Table of ContentsIntroduction:...............................................................................................................................................2

Company overview:.....................................................................................................................................3

HISTORY OF COCA COLA..........................................................................................................................3

TODAY COCA COLA AS COMPANY:..............................................................................................................5

VISION STATEMENT.................................................................................................................................5

MISSION STATEMENT..................................................................................................................................5

PESTAL ANALYSIS:........................................................................................................................................6

Industry Analysis (Coca Cola):......................................................................................................................9

EFE Matrix of Coca-Cola Company.............................................................................................................15

Competitive Profile Matrix of Coca-Cola...................................................................................................17

IFE Matrix of Coca-Cola Company:............................................................................................................19

SWOT Analysis of Coca-Cola Company:.....................................................................................................21

Strengths:..............................................................................................................................................21

Weaknesses:..........................................................................................................................................22

Opportunities:.......................................................................................................................................22

Threats:.................................................................................................................................................23

Recommendations:....................................................................................................................................24

Introduction:Founded in 1886, the Coca-Cola Company is the world’s leading manufacturer, marketer, and

distributor of nonalcoholic beverage concentrates and syrups. The company’s corporate

headquarters are in Atlanta, with local operations in over 200 countries around the world.

Although Coca-Cola was first created in the United States, it quickly became popular wherever

it went. Our first international bottling plants opened in 1906 in Canada, Cuba and Panama,

soon followed by many more. Today, Coca-Cola has a portfolio of more than 3,000 beverages.

Coca-Cola has 92,400 employees worldwide. More than 70 percent of our income comes from

outside the U.S., but the real reason we are a truly global company is that our products meet

the varied taste preferences of consumers everywhere.

The scope of the project is to discuss the marketing strategies adopted and applied by ‘Coca

Cola’, Pakistan. From the last month or so our group is in the process of a continuous research

on marketing functions and strategies adopted by ‘Coca Cola’. These marketing functions

mainly include the marketing mix i-e, Product Strategy, Pricing Strategy, Pricing Tools and

Strategies and Placement and Distribution Strategies as well as other market strategies.

Moreover the project also discusses the analysis of competition, market growth and trend,

opportunity analysis and strategies for creating competitive advantage adopted by ‘Coca Cola’.

We will like to add that the project will provide the readers and listeners very high profile

information about the marketing strategies as a whole and also about the Coca Cola Company.

In the end we hope that the project will result very profitable for the readers and Coca Cola.

Your feedback in the end either critical or substantial will be very highly appreciated.

Company overview:

HISTORY OF COCA COLA

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. 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.

Dr. Pemberton’s partner and book-keeper, Frank M. Robinson, suggested the name and penned

“Coca-Cola” in the unique flowing script that is famous worldwide even today. He suggested

that “the two Cs would look well in advertising.” The first newspaper ad for Coca-Cola soon

appeared in The Atlanta Journal, inviting thirsty citizens to try “the new and popular soda

fountain drink.” Hand-painted oil cloth signs reading “Coca-Cola” appeared on store awnings,

with the suggestions “Drink” added to inform passersby that the new beverage was for soda

fountain refreshment.

By the year 1886, sales of Coca-Cola averaged nine drinks per day. Pemberton grossed $50 and

spent $73.96 on advertising. Dr. Pemberton never realized the potential of the beverage he

created. He gradually sold portions of his business to various partners and, just prior to his

death in 1888, sold his remaining interest in Coca-Cola to Asa G. Candler, an entrepreneur

from Atlanta. By the year 1891, Mr. Candler proceeded to buy additional rights and acquire

complete ownership and control of the Coca-Cola business. Within four years, his

merchandising flair had helped expand consumption of Coca-Cola to every state and territory

after which he liquidated his pharmaceutical business and focused his full attention on the soft

drink. With his brother, John S. Candler, John Pemberton’s former partner Frank Robinson and

two other associates, Mr. Candler formed a Georgia corporation named the Coca-Cola

Company. The trademark “Coca-Cola,” used in the marketplace since 1886, was registered in

the United States Patent Office on January 31, 1893.

The business continued to grow, and in 1894, the first syrup manufacturing plant outside

Atlanta was opened in Dallas, Texas. Others were opened in Chicago, Illinois, and Los Angeles,

California, the following year. In 1895, three years after The Coca-Cola Company’s

incorporation, Mr. Asa G. Candler announced in his annual report to share owners that “Coca-

Cola is now drunk in every state and territory in the United States.”

