A Report on
A Report on
Strategic Planning
Strategic Planning
Of
Of
COCA COLA
COCA COLA
Subject: Strategic
Subject: Strategic Managemen
Managementt
[MBA – Evening
[MBA – Evening Program]
Program]
Faculty: Sir Yousuf
Faculty: Sir Yousuf
Prepared & Presented by:
Prepared & Presented by:
Rohail Riaz (51515)
Rohail Riaz (51515)
Table of Contents Table of Contents 1-
1- EXECUTIVE SUMMARY EXECUTIVE SUMMARY ... .. 44
2- HISTORY OF COCA
2- HISTORY OF COCA COLA COLA ...55
3- BRANDS OF C
3- BRANDS OF COCA COLA OCA COLA ...77
3.1-
3.1- Energy Energy Drinks Drinks ... .. 77
3.2-
3.2- Juices/JJuices/Juice uice Drinks Drinks ... .. 77
3.3-
3.3- Soft Soft Drinks Drinks ... .... 88
3.5-
3.5- Tea Tea and and Coffee Coffee ... .... 88
3.6
3.6 Water Water ... ... 88
3.7-
3.7- Other Other Drinks Drinks ... . 99
...
... ... 1010
5- DIFFERENT PLAYERS IN
5- DIFFERENT PLAYERS IN THE SOFT THE SOFT DRINKS MARKET DRINKS MARKET ... ... 1111
Cadbury Schweppes are joined force of Cadbury found in 1824 of U.K. and Schweppes of
Cadbury Schweppes are joined force of Cadbury found in 1824 of U.K. and Schweppes of
Ireland founded in 1783. Cadbury Schweppes is unified bussing which manages the
Ireland founded in 1783. Cadbury Schweppes is unified bussing which manages the
relations his with over 240 franchised bottling operation on Zambia and Zimbabwe.
relations his with over 240 franchised bottling operation on Zambia and Zimbabwe.
Cadbury Schweppes has fottlery and partnership operations in 14 countries around the
Cadbury Schweppes has fottlery and partnership operations in 14 countries around the
world.
world... ... 1111
6- OUR
6- OUR MISSION: MISSION: ... .. 1111
7- OUR
7- OUR VISION: VISION: ...1111
8-
8- IMPROVED MISSION IMPROVED MISSION STATEMENT: STATEMENT: ... . 1212
9-
9- IMPROVED VISION IMPROVED VISION STATEMENT: STATEMENT: ... ... 1212
10- CURRENT
10- CURRENT ORGANIZATIONAL CHART ORGANIZATIONAL CHART ... ... 1616
11-
11- E-COMMERCE: E-COMMERCE: ... ... 1616
12- VALUE OF
12- VALUE OF THE FIRM THE FIRM ... ... 1717
13-
16-
1- EXECUTIVE SUMMARY 1- EXECUTIVE SUMMARY
Coca-Cola, the product that has given the world its best-known taste was born in Atlanta, Coca-Cola, the product that has given the world its best-known taste was born in Atlanta, Georgia, on May 8, 1886. Coca-Cola Company is the world’s leading manufacturer, marketer Georgia, on May 8, 1886. Coca-Cola Company is the world’s leading manufacturer, marketer and distributor of non-alcoholic beverage concentrates and syrups, used to produce nearly 400 and distributor of non-alcoholic beverage concentrates and syrups, used to produce nearly 400 beverage brands. It sells beverage concentrates and syrups to bottling and canning operators, beverage brands. It sells beverage concentrates and syrups to bottling and canning operators, distributors, fountain retailers and fountain wholesalers. Coca-Cola was first introduced by John distributors, fountain retailers and fountain wholesalers. Coca-Cola was first introduced by John Syth Pemberton, a pharmacist, in the year 1886 inAtlanta, Georgia when he concocted Syth Pemberton, a pharmacist, in the year 1886 inAtlanta, Georgia when he concocted caramel-colored syrup in a threelegged brass kettle in his backyard. He first “distributed” the product by colored syrup in a threelegged brass kettle in his backyard. He first “distributed” the product by carrying it in a jug down the street to Jacob’s Pharmacy and customers bought the drink for five carrying it in a jug down the street to Jacob’s Pharmacy and customers bought the drink for five cents at the soda fountain. Carbonated water was teamed with the new syrup, whether by cents at the soda fountain. Carbonated water was teamed with the new syrup, whether by accident or otherwise, producing a drink that was proclaimed “delicious and refreshing”, a theme accident or otherwise, producing a drink that was proclaimed “delicious and refreshing”, a theme that continues to echo today wherever Coca-Cola is enjoyed. Coca-Cola originated as a soda that continues to echo today wherever Coca-Cola is enjoyed. Coca-Cola originated as a soda fountain beverage in 1886 selling for five cents a glass. Early growth was impressive, but it was fountain beverage in 1886 selling for five cents a glass. Early growth was impressive, but it was only when a strong bottling system developed that Coca-Cola became the world-famous brand it only when a strong bottling system developed that Coca-Cola became the world-famous brand it is today. Coca- Cola was the leading soft drink brand in India until 1977, when it left rather than is today. Coca- Cola was the leading soft drink brand in India until 1977, when it left rather than reveal its formula to the Government and reduce its equity stake as required under the Foreign reveal its formula to the Government and reduce its equity stake as required under the Foreign Regulation Act (FERA) which governed the operations of foreign companies in India. In the new Regulation Act (FERA) which governed the operations of foreign companies in India. In the new liberalized and deregulated environment in 1993, Coca-Cola made its re-entry into India through liberalized and deregulated environment in 1993, Coca-Cola made its re-entry into India through its 100% owned subsidiary, HCCBPL, the Indian
its 100% owned subsidiary, HCCBPL, the Indian bottling arm of the Coca-Cola Company.bottling arm of the Coca-Cola Company. The
The maimain n objobjectective ive of of thithis s stustudy dy lielies s in in undeunderstrstandianding ng the organithe organizatzation ion and and stustudyidying ng andand understanding the consumers’ perception and opinion about the latest product, Minute Maid understanding the consumers’ perception and opinion about the latest product, Minute Maid Pul
Pulpy py OraOrangenge, , intintrodroduceucedindinto to IndIndia, ia, by by the the CocCoca-Ca-Cola ola ComCompanpany. y. A A consconsumeumer r samsampliplingng involving 5.5 lakh people was conducted in a span of 30 days across major cities in order to give involving 5.5 lakh people was conducted in a span of 30 days across major cities in order to give the product the required marketing push and to recognize the prospective consumers and their the product the required marketing push and to recognize the prospective consumers and their opinion in order to develop and market the product in a better way in the near future. The opinion in order to develop and market the product in a better way in the near future. The methodology used in studying and understanding the perceived views of consumers towards the methodology used in studying and understanding the perceived views of consumers towards the product was ‘SAMPLING’. The findings of the activity have been drawn out in form of graphs product was ‘SAMPLING’. The findings of the activity have been drawn out in form of graphs
and suggestions have been offered there from. and suggestions have been offered there from.
