and therefore not considered a necessity. Importantly,

more consumers refrained from spending on non-essential items in the wake of the economic downturn.

Manufacturers continued to focus on health and wellness products in 2009, introducing green tea

versions of powder concentrates and RTD tea. There were also a number of launches in terms of new

products and flavors in fruit/vegetable juice. The only new product launch in carbonates was Grappo

Fizz by Parle Agro Pvt Ltd. Non-cola carbonates performed very well as these products are perceived byconsumers to be less of a health threat than cola carbonates. Even in niche categories like energy drinks,

sugar-free versions were introduced as manufacturers try to attract health conscious and diabetic

consumers.

Coca-Cola India Pvt Ltd continued to lead soft drinks in 2009, followed by PepsiCo India Holdings Pvt

Ltd in off-trade value terms. The launch of Nimbooz by 7-Up (PepsiCo India) helped the company

retain its leading position in the terms of off-trade value sales. Coca-Cola India and PepsiCo India

continued to invest in soft drinks in India. However, domestic players such as Parle Agro, Parle Bisleri

Ltd and Dabur India Ltd continued to provide tough competition to the leading multinationals. One

competitive edge that domestic players hold is that unlike Coca-Cola India and PepsiCo India the bulk

of their business does not come from carbonates, but instead from fruit/vegetable juice and bottled

water, which are recording much more dynamic volume and value growth. Thus, while the leading

multinationals retained their leading positions in off-trade value terms, they continued to record slight

off-trade value share reductions in 2009, while these leading domestic players grew their shares.

The growth in supermarkets/hypermarkets boosted the soft drinks industry over much of the review

period. However, due to the economic downturn, the off-trade volume share of

supermarkets/hypermarkets decreased in 2009. This in turn affected some of the more niche and

premium product types like energy drinks and reconstituted 100% juice which enjoyed high visibility

through this distribution channels. However, this trend is not expected to continue as the economy

recovers since consumers will revert to their previous shopping patterns.


8/16

Soft drinks are expected to witness a healthy double-digit total volume CAGR growth over the forecast

period. As consumer awareness and understanding of the variety of soft drinks increases and as

manufacturers continue to be innovative, soft drinks is expected to perform well. Products on the health

and wellness platform and niche categories can expect to see good sales growth in the forecast period.


9/16

Market Analysis, Ecological analysis & Technical

Feasibility

Market Analysis

Indias one billion people, growing middle class, and low per capita consumption of soft drinks made it

a highly contested prize in the global CSD market in the early twenty-first century. Ten percent of the

countrys population lived in urban areas or large cities and drank ten bottles of soda per year while the

vast remainder lived in rural areas, villages, and small towns where annual per capita consumption was

less than four bottles. Coke and Pepsi dominated the market and together had a consolidated market

share above 95%. While soft drinks were once considered products only for the affluent, by 2007 91%

of sales were made to the lower, middle and upper middle classes. Soft drink sales in India grew 76%

between 2003 and 2006, from 5,670 million bottles to over 10,000 million and were expected to grow at

least 10% per year through 2012. In spite of this growth, annual per capita consumption was only 6

bottles versus 17 in Pakistan, 73 in Thailand, 173 in the Philippines and 800 in the United States29.

With its large population and low consumption, the rural market represented a significant opportunity

for penetration and a critical battleground for market dominance. In 2001, Coca-Cola recognized that to

compete with traditional refreshments including lemon water, green coconut water, fruit juices, tea, and

lassi, competitive pricing was essential. In response, Coke launched a smaller bottle priced at almost

50% of the traditional package.

Investors have increased their appreciation of KO's growth potential substantially since the end of 1990,

resulting in a 90% stock price increase. The stock's Price-Earnings multiple has doubled in the last four

years. The Book Value multiple nearly tripled in the same period. We believe that this large expansion

in valuation is only fair given the string of dramatic world events that have favorably affected the

Company's future.

