Nimisha Singh (PGFB1328)

Paridhi Bathwal (PGFB1329)

Piyush Sharma (PGFB1330)
Pooja Saraf (PGFB1331)
Pratyush Sahu (PGFB1332)

COMPANY OVERVIEW
Type

Soft Drink (Cola)

Manufacturer

The Coca- Cola Company

Founder (s)

Asa Griggs Candler & John S. Pemberton

Headquarters

Atlanta, Georgia, U.S.

Introduced

1886

Key People

Muhtar Kent (Chairman & CEO)

Ahmet Bozer (Exec. Vice Pres.)

Area Served

Worldwide

Flavors

Cola, Cola Green Tea, Cola Lemon, Cola Lemon Lime,

Cola Lime, Cola Orange and Cola Raspberry.

Employees

130600

Revenue

US$46.854 billion (2013)

HISTORY OF COCA COLA

Coca-Cola was first introduced by John
Smyth Pemberton
Coca-Cola was first sold to the public in
Atlanta at Jacobs Pharmacy
Only 9 servings of the soft drink were sold
each day
Sales for the first year were only $50
Today it has 3000 brands-200 nations

OBJECTIVES
To know the core values, vision and
mission
To
understand the internal and
external environment in which Coca
Cola operates.
To understand the future prospects
of different products
To identify and characterize the
different growth strategies used by
Coca Cola
To
know about
the Coca-Cola
Companys
strategies management
process

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.

MISSION
To refresh the world in body, mind and spirit
To inspire moments of optimism through our brands and our actions
To create value and make a difference everywhere we engage.

VALUES

Leadership: The courage to shape a better future

Collaboration: Leverage collective genius
Integrity: Be real
Accountability: If it is to be, it's up to me
Passion: Committed in heart and mind
Diversity: As inclusive as our brands
Quality: What we do, we do well

Product Portfolio of CCI

others
15%

coca cola
17%

kinley
11%
sprite
10%

thums up
36%
limca
11%

Coca-Cola Bottles
1894 was the first time Coca-Cola was bottled

1894- early 1900s

1905-1916

1915- today

Today

EXTERNAL ENVIRONMENT
POLITICAL
ANALYSIS
ENVIRONMENTAL
ANALYSIS

ECONOMIC
ANALYSIS
PESTLE
ANALYSIS
SOCIOCULTURAL
ANALYSIS

LEGAL
ANALYSIS
TECHNOLOGY

ANLYSIS

 Changes in laws and

regulations
Changes in the non-alcoholic
business environment
Political conditions including
civil unrest, government
changes
Their ability to penetrate
developing and emerging
markets, which also depends
on economic and political
conditions

POLITICAL
ANALYSIS

After the attacks on

September 11, 2001, Coca
Cola sales were down.
Consumers are now
resuming their normal habits
The Federal Reserve cut the
interest rate to recover from
recession & this excited
consumer demand . CocaCola borrowed money for
investing in other products
The non-alcoholic beverage
industry has high sales in
countries outside the U.S.

ECONOMIC
ANALYSIS

Many U.S. Citizens are

practicing healthier
lifestyles. Many are
switching to bottled water
and diet colas instead of
beer and other alcoholic
beverages.

Time management has

increased .The need for
bottled water and other
more convenient and
healthy products are in
important in the average
day-to-day life.

SOCIOCULTURAL
ANALYSIS

 The new technology of internet

and television which use special
effects for advertising through
media.
Introduction of cans and plastic
bottles have increased sales for
coca-cola as these are easier to
carry and you can bin them
once used.

There has been introduction of

new machineries all the time.
The Wakefield factory has the
technology to produce cans of
coca-cola faster than bullets
from a machine gun.

TECHNOLOGY
ANALYSIS

Soft drink Interbrand competition

act of 1980 secured the right of
concentrate
Producers (cps) to grant exclusive
territories to bottlers
The company was granted a
trademark for the name coke in
1945.
Pressure from the scientific
community for the FDA to enforce
caffeine labels warning of the
dangers of caffeine consumption

Educated people belonging to

upper and middle-income
groups also commonly use
Coca-Cola.
Major emphasis of Coca-Cola
is to attract teenagers.
Diet Coca-Cola offered by
Company is Very popular
among diabetic patients.
Consumers from the ages of
37 to 55 are also increasingly
concerned with nutrition.

