Chapter 1 - Purpose of the study

1.1 Objective of the project report

Objectives
The main objectives for the Coca-Cola Company are to be globally known as a business that conducts business responsibility and ethically and to accelerate sustainable growth to operate in tomorrow's world. By having these objectives, it forms the foundation for companies in the decision making process.

Increasing consumer awareness of the brand, by emphasizing on the popular prestige surrounding the mystery of a Coca-Cola.

Presenting the consumer with enough product background information to aid them in making better choices when purchasing foods or beverages

Accurately representing the raw components that are believed to be used in creating a Coca-Cola

Strategies and Tactics The Coca-Cola company aims to be globally known, they do this by targeting different areas across the globe with different products, gaining their brand name and popularity. All the bottling partners work closely with their customers such as convenience stores, grocery stores, movie theaters and street vendors to create and use localized strategies developed in partnership with the Company. Their competition with other beverage companies are also narrowed down as they own various brands that could be possible competition. For example, the company sells Coke without the competition of other popular soft drink brands like Sprite and Fanta because the company owns those brands as well. The company often reviews and evaluates their business plans and performance to improve their earnings and analyze their competitive position in the market. They make decisions in realigning their business models to match the objectives of the company by using strategies and tactics in the analysis of their performance.

Scope of the Study

This study looked at distribution channel from successful, multinational corporation: The Coca-Cola Company. Only one corporation was chosen in order to provide a consistent institutional background for all the distribution analyzed in the study and to allow the researcher to focus on the content of the advertisements without having to worry about variations in company mission or intent. The Coca-Cola Company has successfully entered many different global markets, which demonstrates the companys ability to utilize effective global strategies distribution. Coca-Colas consistent, global success prompted the choice of the companys distribution channel for analysis in this study. The distribute selected for this study were produced by Coca-Cola for use in the United States, Brazil, India, China, Russia, and Nigeria. distribution from the United States were included because the Coca-Cola Company originated there and U.S. advertisements provided a control group for the study. Other countries were selected because of their status as significant emerging world markets and to provide a sample of differing cultures and geographic locations. Each country was also experiencing a significant growth in distribution, which made it ideal for use in this study. Each advertisement was chosen based on a specific set of criteria, and a convenience sampling was used with Google search engine as the medium for selection.

Chapter 2 Introduction
1.1 About the organization History
Coca-Cola is a carbonatedsoft drink sold in stores, restaurants, and vending machines in every country except Cuba and North Korea. It is produced by The Coca-Cola Company of Atlanta, Georgia, and is often referred to simply as Coke (a registered trademark of The Coca-Cola Company in the United States since March 27, 1944). Originally intended as a patent medicine when it was invented in the late 19th century by John Pemberton, Coca-Cola was bought out by businessman Asa Griggs Candler, whose marketing tactics led Coke to its dominance of the world soft-drink market throughout the 20th century. The company produces concentrate, which is then sold to licensed Coca-Cola bottlers throughout the world. The bottlers, who hold territorially exclusive contracts with the company, produce finished product in cans and bottles from the concentrate in combination with filtered water and sweeteners. The bottlers then sell, distribute and merchandise Coca-Cola to retail stores and vending machines. The Coca-Cola Company also sells concentrate for soda fountains to major restaurants and food service distributors. The Coca-Cola Company has, on occasion, introduced other cola drinks under the Coke brand name. The most common of these is Diet Coke, with others including Caffeine-Free Coca-Cola, Diet Coke Caffeine-Free, Coca-Cola Cherry, Coca-Cola Zero, Coca-Cola Vanilla, and special versions with lemon, lime or coffee. Based on Interbrand's best global brand 2011, Coca-Cola was the world's most valuable brand. 19th century historical origins

Coca-Cola founders Asa G. Candler and Dr. John S. Pemberton are seen together at Asa G. Candler & Co. Pharmacy, 47 Peachtree St., Atlanta in the only extant albumen photograph from 1888. Also shown is the biography of Candler written by his son, Charles Howard Candler.

John Pemberton, the inventor of Coca-Cola

Old German Coca-Cola bottle opener.

Believed to be the first coupon ever, this ticket for a free glass of Coca-Cola was first distributed in 1888 to help promote the drink. By 1913, the company had redeemed 8.5 million tickets.

This Coca-Cola advertisement from 1943 is still displayed in the small city of Minden, Louisiana.

The prototype Coca-Cola recipe was formulated at the Eagle Drug and Chemical Company, a drugstore in Columbus, Georgia, by John Pemberton, originally as a coca wine called Pemberton's French Wine Coca. He may have been inspired by the formidable success of Vin Mariani, a European coca wine. In 1886, when Atlanta and Fulton County passed prohibition legislation, Pemberton responded by developing Coca-Cola, essentially a nonalcoholic version of French Wine Coca. The first sales were at Jacob's Pharmacy in Atlanta, Georgia, on May 8, 1886.[8] It was initially sold as a patent medicine for five cents a glass at soda fountains, which were popular in the United States at the time due to the belief that carbonated water was good for the health. Pemberton claimed Coca-Cola cured many diseases, including morphine addiction, dyspepsia, neurasthenia, headache, and impotence. Pemberton ran the first advertisement for the beverage on May 29 of the same year in the Atlanta Journal. By 1888, three versions of Coca-Cola sold by three separate businesses were on the market. A copartnership had been formed on January 14, 1888 between Pemberton and four Atlanta businessmen: J.C. Mayfield, A.O. Murphey; C.O. Mullahy and E.H. Bloodworth. Not codified by any signed document, a verbal statement given by Asa Candler years later asserted under testimony that he had acquired a stake in Pemberton's company as early as 1887. Asa Candler, however, eventually took on a more formal position by being part of the Coca-Cola Company incorporation filed in the Fulton County Superior Court on March 24, 1888. This action included Charley Pemberton and Woolfolk Walker, along with the latter's sister, Margaret Dozier. The four made up the original shareholders for "Coca-Cola Company," a Georgia corporation. All parties held copies of the Coca-Cola recipe and could continue to use the formula separate of each other. Pemberton, though, had declared that the name "Coca-Cola" belonged solely to his son Charley. The situation was quite agitating to both Candler and Walker, and quickly placed the two at odds with Charley Pemberton. What further caused friction over this issue was that John Pemberton variously forgot he had actually signed over the sole rights to the "Coca-Cola" name to his son Charley earlier. Pemberton's ongoing health problems, compounded by his morphine addiction brought about from his old Civil War injury, made the situation difficult. Charley Pemberton's record of control over the "Coca-Cola" name was the underlying factor that allowed for him to participate as a major shareholder in the March 1888 Coca-Cola Company incorporation filing made in his father's place. More so for Candler especially, Charley's position holding exclusive control over the "Coca Cola" name continued to be a thorn in his side. Asa Candler's oldest son, Charles Howard Candler, authored a book in 1950 published by Emory University. In this definitive biography about his father, Candler specifically states: "..., on April 14, 1888, the young druggist [Asa Griggs Candler] purchased a one-third interest in the formula of an almost completely unknown proprietary elixir known as Coca-Cola." The deal was actually between John Pemberton's son Charley and Walker, Candler & Co. - with John Pemberton acting as cosigner for his son. For $50 down and $500 in 30 days, Walker,

