Value Proposition canvas- Customer needs and pains
Coca cola strategic management
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3. Contents
Coca-Cola History
Vision, Mission & Objectives
PEST Analysis
Porter's 5 Forces
SOWT Analysis
Corporate Strategy
Business Strategy
Coca-Cola Life Cycle
BCG Matrix
Recommendations
4. COCA-COLA History
Coca-Cola history began in 1886 when the curiosity of
an Atlanta pharmacist, Dr. John S. Pemberton, led him
to create a distinctive tasting soft drink that could be
sold at soda fountains.
He created a flavored syrup, took it to his
neighborhood pharmacy, where it was mixed with
carbonated water and deemed "excellent" by those
who sampled it.
Dr. Pemberton's partner and bookkeeper, Frank M.
Robinson, is credited with naming the beverage "CocaCola" as well as designing the trademarked, distinct
script, still used today
5. COMPANY OVERVIEW
A leading manufacturer,
distributor and marketer of
non-alcoholic beverage
concentrates and syrups
The company owns or
licenses more than 500
brands
It operates in more than 200
countries
The company is
headquartered in Atlanta,
Georgia
7. Our vision serves as the framework for our road
map and guides every aspect for our business by
describing what we need to accomplish in order
to continue achieving sustainable , quality
growth
People: Be a great place to work where people
are inspired to be the best they can be .
Portfolio: Bring to the world a portfolio of quality
beverage brands that anticipate and satisfy
people’s desires and needs.
8. Partners: Nurture a winning network of customers and
suppliers , together we create mutual , enduring value.
Planet : Be a responsible citizen that makes a
difference by helping build and support sustainable
communities.
Profit : Maximize long-term return to shareowners
while being mindful of our overall responsibilities.
Productivity : Be a highly effective, lean and fastmoving organization
9. Our Roadmap start with our mission, which is
enduring. It declares our purpose as a company and
serves as the standard against which we weigh our
action and decisions.
To refresh the world.
To inspire moments of optimism
happiness.
To create value and make a difference .
and
10. The main objectives for the Coca-Cola Company are
To be globally knows as a business that
conducts business responsibility and ethically.
To accelerate sustainable growth to operate in
tomorrow’s world.
To maximize share owner value over time.
11. To maximize long-term cash flow
To ensure the strongest and most efficient
production, distribution, and marketing
systems possible
By having these objectives , it forms the
foundations for companies in decision making
process .
12. Political Forces:
*Stability of government ( after 25th Jan. and
30 June
*Tax Law
* Attitude towards foreign companies
Economic Forces
*Interest Rate
*Inflation Rate
*Energy cost &availability
*Wages ( Low labor cost
15. Threat of New Entrants: Medium Pressure
Economies of scale
Switching costs
Capital requirement
Product differentiation (variety)
Access to distribution channels
16. Threat of Substitute: Medium to High pressure
Availability of substitutes
Switching costs
Coca-cola doesn’t really have an entirely unique
flavor. In a blind taste test, people can’t tell the difference
between Coca-Cola and Pepsi.
17. Bargaining Power of Buyers: Low pressure
The individual buyer has small pressure on
Coca-Cola
Large retailers, like Carrefour, have bargaining
power because of the large order quantity, but
the bargaining power is lessened because of
the end consumer brand loyalty.
18. Bargaining Power of Suppliers: Low pressure
Raw materials of soft drink industry include CO2,
water, sugar, syrup, plastic, glass, tins, etc.
Amount purchased from supplier
Switching costs
Suppliers forward integration
20. Strengths
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3.
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6.
7.
8.
Global presence
Brand awareness
Logo famous
Strong marketing and advertising
Customer loyalty
Bargaining power over suppliers
Corporate social responsibility
Strong distribution channels
Weaknesses
1.
2.
3.
4.
5.
Negative publicity
Low profits in strong areas
Decline in cash flow
Supply is restricted
Significant focus on carbonated
drinks
6. Brand failures or many brands
with insignificant amount of
revenues
7. Carbonated drinks have bad
physical effects
21. Opportunities
1. Bottled water consumption growth
2. Increasing demand for healthy food
and beverage
3. Growth through acquisitions
Threats
1.
2.
3.
4.
Changes in consumer preferences
Water scarcity
Negative health effect
Decreasing gross profit and net
profit margins
5. Competition from PepsiCo
6. Saturated carbonated drinks
market
26.
Coca-Cola should try to have product differentiation for carbonated drinks through R&D
Coca-Cola should spend more R&D on avoiding bad physical effects of carbonated drinks.
Coca-Cola should focus on non carbonated drinks as bottled water and healthy drinks
Coca-Cola should start producing new products rather than beverages as food and snacks
to enter a new life cycle
Coca-Cola should think about Vertical Integration :
- Backward Integration: Produce raw Material
- Forward Integration : Distribution ( Coca-Cola Stores )
Coca-Cola's distribution channel is mostly through retails. Whereas the competitors also
concentrates more on Restaurants and Coffee shops. Coca-Cola should try to increase
their distribution in these areas .