Presentation of plc of coca cola

7/27/2019 Presentation of plc of coca cola

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Product life cycle of


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PRODUCT LIFE CYCLE Theproduct life-cycle theory is an theory that was developed by Raymond

Vernon in 1966.

All products have a particular life span, which is called the product life

cycle

The Product Life Cycle (PLC) is used to map the lifespan of a product.

There are generally four stages in the life of a product. These four stages

are the Introduction stage, the Growth stage, the Maturity stage and the

Decline stage.


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HISTORY OF COCA COLA


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SWOT ANALYSIS.STRENGTHS WEAKNESSES

The best global brand in the world in

terms of value ($77,839 billion)

Worlds largest market share in beverage.(about 40%).

Strong marketing and advertising, more

than $3 billion in 2012

Most extensive beverage distributionchannel.

Customer loyalty.

Bargaining power over suppliers.

Corporate social responsibility

Significant focus on carbonated drinks

Undiversified product portfolio.

High debt level due to acquisitions

Negative publicity.

Brand failures or many brands with

insignificant amount of revenues


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SWOT ANALYSISOPPORTUNITY THREAts

Bottled water consumption growth.

Increasing demand for healthy food and

beverage.

Growing beverages consumption in

emerging markets.

Growth through acquisitions

Changes in consumer preferences

Water scarcity.

Legal requirements to disclose

negative information on product labels.

Decreasing gross profit and net profit

margins

Competition from PepsiCo.


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STAGES OF PLC1 INTRODUCTION STAGE2

GROWTH STAGE3 MATURITY STAGE4 DECLINE STAGE


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FEATURES OF INTRODUCTIONSTAGEMARKETING OBJECTIVE : Create product awareness & trail.

CHARACTERISTICSINTRODUCTION

STAGE

sales

Cost

Profits

Customers

Competitors

Low

High per unit

Negative

Innovators

few


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COCA COLAS

INTRODUCTION STAGE

One afternoon, JOHN PEMBERTON, an Atlanta pharmacist, stirred up a fragrant,

caramel-colored liquid and, when it was done, he carried it a few doors down to

Jacobs' Pharmacy. Here, the mixture was combined with carbonated water and

sampled by customers who all agreed - this new drink was something special.

JACOBS' Pharmacy put it on sale for five cents (about 3p) a glass.

However, PEMBERTON had no idea how to advertise. This is where Frank Robinsoncame in. He registered Coca-Cola's formula with the patent office, and he designed the

logo. He also wrote the slogan, "The Pause That Refreshes.

In the first year , the company sold 9 glasses of per day.

The total revenue of first year was $56 but the cost incurred was $70.


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MARKETING STRATEGIES The first

advertisement for

coca cola appeared in

THE ATLANTAJOURNAL


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A BORN SALESMAN

ASA CANDLER, a natural born salesman, transformed Coca-Cola from aninvention into a business.

He knew there were thirsty people out there, and Candler found brilliant andinnovative ways to introduce them to this exciting new refreshment.

Coca-Cola was a great product, and a great brand. Both needed to beprotected. Advertising focused on the authenticity of Coca-Cola, urgingconsumers to 'Demand the genuine' and 'Accept no substitute'.

He gave away coupons for complimentary first tastes of Coca-Cola, andoutfitted distributing pharmacists with clocks, urns, calendars and apothecaryscales bearing the Coca-Cola brand.

People saw Coca-Cola everywhere, and the aggressive promotion worked. By

1895, Candler had built syrup plants in Chicago, Dallas and Los Angeles. in 1899, two lawyers, Benjamin Thomas and Joseph Whitehead, secured

exclusive rights from Candler to bottle and sell the beverage - for the sum ofonly one dollar.

.


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The company also decided to create a distinctive bottle shape to assure

people they were actually getting a real Coca-Cola.

As the country roared into the new century, The Coca-Cola Company grew

rapidly, moving into Canada, Panama, Cuba, Puerto Rico, France, andother countries and US territories. In 1900, there were two bottlers of

Coca-Cola; by 1920, there were about 1,000.


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FEATURES OF GROWTH STAGECHARACTERISTICS GROWTH STAGE

SALES

COST

PROFIT

CUSTOMERS

COMPETITORS

RAPIDLY RISING SALES

AVERAGE COST PER

CUSTOMER

RISING PROFITS

EARLY ADOPTER

GROWING NUMBERS


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GROWTH STAGE OF COCA COLA In 1899 13 years after Atlanta pharmacist Dr. John Pemberton began

producing Coca-Cola syrup for sale in fountain drinks two Chattanooga

businessmen secured exclusive rights to bottle and sell Coca-Cola for most

of the United States.

