COCA-COLA COMPANY

(Case Study)
ESTAVILLO, NIÑA BEATRIZ
PENILLA, YYA JALYNNA
QUIÑONES, CLAIRE
RODRIGUEZ, MA. ELAINE
Company Background
• Coca-Cola was founded in 1886 by
Pharmacists, Dr. Pemberton
• Coca cola company is the world’s largest
beverage
• The company has 500 brands.
• The revenue of the company is
approximately $24 billion
• Employing about 71000 people world
wide in over 200 countries
 COCA COLA COMPANY
(2007)
ABSTRACT

The Coca-Cola Company (Coca-Cola), the world’s leading

soft drink maker, operates in more than 200 countries and
sells 400 brands of nonalcoholic beverages. Coca-Cola is
also the most valuable brand in the world. Coca-Cola is a
globally recognized successful company. The Coca-Cola was
founded in May of 1886 and continues for more than a
century through the times of war and peace, prosperity and
depression and economic boom and bust. As late as the
1990s, Coca-Cola was one of the most respected companies
in the world, building and known as a very successful
management team.
 MISSION
Mission Coca-Cola declares the purpose
as a company and serves as the
standard against actions and decisions:

 To refresh the world

 To inspire moments of optimism and
happiness
 To create value and make a difference.
 VISION
The vision of Coca-Cola is the framework for their guides of
every aspect of its business. It is presented in 6Ps:
1. People: Be a great place to work where people are
inspired to be the best they can be.
2. Portfolio: Bring to the world a portfolio of quality
beverage brands that anticipate and satisfy people's
desires and needs.
3. Partners: Nurture a winning network of customers and
suppliers, together we create mutual, enduring value.
4. Planet: Be a responsible citizen that makes a difference
by helping build and support sustainable communities.
5. Profit: Maximize long-term return to shareowners while
being mindful of our overall responsibilities.
6. Productivity: Be a highly effective, lean and fast-moving
organization
 OBJECTIVES
• Increase profit by cutting down costs through
productive and efficient production facilities
• Focus on environment friendly bottling
production and enforce sustainability
• Continue to diversify its portfolio through
innovations and partnerships, keeping
consumer demands in mind
• Aim to be globally known as a business that
conducts business responsibility and ethically
 CENTRAL PROBLEM
Marketing snacks and soft drinks is
where Coke may find itself at a
disadvantage considering the subsidiary
divisions that PepsiCo owns. Should Coke
strive to enter the snack business from
which its rival PepsiCo derives so much
revenue?
STRENGTH
 Strong collaboration with other
reputable companies
 Creative marketing strategies
(Sensitivity Marketing; Digital
Marketing)
 Well-known brand name
 Positive reputation of the
company
 It is the best global brand in
the world in terms of revenue,
profits, stock market
performance and brand image.
AREAS OF CONSIDERATION
WEAKNESSES
 Engaged only in drink products
 The rising cost of raw materials
has hurt the beverage industry
 The principle focus of the
company is aerated beverages
like Coke and Sprite. However,
this limited focus might prove
detrimental for the company if
the world is moving towards
healthier drinks.
 Coke has faced flak from experts
who have criticized the water
consumption policy of the
company in regions with water
scarcity.
OPPORTUNITIES THREATS

 “It’s Your Heimpsiel –  Trend toward healthier

Make It Real!”campaign eating and drinking that
 Implementation of “My will hurt the company’s
Coke Rewards” sales of their traditional
 Increase of bottling sugar-substitute-based
investments drinks.
 Spurring demand for  Stiff Competition in
energy drinks emerging markets
 The non-alcoholic ready to
drink beverage industry is  Increasing preference
expected to grow by 50 for non-carbonated
Billion unit cases by 2020 healthy drinks

AREAS OF CONSIDERATION
 ALTERNATIVE COURSES OF ACTION
SOLUTIONS ADVANTAGES DISADVANTAGES
1.Recommendations for Coca-Cola should provide industry
leadership in the health and
New product innovations might
not be favorable to some
Health and Wellness wellness area. It should produce
customers.
Trend different kinds of products for
different segments of the market.

2.Recommendations for As PepsiCo has a horizontal

expansion, Coca-Cola should have a
The competition from
Increased Competition vertical expansion. Within the PepsiCo will still remain
from PepsiCo products in PepsiCo, only 37% of
products are beverages. Coca Cola
a threat for Coca-Cola
should focus on beverages business for coming years.
and related businesses, e.g.
bottling, sugar plantation or even
tin can and glass recycling business.

3. Recommendations for Coca-Cola can also If Coca-Cola focuses

Declining Sales Volume focus more on bottled
in Soft Drink Sector water, noncarbonated
drinks, and especially
energy drinks.
only on the carbonated
soft drink sector
competitively, it will
weaken or make Coca-
Cola lose the market
leader in beverage
industry.
STRATEGY FORMULATION
We, therefore conclude that the best
solution to the problem is to strive for
entering the snack business. It’s been
proven that one of the Coca Cola
Company’s fierce competitors, Pepsi Co
derives so much revenue from that
business. The former can also apply that
strategy in a more unique way such as
innovating new products which concern
toward healthy eating.
 PLAN OF ACTION
•Create a lower calorie sports drink line to
promote healthy drinking habits while still
providing the essential electrolyte balance
•Take advantage of the increasing demand for
bottled water by creating flavored water drops
•Increase R&D spending to research production
methods to ensure that we are utilizing
resources in the most efficient manner
 POTENTIAL PROBLEMS

• What if the environmental change goes

rapid?
• What if the competition between Coca
Cola Company and Pepsi Co is becoming
fiercer?
• What if the customer’s concerns in
health issues continue to exist?
 CONTINGENCY PLAN
• Coca-Cola should be sensitive of any
new trend and position itself as a unique
brand in order to keep its competitive
advantage
• Diversify products by entering the
healthy snack/snack food market.
• The company should conduct new
product innovations that promote health
awareness