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Product and Services: The business system of the Company in India directly employs approximately 6,000 people, and

indirectly creates employment for many more in related industries through our vast procurement, supply and distribution system. The vast Indian operations comprise 25 company-owned bottling operations and 24 franchisee-owned bottling operations. That apart, a network of contractpackers also manufactures a range of products for the Company. Coca-Cola Diet Coke Sprite Fanta Thums Up Limca Maaza and Kinley are Trademarks of The Coca-Cola Company How are strategies implemented in coca cola? Strategy One of our goals is to maximize growth and profitability to create value for our shareholders. Our efforts to achieve this goal are based on: (1) transforming our commercial models to focus on our customers value potential and using a value-based segmentation approach to capture the industrys value potential, (2) implementing multi-segmentation strategies in our major markets to target distinct market clusters divided by consumption occasion, competitive intensity and socioeconomic levels; (3) implementing well-planned product, packaging and pricing strategies through different distribution channels; (4) driving product innovation along our different product categories and (5) achieving the full operating potential of our commercial models and processes to drive operational efficiencies throughout our company. To achieve these goals, we intend to continue to focus our efforts on, among other initiatives, the following: working with The Coca-Cola Company to develop a business model to continue exploring and participating in new lines of beverages, extending existing product lines and effectively advertising and marketing our products;

developing and expanding our still beverage portfolio through innovation, strategic acquisitions and by entering into agreements to jointly acquire companies with The Coca-Cola Company; expanding our bottled water strategy, in conjunction with The Coca-Cola Company through innovation and selective acquisitions to maximize profitability across our market territories; strengthening our selling capabilities and go-to-market strategies, including pre-sale, conventional selling and hybrid routes, in order to get closer to our clients and help them satisfy the beverage needs of consumers; implementing selective packaging strategies designed to increase consumer demand for our products and to build a strong returnable base for the CocaCola brand; replicating our best practices throughout the value chain; rationalizing and adapting our organizational and asset structure in order to be in a better position to respond to a changing competitive environment; committing to building a multi-cultural collaborative team, from top to bottom; and broadening our geographic footprint through organic growth and strategic acquisitions. Competitive Advantage Market Leadership. Coca-Cola FEMSA is the largest bottler of Coca-Cola trademark beverages in the world in terms of total sales volume, with operations in Mexico, Guatemala, Nicaragua, Costa Rica, Panama, Colombia, Venezuela, Argentina and Brazil. Business partnerships. Coca-Cola FEMSA is working together with the CocaCola Company to develop more advanced joint business models to continue exploring and participating in new lines of beverages, extending existing product lines and effectively advertising and marketing our products. As partners, we have a shared incentive to capture important growth opportunities in Latin Americas fast-growing, but under-developed noncarbonated beverage segment, developing and expanding our still beverage portfolio through innovation, strategic acquisitions and by entering into agreements to jointly acquire companies with The Coca-Cola Company. Strong brand portfolio. The company offers a powerful and wide portfolio of beverages to its customers and consumers, and continuously explores promising beverage categories to capture growth in its different markets. To get closer to its customers and help them to satisfy consumers expanding needs, Coca-Cola FEMSA has become a one-stop shop for its retailers 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. Collaborative customer relationships. As an organization, Coca-Cola FEMSA continually looks to deepen its customer relationships. Our company is working closely with its largest clients to develop stronger multi-faceted relationships. Among the companys initiatives, are tailoring its extensive portfolio of products and packages for their stores - based on the local markets socioeconomic demographics, relevant consumption occasion and the stores distinctive characteristics. We partner with our customers on multiple fronts-from knowledge management and capabilities development to go-to-market and point-of-sale execution-to ensure each and every shoppers trip counts. Channel Marketing. In order to provide more dynamic and specialized marketing of our products, our strategy is to classify our markets and develop targeted efforts for each consumer segment or distribution channel. Our principal channels are small retailers, on-premise consumption such as restaurants and bars, supermarkets and third party distributors. Presence in these channels entails a comprehensive and detailed analysis of the purchasing patterns and preferences of various groups of beverage consumers in each of the different types of locations or distribution channels. In response to this analysis, we tailor our product, price, packaging and distribution strategies to meet the particular needs of and exploit the potential of each channel. Multi-Segmentation. We have been implementing a multi-segmentation strategy in the majority of our markets. This strategy consists of the implementation of different product/price/package portfolios by market cluster or group. These clusters are defined based on consumption occasion, competitive intensity and socio-economic levels, rather than solely on the types of distribution channels. Client Value Management. We have been transforming our commercial models to focus on our customers value potential using a value-based segmentation approach to capture the industrys potential. We have started the rollout of this new model in our Mexico, Brazil, Colombia and Central America operations. Go-to-market strategies. We continuously evaluate our distribution model in order to fit with the local dynamics of the marketplace and analyze the way we go to market, recognizing different service needs from our customersfrom traditional mom-and-pop retailers to modern hyper and supermarkets, while looking for a more efficient distribution model. As part of this strategy, we are rolling out a variety of new distribution models throughout our territories looking for improvements in our distribution network.

