...Strategy II | Group Report: The Coca-Cola Company A) The Coca-Cola Company: Established in 1886, The Coca Cola Company is the world largest non-alcoholic drinks company, controlling over 21% of soft drinks off-trade ready-to-drink (RTD) volumes, which represents its core business. Its general growth strategy is, essentially, growing through acquisitions and organic growth [1], making small-scale acquisitions in developed countries and investing in major emerging markets. In 2012, The Coca Cola Company achieved the highest market share in Global Soft Drinks industry in Bottled Water (9%), Carbonates (49%), Concentrates (2%), Fruit/Vegetable Juice (11%), ready-to-drink (RTD) coffee (16%), and RTD tea (9%) [2]. Nowadays, Coca-Cola is pursuing an ambitious plan with 8 priorities: Maximize cash flow, attract and retain the best talent, develop the world’s most innovative effective marketing, think and act like an integrated global enterprise, create competitive advantage by fulfilling their live positively commitments, and design and implement the most efficient and effective business system. Scope: Given the multi-brand strategy and how it changes depending on the geographic market, the present analysis will focus on Coca Cola’s core business (soft drinks) in Europe as it gathers the most interesting conditions and elements leading to rapid and industry-disruptive changes. The challenging context, which is analyzed in detail in the second part, creates an opportunity to...
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...3.1 Marketing Strategy 3.2 STP Analysis [pic] Figure: STP process Source: consumerpsychologist.com In marketing strategy Segmenting, Targeting and Positioning (STP) play a vital role which helps Coca-Cola to introduce its product to customer and make them buy through this process they capture value from customer (Kotler- et- al, 2013). To understand the Coca-Cola’s product and its value perception, here is the STP analysis 3.2.1 Segmentation Strategy The competitive market and the changed demands of consumer have made Coca-Cola to satisfy their needs by improving and changing its product. For these reason Coca – cola has been successful to attract the customers and enhance its sales without interrupting other company. Such attempts taken by this company is to introduce new product based on changed demand such are to introduce Diet Coke, Caffeine free Coke. There are multi segmentation strategy which is used by Coca Cola. The marketing mix is used for the every segmentation of Coca cola which has various products as estimated 400 and product mix of 3,500. Geographic segmentation There are different users of Coca Cola such as various ethnic groups, lifestyles, age groups, sexes etc. Examples: Oasis- Juice with various flavour for the people aged between 20-30 and this is served in Ireland and Britian. Coca Cola diet, Coca Cola zero etc. for health concerned people. Climate- the product of Coca Cola is used more in summer than in winter and the...
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...Product Strategy – Coca Cola or Coke from the Coca Cola Company Coca Cola Company is the world’s largest beverages company and the No. 1 provider of sparkling beverages, ready-to-drink in the world. It is an American multinational beverage corporation and manufacturer, retailer and marketer of nonalcoholic beverages which is headquartered in Atlanta, Georgia. The company is best known for its flagship product Coca-Cola which invented in 1886 by pharmacist John Stith Pemberton. The famous product of the company is Coca-Cola or often referred to simply as Coke. The name refers to two of its original ingredients which are kola nuts, a source of caffeine and coca leaves. Coca-Cola or Coke is the most popular and biggest selling carbonated soft drink, as well as the best known brand in the world. According to Edinburgh Evening News (2010), Coca-Cola has become the first brand to top 1 billion in annual UK grocery sales. It was a big amount and proved that Coca-Cola has dominates the market of soft-carbonated drinks. The Coca-Cola Company sells beverages product in more than 200 countries as referred to the company 2005 Annual Report. From the report, it was also stated that out of more than 50 billion beverage servings of all types consumed worldwide everyday drinks containing trademark by Coca Cola and as result from that, Coca-Cola accounted more than half of the company’s total sales. In addition, as according to Jim Fink in his article (Investing Daily, 2012), Coke is one of the...
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...STRATEGIES FOR SUCCESSFUL STRATEGIC, TACTICAL AND OPERATIONAL PLANNING Strategic Planning One of Coca-cola goals is to maximize growth and profitability to create value for shareholders. The efforts to achieve this goal are based on: (1) transforming the commercial models to focus on the customers’ value potential and using a value-based segmentation approach to capture the industry’s value potential (2) implementing multi-segmentation strategies in major markets to target distinct market clusters divided by consumption occasion, competitive intensity and socioeconomic levels (3) implementing well-planned product, packaging and pricing strategies through different distribution channels (4) driving product innovation along different product categories (5) achieving the full operating potential of commercial models and processes to drive operational efficiencies throughout the company. To achieve these goals, it is intend to continue to focus the efforts on, among other initiatives, the following: • working with The Coca-Cola Company to develop a business model to continue exploring and participating in new lines of beverages, extending existing product lines and effectively advertising and marketing our products • developing and expanding the still beverage portfolio through innovation, strategic acquisitions and by entering into agreements to jointly acquire companies with The Coca-Cola Company • expanding bottled water strategy, in conjunction...