In 1997 Coca-Cola could quite possibly earn over 43.25 per share. Given KO's past performance, recent

earnings acceleration and its growth potential beyond 1997, today's stock market valuation of

approximately 11.5 times our 1998 earnings estimate seems quite reasonable. In four years KO's EPS

could be growing at 40.60 per year, which would represent over 40% of 1992 EPS of 101.43. This

growth rate exceeds KO's 1987 to 1992 performance, which led to a quadrupling of the stock price. In

1992 EPS grew by 55.22, which equaled 39% of 1987's EPS of 58.57. These figures demonstrate the


10/16

power of KO's compounded annual growth, which was 15.9% for the most recent five year period, up

from 11.4% in the previous five year period. In conclusion, we believe that KO's shares have the

potential to provide investors with a compounded annual return in excess of 15% per year over the next

five years.

Ecological analysis

As one of the largest and most global companies in the world, Coca-Cola took seriously its ability and

responsibility to positively affect the communities in which it operated. The companys mission

statement, called the Coca-Cola Promise, stated: The Coca-Cola Company exists to benefit and refresh

everyone who is touched by our business. The Company has made efforts towards good citizenship in

the areas of community, by improving the quality of life in the communities in which they operate, and

the environment, by addressing water, climate change and waste management initiatives. Their activities

also included The Coca-Cola Africa Foundation created to combat the spread of HIV/AIDS through

partnership with governments, UNAIDS, and other NGOs, and The Coca-Cola Foundation, focused on

higher education as a vehicle to build strong communities and enhance individual opportunity.

Coca-Colas footprint in India was significant as well. The Company employed 7000 citizens and

believed that for every direct job, 30-40 more were created in the supply chain. Like its parent, Coke

Indias Corporate Social Responsibility (CSR) initiatives were both community and environment-

focused. Priorities included education, where primary education projects had been set up to benefit

children in slums and villages, water conservation, where the Company supported community-based

rainwater harvesting projects to restore water levels and promote conservation education, and health,

where Coke India partnered with NGOs and governments to provide medical access to poor people

through regular health camps. In addition to outreach efforts, the company committed itself to

environmental responsibility through its own business operations in India including:

Environmental due diligence before acquiring land or starting projects

Environmental impact assessment before commencing operations

Ground water and environmental surveys before selecting sites

Compliance with all regulatory environmental requirements

Ban on purchasing CFC-containing refrigeration equipment

Waste water treatment facilities with trained personnel at all company-owned bottling operations

Energy conservation programs

50% water savings in last seven years of operations


11/16

Technical Analysis

Coca-Cola has succeeded in spite of an extremely price-sensitive consumer with entrenched beverage

consumption habits tea, nimbu-paani (lemonade) and a fragmented and geographically dispersed retail

market, and a high tax environment.

Bovis Lend Lease contributed to the Design, Construction and Management of 13 Coca-Cola Bottling

Facilities across India. The contract comprised the Design, Management and Construction of the

building infrastructure, mechanical and electrical services for the plants.

The quality standards adhered in these projects are a benchmark in India. Though severe problems in

terms of terrain, local conditions & authority clearances were encountered, the smooth execution of the

Project and Handover of the project was not affected. All projects were on schedule and were highly

appreciated by the client.

The Wada Bottling facility is the largest bottling unit in Asia with 5 lines.

The facility at Vijayawada is the fastest project in terms of completion and handover.

The effluent treatment systems at these plants are State of the Art.

The bottling facility at Jaipur was completed in a world record time of 180 days commissioning and

successful production. This helped the client earn revenue of 60 crores from Sales tax benefits.

Coca-Cola is a leading player in the Indian beverage market with a 60 per cent share in the carbonated

soft drinks segment, 36 per cent share in fruit drinks segment and 33 per cent share in the packaged

water segment. Coca-Cola sold 7 billion packs of its brands to more than 230 million consumers across

4,700 towns and 175,000 villages. The company has doubled its volumes and trebled its profits between

2001 and 2004. Coca-Cola continues to re-affirm its commitment to India through active Citizenship

Efforts. All its plants in India partner with local NGOs to alleviate local community issues in numerous

small ways. It boasts of impeccable credentials on quality.


12/16

SWOTANALYSIS

Strengths:

1. Coca Cola is an extremely recognizable company. Popularity is one of its superior strengths that

is virtually incomparable. Coca Cola is known very well worldwide. It's branding is obvious and

easily recognized.