Candler & Co. Obtained all of the one-third interest in the Coca-Cola Company that Charley held, all while Charley still held on to the name. After the April 14th deal, on April 17, 1888, one-half of the Walker/Dozier interest shares were acquired by Candler for an additional $750. Charles Howard Candler's statement that April 14, 1888 was the date his father secured a "onethird interest in the formula" held by Charley Pemberton for the then obscure Coca-Cola elixir nonetheless confirms that this event was a major turning point for Asa Candler and his interests in Coca-Cola. This, too, was a most auspicious occasion that Asa Candler would have especially wanted to preserve in an 'official' photograph. By this time the "Coca-Cola" syrup-making apparatus had already been moved from Joe Jacob's pharmacy to the basement of Candler's larger 47 Peachtree Street location, where the drink's ever increasing syrup-bottling demands could be better handled. In 1910, Asa Candler had ordered all corporate documents pertaining to the first Coca-Cola Company burned. An original 1888 photograph shows the very beginnings of the Coca Cola Company, and formerly was the personal property of Asa Griggs Candler. In 1914, Margaret Dozier, as co-owner of the original Coca-Cola Company in 1888, brazenly came forward to claim her signature on the 1888 Coca-Cola Company bill of sale had been forged. Subsequent analysis of certain similar transfer documents had also indicated John Pemberton's signature was most likely a forgery, as well, which some accounts claim was precipitated by his son Charley. The Coca-Cola Company In 1892, Candler set out to incorporate a second company; "The Coca-Cola Company" (the current corporation). When Candler had the earliest records of the "Coca-Cola Company" burned in 1910, the action was claimed to have been made during a move to new corporation offices around this time. The loss of the early corporate records further obscured the 1888 corporation's legal origins. Only one sole original "ASA G. CANDLER & CO." photograph from 1888 remains, and that example Candler at one time kept at his private home outside of Atlanta. After Candler had gained a better foothold of Coca-Cola in April 1888, he nevertheless was forced to sell the beverage he produced with the recipe he had under the names "Yum Yum" and "Koke". This was while Charley Pemberton was selling the elixir, although a cruder mixture, under the name "Coca-Cola", all with his father's blessing. After both names failed to catch on for Candler, by the summer of 1888, the Atlanta pharmacist was quite anxious to establish a firmer legal claim to Coca-Cola, and hoped he could force his two competitors, Walker and Dozier, completely out of the business, as well. When Dr. John Stith Pemberton suddenly died on August 16, 1888, Asa G. Candler now sought to move swiftly forward to attain his vision of taking full control of the whole Coca-Cola operation.

Charley Pemberton, an alcoholic, was the one obstacle who unnerved Asa Candler more than anyone else. Candler is said to have quickly maneuvered to purchase the exclusive rights to the name "Coca-Cola" from Pemberton's son Charley right after Dr. Pemberton's death. One of several stories was that Candler bought the title to the name from Charley's mother for $300; approaching her at Dr. Pemberton's funeral. Eventually, Charley Pemberton was found on June 23, 1894, unconscious, with a stick of opium by his side. Ten days later, Charley died at Atlanta's Grady Hospital at the age of 40. In Charles Howard Candler's 1950 book about his father, he stated: "On August 30th {1888}, he {Asa Candler} became sole proprietor of Coca-Cola, a fact which was stated on letterheads, invoice blanks and advertising copy." With this action on August 30, 1888, Candler's sole control became technically all true. Candler had negotiated with Margaret Dozier and her brother Woolfolk Walker a full payment amounting to $1,000, which all agreed Candler could pay off with a series of notes over a specified time span. By May 1, 1889, Candler was now claiming full ownership of the Coca-Cola beverage, with a total investment outlay by Candler for the drink enterprise over the years amounting to $2,300. According to collected general histories about Coca-Cola, one early account claimed that CocaCola was sold in bottles for the first time on March 12, 1894. The event witnessing the first commercial sale of bottled Coca-Cola however actually took place a few years before, in early 1891. The basic concept of bottling Coca-Cola was brainstormed by Asa Candler in late 1890.

Excerpts from Asa G. Candler prepared January 1891 Grier's Almanac revealing the very first advertisements for bottled Coca-Cola priced "25 cts. For large bottles" - available from the Candler pharmacy at 47 Peachtree Street, Atlanta, Georgia. Asa Candler first made the drink elixir available in bottles available at his Asa G. Candler & Co., 47 Peachtree Street, Atlanta, Georgia pharmacy location, with the first ever advertisements documenting bottled Coca-Cola found in Grier's Almanac issued in January 1891. Large bottles of Coca-Cola were "Sold by Druggists and Grocers at 25 Cents per Bottle." The drink also contained the coca-leaf drug extract, which was cited in a banner advertisement atop one of the calendar pages in the 1891 Grier's Almanac. Asa Candler had proclaimed himself "sole

proprietor" by this time, after having paid off the financial notes due on the outstanding shares of the original Coca-Cola Company held by Woolfolk Walker and Margaret Dozier. The first bottling of Coca-Cola outside of Atlanta occurred in Vicksburg, Mississippi, at the Biedenharn Candy Company in 1891. The proprietor of the bottling works was Joseph A. Biedenharn. The original bottles were Biedenharn bottles, very different from the much later hobble-skirt design of 1915 now so familiar. Although Asa Candler had spearheaded bottling Coca-Cola as early as late 1890, he never-theless was tentative about bottling the drink. At the time, to get the bottled drink to market into all sectors of the United States, Candler reasoned using trains and horse-drawn wagons was not cost productive - unaware that the gas motor automobile and what came to be known as motor trucks - was just around the corner. In his world present in the 1890s, keeping distribution local was the key factor Candler understood. For Candler, national distribution of bottled Coca-Cola was too big a jump for his still, relatively small company. It was then a few years later that two entrepreneurs from Chattanooga, Tennessee, namely; Benjamin F. Thomas and Joseph B. Whitehead, proposed the idea of bottling and were so persuasive that Candler signed a contract giving them control of the procedure for only one dollar. Candler never collected his dollar, but in 1899, Chattanooga became the site of the first Coca-Cola bottling company. Candler remained very content just selling his company's syrup. The loosely termed contract proved to be problematic for The Coca-Cola Company for decades to come. Legal matters were not helped by the decision of the bottlers to subcontract to other companies, effectively becoming parent bottlers. The first outdoor wall advertisement that promoted the Coca-Cola drink was painted in 1894 in Cartersville, Georgia. Cola syrup is sold as an over-the-counter dietary supplement for upset stomach. 20th century landmarks By the time of its 50th anniversary, the soft drink had reached the status of a national icon in the USA. In 1935, it was certified kosher by Atlanta Rabbi Tobias Geffen, after the company made minor changes in the sourcing of some ingredients.

Original framed Coca-Cola artist's drawn graphic presented by The Coca-Cola Company on July 12, 1944 to Charles Howard Candler on the occasion of Coca-Cola's "1 Billionth Gallon of Coca-Cola Syrup."

Claimed to be the first installation anywhere of the 1948 model "Boat Motor" styled Coca-Cola soda dispenser, Fleeman's Pharmacy, Atlanta, Georgia. The "Boat Motor" soda dispenser was introduced in the late 1930s and manufactured till the late 1950s. Photograph circa 1948. The longest running commercial Coca-Cola soda fountain anywhere was Atlanta's Fleeman's Pharmacy, which first opened its doors in 1914. Jack Fleeman took over the pharmacy from his father and ran it till 1995; closing it after 81 years. On July 12, 1944, the one-billionth gallon of Coca-Cola syrup was manufactured by The CocaCola Company. Cans of Coke first appeared in 1955. New Coke On April 23, 1985, Coca-Cola, amid much publicity, attempted to change the formula of the drink with "New Coke". Follow-up taste tests revealed most consumers preferred the taste of