Recognizing the need to create a bottler network, Benjamin F. Thomas and

Joseph B. Whitehead, with the support of businessman John T. Lupton,

began granting other entrepreneurs bottling franchise rights.

The first franchise began operations in 1901, serving parts of Tennessee

and other nearby locations under the ownership of Mr. Thomas and James

F. Johnston.

In 1986, The Coca-Cola Company merged some of its company-ownedoperations with two large ownership groups that were for sale the John

T. Lupton franchises and BCI Holding Corporation's bottling holdings

forming Coca-Cola Enterprises Inc. (CCE).


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1920S AND 1930S INTERNATIONAL EXPANSION In 1923, four years after his father Ernest purchased the company from

ASA CANDLER , woodruff became the president of the coca cola .

Woodruff was a marketing genius, who saw opportunities for expansion

everywhere.

He led the expansion of Coca-Cola overseas and in 1928 introducedCoca-Cola to the Olympic Games for the first time when Coca-Cola

travelled with the US team to the 1928 Amsterdam Olympics

Woodruff pushed development and distribution of the six-pack and many

other innovations that made it easier for people to drink Coca-Cola at

home or away. This new thinking made Coca-Cola not just a huge success,but a big part of people's lives.
http://www.coca-cola.co.uk/olympic-games/olympic-games-timeline.htmlhttp://www.coca-cola.co.uk/olympic-games/olympic-games-timeline.html


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1940S POST-WAR GROWTH

In 1941, America entered World War II. Thousands of men and womenwere sent overseas.

Woodruff ordered that 'every man in uniform gets a bottle of Coca-Cola

for five cents, wherever he is, and whatever it costs the company.

In 1943, General Dwight D Eisenhower sent an urgent cablegram to

Coca-Cola, requesting shipment of materials for 10 bottling plants. Woodruff's vision that Coca-Cola be placed within 'arm's reach of desire'

was coming true - from the mid-1940s until 1960, the number of countries

with bottling operations nearly doubled.


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A WORLD OF CUSTOMERS(1960-1981) After 70 years of success with one brand, Coca-Cola, the company decided

to expand with new flavors. Fanta, originally developed in the 1940s, was

introduced in the 1950s, while Sprite followed in 1961, with TAB in 1963

and Fresco in 1966.

The company's presence worldwide was growing rapidly, and year after

year, Coca-Cola found a home in more and more places: Cambodia,

Montserrat, Paraguay, Macau, Turkey and more.

Advertising for Coca-Cola, always an important and exciting part of its

business, really came into its own in the 1970s, and reflected a brand

connected with fun, friends and good times.

The international appeal of Coca-Cola was embodied by a 1971

commercial, where a group of young people from all over the world

gathered on a hilltop in Italy to sing I'd Like To Buy The World A Coke.
http://www.coca-cola.co.uk/brands/fanta.htmlhttp://www.coca-cola.co.uk/brands/sprite.htmlhttp://www.coca-cola.co.uk/brands/sprite.htmlhttp://www.coca-cola.co.uk/brands/fanta.html


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DIET COKE AND NEW COKE The 1980s - the era of legwarmers, headbands and the fitness craze, and

a time of much change and innovation at The Coca-Cola Company.

In 1981, ROBERTO C GOIZUETA became chairman of the board of directorsand CEO of The Coca-Cola Company. ROBERTO completely overhauled the

company with a strategy he called 'intelligent risk taking'.

He also led the introduction ofDiet Coke, the very first extension of the

Coca-Cola trademark. Within two years, it had become the top low calorie

drink in the world, second in success only to Coca-Cola. in 1985, company release a new taste for Coca-Cola, the first change in

formulation in 99 years.

In taste tests, people loved the new formula, commonly called New Coke.

In the real world, they had a deep emotional attachment to the original,

and they begged and pleaded to get it back. Critics called it the biggestmarketing blunder ever.

Coca-Cola listened, and the original formula was returned to the market as

Coca-Cola Classic, and the product began to increase its lead over the

competition - a lead that continues to this day.
http://www.coca-cola.co.uk/brands/diet-coke.htmlhttp://www.coca-cola.co.uk/brands/diet-coke.html


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NEW MARKETS AND BRANDS The 1990s were a time of continued growth for The Coca-Cola Company.

The company's long association with sports was strengthened during this

decade, with ongoing support of the Olympic Games, FIFA World Cup

football, and the National Basketball Association.

