THE COCA COLA COMPANYGroup 6

THE PRESENTERS

MR. EMMANUEL JOHN LAGANAOBACHELOR OF SCIENCE IN BUSINESS ADMINISTRATION - MANAGEMENT

► Small & Medium Enterprise Development Project Participant 2011-2012

► Career Service Eligibility Examination Passer with a rating of 83.36%

MR. PATRICK JEROME MORADOBACHELOR OF SCIENCE IN BUSINESS ADMINISTRATION - MANAGEMENT

► The one who is speaking right now.

MR. ERIC QUIAMBAOBACHELOR OF SCIENCE IN BUSINESS ADMINISTRATION - MANAGEMENT

► Fan ni Camille

► Team CAPTAIN, CYBL Basketball Team 2012

WHAT IS COCA COLA?

► The Coca-Cola Company is a beverage company, manufacturer, distributor, and marketer of non-alcoholic beverage concentrates and syrups. The company is best known for its flagship product Coca-Cola, invented by pharmacist John Stith Pemberton in 1886. The Coca-Cola formula and brand was bought in 1889 by Asa Candler who incorporated The Coca-Cola Company in 1892. Besides its namesake Coca-Cola beverage, Coca-Cola currently offers more than 400 brands in over 200 countries or territories and serves 1.6 billion servings each day. The company operates a franchised distribution system dating from 1889 where The Coca-Cola Company only produces syrup concentrate which is then sold to various bottlers throughout the world who hold an exclusive territory. The Coca-Cola Company is headquartered in Atlanta, Georgia. Its stock is listed on the NYSE and is partof DJIA, S&P 500 Index, the Russell 1000 Index and the Russell 1000 Growth Stock Index.Its current chairman and CEO is Muhtar Kent.

CURRENT VISION

► VISION:

People: Be a great place to work where people are inspired to be the best that 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

Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities.

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

CURRENT MISSION

► MISSION:

To refresh the world…

To inspire moments of optimism and happiness…

To create a value and make a difference.

IMPROVED VISION & MISSION

► VISION:

To inspire our people to do their best in not only providing high quality products but while keeping in mind our responsibilities to those who support the company and to the world.

► MISSION:

To continuously capture the world’s thirst with beverages that makes a difference.

COMPETITOR’S VISION & MISSION

► PEPSI CO.:

► Vision:

"PepsiCo's responsibility is to continually improve all aspects of the world in which we operate environment, social, economic - creating a better tomorrow than today."

Our vision is put into action through programs and a focus on environmental stewardship, activities to benefit society, and a commitment to build shareholder value by making PepsiCo a truly sustainable company.

► Mission:

Our mission is to be the world's premier consumer products company focused on convenient foods and beverages. We seek to produce financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity.

CURRENT ORGANIZATIONAL STRUCTURE

E. Neville Isdell, Chairman of the

Board/CEO

Irial Finan, EVP & President Bottling

Invest/Supply Chain

Gary P. Fayard, CFO & EVP

Mary E. Minnick, EVP & President

MKT Strategy/Innovation

Muhtar Kent, President & COO

Ahmer Bozer, President of the Eurasia Group

Dominique Reiniche, President

European Union Market

Alexander B. Cummings,

President of the African Group

Jose Octavio Reyes, President Latin America Group

Glenn G. Jordan, President of the

Pacific Group

Geoffrey J. Kelly, SVP & General

Counsel

Cynthia P. McCaque, SVP &

Director of Human Resources

Thomas G. Martin, SVP &

DirectorPublic Affairs /

Communication

MARKET POSITIONING MAP

► East and South Asia and the Pacific Rim

► European Union

► Latin America

► North America

► North Asia, Eurasia and The Middle East

COKE’S MARKETING STRATEGY VS COMPETITORS

► Coke’s Business Concept is that they are “a global business that operates on a local scale” in every community where they do business.

► This implies that coke has a specialized marketing strategy for every culture, area or location that they do business in.

