Intro

The product was originally born in Atlanta, Georgia, in 1886 where Dr. John Smith Pemberton,
a local pharmacist, produced a caramel-colored liquid, and when it was done, carried a jug of the
new product down the street to Jacobs pharmacy. Here, the mixture was combined with
carbonated water and sampled by customers who all agreed this new drink was something
special. So Jacobs pharmacy put it on sale and sold it for 5 cents a glass.
Later Dr. Pembertons partner and bookkeeper Frank Robinson invented the name and the
lettering which has been written the same way ever since.
Today, the Coca-Cola Company has been in business for 125 years, employs 139,600 people, and
sells 1.6 billion beverages each day in more than 200 countries.

Coca-Cola history began in 1886 when the curiosity of an Atlanta pharmacist, Dr. John S.
Pemberton, led him to create a distinctive tasting soft drink that could be sold at soda
fountains. He created a flavored syrup, took it to his neighborhood pharmacy, where it was
mixed with carbonated water and deemed excellent by those who sampled it. Dr.
Pembertons partner and bookkeeper, Frank M. Robinson, is credited with naming the
beverage Coca-Cola as well as designing the trademarked, distinct script, still used today.
Marketing and Product Objectives
The coca cola company is successful in selling many of its products, however, there
still be aspects that can be further improved. The first of these areas is that there
are many products that are not as well known as the major brands of beverages,
the well know Coca Cola, Sprite, Nestea, and Powerade. One of our objectives is to
promote the lesser-known products under Coca-Cola Enterprises to be more
successful. In the next two years (by 2008), it is plan that an 100% sales increase
will occur in such products as, Full Throttle, Hi-C, and Disneys Hundred Acre
Woods. In order to achieve these goals we plan to focus more attention to the
advertising of such products. The result of this will be an increase in sales for CocaCola Enterprises, an increase in Coca Colas market share, as well as a decrease in
sales for other competitors. A second objective is to reposition Coca-Cola to be a
healthier product. This is because consumers today are looking to lead healthier
lives, choosing substitution goods. Coca Cola has many different drinks, such as
Minute Maid, and many different types of fruit juice beverages. These products
contain many vital nutrients, such as Vitamin C. They have also received a health
check from the Heart and Stroke Foundation, which the Coca Cola Company
supports financially. It is planned for such information to be released to the public
and by 2008, Coca Cola Enterprises would be repositioned as a healthier company
in the consumers minds. It is planned that by 2008, a research conducted regarding

favourite beverages will reveal that Coca Cola Enterprises products rank number
one among the vast majority of consumers

Swot analysis of coca cola

Strengths in the SWOT of coca cola
1.

Brand Equity Interbrand in 2011 awarded Coca cola with the highest
brand equity award. Coca cola with its vast global presence and unique
brand identity is definitely one of the costliest brands with the highest brand
equity.

2.

Company valuation One of the most valuable companies in the world,

Coca cola is valued around 79.2 billion dollars. This valuation includes the
brand value, the numerous factories and assets spread out across the world
and the complete operations cost and profit of Coca cola.

3.

Vast global presence Coca cola is present in 200 countries across the
world. Chances are, any country that you go to, you will find coca cola
present in that market. This vast global presence of coca cola has also
contributed to the building of the mammoth brand name.

4.

Largest market share There are only 2 Big competitors in the beverage
segment Pepsi and Coca cola. Out of these 2, coca cola is the clear
winner and hence has the largest market share. Amongst all beverages,
Coke, Thums up, Sprite, Diet coke, Fanta, Limca and Maaza are the growth
drivers for Coca Cola.

5.

Fantastic marketing strategies Coca cola unlike Pepsi always tries to

win peoples heart. Where Pepsis target is continuously changing, and is
targeted towards youngsters, Coca cola targets people of all ages. The
targeting is also done by celebrities who are well liked for example
Amitabh Bacchan, Sachin tendulkar, Aishwarya Rai, Aamir Khan etc

6.

Customer Loyalty With such strong products, it is natural that Coca cola
has a lot of customer loyalty. The products mentioned above like Coca cola
and Fanta have a huge fan following. People will prefer these soft drinks
over others. Because of the good taste of Coca cola, finding substitutes
becomes difficult for the customer.