2- HISTORY OF COCA COLA 2- HISTORY OF COCA COLA
Coca-Cola® originated as a soda fountain
Coca-Cola® originated as a soda fountain beverage in 1886 selling for five beverage in 1886 selling for five cents a glass. Earlycents a glass. Early growth was impressive, but it was only when a
growth was impressive, but it was only when a strong bottling system developed that Coca-Colastrong bottling system developed that Coca-Cola became the world-famous brand it is today.
became the world-famous brand it is today. 1894 – A modest start for a Bold Idea 1894 – A modest start for a Bold Idea In a candy store in Vicksburg,
In a candy store in Vicksburg, Mississippi, brisk sales of the new fountain beverage called Coca-Mississippi, brisk sales of the new fountain beverage called Coca-Cola impressed the store's owner, Joseph A. Biedenharn.
Cola impressed the store's owner, Joseph A. Biedenharn. He began bottling Coca-Cola to He began bottling Coca-Cola to sell,sell, using a common glass bottle called a Hutchinson.
using a common glass bottle called a Hutchinson.
Biedenharn sent a case to Asa Griggs Candler, who owned the Company. Candler thanked him Biedenharn sent a case to Asa Griggs Candler, who owned the Company. Candler thanked him but took no action. One of his nephews already had urged that Coca-Cola be bottled, but Candler but took no action. One of his nephews already had urged that Coca-Cola be bottled, but Candler
focused on fountain sales. focused on fountain sales.
1899 The first bottling agreement 1899 The first bottling agreement
Two young attorneys from Chattanooga, Tennessee believed they could Two young attorneys from Chattanooga, Tennessee believed they could build a business around bottling Coca-Cola. In a meeting with Candler, build a business around bottling Coca-Cola. In a meeting with Candler,
Ben
Benjamjamin in F. F. ThomThomas as and and JosJoseph eph B. B. WhiWhitehtehead ead obtobtainained ed excexcluslusiveive rights to bottle Coca-Cola across most of the United States (specifically rights to bottle Coca-Cola across most of the United States (specifically excluding Vicksburg) -- for the sum of one dollar. A third Chattanooga excluding Vicksburg) -- for the sum of one dollar. A third Chattanooga lawyer, John T. Lupton, soon joined their venture.
lawyer, John T. Lupton, soon joined their venture. 1900-1909 … Rapid growth
1900-1909 … Rapid growth
The three pioneer bottlers divided the country into territories and sold bottling rights to local The three pioneer bottlers divided the country into territories and sold bottling rights to local ent
entrepreprenreneureurs. s. TheTheir ir effeffortorts s werwere e booboostested d by by majmajor or proprogregress ss in in botbottlitling ng tectechnolhnologyogy, , whiwhichch improved efficiency and product quality. By 1909, nearly 400 Coca-Cola bottling plants were improved efficiency and product quality. By 1909, nearly 400 Coca-Cola bottling plants were operating, most of them family-owned businesses. Some were open only during hot-weather operating, most of them family-owned businesses. Some were open only during hot-weather months when demand was high.
months when demand was high.
1916 … Birth of the contour bottle 1916 … Birth of the contour bottle B
Boottttlleerrs s wwoorrrriieed d tthhaat t tthhe e ssttrraaiigghhtt--ssiiddeed d bboottttlle fe foor r CCooccaa-- CCoollaa was
was easily easily confused confused with with imitators. imitators. A A group group representing representing thethe Company and bottlers asked glass manufacturers to offer
Company and bottlers asked glass manufacturers to offer ideas for a distinctive bottle. A design from the Root ideas for a distinctive bottle. A design from the Root Glass Company of Terre Haute, Indiana won enthusiastic Glass Company of Terre Haute, Indiana won enthusiastic ap
apprprovoval al in in 191915 15 anand d wawas s inintrtrododucuced ed in in 1911916. 6. ThThee co
contntouour r bobottttle le becbecamame e one one of of ththe e fefew w papackackageges s evever er gr
grananteted d trtradadememarark k ststatatus us by by ththe e U.U.S. S. PaPatetent nt OfOffificece.. Today, it's one of the most recognized icons in the world - even in the Today, it's one of the most recognized icons in the world - even in the dark!
1920s … Bottling overtakes fountain sales 1920s … Bottling overtakes fountain sales
As the 1920s dawned, more than 1,000 Coca-Cola bottlers were operating in the U.S. Their ideas As the 1920s dawned, more than 1,000 Coca-Cola bottlers were operating in the U.S. Their ideas and zeal fueled steady growth. Six-bottle cartons were a huge hit after their 1923 introduction. A and zeal fueled steady growth. Six-bottle cartons were a huge hit after their 1923 introduction. A few years later, open-top metal coolers became the forerunners of automated vending machines. few years later, open-top metal coolers became the forerunners of automated vending machines. By the end of the 1920s, bottle sales of Coca-Cola exceeded fountain sales.
By the end of the 1920s, bottle sales of Coca-Cola exceeded fountain sales. 1920s and 30s … International expansion
1920s and 30s … International expansion Led
Led by by lonlongtigtime me ComCompany leader pany leader RobRobert ert W. W. WooWoodrudruff, ff, chichief ef execut
executive ive officofficer er and and chairchairman man of of the the Board, Board, the the CompanCompany y began began aa major
major push push to to establish establish bottling bottling operations operations outside outside the the U.S. U.S. Plants Plants werewere opened in France, Guatemala, Honduras, Mexico, Belgium, Italy, Peru, Spain, Australia and opened in France, Guatemala, Honduras, Mexico, Belgium, Italy, Peru, Spain, Australia and South Africa. By the time World War II began,
South Africa. By the time World War II began, Coca-Cola was being bottled in Coca-Cola was being bottled in 44 countries.44 countries. 1940s … Post-war growth
1940s … Post-war growth
During the war, 64 bottling plants were set up around the world to supply During the war, 64 bottling plants were set up around the world to supply the troops. This followed an urgent request for bottling equipment and the troops. This followed an urgent request for bottling equipment and materials from General Eisenhower's base in North Africa. Many of these materials from General Eisenhower's base in North Africa. Many of these wa
war-r-titime me plplantants s wewere re lalateter r coconvenvertrted ed to to cicivivililian an ususe, e, pepermrmananententlyly en
enlalargrgining g ththe e botbottltlining g sysyststem em and and acaccelcelereratiating ng ththe e grgrowowth th of of ththee Company's worldwide business.
Company's worldwide business. 1950s … Packaging innovations
1950s … Packaging innovations For
For the the firsfirst t timetime, , consumconsumers ers had had choicechoices s of of Coca-CoCoca-Cola la package package sizesize and
and tytype pe -- -- the the tratraditditionional al 6.56.5-ou-ounce nce concontoutour r botbottletle, , or or larlarger ger servings including 10-, 12- and 26-ounce versions. Cans were also servings including 10-, 12- and 26-ounce versions. Cans were also introduced, becoming generally available in 1960.
introduced, becoming generally available in 1960. 1960s … New brands introduced
1960s … New brands introduced
Following Fanta® in the 1950s, Sprite®, Minute Maid®, Fresca® and TaB® joined brand Following Fanta® in the 1950s, Sprite®, Minute Maid®, Fresca® and TaB® joined brand Coca-Cola in the 1960s. Mr. Pibb® and Mello Yello® were added in the 1970s. The 1980s brought Cola in the 1960s. Mr. Pibb® and Mello Yello® were added in the 1970s. The 1980s brought diet Coke® and Cherry Coke®, followed by POWERADE® and DASANI® in the 1990s. diet Coke® and Cherry Coke®, followed by POWERADE® and DASANI® in the 1990s. Today hundreds of other brands are offered to meet consumer preferences in local markets Today hundreds of other brands are offered to meet consumer preferences in local markets around the world.
around the world.
