8/13/2019 Coca Cola Ppt Case Study

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Presented By:Karishma Chandarana

Vanita Jain

Ananta Shah

Krutarth Patel

Sailesh Sah

CASE STUDY

Group No.10

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Invented in 1887 by john Syth. Worlds best known brand name Robert goizeta CEO 1981-1997 Soft drink industry categorised in following

ways:RefreshmentRejuvenationHealth & nutritionReplenishment

70 % of cokes sales & 80 % of its profit are nowearned outside the US.

Company has 50% share of world market for

carbonated drinks.

Background

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Coca cola has continued to increaseworldwide sales through clever marketing

& occasional products. It was Americas most admired company in

the fortune ranking but it has notsustained this position in the late 1990s.

Coca cola has also been affected fromeconomic crises.

In terms of increase shareholders wealth,coca cola was unrivalled in the USthroughout the leadership of itscharismatic chief executive, RobertGoizueta.

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New product launches,1960 : Fanta- the orange drink; Tab- sugar freecoke

1982: Diet coke

1985: New coke was launchedSprite & Minute maid juices are some other

famous productsExtended product line of flavoured water and

lemon & vanilla flavour coke1999: its name was linked to fashion n sports

clothing, first significant extension of brand

Products & Promotion

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Production & Distribution

It controls production of its concentratedsyrup from Atlanta Mixing, bottling, canning & distribution is

franchised to the independent businesses

worldwide. Goizueta inherited an under performing

network of distribution and set aboutstrengthening it by JVs and tight controls.

He invested in underperforming bottlers &sold to those who could invest more into them

The most powerful & pervasive Distribution

Network

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Promotional Activities

2001 formed a JV with P&G to team upwith its products like Pringles & allied withDisney for promotional activities.

Sold through Walmart & Mac Donalds. Increased emphasis on packaging &

branding on the cost of pureadvertisements.

It has defended the increased competitionthrought supplying from convinence store,fast food chains & vending machines.

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Competition

Increased competition from retailers own brands. Main competitor- Pepsi whos market share is 30% of

US market and 20% of world market

Pepsi diversified into Snack food (Fritolay in US,

Walkers & Smiths in UK) & Restaurants(PizzaHut,Taco Bell, Kentucky fried chicken )

Owns its bottling networks mostly

1996, Relaunched Pepsi with a contemporary Blue

shade. Consequently divested its restaurant business and

acquired Orangina & Tropicana.

Other competitor is Cott which produces discounted

colas for Walmart in US & Sainsbury & Virgin in UK.

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Why is Coca-Cola number one in its

Industry?

New product

launches

Distribution

network

M & A and

Statergic

Allaince

Heavy

Promotional

expenses

Different

outlets

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New Product launches Fanta, DietCoke, Tab.

The most powerful & pervasiveDistribution Network. JV with P&G to team up with its

products like Pringles Allied with Disney for promotional

activities. It has defended the increased

competition throught supplying fromconvenience store, fast food chains &vending machines.

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Where is its Competitive Advantage?

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The secret recipe for Coca-Cola, which arguablytastes better than other cola drinks.

Their ability to continue developing newproducts and re-inventing old ones Coca-Colacurrently offers over 400 brands in 200markets worldwide.

Joint venture with Procter & Gamble. Coca-Cola accessible to billions of people

worldwide. Allied with Disney for promotional activities

Coca-Colas production techniques are so welldeveloped that it costs a fraction of the sellingprice to manufacture their product, resulting inhigh profit margins.

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If It avoid serious mistake ,dose it need

to do anything radically different to

retain its position?

1981 to 1997 coco cola made miss judgments

The Product launch in 1982 diet Coke was less

Significant other than America

New coke launched in 1985 to replace orignal

blending . No because they already doing heavy

promotional activities

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