Download - 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.
Employees 92,400
Servings per Day1.6 Billion
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
VISION
VISION
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
7• Quality: What we do, we do well
Coca-Cola Bottles
1894 was the first time Coca-Cola was bottled
1894- early 1900s 1905-1916 1915- today
EXTERNAL ENVIRONMENT
ENVIRONMENTALANALYSIS
POLITICALANALYSIS
ECONOM
ICANALYSIS
LEGALANALY
SIS
TECHNOLOGY
ANLYSIS
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
work.
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
substitutes
Substituteproducts
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
coca cola pepsi.co
others
5%
35%
60%
Product Portfolio of CCI
others
15%
coca cola17%
kinley 11%
sprite 10%
STRATEGIES
1• Differentiated Marketing 2• Customer satisfaction 3• Endorsement of celebrities 4• Reasonably priced 5• Consumer connecting
advertisements 6• Availability in every local market
Future plans1• Increasing the per capita consumption
of its beverages 2• Expanding its distribution networks 3• Leading the beverage revolution in India
COMPETITORS
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.
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
Comparison b/w Coke vs. Pepsi
slicecola 20%
pepsi 35%45%
thum mazza
80%sup20%
mirinda25%
fanta 75%
lemon mirinda 20%
limca 80%
evervess
kinley
50% 50%
7up
25%
sprite 75%
Aquafina20%
kinel
y 80%
Question
HIGH
Mark
STAR
LOWCASH
DOG
COW