Coca Cola Strategy

1. THE STRATEGIC POSITIONING OF
COCA-COLA
Group 6

2. STRUCTURE
1. The Coca-Cola Company as a world leader
2. Strategic Positioning of Coca-Cola
2.1. Operating globally vs. acting locally
2.2. Coca-Cola’s distribution model
2.3. Differentiation strategy vs. cost leadership strategy
2.4. Margin vs. volume strategy
2.5. Segmentation: broad coverage strategy vs.
focus strategy
2.6. Growth strategy
3. Conclusion

3. 1. THE COCA-COLA COMPANY
 Recipe invented in 1886, company founded in 1892
 Leading manufacturer, marketer and distributor of
non-alcoholic beverage concentrates and syrups
world-wide
 Customers in 200 countries all over the world
 Brand value: 80.68 billion US dollars
 Great success

4. 2. STRATEGIC POSITIONING OF
COCA-COLA
Market definition
 Relevant sector: carbonated soft drinks market
 Dominated by Coca-Cola with a share of 47%
 High market concentration in this industry

5. 2.1. OPERATING GLOBALLY VS.
ACTING LOCALLY
 Many activities are controlled centrally
 More than 230 brands in nearly 200 different countries
→ meeting demands of local tastes and cultures as a big
challenge
 The Coca-Cola Company has delegated decision making
largely to individual markets
Maintenance of a global brand strategy, BUT:
communication is different in each country.

6. 2.2. COCA-COLA‘S DISTRIBUTION
MODEL
 Products available in supermarkets and other retail
stores
 Package: cans and bottles (glass/ plastic)
 Offered in many restaurants
 Really easy and convenient to get the product

7. 2.3. DIFFERENTIATION STRATEGY VS.
COST
LEADERSHIP STRATEGY
 Coca-Cola Company: differentiation strategy (high
amount of money is spent on
advertising for creating a unique
brand image)
 E.g. Coca-Cola Zero
with Manuel Neuer

8.  Many differentiated products:
 Products are sold at a slightly higher price compared
to competitors
 BUT: a clearly higher benefit is offered
 Additionally: importance of the motivation,
healthiness and happiness of its employees

9. 2.4. PROFIT MARGIN VS. VOLUME
STRATEGY
 Coca-Cola: Profit margin strategy
 Strong product differentiation and low price
elasticity
 Benefit leader
 Charge of a price premium (but only slightly higher
than the competitors’)

10. 2.5. SEGMENTATION
 Coca-Cola: broad coverage strategy
 Offers many different products (e.g. fruit drinks,
sport drinks) in many different flavors to a wide
range of customers all over the world
 No specialization in customer groups, products or a
geographical area

11. 2.6. GROWTH STRATEGY
 Internal growth: Ansoff’s matrix
- Beginning: market penetration
strategy
- Market development
(internationalization) →
launching into foreign markets
- Product development → modeling of new products
- Diversification
 External growth: acquisitions

12. 3. CONCLUSION
 Best combination of operating globally and locally
 Awareness of necessity of advertising (not enough to offer
different products of superior quality)
 Consciousness of the need for diversification
 Responsibility taken in the field of their employees
 Ability to react quickly to changes in the environment →
ability to adapt its business model efficiently to different
surroundings
 Permanent efforts to grow