1970s and 80s … Consolidation to serve customers 1970s and 80s … Consolidation to serve customers
As technology led to a global economy, the retailers who sold Coca-Cola merged and evolved As technology led to a global economy, the retailers who sold Coca-Cola merged and evolved into international mega-chains. Such customers required a new approach. In response, many into international mega-chains. Such customers required a new approach. In response, many small and medium-size bottlers consolidated to better serve giant international customers. The small and medium-size bottlers consolidated to better serve giant international customers. The Company encouraged and invested in a number of bottler consolidations to assure that its largest Company encouraged and invested in a number of bottler consolidations to assure that its largest bottling partners would have capacity to
1990s … New and growing markets 1990s … New and growing markets
Political and economic changes opened vast markets that were closed or underdeveloped for Political and economic changes opened vast markets that were closed or underdeveloped for decades. After the fall of the Berlin Wall, the Company invested heavily to build plants in decades. After the fall of the Berlin Wall, the Company invested heavily to build plants in Eastern Europe. And as the
Eastern Europe. And as the century closed, more than $1.5 billion was century closed, more than $1.5 billion was committed to new bottlingcommitted to new bottling facilities in Africa.
facilities in Africa. 21st Century 21st Century
The Coca-Cola bottling system grew up with roots deep
The Coca-Cola bottling system grew up with roots deeply planted in local communities. Thisly planted in local communities. This heritage serves the Company well today as p
heritage serves the Company well today as people seek brands that honor eople seek brands that honor local identity and thelocal identity and the distinctiveness of local markets. As was true a century ago,
distinctiveness of local markets. As was true a century ago, strong locally based relationshipsstrong locally based relationships between Coca-Cola bottlers, customers and communities are the foundation on which the entire between Coca-Cola bottlers, customers and communities are the foundation on which the entire business grows.
business grows.
3- BRANDS OF COCA COLA 3- BRANDS OF COCA COLA
Coca-Cola Zero® has been one of the most successful product launch
Coca-Cola Zero® has been one of the most successful product launch hes inhes in Coc
Coca a ColCola’s a’s hishistortory. y. In In 2002007, 7, CocCoca a ColCola’s a’s solsold d neanearly 450 rly 450 milmilliolion n cascaseses globally. Put into perspective, that's roughly the same size as Coca Cola’s total globally. Put into perspective, that's roughly the same size as Coca Cola’s total business in the Philippines, one of our top 15 markets. As of September 2008, business in the Philippines, one of our top 15 markets. As of September 2008,
Coca-Cola Zero is available in more than 100 countries. Coca-Cola Zero is available in more than 100 countries.
3.1- Energy Drinks 3.1- Energy Drinks
For
For those those with with a a high-intensity high-intensity approach approach to to life,life, Co
Coca ca CoColala’s ’s brbrandands s of of EnEnerergy gy DrDrininksks co
contntaiain n iningrgredediienents ts ssucuch h aas s giginsnsenengg ext
extracract, t, guaguaranrana a extextracract, t, cafcaffeifeine ne and and BB vitamins.
vitamins.
3.2- Juices/Juice Drinks 3.2- Juices/Juice Drinks We
We brbrining g ininnonovavatition on to to ththe e gogoododnesness s of of juice in Coca Cola’s more than 20 juice and juice in Coca Cola’s more than 20 juice and
ju
juice ice dridrink nk brabrandsnds, , offofferiering ng botboth h aduladults ts and and chichildrldren en nutnutriritiotious, us, refrefresreshinhing g and and flaflavorvorfulful beverages.
beverages.
3.3- Soft Drinks 3.3- Soft Drinks
Coca Cola’s dozens of soft drink brands provide flavor and refreshment in a variety of choices. Coca Cola’s dozens of soft drink brands provide flavor and refreshment in a variety of choices. From the original Coca-Cola to most recent introductions, soft drinks from The Coca-Cola From the original Coca-Cola to most recent introductions, soft drinks from The Coca-Cola Company are both icons and innovators in the beverage industry.
Company are both icons and innovators in the beverage industry. 3.4- Sports Drinks
3.4- Sports Drinks
Carbohydrates, fluids, and electrolytes team Carbohydrates, fluids, and electrolytes team to
togegethther er in in CoCoca ca ColCola’a’s s SpSpororts ts DrDrininksks,,
provi
providing ding rapid rapid hydrathydration ion and and terrterrific ific taste taste for for fitness-seekers at any level
fitness-seekers at any level
3.5- Tea and Coffee 3.5- Tea and Coffee
Bo
Bottttleled d anand d cacannnned ed teteas as anand d cocoffffeeeess p
prorovivide de conconsusumemersrs' ' fafavovoririte te drdrininks ks inin co
convenveninienent t tatakeke-an-anywywherhere e papackckagiagingng,, satisfying both traditional tea drinkers and satisfying both traditional tea drinkers and today's growing coffee culture.
today's growing coffee culture.
3.6 Water 3.6 Water
Sm
Smooooth th anand d esessesentntiaial, l, ouour r WaWateters rs anandd Wa
Wateter r BeBeververageages s ofoffefer r hyhydrdratatioion n in in ititss purest form.
3.7- Other Drinks 3.7- Other Drinks
So
So mumuch ch momore re ththan an sosoft ft drdrininksks. . CoCocaca Cola’
Cola’s s brandbrands s also also incluinclude de milk milk producproducts, ts, soup,soup, and more so you can choose a Coca Cola
and more so you can choose a Coca Cola Company product anytime, anywhere for Company product anytime, anywhere for nutrition, refreshment or other needs.
nutrition, refreshment or other needs.
4- CONSUMER CHOICE AT A GLANCE 4- CONSUMER CHOICE AT A GLANCE
Coca-Cola Mainly preferred by the Youngster & Kids. Coca-Cola Mainly preferred by the Youngster & Kids. Thums-Up Youngster.
Thums-Up Youngster.
Limca Common Drink. Limca Common Drink.
Fanta Basically Preferred by Ladies and Kids. Fanta Basically Preferred by Ladies and Kids.
Maaza Also Ladies and Kids. Maaza Also Ladies and Kids.
Sprite Not clearly defines. Sprite Not clearly defines.
Kinley Soda Mostly those who consume liquor. Kinley Soda Mostly those who consume liquor.
