Presentation on Coca cola
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The document discusses the five forces of Porter analysis for Coca-Cola. It lists the group members that performed the analysis and provides details about each of the five forces: 1) Threat of new entrants is low due to few switching costs but brand loyalty to Coke is high. 2) Substitute products like energy drinks and Pepsi pose a threat. 3) Individual buyers have little bargaining power but large retailers have some. 4) Suppliers are not concentrated and do not want to lose Coke as a customer. 5) Main competitor is Pepsi and competition is high between the two dominant brands.
Presentation on Coca cola
- 1. Group Member Anurag Barua Dibyendu Dey Chandan Verma Jashwant Prasad Singh Ritwik Borthakur
- 2. Five Forces of Porter
- 3. Introduction Coca-Cola is a carbonated soft drink sold in stores, restaurants, and vending machines in more than 200 countries. It is produced by The Coca-Cola Company of Atlanta, Georgia, and is often referred to simply as Coke (a registered trademark of The Coca-Cola Company in the United States since March 27, 1944).
- 5. Threat of New Entrants/Potential Competitors Entry barriers are relatively low for beverage industry: there is almost 0 consumer switching cost and very low capital requirement. There are more and more new brands appearing in the market with usually lower price than Coke products However Coca-Cola is seen not only as a beverage but also as a brand. It has a very significant market share for a long time and loyal customers are not very likely to try a new brand beverage.
- 6. Threat of Substitute Products There are many kinds of energy drink and soda products in the market. Coca-cola doesn’t really have a special flavor. In a blind taste test, people couldn’t tell the difference between Coca-Cola coke and Pepsi coke
- 7. The Bargaining Power of Buyers The individual buyer has little to no pressure on Coca-Cola The main competitor, Pepsi is priced almost the same as Coca-Cola. Consumer could buy those new and less popular beverages with lower price but the flavor is different and the quality is not guaranteed. Large retailers, like Wal-Mart, have bargaining power because of the large order quantity, but the bargaining power is lessened because of the end consumer brand loyalty. .
- 8. The Bargaining Power of Buyers There are many kinds of energy drink and soda products in the market. Coca-cola doesn’t really have a special flavor. In a blind taste test, people couldn’t tell the difference between Coca-Cola coke and Pepsi coke. People are getting concerns of negative effects of carbonated beverages. Increasing number of consumers begin to drink fruit juice, lemonade and tea instead of soda products
- 9. The Bargaining Power of Suppliers The main ingredients for soft drink include carbonated water, phosphoric acid, sweetener, and caffeine. The suppliers are not concentrated or differentiated. Any supplier would not want to lose a huge customer like Coca-Cola.
- 10. Rivalry Among Existing Firms Currently, the main competitor is Pepsi which also has a wide range of beverage products under its brand. Both Coca-Cola and Pepsi are the predominant carbonated beverages and commit heavily to sponsoring outdoor festivals and activities. As Coca-Cola has a longer history, it is advertised in a more classical approach while Pepsi tried to attract younger generation by using pop stars as brand ambassadors. Currently Coca-Cola slightly topped Pepsi as the possessor of the most U.S market share. There are other soda brands in the market that become popular, like Dr. Pepper, because of their unique flavors.
- 11. Thank You