Coca-Cola is a carbonated soft drink sold in stores, restaurants and vending machines internationally. The coca-cola company head office is situated in Atlanta, Georgia and is often recognised as coke. It was invented by Dr John S Pemberton. Coca-cola enterprise is the world's largest marketer, producer, and distributor of coca-cola products. The company claims that the drink is sold in more than two hundred countries. Coca-cola company has got around seventy two thousand employs in Atlanta.
The company was formed in 1886 and it has produced different flavours and brands which are very popular across the world. The company and its subsidiaries employ nearly thirty one thousand people around the world. The coca-cola company manufactures syrups, concentrates and beverage bases for coca-cola. Thousands of consumers visit fast food restaurants every day and coke feels that it is very important to serve its drink in these outlets such as McDonalds, KFC, Burger king, Dominos Pizza etc.
The company primarily produces bottles and distributes the coca-cola trademark beverages such as coke, fanta, sprite, Dr Pepper and several other beverage brands. Coca-cola enterprises also consists of regular and zero calorie beverage catagories including energy drinks, still and sparkling waters, juices, sports drinks, milk based products, fruit drinks, coffee based beverages and teas.
Coca-cola enterprises run its business mainly with the agreements of coca-cola company. The company achieved exclusive rights with these agreements to market, produce and distribute beverage products of the coca-cola company in authorized containers in specified territories. Various other useful transactions and agreements with the coca-cola company include arrangements for cooperative marketing, advertising expenditures, purchase of sweeteners and acquisitions of bottling territories from time to time. The company has perpetual bottling rights within the US for products with the name coca-cola.
In North America, coca-cola enterprises deliver most of its product directly to retailers for sale to the ultimate consumers. In Europe, the company's product is principally distributed to its customer's central warehouses and through wholesalers who deliver to retailers.
Environments and impacts of the coca-cola company
As coca-cola operates in more than two hundred countries, the coke is in a position to contribute to the economic vitality of even the most remote communities around the world. During 2006-2008 the major areas of impact were the following sectors in billions. Income taxes were high in the year 2007 with 1.9billion when compared with years 2006 and 2008. It was 1.5billion in 2006 and 1.6billion in 2008.
Goods were purchased more in the year 2008 with 11.4billion. It was 8.2billion in 2006 and 10.4billion in 2007.
Local capital expenditures were high during 2008 with 2billion, however it was 1.6 in 2007 and 1.4billion in 2006 respectively.
With aspects of shareowner dividends it is 2.9billion in the year 2006, 3.1 in 2007 and maximum in 2008 with 3.5billion.
With regards to global salaries and benefits, it was maximum in the year 2008 with 4.3billion, 4.2 in 2007 and just 3.4billion in 2006.
The total indirect economic impacts of the coca-cola system are significantly greater than the figures present in 2008/2009 sustainability. The coca-cola system has more than nine hundred plants around the world with the usage of desirable ingredients and raw materials. It also accommodates employs with different communities and cultures, in addition bottling partners employ hundreds of people around the world and are committed to supporting community investment programs. The global business of coca-cola stimulates job creation through out the value cycle. The company contribute to the economic success of each community by employing local people, paying taxes to the government, paying suppliers for goods, services and capital equipment and supporting community investment programs.
Past independent studies on the economic impact of coca-cola business in Asia, Africa and Eastern Europe have consistently shown that for every job in the coca-cola system, an average of ten more jobs are supported in local communities.
Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchange and satisfy individual and organisational objectives (AMA, 1985).
With its marketing strategy coca-cola secured more than 20million customers around the world. Beverages are sold to the consumers through retailers, convenience stores, theatres, kiosks and vendors. Marketing includes four p's and seven p's which is called as marketing mix. Marketing mix is probably the most crucial stage of marketing planning process.
- Product- Products are the finished items that are marketed to the consumers. In marketing means product refers to services such as holidays or movie, where customer can enjoy the benefits without owing the result of the service. Consumers prefer coca-cola because of its high standards and high quality techniques. Coca-cola provides helpline and phone services to the consumers who are not satisfied with product and wishes to give feedback on it.
- Price- Price is the important part of the marketing mix as it can effect both the supply and demand for coca-cola. Price plays a vital role in the customer's decision to buy the product. Price strategies are important to coca-cola, because the price determines the amount of sales and profit per unit sold. Businesses have to set a price that is attractive to their customers and provides the business with good levels of profit. Pricing methods include cost based pricing, market based pricing and competition based pricing.
- Place- The place refers to the distribution of the product, the steps involved in taking the product to the market. The main step in this process is the respective distribution channels that coca-cola has elected to transport and sell its product. It is apparent from the popularity of coca-cola that the business in the past used the method of intensive distribution as the product is available at every possible outlet.