► Having these specialized marketing strategies enables Coke to efficiently reach their target market.

► Working as A Global Team: 2 Core Assets “Brand and People”

► Coke’s competitive drive comes from their 2 core assets with its brand and their people. Their superior brand plus their highly capable employees provides high customer satisfaction.

COKE’S E-COMMERCE EFFORTS

► Facebook

► Twitter

INTERNAL FACTOR EVALUATION ANALYSIS

Strengths Weight Rating Weighted ScoreSolid Brand Image 0.14 4 0.56Heavy Advertising and Promoting Activities

0.11 4 0.44

International Operations 0.13 3 0.39

Huge number of production facilities

0.12 4 0.48

Strong financial position 0.11 3 0.33

70% of revenue comes from outside the US

0.12 3 0.36

Specialized marketing strategy for particular country/area

0.10 4 0.40

Dominates the global market for soft drink industry

0.09 4 0.36

Wide variety of beverage products

0.08 3 0.24

1.0 3.56

Weaknesses Weight Rating Weighted Score

Sluggish Performance in North America

0.15 2 0.30

Some product recalls damaged brand image

0.18 1 0.18

Product Pricing is higher than most competitors

0.18 1 0.18

Products being offered are restricted to beverages

0.18 1 0.18

Not aggressive product diversification

0.16 2 0.32

Over complexity of relationships with bottlers

0.15 2 0.30

1.0 1.46

THE COMPETITORS

► PepsiCo.

► More than double in terms of employee size.

► Owns the Aquafina & Gatorade Brands

► Leads in bottled Tea Market

► 60% of revenue comes from its own snack division

► “Better 4 You” Products

► Also conducts business around the world

► Cadbury Schweppes PLC

► Behind PepsiCo. And Coca Cola

► Highly diversified

► Owns brands that date back at least 200 years such as Cadbury, Schweppes, Halls, Trident, Bubbilicious, trebor, Dr. Pepper, 7up and Snapple.

► Winner of Britain’s most admired company award for 2004

COMPETITIVE PROFILE MATRIX

COCA-COLA CO. PEPSICO.

CRITICAL SUCCESS FACTORS WEIGHT RATING SCORE RATING SCORE

Advertising 0.15 4 0.6 3 0.45

Product Quality 0.15 3 0.45 3 0.45

Price Competitiveness 0.10 3 0.3 4 0.4

Management 0.05 4 0.2 4 0.2

Customer Loyalty 0.05 4 0.2 2 0.1

Global Expansion 0.05 4 0.2 3 0.15

Market Share 0.05 4 0.32 3 0.24

Packaging 0.05 4 0.2 4 0.2

Corporate Social Responsibility 0.08 3 0.24 3 0.24

Trend Setting 0.08 4 0.32 3 0.24

Logistics 0.08 4 0.32 4 0.32

Employee Value 0.08 4 0.32 3 0.24

TOTAL 1.0 3.67 3.23

EXTERNAL FACTOR EVALUATION ANALYSIS

Opportunities Weight Rating Weighted Score

Growing population in the US 0.20 4 0.80

Soft drink industry in the Asia Pacific Region forecast continues to grow

0.25 4 1.00

Partnerships with fast-food chains and restaurants

0.25 3 0.75

Producing products like Minute Maid Orange

0.30 4 1.20

1.0 3.75

Threats Weight Rating Weighted Score

Growing Health Conscious Society

0.25 1 0.25

Competitor penetrated deeper into the market

0.20 1 0.20

Sluggish growth of carbonated beverage industry

0.20 2 0.40

Legal Issues, Existing Laws 0.15 2 0.30

Major Competitor have diversified

0.25 1 0.25

1.00 1.40

SUMMARY OF INDUSTRY TRENDS 2007

► The Soft Drink Industry:

- Bottled Tea, the fastest growing drinks in the industry

- Rising cost of Raw Materials (Corn, Oranges, Fuel/Electricity)

- Water (Limitation of water in some areas of operations requires water installation of water purification systems that results in increased manufacturing costs)