As demand for Coca-Cola increased, the Company quickly outgrew its facilities. A new building

erected in 1898 was the first headquarters building devoted exclusively to the production of

syrup and the management of the business. In the year 1919, the Coca-Cola Company was sold

to a group of investors for $25 million. Robert W. Woodruff became the President of the

Company in the year 1923 and his more than sixty years of leadership took the business to

unsurpassed heights of commercial success, making Coca-Cola one of the most recognized and

valued brands around the world.

TODAY COCA COLA AS COMPANY:Today CCBPL is operated directly under the supervision of the Coca-Cola International based in

Atlanta Georgia State___ USA .It owns 8 plants all around in Pakistan. Coca Cola Company

offers the brand range as Coca Cola, Diet Coke, Fanta, Sprite and Kinley water in Pakistan.

VISION STATEMENTOur 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.

Productivity: Be a highly effective, lean and fast-moving organization.

MISSION STATEMENTMission statement is a statement of organization’s purposes that what it wants to accomplish.

In order to achieve mission of increasing market share and maintaining good relations with our

customers all over the world, we wish to create value for all the constraints we serve, including

our consumers, our bottlers, and our communities. 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.

Everything we do is inspired by our enduring Mission:

To Refresh the World...in body, mind, and spirit.

To Inspire Moments of Optimism...through our brands and our actions.

To Create Value and Make a Difference...everywhere we engage.

PESTAL ANALYSIS:

POLITICAL FACTOR:

The political environment of Pakistan affects the Coca-Cola beverages and Coca-Cola Export

Corporation, to some extent. For instance, the political instability in Pakistan causes trade and

import policies to change rapidly as the government changes which causes many problems in

the import of raw materials. Trade barriers such as tariffs and duties on the import of syrup

(concentrate) from USA increases the operational cost. A relaxation has been given by the

current government. So the situation for the beverage industry is getting better day by day for

the last couple of years. Also the policies have been more or less constant and also the

emaciation of free trade zones by the government will help the Coca-Cola to flourish more

effectively in Pakistan.

ECONOMIC FACTOR:

The economic condition of Pakistan has not been stable for a long time but The recent

economic indicators suggest that the economy is growing and macroeconomic issues are

getting sold but at the same time there has not any marked increase in the consumer buying

power (inflation). When the recession occurs the price of bottles are dropped down to increase

the sales and to achieve the targets of the company. So overall economy of Pakistan directly

affects the cost and price of the Coca-Cola Company.

On the contrary in the all parts of the country coke is viewed as the partner in the major events

like Basant and promoter of music thereby making a place in the hearts of young generation of

the society.

SOCIAL FACTOR:

In 2000, when eastern Pakistan suffered its worst droughts, The Coca-Cola system initiated a

famine-relief program to help victims and was the first private-sector company to assist. The

Coca-Cola system in Pakistan initiated a voluntary Hajj program that allows one employee from

each plant, selected through a draw, to be sent on the Holy Pilgrimage to Mecca at the

Company’s expense.

TECNOLOGICAL FACTOR:

The making of Coke, Fanta, Diet coke and sprite involves "mixing and blending, filling and

capping ". For this process, concentrate or syrup is imported from USA and is then mixed in the

local plants .Machinery for the local plants was also imported but now the coca-cola company

follows Local content law as most of the spare parts are locally made. The system is automated

and equipment is fully operational and up-to-dated. In technology Coca-cola company is far

ahead than the several other local beverage brands of Pakistan. It is a Highly Technical 10 Steps

Process. Which are all done in the local plants using local content law.

LEGAL FACTOR:

Changes in laws and regulations, including changes in accounting standards, taxation

requirements, (including tax rate changes, new tax laws and revised tax law interpretations)

and environmental laws in domestic or foreign jurisdictions.

ENVIRONMENTAL FACTOR:

We have always sought to be sensitive to the environment, we must use our significant

resources and capabilities to provide active leadership on environmental issues, particularly

those relevant to our business. We want the world we share to be clean and beautiful. We are

always innovating to bring you different delicious beverages. This same spirit of innovation

comes alive in our environment programs. We’re committed to preserving our environment,

from use of more than $ 2 billion (U.S) a year in recycling content and suppliers, and

environment

Management initiatives, are down to very local neighborhood collection and beautification

efforts. Here’s a sample of what we’re doing in different communities around the world

regarding the conservation of water and natural resources, climate changes, waste

environment education.

The Coca-Cola system in Pakistan operates through eight bottlers. Four of which are majority-

owned by Coca-Cola Beverages Pakistan Limited (CCBPL). Demographic environment.