2. Without a doubt, no beverage company compares to Coca Cola's social popularity status. Some

people buy coke, not only because of its taste, but because it is widely accepted and they feel like

they are part of something so big and unifying.

3. Coca Cola deals with massive amounts of money all year. Like all businesses, they have had

their ups and downs financially, but they have done well in this compartment and will continue

to do well and improve.4. The money they are earning is substantially better than most beverage companies, and with that

money, they put back into their own company so that they can improve. Another strength that is

very important to Coca Cola is customer loyalty.

5. The 80/20 rule comes into effect in this situation. Eighty percent of their profit comes from 20%

of their loyal customers. Many people/families are extremely loyal to Coca Cola. It would not be

rare to constantly find bottles and cases of a product such as coke in a house.

6. Knowledge Regarding Adversary

7. Accomplished Staff & Benefactor

8. Added Bazaar Allotment in Textile Sector

9. Humans Assurance on Above of our Artifact and Cast

10.Merchandising and All-around Score Rating (Gives Backbone to brainwash bazaar about

convalescent sales)

11.Coca-Cola has been a circuitous allotment of apple ability for a actual continued time.

12.The product's angel is loaded with over-romanticizing, and this is an angel abounding humans

accept taken acutely to heart. The Coca-Cola angel is displayed on T-shirts, hats, and collectible

memorabilia.

13.This acutely apparent branding is one of Coca-Cola's greatest strengths. "Enjoyed added than

685 actor times a day about the apple Coca-Cola stands as a simple, yet able attribute of above

and enjoyment" (Allen, 1995).


13/16

14.Additionally, Coca-Cola's bottling arrangement is one of their greatest strengths. It allows them

to conduct business on a all-around calibration while at the aforementioned time advance a

bounded approach. The bottling companies are locally endemic and operated by absolute

business humans who are accustomed to advertise articles of the Coca-Cola Company. Because

Coke does not accept absolute affairs of its bottling network, its basic antecedent of acquirement

is the auction of apply to its bottlers.

15.Lower amount of assembly

16.Demonstrably above annual

17.Presented a actual circuitous artefact

18.Extensive advertising, acceptable promotions or business programs

Weakness

1. Many drinks that they produce are extremely popular such as Coke and Sprite but this company

has approximately 400 different drink types. Most are unknown and rarely seen for available

purchase.

2. It has been greatly publicized is the health issues that surround some of their products. It is

known that a popular product like coke is not very beneficial to your body and your health.

3. Although calm business as able-bodied as abounding all-embracing markets are advancing

(volumes in Latin America were up 12%), Coca-Cola has afresh appear some "declines in

assemblage case volumes in Indonesia and Thailand due to bargain customer purchasing power."

4. According to an commodity in Fortune magazine, "In Japan, assemblage case sales fell 3% in the

additional division [of 1998]...scary because while Japan generates about 5% of common

volume, it contributes three times as abundant to profits.

5. Latin America, Southeast Asia, and Japan annual for about 35% of Coke's aggregate and none of

these markets are assuming to expectation.

6. Coca-Cola on the added ancillary has furnishings on the teeth which is an affair for bloom care.

It as well has got amoroso by which connected bubbler of Coca-Cola may could could could

cause bloom problems. Being absorbed to Coca-Cola as well is a bloom problem, because

bubbler of Coca-Cola circadian has an aftereffect on your physique afterward few years.

7. Minor Signage in the Breadth

8. Ample Number of PCI Abandoned Stock.

9. Abandoned Appropriation As we cannot lift empties on our adversary lifts)


14/16

10. Word of mouth is probably a strength and weakness of every company. While many people have

good things to say, there are many individuals who are against Coca Cola as a company, and the

products in which they produce.

Opportunities

1. Coca Cola also has the opportunity to advertise its less popular products. With a large income

it has the available money to put some of these other beverages on the market. This could be

very beneficial to the company if they could start selling these other products to the same

extent that they do with their main products.