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..................4 Micro-Environmental Factors: Industry Analysis...........................................................5 Threat of new entrants –Low Pressure ..................................................................................5 Power of suppliers – Low Pressure.........................................................................................6 Rivalry of existing firms – Medium To High Pressure ............................................................6 Threat of substitute – High Pressure ......................................................................................7 Power of buyers – Low Pressure ............................................................................................7 3. Marketing Strategy .................................................................................................................8 3.1. 3.2. Vision & mission ................................................................................................................8 Marketing, Financial and Societal objectives .............................................................8 Marketing objectives...
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...Competitive Strategies Coca Cola vs. Pepsi By Mohammed Hashim Professor Dr. Phyllis Parise Contemporary Business May 05, 2013 Coca Cola and Pepsi Company are two of the largest producers and distributors of beverage in the world. They manufacture, markets and sells variety of carbonated, non-alcohol beverages. They continued to lead the industry with their commitment to healthier food and maintaining the high quality of their beverages. Pepsi and Coca Cola has been known to have history of competition to maintained share of world mark, where both companies need each other in order to remain competitive. Pepsi is known to offer culture that encourage their employee to be initiative, risk taking and free to pursue their goals. Senior management door are always open to question and ideas from junior employees. Diversity is a way of business to Pepsi, Pepsi President Walter Mack; in his diversification he hired Hennan Smith a black executive to lead an all-black sales team. While Coca Cola general culture is defined as leadership, passion, integrity, and diversity. To attain this Coca Cola Company create a worldwide tam that is full of diverse people, talent and ideas. If we discuss diversity Pepsi has proven to be ahead of Coca Cola, by recruiting people of color and give them early opportunity for advancement. Though Coca Cola has claim that, their workplace diversity program is design to attract, retain, and develop talent. This really did not provide a true count of what...
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...Operations Strategy in a Global Environment Coca-Cola Coca-Cola is a global business that operates on a local scale in every community they do business. Coca-Cola sells more than 1.8 billion servings of their products each day. Coca Cola’s global strategy is huge and the company is considered an international phenomenon. Coca-Cola does business in over 200 countries. Ninety-four percent of the world’s population recognizes the brand. Coca-Cola produces more than 500 brands sold in over 20 million outlets worldwide. Coke was one of the four founding companies that established the Global Business Initiative on Human Rights back in 2009. They helped found this initiative as a way of ramping up respect for human rights across their business model as well as showing respect to their entire global supply chain. Coca Cola’s global strategy is obvious when you visit their web site. They have information describing their global strategy all over their site. Coca-Cola has adopted a transnational approach to their global strategy. The company operates hundreds if not thousands of global operations throughout the world. Coca Cola’s main headquarters is located in the United States and it is where they produce their syrup concentrates. Coke then sells their syrup concentrate to independent bottlers worldwide. The bottlers produce the final drinks by mixing the syrup with filtered water and sweeteners, carbonating them, and then putting them in cans and bottles. The bottlers are the ones...
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...Coca-Cola marketing channel strategy study in China Chapter Coca-Cola Company's development in China Section the basic situation of Coca-Cola Company 1. Coca-Cola and the company's produce Coca-Cola, the world's one hundred years the popularity of the wonderful liquid is from the United States in 1886 in Atlanta, Georgia pharmacist John Dr. Peng Bodun (John S. Pemberton) in the backyard at home, will Carbonated water and sugar and other ingredients mixed in a triangle pot in the invention. "Coca-Cola" is the English name was Pemberton's assistant and partner in accountant named Robinson. Robinson is a classical calligrapher, he considered that 'the two capital C character will look great', so he had to personally write cursive scripts using Spencer's 'Coca-Cola'. 'coca' is the son of refined spices cocoa leaves, 'cola' is the fruit of the cocoa component removed. "Coca-Cola" trademark has not changed over the past century. In 1892, businessman Hom Chandler in 2300 U.S. dollars to buy all the secrets of Coca-Cola franchise, and the creation of Coca-Cola Company. Under his leadership, less than three years Bianba Coca-Cola extended to across the country. In 1899, Benjamin Franklin Thomas andղķʿ??̘ Whitehead signed with the Candler regional development in the United States most of the bottling business contracts. Since then its development momentum will be unstoppable in 1904 developed into a 120 bottling...
