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Transcript of Coke ppt
The Coca Cola CompanyA Case Study
April 27th, 2010by Don Merlin
Coke is a Global Brand
1.6 Billion servings sold each day
Sold in over 200 Countries
World Wide Brand Recognition
A Brief History of Coke
Founded in 1886 by John Pemberton
Sold at Jacob's Pharmacy in Atlanta,Georgia
Sold as a “Health Elixir”
A Brief History of Coke
Bought by Asa Griggs Candler in 1888-1891
In 1900 there were two bottling plants
By 1920 there were over 1,000 bottling plants
A Few Fun Facts About CokeFrom Coke's Website
Served aboard the Space Shuttle
Coke is not an effective pesticide
Coke is not an aphrodesiac
Coke's Products
Coke sells syrup to its franchisees who bottle the product
Coke maintains control of marketing and all trademarks
Coke sells and markets soft and hard beverages
Coke Brands
A&W Dasani water Minute Maid Bacardi Powerade And 3,000 other
brands
Pepsi is a Substitute to Coke
Coke competes in a global market with many substitutes for its products
Coke buys up competing foreign brands to maintain Market Dominance
Coke is an Oligopoly
Coke's only serious competitor is Pepsico
In 2005 Pepsi passed Coke in overall market value for the first time in 112 years
Pepsi made $43.7bn in 2009 in the US
Coke made $38.1b in 2009 in the US
Coke's Labor Market
Coke has 92,400 employees with 86% employed outside the US
Coke claims 30% Unionization
Additional 708,000 System Associates working for Franchisees
What Coke Pays its Hourly US Employees
$12.22 Merchandiser $19.72 Truck Driver Average Management
Salary $101K Pepsi pays
Merchandisers - $10.41 Truckers - $17.41 and avg salary is $141,738
Coke's Opportunity Costs
Coke spends over 2.8 Billion Dollars a year on Advertising
More than the GDP of 49 Nations
No upgrades to Bottlers
Less money spent on selling safe products
Coke's International Trade
The franchise system limits actual trade of products except Syrup
Franchisees supply water and sweeteners
Coke imports Coca base for flavoring
Coke Imports Coca Leaves
Coke imports Coca leaves as a flavor ingredient after the cocaine is removed
The Stepan Company is the only legal source of Coca in the US
Coke's Negative Impact
Coke is accused of lowering aquifers
Accused of selling contaminated products
Accused of stifling labor organizing
Coke products are linked to negative health effects like diabetes and obesity
Coke's Long term Goals
Increase Shareholder Value
Increase international and domestic market share
Coke's Short Term Goals
Increase market share of bottled water
Increase sustainability through recycling
“Live Positively” campaign to increase healthy living
Returning water to communities
Coke and Micro Economics Class
Coke is not in a monopolistic competition but is an Oligopoly with Pepsi
Coke and Pepsi are “Price Makers”
Coke uses the “Kinked Demand Curve” and its demand is inelastic
The Future of Coke
Coke's future is assured by its global brand recognition
Coke continues to expand its markets into India, Brazil and China
Works Cited
http://heritage.coca-cola.com/2 http://www.thecoca-colacompany.com/contactus/myths_rumors/packaging3
http://www.coca-colaconversations.com/my_weblog/2008/02/coke-in-space.html4 http://www.btimes.co.za/97/1228/comp/comp.htm5
http://www.thecoca-colacompany.com/brands/product_list_p.html6
Tucker, Irvin, and Cram101 Reviews. Outlines and Highlights for Microeconomics for Today by Irvin B Tucker, Isbn. South-Western Pub, 2009. 262-263. Print. 7
http://www.thecoca-colacompany.com/ourcompany/index.html1
http://www.pepsico.com/Company/Our-Brands.html8 http://www.pepsico.com/Company/PepsiCo-Values-and-Philosophy.html9
http://www.flex-news-food.com/pages/28924/Coca/coca-cola-bottling-q4-profit-rises.html10 http://www.istockanalyst.com/article/viewarticle/articleid/3362077
http://www.thecoca-colacompany.com/ourcompany/meet_our_people.html http://www.payscale.com/research/US/Employer=Coca_Cola_Enterprises_Inc/Hourly_Rate
http://www.salarylist.com/all-real-jobs-salary-at-the-coca-cola-company.htm http://www.payscale.com/research/US/Employer=Pepsi_Bottling_Group/Hourly_Rate http://www.salarylist.com/all-real-jobs-salary-at-pepsico-beverages-international.htm
http://www.adbrands.net/us/cocacola_us.htm https://www.cia.gov/library/publications/the-world-factbook/index.html
http://www.indiaresource.org/campaigns/coke/index.html http://internationaltrade.suite101.com/article.cfm/cocacola_drinks_in_mexico_india20
http://www.thecoca-colacompany.com/presscenter/viewpoints_kent_uscib.html http://www.alacrastore.com/company-snapshot/The_Coca_Cola_Export_Corporation-1089128