Case: Is COCA-COLA The

Perfect Business ?
Guided by
Presented by
Ms Dhara jain
Monika bhawsar

Ms

What does
the Coca
Cola
Company
Do?

INTRODUCTION
Coca-Cola company - worlds largest leader
in manufacturing, distributing, and promoting
non-alcoholic beverage drinks and syrups.
Invented by - pharmacist John Stith Pemberton (1886).
Logo made by - Frank Mason Robinson
Later Bought by: Asa Candler for $2,300
( man less than a car these days).
range of products are made includes
CocaCola, Diet-Coke, Coke Zero, Sprite and Fanta, fruit
drinks, sports drink Powerade and Schweppes Abbey
Well water etc.

Cocacola family

Fanta
Sprite
Kinley water
Kinley soda
Thumps up
Coca cola
Minute Maid orange
Minute maid numbu fresh
Fresca
Nestea
Limca
Coke diet
Maaza

And
yet were
trulyBusiness
a local business
Coca-Cola:
A Global
with
a Local Reach ; An overview
200+

Countries operates in

300

Franchise bottling partners

400

Number of brands, worldwide

1,000
1,600,000,000

Manufacturing plants
Servings per day

What make them

perfect
business
?
BRIEF POINTS ABOUT CASE STUDY
In 1989, Warren buffet and Charlie Munger thought about making
a non-alcohalic beverage that whole family can enjoy and that can
have widespread appeal for both old and young alike.
All other beverages present in the market at that time are hot but
they make it cold in order to provide relief from climate effects.
They want to generate a lot of repeat business so they want their
customers to have positive condition reflexes after drinking their
product.

 Added sugar for gaining food values well as positive

stimulant.
For extra powerful effects they add caffeine as an additional
stimulant.
Both sugar and caffeine in combine works to give double
effect. Munger call this double effect as a lollapalooza
effect.
They want there product to look exotic so they add coffee in it
which gives drink dark colour.
Added carbonation, a little fizz to give beverage its
appearance and appeal.

Advertisements To associate people and cocacola with happy

times. So they will tend to reach for it whenever they are happy.

Made available in beach, theme parks concert, at supporting events where

people having fun.

They enclose product with bright , upbeat colours.

To minimize capital requirement to invest in bottling plant s and machinery

annual prize promotions are tied to fourth of July.

They started giving incentives and bonuses to bottlers to encourage bottlers

to deliver high quality product at carefully specified price .

 They keep high profit margins, and in order to minimize the

cost of shipping and refrigeration for long distances they
started selling syrups to local bottlers but in order to
safeguard secret ingredients they make it available in
powdered
formula form.

Coca Cola To refresh the World.

mission
To inspire Moments of Optimism.
To Create Value and Make a Difference.
The Coca- Cola Promise says, quite simply, that The
Coca- Cola Company exists to benefit and refresh
everyone who is touched by our business

Coca Cola - Vision

People

Planet
Portfolio
Partners
Profit

 People
Be a great place to work where a
people are inspire to be the best they can
be.
Planet
Be a responsible citizen that makes a
difference by helping built and support.
Portfolio
Bring to the world a portfolio of customer
and supplier, together we create
mutual , enduring value.

 Productivity
Be a highly effective, lean and fast
moving organization.
Partners
Nurture a winning network of customer
and supplier , together we create mutual,
enduring value.
Profit
Maximize long term return to share owner
while being mindful of overall
responsibilities.

SWOT ANALYSIS
Strengths

First movers and social responsibility

Good understanding of need and demand
of market.
Search of scope of improvement in
products.
Strong marketing and advertising
Most extensive beverage distribution
channel
Customer loyalty
High profit margin
Large and growing profits on practically
no tangible investment

Opportunities
Supply chain improvement
Increase demand of packaged drinking
water.
Product diversification
Growth through acquisitions

Weaknesses

Significant focus on carbonated drinks

Undiversified product portfolio
Water management
Negative publicity

Threats
Competition with other non- alcoholic
beverages like pepsi
Changes in consumer preferences
Water scarcity
Legal requirements to disclose negative
information on product labels

sources

The Coca Cola Company (2013). Coca Cola Journey. Available at:
http://www.coca-colacompany.com/
Wikipedia (2013). The Coca-Cola Company. Available at:
http://en.wikipedia.org/wiki/The_Coca-Cola_Company

125 years of
sharing
happieness

Please enjoy cocacola.