New Coke to both Coke and Pepsi, but Coca-Cola management was unprepared for the public's nostalgia for the old drink, leading to a backlash. The company gave in to protests and returned to a variation of the old formula using high fructose corn syrup instead of cane sugar as the main sweetener, under the name Coca-Cola Classic, on July 10, 1985. 21st century On July 5, 2005, it was revealed that Coca-Cola would resume operations in Iraq for the first time since the Arab League boycotted the company in 1968. In April 2007, in Canada, the name "Coca-Cola Classic" was changed back to "Coca-Cola". The word "Classic" was removed because "New Coke" was no longer in production, eliminating the need to differentiate between the two. The formula remained unchanged. In January 2009, Coca-Cola stopped printing the word "Classic" on the labels of 16-US-fluidounce (470 ml) bottles sold in parts of the southeastern United States. The change is part of a larger strategy to rejuvenate the product's image.[34] The word "Classic" was removed from all Coca-Cola products by 2011. In November 2009, due to a dispute over wholesale prices of Coca-Cola products, Costco stopped restocking its shelves with Coke and Diet Coke. However, some Costco locations (such as the ones in Tucson, Arizona), sell imported Coca-Cola from Mexico. Coca-Cola introduced the 7.5-ounce mini-can in 2009, and on September 22, 2011, the company announced price reductions, asking retailers to sell eight-packs for $2.99. That same day, CocaCola announced the 12.5-ounce bottle, to sell for 89 cents. A 16-ounce bottle has sold well at 99 cents since being re-introduced, but the price was going up to $1.19. In 2012, Coca-Cola would resume business in Myanmar after 60 years of absence due to U.S.imposed investment sanctions against the country. Coca-Cola's bottling plant will be located in Yangon and is part of the company's five-year plan and $200 million investment in Myanmar. Coca-Cola with its partners is to invest USD 5 billion in its operations in India by 2020. In 2013, it was announced that Coca-Cola Life would be introduced in Argentina that would contain stevia and sugar.

2.2 Form of ownership

The Coca Cola Company is a public limited company . They offer shares to the general public through the company. It is mainly larger companies such as Coca Cola that are public limited companies. The advantages of a public limited company are: * Shareholders have limited liability * The sale of shares enables larger sums of money to be raised * While the company has this money permanently, the individual owners can recoup their money by selling their shares to others * Directors may be brought in as experts in certain fields * Produce goods at lower unit cost * Due to their size they can benefit from economies of scale, e.g. bulk buying, cheaper borrowing The disadvantages of a public limited company are: There are a number of legal requirements to fulfil in setting up a company Regulations mean that a company is more expensive to set up than a sole trader or partnership, although the cost may be as little as 100, and some already registered companies can be bought off the peg The accounting of a company is less private than for other forms of organisation The company could become to large resulting in poor labour relations There could be a conflict of interest between shareholders and the Board of Directors Possibility of takeover or merger because shares can be bought by anyone Coca Cola also have limited liability as they are a public limited company. A limited company is owned by its shareholders. There is no

legal maximum to the number of shareholders. There are two forms of Limited Liability Company in the UK, the Private Limited Company (Ltd) and the Public Limited Company (Plc). The essential difference, between the two, is that the Private Limited Company can not legally offers its shares to the general 'public', therefore this form of company is usually associated with family run businesses. Whilst the Public Limited Company can sell its shares to the general public on the Stock Exchange, providing the potential for far greater finances to be raised. The owners of a limited company are referred to as its members, or shareholders. An individual can become an owner of the business by purchasing shares in that business. When the profits of the business are distributed to shareholders, they are distributed in the form of a dividend. The value of the dividend is decided upon not by the owners, but by the Directors of the business. Some shareholders had invested their life savings and not only lost their money, but their homes, limited liability was designed to protect shareholders from this mistake, but the key motive was to ensure that large projects could continue to raise capital.

2.3 Nature of bussiness

Ingredients

Carbonated water Sugar (sucrose or high-fructose corn syrup depending on country of origin) Caffeine Phosphoric acid Caramel color (E150d) Natural flavorings

A can of Coke (12 fl ounces/355 ml) has 39 grams of carbohydrates (all from sugar, approximately 10 teaspoons) 50 mg of sodium, 0 grams fat, 0 grams potassium, and 140 calories. Formula of natural flavorings The exact formula of Coca-Cola's natural flavorings (but not its other ingredients, which are listed on the side of the bottle or can) is a trade secret. The original copy of the formula was held in SunTrust Bank's main vault in Atlanta for 86 years. Its predecessor, the Trust Company, was the underwriter for the Coca-Cola Company's initial public offering in 1919. On December 8, 2011, the original secret formula was moved from the vault at SunTrust Banks to a new vault containing the formula which will be on display for visitors to its World of Coca-Cola museum in downtown Atlanta. A popular myth states that only two executives have access to the formula, with each executive having only half the formula The truth is that while Coca-Cola does have a rule restricting access to only two executives, each knows the entire formula and others, in addition to the prescribed duo, have known the formulation process.

On February 11, 2011, Ira Glass revealed on his PRI radio show, This American Life, that the secret formula to Coca-Cola had been uncovered in a 1979 newspaper. The formula found basically matched the formula found in Pemberton's diary. Use of stimulants in formula

When launched, Coca-Cola's two key ingredients were cocaine and caffeine. The cocaine was derived from the coca leaf and the caffeine from kola nut, leading to the name Coca-Cola (the "K" in Kola was replaced with a "C" for marketing purposes). Coca cocaine Pemberton called for five ounces of coca leaf per gallon of syrup, a significant dose; in 1891, Candler claimed his formula (altered extensively from Pemberton's original) contained only a tenth of this amount. Coca-Cola once contained an estimated nine milligrams of cocaine per glass. In 1903, it was removed. After 1904, instead of using fresh leaves, Coca-Cola started using "spent" leaves the leftovers of the cocaine-extraction process with trace levels of cocaine. Coca-Cola now uses a cocaine-free coca leaf extract prepared at a Stepan Company plant inMaywood, New Jersey.

In the United States, the Stepan Company is the only manufacturing plant authorized by the Federal Government to import and process the coca plant, which it obtains mainly from Peru and, to a lesser extent, Bolivia. Besides producing the coca flavoring agent for Coca-Cola, the Stepan Company extracts cocaine from the coca leaves, which it sells to Mallinckrodt, a St. Louis, Missouri, pharmaceutical manufacturer that is the only company in the United States licensed to purify cocaine for medicinal use. Kola nuts caffeine Kola nuts act as a flavoring and the source of caffeine in Coca-Cola. In Britain, for example, the ingredient label states "Flavourings (Including Caffeine)." Kola nuts contain about 2.0 to 3.5% caffeine, are of bitter flavor and are commonly used incola soft drinks. In 1911, the U.S. government initiated United States v. Forty Barrels and Twenty Kegs of Coca-Cola, hoping to force Coca-Cola to remove caffeine from its formula. The case was decided in favor of CocaCola. Subsequently, in 1912, the U.S. Pure Food and Drug Act was amended, adding caffeine to the list of "habit-forming" and "deleterious" substances which must be listed on a product's label. Coca-Cola contains 34 mg of caffeine per 12 fluid ounces (9.8 mg per 100 ml). Franchised production model The actual production and distribution of Coca-Cola follows a franchising model. The Coca-Cola Company only produces a syrup concentrate, which it sells to bottlers throughout the world, who hold Coca-Cola franchises for one or more geographical areas. The bottlers produce the final drink by mixing the syrup with filtered water and sweeteners, and then carbonate it before putting it in cans and bottles, which the bottlers then sell and distribute to retail stores, vending machines, restaurants and food service distributors. The Coca-Cola Company owns minority shares in some of its largest franchises, such as CocaCola Enterprises, Coca-Cola Amatil, Coca-Cola Hellenic Bottling Company and Coca-Cola FEMSA, but fully independent bottlers produce almost half of the volume sold in the world. Independent bottlers are allowed to sweeten the drink according to local tastes. The bottling plant in Skopje, Macedonia, received the 2009 award for "Best Bottling Company".