- Promotion- Promotion is the p of the marketing mix designed to inform the marketplace about who you are, how good the product is and where they can buy it. Promotion is also used to convince the customers to try a new product through personal selling; advertising etc. coca-cola has used media as the main form of promotion for extensive range of products.
- People- Appropriate staff and people are very essential for any service provision.
Selecting the suitable people for the jobs and training them effectively in the delivery of their service, so that the organisation can obtain a form of competitive advantage. Consumers make judgements and deliver perceptions of the service based on the employees they interact with.
- Process- It is linked with the systems, used to assist the organisation in delivering the service. Process that allows obtaining an efficient service delivery. For ex- Banks that send out credit cards automatically when their customer's old card expires, it needs an efficient process to identify expiry dates and renewal. Thereby it ensures consumer loyalty and confidence in the company.
- Physical evidence- Physical evidence is the element of the service mix which allows the consumer again to make judgements on the organisation. Physical evidence is concerned like when we walk into a restaurant we expect clean and friendly environment.
Competitors of Coca-cola:
The major competitors of Coca-Cola are
- Asahi Breweries,Ltd.
- Cadbury Schweppes plc,
- General Mills,Inc.
- Nestle S.A.
- Unilever and the other
Although coca-cola is very famous for its brand perspectives in the market environment, it has got number of competitors. One of the global competitors of coca-cola is the pepsi; it outsells coca-cola in some markets. Pepsi is usually second to coke in sales. French brand Mecca cola and British brand Qibla cola,
popular in the Middle East, are competitors to coca-cola. In Peru, Inca cola outsells coca-cola, which led the coca-cola company to purchase the brand in 1999. In India coca-cola ranked third behind pepsi and local drink Thumsup. The coca-cola company purchased Thumsup in 1993. In Slovenia, the locally produced cockta is a major competitor to coca-cola. In Israel RC cola is an inexpensive competitor. Classiko cola, made by Tiko group, the largest manufacturing company in Madagascar, is a serious competitor to coca-cola in many regions.
Partners of coca-cola
Coca-cola Company is linked with 300 bottling partners globally, together which is called the coca-cola system. Coca-cola companies business is concerned with creating and marketing the brands and trademarks, while coca-cola bottling companies produce and package the finished beverage products to sell and distribute them to retail and wholesale customers. Management of coca-cola bottling partners are separate from those of the coca-cola company.
Coca-cola enterprises are one of the largest marketer, distributor, and producer of bottle and can liquid non-alcoholic refreshment.
- Strong brand image increases customer base.
- Robust distribution and production facilities.
- Inorganic growth through acquisition.
- Owning Odwalla, natural juice company.
- Customer concentration could impact the bargaining power of the company.
- Most products of the coca-cola are seasonal.
- Sluggish performance in North America.
- Decline in cash from operating activities.
- Growing bottled water market.
- Operational initiative for cost saving.
- By increasing health consciousness, the company would increase demand for its low calorie products.
- Growing Hispanic population in US.
- Sluggish growth of carbonated beverages.
- Intense competition.
- Volatile economy could impact sales of the company's products.
- Stringent regulations and legislations.
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Coca Cola Company
Coca Cola Company is basically the world wide largest marketer, manufacturer and distributor of non-alcoholic beverages. It manufactured more than 3600 products in which it contains water, tea, juices, coffee, energy drinks and many more.
As the competition is very much strong of soft drinks in the market sector it is emergent for coca cola to create uniqueness to stand out. This report will demonstrate thoroughly how the coca cola company sustains competitive effects by its product after the analysis of market segmentation differentiation. Besides target market and behaviour of the customer will be revealed on foundation of secondary and primary data. The mix product of marketing will be clearly illustrated in the third section, followed by explain about new launch products. Moreover financial review is mentioned in this report, in order to estimate the cost in the process of marketing and ensure about break point taken into account.
COCA COLA COMPANY is a private and individual brand. The coca cola products (Coca-Cola and Sprite) are company own featured products. Before launching the products in the market, this report evaluates the FMCG market as well as customer group. It uses customer purchasing behaviour and competitors in its first and second data. Finally demand and cost are highlighted from the knowledge of finance and economics.
ANALYSIS OF FMCG MARKET
Fast Moving Consumer Goods (FMCG) include every product like food and non food product. The price of the products is very low with high quality. FMCG market consist of package food, health goods, drinks, cosmetics all are household goods. In Australia there is more than 80% market share of FMCG sector. Non-alcoholic beverages is a sector of FMCG market which was valued $80 billion and has a shared of 17% in non-alcoholic beverages in Australia. Firstly, the customer loyalty of brand is high in FMCG market which means it is not easier to change the brand when they buy FMCG products.