Obstacles in international
operations included regulations,
price controls, advertising
restrictions and lack of
infrastructure

LEGAL
ANALYSIS

DEMOGRAPHIC
ANALYSIS

INDUSTRY ANALYSIS
The food and beverage industry encompasses harvesting,
processing, milling, packaging, transport and distribution of
products to consumers.
The needs that customer might be seeking to satisfy are:
Physiological: the need of special food items
Economic: the need for good value for the price paid
Social: a friendly atmosphere, to express feelings frankly
Psychological: the need for enhancement of selfesteem
Convenience: the desire for someone else to do the work.

PORTERs FIVE FORCEs MODEL

Potential
entrants
Threat of
new entrants
Bargaining power
of suppliers

Industry competitors

Suppliers

Buyers
Rivalry among
existing firms

Threat of
substitutes

Substitute
products

Bargaining power
of buyers

VRIN

STRATEGIES

Differentiated Marketing
Customer satisfaction
Celebrity endorsement
Reasonably priced
Consumer connecting advertisements
Availability in every local market
Advertising strategy
Horizontal integration strategy
Forward integration strategy
Intensive strategies
Market penetration
Market development
Product development

COMPETITORS

Competitors Analysis
Competitors: PepsiCo, Parle Agro Products
Pepsi gives tough fight with almost similar
investment, advertisement, Strategies and
Products
Parle resurges with refreshing drinks as Appy Fizz,
Fruity, LMN
PepsiCo also has a snack product line including
Lays, Cheetos and Quaker OATs
PepsiCo provide carbonated drinks, Fruit Drinks
and Packaged Drinking Water.

Market Share

28%

34%

Coca Cola
PepsiCo Inc.
Parle Bisleri Ltd.
Other

14%
24%

STRENGTHS

- Strong brand image

- Financially stable
-Strong distribution channel
-Heavy promotional
activities
-70% revenue-outside USA

WEAKNESS

-Health care issues.

-Product offering restricted to
beverages
-Inability to launch new
product.

OPPORTUNITIES

- Large domestic market

-Export potential
-- Alliances and Merges

THREATS

- Changing consumers
preference
-legal issues
-competition (Pepsi)
-Large number of substitutes
- Increased prices of raw
materials

SWOT
ST
Strengths

ST

1. Create a line of energy drinks to meet a

growing demand of those products. (S8,
S9, S10, O1, O9)
2. Increase marketing in Latin America.
(S8, S9, S10, O6, O7, O9)

WO
1. Increase sports drink product
sales through sponsorship of
collegiate sports. (W2, W4, O1, O6,
O9)

1. Diversify beverage line by offering

alcoholic beverages. (S1, S8, S9, T5)

2. Increase marketing in Europe.

(W1, O4, O6)

2. Increase R&D spending to research

production methods to ensure that
we are utilizing resources in the most
efficient manner. (S1, S10, T3)

WT

Threats

Opportunities

1.Create a lower calorie sports drink line to

promote healthy drinking habits while still
providing the essential electrolyte balance.
(W2, W4, T1, T2)
2. Diversify products by entering the
healthy snack/snack food market. (W3, T2)

3. Take advantage of the increasing

demand for bottled water by
creating flavored water drops. (W2,
O3, O6, O9)

Weaknesses

CPM

IFE MATRIX
Strengths

Weight

Rating

Strong brand
Strong marketing and advertising of
products around globe
Products are globally available

0.09 (8%)
0.07 (7%)

4
4

Weighted
Score
0.36
0.28

0.10 (10%)

0.40

Healthy financial position

0.08 (8%)

0.24

Brand equity
Competent workforce
Wide variety of products

0.07 (7%)
0.05 (5%)
0.05 (5%)

4
3
3

0.28
0.15
0.15

Weaknesses
High debts
Health Issues
Some products have low sales

0.10 (10%)
0.10 (10%)
0.09 (9%)

2
1
2

0.20
0.10
0.18

Weak image in India

Negative publicity
Taste differentiation
Total Weighted Score

0.06 (6%)
0.10 (10%)
0.05 (5%)
1.0(100%)

2
1
1

0.12
0.10
0.05
2.65

EFE MATRIX
External Strategic Factor

Weight

Rating

Weighted
Score

OPPORTUNITIES
Strong and diversified product

0.13

0.52

Packaging

0.08

0.32

The acceptance of the new projects in the

company
New technology

0.03

0.12

0.14

0.56

Niche market could be focused.