5- DIFFERENT PLAYERS IN THE SOFT DRINKS MARKET 5- DIFFERENT PLAYERS IN THE SOFT DRINKS MARKET
PEPSI PEPSI
Caleb Brandhum, a North Caroline Pharmacist, structure Pepsi Cola In2 the 1890’s as cure of Caleb Brandhum, a North Caroline Pharmacist, structure Pepsi Cola In2 the 1890’s as cure of dyspepsia (indigestion). In 1902, Bradhum applied for a trade mark, issued ninety seven share of dyspepsia (indigestion). In 1902, Bradhum applied for a trade mark, issued ninety seven share of stock and began selling Pepsi syrup in earnest. In his first year of business he spend $1900 on stock and began selling Pepsi syrup in earnest. In his first year of business he spend $1900 on advertising a huge sum that he sold only 8000 gallons of syrup. In 1905 Bradhum built Pepsi’s advertising a huge sum that he sold only 8000 gallons of syrup. In 1905 Bradhum built Pepsi’s bottling plant. By 1907 he was selling 10,000 gallons a year, two years later, he hired a New bottling plant. By 1907 he was selling 10,000 gallons a year, two years later, he hired a New York advertising agency. After passing through many troubles for some period now Pepsi is a York advertising agency. After passing through many troubles for some period now Pepsi is a market leader in international arence and
market leader in international arence and is available in 187 Nations throughout the is available in 187 Nations throughout the world.world. CADBURY SCHWEPPES
CADBURY SCHWEPPES
Cadbury Schweppes are joined force of Cadbury found in 1824 of U.K. and Schweppes of Cadbury Schweppes are joined force of Cadbury found in 1824 of U.K. and Schweppes of
Ire
Ireland land foufounded in nded in 17831783. . CadCadburbury y SchwSchweppeppes es is is uniunifiefied d busbussinsing g whiwhich ch manmanages theages the relations his with over 240 franchised bottling operation on Zambia and Zimbabwe. Cadbury relations his with over 240 franchised bottling operation on Zambia and Zimbabwe. Cadbury Schweppes has fottlery and partnership operations in 1
Schweppes has fottlery and partnership operations in 14 countries around the world.4 countries around the world. 6- OU
6- OUR MISR MISSION SION ::
Our mission declares our purpose as a company.
Our mission declares our purpose as a company. It serves as the standard against which weIt serves as the standard against which we weigh our actions and decisions. It is the foundation of our Manifesto.
weigh our actions and decisions. It is the foundation of our Manifesto. (1)
(1) To refresTo refresh the world in bodyh the world in body, mind and spi, mind and spirit.rit. (2)
(2) To inspire moments To inspire moments of optimism of optimism through our brands through our brands and our actions.and our actions. (3)
(3) To create value and make a diffeTo create value and make a difference everyrence everywhere we engage.where we engage. 7- OUR VISION:
7- OUR VISION:
Our vision guides every aspect of our
Our vision guides every aspect of our business by describing what we need to business by describing what we need to accomplish inaccomplish in order to continue achieving sustainable growth.
order to continue achieving sustainable growth. People
People: Being a great place to work where people are inspired to be the best they can be.: Being a great place to work where people are inspired to be the best they can be. Portfolio
Portfolio: Bringing to the world a portfolio of quality beverage : Bringing to the world a portfolio of quality beverage brands that anticipate and satisfybrands that anticipate and satisfy people's desires and needs.
people's desires and needs. Partners
Partners: Nurturing a winning network of customers and sup: Nurturing a winning network of customers and suppliers, together we create mutual,pliers, together we create mutual, enduring value.
enduring value. Planet
Planet: Being a responsible citizen that makes : Being a responsible citizen that makes a difference by helping build and a difference by helping build and supportsupport sustainable communities.
Profit
Profit: Maximizing long-term return to shareowners while being mindful of o: Maximizing long-term return to shareowners while being mindful of o ur overallur overall responsibilities.
responsibilities.
8- IMPROVED MISSION STATEMENT: 8- IMPROVED MISSION STATEMENT:
(1)
(1) At Coca Cola we're At Coca Cola we're committed to achieving business committed to achieving business and financial success whiand financial success while leavingle leaving a positive imprint on society – delivering what we call Performance with Purpose.
a positive imprint on society – delivering what we call Performance with Purpose. (2
(2)) Our Our mimissssioion n is is to to be be ththe e woworlrld'd's s prprememieier r coconsnsumumer er PrPrododucucts ts CoCompmpanany y fofocucusesed d onon convenient foods and beverages. We seek to produce financial rewards to in8vestors as convenient foods and beverages. We seek to produce financial rewards to in8vestors as we provide opportunities for growth and enrichment to our employees, our business we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive partners and the communities in which we operate. And in everything we do, we strive
for honesty, fairness and
for honesty, fairness and integrity.integrity. 9- IMPROVE
9- IMPROVED VISION STD VISION STATEMENT:ATEMENT: (1)
(1) Coca cola Co responsiCoca cola Co responsibilibility is to continuallty is to continually improve all aspecty improve all aspects of the s of the world in whichworld in which we operate – environment, social, economic – creating a better tomorrow than today." we operate – environment, social, economic – creating a better tomorrow than today." (2)
(2) Our vision is Our vision is put into action put into action through programs and a fthrough programs and a focus on environmental stewardsocus on environmental stewardship,hip, activities to benefit society, and a commitment to build shareholder value by making activities to benefit society, and a commitment to build shareholder value by making Coca cola Co a truly sustainable company.
Coca cola Co a truly sustainable company.
Why it is improved: Why it is improved:
There is It is our vision to be the best and leading provider of food and beverage products There is It is our vision to be the best and leading provider of food and beverage products in Pakistan, to facilitate the people of Pakistan and we emphasis on consumer more rather in Pakistan, to facilitate the people of Pakistan and we emphasis on consumer more rather than competitors we among the top ten food and beverage companies in the world, by than competitors we among the top ten food and beverage companies in the world, by cont
continuinuallally y chalchallenlenginging g prepresensent t convconvententionions s and and alwalways ays stastayiying ng a a stestep p aheaahead d of of thethe competition.
competition.
It is our mission to be the number one food and Beverage Company in Pakistan by It is our mission to be the number one food and Beverage Company in Pakistan by providing our customers with the highest product quality in terms of taste, experience, providing our customers with the highest product quality in terms of taste, experience,
the standard in the industry.
the standard in the industry. We will be paymasterWe will be paymasters, as we strongly belis, as we strongly believe that humaneve that human resource is the only asset t
resource is the only asset that truly appreciates over time. hat truly appreciates over time. We will also be a responsibleWe will also be a responsible social corporate citizen, and strive to en
Comments on vision and mission (in terms of how they support the strategies) Comments on vision and mission (in terms of how they support the strategies)
The vision statement of our company supports the existing strategies that is (generic The vision statement of our company supports the existing strategies that is (generic strategy) that Coca Cola
strategy) that Coca Cola needs to pursue is needs to pursue is that of differthat of differentiation. entiation. In their current visIn their current visionion and mission statements, the company says it aims to be a low cost leader, yet through our and mission statements, the company says it aims to be a low cost leader, yet through our thorough analysis of the strategic direction the company needs to adopt a generic strategy thorough analysis of the strategic direction the company needs to adopt a generic strategy of differentiation.
of differentiation. This will allow This will allow Coca cola to do three things;Coca cola to do three things; 1. Char
1. Charge a premge a premium 2. Iium 2. Increasncrease unit se unit sales 3ales 3. Gain . Gain buyer buyer loyalloyalty ty HoweveHowever, at tr, at thehe expe
expense nse of of sousoundinding ng simsimpliplististic, c, it it is is necenecessassary ry thathat t the the comcompanpany y comcommunmunicaicate te ititss di
diffffererententiaiatition on to to itits s cuscustotomemersrs, , ototheherwrwisise e ththesese e ththreree e advadvanantatageges s wiwill ll not not avavaiaill themselves. Initially Coca cola will need to adopt a focused differentiation approach, themselves. Initially Coca cola will need to adopt a focused differentiation approach, which means that they should selectively choose which markets will profit them the most which means that they should selectively choose which markets will profit them the most and then target only those markets until such provisions are in place from where the and then target only those markets until such provisions are in place from where the com
company is able to expand its targpany is able to expand its target base. et base. AftAfter which they shoer which they should opt for a uld opt for a brobroadad differentiation generic strategy.
differentiation generic strategy.