THE COCA COLA COMPANY has more than 400 brands of drink designed in a way to satisfy the consumer. They have different drinks of all ages, sexes, races etc. This company able to sell all of the product worldwide and the success is unbelievable. In today's society people are looking forward to have a healthy lives and healthy products. Coca cola has best in produce great taste which is having low fat and low calorie like diet coke and coke zero. The most important news about coca cola in Australia is that 50% people in Australia has never drunk the cola-cola.
In addition primary research illustrates that the people drink coca cola two times in a day which are more habitual of drinking coca cola and its product. People have different standards when they purchase non alcoholic drinks because they need to consider about the quality, and how much energy it contains. Respondents are basically gave more importance to that product which is having best quality and have lower price.
In addition, second research is in Australia people are very much attracted towards the alcoholic drinks so this is also the reason why soft drinks are not purchased very much by the consumer.
Coca-Cola Amatil's managing director is Terry Davis. And the board chairman is David Gonski. CCA has facilities all over the Australia with key sites at northmead, north Sydney, queensland, Victoria, kewdale.Coca cola was established in 1986 and every franchise has a strong heritage in traditions of coca cola. This company traces its beginning to1886 when Dr. John Pemberton (an Atlanta pharmacist) began to produce syrup of coca cola in sale. Then bottling business began in 1899 when two Chattanooga businessman ( Benjamin F. Thomas and Joseph B.Whitehead) secured rights to bottle and sell coca cola in the U.S from the coca cola company. Coca cola bottling system continued their local business until 1980 and after that they consolidate to began franchises of bottling. In 1986 they merged some of their company. In 1986 the total unit sales were 880000 $. In december 1991 there was a merge between coca cola enterprises and Johnston coca cola bottling group. After that senior management team of Johnston take the responsibility of the business and there is a dramatic change in the business and the sales reached upto 1.4 billion in 1992 and total revenues were 5 billion at the end of the year.
In 1992, coca cola company was the largest soft drink company in the world. Everyyear 800000000 coke were sold in the U.S alone.
MARKET SEGMENTATION, TARGETTING AND POSITIONING
Coca cola serves its product using market mass technique. But there are some minor factors through which we can target the coca cola products and target the customers somehow. These factors are mentioned below:
Targeting Specific Segmentations
A) Geographic segmentation internationally :
Coca cola segments its products country wise and region wise. The vital important things is taste and quality because in each and every country there is a different taste and income level of earning of people.
B) CLIMATE :
Coca cola mainly focuses on hot areas of the world. Because there is more requirement of soft drink in hot areas. They earned almost double income in summers as compared to winters.
Chief executive of coca cola Terry Davis said that the trading environment in Australia is always remains challenging although it improved some momentum in lead to Christmas.
Due to a lot of competition in the Australian market there is a lot pressure on coca cola due to several brands like pepsi. They always give discounted offer and always organised a lot of schemes which affect a lot on the sales of the coca cola.
CCA said that it is expected to record volume and revenue (growth) for the half year of December and stuck only 4 to 5 percent growth of profit till the end of the December 31 which is not a good growth rate for the company.
Reference: By Henry Lin ' October 17th, 2012
The very first thing which came in mind when we talk about the perfect substitutes of Coca Cola is only Pepsi does not matter whether the taste and cost is almost same in all over the world.
However, if we compare market share in Australia then Coca Cola is more preferable as compared to Pepsi. It is estimated that Coca Cola outsells is approximately three times more in Australia and New Zealand supermarkets and five to six times more in the whole cola market.
These two had a depressing past, where Pepsi went bankrupt twice until being bought by LOFT INC, A CANDY MANUFACTURER. In 1922 and 1933 coca cola was offered the opportunity to purchase Pepsi but declined everytime because coca cola was enjoying the monopoly and market power.
DIAGRAM SHOW ABOUT THE COKE DOMINANCE CHAIN
Reference: By Henry Lin ' October 17th, 2012
Firstly, noticed that coke is available everywhere as compared to Pepsi. Coke is available in all outlets, supermarkets, stores while Pepsi is available in mini supermarkets foodworks. The list of places of Pepsi is very hard to find because all popular brand uses coke to sell like McDonald, subway, KFC etc.
It is easy to find Pepsi in 7 eleven, supermarkets and petrol stations. Distance is also the main and important advantage (factor) of selling coke because if you want to drink some soft drink and coke you can find easily everywhere and for Pepsi if you have to go 500 metres away from that place then you will not go and purchase coke and drink, so this also the main advantage which help the coke to grow up their sales.