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...Coca-Cola Marketing Study Exploring Opportunities In India Agenda • Introduction • Challenges Faced • Opportunities Explored • Planning & Strategy • Actual Implementation & Results • Current Scenario & Future Prospects Coca Cola – The Company Coca Cola Worldwide • It was founded by John Pemberton in 1886 • It is No 1 nonalcoholic beverage company with a market share of with a 52% • It is the largest brand in the world with a brand value of 67 billion dollars. • It has its footmark in more than 200 Countries. Mission • • • • To refresh the World. To inspire moments of Optimism To create Value and Make a Difference The Coca Cola promise simply says - The Coca Cola Company exists to benefit and refresh everyone who is touched by our business. Coca Cola in India • • • • • Entered the India market in early 1790’s. Closed down it operations in India in 1977. Came back to India in 1993. Has a market share of 51%. Created a direct employment of 25,000 people & indirect employment of 1,50,000 people. • Hindustan Coca Cola Beverages is a 100% owned bottler. Challenges Faced Re-entry in India • Late comeback of Coca Cola after PepsiCo had already arrived in Indian market • Pepsi’s head start as a disadvantage for Coca cola’s brand awareness • Acquisition of Parle • “Thumbs Up or Coke” decision • Competing with the help of Thumbs Up in the Cola war Beverages Market in India • No profitability after establishing presence against competition • Marketing...
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...Competitive Strategies Coca-Cola vs. Pepsi Co Joyce Conyers Strayer University 3 May 2013 BUS 508 Online Course Instructor: Dr. Phyllis Parise Dowers Grove Campus Phone Number: (630)874-6128 / (630)456-2348 Cell phone Question: Choose an industry in which two or more companies has historically competed to maintain a significant share of the marketplace. These could include: Coca-Cola and Pepsi-Cola, Apple and Microsoft, GM and Ford Motor Company, or any other well-known pair of competitors. 1. To thoroughly determine how each corporate culture differs from the other, I will start with the history of Coca Cola. Type of the company: Public Website: http://www.cocacola.com Employees: As of 2010, The Coca-Cola Company employed just under 140,000 people worldwide. Let’s began with the background on the Coca-Cola Company history from 1886, when an Atlanta pharmacist, Dr. John Pemberton, began to produce Coca-Cola syrup for sale in fountain drinks. The bottling business however, began in 1899 when two Chattanooga businessmen, Benjamin F. Thomas and Joseph B. Whitehead, secured the exclusive rights to bottle and sell Coca-Cola for most of the United States from The Coca-Cola Company. See “LONNIE, 2003” This agreement stayed in place and operated solely as and independent, local business until the beginning of 1980s with certain bottling franchises began to consolidate. In 1986, The Coca-Cola Company merged some of its company-owned operations...
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...Developing a Global Business Strategy: Coca Cola Expansion Strategy in Sudan and Iran Coca Cola or Coke is one of the leading companies in carbonated soft drinks; headquarter originally in Atlanta, Georgia, where it produces the concentrate and sell it to various licensed bottlers around the world. Coca Cola operates in five continents; Asia, Europe, Africa, Latin America and North America and more than 200 countries. Coca Cola Company has been very successful in international marketing effort. Aggressive advertising, branding and market segmentation have played an important part in the success. It has portrayed itself as fun, playfulness, freedom, lifestyle and the international appeal of Coca Cola was embodied by a 1971 commercial, where a group of young people from all over the world to a hilltop in Italy to sing “I’ll like to buy the world a Coke”. The company has been sponsoring big events, like Olympics, Sea Games, FIFA Cup and International Film Festivals all over the world to create awareness, credibility and to brand itself as world-class company. It also makes big donations to organizations, charities and involvement in the communities. These activities have aided Coca Cola in creating a positive image and consumers’ perception toward the company. For the Coca Cola company expansion, I chose Iran and Sudan since these two countries are not enlisted under the list that the company operates in. in addition, Iran and Sudan each exist in different continents...
