 Coca-Cola history began in 1886 Atlanta

pharmacist, Dr. John S. Pemberton, created a

distinctive tasting soft drink that could be sold at
soda fountains.

 He created a flavored syrup and mixed it with

carbonated water and deemed “excellent” by those
who sampled it.
 Prior to his death in 1888, just two years after
creating what was to become the world’s #1-selling
sparkling beverage, Dr. Pemberton sold portions of
his business to various parties.

 In 1993, Coca-Cola experimented with computer

animation, and the popular “Always Coca-Cola”
campaign was launched in a series of ads featuring
animated polar bears.
 Carbonated drinks

 Various shape and sizes of bottle and aluminium

cans.
External Analysis of Coca-Cola
 Substitute Products

•Many kinds of substitutes for Coca-Cola products.

They are bottled water, sports drinks, coffee and tea.
Increase of numbers & varieties of water and sports
drinks that appeal to different consumers’ tastes.

•Coffee and tea are competitive substitutes because

they provide caffeine. Soft drinks can be substituted
with coffee. Blend coffees are also becoming more
popular with the increasing number of coffee stores.
 Threat of New Entrants
 Threat of new entrants is low in the soft drink
industry. To enter the industry, it requires high fixed
costs for production, warehouses, trucks, labour and
marketing activities. As there are limited bottlers,
new entrants may need to build their bottling plants.

 Coca-Cola have agreements with their existing

bottlers who have rights in a certain geographic area
in perpetuity. These agreements prohibit bottlers
from taking on new competing brands for similar
products. --- buying significant percent of bottling
companies, it is very difficult for new entrants to
find bottlers to distribute their products.
 It is difficult for the new entrants to convince
retailers to substitute their new products for Coca-
Cola at a lower margin. Even new entrants are
willing to pay the same percentage of margins, the
price of their products may not be as competitive
as Coca-Cola’s.

 Coke have a long history of heavy advertising.

This makes them dominate with their strong
brand name and loyal customers all over the
world. This makes it virtually impossible for a
new entrant to match this scale of share in this
market.
 Competitive Rivalry
 The competitive pressure from rival sellers is the
greatest challenging faced by Coca-Cola. PepsiCo
is the main competitor for Coca-Cola and these two
brands have been in a power struggle for more than
a century.
 Although Coca-Cola owns four of the top five soft
drink brands (Coca-Cola, Diet Coke, Fanta, and
Sprite)
 Pepsi dominated North America with sales of
US$22billion, while Coca-Cola only had about
US$7billion, However, Coca-Cola has higher sales
in the global market than PepsiCo.
 Brand name loyalty is another competitive
pressure.

 The Brand Keys Customer Loyalty Leaders

Survey 2010 - the brands with the greatest
customer loyalty in all industries.

 Diet Pepsi ranked 258th (the highest ranking of

diet soft drink) & Diet Coke is far behind Pepsi’s
soft drinks at the position 336th.
 Pepsi has a more solid loyal customer base which
can make itself more competitive than Coca-Cola.
 Market Leadership
Coca-Cola FEMSA is the largest franchise bottler
of Coca-Cola trademark beverages in the world

 Business partnerships
Coca-Cola FEMSA is working together with The
Coca-Cola 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.
 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

 Collaborative customer relationships

Our company is working closely with its largest
clients to develop stronger multi-faceted
relationships
 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.

 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.
 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
industry’s potential

 Go-to-market strategies
We continuously evaluate our distribution model in
order to fit with the local dynamics of the
marketplace and analyze the ways.
 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.

 Sustainable Development
Sustainable development is an important pillar of
our Company’s 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.