2. It has seen being put to use before is the ability for Coca Cola to buy out their competition.

This opportunity rarely presents itself in the world of business. However, with Coca Colas

power and success, such a task is not impossible.

3. Coca Cola has bought out a countless number of drink brands. An easy way to turn their

profit into your profit is too buy out their company. Even though this may cost a vast amount

of money initially, in the long run, if all goes to plan, it results in a large profit.

4. The company will no longer need to worry about this product being part of the competition.

Brand recognition is the significant factor affecting Cokes competitive position. Coca Cola is

known well throughout 90% of the world population today.

5. Now Coca Cola wants to get there brand name known even better and possibly get closer and

closer to 100%. It is an opportunity that most companies will ever dream of, and would be a

supreme accomplishment. Coca Cola has an opportunity to continue to widen the gap

between them and their competitors.

6. Cast acceptance is the cogent agency affecting Coke's aggressive position.

7. Coca-Cola's cast name is accepted able-bodied throughout 94% of the apple today.

8. The primary affair over the accomplished few years has been to get this name cast to be even

bigger known. Packaging changes accept as well afflicted sales and industry positioning, but

in general, the accessible has tended not to be afflicted by new products.

9. Coca-Cola's bottling arrangement as well allows the aggregation to yield advantage of

absolute advance opportunities about the world. This action gives Coke the befalling to

annual a ample geographic, assorted area.

Threats


15/16

1. Even though Coca Cola controls more than 50% of the entire beverage market, the

changing health-consciousness attitude of the market could have a serious effect on Coca

Cola.

2. People are constantly trying to change their eating and drinking habits. This could

directly affect the sale of Coca Colas products.

3. There are always issues with a company of such supreme wealth and popularity.

Somebody is always trying to find fault with the best and take them down. Coca Cola has to

be careful with lawsuits.

4. Some people may try to exploit the unhealthy side of Coca Colas products and could

threaten the status and success of sales.

5. Coca Cola needs to be careful that Pepsi does not grow to be a more successful drink.

Other product such as juices, coffee, and milk are threats. These other beverage options could

take precedent in some peoples minds over Coca Colas beverages and this could threaten

the potential success it presents again.

6. Currently, the blackmail of new applicable competitors in the carbonated bendable

alcohol industry is not actual substantial.

7. The blackmail of substitutes, however, is a actual absolute threat. The bendable alcohol

industry is actual strong, but consumers are not necessarily affiliated to it. Possible

substitutes that continuously put burden on both Pepsi and Coke cover tea, coffee, juices,

milk, and hot chocolate.

8. Even admitting Coca-Cola and Pepsi ascendancy about 40% of the absolute cooler

market, the alteration health-consciousness of the bazaar could accept a austere affect.

9. Of course, both Coke and Pepsi accept already adapted into these markets, acceptance

them to accept added cogent bazaar shares and account any losses incurred due to

fluctuations in the market.

10. Customer affairs ability aswell represents a key blackmail in the industry.

11. The animosity amid Pepsi and Coke has aftermath a actual apathetic affective industry in

which administration accept to continuously acknowledge to the alteration attitudes and

demands of their consumers or face accident bazaar allotment to the competition.

12. Furthermore, consumers can calmly about-face to added beverages with little amount or

consequence.


16/16

Conclusion

The whole research shows that one company dominating in the soft drinks market is coca-cola. Though

there is neck to- neck competition in between Coke and other companies. Coke has been adopting

aggressive marketing strategies to attract customer. The threats posed by this stringent competition of

coke & its competitors; Coke has adopted some excellent marketing strategies like

Acquiring bottling plant as many as possible

Bottling holds the key to the distribution

Sponsoring major and local events.

Making successful product launches.

Establishing prominent brands of long term stability

Good relation with customers.

Constant touch with the market.

By conducting project appraisal, Coke can further increase its market share. In general any company to

be the market leaders, it has to analyze the market size, growth, project potential, buyer behaviour, life

style, purchasing behaviour & the taste of the consumers. The aggressive companies will utilize the full

market opportunities.

Thus after analyzing the SWOT of COKE and its project, it is believe that this project is viable and can

run for a long perios.

Documents

Coke Wastet