The year 1993 saw the introduction of the popular Always Coca-Cola

advertising campaign, and the world met the lovable Coca-Cola Polar Bear

for the first time.
http://www.coca-cola.co.uk/about-us/heritage/christmas/coca-cola-polar-bears.htmlhttp://www.coca-cola.co.uk/about-us/heritage/christmas/coca-cola-polar-bears.htmlhttp://www.coca-cola.co.uk/about-us/heritage/christmas/coca-cola-polar-bears.htmlhttp://www.coca-cola.co.uk/about-us/heritage/christmas/coca-cola-polar-bears.html


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New markets opened up as Coca-Cola products were sold in East Germany

in 1990 and returned to India in 1993.

New beverages joined Coca-Cola's line-up, including Powerade sports

drinks and Oasis fruit drinks. Coca-Cola's family of brands further

expanded through acquisitions, including LIMCA, MAAZA AND THUMS Up

in India, Inca Kola in Peru, and Cadbury Schweppes beverage brands in

more than 120 countries around the world.

By 1997, Coca-Cola already sold one billion servings of its products every

day, yet knew that opportunity for growth was still around every corner.

New markets .......(1993)
http://www.coca-cola.co.uk/brands/powerade.htmlhttp://www.coca-cola.co.uk/brands/oasis.htmlhttp://www.coca-cola.co.uk/brands/schweppes.htmlhttp://www.coca-cola.co.uk/brands/schweppes.htmlhttp://www.coca-cola.co.uk/brands/oasis.htmlhttp://www.coca-cola.co.uk/brands/powerade.html


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FEATURES OF MATURITY STAGECHARACTERISTICS MATURITY STAGE

Sales

Cost

Profit

Customers

competitors

Sales begin to

stabilize

Low cost percustomers

High profits

Middle majority

Stable number ,

beginning to decline


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Financial data of coca colacompany (2013) Net income fell to $2.68 billion, or 59 cents a share, from $2.79 billion, or

61 cents, a year earlier in 2nd quarter of 2013.

Third quarter volume grew 2% and year-to-date volume grew 2%. Coca-

Cola Americas grew 1% in both the quarter and year to date and Coca-Cola

International grew 3% in both the quarter and year to date.

Reported net revenues declined 3% in the third quarter and 2% year to

date. Excluding the impact of structural changes, comparable currency

neutral net revenues grew 4% in the quarter and 3% year to date.

Reported operating income declined 12% in the third quarter and 6%

year to date.


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The last decade marked an increase in Coca-Cola's efforts to create a

sustainable framework for the future.

In 2009, the company launched Live Positively - a public commitment to

making a positive difference in the world by redesigning the way we work

and live so that sustainability is part of everything we do.

Live Positively includes goals for providing and tailoring beverages for

every lifestyle, supporting active, healthy living programme ,building

sustainable communities, reducing and recycling our packaging, cutting

our carbon emissions, establishing a sustainable water operation and

creating a safe, inclusive work environment for all.

The company has continued to build on existing relationships with global

sports events such as the 2010 FIFA WORLD CUP and prepare for the

London 2012 Olympics games, and the company continued to nurture our

affiliation with the Special Olympics, which began in 1968.

Coca-Cola has remained dedicated to offering quality drinks for everylifestyle and occasion, marketing those beverages responsibly and

providing information that consumers can trust.
http://www.coca-cola.co.uk/about-us/live-positively-sustainability.htmlhttp://www.coca-cola.co.uk/about-us/live-positively-sustainability.html


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JO CHAAHO HO JAAYE:

Coca Cola Enjoy was one of the companys first campaigns in India. It was

remarkably well executed, and appealed both at a product level as well as

at an emotional level. These ads featured celebrities such as HRITHIK

ROSHAN and AISHWARYA RAI.

The target segment for Coca Cola in its initial days was the youth segmentand this campaign clearly connected well with the segment.

However, the next advertising campaign ofTHANDA MATLAB COCA

COLAwas launched with an objective to have a mass appeal. The

campaign leveraged the product platform rather than the emotional

platform that it had established earlier.

COCA COLAS CAMPAIGN


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THEMES FOR COCA COLA

ADVERTISING

Delicious and Refreshing (1904) Good to the Last Drop (1907)


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Thirst Knows No Season.(1922) Refresh Yourself.(1924)


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It had to be good to get where itis,(1926) The Pause That Refreshes.(1929)


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Things Go Better with Coke(1963)

When Coca-Cola Is a Part of YourLife, You Can't Beat the Feeling


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The Coca-Cola Company operates in more than 200 countries and markets

more than 500 brands and 3,500 beverage products. Today coca cola serving 1.8 billion customers a day , ( in 1886 this figure

was 9 per day)

94% population recognize the red and whit logo of coca cola.

Coca cola holds a largest market share ,40% in beverage industry.

Companys revenue in year 2012 was $ 48.01 billion , and net profit was

9.01 billion.

Presentation of plc of coca cola

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