2.3Geographic area
Coca-Cola is one of the most widely used soft drink in the world. The company has very efficient and extensive distribution system in the world. There is a great variety of brands offered by Coca-cola throughout the world like Diet coke, sprite, Fanta, Rc cola, Minute made etc. you can find the Coca-cola soft drinks anywhere in every country of the world. The 'Coca-Cola' brand has been adopted the strategy of global marketing. They are considering the whole world as single market place and uniform marketing strategy was being used Cocacola for many years, but now the trend is changing and different marketing campaigns are being designed for different regions of the world. . Business decisions are made on a domestic basis to fit in with the culture and needs of the domestic community. In 1919 Coca-Cola decided it was time to go global. The Coca-Cola Company decided to take its operations beyond national

boundaries and marketing research was started in central America, china and many other countries of the world. Because of successful and efficient marketing research Coca-cola was able to produce globally in different regions of the world. Coca-cola has got such an intensive distribution and bottlers system that its products are available everywhere in the world, starting from Middle East to Australia. You can find coca cola product on every retail outlet There are many reasons why company decided to sell its product in international market. The prospect exists to sell 'Coca-Cola' worldwide, because 'Coca-Cola' is a product which can be used by everyone irrespective of age and gender, all over the world. Marketing globally demand the company to have a marketing team in line with a country's consumers so effective sales can be made and good relations with the abroad key employees can be maintained. If we look on advertising perspective of Coca-cola, advertising has created a demand for 'CocaCola' worldwide. However, advertising has to be in line with the domestic culture. An adapted marketing mix means adjusting the mix with the prevailing culture, geographic, economic and other differences in different countries. Different languages and cultures caused problems. In addition, according to Bettman, et. al, Coca-Colas bottling system is one of their greatest strengths. It permits them to do their business on a global scale while at the same time maintain a national approach. The bottling companies are domestically owned and operated by independent business people who are authorized to sell products of the Coca-Cola Company. Because Coke does not have complete ownership of its bottling network, its main source of revenue is the sale of concentrate to its bottlers (Bettman, et. al, 1998). .Brand image is the significant factor affecting Cokes sale. Coca-Colas brand name is very well known all over the world. Packaging changes have also affected sales and industry positioning, but in general, the public has tended not to be affected by new products. Coca-Colas bottling system also allows the company to take advantage of infinite growth opportunities around the world. This strategy gives Coke the opportunity to service a large geographic, diverse, area. (Arthur A. Thompson Jr., A. J, 2005) Now there is the threat of new vital competitors in the carbonated soft drink industry is not very extensive. The threat of substitutes, however, is a very real threat. The soft drink industry is very strong, but consumers are not necessarily married to it. Possible substitutes that continuously put pressure on both Pepsi and Coke include tea, coffee, juices, milk, and hot chocolate. Even though Coca-Cola and Pepsi control nearly 40% of the entire beverage market, the changing health-awareness of the market could have a serious affect. Of course, both Coke and Pepsi have already diversified into these markets, allowing them to have further significant market shares. The increasing health consciousness and emphasis of healthy lifestyle not only in developed nations, but also in developing nations, have slowed down the sales of Coca-Colas carbonated soft drinks. In response to this health consciousness issue, the company introduced Diet Coke in 1982. Such change of consumer life style had also led to the introduction of its bottled purified water. (Murden, Terry, 2005)

Coca-Colas brand personality reflects the positioning of its brand. The process of positioning a brand or product is a complex managerial task and must be done over time using all the elements of the marketing mix. Positioning is in the mind of the consumer and can be described as how the product is considered by that consumer. When researching the positioning of a product, consumers are often asked how they would describe that product if it were a person. The purpose of this is to develop a character statement. This can ensure that consumers have a clear view of the brand values that make up the brand personality, just like the values and beliefs that make up a person. Many people see Coca-Cola as a part of their daily life. This similarity between the brand and the consumer leads to a high degree of loyalty and makes the purchasing decision easier. It is of a lot importance to create the right brand image that closely in lines with the consumers life experiences and feelings. Sponsorship is one way of building these associations (Arthur A. Thompson Jr., A. J, 2005). Through events such as Coca-Colas Form and Fusion Design Awards and sporting events a brand manager can ensure that its product image is made relevant to the target audience. An element of the marketing mix that involves making aware the customers. The promotional mix will often include sales promotion, advertising, direct selling and public relations elements The progress and advancement in the field of technology in the fields of soft drink raw material, production, manufacturing, information and communication technology and logistics have great positive impacts on the operations and sales of Coca-Cola. The availability of new soft drink ingredients enables Coca-Cola to introduce new variety of its products to its existing consumers, not forgetting to attract the new consumer groups. The use of the latest information technology has made able the company to attract the new generation of soft drink consumers with the latest features of song downloading. Also the existence of company website has enabled the world to be in touch with the latest progress, promotions and offers of Coca-Cola.

Chapter 3 Company profile

3.1Organization structure
The Coca-Cola Company has a Separate International Division Structure because its international staffs operate separately and in isolation from head office. It has various divisions in all continents around the world with presidents that control each continental division. CocaCola has 5 continental divisions.

Eurasia & Africa Group Europe Group Latin America Group North America Group Pacific Group

Each Continental division has vice presidents that control sub-divisions based on regions or countries. This structure is efficient for Coca-Cola since it is a very large company.

How do they operate? Coca-Cola is as an ethnocentric MNC because its domestic operations are very similar to its international operations. Regardless of the country or region, Coca-Cola operates the same way and sells the same brand and type of soft drink. The company has tight control over its operations from head office.

3.2Vision & Mission/Core values

Mission and Vision Statements The main difference between mission and vision statements are the mission statements communicate where a company is now while vision statements communicate where it wishes to be in the future. Vision statements are often more abstract and less direct than a mission statements and mission statements can vary from being very simple to very complex.

Mission - To refresh the world - To inspire moments of happiness and optimism - To create value and make a difference Vision 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. I thought that the vision statement points were more in depth and detail in comparison to their mission statement points when it should've been the other way around. The mission statement was more abstract and broad whereas the vision statement was more clear and direct. Both statements somewhat communicated what their goal is for the future and where the company is at now and I thought that both statements together did portray what the company was trying to achieve. Strategies and Tactics The Coca-Cola company aims to be globally known, they do this by targeting different areas across the globe with different products, gaining their brand name and popularity. All the bottling partners work closely with their customers such as convenience stores, grocery stores, movie theaters and street vendors to create and use localized strategies developed in

partnership with the Company. Their competition with other beverage companies are also narrowed down as they own various brands that could be possible competition. For example, the company sells Coke without the competition of other popular soft drink brands like Sprite and Fanta because the company owns those brands as well. The company often reviews and evaluates their business plans and performance to improve their earnings and analyze their competitive position in the market. They make decisions in realigning their business models to match the objectives of the company by using strategies and tactics in the analysis of their performance.

3.3 Product & Service offered

The Coca-Cola Company offers more than 500 brands in over 200 countries, besides its namesake Coca-Cola beverage. Tab was Coca-Cola's first attempt to develop a diet soft drink, using saccharin as a sugar substitute. Introduced in 1963, the product is still sold today, although its sales have dwindled since the introduction of Diet Coke. The Coca-Cola Company also produces a number of other soft drinks including Fanta (introduced circa 1941) and Sprite. Fanta's origins date back to World War II when Max Keith, who managed Coca-Cola's operations in Germany during the war, wanted to make money from Nazi Germany but did not want the negative publicity. Keith resorted to producing a different soft drink, Fanta, which proved to be a hit, and when Coke took over again after the war, it adopted the Fanta brand as well. The German Fanta KlareZitrone ("Clear Lemon Fanta") variety became Sprite, another of the company's bestsellers and its response to 7 Up. Coca-Cola South Africa also released Valpre Bottled "still" and "sparkling" water. During the 1990s, the company responded to the growing consumer interest in healthy beverages by introducing several new non-carbonated beverage brands. These included Minute Maid Juices to Go, Powerade sports beverage, flavored tea Nestea (in a joint venture with Nestle), Fruitopia fruit drink and Dasani water, among others. In 2001, Minute Maid division launched the Simply Orange brand of juices including orange juice.

