Strategic Intent ................................................................................................................................ 1 Mission........................................................................................................................................ 1 Vision 2020 ................................................................................................................................. 1 A Winning Culture...................................................................................................................... 1 Core Values ................................................................................................................................. 2 Business Definition ..................................................................................................................... 2 Customer Groups (who) .......................................................................................................... 2 Customer Function (what) ...................................................................................................... 2 Alternative Technologies (How)............................................................................................. 2 Key Success factors of Coca Cola .............................................................................................. 3 Environmental Analysis .................................................................................................................. 4 SWOT ......................................................................................................................................... 4 Strengths ................................................................................................................................. 4 Weaknesses ............................................................................................................................. 5 Opportunities........................................................................................................................... 6 Threats..................................................................................................................................... 6 Competitor analysis .................................................................................................................... 7 Porters Five forces Model.......................................................................................................... 7 Threat of new competitors ...................................................................................................... 7
Intensity of Competitive Rivalry ............................................................................................ 7 Threat of Substitute Products .................................................................................................. 7 The Bargaining Power of Customers ...................................................................................... 8 The Bargaining Power of the Suppliers .................................................................................. 8 Environmental Appraisal ................................................................................................................ 9 PESTEL Analysis ....................................................................................................................... 9 Political ................................................................................................................................... 9 Economic ................................................................................................................................ 9 Sociological............................................................................................................................. 9 Technological ........................................................................................................................ 10 Legal ..................................................................................................................................... 10 Environmental ....................................................................................................................... 10 Environment Opportunity Threat Profile (ETOP) for SAP ...................................................... 11 Organizational Appraisal .............................................................................................................. 12 Internal Analysis ....................................................................................................................... 12 Porters generic value chain model ............................................................................................ 12 Support Activities ..................................................................................................................... 13 Firm Infrastructure ................................................................................................................ 13 Managerial and administrative support Activities ................................................................ 13 Technology Development ..................................................................................................... 13
Procurement .......................................................................................................................... 13 Primary Activities ..................................................................................................................... 14 Operations ............................................................................................................................. 14 Inbound and Outbound Logistics .......................................................................................... 14 Sales and marketing activities ............................................................................................... 14 VRIO Framework ..................................................................................................................... 14 Organizational Capability Profile for SAP ............................................................................... 15 Organizational Structure ............................................................................................................... 16 Coca Cola International Strategy: ............................................................................................. 16 Roles and responsibilities of Top Functionaries ....................................................................... 17 Corporate Headquarter: ......................................................................................................... 17 Regional Office: .................................................................................................................... 17 Country Subsidiary: .............................................................................................................. 17 Corporate Strategy & Business Level Strategies ...........................Error! Bookmark not defined. Differentiation Strategy (Business Level) .................................Error! Bookmark not defined. Innovation Strategy ....................................................................Error! Bookmark not defined. Globalization Strategy ...............................................................Error! Bookmark not defined. Related Diversification ..............................................................Error! Bookmark not defined. Concentration Strategy...............................................................Error! Bookmark not defined. Cooperation Strategies ...............................................................Error! Bookmark not defined.
Joint Venture: .........................................................................Error! Bookmark not defined. Acquisitions: ..........................................................................Error! Bookmark not defined. Strategic Alliances: ................................................................Error! Bookmark not defined. Growth and Expansion Strategies ..............................................Error! Bookmark not defined. Direct Exporting.....................................................................Error! Bookmark not defined. Licensing: ...............................................................................Error! Bookmark not defined. Franchising:............................................................................Error! Bookmark not defined. Channeling: ............................................................................Error! Bookmark not defined. Functional Level Strategies and Implementation ......................................................................... 18 Functional and Operational Level Implementation of Differentiation Strategy ....................... 21 Functional and Operational Level Implementation of Innovation Strategy ............................. 22 Functional and Operational Level Implementation of Globalization Strategy ......................... 22 Functional and Operational Level Implementation of Diversification, Expansion and Growth Strategy ..................................................................................................................................... 22 Functional and Operational Level Implementation of Concentration Strategy ........................ 22 Functional and Operational Level Implementation of Cooperation Strategy ........................... 23 Functional and Operational Level Implementation of Growth and Expansion Strategy .......... 23 Scenario: Coke launching a new product or product line ......................................................... 24 Vertical and Horizontal Fit ....................................................................................................... 24 Performance Measurement: .......................................................................................................... 25
Critical Success Factors ............................................................................................................ 26 Balance Scorecard ..................................................................................................................... 26 Performance Evaluation and Strategy Success ......................................................................... 27 Sustainability Reporting Guidelines (G3.1) .......................................................................... 27 Proposed Strategy ......................................................................................................................... 29 Consumer Engagement ............................................................................................................. 29 Use of Bottlers .......................................................................................................................... 29 Licensing ................................................................................................................................... 29 Africa ........................................................................................................................................ 30 Contingency plan: ................................................................................................................. 30 Packaging .................................................................................................................................. 30 Contingency Plan .................................................................................................................. 30 Pricing ....................................................................................................................................... 30 Contingency Plan .................................................................................................................. 31 Target Market............................................................................................................................ 31 Works Cited .......................................................................................................................... 32
Strategic Intent
Mission
Coca Colas Roadmap starts with their mission, which is enduring. It declares their purpose as a company and serves as the standard against which they weigh their actions and decisions. To refresh the world... To inspire moments of optimism and happiness... To create value and make a difference.
