ANALYSIS FOR EXPERENTIAL
Coca-Cola Company is the world's largest
nonalcoholic beverage company.
It offers a portfolio of world class quality
sparkling and still beverages, starting with Coca-
Cola® and extending through over 400 soft drinks,
juices, teas, coffees, waters, sports and energy
drinks that refresh, hydrate, nourish, relax and
Within our more than 400 brands are nearly 2,400
beverage products. Four of the world's top-five
soft-drink brands are ours: Coca-Cola, Diet Coke®,
Sprite® and Fanta®. Thums Up and Limca, which
are formulated to appeal to local cultures and
With operations in more than 200 countries,
we have a diverse workforce of approximately
55,000 Company employees.
Our family of beverages accounts for
approximately 1.3 billion servings worldwide of
the 50 billion beverage servings consumed
every day-a figure that indicates both
strength and growth opportunity of the
The Company strives continuously to expand
beverage offerings to meet consumers'
evolving needs and tastes.
Coca-Cola wasinvented in May 1886
by Dr. John S. Pemberton in Atlanta,
Thename 'Coca-Cola' was suggested
by Dr. Pemberton's bookkeeper,
Frank Robinson. He kept the name
Coca-Cola in the flowing script that is
In 1891, Atlanta entrepreneur Asa G.
Candler had acquired complete ownership of
the Coca-Cola business, whose marketing
tactics led Coke to its dominance of the
world soft drink market throughout the
20th century. Within four years, his
merchandising flair helped expand
consumption of Coca-Cola to every state and
Under Robert W. Woodruff six decades of
leadership , The Coca-Cola Company took
the business to unrivaled heights of
commercial success, making Coca-Cola an
institution the world over.
The trademark "Coca-Cola" was registered
with the U.S. Patent and Trademark Office in
1893, followed by "Coke" in 1945. The unique
contour bottle, familiar to consumers
everywhere, was granted registration as a
trademark by the U.S. Patent and Trademark
Office in 1977, an honor awarded very few
Everything we do is inspired by our
To Refresh the World... in body,
mind, and spirit.
To Inspire Moments of
Optimism... through our brands and
To Create Value and Make a
Difference... everywhere we
To achieve sustainable growth, we have established a
vision with clear goals.
Profit: Maximizing return to shareowners while being
mindful of our overall responsibilities.
People: Being a great place to work where people are
inspired to be the best they can be.
Portfolio: Bringing to the world a portfolio of
beverage brands that anticipate and satisfy peoples’
desires and needs.
Partners: Nurturing a winning network of partners
and building mutual loyalty.
Planet: Being a responsible global citizen that makes a
We are guided by shared values that we will live by as a
company and as individuals.
Leadership: "The courage to shape a better future"
Passion: "Committed in heart and mind"
Integrity: "Be real"
Accountability: "If it is to be, it’s up to me"
Collaboration: "Leverage collective genius"
Innovation: "Seek, imagine, create, delight"
Quality: "What we do, we do well"
Manifesto For Growth (5 P’s)
Manifesto represents the beginning of a journey which, will
never end. It is a foundation upon which will build sustainable
growth as each and every member of the Coca-Cola system
recognizes and invests in company’s rich long-term
opportunities, while also accepting a renewed responsibility
for meeting its short-term commitments.
People - Coke inspires to be a great work
place, where people are inspired to be the
best they can be.
Profits - Coke maximizes return to
shareholders while being mindful of overall
Portfolio - Coke brings the global marketplace
beverage brands that anticipate &satisfy
people’s desire & needs.
Partners - Coke actively nurtures a winning
network of beverage and bottling partners,
building mutual loyalty.
Planet - Coke acts as a responsible citizen,
focus on environmental efforts making making
a difference wherever they engage.
BRANDS OF COCA COLA
The Coca-Cola Global System
Global business is organized into six
geographic Operating Groups
1. Africa Group
2. Pacific Group
3. European Union Group
4. Latin America Group
5. Eurasia Group
6. North America Group
The Rejuvenation division offers a range of drinks
designed to improve how people feel physically and
mentally. Products include ready-to-drink coffees,
teas and herbal beverages.
The Health & Nutrition division produces a range of
products to promote health and well being. In the US,
its products encompass Minute Maid Premium 100%
juices, Hi-C fruit drinks and Minute Maid Coolers.
The Replenishment division offers a range of water
products around the world. The division also produces a
range of energy drinks, such as PowerAde.
Elsewhere in the world, the company has created
other products designed to meet the needs of local
consumers and communities. For example, in Chile, it
developed Bibo (Kapo) because mothers wanted a
healthy, noncarbonated drink for their children .
Coca-Cola System - Production
The Coca-Cola formula is The Coca-Cola Company's
secret recipe for Coca-Cola. As a publicity
marketing strategy started by David W. Woodruff,
the company presents the formula as a closely held
trade secret known only to a few employees.
The actual production and distribution of Coca-Cola
follows a franchising model. The Coca-Cola Company
only produces a syrup concentrate, which it sells to
various bottlers throughout the world who hold
Coca-Cola franchises for one or more geographical
areas. The bottlers produce the final drink by
mixing the syrup with filtered water and sugar (or
artificial sweeteners)and then carbonate it before
filling it into cans and bottles, which the bottlers
then sell and distribute to retail stores, vending
machines, restaurants and food service distributors
The Coca-Cola Company and bottling partners are
not one and the same from a legal or managerial
perspective. The Company's business is focused on
creating and marketing brands and trademarks, while
Coca-Cola bottling companies produce and package the
finished beverage products and then sell and distribute
them to retail and wholesale customers.