In 2004, perhaps in response to the burgeoning popularity of low-carbohydrate diets such as the Atkins Diet, Coca-Cola announced its intention to develop and sell a low-carbohydrate alternative to Coke Classic, dubbed C2 Cola. C2 contains a mix of high fructose corn syrup, aspartame, sucralose, and Acesulfame potassium. C2 is designed to more closely emulate the taste of Coca-Cola Classic. Even with less than half of the food energy and carbohydrates of standard soft drinks, C2 is not a replacement for zero-calorie soft drinks such as Diet Coke. C2 went on sale in the U.S. on June 11, 2004, and in Canada in August 2004. C2's future is uncertain due to disappointing sales. Coca-Cola is the best-selling soft drink in most countries, and was recognized as the number one global brand in 2010. While the Middle East is one of the only regions in the world where CocaCola is not the number one soda drink, Coca-Cola nonetheless holds almost 25% marketshare (to Pepsi's 75%) and had double-digit growth in 2003. Similarly, in Scotland, where the locally produced Irn-Bru was once more popular, 2005 figures show that both Coca-Cola and Diet Coke now outsell Irn-Bru. In Peru, the native Inca Kola has been more popular than Coca-Cola, which prompted Coca-Cola to enter in negotiations with the soft drink's company and buy 50% of its stakes. In Japan, the best selling soft drink is not cola, as (canned) tea and coffee are more popular. As such, The Coca-Cola Company's best selling brand there is not Coca-Cola, but Georgia. On July 6, 2006, a Coca-Cola employee and two other people were arrested and charged with trying to sell trade secrets information to the soft drink maker's competitor, PepsiCo for $1.5 million. The recipe for Coca-Cola, perhaps the company's most closely guarded secret, was never in jeopardy. Instead, the information was related to a new beverage in development. CocaCola executives verified that the documents were valid and proprietary. At least one glass vial containing a sample of a new drink was offered for sale, court documents said. The conspiracy was revealed by PepsiCo, which notified the authorities when they were approached by the conspirators. The company announced a new "negative calorie" green tea drink, Enviga, in 2006, along with trying coffee retail concepts Far Coast and Chaqwa. On May 25, 2007, Coca-Cola announced it would purchase Glaceau, a maker of flavored vitamin-enhanced drinks (vitamin water), flavored waters, and Burn energy drinks, for $4.1 billion in cash. On September 3, 2008, Coca-Cola announced its intention to make cash offers to purchase China Huiyuan Juice Group Limited (which has a 42% share of the Chinese pure fruit juice market) for US$2.4bn (HK$12.20 per share). China's ministry of commerce blocked the deal on March 18, 2009, arguing that the deal would hurt small local juice companies, could have pushed up juice market prices and limited consumers choices. In October 2009, Coca-Cola revealed its new 90-calorie mini can that holds 7.5 fluid ounces.[54] The first shipments are expected to reach the New York City and Washington D.C. markets in December 2009 and nationwide by March 2010.

In November 2011 for the Winter Holidays, Coca-Cola revealed a white can that contained regular Coke instead of Diet Coke, but it was quickly withdrawn only a month after release due to consumer complaints about the similar look to the silver cans commonly used for Diet Coke. There were also complaints about deviating from the traditional red color of Coca-Cola cans. Coca-Cola operates a soft drink themed tourist attraction in downtown Atlanta, Ga; the "World of Coca-Cola" is a multi-storied exhibition of the many flavors sold by the company as well as a museum to the history of the company.

3.4 Distribution network

Distribution strategy of Coca- Cola 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 owns its anchor bottler in North America, Coca-Cola Refreshments. The Coca-Cola Company is headquartered in Atlanta, Georgia. Its stock is listed on the NYSE and is part of DJIA, S&P 500 Index, the Russell 1000 Index and the Russell 1000 Growth Stock Index. Its current chairman and CEO is Muhtar Kent.

Coca Cola Company makes two types of selling 1)Direct selling = In direct selling they supply their products in shops by using their own transports. They have almost 450 vehicles to supply their bottles. In this type of selling company have more profit margin.

2)Indirect selling = They have their whole sellers and agencies to cover all area. Because it is very difficult for them to cover all area of Pakistan by their own so they have so many whole sellers and agencies to assure their customers for availability of coca cola products.

Objectives: A firms distribution objectives will ultimately be highly relatedsome will enhance

each other while others will compete. For example, as we have discussed, more exclusive and higher service distribution will generally entail less intensity and lesser reach. Cost has to be traded off against speed of delivery and intensity (it is much more expensive to have a product available in convenience stores than in supermarkets, for example).

Narrow vs. wide reach: The extent to which a firm should seek narrow (exclusive) vs. wide (intense) distribution depends on a number of factors. One issue is the consumers likelihood of switching and willingness to search. For example, most consumers will switch soft drink brands rather than walking from a vending machine to a convenience store several blocks away, so intensity of distribution is essential here. However, for sewing machines, consumers will expect to travel at least to a department or discount store, and premium brands may have more credibility if they are carried only in full service specialty stores. Retailers involved in a more exclusive distribution arrangement are likely to be more loyal i.e., they will tend to Recommend the product to the customer and thus sell large quantities; Carry larger inventories and selections; Provide more services Thus, for example, Compaq in its early history instituted a policy that all computers must be purchased through a dealer. On the surface, Compaq passed up the opportunity to sell large numbers of computers directly to large firms without sharing the profits with dealers. On the other hand, dealers were more likely to recommend Compaq since they knew that consumers would be buying these from dealers. When customers came in asking for IBMs, the dealers were more likely to indicate that if they really wanted those, they could have themBut first, lets show you how you will get much better value with a Compaq.

Distribution opportunities: Distribution provides a number of opportunities for the marketer that may normally be associated with other elements of the marketing mix. For example, for a cost, the firm can promote its objective by such activities as in-store demonstrations/samples and special placement (for which the retailer is often paid). Placement is also an opportunity for promotione.g., airlines know that they, as prestige accounts, can get verygood deals from soft drink makers who are eager to have their products offered on the airlines. Similarly, it may

be useful to give away, or sell at low prices, certain premiums (e.g., T-shirts or cups with the corporate logo.) It may even be possible to have advertisements printed on the retailers bags (e.g., Got milk?) Other opportunities involve parallel distribution (e.g., having products sold both through conventional channels and through the Internet or factory outlet stores). Partnerships and joint promotions may involve distribution (e.g., Burger King sells clearly branded Hershey pies). Deciding on a strategy. In view of the need for markets to be balanced, the same distribution strategy is unlikely to be successful for each firm. The question, then, is exactly which strategy should one use? It may not be obvious whether higher margins in a selective distribution setting will compensate for smaller unit sales. Here, various research tools are useful. In focus groups, it is possible to assess what consumers are looking for an which attributes are more important. Scanner data, indicating how frequently various products are purchased and items whose sales correlate with each other may suggest the best placement strategies. It may also, to the extent ethically possible, be useful to observe consumers in the field using products and making purchase decisions. Here, one can observe factors such as : (1) how much time is devoted to selecting a product in a given category, (2) how many products are compared, (3) what different kinds of products are compared or are substitutes (e.g., frozen yogurt vs. cookies in a mall), (4) what are complementing products that may cue the purchase of others if placed nearby. Channel membersboth wholesalers and retailersmay have valuable information, but their comments should be viewed with suspicion as they have their own agendas and may distort information.

Outsourcing distribution and manufacturing: Coca-Cola India minimised its capital needs by meeting new manufacturing capacity needs throughexternal co-packers, outsourcing its distribution and meeting its in-market-refrigeration and cooling needs by giving incentives to retailers to self-fund the same through its Own Your Fridge Scheme. Today, the company has an extensive rural and urban distribution network. Coca-Cola adopts a hub and spoke format distribution network ensuring that large loads travel

longer distances and short loads travel short distances. The company has increased its village penetration from 9 per cent in 2000 to 28 per cent in 2004 and covers approximately 175,000 villages today. Rural India now accounts for 30 per cent of Coca-Colas sales volumes.