With the market just turning the bend to ‘saturation’, it is entering a phase of intense competition With the market just turning the bend to ‘saturation’, it is entering a phase of intense competition with all major players diversifying their product lines, ranges
with all major players diversifying their product lines, ranges and even businesses into a and even businesses into a versatileversatile range of products to put in place more infantry on the battle ground to use to their advantage in range of products to put in place more infantry on the battle ground to use to their advantage in this wa
this war of branr of brands. ds. ThereTherefore, we before, we believe tlieve that the curhat the current strent strategrategic objectic objective of Coca cive of Coca colaola should be to consolidate its existing brand, Coca cola through extensive strategic market research should be to consolidate its existing brand, Coca cola through extensive strategic market research and consumer insights to be able to home in on the correct target market like a precision and consumer insights to be able to home in on the correct target market like a precision targeting missile rather than as an Anti-aircraft gun
targeting missile rather than as an Anti-aircraft gun
MAP: Showing Workforce [71,000 in MAP: Showing Workforce [71,000 in
10- CURRENT ORGANIZATIONAL CHART 10- CURRENT ORGANIZATIONAL CHART
11- E-COMMERCE: 11- E-COMMERCE: CEO CEO EVP/ EVP/ President President Bottling Bottling Invest/ Invest/ Supply Supply Chain Chain CFO and CFO and EVP EVP EVP/ EVP/ President President MKT MKT Strategy Strategy President President & COO & COO SVP & SVP & General General Counsel Counsel SVP & SVP & Director Director Human Human Resources Resources SVP & SVP & Director Director Public Public Affairs/ Affairs/ Communi--cation -cation President President of African of African Group Group President President European European Union Union Market Market President President of Eurasia of Eurasia Group Group President President Latin Latin America America Group Group President President of Pacific of Pacific Group Group
•
• Brand PromotionBrand Promotion •
• Attractive products selectionAttractive products selection
•
• Look and feel 8Look and feel 8
•
• Provision of multimedia product, catalogue pagesProvision of multimedia product, catalogue pages •
• Personal attentionPersonal attention •
• Community relationshipsCommunity relationships
Weak points: Weak points:
•
• Performance and service: that is not easy navigation, shopping and purchasing, andPerformance and service: that is not easy navigation, shopping and purchasing, and
prompt shipping and delivery. prompt shipping and delivery.
•
• Discount pricing is not being offered.Discount pricing is not being offered.
12- VALUE OF THE FIRM 12- VALUE OF THE FIRM Financial and Value Review Financial and Value Review Defensive:
Defensive: 1) Size of firm 1) Size of firm Net
Net worth worth of of $16.92billion$16.92billion 2) Financial condition 2) Financial condition
with a weighted current ratio of 0.94 Coke falls below the required 2, therefore they fail this with a weighted current ratio of 0.94 Coke falls below the required 2, therefore they fail this test.
test.
3) Earnings stability 3) Earnings stability
there has been positive net income
there has been positive net income for the past ten years and they for the past ten years and they 8pass this test.8pass this test. 4) Earnings growth
4) Earnings growth
Earnings are greater than five years ago. P Earnings are greater than five years ago. Pass.ass. Overall
Overall
we would not suggest Coke
we would not suggest Coke being placed in the defensive being placed in the defensive investor’s portfolio at this time.investor’s portfolio at this time. Opinion:
Opinion:
Seeing that currently Coke is trading at a much higher price than our internal valuation we Seeing that currently Coke is trading at a much higher price than our internal valuation we would be skeptical to purchase this security at this time. However, Coke is an excellent firm would be skeptical to purchase this security at this time. However, Coke is an excellent firm with great management, products
with great management, products, , dividdividend end histhistory, and ory, and earninearnings. This gs. This stock we stock we would placewould place on our review list and periodically watch the share price to see if it dips and falls more in line on our review list and periodically watch the share price to see if it dips and falls more in line with what we would be comfortable
World’s leading brand Coca-Cola has strong brand recognition across the globe. The company World’s leading brand Coca-Cola has strong brand recognition across the globe. The company has a leading brand value and a strong brand portfolio. Coca-Cola is one of the leading brands has a leading brand value and a strong brand portfolio. Coca-Cola is one of the leading brands in their top 100 global brands ranking in 2006.8The value of the Coca-Cola was $67,000 in their top 100 global brands ranking in 2006.8The value of the Coca-Cola was $67,000 million in 2006. Coca-Cola ranks well ahead of its close competitor Pepsi which has a ranking million in 2006. Coca-Cola ranks well ahead of its close competitor Pepsi which has a ranking of 22 having a brand value of $12,690 million Furthermore; Coca-Cola owns a large portfolio of 22 having a brand value of $12,690 million Furthermore; Coca-Cola owns a large portfolio of product brands. The compan8y owns four of the top five soft drink brands in the world: of product brands. The compan8y owns four of the top five soft drink brands in the world: Coca-Cola, Diet Coke, Sprite and Fanta. Strong brands allow the company to introduce brand Coca-Cola, Diet Coke, Sprite and Fanta. Strong brands allow the company to introduce brand extensions such as Vanilla Coke, Cherry Coke and Coke with Lemon. Over the years, the extensions such as Vanilla Coke, Cherry Coke and Coke with Lemon. Over the years, the company has made large investments in brand promotions. Consequently, Coca-cola is one of company has made large investments in brand promotions. Consequently, Coca-cola is one of the best recognized global brands. The company’s strong brand value facilitates customer the best recognized global brands. The company’s strong brand value facilitates customer recall and allows Cola to penetrate new m2arkets and consolidate existing ones. recall and allows Cola to penetrate new m2arkets and consolidate existing ones. Coca-Cola Company, The large scale of operations with revenues in excess of $24 billion Coca-Coca-Cola Cola Company, The large scale of operations with revenues in excess of $24 billion Coca-Cola has a large scale of operation. Coca-Cola is the largest manufacturer, distributor and marketer has a large scale of operation. Coca-Cola is the largest manufacturer, distributor and marketer of
of nonnonalalcohcohololic ic bebeververagage e coconcencentntraratetes s and and sysyrurups ps in in ththe e woworlrld. d. CocCoco-o-CoCola la is is seselllliningg trademarked beverage products since the year 1886 in the US. The company currently sells its trademarked beverage products since the year 1886 in the US. The company currently sells its products in more than 200 countries. Of the approximately 52 billion beverage servings of all products in more than 200 countries. Of the approximately 52 billion beverage servings of all types consumed worldwide every day, be8verages bearing trademarks owned by or licensed to types consumed worldwide every day, be8verages bearing trademarks owned by or licensed to Coca-Cola account for more than 1.4 billion. The company’s operations are supported by a Coca-Cola account for more than 1.4 billion. The company’s operations are supported by a strong infrastructure across the world.
strong infrastructure across the world.