Vision 2020
Their vision serves as the framework for their Roadmap i.e. their mission and guides every aspect of the companys business by describing what is needed to accomplish in order to continue achieving a longterm, sustainable and quality growth. 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.
A Winning Culture
Their Winning Culture defines the attitudes and behaviors that will be required of them to make their 2020 Vision a reality.
Core Values
These values serve as a compass for actions and describe how to work with the environment and customers. 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
Business Definition
Customer Groups (who)
Coke is for everyone! Children, teenagers, middle-aged and old aged people; everyone is the target market of Coca Cola company. It is a mass market product sold globally. Though everyone does drink Coca cola but its major target markets are children and teen-agers.
Be insatiably curious
Work Smart
Act with urgency Remain responsive to change Have the courage to change course when needed Remain constructively discontent Work efficiently
Be the Brand
Inspire creativity, passion, optimism and fun
Environmental Analysis
SWOT
Coca Cola SWOT analysis 2013
Strengths 1. The best global brand in the world in terms of value ($77,839 billion) 2. Worlds beverage 3. Strong marketing and advertising 4. Most extensive beverage distribution channel 5. Customer loyalty 6. Bargaining power over suppliers 7. Corporate social responsibility Opportunities 1. Bottled water consumption growth 2. Increasing demand for healthy food and beverage 3. Growing beverages consumption in emerging markets 4. Growth through acquisitions largest market share in
Weaknesses 1. Significant focus on carbonated drinks 2. Undiversified product portfolio 3. High debt level due to acquisitions 4. Negative publicity 5. Brand failures or many brands with insignificant amount of revenues
Threats 1. Changes in consumer preferences 2. Legal requirements to disclose negative information on product labels 3. Competition from PepsiCo 4. Saturated carbonated drinks market
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 company social image and result in competitive advantage over competitors.
Weaknesses
1. Significant focus on carbonated drinks. The Coca Cola Company 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. 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. 3. Competition from PepsiCo. PepsiCo is fiercely competing with Coca Cola over market share in BRIC countries, especially India. 4. Saturated carbonated drinks market. The company 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.
Competitor analysis
The top four competitors of Coca Cola Company are listed below: 1. 2. Pepsi Co. Nestle
The major competition is faced by Coca Cola Company is Pepsi company. Pepsi is one of the world leader brand with approximate revenues of $27billion and over 143,000 employees. Pepsi products are available in nearly 200 countries (Pepsi Co 2011).
need a huge advertisement campaign in order to create brand loyalty and consumer demand (Valuation Academy, 2011). However the switching cost to substitute products is quite low but consumers prefer differentiation of Coca-cola to the lower prices of substitute products.
Environmental Appraisal
PESTEL Analysis
Political
In every business environment, there are potential pressures from the government. Coca-Cola produces non-alcoholic beverages which come under the category of FDA and government plays an important role in the manufacturing of these products. There are certain regulations that governments of different countries enforce on these companies. If the company fails to produce the product according to the required quality standard, there are certain fines which they have to pay. It is equally important to consider the changing laws and regulations of the foreign countries. These changes may occur in the accounting standards, environmental laws and the taxation requirements etc. These changes have the severe impact on the account books of the companies. There profit potential can be dependent on such factors as well. So companies like Coca-cola should adapt proactive approach and remain aware of such changes to able to cope up with the changing business laws and regulations. The current political conditions of the target country also hold a lot of importance for the company wishing to enter in the foreign markets. The governmental laws and other political scenario can affect the ability of the company to penetrate its business successfully in the emerging market. All the emerging markets have volatile political and economic conditions. Coca-cola always monitors the changing policies and government regulations set by the government.
