Report Coca Cola

8/11/2019 Report Coca Cola

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Table of Contents

Section 1: Introduction 5

1.1 Mission and Objectives 6

1.2 Past and Present 7

1.3 Products and Competency 11

Section 2: Internal Analysis 12

2.1 World Leader in o!t "rin# $ndustry 12

2.2 Wide %eo&rap'ic Covera&e 13

2.3 %ood (inancial Per!ormance 13

2.) *e&ative Publicity 1)

2.+ lu&&is' Per!ormance in *ort' ,merica 1+

2.6 Lac# o! "iversi!ication 1+

Section 3: General Environment Analysis 16

3.1 %lobali-ation 16

3.2 $ncreasin& Concerns on ealt' $ssue 16
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Section : E!ternal Analysis of Coca"Cola 1#

).1 Lo/ 0'reat o! *e/ ntrants 17

).2 tron& 0'reat o! ubstitutes 1

).3 Lo/ 0'reat o! uppliers 1

).) Moderate ar&ainin& Po/er o! uyers 20

).+ tron& Competitive 4ivalry 21
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Section 1: Introduction

0'e Coca5Cola Company Coca5Cola8 t'e /orld9s leadin& so!t drin# ma#er8 operates inmore t'an 2:: countries and sells ):: brands o! nonalco'olic bevera&es. Coca5Cola isalso t'e most valuable brand in t'e /orld. Coca5Cola is a &lobally reco&ni-ed success!ulcompany. 0'e Coca5Cola /as !ounded in May o! 1;;6 and continues !or more t'an acentury t'rou&' t'e times o! /ar and peace8 prosperity and depression and economicboom and bust. ,s late as t'e 1:s8 Coca5Cola /as one o! t'e most respected companiesin t'e /orld8 buildin& and #no/n as a very success!ul mana&ement team. ince 1;8 t'ecompany 'as been stru&&lin& /it' internal /ea#nesses and e


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$ission and %b&ectives

Mission

Coca5Cola declares t'e purpose as a company and serves as t'e standard a&ainst actionsand decisions=

0o re!res' t'e /orld>

0o inspire moments o! optimism and 'appiness>

0o create value and ma#e a di!!erence.

?ision

0'e vision o! Coca5Cola is t'e !rame/or# !or t'eir &uides o! every aspect o! its business.$t is presented in 6Ps=

People= e a &reat place to /or# /'ere people are inspired to be t'e best t'ey can be.

Port!olio= rin& to t'e /orld a port!olio o! @uality bevera&e brands t'at anticipate andsatis!y peopleAs desires and needs.

Partners= *urture a /innin& net/or# o! customers and suppliers8 to&et'er /e createmutual8 endurin& value.

Planet= e a responsible citi-en t'at ma#es a di!!erence by 'elpin& build and supportsustainable communities.

Pro!it= Ma


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'ast and 'resent

1;) > , modest start !or a bold idea

$n a candy store in ?ic#sbur&8 Mississippi8 bris# sales o! t'e ne/ !ountain bevera&ecalled Coca5Cola impressed t'e storeAs o/ner8 Bosep' ,. ieden'arn. e be&an bottlin&Coca5Cola to sell8 usin& a common &lass bottle called a utc'inson. ieden'arn sent acase to ,sa %ri&&s Candler8 /'o o/ned t'e Company. Candler t'an#ed 'im but too# noaction. One o! 'is nep'e/s already 'ad ur&ed t'at Coca5Cola be bottled8 but Candler!ocused on !ountain sales.

1; > 0'e !irst bottlin& a&reement

0/o youn& attorneys !rom C'attanoo&a8 0ennessee believed t'ey could build a businessaround bottlin& Coca5Cola. $n a meetin& /it' Candler8 enjamin (. 0'omas and Bosep'. W'ite'ead obtained e


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116 > irt' o! t'e contour bottle

ottlers /orried t'at t'e strai&'t5sided bottle !or Coca5Cola /as easily con!used /it'imitators. , &roup representin& t'e Company and bottlers as#ed &lass manu!acturers too!!er ideas !or a distinctive bottle. , desi&n !rom t'e 4oot %lass Company o! 0erre aute8

$ndiana /on ent'usiastic approval in 11+ and /as introduced in 116. 0'e contour bottlebecame one o! t'e !e/ pac#a&es ever &ranted trademar# status by t'e .. Patent O!!ice.0oday8 itAs one o! t'e most reco&ni-ed icons in t'e /orld 5 even in t'e dar#D

12:s > ottlin& overta#es !ountain sales

,s t'e 12:s da/ned8 more t'an 18::: Coca5Cola bottlers /ere operatin& in t'e ..