Coca-Cola owns and operates 32 principal beverage concentrates and/or syrup manufacturing Coca-Cola owns and operates 32 principal beverage concentrates and/or syrup manufacturing plants located throughout the world. In addition, it owns or has interest in 37 operations with plants located throughout the world. In addition, it owns or has interest in 37 operations with 95 principal beverage bottling and canning plants located outside the US. The company also 95 principal beverage bottling and canning plants located outside the US. The company also ow
owns ns bobottttleled d wawateter r prprodoductuctioion n anand d ststilill l bebeveverarage ge fafacicililitities es as as wewell ll as as a a fafacicilility ty ththatat manufactures juice concentrates. The company’s large scale of operation allows it to feed manufactures juice concentrates. The company’s large scale of operation allows it to feed upcoming markets with relative ease and enhances its revenue generation capacity. Robust upcoming markets with relative ease and enhances its revenue generation capacity. Robust revenue growth in three segments Coca-cola’s revenues recorded a double digit growth, in revenue growth in three segments Coca-cola’s revenues recorded a double digit growth, in three operating segments. These three segments are Latin America, ‘East, South Asia, and three operating segments. These three segments are Latin America, ‘East, South Asia, and Pacif
Pacific Rim’ ic Rim’ and Bottling investmand Bottling investments. Revenues from Latin America grew ents. Revenues from Latin America grew by 20.4% by 20.4% duringduring fiscal 2006, over 2005. During the same period, revenues from ‘East, South Asia, and Pacific fiscal 2006, over 2005. During the same period, revenues from ‘East, South Asia, and Pacific Rim
Rim’ ’ gregrew w by by 10.10.6% 6% whiwhile le revrevenueenues s frofrom m the the botbottlitling ng invinvestestmenments ts segsegmenment t by by 19.919.9%.%. Together, the three segments of Latin America, ‘East, South Asia, and Pacific Rim’ and Together, the three segments of Latin America, ‘East, South Asia, and Pacific Rim’ and bo
bottlttling ing invinvestestmenments, ts, accaccounounted ted for for 34.834.8% % of of tottotal al revrevenuenues es durduring ing fisfiscal cal 20062006. . RobuRobustst revenu
revenues es growtgrowth h raterates s in in these segmentthese segments s contrcontributeibuted d to top-line growth to top-line growth for Coca-Cola duringfor Coca-Cola during 2006.
2006.
Weaknesses Weaknesses
Negative publicity, Company received negative publicity in India during September 2006.The Negative publicity, Company received negative publicity in India during September 2006.The
which could cause cancers, damage the nervous and reproductive systems and reduce bone which could cause cancers, damage the nervous and reproductive systems and reduce bone mineral density. Such negative publicity could adversely impact the company’s brand image mineral density. Such negative publicity could adversely impact the company’s brand image and the demand for Coca-Cola products. This could also have an adverse impact on the and the demand for Coca-Cola products. This could also have an adverse impact on the compan
company’s growth y’s growth prospprospects in ects in the internatithe international onal markemarkets. Sluggish performancts. Sluggish performance e in in NorthNorth America Coca-Cola’s performance in North America was far from robust. North America is America Coca-Cola’s performance in North America was far from robust. North America is Coca-Cola’s core market generating about 30% of total revenues during fiscal 2006. Therefore, Coca-Cola’s core market generating about 30% of total revenues during fiscal 2006. Therefore, a strong performance in North America is important for the compan
a strong performance in North America is important for the compan y.y. Summary in points:
Summary in points: Strengths:
Strengths:
•
• Leading brand value and a strong brand portfolioLeading brand value and a strong brand portfolio •
• Coca-Cola, Diet Coke, Sprite and FantaCoca-Cola, Diet Coke, Sprite and Fanta •
• Large investments in brand promotionsLarge investments in brand promotions •
• sells its products in more than 200 countriessells its products in more than 200 countries •
• Company also owns bottled water production and Company also owns bottled water production and still beverage facilities as well as astill beverage facilities as well as a
facility that manufactures juice concentrates. facility that manufactures juice concentrates.
•
• These three segments are Latin America, ‘East, South These three segments are Latin America, ‘East, South Asia, and Pacific Rim’ andAsia, and Pacific Rim’ and
Bottling investments Bottling investments
•
• Return on total assets increases over the period Return on total assets increases over the period consistently 2005, 06, 07 15.47%,consistently 2005, 06, 07 15.47%,
16.55%, and 16.95% respectively. 16.55%, and 16.95% respectively.
Weaknesses: Weaknesses:
•
• Negative publicity in India Negative publicity in India •
• Inventory turnover decreased by 13.29%Inventory turnover decreased by 13.29% •
• Return on equity decreased by 40.50%Return on equity decreased by 40.50% •
• Sluggish performance in North America Coca-Cola’s performance in North AmericaSluggish performance in North America Coca-Cola’s performance in North America
was far from robust was far from robust
•
13-
13- KEY KEY INTEINTERNARNAL L FFACTORACTORS S Weight Weight RatiRatingng weight Score
weight Score Strengths
Strengths A
Avveerraagge e ccuussttoommeer r ppuurrcchhaassees s iinnccrreeaasseed d bby y 1188..5544%% 00..1111 2 2 00..2222 E
Emmppllooyyeeeemmoorraall 00..0055 33 00..1155 T
Teecchhnniiccaal l ssuuppppoorrt t aannd d rreesseeaarrcch h eeffffiicciieennccyy 00..0088 1 1 00..0088 N
Neewwssppaappeer r aaddvveerrttiisseemmeennt t eexxppeennddiittuurrees s iinnccrreeaasseedd 00..0099 4 4 00..3366 R
Reevveennuuees s ffrroom m ootthheer r sseeggmmeenntts s 00..1144 4 4 00..5566 D
Deebbt t tto o ttoottaal l aasssseet t rraattiio o ddeecclliinnee 00..0055 2 2 00..1100 L
Looccaattiioonns s iin n tthhe e wwoorrlldd 00..1155 4 4 00..2200
Weaknesses Weaknesses
IInnvveennttoorry y ttuurrnnoovveer r ddeeccrreeaasseed d bby y 1133..2299%% 00..1100 3 3 00..3300 R
Reettuurrn n oon n eeqquuiitty y ddoowwn n ddeeccrreeaasseedd 8800..1111 1 1 00..1111 W
Weebbssiittee 00..0044 22 00..0088
S
Suupppplliieer r ttiimme e ddeelliivveerry y 00..0088 1 1 00..0088 T
Toottaall 11..0000 22..2244
Ranked 1 to 4. Low to High respectively. Ranked 1 to 4. Low to High respectively. Current Evaluation: 2.24
Current Evaluation: 2.24 Less than average of 2.50 Less than average of 2.50
Need efficiency in the Management, Marketing, finance, MIS, R & D, and other Need efficiency in the Management, Marketing, finance, MIS, R & D, and other operations..
14
14 - KE- KEY EXTY EXTERNERNAL FACTOR AL FACTOR
S. S. No.
No. FFaaccttoor r WWeeiigghht t RRaatte e SSccoorree
Opportunities
Opportunities
1
1 EEnntteerriinng g iinntto o ssnnaacckks s bbuussiinneesss s ((PPeeppssi i eeaarrnns s 6600% % ffrroom m ssnnaacckkss) ) 00..11000 0 33..550 0 00..3355 2
2 EExxppaannssiioon n bby y ttaakkiinng g oovveer r CCaaddbbuurry y ddiivviissiioon n oor r pprroodduucct t lliinne e 0..000550 0 44..000 0 00..2200 3
3 ExpExpansansion ion by iby intntrodroduciucing neng new rew readyady-to-to-dr-drink ink proproducducts (ts (teatea, cof, coffeefee,, etc.)
etc.)