Economic
Economic Analysis is used to examine the local, national, international markets and world economy which can play a major role for the company in selection of its target markets. The economic analysis also includes the issues of recession and inflation. This recession and inflation has also affected coke as its prices have considerably increased over the years.
Sociological
Changes in society such as lifestyle changes and attitudes of the people can also determine the market potential. It is important to analyze the current sociological factors which can help in understanding the market growth and demand of the products in any area.
There has been seen a changing trend among the people in the age group of 37 to 55 that they are concerned with the nutrition (IvyThesis , 2009). They want to eat healthy food in order to live a healthy life. The baby boomers are now grown adults and as they are becoming old so their concern with their health is also increasing with time.
Technological
In this rapid-paced world, we encounter with new emerging technologies which can increase the efficiency of the business in many ways. Technological advancements create opportunities for new product development and also product improvements (Valuation Academy, 2011). Technological improvements and enhancements also force companies to develop new products in order to remain competitive in the market. This advancement of technology has also helped Coca-Cola in development of Cherry Coke in 1985.
Legal
The legal environment also holds a lot of importance in every business progress. Coca-Cola has determined all the rights applicable to its business and they gain patent of all the products they develop. All the companies must align companys policy with the changing legislation of the world (IvyThesis , 2009).
Environmental
Environmental analysis includes the close examination of local, international and all world environmental issues. The companies must respect the environment and must carry out some projects to reduce the environmental pollution. The basic idea here is that a company must be environmental-friendly (Goos Kant, 2007). The Coca-Cola Company strictly monitors all the environmental regulations and laws imposed by the foreign and local governments.
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worldwide
have
preference for Coca Cola instead of its competitor Pepsi. Also, soft drinks are something that are consumed by people of all age groups. International Favorable It is already a global brand and has its operations worldwide. Still the economic trade groups are increasing opportunities for Coke to expand. Political Neutral Political system usually does not impact the food and beverage industry much. Regulatory Favorable The products are in accordance to the quality standards. Social Less favorable The socio culture trend is that people are becoming more health conscious. Supplier Favorable The supplying system of Coke is strong worldwide. Technological Favorable The Coca Cola company is up to date with technology in their day to day operations and activities.
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Organizational Appraisal
Internal Analysis Porters generic value chain model
As far as coca cola is concerned the cross business strategic fits can exist anywhere along the value chain of coca cola. We will discuss these value chains one by one and see how coca cola can strategically fit into these value chains
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Support Activities
Firm Infrastructure
Firm has a strong infrastructure as it is shown by its financials. The financial data is readily available to the management for strategic decision making. Financial data can be extracted through different networks that are present at the Coca-Cola Company for e.g. they use mySAP which helps them in forecasting and consolidation of data.
Technology Development
Coca cola can fit into a kind of business where it can utilize its resources of R & D and technology. As we already know that the R & D and technology of coca cola is very strong. In the area of technology coca cola is very advance when we see their packaging and bottling technology. When coca cola will diversify into any other business which is related to its industry it will obviously have the advantage of its technological expertise. The coca cola company has always worked for bringing in technological changes to meet the customer needs. These are the various examples of latest technology adopted by the company
Procurement
Businesses who have supply chain strategic fit can perform better together because of potential for skills transfer in procurement, greater bargaining power and benefits of collaboration with common supply chain partners. Coca cola has a strong supply chain network. It makes the syrup used to make the coke and gives it to its distributors and they make the final good. It also has contract with a bottling company which makes bottles for coca cola. So having such a strong supply chain network it can also diversify into relative business as this will help the company in reducing costs and increasing efficiency. Coca cola is using the same supply chain for its diversified products.
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Primary Activities
Operations
Coca cola has the World sixth largest production plant. One assembly line can produce 2000 cans in minute. Production line has 25000 bottle storage capacities per minute. So coca cola can also fit because of its production related activities. Such a strong production capacity will result in lower costs.
