SM Coca Cola

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    PRESENTATION

    ONSTRATEGIC MANAGEMENT OF

    COCA COLAPRESENTED BY:-

    MAYURSINH JADEJA (01)

    DHRUV DAVE (05)KEYUR PARMAR (07)MAHESH BALDANIYA (28)

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    Coca-colaMarket Leadership:- Coca-Cola is the largest bottlerof Coca-Cola trademark beverages in the world in

    terms of total sales volume, with operations in Mexico,

    Argentina, Brazil and etcStrong brand portfolio: a one-stop shop for itsretailers by offering a complete beverage portfolio -

    including carbonated soft drinks, bottled water,

    juices, orangeades, isotonics, teas, energy drinks,

    milk, coffee and even beer in some markets such as

    Brazil.

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    To refresh the world

    To inspire moments of optimism and

    happiness

    To create value and make a difference

    Coca Colas mission

    statement

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    Now they are moving from : Creative Excellence to

    Content Excellence

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    This part consider both the internal and

    external influence on coca cola marketing

    planning. The macro environment is analyzed using the

    PESTEL framework.

    The micro environment is analyzed using Five

    Forces.

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    Political Factors: Coca cola operates globally and their

    performance is influenced by the political

    stability and instability of thesecountries.

    Economic factors

    High inflation in any of the countries willcause the price of coca cola to raise andconsumption of coca cola may fall.

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    Social factors Consumers in the different countries will

    have different taste and perception aboutcoca cola.

    Technological factors The current environment is technological

    driven and the need for dynamicinnovation.

    Coca cola has got competent research anddevelopment team who discover newtechnologies to improve productivity.

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    Environmental Coca colas operations results in

    environmental footprints. They aim atreducing them in their areas of operationsto gain brand image.

    Coca cola plant relies heavily on electricity

    for production. They generate alternativepower to reduce this reliance.

    Legal factors Coca cola is given the copy right to operate

    and is the only company that can produceand sell coca cola in all countries. Several countries have laws regulating how

    companies should operate and coca cola is alaw abiding corporate citizen.

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    The micro-environment can be analyzed usingporters five forces.

    These forces determines the attractiveness ofcold drinks industry.

    Threats of new entry. This appears to be very low in this industry as there is

    exclusivity of right for coca cola to operate in somegeographical locations.

    Ti is also capital intensive and require huge investment.

    This serves as a barrier to entry. Brand loyalty from customers serves as a barrier to entry.

    Economy of scale and scope also serve as a barrier toentry.

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    Threat of substitutes Fruits and vegetable juices are closed substitutes for the

    industry.

    For health concerns, many choose to consume organicfruit juice.

    Bargaining power of suppliers This also appears to be weak as suppliers products(e.g.

    sugar) are basic commodities and ingredients.

    Coca cola buys in bulk and rather has power oversuppliers.

    Bargaining power of customers(B2B) This appears to strong as customers are mainly large

    supermarkets and retailer. They have the power tonegotiate price down to reduce coca cola profitability .

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    Competitive rivalry There are currently three major players

    in the cold drink industry.

    Coca cola

    Pepsi cola

    Cadbury Schweppes

    Coca cola has got dominant position.

    There are currently growing markets andniches that can be exploited socompetition is not so keen.

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    Men The experienced employees of cocacola will help in introducing the new

    product.

    Money The new product development willrequire finance for developing andlaunching it. Coca cola is financiallysound.

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    Markets Coca cola has experiences to market the

    product to target customers, market

    exist and can be reached.Make-ups

    The culture influences how coca cola

    considers this new ideas and opinions.the culture at coca cola encourages newideas for growth.

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    Management Management are experienced and

    successful in launching new products.

    Machine Coca cola own plant & equipment and

    franchisees.

    Materials Good relationship with suppliers.

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    Transforming our commercial models to focus on our

    customers value potential and using a value-basedsegmentation approach to capture the industrys valuepotential, Implementing multi-segmentation strategies in our major

    markets to target distinct market clusters divided by

    consumption occasion, competitive intensity andsocioeconomic levels;

    Implementing well-planned product, packaging andpricing strategies through different distribution channels; Driving product innovation along our different product

    categories and

    Achieving the full operating potential of our commercialmodels and processes to drive operational efficienciesthroughout our company.

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    LOW COST-HIGH VOLUME STRATEGY Industry estimates for the January to September

    2012 period indicate that the top 2 soft drinks brands arefrom the Coca-Cola stable. But brand Coke, the world's

    most consumed soft drink, doesn't figure amongst thosetop 2.

    Coca-Cola is now counting on the 'meals' campaignto ramp up volumes of its global flagship cola, whichlanguishes at No 4 in the pecking order. The top 2 are

    Thums Up and lemon-lime flavored Sprite, both brandsfrom the Coca-Cola India stable; global rival PepsiCo isat No 3.

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    The price of Coke concentrate has been consciously kept

    lower than that of Thums Up to spur bottling of the global

    cola, confirms a top official within its bottling business who did

    not want to be named.

    This summer, the company had dropped the price of Coke in

    200 ml returnable glass bottles to Rs 8 from Rs 10 in big

    markets like Mumbai, Tamil Nadu, Gujarat and Karnataka; the

    prices of other soft drinks in the Coca-Cola stable were not

    tinkered with. "Bringing the price down to Rs 8 for glass bottles is

    unprofitable. But the company wants volume gains for

    Coke, even if the bottling business' profits are

    compromised,"

    the beverage maker has only mentioned growth numbers of

    only brand Coke. "If brand Coke does well, it is perceived

    by headquarters as The Coca-Cola Company is doing

    well... it reflects on shareholder sentiment as well,"

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    Brand Mapping

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