Statistical Analysis.
- 1. Strategic Analysis By Jessica Goodale and Peter Chilton.
- 2. A Brief History… The Coca-Cola Company This is an American historical multinational beverage corporation and manufacturer, retailer, and marketer of nonalcoholic beverage concentrates and syrups, which is headquartered in Atlanta, Georgia. The company is best known for its flagship product Coca-Cola, invented in 1886 by pharmacist John Stith Pemberton inColumbus, Georgia. The Coca-Cola formula and brand was bought in 1889 by Asa Griggs Candler (December 30, 1851 – March 12, 1929), who incorporated The Coca-Cola Company in 1892.
- 3. Coca-Cola Product Portfolio… Today Coca-Cola have established many different products. Although this presentation will refer specifically to the original Coca-Cola product, here are some of Coca-Cola’s other products…
- 4. Mission Statement… Coca-Cola is a multi-national company. They aim to create high value products. As a company they care about the well-being of both their customers and employees.
- 5. Industry life cycle… The carbonated drinks industry is a highly competitive global industry. According to John Sicher of Beverage Digest (2005), Coca-Cola was the number one brand with around 4.5 billion cases sold in 2004. Following them was Pepsi with 3.2 billion cases, and Cadbury had 1.5 billion cases sold. However, the market share shows a different picture. Coca-Cola and PepsiCo control the market with Coca-Cola holding a 43.1% share and Pepsi with a 31.7% share. However these market shares for both Coca-Cola and PepsiCo have slightly decreased from 2003 to 2004. Coca-Cola’s volume has also decreased 1.0% since 2003, whereas PepsiCo’s volume has increased 0.4%.
- 7. Market Map… Modern/New Traditional High in sugar taste Low in sugar taste Pepsi Coke Diet Coke Diet Pepsi Coke Zero Pepsi Max Pepsi Next
- 8. Pestle Analysis… P E S T L E Political Economical Social Technological Legal Environmental
- 9. In 2014, many countries in the Middle East boycotted Coca Cola as revenge against the USA’s economy after the USA lead invasion of Iraq. They believed that refusing to sell Coca Cola, would affect the USA’s economy because Coca Cola is a top brand in the USA. This had some effect on Coca Cola as Coca Cola brand value fell by 4%. P Political
- 10. When the global economic crisis occurred Coca Cola stayed better off, unlike like many other business who felt the full front of the business. Coca Cola share values fell by 2.6%, but there market share stayed at a continuous percentage of 22% through the years of 2007 to 2009. E Economical
- 11. Due to the increase in popularity of a healthy life style, the sale in fizzy drinks have declined from 50 million sales in 2008 to 42.5 million in 2012. This meant that Coca Colas profits have taken a hit, this then lead Coca Cola to invest in bottled water, this is when Coca Cola bought Dasani, Vitamin Water and Smart Water. These drinks as expected excelled in sales, as the healthy life style trend sweeps the globe. S Social
- 12. One main thing that has improved with technological advances it promotion. With the increased use of media, adverts are made and some are specifically design to use social media to promote the company’s products. They also invest more in adverts design for particular holidays, such as Christmas. Millions of dollars are spent on advertising for different platforms such as television, social media, and the online. One particular advertising scheme that work favourably for coca cola was being able to personalise the label on a coke bottle. You could purchase a pre made bottle with your name or go online and type your name in yourself. T Technological
- 13. Coca-Cola have the legislation on their products, this is so that they don’t lose out on potential profit. This means that other companies are allowed to sell products similar to coke, but if the products are too similar Coca Cola have the right to sue that company. Therefore Coca-Cola protect the rights to their product and as a result protect their brand. L Legal
- 14. Coca-Cola constantly monitors their carbon footprint. This is a necessity as they can avoid big fines from the government. They also recycle their waste responsibly and encourage their customers to recycle their bottles and cans after use. E Environmental
- 15. Strengths • The company has the world’s largest market share in cola-drink category. • High Profit margins. • Global distributors. • Good access to sponsorship and advertisement deals. • Highly popular employer. Weaknesses • Their products are unhealthy and has links to diabetes and obesity. • Their packaging (plastic bottles) are environmentally unfriendly. • Bad PR Backlash from charitable partnership with ‘Go Red For Women’. Threats • Consumer demand is moving toward healthier products. • Sugar Tax legislation is evident in the UK. • Raw materials becoming more expensive will increase the costs of goods. • Increased competition as the soft drinks market grows. Opportunities • New manufacturing technologies can reduce cost of production. • Infrastructure improvements in developing and remote areas will make distribution more efficient. • High economic growth will be the source of market growth. SWOT Analysis…
- 16. Porters Five Forces… Coca-Cola have the main power when barging with suppliers as the ingredients to make Coke are not hard to get hold of, this means that Coca-Cola can get a good deal when bargaining with suppliers. Bargaining power of suppliers. Threat of New Entrants. Threat of substitute products or services. Bargaining power of Buyers Rivalry Among Existing Competitors. Coca-Cola’s main competitor is Pepsi other popular brands like Dr Pepper have failed to reach the popularity that Coca-Cola and Pepsi have reach as they are unable to produce a unique flavour which they have been able to make. Coca-Cola rely on customer loyalty, instead of having a unique product, as in a blind taste test, people couldn’t tell the difference between Coke and Pepsi. Coca-Cola isn’t worried about the barging power of an individual person, they are more worried about a large chain buyer, such as Asda or Tesco, as they have more power to supply the costumers. Coca-Cola rely on customer loyalty, as loyal customers are more likely to avoid new brands and stick with their favourite. This is how they deal with the threat of new entrants.
Editor's Notes
- #3: A Brief History… Sources: https://en.wikipedia.org/wiki/The_Coca-Cola_Company
- #5: Sources: http://www.coca-cola.co.uk/about-us/mission-vision-and-values
- #6: Sources: https://www.csbsju.edu/Documents/libraries/zeigler_paper.pdf
- #8: Sources: www.perceptualmaps.com
- #10: Sources: http://interbrand.com/best-brands/best-global-brands/2015/ranking/#?listFormat=ls
- #11: Sources: http://interbrand.com/best-brands/best-global-brands/2015/ranking/#?listFormat=ls
- #12: Sources: http://interbrand.com/best-brands/best-global-brands/2015/ranking/#?listFormat=ls
- #13: Sources: http://interbrand.com/best-brands/best-global-brands/2015/ranking/#?listFormat=ls
- #14: Sources: http://interbrand.com/best-brands/best-global-brands/2015/ranking/#?listFormat=ls
- #15: Sources: https://www.scribd.com/doc/113892116/pestel-analysis-of-coca-cola http://research-methodology.net/coca-cola-pestel-analysis/