COMPARISON WITH COMPETITORS (PRODUCT DIFFERENTIATION/PRICING DIFFERENTIATION, SALES, INCOMES STATEMENT):
Reference: HOOVERS A D&B COMPANY
Coke is the famous product of non-alcoholic beverage company and it is one on the top world's most recognizable brands. Coca cola make a business of about 16 billion dollar including soft drinks Coca Cola, Diet Coke, Fanta and Sprite. It is the largest beverage distribution system. Coca cola trade in more than 200 countries of their product.
THESE ARE THE FIVE QUALITY OF COCA-COLA COMPANY WHICH HELP THE COMPANY TO MAINTAIN ITS UNIQUENESS ALL OVER The WORLD TO DIFFERENTIATE FROM ITS COMPETITORS
Coke is invented in 1886 by Atlanta pharmacist John Pemberton
There are mainly three competitors of Coca-Cola
2) NESTLE S.A.
3) Dr. PEPPER SNAPPLE GROUP, INC.
New Product Development and Launch
The aim of the promotion is to increase the sales of the product, to decrease the price of the running cost of the product which will not vary from other products. To remain in competition they should be more resistant. In addition, the manager of the company should always try to make marketing strategies because to remain consistent in the competition. Specially the main aim of the company promotion is to boost up of the sales of the company. Promotion helps the company to maintain the relations of company to customer for a long period of time. Advertising helps the company to give the whole details about the product in a very descent manner so that the customer attracted towards it. There are a lot of things which help the company like their logo and price and availability of the product. Mass media is also very important factor of promotion like newspaper, radio, magazine and internet and others also.
Reference: Insights Controller,
There are some social networking sites also which help the company a lot in doing the promotion of their products and people attracted more towards them because now a day people eat their food or not does not matter but they are very much attracted towards these social networking sites due to best communication way in the world.
Price is the only thing which affects the company profit and survival. Before setting the price of the product company must be aware of the customer perceived value (how much people can spend the money on that product). Like the coke product of coca cola if they set the price near about $5 then automatically, the sales of the company should go down. The only reason was the company should set their price keep in mind about their competitors. The company should set the price in which the quality does not affect and sales also increase and profit also.
The important thing of selling the product of the company and earn a lot of profit is place. If the company sell their product in retail market then they can earn more profit as compared to wholesale market. The product sold to direct customers is more profitable. Depending upon the customer behaviour set the rate of the product according to the place and situation of that suburb. The best method to sell the product according to me is to create official website and customer should go and buy the product from there as easier.
People, Process and Physical Evidence
The company always concern about the people both inside and outside of the company business. Firstly, for the inside people, company should recruit and select proper people for the different departments. It is the responsibility of the company to provide the safe, working and learning environment in the company as well as organise some training programmes and motivate them for their loyalty towards the company. Now with the outside people company should behave properly with their suppliers, retailers and brand conscious customers and maintain the good relations with them. Company should open customer service if any customer is having any queries then he should directly go there and clear his query.
Customer service always plays a vital role in the company. The aim of the customer service is to maintain healthy relation between company and its customers (suppliers and retailers). It deals with the customers who are having complaints. It build long relationship with the customers and company. In addition the stress of managing, producing and selling is also responsible on customer service. Customer service focuses on every step of the company.
Physical evidence is those which help customers to evaluate the product before they purchase it. In short the company does not have its headquarters and prestige offices because of less investment. However if the company focuses on packaging, internet website and promotion coupon, even then the company will able to build their image in a good corporate world.
SWOT ANALYSIS FOR COCA COLA
DATE 10 APRIL 2014
A) Internal Positive Strengths
1) Low capital investment at the starting of the business
2) Growing and emerging sector
3) Huge appreciation from customer
4) Dedicated R and D sector for improving standard
5) Brand recognization is more at that time
6) Easy to set up
7) Easy to maintain
8) Advertisement really raise above the acceptance level of the business
9) Marketing strategy of capturing the mind of individual works
10) Mobility, Home Delivery, Transportation raise it very high speed
B) Internal Negative Weakness
1) Dedicated R and D sector really quiet costlier
2) Marketing strategy is difficult because cannot implement the conventional strategy
3) Know about taste of individual is quiet difficult
4) Maintaining the standard all over the globe is really difficult task
5) Dedicated market teams followed by the business so starting is little costlier for co. Owner
6) Imported goods really add a price factor on that so become expensive
7) Maintaining staff salary is quiet issue so self service is introduced
8) Brand image really needs more and more to maintain it
9) Campaigns, advertisement is costlier
10) Supply chain maintainence is such a issue
C) External Positive Opportunities
1) Globally acceptance is really a good opportunity to spread the business at global level
2) Advertise campaigns golf sports really give opportune to business
3) Easy to maintain
4) Easy to implement and brand recognition is opportunity for the business
5) Franchise and local input make the business more mobile and easy in a loop
6) Coca cola has the famous strategies prove all over the globe
7) To survive in cut throat any competition really improvement to time prove asset to the company
8) Maintainence and improvement of standards is such a thing of looking at global acceptance
11) Capital raise method really worthfull
D) External Negative Threats
1) Huge competitors
2) High capital requirement for business expansion
3) Globally diversity
4) Various standards to maintain various socities
5) Supply chain management
6) Funding, raising of investment and capital is such a threat for the co.