0'eir ideas and -eal !ueled steady &ro/t'. i


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1):s > Post5/ar &ro/t'

"urin& t'e /ar8 6) bottlin& plants /ere set up around t'e /orld to supply t'e troops. 0'is!ollo/ed an ur&ent re@uest !or bottlin& e@uipment and materials !rom %eneralisen'o/erAs base in *ort' ,!rica. Many o! t'ese /ar5time plants /ere later converted to

civilian use8 permanently enlar&in& t'e bottlin& system and acceleratin& t'e &ro/t' o! t'eCompanyAs /orld/ide business.

1+:s > Pac#a&in& innovations

(or t'e !irst time8 consumers 'ad c'oices o! Coca5Cola pac#a&e si-e and type 55 t'etraditional 6.+5ounce contour bottle8 or lar&er servin&s includin& 1:58 125 and 265ounce

versions. Cans /ere also introduced8 becomin& &enerally available in 16:.

16:s > *e/ brands introduced

(ollo/in& (antaE in t'e 1+:s8 priteE 8 Minute MaidE 8 (rescaE and 0aE joinedbrand Coca5Cola in t'e 16:s. Mr. PibbE and Mello FelloE /ere added in t'e 17:s.0'e 1;:s brou&'t diet Co#eE and C'erry Co#eE 8 !ollo/ed by POW4,"E and",,*$E in t'e 1:s. 0oday 'undreds o! ot'er brands are o!!ered to meet consumerpre!erences in local mar#ets around t'e /orld.


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17:s and ;:s > Consolidation to serve customers

,s tec'nolo&y led to a &lobal economy8 t'e retailers /'o sold Coca5Cola mer&ed andevolved into international me&a5c'ains. uc' customers re@uired a ne/ approac'. $nresponse8 many small and medium5si-e bottlers consolidated to better serve &iant

international customers. 0'e Company encoura&ed and invested in a number o! bottlerconsolidations to assure t'at its lar&est bottlin& partners /ould 'ave capacity to lead t'esystem in /or#in& /it' &lobal retailers.

1:s > *e/ and &ro/in& mar#ets

Political and economic c'an&es opened vast mar#ets t'at /ere closed or underdeveloped

!or decades. ,!ter t'e !all o! t'e erlin Wall8 t'e Company invested 'eavily to buildplants in astern urope. ,nd as t'e century closed8 more t'an G1.+ billion /ascommitted to ne/ bottlin& !acilities in ,!rica.

21st Century >

0'e Coca5Cola bottlin& system &re/ up /it' roots deeply planted in local communities.0'is 'erita&e serves t'e Company /ell today as people see# brands t'at 'onor localidentity and t'e distinctiveness o! local mar#ets. ,s /as true a century a&o8 stron& locallybased relations'ips bet/een Coca5Cola bottlers8 customers and communities are t'e!oundation on /'ic' t'e entire business &ro/s.

1:


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'roducts and Com(etency

Coca5Cola ori&inated as a soda !oundation bevera&e in 1;;6 to one o! t'e most popularbevera&e over t'e /orld due to !e/ main causes=

,doption o! stron& bottlin& system.

Massive levels o! penetration and reco&nition.

"istribution net/or#.

0'ree businesses8 units5spar#lin& bevera&es8 still bevera&es and emer&in& brands /illde!ine Coca5Cola9s !ocus in t'e *ort' ,merica mar#et8 /'ere it !aces sti!! competition!rom rival PepsiCo and ma#ers o! 'ealt'ier bevera&es suc' as juices.

(antaE in t'e 1+:s8 priteE 8 Minute MaidE 8 (rescaE and 0aE joined brand Coca5Cola in t'e 16:s. Mr. PibbE and Mello FelloE /ere added in t'e 17:s. 0'e 1;:sbrou&'t diet Co#eE and C'erry Co#eE 8 !ollo/ed by POW4,"E and ",,*$E int'e 1:s. 0oday 'undreds o! ot'er brands are o!!ered to meet consumer pre!erences inlocal mar#ets around t'e /orld.

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Section 2: Internal Analysis

)orld *eader in Soft +rin, Industry

0'e Coca5Cola Company is t'e /orldAs lar&est manu!acturer8 distributer8 and mar#eter o!nonalco'olic bevera&e concentrate includin& carbonated so!t drin# and syrups. $t /as

ori&inally !ounded in t'e nited tates in 1;;6.

Coca5Cola 'as stron& brand reco&nition across t'e &lobe. 0'e company 'as a leadin&brand value and a stron& brand port!olio. $nterbrand8 a brandin& consultancy8 ran#s Coca5Cola t'e top leadin& brands in t'eir best &lobal brands ran#in& in 2:: and 2:1:. $n 2:1:8it valued Coca5Cola at G7:8)+2 million in 2::6.