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...Coca Cola vs. Pepsi: Competitive Strategies Christoper Gilchrist BUS 508 7/28/2013 Coca Cola and Pepsi marketing are a consumer products company operating in highly competitive markets. They heavily rely on continued demand for products. To generate profit and bonus, they both must sell products that appeal to our customers and to consumers. Any significant changes in consumer preferences or any inability on the part to anticipate or react to such changes could result in reduced demand for our products and erosion of our competitive and financial position (Dyer, Jeffrey H., page 3). The achievements of Pepsi and Coca Cola relies on being able to answer to daily needs of buyers, concerning health and wellness, obesity, product attributes and ingredients, and to broaden into similar categories. Changes in product category consumption or consumer demographics could indicate a deductible demand for the good that’s produced. Consumer preferences could change for many reasons, such as generations being affected by the age (Hoffman, Benjamin, page 17). Socializing has also expanded and became very diverse. Traveling, vacation or leisure activity patterns, weather, seasonal consumption cycles, negative publicity resulting from regulatory action or litigation against companies in our industry, a downturn in economic conditions or taxes specifically targeting the consumption of our products. Any of these changes may reduce consumers’ willingness to purchase the goods of Pepsi...
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...Coca-Cola: International Business Strategy For Globalization Dr. Michael Ba Banutu-Gomez, Professor, Management and Entrepreneurship, William G. Rohrer College of Business Rowan University, Glassboro, NJ ABSTRACT The purpose of this research was to analyze the efficiency of global strategies. This paper identified six key strategies necessary for firms to be successful when expanding globally. These strategies include differentiation, marketing, distribution, collaborative strategies, labor and management strategies, and diversification. Within this analysis, we chose to focus on the Coca-Cola Company because they have proven successful in their international operations and are one of the most recognized brands in the world. We performed an in-depth review of how effectively or ineffectively Coca-Cola has used each of the six strategies. The paper focused on Coca-Cola's operations in the United States, China, Belarus, Peru, and Morocco. The author used electronic journals from the various countries to determine how effective Coca-Cola was in these countries. The paper revealed that Coca-Cola was very successful in implementing strategies regardless of the country. However, the author learned that CocaCola did not effectively utilize all of the strategies in each country. Key Words: Coca-Cola, International Business, Strategy, Globalization, International Marketing, Labor Relations, Distribution, Diversification, Management, Channels, Costs, Gains and Collaboration. INTRODUCTION...
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...Conclusion 8 References 9 Introduction This discusses the details of marketing principles and this assignment has considered Coca cola, a company which is in the soft drinks industry as the base. This includes evaluation of benefits and costs of a company being market oriented and the deviation from its core activities. Further this discusses the micro and macro factors that affect Coca cola and how the marketing decisions should be taken considering these factors. The segmentation aspect which is adopted in Coca cola is discussed here. And effective strategies adopted in a company lead the company to achieve competitive advantage is been highlighted in this assignment. Further Targeting strategies, buyer behaviours that impact Coca cola is been discussed along with proposition for new positioning of the beverages of Coca cola. The distribution also plays a major part in a company’s marketing activities. And the strategies used by Coca cola are discussed here with the setting of prices with the aim of achieving objectives and the promotional activities adopted are discussed here. Additional elements of marketing mix, and the different strategies that should be adopted when selling to businesses rather than customers and the strategies that are used in international marketing are discussed in this assignment. About Coca Cola The company Coca Cola started in 1886, in Atlanta and this drink was initially made as a trial and to fulfill the curiosity of a pharmacist in Atlanta...
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...still brands 15 billion dollar portfolio 200 countries 1.7 billion servings a day. Coca Cola Advertising Story 1900 Coca Cola strategy LOVEBRAND 3 A’s AVAILABILITY Distribution network AFFORDABILITY Product pricing ACCEPTABILITY convincing the customer to buy OUR ANALYSIS USA RUSSIA CHINA KENYA 1. TYPES OF MEDIA • MASS MEDIA • NON MEDIA 2. COPY STRATEGY • Values • Messages • Casting Coca Cola in the USA Symbol of America Medias for advertising ? • Mass media Advertising – Television – Billboard – Web • Non media advertising – Sponsoring – Event promotion • • ADVERTISING 1886 “Drink Coca-Cola” 1900 “Deliciously refreshing” 1904 “Coca-Cola is a delightful, palatable, healthful beverage” 1982 “The antidote for civilization” – Coke slogans for the past 100+ years SLOGANS • 1993 “Taste it all.” • 1998 “Thirsty for life? Drink Coca-Cola!” • 2000 “Coca-Cola Enjoy” • 2001 “Life tastes good” • 2009 “Open Happiness” • 2010 “Twist The Cap To Refreshment” • • • 1986 –“Like a Rock” (Inspired by the Bob Seger song “Like a Rock”) • 2011 “Life Begins Here” The advertising messages. Billboarding The american way of life… TV commercials • The opposition between good and evil http://www.cultur epub.fr/videos/c oca-colavideogame TV commercials • Happiness, peace, enjoy http://www.culturepub.fr/vi deos/coca-cola-friendlyman The advertising messages Sponsoring • Va l u e s o f s p o r t ( te a m s...
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