Expanding its distribution networks: The company had also decided to expand its retail network by 18 per cent during the financial year 2004-05 taking the total number of retailers to 1.3 million across the country.

Other Distribution Strategies: 1) Coca-Cola Cricket 2) Coca-Cola Concerts 3) Coca-Cola Food Mela 4) Coca-Cola Basant Festival 5) Coca-Cola GO-RED 6) Coca-Cola Party in a Park 7) Coca-Cola Shopping Festival 8) Coca-Cola Ramzan Campaign 9) Coca Cola TV Mazza 10) Coca-Cola & Mc Donald's 11) Fanta & Sprite Launched 12) Diet Coke SUGGESTIONS1.The company must have a super stockiest in Belgaum city so that this cancater not only the need of the Belgaum market but also the surroundingsplaces.2.The company has to convert Pepsi outlets into coke outlets by giving them promotions like schemes, gifts, proper supply.3.The company has to start its plant in Hospet as soon as possible so that therewill be no problem to the distributors as well as the retailers with respect tothe stock.4.The company has to put on their best efforts to convert the76% shared outletsinto coke monopoly outlets by giving promotional activities and also by on timedelivery of stocks which plays a very important role.5.36% of the retailers expect alternative days visits instead of daily visits, theoutlets which are non potential outlets expect the distributor to visit

once aweek therefore the company has to supply accordingly.6.To make the satisfaction level of the retailers to 100% the company has tosupply properly to the remaining 34% outlets surveyed. CONCLUSIONDistribution Channel plays a very important role especially with respect to the softdrink industry because if the product is not available on time the consumes will switchon to other brands and the company will loose its market share and hence an effectivedistribution channel is the need of this industry.The distribution channel of coca cola company is effective

3.5 SWOT Analysis

Strengths 1. The best global brand in the world in terms of value. According to Interbrand, The Coca Cola Company is the most valued ($77,839 billion) brand in the world. 2. Worlds largest market share in beverage. Coca Cola holds the largest beverage market share in the world (about 40%). 3. Strong marketing and advertising. Coca Cola advertising expenses accounted for more than $3 billion in 2012 and increased firms sales and brand recognition. 4. Most extensive beverage distribution channel. Coca Cola serves more than 200 countries and more than 1.7 billion servings a day. 5. Customer loyalty. The firm enjoys having one of the most loyal consumer groups. 6. Bargaining power over suppliers. The Coca Cola Company is the largest beverage producer in the world and exerts significant power over its suppliers to receive the lowest price available from them. 7. Corporate Social Responsibility (CSR). Coca Cola is increasingly focusing on CSR programs, such as recycling/packaging, energy conservation/climate change, active healthy living, water stewardship and many others, which boosts companys social image and result in competitive advantage over competitors. Weaknesses 1. Significant focus on carbonated drinks. The business is still focusing on selling Coke, Fanta, Sprite and other carbonated drinks. This strategy works in short term as consumption of carbonated drinks will grow in emerging economies but it will prove weak as the world is fighting obesity and is moving towards consuming healthier food and drinks. 2. Undiversified product portfolio. Unlike most companys competitors, Coca Cola is still focusing only on selling beverage, which puts the firm at disadvantage. The overall consumption of soft drinks is stagnating and Coca Cola Company will find it hard to penetrate to other markets (selling food or snacks) when it will have to sustain current level of growth.

3. High debt level due to acquisitions. Nearly $8 billion of debt acquired from CCEs acquisition significantly increased Coca Cola's debt level, interest rates and borrowing costs. 4. Negative publicity. The firm is often criticized for high water consumption in water scarce regions and using harmful ingredients to produce its drinks. 5. Brand failures or many brands with insignificant amount of revenues. Coca Cola currently sells more than 500 brands but only few of the brands result in more than $1 billion sales. Plus, the firms success of introducing new drinks is weak. Many of its introduction result in failures, for example, C2 drink. Opportunities 1. Bottled water consumption growth. Consumption of bottled water is expected to grow both in US and the rest of the world. 2. Increasing demand for healthy food and beverages. Due to many programs to fight obesity, demand for healthy food and beverages has increased drastically. The Coca Cola Company has an opportunity to further expand its product range with drinks that have low amount of sugar and calories. 3. Growing beverages consumption in emerging markets. Consumption of soft drinks is still significantly growing in emerging markets, especially BRIC countries, where Coca Cola could increase and maintain its beverages market share. 4. Growth through acquisitions. Coca Cola will find it hard to keep current growth levels and will find it hard to penetrate new markets with its existing product portfolio. All this can be done more easily through acquiring other companies.

Threats 1. Changes in consumer tastes. Consumers around the world become more health conscious and reduce their consumption of carbonated drinks, drinks that have large amounts of sugar, calories and fat. This is the most serious threat as Coca Cola is mainly serving carbonated drinks. 2. Water scarcity. Water is becoming scarcer around the world and increases both in cost and criticism for Coca Cola over the large amounts of water used in production. 3. Strong dollar. More than 60% of The Coca Cola Company income is from outside US. Due to strong dollar performance against other currencies firms overall income may fall. 4. Legal requirements to disclose negative information on product labels. Some Coca Colas carbonated drinks have adverse health consequences. For this reason, many governments consider to pass legislation that requires disclosing such information on product labels. Products containing such information may be perceived negatively and lose its customers. 5. Decreasing gross profit and net profit margins. Coca Colas gross profit and net profit margin was decreasing over the past few years and may continue to decrease due to higher water and other raw material costs.

6. Competition from PepsiCo. PepsiCo is fiercely competing with Coca Cola over market share in BRIC countries, especially India. 7. Saturated carbonated drinks market. The business significantly relies on the carbonated drinks sales, which is a threat for the Coca Cola as the market of carbonated drinks is not growing or even declining in the world.

3.6 Competitors Informtion

Pepsi, the flagship product of PepsiCo, The Coca-Cola Company's main rival in the soft drink industry, is usually second to Coke in sales, and outsells Coca-Cola in some markets. RC Cola, now owned by the Dr Pepper Snapple Group, the third largest soft drink manufacturer, is also widely available. Around the world, many local brands compete with Coke. In South and Central America Kola Real, known as Big Cola in Mexico, is a growing competitor to Coca-Cola. On the French island of Corsica, Corsica Cola, made by brewers of the local Pietra beer, is a growing competitor to Coca-Cola. In the French region of Brittany, Breizh Cola is available. In Peru, Inca Kola outsells Coca-Cola, which led The Coca-Cola Company to purchase the brand in 1999. In Sweden, Julmust outsells Coca-Cola during the Christmas season. In Scotland, the locally produced IrnBru was more popular than Coca-Cola until 2005, when Coca-Cola and Diet Coke began to outpace its sales. In India, Coca-Cola ranked third behind the leader, Pepsi-Cola, and local drink Thums Up. The Coca-Cola Company purchased Thums Up in 1993. As of 2004, Coca-Cola held a 60.9% market-share in India.Tropicola, a domestic drink, is served in Cuba instead of Coca-Cola, due to a United States embargo. French brand Mecca Cola and British brand Qibla Cola are competitors to Coca-Cola in the Middle East. In Turkey, Cola Turka, in Iran and the Middle East, ZamZam Cola and Parsi Cola, in some parts of China, China Cola, in Slovenia, Cockta and the inexpensive Mercator Cola, sold only in the country's biggest supermarket chain, Mercator, are some of the brand's competitors. Classiko Cola, made by Tiko Group, the largest manufacturing company in Madagascar, is a serious competitor to Coca-Cola in many regions. Laranjada is the top-selling soft drink on Madeira.

