Ehab EtaniMarketing Management

Type: Soft Drink (Cola)

Manufacturer: The Coca- Cola Company

Founder (s): John S. Pemberton

Country of Origin: United States

(Atlanta, Georgia)

Introduced: 1886

Area Served: Over 200 countries

Employees: 92,400

Company Overview

is an American multinational beverage corporation

and manufacturer, retailer and marketer

of non-alcoholic beverage concentrates

and syrups

 • Coca-Cola recipe was formulated at the Eagle Drug and Chemical

Company, a drugstore in Columbus, Georgia

• It was inspired from European coca wine which was in France.

• It was initially sold as a patent medicine for five cents.

• Coca-Cola was first sold to the public in Atlanta at Jacob’s Pharmacy

• Only 9 servings of the soft drink were sold each day

• Sales for the first year were only $50

History

The Coca-Cola formula and brand was bought in 1889 by Asa Candler who incorporated The Coca-Cola Company in 1892.

Company`s Profile (Mission, Vision ,Values)

• Vision:- People: Be a great place to work where people are inspired to be the best they can be.

- Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs.

- Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities

• Mission:- To refresh the world in body, mind and spirit- To inspire moments of optimism through our brands and our actions- To create value and make a difference everywhere we engage.

• Values:Leadership: The courage to shape a better future

Collaboration: Leverage collective genius

Products

Aquarius

Cheery Coke

Coca-Cola Zero

Fanta

Sprite

PowerAde

Minute- Maid

Monster

Coke Lemon

Vanilla Coke

Years 2011 2010 2009 2008 2007

Revenue 46.54B 35.12B 30.99B 31.94B 28.86B

Gross profit 28.33B 22.43B 19.90B 20.57B 18.54B

Operating income 10.15B 8.499B 8.231B 8.446B 7.252B

Net income 8.572B 11.81B 6.824B 5.807B 5.981B

Company Analysis

Ansoff Matrix

New Market

Existing Marketing

Existing Product

New Product

Market Development• Coca-Cola

Share Size1.25 liter Bottle

Product Development• Coca-Cola

Vanilla• Fanta Lemon

Market Penetration

• Diet Coke

Diversification• Winnie the pooh Roo Juice• PowerAde

Generic Strategies

Cost Leadership

• Coca-Cola`s positioning is archived through economies of scale in research, development, and promotion.

• It is also achieved through effective/efficient distribution networks and manufacturing systems

Differentiation

• For Coca-Cola it`s achieved through superior quality product.

• High Brand image and recognition

• Promotion and packaging

• ex: Coca-Cola bottle (A symbol)

Focus• Coca-Cola have

230 brand globally some of these products were targeted for specific people who were for differentiation.

• Ex: Diet coke, Coke-zero

Main Competition limited to small number of big players. (Pepsi)

Main Competition limited to small number of big players. (Pepsi)

Threat of new Entrant

s

Fashionable new drinks, milk, coffee, beer

Bargaining power of Suppliers

Threat of Substitute products

Bargaining power of Suppliers

Low buyer bargaining,Prices and availability

Low supplier bargaining power due to scale of Coca-Cola.

No consumer switching cost

zero capital requirement

Porters Five Forces

Entry barriers are relatively low.

Medium to High pressure

Low

pre

ssu

reLow

pre

ssu

re

SWOT Analysis

STRENGTHS WEAKNESSES

OPPORTUNITIES THREATS

- Strong brand image- Financially stable

- Strong distribution channel- Heavy promotional activities- 70% revenue-outside USA

- Health care issues.-Product offering restricted to

beverages-Inability to launch new product.

- Large domestic market- Export potential

- Alliances and Merges

- Changing consumers preference-legal issues

-competition (Pepsi)-Large number of substitutes

- Increased prices of raw materials

• Differentiated Marketing

• Customer satisfaction

• Endorsement of celebrities

• Reasonably priced

• Consumer connecting advertisements

• Availability in every local market

Strategies of Coca-Cola

Competitive Advantages:

• Market Leadership: A huge Trademark.

• Strong Brand Portfolio: offers powerful and wide portfolio of beverages to it`s customers. Always exploring new categories.

• Channel Marketing: To classify the markets and develop targeted efforts for each consumer segment.

Competitors Analysis

- Pepsi is a very tough company to go against because they have almost similar investments, advertisements, Strategies and Products.

- PepsiCo also has a snack product line including Lays, Cheetos and Quaker OAT’s

- PepsiCo provide carbonated drinks, Fruit Drinks and Packaged Drinking Water

60%35%

5%

coca cola pepsi.coothers

Market Share of Carbonated Drinks

Comparison

Companies Coca-Cola Pepsi

Founded Atlanta, Georgia USA 1892

North CarolinaUSA1965

Company Ownership

Public Public

Sector Beverages Beverages

Statistics Number of Employees: 

146,200Revenue: 48.01

billion 

Number of Employees:

297,000Revenue: US$ 66.504 billion

Comparison of financial highlights

COMPANY NAME Coca cola Pepsi.co

Profit Margin33.768046 10.958194

Asset Turnover0.577 1.071

Return on Assets19.506218 11.736928

Earning Per Share5.12 3.97

Financial Objectives

- Investing to drive additional growth in key developing markets across the world in both Snacks and Beverages.

- Increase our investments in R&D, with particular focus on long-term bets and innovation to sustain our long-term growth.

Pepsi SWOT Analysis

Strengths

- Broad Product line - Great reputation for their products - Increasing market share 3 different sectors to improve efficiency

US food US drinks food and drinks abroad

#1 company in snacks - Doritos - Lays Chips - Quaker Oat

Weaknesses - Lack brand awareness with all products - PepsiCo doesn't have all the products under one brand

Threats - Weakened economy - Pepsi blamed for pesticide residues in their product.- Lawsuits - Several competitors due to broad product line

Opportunity - Invest in healthier products - Devote more focus to non carbonated healthy drinks - Focus on international presence and recognition - Invest in going green

Coca-Cola and Pepsi-Cola focused particularly on pop stars; notable soft drink promoters to advertise there products.

Pepsi ads often focused on celebrities choosing Pepsi over Coke, supporting Pepsi's positing as "The Choice of a New Generation.“

Pepsi generation was created focusing on the user of the drink, never the drink. Coke always focused on the drink.

Coca-Cola advertising is often characterized as "family-friendly", and often relies on "cute" characters (e.g. the Coca-Cola polar bear mascot and Santa Claus around Christmas).

Similar& Different Strategies Used

Conclusion

Coca-Cola currently offers more than 500 brands in over 200 countries or territories and serves over 1.7 billion servings each day.

Future Plans

2020 Vision & Commitment• Energy conservation/climate

change: reduce the overall carbon footprint of our business operations by 15% by 2020

• Sustainable packaging/recycling : reduce the impact of our packaging; maximize our use of renewable, reusable, and recyclable resources

• Product portfolio/wellbeing: provide refreshing beverages for every lifestyle and occasion