Coke Goes High-Tech to Mix Its Sodas

By: Valerie Bauerlein

Presented By:Evan Ropp

Eric WatkinsSarah Ruatta

History of Coca-Cola

• Introduced in 1886 by a pharmacist named Frank Robinson in Atlanta, GA.

• First sold at a soda fountain

• Only 9 servings per day were sold

• First year sales= $50

• Now, with 1.4 billion beverages sold each day, they are one of the most successful beverage companies in the world

Article Summary

• Coca-Cola wants to add life to soft-drink sales by letting restaurant goers mix up to 104 different drinks

• The new curved medal shell is designed by the designers of Ferrari racecars

• Has special technology that releases proper amounts of concentrate

• Coke charges 30% more than traditional fountains

Article Summary cont…

• Soda business needs innovation– Sales decreased the past 5 years and fell 2.1% in 2009

• Coke has 70% of the U.S. market• They have 34 patents on this machine

– Perfect pour technology– Flavors don’t mix between drinks

• Has been running 6 months of tests with 69 machines

• Adds an experience to the restaurant • Coca-Cola plans on placing 500 new machines

around the country

SWOT

• Strengths – Brand equity/image & recognition– Product distribution and worldwide network– Solid financial performance– One of the world's most recognized brand– Product diversification (water, juices, soft drinks, sport drinks,

etc)

• Weaknesses– Customer concentration, particularly in the US (Wal-Mart

accounts for more than 10% of Coca Cola's business in the US)– There are a lot of loyal Pepsi customers and not many loyal

Coca-Cola customers– Bad Global website compared to Pepsi.

SWOT Analysis

• Opportunities – Bottled water growth– Acquisitions of smaller players– Health consciousness growth, specifically of the baby boomers– Non-carbonated drinks are the fastest-growing part of the

industry

• Threats– Commodity prices growth– Image perception in certain parts of the world (i.e., Colombia)– Smaller, more nimble operators/players– Key competitors (Pepsi, etc) – Energy drinks

Works Cited

• http://online.wsj.com/article/SB10001424052748703612804575222350086054976.html

• http://www.wikiswot.com/SWOT/3_Consumer_Packaged_Goods_%28CPGs%29/Coca_Cola.html

• http://www.youtube.com/watch?v=tp1uF3rF4oI&feature=related

• http://heritage.coca-cola.com/