DEMOGRAPHIC FACTOR:

Demographic environment of any country is having a great influence on the purchasing pattern

of consumers. It involves age, gender, race, occupation, location and density of population. It

varies from country to country. Coke in Pakistan is focusing on the demographic variables of its

customers in order to create a positive image in their minds and position their brand also. For

example coke is having its focus on the mobile generation who are born in 1980’s.

GLOBAL ENVIRNOMENT FACTOR:

A large part or our relationship with the world around us is our relationship with the physical

world. While we have always sought to be sensitive to the environment, we must use our

significant resources and capabilities to provide active leadership on environmental issues,

particularly those relevant to our business. We want the world we share to be clean and

beautiful. We are always innovating to bring you different delicious beverages. This same spirit

of innovation comes alive in our environment programs. We’re committed to preserving our

environment, from use of more than $ 2 billion (U.S) a year in recycling content and suppliers,

and environment.

Industry Analysis (Coca Cola):

Five forces model is a framework for the industry analysis and development of business

strategy. Three (3) of Porter’s five (5) forces refers to rivalry from external/outside sources such

as micro environment, macro environment and rest are internal threats. It draws ahead

Industrial Organization economics to develop five forces that conclude the competitive

intensity and consequently attractiveness of a market place or industry. Attractiveness in this

framework refers to the generally overall industry profitability. An "unattractiveness" in

industry is one in which the mixture of these five forces proceed to constrain behind overall

profitability. An extremely unattractive industry would be one moving toward "pure

competition", in which existing profits for all companies are moving down to zero.

1. The threat of the entry of new competitors

• Advertising and Marketing

Soft drink industry needs huge amount of money to spend on advertisement and marketing. In

2000, Pepsi, Coke and their bottler’s invested approximately $2.58 billion. In 2000, the average

advertisement expenditure per point of market share was $8.3 million. This makes it

exceptionally hard for a new competitor to struggle with the current market and expand

visibility.

• Customer Loyalty/ Brand Image

Pepsi and Coke have been investing huge amount on advertisement and marketing throughout

their existence. This has resulted in higher brand equity and strong loyal customers’ base all

over the globe. Therefore, it becomes nearly unfeasible for a new comer to counterpart this

level in soft drink industry.

• Retail Distribution

This industry provides significant margins to retailers. For example, some retailers get 15-20%

while others enjoy 20-30% margins. These margins are reasonably enough for retailers to

entertain the existing players. This makes it very difficult for new players to persuade retailers

to carry their new products or substitute products for Coke and Pepsi.

• Fear of Retaliation

It is very difficult to enter into a market place where already well-established players are

present such as Coke and Pepsi in this industry. So these players will not allow any new entrants

to easily enter the market. They will give tough time to new entrants which could result into

price wars, new product line, etc in order to influences the new comers.

• Bottling Network

In this industry manufacturers have franchise contracts with their presented bottler’s that have

privileges in a definite geographic area in eternity such as both Pepsi and Coke have contracts

with their presented bottler’s. These contracts forbid bottler’s from taking on new competing

brands for similar products. Latest consolidation between the bottler’s and the backward

integration with Coke buying considerable numbers of bottling firms, it makes very difficult for

new player to contract with bottler’s agreeable to distribute their brands. The alternative is that

new entrances build their bottling plants, which will need intense capital and exertion. Because

in 2000 new bottling plant needs capital of $80 million.

2. Rivalry among the competitors

The industry is almost dominated by the Coke and Pepsi. This industry is well known as a

Duopoly with Coke and Pepsi as the companies competing. These both players have the

majority of the market share and rest of the players have very low market share. Otherwise;

competition is comparatively low to result any turmoil of industry structure. Coke and Pepsi

primarily are competing on advertising and differentiation rather than on pricing. This resulted

in higher profits and disallowed a decline in profits. Pricing war is nevertheless experienced in

their global expansion strategies.

• Composition of Competitor

Except the Coke and Pepsi other competitors are of unequal size especially in local markets.

Coke and Pepsi both players have the majority of the market share and rest of the players have

very low market share.

• Scope of Competition

Scope of competition in this industry is generally global; Coke and Pepsi are approximately

presents in 200 countries.

• Market Growth Rate

The soft drinks business will not see growth in near future, with the smoothie and bottled water

sectors mainly hit by a decline in 2008, and across all sectors volume declined by 1.1 percent.

• Fixed Storage Cost

This industry needs huge manufacturing plants and contracts with bottling network companies.