Flexible sales and distribution models. We use several sales and distribution models depending on market, geographic conditions and the customers profile: (1) the pre-sale system, which separates the sales and delivery functions, permitting trucks to be loaded with the mix of products that retailers have previously ordered, thereby increasing both sales and distribution efficiency, (2) the conventional truck route system, in which the person in charge of the delivery makes immediate sales from inventory available on the truck, (3) a hybrid distribution system, where the same truck carries product available for immediate sale and product previously ordered through the pre-sale system, (4) the telemarketing system, which could be combined with pre-sales visits and (5) sales through third-party wholesalers of our products. Full Operating Potential. More with less is a key part of the Coca-Cola FEMSA corporate culture. The company continually seeks to optimize manufacturing and distribution capacity to maximize operating efficiency, adapting its organizational processes to address changing competitive, economic, and sociopolitical environments. In addition, we rely on state-of-the-art market intelligence systems that enable the company to execute and refine its channel-marketing and multi-segmentation strategies, consistent with customers and consumers purchasing patterns and preferences. Managerial expertise. We focus on management quality as a key element of our growth strategy and remain committed to fostering the development of quality management at all levels. Both FEMSA and The Coca-Cola Company provide us with managerial experience. To build upon these skills, we also offer management training programs designed to enhance our executives abilities and to provide a forum for exchanging experiences, know-how and talent among an increasing number of multinational executives from our new and existing territories. Sustainable Development. Sustainable development is an important pillar of our Companys strategy. We continually develop programs that ensure the creation of social and economic value by fostering the quality of life of our employees, promoting a culture of health and well-being, supporting our surrounding communities and minimizing our operations environmental impact. Coca-Cola India, the country's leading beverage company, will invest an additional US$3 billion (approximately Rs. 165,000 MN) in India through 2020 to further capture growth opportunities in the country's fast-growing nonalcoholic ready-to-drink (NARTD) beverage market. With the new $3 billion investment, the Coca-Cola system now plans to invest $5 billion in India from 2012 to 2020.

"Achieving continued sustainable, responsible growth in India is core to achieving our 2020 Vision of doubling system revenues in this decade," says Muhtar Kent, chairman/CEO, The Coca-Cola Co. "Our ongoing investment in India is focused on delivering innovation, partnerships and a portfolio that enhances the consumer experience, ensures product affordability and builds brand loyalty to deliver long-term growth." NARTD beverages have enormous growth potential in India. Coca-Cola India has registered unit case volume growth in India for the past 23 quarters, 17 of which have seen double-digit growth. Two of the company's core sparkling brandsThums Up and Spriteare the country's top selling soft drink brands while brand Coca-Cola is one of the country's fastest growing sparkling brands, most recently reporting 27 percent growth in the first quarter. In the still beverage category, Coca-Cola's Maaza is India's largest selling juice drink. The Coca-Cola Co. and its bottling partners have robust plans to capture growth in India with investments in innovation, expansion of distribution network, cold drink equipment placement and augmentation of manufacturing capacity. The Coca-Cola system has already invested more than US$2 billion in India since it re-entered the country in 1993. This announcement brings the total investment number to US$7 billion since reentry into India. The Coca-Cola India system currently directly employs more than 25,000 people and is estimated to have created indirect employment for more than 150,000 people in related industries through its vast procurement, supply chain and distribution system. The investments announced by Coca-Cola will further catalyze economic growth and create new opportunities for local communities. Atul Singh, president/CEO, Coca-Cola India and Southwest Asia, says, "India is a strategic growth market for The Coca-Cola Co., ranking among our top 10 markets in volume globally and as the largest market in the Eurasia and Africa Group. Our India business has been growing at a robust rate over the last five years, and our goal is to continue this momentum. The country's demographics, economic and social parameters are all huge drivers of growth and we have to ensure that we continue to grow our offerings to be the nonalcoholic, ready-to-drink beverage company of choice for local consumers."

The Coca-Cola system has a long history of partnership with non-governmental organizations in India for community development and sustainability initiatives. As a system, Coca-Cola has now achieved a net zero balance with regard to groundwater usage in India. It is well integrated with local Indian communities and is a valued contributor to economic and social growth. The company and its bottling partners are strong supporters of education in India through programs like the 'Coca-Cola Support My School' campaign, which has created more than 100 model schools in India. Worldwide, The Coca-Cola Co. and its bottling partners are investing more than $30 billion over the next five years to support anticipated growth. These investments range from new manufacturing facilities to new distribution systems to new marketing investments in emerging economies.

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