- Laws (Soft drinks being banned in some areas due to a high increase in obesity levels and also with ingredients that might be hazardous to one’s health)

- Diversification of Soft Drink companies into other related industries (PepsiCo. Has its own snack manufacturing division)

SWOT MATRIX

INTERNAL FACTORSStrengths Weaknesses

Solid Brand Image Sluggish Performance in North America

International Operations Some product recall history damaged brand image

Huge number of production facilities Product pricing is higher than most competitors

Strong financial position Products being offered is restricted to beverages

70% of revenue comes from outside the US Not aggressive product diversification

Specialized strategy for a particular area Over complexity of relationship with bottlers

Dominates Global Market

Wide Variety of Product

EXTERNAL FACTORSOpportunities Threats

Growing population in the US Growing health-conscious society

Soft drink industry in Asia Pacific Region forecast to increase Competitors penetrated deeply into the market

Partnership with fast-food and restaurants continues to increase

Intense competition

Competitor offers brand for the growing health conscious population

Legal issues

SWOT MATRIX S/O STRATEGIES W/O STRATEGIES

Take advantage of the growing demand in the Asia Pacific Region using solid brand image (S1, O2)

Take advantage of the growing demand in the Asia Pacific Region to compensate for the sluggish performance in North America (W1, O2)

Use the strong financial position o finance heavy advertising and promotion and gain the favor of growing demand in the Asia Pacific Region (S2, S3, O2)

Exclusive partnership with fast-food chains and restaurants would eliminate the risk of having a higher retail price than major competitor

Further increase the partnership with other fast-food chains and restaurants to continue dominating the global market (S8, T3)

SWOT MATRIX S/T STRATEGIES W/T STRATEGIES

Use strong financial position to develop wider variety of products that will cater the growing population of health conscious people (S5,S9,T3)

Product diversification is a must for them to cater to the growing health conscious society(W5, T1)

Use the heavy advertising and promotions backed up with huge number of production facilities to lead the intense competition (S2, S4, T3)

The non-aggressive product diversification as opposed to competitor may result to competitor penetrating deeply into the market(W5,T2)

Implement specialized strategies for every area to avoid problems in existing laws (legal issues)(S7, T5)

Higher retail pricing could cause risk because of the intense competition

RECOMMENDATIONS

► Based on our findings using the SWOT Matrix and SPACE Matrix we recommend to implement the following strategies:

► Take advantage of the growing demand in the Asia Pacific Region using solid brand image (S1, O2)

► Use the strong financial position o finance heavy advertising and promotion and gain the favor of growing demand in the Asia Pacific Region (S2, S3, O2)

► Further increase the partnership with other fast-food chains and restaurants to continue dominating the global market (S8, T3)

RECOMMENDATIONS

► Based on our findings using the SWOT Matrix and SPACE Matrix we recommend to implement the following strategies:

► Take advantage of the growing demand in the Asia Pacific Region to compensate for the sluggish performance in North America (W1, O2)

► Exclusive partnership with fast-food chains and restaurants would eliminate the risk of having a higher retail price than major competitor

RECOMMENDATIONS

► Based on our findings using the SWOT Matrix and SPACE Matrix we recommend to implement the following strategies:

► Use strong financial position to develop wider variety of products that will cater the growing population of health conscious people (S5,S9,T3)

► Use the heavy advertising and promotions backed up with huge number of production facilities to lead the intense competition (S2, S4, T3)

► Implement specialized strategies for every area to avoid problems in existing laws (legal issues)

BALANCED SCORECARD

► Financial Perspective

► Improve Productivity

► Grow Revenue

► Customer Perspective

► Gain Market Share

► Satisfy Customer Needs

BALANCED SCORECARD

► Internal Processes Perspective

► Manage Operations

► Manage Customers

► Manage innovation

► Learning & Growth

► Diversified Working Environment

► Employee Satisfaction

THANKS AND FAREWELL. GROUP 6