(urt'ermore8 Coca5Cola o/ns a lar&e port!olio o! product brands. Coca5Cola o/ns orlicenses more t'an +:: brands8 /it' a port!olio o! more t'an 38+:: bevera&es. Productsinclude diet and re&ular spar#lin& bevera&es8 1::H !ruit juices8 !ruit drin#s8 /aters8sports and ener&y drin#s8 teas and co!!ees8 and mil#5and soy based bevera&es. $t o/nsand mar#ets !our o! t'e /orldAs top !ive so!t drin# brands= Coca5Cola8 "iet Co#e8 priteand (anta.

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)ide Geo-ra(.ic Covera-e

Coca5Cola sells !inis'ed bevera&e products bearin& t'e Coca5Cola trademar#s in moret'an 2:: countries. p to 2:118 Coca5Cola 'as 7 operatin& leaders'ip &roups /orld/ide=urasia I ,!rica %roup8 urope %roup8 Latin ,merica %roup8 *ort' ,merica %roup8Paci!ic %roup8 ottlin& $nvestments %roup and Mc"onaldAs "ivision.

0'eir consumers come !rom di!!erent parts o! t'e /orld. ,ccordin& to t'e ,nnual 4eporto! t'e Coca5Cola8 in 2:1:8 /orld/ide consumption o! eac' person /as ; bottles o! ;ounces !inis'ed Coca5Cola bevera&e. 0'ere /ere 23 countries 'avin& t'e avera&e numbero! consumption over 1:: bottles8 e.&. ,ustralia8 out' ,!rica8 Bapan8 pain8 ,r&entina8

Canada. $n Me


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out' ,!rica8 +H in Bapan8 +H in Me


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Section 3: General Environment Analysis

0'is section is to analy-e t'e &eneral environment trend and t'e e!!ects on so!t

drin# industry.

Globaliation

,s t'ere is a continuous &ro/t' rate o! t'e use o! t'e $nternet and ot'er electronic

tec'nolo&ies8 &lobal communication and lo&istic system is rapidly increasin&. 0'is allo/s!irms to collaborate /it' t'e domestic mar#et and e


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Section : E!ternal Analysis of Coca"Cola

0'is section is to analysis t'e e


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ot' Coca5Cola and PepsiCo 'ave a&reements /it' t'eir e


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Stron- T.reat of Substitutes

0'ere are many #inds o! substitutes !or Coca5Cola products. 0'ey are bottled /ater8sports drin#s8 co!!ee and tea. ,s consumers concern more about 'ealt'8 bottled /ater andsport drin#s are increasin&ly popular. 0'is trend is epitomi-ed in t'e bevera&econsumption pattern o! t'e a&ein& baby boomers.

$n t'e mar#ets8 t'ere is an increase o! numbers and varieties o! /ater and sports drin#st'at appeal to di!!erent consumers9 tastes. 0'ose are advertised as 'ealt'ier drin#s. $naddition8 co!!ee and tea are competitive substitutes because t'ey provide ca!!eine. o!tdrin#s can be substituted /it' co!!ee. lend co!!ees are also becomin& more popular /it'

t'e increasin& number o! co!!ee stores8 e.&. tarbuc#s8 /'ic' o!!er many di!!erent !lavorsto appeal to di!!erent consumer mar#ets. Lo/ s/itc'in& costs !or t'e consumer ma#es t'et'reat o! substitute products very stron& "atamonitor8 2::+.

*o T.reat of Su((liers

Major suppliers to Coca5Cola are commodity in&redients suppliers and bottlers. 0'ebar&ainin& po/er o! commodity in&redients suppliers is lo/. Most o! t'e ra/

materials needed to produce concentrate are basic commodities li#e color8 !lavor8 ca!!eineor additives8 su&ar etc. ,s t'e producers o! t'ese products are &enerally providin& t'esame products8 t'ey 'ave lo/er po/er over t'e pricin& 'ence t'e suppliers in t'is

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industry are /ea#. o/ever8 /it' an increasin& su&ar and pac#a&in& material prices8 itdirectly a!!ects t'e pro!itability o! t'e Coca5Cola9s products.

Coca5Cola does not do any bottlin& itsel!. $t is done by independent bottlers. One o! t'ebottlers is Coca5Cola nterprises. 0'is is t'e lar&est bottler in t'e /orld. $t /as onceindependent !rom Coca5Cola /'ic' Coca5Cola 'eld majority s'ares /it'out controllin&po/er. o/ever8 Coca5Cola inte&rated Coca5Cola nterprises earlier in 2:1:. $t can 'avea better control distribution and be @uic#er to mar#et /it' products 5 bot' #ey as t'ecompany #eeps up /it' peopleAs c'an&in& tastes. esides8 it e


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Report Coca Cola