These bottling partners range from international and
publicly traded businesses to small, family-owned
operations. Their governance and management structures
are separate from those of The Coca-Cola Company.
The company’s bottling relationships can be divided into
Bottlers in which coca cola company have invested and
have a non-controlling ownership interest
Independently owned bottlers in which the company
have no ownership interest
Bottlers in which the company have invested and have
a controlling ownership interest
The Coca-Cola Company owns minority shares in some of its
largest franchisees, like Coca-Cola Enterprises, Coca-Cola
Amatil, Coca-Cola Hellenic Bottling Company (CCHBC) and
Coca-Cola FEMSA, but fully independent bottlers produce
almost half of the volume sold in the world. Since
independent bottlers add sugar and sweeteners, the
sweetness of the drink differs in various parts of the
world, to cater for local tastes.
Suppliers include those business partners who supply
system with materials, including ingredients, packaging
and machinery as well as goods and services. At a
minimum, all authorized and direct suppliers must
comply with all applicable laws and regulations, including
those concerning child labor, forced labor, abuse of
labor, freedom of association and collective bargaining,
discrimination, wages and benefits, working hours and
overtime, health and safety, and environmental
Customers include large, international
chains of retailers and restaurants, as well
as small, independent businesses. Some of
our customers are major corporations as
globally familiar as the name Coca-Cola;
others are the corner market or the local
Departments of Coca Cola
Every organization is made up of different
departments, each of these departments help
Coca Cola achieve their objectives. As Coca Cola is
a large multinational company, the amounts of
departments are huge. Each country has their own
Head Office and departments. Coca Cola is
geographically split into five geographic operating
segments, also known as strategic business units
(SBU's). The five SBU's are North America,
Africa, Asia, Europe, Eurasia and Middle East and
finally Latin America. If all these departments
perform in the correct way then that will continue
the success of Coca Cola.
Coke In India
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 Exchange
Regulation Act (FERA) which governed the
operations of foreign companies in India
After a 16-years absence, Coca-Cola returned to
India in 1993
Coca-Cola India started business, including new
production facilities, wastewater treatment plants,
distribution systems and marketing equipment.
Coca-Cola system has invested more than US$ 1
billion in India
Coca-Cola is one of the country's top international
It employs approximately 6,000 people, and indirectly creates
employment for more than 125,000 people in related industries
through vast procurement, supply and distribution system
The Coca-Cola system in India comprises 27 wholly-owned company-
owned bottling operations and another 17 franchisee-owned bottling
The complexity of the Indian market is reflected in the distribution
fleet, which includes 10-tonne trucks, open-bay three-wheelers that
can navigate the narrow alleyways of Indian cities, and trademarked
tricycles and pushcarts.
Coca-Cola serves in India some of the most recalled brands across
the world, which include names such as Coca-Cola, Diet Coke, Sprite,
Fanta, along with the Schweppes product range.
In 2002, Coca-Cola India (CCI) launched a new advertisement
campaign featuring leading bollywood actor - Aamir Khan. The
advertisement with the tag line - 'Thanda Matlab Coca-Cola ' was
targeted at rural and semi-urban consumers.
Rural marketing strategy
CCI's rural marketing strategy was based on three A's -
Availability, Affordability and Acceptability.
The company opted for a hub and spoke distribution system to
market in rural areas.( stock was transported from the bottling
plants to hubs and then from hubs, the stock was transported
to spokes which were situated in small towns.)
Large trucks for transporting stock from bottling plants to
hubs and medium commercial vehicles transported the stock
from the hubs to spokes.stock from spokes to village retailers
the company utilized auto rickshaws and cycles.
It made an investment of Rs 7 million to meet rural demand .
Through its rural distribution initiatives, CCI was able to
increase its presence in rural areas from a coverage of 81,383
villages in 2001 to 1,58,342 villages in August 2003
Porter's generic competitive strategies:
* Strong brand name
* Co-operate identity
* Global distribution
* Does not enjoy the number one position in
* Advertising was not clear and was
misunderstood in India
* Possible growing demand
* Expansion – Reaching all segments
* Catering to Health Conciouness of People
* Health Drinks – Fruit Juice Companies
Suggestion To Stay ahead Of
The three main ways are through innovation,
relations or reputation.
First of all innovation can be used. This may
certainly give coca cola competitive advantage
because it introduces a new product, which
many people will want to try
People will like to purchase the commodity
even though price is high because no
substitutes are available. It may also give coca
cola brand loyalty which means customers will
stay loyal to them no matter what happens.
Many of coca cola’s plastic bottles are
recycled and as a result less resources are
lost and costs decrease. This makes profits
It attracts a new market segment
This will mean they will have a higher revenue
increasing long term profitability.
Another factor is marketing. This is a very
important factor for coca cola. In order for the
company to maintain its strong market position,
Coca Cola needs to continuously strengthen its
brand to maintain brand loyalty and positive
responses and differentiate itself
from its competitors
If coca cola used strong marketing it may raise
barriers to entry, thus decreasing the threat of
new entrants to the industry.
Coca Cola's brand represents quality, taste and
excitement to the market, qualities that remain
unmatched by the company's competitors, thus
severely reducing any threat of being
The message that is conveyed through Coco
Cola's advertisements implies that no matter
what personality or what ever kind of
lifestyle someone has drinking cola boosts
their confidence as well as allowing them to
get pleasure from every day activities that
are considered as being dull.
This gives a bright, bubbly, lot of energy,
loving and not to mention lively atmosphere.
The white meaning a loyal, pure and