0.050 4.00 0.20
0.050 4.00 0.20
4
4 EntEnteriering ing into nto or or intintrodroduciucing nng new sew sporports ets evenvents (ts (e.ge.g. Fo. Formurmula Ila I) t) too introduce energy drinks
introduce energy drinks
0.025 3.50 0.09
0.025 3.50 0.09
5
5 StrStrong ong finfinancancial ial and and assassets ets supsupporport avt availailablable woe worldrldwidwide te to tao takeke financing for expansion
financing for expansion
0.015 1.50 0.02
0.015 1.50 0.02
6
6 IntIntrodroduce uce sofsoft drt drink ink witwith foh focus cus of "of "heahealthlthy soy soft dft drinrink" - ek" - elimliminainatete obesity concept
obesity concept
0.075 3.50 0.26
0.075 3.50 0.26
7
7 DivDiversersifiificatcation ion of bof botottlitling bng busiusinesness to s to othother ier indundustrstries ies liklikee pharmaceuticals
pharmaceuticals
0.050 2.50 0.13
0.050 2.50 0.13
8
8 LinLink wik with cth compomputeuter inr interternetnet/ne/netwotwork/rk/celcell gal gaminming bug businsiness ess to fto focuocus ons on youth worldwide - to take
youth worldwide - to take advantage of technologyadvantage of technology
0.025 2.50 0.06 0.025 2.50 0.06 9 9 00..00225 5 33..000 0 00..0088 1 10 0 00..00115 5 33..000 0 00..0055 O
Oppppoorrttuunniittiiees s - - TToottaal l 00..44330 0 11..4433
11
11 HurHurtinting prog producducts cots contantainiining sugng sugar & sugar & sugar-ar-subsubstistituttute base based dred drinkinkss (trend towards more healthy eating & drinking)
(trend towards more healthy eating & drinking)
0.100 4.00 0.40
0.100 4.00 0.40
1
122 IInnccrreeaasse e iin n rraaw w mmaatteerriiaal l ccoosstts s 00..00775 5 33..550 0 00..2266 1
133 GGoovveerrnnmmeennt t ppoolliicciiees s mmaay y hhuurrddlle e iin n eexxppaannssiioon n 00..00775 5 44..000 0 00..3300 1
144 GGoovveerrnnmmeennt t ppoolliicciiees s - - ffoor r ddiisscclloossuurre e oof f hheeaalltth h wwaarrnniinng g 00..11000 0 44..0000 1
155 BBaan n iin n ppuubblliic c sscchhoooolls s dduue e tto o oobbeessiitty y iissssuuees s 00..00775 5 33..5500 1
166 LLaacck k iin n ssnnaacckks s bbuussiinneesss s 00..00775 5 33..550 0 00..2266 17
17 LacLack of shk of sharare in hoe in homelmeland mand markarket (et (refrefer Exer Exhibhibit 8it 8) - ro) - room fom for otor other her brands
brands
0.015 2.00 0.03
0.015 2.00 0.03
18
18 AvaAvailailabilbilitity of puriy of purifiefied wated water (beir (being maing main compn componeonent) in dint) in diffefferenrent partt partss of the world
of the world
0.025 3.50 0.09
0.025 3.50 0.09
19
19 CoCompmpetetititor or mamay y acaccecess ss ununrereacachehed d papartrts s of of ththe e woworlrld d prprioior r to to CoCoca ca CoCola la 0.00.015 15 3.3.50 50 0.0.0505 2
200 SSaalleessmmaan n nnoot t eeqquuiippppeed d wwiitth h ssaallees s oorrddeerriinng g ddeevviiccees s 00..00115 5 22..000 0 00..0033
T
Thhrreeaattss--TToottaall 00..557700 11..4433 G
15
15 - C- COMPETOMPETITORITORSS
•
• Cadbury Schweppes plcCadbury Schweppes plc •
• Nestle S.A. Nestle S.A. •
• PepsiCo, Inc.PepsiCo, Inc. •
• Unilever Unilever •
• Procter & GambleProcter & Gamble •
• Cott CorporationCott Corporation •
• Kraft Foods, Inc.Kraft Foods, Inc. •
• National Grape Cooperative National Grape Cooperative •
• National Beverage Corp. National Beverage Corp. •
• Quilmes Industrial S.A.Quilmes Industrial S.A. •
• Quinenco SAQuinenco SA •
• Yeo Hiap Seng LimitedYeo Hiap Seng Limited •
• Wimm-Bill-Dann Foods OJSCWimm-Bill-Dann Foods OJSC •
• Co-Ro Food A/SCo-Ro Food A/S •
• Rynkeby Foods A/SRynkeby Foods A/S •
• Spadel SASpadel SA •
• Delta Holding S.A.Delta Holding S.A. •
• Spendrups Bryggeri ABSpendrups Bryggeri AB •
• PagoPago •
• Hermann Pfanner Getraenke GmbHHermann Pfanner Getraenke GmbH •
• J Garcia CarrionJ Garcia Carrion •
16- SWOT ANA
16- SWOT ANALLYSISYSIS
SWOT Analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, SWOT Analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats inside a company, project, or a business venture. It involves Opportunities, and Threats inside a company, project, or a business venture. It involves identifying the internal and external factors that are favorable/unfavorable for business to identifying the internal and external factors that are favorable/unfavorable for business to succeed
succeed SWOT
SWOT ANALYSIS ANALYSIS FOR FOR COCA COCA COLA COLA COMPANYCOMPANY STRENGTHS
STRENGTHS 1.
1. BraBrand eqnd equituity/y/imaimage & ge & recrecogniognitiotionn 2.
2. ProProducduct distt distribributiution and woron and worldwldwide neide netwotwork rk 3.
3. SoSolilid finad financnciaial perfl perforormamancence 4.
4. One oOne of thf the wore world'ld's moss most ret recogncognizeized brad brand.nd. 5.
5. ProducProduct diverst diversificaification (wtion (water, jater, juices, suices, soft drioft drinks, spornks, sport drinkt drinks, etc)s, etc) 6.
6. CoCo-o-opeperarate te ididententitity.y. 7
7.. IInnnonovvaattiioonn WEAKNESSES WEAKNESSES 1.
1. CrCredediit rt ratatiingng 2.
2. CustoCustomer concemer concentratntration, partion, particulaicularly in trly in the US (Walhe US (Wal-Mart ac-Mart accounts fcounts for more tor more than 10%han 10% of Coca Cola's business in the US)
of Coca Cola's business in the US) 3.
3. A lot of A lot of loyal loyal Pepsi cPepsi customustomers are ners are not enougot enough loyah loyal Coca Col Coca Cola custla customersomers 4.
4. Does Does not not enjoy enjoy the the number number one one positposition ion in in IndiaIndia, , PakistPakistan.an. OPPURTUNITIES
OPPURTUNITIES 1.
1. PoPossssibible gle grorowiwing dng dememandand.. 2.
2. ExpExpansansion ion – Re– Reachaching ing all all segsegmenments.ts. 3.
3. GlGlobobalaliizazatitionon 4.
4. CatCateriering to Heang to Health Colth Conscnsciouiousnesness of Pess of Peoploplee 5.
5. BoBottttleled wd watater er grgrowowthth 6.
6. AcqAcquisuisitiitions oons of smf smallaller pler playeayers.rs.
THREATS THREATS 1.