VRIO Framework
Resources capabilities Brand Cola) (Coca Yes No Yes and Value Rarity Inimitable Organized Usage yes for
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Value: Cokes main value would be their Brand. Coke is globally recognized. Rare: This asset is semi-rare. While it is true that few of their competitors have the strength of brand that Coke has, it is not a resource that is unattainable by other companies. Inimitable: As we have well established, Cola is easily inimitable. Perhaps the strength of their brand however, is not as easy to imitate. Organized: The resource is definitely useable by Coke to drive sales and capture market share
Strengths
and
between Pepsi and Coke going in the industry. Both try hard to market their products in best possible way. Therefore we can say that Coke has a secure position in the Industry Operations Neutral Plant and machinery are
Personnel
Strength
Information
Strength
Advanced information systems are available. Coke website also has extensive company information
available on it General Management Strength High quality and experienced top management available
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Organizational Structure
Coca Cola has a very tall and bureaucratic organizational structure. A graphical representation of its organizational structure is given below:
The above graphical representation shows the top functionaries of the company.
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The reason for the tall structure of the organization is because the corporate headquarters want full control of its product. Since, the one of the key success factors for the company is the consistent unique tastes of its beverages; hence the higher ups of Coca Cola dont want to take any risks in that matter. Coca Cola faces some problem in slow process of communication because of tall hierarchy of the organization but to keep it centralized, this is the cost the company needs to pay. It can reduce this problem by introducing latest IT solutions to speed up its communications.
Regional Office:
There are a total of four regional offices of Coca Cola around the world. Regional offices keep a check of all country subsidiaries coming under its defined boundary. It keeps a track of all the sales, financials of all the country subsidiaries and then reports them to the corporate headquarters. Also, any orders from the corporate headquarters for the country subsidiary are channelized through regional offices.
Country Subsidiary:
The corporate headquarter keeps a watch over the activities of different regional offices located in every continent where Coca Cola operates. Under a regional office, every country has its own subsidiary. This subsidiary is responsible for the manufacturing of the beverages from the secret recipe, distribution of the products and the sales & marketing as well. As mentioned earlier, the marketing is localized as per the country the product is selling in.
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Innovation Strategy
Coca Cola, since its birth, has been as successful as it is today because of its ability to systematically innovate and deliver new products with respect to the ever changing market. The trends of the market are
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not constant; they change every quarter. Keeping that in mind, Coke moved from a single core product to a comprehensive beverage offering. As of now Coca Cola offers nearly 400 different products the reason for it still dominating the beverage industry around the globe.
Globalization Strategy
Technology is continually changing the way businesses operate. The trends and methodologies which are responsible for making businesses more feasible and profitable for the purpose of expansion are given strict emphasis. Presently, Coca-Cola is able to exploit large revenue opportunities by participating in a global market - Coke products are delivered in 200 countries around the world.
Related Diversification
Coca Cola started their business from sodas and then went into power drinks, bottled water, and healthy drinks like Minute Maid and ice teas.
Concentration Strategy
Coke has been able to maintain a consistent formula for its drinks, especially Coke. This indicates their consideration for their loyal customers who do not want to lose the essence of the original fizzy taste of Coca Cola.
Cooperation Strategies
Joint Venture:
Coke joined forces with different suppliers and bottlers such as Femsas popular JV. Beverage Partners Worldwide: the joint venture partnership between Coca-Cola and Nestle was created in 2001.
Acquisitions:
Coca Cola has a long history of acquisitions. For example, the acquisition of Minute Maid in 1960. The Indian cola brand Thums-Up in 1993. In 2001 it acquired the Odwalla brand for $181 million. In 2007, it acquired Fuze Beverage for an estimated $250 million and etc.
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These acquisitions shows Coca Colas success in the market because most of them have been seen successfully adapting with Cokes business strategies.
Strategic Alliances:
Coca Cola has been extremely active in strategic alliances over the years. - The most noteworthy alliance being with McDonalds.
Licensing:
Coca Cola markets internationally as well by licensing bottlers around the world - supplying them with the syrup needed to produce the product.
Franchising:
Among the different types of franchising, Coca Cola has been using a manufacturer-sponsored wholesaler franchise system whereby the finished products are sold to the retailers in the local market directly.
Channeling:
Coca Cola has managed the companys marketing and sales strategy within their previously defined channels. The Company operates three primary delivery systems that are: Bulk delivery for large channels such as supermarkets, mass merchandisers and club stores. Advanced sale delivery system for smaller channels like convenience stores, drug stores etc. Full service delivery for their full service vending customers.