These contracts make sure that bottler’s must have standard manufacturing plant; these plants

need huge capital and exertion.

• Degree of differentiation

Marketing and Product differentiation have become more significant. Coke and Pepsi mainly

are competing on advertising and differentiation rather than on pricing. Coke has diverse

advertisement campaigns according to conditions. Coca-Cola is recognized as the best-known

brand name in the globe. More prominently, its consumers would not do without it, and have

established a loyalty.

• Strategic Stake

Coke’s core operation is the manufacturing and distribution both for itself and beneath

franchise, of non-alcoholic beverages and related products. Because of the strategic stake the

main brand of the Coke has been around for a lot of years.

3. The threat of substitute products

This industry is enriched with enormous statistics of substitutes such as: water, tea, beer, juices,

coffee, etc presented to the end-consumers. But all the suppliers of these substitutes need

massive advertising, brand equity, brand loyalty and making sure that their brands are

effortlessly accessible to the consumers. Most of the substitutes cannot counterpart the

existing players’ offers or diversify business by offering new product lines of the substitute

products to safeguard themselves from rivalry.

• Aggressiveness of substitute products in promotion

Soft drink industry companies spend huge amount of money on advertisement and marketing

to differentiate their products from others and also create brand equity, base of loyal

customers and increase visibility.

• Switching Cost

Switching cost of the substitute products is very low so consumers can easily shift towards the

substitute products.

• Perceived price/ value

Perceived price/value in this industry is very low because all products are comparatively same

and are only differentiated by promotional activities.

4. The bargaining power of Customers (Buyers)

The most important buyers for the Soft Drink industry are fast food fountain, vending,

convenience stores, food stores, restaurants, college canteens and others in the categorize of

market share. The profitability/revenue in each of these segments obviously demonstrates the

bargaining power of the buyers to pay different prices.

• Fast Food Fountain

Pepsi and Coke mainly regard this segment as “Paid Sampling” due to small margins. This

division of buyer’s is the slightest profitable because of the high bargaining power of the

buyers. The bargaining power of the buyers is high because they purchase in bulks.

• Vending Machines

Vending Machines provide products to the customers in a straight line with enormously no

power with the buyer.

• Convenience Stores

This segment is tremendously fragmented and has no bargaining power due to which it has to

pay superior prices.

• Food Stores

This segment of buyers’ is fairly merged with few local supermarkets and numerous chain

stores. Since this segment presents best shelf space it demands lower prices.

5. The bargaining power of Suppliers

Most of the raw materials desirable to manufacture soft drink are basic merchandise such as

flavor, color, caffeine, sugar, and packaging etc. The suppliers of these commodities have no

bargaining power over the pricing due to which the suppliers in soft drink industry are relatively

weak.

• Number of important Suppliers

Raw materials for soft drink are basic commodities which are easily available to every producer

and have low cost which makes no difference for any supplier.

• Switching cost

All the raw material ingredients are basic merchandize and easily accessible to manufacturers.

Switching cost to the suppliers is very low; manufactures can easily shift towards the other

suppliers.

BCG Matrix

CASH COWS

Fanta and Sprite are the products, which the Coca Cola Company can never think of stop

producing. It is the one which make the coke company a huge success; it was one product

which gives billions of dollars as revenue from world over.

QUESTION MARK

Products that are still not a big hit as they haven’t consumed much time yet. Sprite 3G, Sprite

Zero, Diet Coke and Kinley are the examples of these question marks as the question marks as

DOGS

A product that has not worked good or a product which has been a source of loss. flavored

Sprite 3g is one product that was not a big hit.

Proposed Strategy-Formulation Analytical Framework

EFE Matrix of Coca-Cola Company

External Factor Evaluation (EFE) matrix is a strategic-management device which is frequently

used for evaluation of current business environment. The EFE matrix is a superior instrument to

prioritize and visualize the opportunities and threats that a company is facing. An external

factor in the EFE Matrix comes from social, political, legal, economic and other external forces.

An example of external factor evaluation (EFE) matrix is given for the Coca-Cola Company.

Steps in the Construction of EFE Matrix

In the first column, lists down all the opportunities and threats. EFE matrix should include 10 to

20 key external factors.

In the second column assign weights to each factor that ranges from 0.0 (not important) to 1

(most important). The total weights must sum to 1.00 (It should be noted that the importance

of weights depend upon the probable impact of factors on the strategic position of the

company).