7) Maintaining the various products with adequate standards should be appropriate
8) For entering into the restauring sector the different quality check, standard and licencing is such a loophole for spreading the business
9) Local locators and movers is such a tough competitors to cut the consumer and associate them with their particular brand
10) Maintaining the social, religious equity to make a chain at various loop is also a such a issue for the co.
FORECAST AND FINANCIALS
Source: HOOVERS A D AND B COMPANY
SALES REPORT OF COCA-COLA
Company Name PUBLIC- (TICKER: KO)
Market Value 168393.23
as of 2014-04-04
Fiscal Year-End Dec
2013 Sales (mil) 46,854
2013 Employees 130,600
Employee Growth Percent -13.45%
Assets (mil) 90,055
Net Income Growth Percent -4.82%
Sales Growth Percent -2.42%
FINANCIAL STATEMENT OF COCA-COLA COMPANY
Income statement 2013 2012 2011 2010 2009
Income Statement 2013 2012 2011 2010 220092222009
Revenue $46,854 $48,017 $46,542 $35,119 $30,990
Gross Profit $28,433 $28,964 $28,326 $22,426 $19,902
Operating Income $10,228 $10,779 $10,154 $8,449 $8,231
Net Income $8,584 $9,019 $8,572 $11,809 $6,824
Diluted EPS $1.9 $1.97 $1.85 $2.53 $1.47
13 2012 2011
Cash Flow (mil) 2013 2012 2011
Cash at the beginning of the year $8,442 $12,803 $8,517
Net Operating Cash $10,542 $10,645 $9,474
Net Investing Cash $(4,214) $(11,404) $(2,524)
Net Financing Cash $(3,745) $(3,347) $(2,234)
Net Change in Cash $1,972 $(4,361) $4,286
Cash at end of the year $10,414 $8,442 $12,803
Capital Expenditure $(2,550) $(2,780) $(2,920)
Assets (mil) 2013 2012 2011
Cash $10,414 $8,442 $12,803
Net Receivables $4,873 $4,759 $4,920
Inventories $3,277 $3,264 $3,092
Other Income Assets $12,740 $13,863 $4,682
Total Current Assets $31,304 $30,328 $25,497
Net Fixed Assets $14,967 $14,476 $14,939
Other Noncurrent Assets $43,784 $41,370 $39,538
Total Assets $90,055 $86,174 $79,974
LIABILITIES(MIL) 2013 2012 2011
Liabilities (mil) 2013 2012 2011
Accounts Payable $1,933 $1,969 $2,172
Short Term Debt $17,925 $17,874 $14,912
Other Current Liabilities $7,953 $7,978 $7,199
Total Current Liabilities $27,811 $27,821 $24,283
Long Term Debt $19,154 $14,736 $13,656
Other Noncurrent Liabilities $9,917 $10,827 $10,400
Total Liabilities $56,882 $53,384 $48,339
STAKEHOLDER 'S EQUITY(MIL) 2013 2012 2011
Preferred Stock Equity $ $ $
Common Stock Equity $33,173 $32,790 $31,635
Total Equity $33,173 $32,790 $31,635
Shares Outstanding 4,402 4,469 4,526
The credit rating of Coca-Cola Company is low because the project rist of these businesses are very low and moderate to low risk of failure.
To add up, the report has evaluated FMCG market, and target customers group through analysing secondary and primary researches. To sum up, customer buying behaviour and competition in the market are discussed in detailed. To launch of new products there are some reasonable approaches in which you can found like targeting marketing and marketing mix. Moreover, revenue income and financial statement is discussed in detail of the company of last three years. Lastly, report indicated the profit maximized of the company which is the objective of mine in this report. It should be better to increase the demand and supply of the product and reduce the cost of the product to maximum possible extent.
Source: Essay UK - http://www.essay.uk.com/free-essays/business/coca-cola-company.php
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