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Functional and Operational Level Implementation of Diversification, Expansion and Growth Strategy
Coca Cola started out as mere black-colored soda in a glass bottle but has expanded into energy drinks, health-oriented fresh juices, bottled water and culture-specific beverages since. For example, Coke launching Limca in India was to cater to the local populati ons preference and identification with lemon and soda. The R&D, market efforts, standardization of the formula needs to be efficiently coordinated. The functional level strategy has to be adventurous enough to create some ripples in the minds of the local population and yet be disciplined enough to stay within the limitations of Cokes core philosophy and global outlook.
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formula behind the shade of Cokes Red color is just as much a secret as its constituting ingredients) while Share and Happiness have been constant and recurring themes in their marketing campaigns.
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franchise system which requires an efficient distribution and supply chain network to be able to directly sell to the retailer without a wholesaler in the middle. The bullwhip effect is an important consideration for Cokes operations here as any miscommunication of demand would have a magnified effect on the supply side which would add to Cokes inventory costs and reduce the products shelf life. Increased stock with an expiry date around the corner would require trade promotions and discounts to clear shelf space - denting Cokes profits had the product been sold sooner but avoiding the off chance of a sale of an expired product which could potentially erode Cokes positive image in the mind of the customer.
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Performance Measurement:
Performance measurement is the process whereby an organization establishes the parameters within which programs, investments and acquisitions are reaching the desired results. Coca Cola links the mission and vision to its operations and functions in a very good way. The whole performance is managed in a very well manner in order to get best out of it. Managers and employees are highly involved in the system to take decisions which results in employee loyalty. Goals of the company are formulated at the higher level, than head of the departments make their own goals accordingly, and then comes the unit office, then functional heads which generate reports, in the end supervisors and employees also set their goals. All these incomparable policies lead to the success of Coca cola globally. After the goals and strategy has been formulated, performance is measured in order to check the implementation of strategy and goals. Monthly review is done to check the implementation results. During review periods no changes in the goals can be changed. During the mid year stage goals can be further refined or altered and new policies can be designed to achieve the organizational level goals. At the final stage the performance is matched with the standards and goals of the organization. If there are positive results with increase in overall productivity, the individual performance of the employees is evaluated and the rewards are then given on the basis of performance.
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Balance Scorecard
For performance measurement at smaller units, balanced score card is used by the company.
Perspective
Financial
High Market share , leading position globally Consistent decrease in cost of sales
production
with
waste
Consistent
decrease
in
cost
of
Brand expansion
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New products and processes added in the company Reduced rate of employee turnover
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Economic
Apart from the obvious economic performance indicators, which are present in annual reports, two other less reported indicators include the companys market presence & indirect eco nomic impact that determines the contribution of a company for a larger economic system.
Economic Performance Indicators: Important elements in this category include direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments.
Market Presence: These include policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation. Other factors include hiring of senior management from local community.
Indirect Economic Impacts: These include development of infra-structure and similar services for the benefit of the general public.
Social
The social dimension deals with the impact that coca-cola has on the social systems in the places where it operates. Such social performance indicators define how well the company deals with issues such as labor practices, human rights and product responsibility (Customer health and safety, compliance etc.)
Environment
The social aspect of sustainability deals with concern of an organization to living and non-living life it impacts through its operations. It deals with the aspect of how well a company manages the waste and emissions that results out from the production of various goods at different sites.
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Proposed Strategy
Consumer Engagement
What differentiates Coke from its competitors is the level at which is performs consumer engagement. Notice the word used here is consumer rather than customer because Cokes direct customers are actually the distributers; however they are wise enough to know that it is the end customers demand and level of satisfaction that truly matters. Due to this they have formulated many different marketing strategies that help them engage customers, and that is what customers truly admire and enjoy about Coke. For example: The latest Coke marketing campaign attempts to unite the people of Pakistan and India by installing a Coke machine which allows you to make a friend across the border and you can also play an interactive game with them on the spot. Consumers believe Coke to be a full of life and fun brand which has then intrigued and loyal at all times. This technique gives Coke its competitive edge and it something we propose they should continue to do in the future too.
Use of Bottlers
Coke should keep on manufacturing and bottling its own products as it is doing in most places. This ensures good quality and timely delivery. They should definitely follow this whilst in a country where they face strong competition. Initially upon entering Pakistan they used a local bottler and many a time a complaint was recorded about insects being found in the bottles. This deteriorated the image of the brand in the mind of the Pakistanis and had a role to play in the dominance of Pepsi over Coke in the country.