7.

Distribution network Coca cola has the largest distribution network

because of the demand in the market for its products. On the other hand,
due to this successful distribution network, Coca cola has been able to
command such a high market presence.

Weaknesses in the SWOT of coca cola

1.

Competition with Pepsi Pepsi is a thorn in the flesh for Coca cola.
Coca cola would have been the clear market leader had it not been for
Pepsi. The competition in these two brands is immense and we dont think
Pepsi will give up so easily.

2.

Product Diversification is low Where Pepsi has made a smart move

and diversified into the snacks segment with products like Lays and
Kurkure, Coca cola is missing from that segment. The segment is also a
good revenue driver for Pepsi and had Coca cola been present in this
segment, these products would have been an additional revenue driver for
the company.

3.

Absence in health beverages If you watch the news, you would know
that obesity is a major problem affecting people nowadays. The business
environment is changing and people are taking measures to ensure that
they are not obese. Carbonated beverages are one of the major reasons for
fat intake and Coca cola is the largest manufacturer of Carbonated
beverages. The inference is that the consumption of beverages in
developed countries might go down as people will prefer a healthy
alternative.

4.

Water management Coca cola has faced flak in the past due to its water
management issues. Several groups have raised lawsuits in the name of
Coca cola because of their vast consumption of water even in water scarce
regions. At the same time, people have also blamed Coca cola for mixing
pesticides in the water to clear contaminants. Thus water management
needs to be better for Coca cola.

Oppurtunities of coca cola

1.

Diversification Diversification in the health and food business will

improve the offerings of Coca cola to their customers. This will also ensure
that they get better revenue from existing customers by cross selling their
products. The supply chain which is distributing their beverages can also
distribute these snacks thereby sharing the load of Supply chain costs.

2.

Developing nations Although developed nations have a high presence

of Coca cola, these countries are slowly moving towards healthy beverages.
However developing countries are still being introduced to the delight of
carbonated drinks and soft drinks. Countries like India which are developing
and have a hot summer, find the consumption of cold drinks almost doubled

during summers. Thus the higher consumption in developing business

environment can be a good opportunity to capitalize for Coca cola.
3.

Packaged drinking water With hygiene becoming a major factor in the

consumption of water, Packaged drinking water has found its way into
peoples mind. Coca cola has a presence in the packed drinking water
segment though Kinley. Although Kinleys expansion is slow as of now,
Kinley has a huge potential of expansion. Thus Coca cola as a company
should focus on the expansion of Kinley as a brand and take it up to Bisleri
s level of trust.

4.

Supply chain improvement Supply chain can be a major cost sink hole
with the transportation costs always rising. Coca colas complete business
is based on transportation and distribution. There will always be possible
improvements in this area. Thus Coca cola should keep strict watch on its
Supply chain and keep improving to bring the cost down.

5.

Market the lesser selling products In the product portfolio of Coca

cola, there are several products which have not found acceptance in the
market. Coca Cola needs to concentrate on the marketing of these products
as well. It is understood that Coca cola has made several expenses to
launch these products. Thus, the marketing and subsequent rise of sale of
these products will help revenue of Coca cola.

Threats in the SWOT of coca cola

1.

Raw material sourcing Water is the only threat to Coca cola. The
weakness of Coca cola was the suspected use of pesticides or vast
consumption of water. However, the threat here is that water scarcity is on
the rise. With the climate changing, and regions of various countries facing
scarcity of water, sooner or later someone might raise fingers on beverage
companies. Thus, Water sourcing is an axe which can fall anytime on the
head of Coca cola. If water is limited or rationed, Coca cola can experience
a major downfall in their revenue and capacity of distribution. The same can
affect its arch rival Pepsi as well.

2.

Indirect competitors Coffee chains like Starbucks, Caf coffee day,

Costa coffee are on the rise. These chains offer a healthy competition to
Coca colas carbonated drinks. They might not be a big competition for
Coke, but they do give a dent to its beverage market. Similarly, health drinks
like Real and Tropicana as well as energy drinks like Red bull and Gatorade
are stealing away the market share indirectly.