0.05

0.15

Advertisement of unpopular products

0.03

0.06

Gap between competitors

0.04

0.08

Great number of successful brands

THREATS
Health conscious people

0.14

0.42

0.04

0.16

The factor of lawsuits

0.06

0.24

Falters showing the unhealthy side of the

product
Competitors (Pepsi)

0.09

0.27

0.07

0.28

Economical changes

0.08

0.24

Increase in demand of substitutes.

0.02

0.06

Total Weighted Score

3.48

Comments

Due to the strong and diversified product portfolio the company is not affected by the any new
invention in the market.
The arrangements made by the company relating to the cola packaging are most advantageous for
the company for enhancement in the whole world.
The acceptance of the new projects in the company has been stared in the industrial level that
increases the demand for the companys product.
New technology should be introduced by the company in order to improve the performance and
efficiency of the work.
The company can focus on the niche areas of the market that generates and improves the sales of
the products within the company.
There is an opportunity for the coca cola company to advertise its product that is not much
popular among the customers or the people and it is beneficial for the company to stable their
low profit generating products.
There is the great opportunity for the company to overcome the gap between them and their
competitors.
The coca cola company has lots of brands that continue and pursue it to the great success.
Although the coca cola company is attaining almost about 40 % control over the entire beverage
market but due to the factor of health conscious people attitude the company can be affected
badly and affects the sales of the company.
The factor of lawsuits is also the threat for the company that causes decline in the wealth and
popularity and also affects the sales of the company.
The success and sales of the coca cola company were threaten by the falters showing the
unhealthy side of the product and also the health minister take action as the threat.
The major threat for the company is its competitor especially Pepsi which is selling most similar
product same as the coca cola and also the various sorts of the branded juices, coffee and milk are
threat for the company.
Economical changes and impacts are also playing adverse role in the success of the company and
the growth that is among the sales.
The increase in the demand of the production of the non carbonated products like juices and
nectars etc can affects the growth of the company.
The large numbers of substitutes regarding the companys product are also available in the
market that reduces the demand.

Conclusion
Based on the above calculations it has been concluded that the companys Total Weighted Score is 3.48 which
shows that the company is hugely successful in utilizing its opportunities and minimizing the threats around it.

BCG MATRIX OF COCA-COLA

HIGH

STAR

QUESTION
MARK

CASH
COW

DOG

HIGH

LOW

BUSINESS
GROWTH
RATE

LOW

MARKET SAHRE

PLC

7S FRAMEWORK

 Shared Vision
Double CCs 2010 system revenue by 2020
by developing new beverage products
(NPD)
Meeting evolving customer preferences by
aligning the strategy with their 6P vision.
1.Profit
2.People
3.Portfolio
4.Partners
5.Planet
6.Productivity

 Strategy
Strategy (further divided to 5 types of sub strategies):
Corporate Strategy:
Building of portfolio
Riding on HW trend
Amending of packaging to increase volume per
customer
Assets expansion with China- India focused
approach
Exploiting cost synergies across its production and
bottling facilities thereby ensuring efficiency.
R&C Strategy
Human
Tangible
Good backing of physical assets
Intangible

 Functional Strategy
Marketing Strategy
Talent management Strategy
Production Strategy
Distribution Strategy
Business Strategy
Clearly defined competitors, price-quality points
Adoption of differentiation rather than price
leadership
Operational Strategy
What we are good at doing?
Advantage?
Who will buy it?

 Structure
CC has head office segment responsible for giving CC
overall direction and providing support to the regional structure
The Company operates 5 geographic operating segments or
SBUs as well as the corporate (Head Office) segment Latin
America, pacific, Eurasia & Africa, RU, N.America.
Structure Recognises:
Varying tastes and psychographics, demographics (incomes
and consumption patterns)
Markets at different stages of development.
Style
Culture of Coke forward looking and driven, emphasizing
oneness. One Company. One Team. One Passion.

Staff
Benchmarked attraction and retention
policies against industry
Providing Career development pathways.
Financial rewards of stock ownership at
CC. Encourages employee to build along
with the company
Skill
Shared
Vision
requires
innovative
approaches in reaching the goal
resource commitment towards innovation in
product content