1. HeaHealth Dlth Drinrinks – Frks – Fruit uit JuiJuice Coce Compampanieniess 2.
2. Key Key comcompetpetitoitors rs (Pe(Pepsipsi, e, etc)tc) 3.
3. CoCommmmododitity pry pricices ges grorowtwthh 4.
4. ImaImage perge percepceptiotion in certn in certain paain parts of trts of the worhe world.ld. 5.
17- BCG MATRIX
17- BCG MATRIX
S Srr## DDiivviissiioonn RReevveennuueess Percent Percent R Reevveennuueess PPrrooffiittss Percent Percent Profits Profits Percent Percent Market Market Value Value Perc Perc Gro Gro Ra Ra 1 1 AAffrriiccaa $$11,,114400 44..4488%% $$222277..7755 44..0000%% 55 2 2 East South East South Africa & Pacific Africa & PacificRim Rim $ $887722 33..4433%% $$117744..4422 55..0000%% 1100 3 3 EuropeanEuropean Union Union $$44,,336644 1177..1166%% $8$87711..1177 1188..6666%% 4455 4 4 LatinLatin America America $$22,,661166 1100..2299%% $5$52222..2277 1111..2200%% 3355 5 5 North North America America $$77,,002299 2277..6644%% $$11,,556677..7722 2255..8855%% 6600 6 6 North Asia, North Asia, Eurasia & Eurasia & Middle East Middle East $ $44,,112233 1166..2211%% $$882233..3355 1155..0055%% 4400 7 7 BottlingBottling Investment Investment $$55,,119988 2200..4444%% $8$87744..4422 1100..4488%% 2200 8 8 CCoorrppoorraattee $$9933 00..3377%% $$1188..8888 99..7766%% 1155 T Toottaall ---- $$2255,,443355 110000..0000%% $5$5,,007799..9988 110000..0000%%
--BCG MATRIX BCG MATRIX
From our Strategic Alternatives evaluation, we see that it is more attractive to outsource our From our Strategic Alternatives evaluation, we see that it is more attractive to outsource our distribution networks rather than launch a
distribution networks rather than launch a diet line of products. This is in diet line of products. This is in line with their currentline with their current strategic direction, and will allow Pakola to fortify their market reach before introducing new strategic direction, and will allow Pakola to fortify their market reach before introducing new products that will be harder to push
products that will be harder to push through the distribution channels.through the distribution channels.
18 -
18 - STRA
STRATEGI
TEGIC GO
C GOALS
ALS
::The strategic goals are considered when company is thinking of the long-term objectives but at The strategic goals are considered when company is thinking of the long-term objectives but at coca cola strat
coca cola strategic objectegic objectives and goals are set up for three years. ives and goals are set up for three years. These strThese strategiategic goals arec goals are decide by the top management with consultation by the parent company head quartered at decide by the top management with consultation by the parent company head quartered at Singapore. However, they are reviewed every year in the annual meeting to make sure that they Singapore. However, they are reviewed every year in the annual meeting to make sure that they are in line with the changing environment. They are:
are in line with the changing environment. They are:
To To contcontinuinue e to to be be an an orgorganianizatzation ion proprovidviding ing the the qualquality produity products to cts to the valuabthe valuablele customers.
customers.
To select and retain the pTo select and retain the professional people for the organization.rofessional people for the organization.
To project an outstanding corporate image.To project an outstanding corporate image.
To satisfy the customer through extra ordinary service and an excellent service alongTo satisfy the customer through extra ordinary service and an excellent service along with the complete tactical and op
19-TACTICAL GOALS:
19-TACTICAL GOALS:
The top management of the company on an annual basis devises these goals together with the The top management of the company on an annual basis devises these goals together with the consultation of the lower level employees. Then each departmental director is given these consultation of the lower level employees. Then each departmental director is given these annual tasks that then subdivide it on the quarterly or monthly basis to have a proper check to annual tasks that then subdivide it on the quarterly or monthly basis to have a proper check to ensure that these objectives are achieved, mainly through marketing, is the job of the director ensure that these objectives are achieved, mainly through marketing, is the job of the director of each division. For this year, these goals
of each division. For this year, these goals are:are:
To increase the revenues by To increase the revenues by 20% as compared to last year.20% as compared to last year.
To increase the total retail customers by around 1To increase the total retail customers by around 10%.0%.
To increase the market share by 5To increase the market share by 5%.%.
To reactivate the discontinued customers by 30%.To reactivate the discontinued customers by 30%.
20 -
20 - OPERATIONAL GOALS:
OPERATIONAL GOALS:
Operational goals are decided by the top management in consultation with the lower level Operational goals are decided by the top management in consultation with the lower level emp
employloyeesees. . TheThey y are are folfollowlowing ing the the conconcept cept of of manmanageagement ment by by objobjectectiveives s (MB(MBO). O). EacEachh employee is assigned its goals and is told what is expected of him and then he is evaluated on employee is assigned its goals and is told what is expected of him and then he is evaluated on the basis of certain rules and regulations followed evenly by the company.
the basis of certain rules and regulations followed evenly by the company.
For example: a sales man is given following tasks, duties and certain targets: Each salesman For example: a sales man is given following tasks, duties and certain targets: Each salesman has to oversee around 100-125 outlets. The frequency of visits to each outlet depends upon the has to oversee around 100-125 outlets. The frequency of visits to each outlet depends upon the sales of that particular outlet. Normally, a salesman has to visit a single outlet thrice a week i.e. sales of that particular outlet. Normally, a salesman has to visit a single outlet thrice a week i.e. every alternate day. This means that a salesman v
every alternate day. This means that a salesman visits at least 20-30 outlets per day.isits at least 20-30 outlets per day. The salesman has three basic functions to
The salesman has three basic functions to perform.perform.
•
• To find new customers,To find new customers, •
• To retain existing ones,To retain existing ones, •
• To bring back the discontinued accounts.To bring back the discontinued accounts.
Each salesman has to bring in at least three new accounts every month. These may either be Each salesman has to bring in at least three new accounts every month. These may either be new customers or the reactivation of the discontinued
new customers or the reactivation of the discontinued accounts.accounts.
Sales manager is made responsible for the performance and achievement of operational goals Sales manager is made responsible for the performance and achievement of operational goals and is assigned to set certain milestones for the salesman so as to give him proper feedback, and is assigned to set certain milestones for the salesman so as to give him proper feedback, which definit
21- CONCLUSION:
21- CONCLUSION:
The Coca Cola Company has a very rich history and spread over the world, the study in this The Coca Cola Company has a very rich history and spread over the world, the study in this report specially the particular SPACE matrix tells us that Coca Cola Company should pursue report specially the particular SPACE matrix tells us that Coca Cola Company should pursue an aggressive strategy. Coca Cola Company has a strong competitive position in the market an aggressive strategy. Coca Cola Company has a strong competitive position in the market with rapid growth. It needs to use its internal strengths to develop a market penetration and with rapid growth. It needs to use its internal strengths to develop a market penetration and market development strategy. This includes focus on Water and Juices products, and catering market development strategy. This includes focus on Water and Juices products, and catering to health consciousness of people through introduction of different coke flavor and maintaining to health consciousness of people through introduction of different coke flavor and maintaining basic coke flavor. Further company should integrate with other companies, acquisition of basic coke flavor. Further company should integrate with other companies, acquisition of potential competitor businesses, innovation in branding and aggressive marketing strategy can potential competitor businesses, innovation in branding and aggressive marketing strategy can bring long term profitability.