In the column three, rate each factor (ranging from 1 to 4) on the basis of company’s response

to that factor. (Here, 1 shows poor response, 2 shows average response, 3 shows above

average response and 4 shows superior response).

In the column four, calculate the weighted score by multiplying the each factor’s weight by its

rating.

Find the total weighted score by adding the weighted score for each variable.

External Factor Evaluation Matrix of Coca-Cola Company

By adding the weighted score of various opportunities and threats of Coca-Cola Company, we

get the total weighted score of 3.05. Here it should be noted that the highest possible total

weighted score of a firm is 4 whereas the lowest possible total weighted score is 1. The total

weighted score remains in the limit of 1 to 4 regardless of the total number of opportunities

and threats. Similarly, the average total weighted score is 2.5. If the total weighted score of a

company is 4, it means that the company is effectively taking advantage of existing

opportunities and is also able to minimize the risk. On the other hand, the total weighted score

of 1 show that firm is not able to take advantage of current opportunities or avoid external

threats.

In the case of Coca-Cola Company, the total weighted score is above average, which means that

the Coca-Cola Company strategies are effective and the company is taking advantage of existing

opportunities along with minimizing the potential adverse effects of external threats.

Competitive Profile Matrix of Coca-Cola

A competitive profile matrix (CPM) categorizes a firm’s main rivals and its particular strengths

and weaknesses in relation to a design firm’s strategic position. In Competitive Profile Matrix an

organization assess itself as well its rivals by giving rating and weights to the critical/key success

factors. It then recognizes its strategic competitive place with its major rivals. A firm which

obtains superior weighted points would have the strong competitive place than its rivals. The

construction of competitive profile matrix for the Coca-Coal company is given below:

Steps in the construction of CPM

Here we will be using weighted rating system for the construction of competitive profile matrix.

Some of the important steps involved in the construction of competitive profile matrix are given

below:

In the first column, lists down all the key success factors of Industry (usually from 6 to 10).

In the second column, assign weights to each factor ranging from 0.0 (not important to 1 (most

important). Greater weights should be given to those factors which have grater influence on

the organizational performance. The sum of all weights must equal 1.

Now rate each factor ranging from 1 to 4 for all the firms in analysis. Here, rating 1 represents

major weakness, rating 2 shows minor weakness. Similarly, rating 3 indicates minor strength

whereas rating 4 shows major strength. It means that weakness must receive 1 or 2 rating while

strength must get 3 or 4 rating.

Calculate weighted score by multiplying each factor’s score by its rating.

Find the total weighted score of all the firms by adding the weighted scores for each variable.

Competitive Profile Matrix for the Coca-Coal Company

The competitiveness of a company can be assessed on the basis of its general strength rating. If

the dissimilarity among firm’s overall rating and the points of lower-rated rivals is greater then

the firm has greater net competitive advantage. Alternatively, if the dissimilarity among a firm’s

overall rating and the points of higher-rated rivals is larger than the company has net

competitive disadvantage. In the above example, CPM Matrix demonstrates that Coca-Cola is

the market leader and dominates its rivals with highest points of 3.74. Pepsi is the runner up

with 3.42 points and Cadbury Schweppes is the weakest rival among these three with the score

of 2.80. This Matrix also shows that Coca-Cola is strong in all the aspects of rivalry and has

strong position in the market place.

IFE Matrix of Coca-Cola Company:

Internal Factor Evaluation (IFE) matrix is a strategic management instrument for assessing main

strengths and weaknesses in useful areas of a company. IFE matrix also gives a foundation for

recognizing and assessing associations among those parts. The IFE matrix is utilized in strategy

formulation. An example of internal factor evaluation matrix is given for the Coca-Cola

Company.

Steps in the Construction of IFE Matrix

In the first column, lists down all the strengths and weaknesses. IFE matrix should include 10 to

20 key internal factors.

In the second column, assign weights to each factor ranging from 0.0 (not important to 1 (most

important). Greater weights should be given to those internal factors which have grater

influence on the organizational performance.

The sum of all weights must equal 1.

In the third column, rate each factor ranging from 1 to 4. Here, rating 1 represents major

weakness, rating 2 shows minor weakness. Similarly, rating 3 indicates minor strength whereas

rating 4 shows major strength. It means that weakness must receive 1 or 2 rating while strength

must get 3 or 4 rating.

In the fourth column, calculate weighted score by multiplying each factor’s score by its rating.

Find the total weighted score by adding the weighted scores for each variable.