3.7 Market share and growth rate

ATLANTA, Jul 16, 2013 (BUSINESS WIRE) -- --Global volume and value share gains in total nonalcoholic ready-to-drink beverages as well as sparkling and still beverages --Global brand Coca-Cola volume growth of 1% in the second quarter; 2% growth year to date --Second Quarter and Year-to-Date 2013 Highlights --Second quarter volume grew 1% and year-to-date volume grew 3%. Coca-Cola Americas grew 1% and Coca-Cola International grew 2% in the quarter. --Solid global volume and value share gains achieved in the quarter in total nonalcoholic readyto-drink (NARTD) beverages as well as global volume and value share gains in sparkling and still beverages. --Reported net revenues declined 3% in the second quarter and 2% year to date. Excluding the impact of structural changes, comparable currency neutral net revenues grew 2% in both the quarter and year to date. --Reported operating income declined 2% in the second quarter and 3% year to date. Excluding the impact of structural changes, comparable currency neutral operating income grew 4% in the quarter and 5% year to date. --Currency was a 2% headwind on comparable net revenues and a 3% headwind on comparable operating income in the quarter. --Second quarter reported EPS was $0.59, down 3% and comparable EPS was $0.63, up 4%, including an approximate 2% currency headwind. Year-to-date reported EPS was $0.98, down 7% and comparable EPS was $1.09, up 4% despite two fewer selling days in the first half of 2013 and an approximate 4% currency headwind.

The Coca-Cola Company today reported second quarter and year-to-date 2013 results. Muhtar Kent, Chairman and Chief Executive Officer of The Coca-Cola Company said, "Our second quarter volume results came in below our expectations, reflecting an ongoing challenging global macroeconomic environment and unusually poor weather conditions in the quarter. While we are not happy with our performance, we did gain global volume and value share in total nonalcoholic ready-to-drink beverages as well as in sparkling and still beverages in the quarter. Despite the headwinds in the quarter, we are committed to improving upon our results, with current dynamics leading us to believe that our performance will be better in the second half of the year. We remain confident in our 2020 Vision and our system's ability to execute with precision around the world. In this context, we remain firmly focused on investing alongside our global bottling partners to strengthen our system for the future, to deliver the brands and beverages that consumers love and to achieve our long-term performance goals." PERFORMANCE HIGHLIGHTS The Coca-Cola Company reported worldwide volume growth of 1% in the second quarter and 3% year to date, and grew global volume and value share in the quarter in total NARTD beverages as well as in both sparkling and still beverages. Volume growth in the quarter was below the Company's expectations due to a confluence of factors that collectively made for a challenging second quarter. Slow economies in Europe, Asia and Latin America, and historically wet and cold weather conditions across multiple regions impacted consumer spending and, consequently, overall NARTD beverage industry performance. Coca-Cola Americas grew volume 1% in the quarter and 2% year to date, with North America volume down 1% and Latin America volume up 2% in the quarter. Coca-Cola International grew volume 2% in the quarter and 4% year to date, with second quarter Eurasia and Africa volume up 9%, Pacific volume up 2% and Europe volume down 4%. Worldwide sparkling beverage volume was even in the quarter and up 2% year to date. Despite unseasonably cold and wet weather and continued volatile macroeconomic conditions in many markets around the world, we grew global volume and value share in sparkling beverages in the quarter, led by marketing campaigns such as "Share a Coke" in Europe and "Coca-Cola Open Summer" in North America. Worldwide brand Coca-Cola volume grew 1% in the quarter and 2% year to date, with growth in the quarter across diverse markets, including Thailand (+24%), India (+18%), Nigeria (+15%), Russia (+11%), Argentina (+7%) and the Philippines (+7%). The Coca-Cola Company was recognized during the quarter with the 2013 Creative Marketer of the Year Award at the Cannes Lions International Festival of Creativity, widely considered to be the world's foremost celebration of creative excellence in brand communications. Worldwide still beverage volume grew 6% in both the quarter and year to date, with solid volume and value share growth across beverage categories, including packaged water, juices and juice drinks and ready-to-drink tea. Excluding the impact of acquired volume, primarily the Aujan partnership in the Eurasia and Africa Group, still beverage volume grew 4% in the quarter. Ready-to-drink tea volume grew 10% in the quarter, with continued strong performance of key brands such as Gold Peak and Honest Tea in North America, Ayataka green tea in Japan

and Fuze Tea across multiple markets worldwide. Packaged water volume grew 6% in the quarter, as we continue to focus on innovative and sustainable packaging and immediate consumption occasions that help drive value share growth ahead of volume share growth. Energy drinks volume grew 5% in the quarter driven by growth across our global portfolio of energy brands. Juices and juice drinks volume grew 4% in the quarter, with growth across all geographic operating group.

3.8 Key challenge/problems facing the organization

there are some problems being faced by a company which affects it is business strategies. It is difficult to know where to begin and isolate the events which shape the business environment. Distribution Coca cola company is facing a problem of distribution, as distributors are expecting more from coco cola to provide an extra distribution channels which could help them to spread their products at large coca cola products are some where not available in rural area due to inefficient distribution system. Investments Coca cola company is now facing a problem regarding investment, like investment in distribution system, to make it efficient. They need investment to encourage retailers to provide space to their products, in the form of providing coolers. Company is not in a situation to provide space to provide it to all its retailing stores while its competitor PEPSI COLA provides it to its distributors to promote his products in the market which is their competitive edge to increase its share in the market. It creates an attraction to its distributors to take its products more to take incentives of special discounts provided by the company to its distributors, wholesalers, and retailers. This is a relatively a long term process to penetrate in the market and gain market share. Single Advertising Platform They have only one advertising platform regarding promotion which is music; on the other hand pepsi has another very important Adverting platform which is cricket. Most of our youngsters are attracted towards it. Low value of share

Coca cola company having a share of about 27% which is lower than its competitors i.e. pepsi having market share of 68% involve in more promotional strategies as compared to coca cola. Fake bottling Fake bottling in Pakistan is one of the major problems being faced by company. This problem not only affects the sale volume and profit margins but also brand value and loyalty of the customers. The profitability which company gain, ultimately that part of gain goes to fake bottle producers, who running their business in the name of company . In India Coca-Cola was the leading brand in India; later, due to FERA (Foreign Exchange Regulation Act), they left India and didnt return till 1993. Coca-Cola had to face many issues regarding its quality, resource exploitation and market exploitation along with price-quality trade-offs. People all over India are challenging Coca-Cola for its abuse of water resource. Coca-Cola had affected both quality and quantity of ground water. Due to its waste extracts, Coca-Cola was criticized for polluting the nearby fresh water and ground water and soil; because of this issue, farmers are suffering from water scarcity. Despite all these social and cultural issues, customers are using Coca-Cola due to its strong brand reputation all over the world. This is because Indians are now using more soft drinks and the youngsters are more in this category. However, with many studies and policy changes, Coca-Cola will be able to establish its brand reputation and increase.

Chapter 4 Relate the topic with the organization

The Coca-Cola Company are to be globally known as a business

One of The Coca-Cola Companys greatest strength lies in the ability to conduct business on a global scale while maintaining a local approach. By contract with The Coca-Cola Company or its local subsidiaries, local businesses are authorized to bottle and sell Company soft drinks within certain territorial boundaries and under conditions that ensure the highest standards of quality and uniformity. The Company takes pride in being a world-wide business that is always local. Bottling plants are, with some exceptions, locally owned and operated by independent business people who are native to the nations in which they are located. Bottlers provide the required capital for investments in land, buildings, machinery, equipment, trucks, bottles and cases. Most supplies are purchased from local sources, often creating new supply industries and areas of employment within local economies. The Company supplies the concentrates and beverage bases used to make its products and provides management assistance to help its bottlers ensure the profitable growth of their businesses. Product manufacturing, quality control, plant and equipment design, marketing and personnel training are just a few of the areas in which the Company shares its expertise. The strong commitment of bottlers to their own profitable volume growth helps to meet the Companys strategic goals and furthers the interests of the world-wide production, distribution and marketing systems. s market share in the near future.

