coca cola strategy formulation

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Page 1: Coca Cola Strategy Formulation
Page 2: Coca Cola Strategy Formulation

Type Soft Drink (Cola)

Manufacturer The Coca- Cola Company

Founder (s) John S. Pemberton

Country of Origin United States

Introduced 1886

Area Served Over 200 countries

FlavorsCola, Cola Green Tea, Cola Lemon, ColaLemon Lime, Cola Lime, Cola Orange and

Cola Raspberry.

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Employees 92,400

Servings per Day1.6 Billion

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1• Coca-Cola was first sold to the public in Atlanta at Jacob’s Pharmacy

2• Only 9 servings of the soft drink were sold each day

3• Sales for the first year were only $50 4• Today it has 3000 brands-200 nations

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VISION

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VISION

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MISSION

1• To refresh the world in body, mind and spirit 2• To inspire moments of optimism through our brands and our

actions

3• To create value and make a difference everywhere we engage.

VALUES

1• Leadership: The courage to shape a better future 2• Collaboration: Leverage collective genius 3• Integrity: Be real 4• Accountability: If it is to be, it's up to me 5• Passion: Committed in heart and mind 6• Diversity: As inclusive as our brands

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7• Quality: What we do, we do well

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Coca-Cola Bottles

1894 was the first time Coca-Cola was bottled

1894- early 1900s 1905-1916 1915- today

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EXTERNAL ENVIRONMENT

ENVIRONMENTALANALYSIS

POLITICALANALYSIS

ECONOM

ICANALYSIS

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LEGALANALY

SIS

TECHNOLOGY

ANLYSIS

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INDUSTRY ANALYSIS

1• The food and beverage industry encompasses harvesting, processing, milling, packaging, transport and distribution of products to consumers.

2• In 1999, the value of food and beverage industry shipments reached an estimated $487 billion.

3• The needs that customer might be seeking to satisfy are: 1∙Physiological: the need of special food items 2∙Economic: the need for good value for the price paid 3∙Social: a friendly atmosphere, to express feelings frankly

4∙Psychological: the need for enhancement of self‐esteem

5∙Convenience: the desire for someone else to do the

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work.

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PORTER’ s FIVE FORCEs MODEL

Potentialentrants

Threat of new entrants

Bargaining power Industry competitorsof suppliers

Suppliers Buyers

Rivalry among Bargaining powerexisting firms of buyers

Threat of

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substitutes

Substituteproducts

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COMPANY ANALYSIS

REVENUE

years2011

2010

2009

2008

2007

Revenue 46.54B 35.12B 30.99B 31.94B 28.86B

Gross profit 28.33B 22.43B 19.90B 20.57B 18.54Boperating income 10.15B 8.499B 8.231B 8.446B 7.252B

Net income 8.572B 11.81B 6.824B 5.807B 5.981B

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coca cola pepsi.co

others

5%

35%

60%

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Product Portfolio of CCI

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others

15%

coca cola17%

kinley 11%

sprite 10%

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STRATEGIES

1• Differentiated Marketing 2• Customer satisfaction 3• Endorsement of celebrities 4• Reasonably priced 5• Consumer connecting

advertisements 6• Availability in every local market

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Future plans1• Increasing the per capita consumption

of its beverages 2• Expanding its distribution networks 3• Leading the beverage revolution in India

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COMPETITORS

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Competitors Analysis

1• Competitors: PepsiCo, Parle Agro Products 2• Pepsi gives tough fight with almost

similar investment, advertisement, Strategies and Products

3• Parle resurges with refreshing drinks as Appy Fizz, Fruity, LMN

4• PepsiCo also has a snack product line including Lays, Cheetos and Quaker OAT’s

5• PepsiCo provide carbonated drinks, Fruit Drinks and Packaged Drinking Water.

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Comparison of financial highlights

COMPANY NAME Coca cola Pepsi.co

Profit Margin 33.768046 10.958194

Asset Turnover 0.577 1.071

Return on Assets 19.506218 11.736928

Earning Per Share 5.12 3.97

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Comparison b/w Coke vs. Pepsi

slicecola 20%

pepsi 35%45%

thum mazza

80%sup20%

mirinda25%

fanta 75%

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lemon mirinda 20%

limca 80%

evervess

kinley

50% 50%

7up

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25%

sprite 75%

Aquafina20%

kinel

y 80%

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Question

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HIGH

Mark

STAR

LOWCASH

DOG

COW

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