SWOT Analysis of Coca-Cola Company:

Coca-Cola is the world’s largest soft-drink company which manufactures and markets non-

alcoholic beverage concentrates and syrups. Besides the well known Coca-Cola and Coke

brands the company offers more than 500 brands in over 200 countries or territories and serves

1.6 billion servings each day. It is headquartered in Atlanta, Georgia.

Strengths:

1. Coca-Cola is the world’s most valuable brand and has strong brand loyalty.

2. Wide variety of Coca-Cola products is sold in the restaurants, stores and vending

machines over 200 countries.

3. Coke is the dominant market leader of the global soft-drink industry right through the

20th century.

4. Coke primarily competes on advertising and differentiation and has the high market

share.

5. Coca-Cola has enormous distribution and production facilities of non-alcoholic

beverages and related products.

6. Joint venture with Nestle has resulted in the formation of Beverage Partners Worldwide

(BPW).

7. The company has strong financial position and profits throughout the history. Its

average ROE (return on equity) for the past five years is 37.08% whereas its ROC (return

on capital) is 33.6%.

8. Coca-Cola has the heavy advertising and promoting activities.

9. More than 70 percent of revenue comes from outside the United States.

10. Enormous number of loyal customers and brand equity all over the world.

Weaknesses:

1. New coke formula leading to a backlash which results in bad image of coke.

2. The company is facing high burden of external debts for the last few years. In 2002,

long-term debt of the company was 2700 million dollars.

3. Product offering is restricted to beverages.

4. In November 2009, because of a dispute over wholesale prices of Coca-Cola goods,

Costco blocked the replenishment of their shelves with Diet Coke and coke.

5. Coca-Cola has discontinued its many products after few years of launching such as New

Coke, Coca-Cola with Lemon, Coca-Cola with Lime, Coca-Cola Blak, etc. which result in

bad image of the brand.

6. Coke has taken less aggressive market standing in today’s changing economic

surroundings.

Opportunities:

1. Bottled water drinking has increased 11 percent.

2. Consumers prefer to drink new smaller beverage products that are not sold on a mass

scale.

3. One of the biggest opportunities is to diversify into the non-carbonated drinks such as

coffee, water, juices, etc.

4. The company can offer the hygienic products due to increasing number of health

conscious consumers.

5. European market and China show marvelous potential for growth.

6. The economic conditions are improving globally after economic meltdown 2007-10.

7. Diversify into complementary food products which will ultimately increase the drink

consumption.

8. Coca cola should increase its partnership with fast food chains.

Threats:

1. There is Low growth rate in the carbonated drinks market in North America which is the

main market of Coca-Cola.

2. There is a problem with Coke to raise its prices by an edge that would permit it to keep

pace with inflation.

3. Huge numbers of substitutes such as beer, water, juices, coffee etc are accessible to the

end consumers.

4. Pepsi is the strong competitor which competes with advertising and differentiation.

5. Since the consumer lifestyle is changing rapidly and they are becoming more health

conscious therefore there demand is shifting towards non-carbonated products such as

juices, tea and bottled drinks.

6. Many smaller players are furious competitors which are also creating the competition

severe.

7. The prices of raw material such as sugar and metals used in manufacturing of cans are

increasing rapidly.

8. Carbonated drink revenues have been decreasing due to association of sugar to obesity

and lofty fructose lump syrup to heart disease.

9. Pepsi has more diversified selling beverage and food products as compared to the Coca

Cola.

10. Coca Cola is facing various regulations in respective countries around the globe.

Recommendations:As PepsiCo has a horizontal expansion, Coca-Cola should have a vertical expansion. Within the

products in PepsiCo, only 37% of products are beverages. Coca Cola should focus on beverages

business and related businesses, e.g. bottling, sugar plantation or even tin can and glass

recycling business.

Coca-Cola should provide industry leadership in the health and wellness area. It should produce

different kinds of products for different segments of the market. In baby boomers’ market,

Coca-Cola should focus on marketing tea and water beverage which contain less sodium and

sugar. In younger generation market, besides sport drink and energy drink, Coca-Cola can

produce organic beverages for younger people.

Availability of drinks is another factor that needs to be improved. Vending machines with new

technologies should be used which are more secure and have better storage space. With

vending machines in each and every shopping mall and streets where there are many

pedestrians, the sales are destined to rise. Better tools and technology should be used to

ensure that the shelves in the retail shops are always filled and the customers never have to

switch to the competitor’s drinks

Nowadays, environmental change is rapid. Coca-Cola should be sensitive of any new trend and

position itself as a unique brand in order to keep its competitive advantage.