Licensing
Coke should refrain from using Licensors in countries with strong competition prevailing in them. This is because Coke mainly beats its competitors over two things: Taste and Marketing. The marketing budget of a Licensee can never match that of a Licensor; hence the marketing campaign created there will not be of the value that Coke is known for. This is why they should keep the marketing in their own hands.
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Africa
Although Coke is present in Africa the research showed that in 2010 the Annual Per capita consumption of Coke in Kenya was only 39 servings. This was due to the trade barriers and unfavorable environment present in the area. However, today the wars in Africa are ending and they are making a conscious effort to reduce trade barriers. Coke should take a quick step forward and step into the market fully before its competitors have a chance to, because it has reached maturity or near maturity in many countries, and many growth opportunities are present in Africa that will increase its global market share. Contingency plan: Penetrating the impoverish market can be a difficult task. Therefore, Coke shall use
Bottom of the Pyramid strategy when going into the impoverished areas. Coke can come up with buddy packs and introduce them for the people who cannot afford the big packs. They will also have to lower their prices in such area. Frequent sales on bulks can also be a good tact to market product.
Packaging
Packaging plays a large role in the image that is created in the minds of consumers about a brand. Coke has previously launched limited edition packaged products which has different names written on the bottles and the slogan was for example: Share a Coke with Sarah. Limited edition packaging makes Coke stand out from its competitors and portrays the image of it being an exciting product rather than a mundane one. It should continue to launch similar marketing strategies. Contingency Plan: People can become reluctant to new packaging style. Therefore heavy advertising
of the new packaging can be done to attract customers.
Pricing
Coke should price its products in such a manner that it is cheaper than water, especially in places where water itself is a rare commodity. They should create strategies that create the image of Coke as being a substitute of water in the minds of consumers and thereby increase the intake of coke, making it higher than the intake of water. For example, till recently Coke was actually cheaper than water in Saudi Arabia which is why it became the most popular beverage in the area.
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Contingency Plan: Coke has its side effects on health. Day by day, we can see that the benefits of
drinking water are being highlighted on TV and internet. The trend of healthy drinks are increasing therefore this strategy can backfire. In such a case Coke can introduce their other brands like Kinley and Minute Maid.
Target Market
Coke should focus their efforts on countries with a growing population thereby increasing the total beverage consumption of their product. Here the focus is not on per-head consumption but on total beverage consumption. This is a strategy that can be focused upon in countries like India.
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Works Cited
Bazil, M. (2013). The Motley Fool. Coca-Cola Has a Prosperous 2013 Ahead of It. Available at: http://beta.fool.com/muhammadbazil/2013/01/04/coca-cola-has-prosperous2013-ahead-it/20272/?ticker=KO&source=eogyholnk0000001 Burkitt, Laurie. These companies managed to make a comeback. 24 May 2010. 10 November 2012 <http://www.msnbc.msn.com/id/37192458/ns/businessforbes_com/t/these-companies-managed-make-comeback/#.UJ5JCYeTzbA>. Carretta, Mary. Coca Cola. 2007. 26 05 2013 <http://www.slideshare.net/revaza28/projectofcocacola>. Goos Kant, Michael Jacks and Corn Aantjes. "Coca-Cola Enterprises Optimizes Vehicle Routes for Efficient Product Delivery." Franz Edelman Award for Achievement in Operations Research and the Management Sciences 38.1 (2007): 40-50. IvyThesis . PESTLE Analysis of Coca-Cola. 10 December 2009. 10 November 2012 <http://ivythesis.typepad.com/term_paper_topics/2009/12/pestle-analysis-on-cocacola.html>. Mirza, Sofia. Marketing Analysis of Coca Cola. 2010. 26 05 2013 <http://kninn.blogspot.com/2010/06/market-analysis-coca-cola.html>. Price, Scott. Even Large Companies Have Performance Problems in 2010. 14 July 2010. 10 November 2012 <http://loadstorm.com/2010/even-large-companies-haveperformance-problems-2010>.
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The Coca Cola Company (2013). Coca Cola Journey. Available at: http://www.cocacolacompany.com/
Valuation Academy. Porters Five Forces In Action: Sample Analysis of Coca-Cola. 02 September 2011. 10 November 2012 <http://valuationacademy.com/porters-five-forcesin-action-sample-analysis-of-coca-cola/>.
Vedwan, Neeraj. "Pesticides in Coca-Cola and Pepsi: Consumerism, Brand Image, and Public Interest in a Globalizing India." Cultural Anthropology 22.4 (2007): 659-684.
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