Increasing consumer awareness of the brand

Proper branding can result in higher sales of not only one product, but on other products associated with that brand. For example, if a customer loves Pillsbury biscuits and trusts the brand, he or she is more likely to try other products offered by the company such as chocolate chip cookies. Brand is the personality that identifies a product, service or company (name, term, sign, symbol, or design, or combination of them) and how it relates to key constituencies: customers, staff, partners, investors etc. Some people distinguish the psychological aspect, brand associations like thoughts, feelings, perceptions, images, experiences, beliefs, attitudes, and so on that become linked to the brand, of a brand from the experiential aspect. The experiential aspect consists of the sum of all points of contact with the brand and is known as the brand experience. The brand experience is a brand's action perceived by a person. The psychological aspect, sometimes referred to as the brand image, is a symbolic construct created within the minds of people, consisting of all the information and expectations associated with a product, service or the company(ies) providing them.

People engaged in branding seek to develop or align the expectations behind the brand experience, creating the impression that a brand associated with a product or service has certain qualities or characteristics that make it special or unique. A brand is therefore one of the most valuable elements in an advertising theme, as it demonstrates what the brand owner is able to offer in themarketplace. The art of creating and maintaining a brand is called brand management. Orientation of the whole organization towards its brand is called brand orientation. The brand orientation is developed in responsiveness to market intelligence. Careful brand management seeks to make the product or services relevant to the target audience. Brands should be seen as more than the difference between the actual cost of a product and its selling price - they represent the sum of all valuable qualities of a product to the consumer. A brand which is widely known in the marketplace acquires brand recognition. When brand recognition builds up to a point where a brand enjoys a critical mass of positive sentiment in the marketplace, it is said to have achieved brand franchise. Brand recognition is most successful when people can state a brand without being explicitly exposed to the company's name, but rather through visual signifiers like logos, slogans, and colors. For example, Disney has been successful at branding with their particular script font (originally created for Walt Disney's "signature" logo), which it used in the logo for go.com. Consumers may look on branding as an aspect of products or services, as it often serves to denote a certain attractive quality or characteristic (see also brand promise). From the perspective of brand owners, branded products or services also command higher prices. Where two products resemble each other, but one of the products has no associated branding (such as a generic, storebranded product), people may often select the more expensive branded product on the basis of the quality of the brand or the reputation of the brand owner. Brand awareness Brand awareness refers to customers' ability to recall and recognize the brand under different conditions and link to the brand name, logo, jingles and so on to certain associations in memory. It consists of both brand recognition and brand recall. It helps the customers to understand to which product or service category the particular brand belongs and what products and services are sold under the brand name. It also ensures that customers know which of their needs are satisfied by the brand through its products (Keller). Brand awareness is of critical importance since customers will not consider your brand if they are not aware of it. There are various levels of brand awareness that require different levels and combinations of brand recognition and recall. Top-of-Mind is the goal of most companies. Top-of-mind awareness occurs when your brand is what pops into a consumers mind when asked to name brands in a product category. For example, when someone is asked to name a type of facial tissue, the common answer is Kleenex, which is a top-of-mind brand. Aided Awareness occurs when a consumer is shown or reads a list of brands, and expresses familiarity with your brand only after they hear or see it as a type of memory aide. Strategic Awareness occurs when your brand is not only top-of-mind to consumers, but also has distinctive qualities that stick out to consumers as making it better than the other brands in your market. The distinctions that set your product apart from the competition is also known as the Unique Selling Point or USP. Marketing mix modeling can help marketing leaders optimize how they spend marketing monies to

maximize the impact on Brand Awareness or sales effects. Managing brands for value creation will often involve applyingmarketing mix modeling techniques in conjunction with brand valuation. Brand elements Brands typically are made up of various elements, such as:

Name: The word or words used to identify a company, product, service, or concept. Logo: The visual trademark that identifies the brand. Tagline or Catchphrase: "The Quicker Picker Upper" is associated with Bounty paper towels. "Can you hear me now" is an important part of the Verizon brand. Graphics: The dynamic ribbon is a trademarked part of Coca-Cola's brand. Shapes: The distinctive shapes of the Coca-Cola bottle and of the Volkswagen Beetle are trademarked elements of those brands. Colors: Owens-Corning is the only brand of fiberglass insulation that can be pink. Sounds: A unique tune or set of notes can denote a brand. NBC's chimes are a famous example. Scents: The rose-jasmine-musk scent of Chanel No. 5 is trademarked. Tastes: Kentucky Fried Chicken has trademarked its special recipe of eleven herbs and spices for fried chicken. Movements: Lamborghini has trademarked the upward motion of its car doors. Customer relationship management

Presenting the consumer with enough product background information to aid them in making better choices when purchasing foods or beverages

Visitors to the World of Coca-Cola in Atlanta have the opportunity to sample over 60 Coca-Cola beverages from around the world in the ever-popular Taste It! beverage lounge. Guests can also try their hand at "inventing" new beverages by mixing flavor combinations using the new interactive Coca-Cola Freestyle fountain dispenser. The touch-screen machine has the capacity to dispense over 100 regular and low-calorie beverage brands in multiple taste combinations. Take a virtual tour of Taste It! now!

More and more people are choosing low-calorie foods and beverages as a way to balance caloric intake with physical activity. The Coca-Cola Company has a successful trackrecord of product innovation in the low-calorie beverage category, with the introduction of Tab in 1963 and Diet Coke in 1982. By 1986, Diet Coke became the world's topselling diet cola and continues to uphold that title today. Diet Coke's success led to the introduction of many flavor extensions, such as Diet Coke with Lemon, Diet Vanilla Coke, Diet Cherry Coke, Diet Coke with Lime and most recently, Diet Coke with Splenda. Recognizing that some consumers want a no-calorie beverage with the distinctive taste of the original Coca-Cola brand, Coca-Cola Zero was introduced in 2005. Created to appeal to young adults, the launch of Coca-Cola Zero was one of the most successful launches in The Coca-Cola Company's history. The beverage is now available in more than 140 countries. Of course, it all started with the original Coca-Cola brand beverage in 1886. Since that time, there has been much speculation and rumor about what exactly is contained in the Secret Formula of the world's best known beverage. At the World of Coca-Cola, you can enjoy a 4-D movie experience about the quest to uncover the Secret Formula of CocaCola. Coca-Cola remains committed to paying attention to consumers' changing needs as well as cultural diversity in what people like to drink and how they drink it. That commitment is evident in initiatives from a group dedicated to identifying emerging brands to innovation in packaging and recycling programs. Among the newest choices for consumers is the mini can. At 7.5 ounces and only 90 calories, it is a refreshing alternative for consumers who are conscious of portion and calorie control. Another new choice is Sprite Green, the first naturally sweetened, reduced calorie sparkling beverage in the U.S. made with TRUVIA natural sweetener. Each 8.5-ounce serving has 50 calories and 5% lemon juice. Lastly, in order to help consumers make more informed decisions about their beverage selections, The CocaCola Company has added calorie information to the front of product packaging.

The Coca-Cola Company cares about the health of consumers as well as the health of the planet. As part of a quest to make every plastic bottle 100% renewable and recyclable, the PlantBottle was introduced in 2009. PlantBottle packaging is a redesigned PET plastic bottle made from up to 30% renewable plant-based material that is fully recyclable in most communities. This is the only plastic bottle in the marketplace made from plant-based material which helps reduce dependence on non-renewable sources. In the United States, PlantBottle packaging is being used for all Dasani package sizes. The innovative bottle was recently honored with a Greener Package Award. The secondannual Greener Package Awards recognizes innovations that significantly reduce packaging's environmental footprint. PlantBottle also won the DuPont Award for Packaging Innovation and the Design for Recycling Award from the Institute of Scrap Recycling Industries.