strategic management of coca cola india for bms students
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GROUP PROJECT ON STRATEGIC MANAGEMENT
TOPIC:
Presentation made bysameer omle-47
chinnaiah-33Shankar jadhav-26
pratik parte-50pratik devekar-15
Presentation made bySameer Omles-47chinnaiah-33Shankar jadhav-26pratik parte-50pratik devekar-15
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
HISTORY OF COCA COLA• Coca-Cola was first introduced by John
Smyth Pemberton• He first distributed the product by carrying
it in a jug down the street to Jacob’s Pharmacy and customers bought the drink for five cents at the soda fountain
VISION
Our vision serves as the framework for our Road map and guides every aspect of 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
• 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 share owners while being mindful of our overall responsibilities
• Productivity: Be a highly effective, lean and fast-moving organization
MISSION
• To refresh the world...• To inspire moments of optimism and happiness...• To create value and make a difference
VALUES
• Leadership: The courage to shape a better future• Collaboration: Leverage collective genius• Integrity: Be real• Accountability: If it is to be, it's up to me• Passion: Committed in heart and mind • Diversity: As inclusive as our brands• Quality: What we do, we do well
OBJECTIVES
• To know the core values, vision and mission
• To understand the internal and external environment in which Coca Cola operates.
• To understand the future prospects of different products
• To decipher whether Coca Cola strikes a balance between its profits and social responsibilities.
• To identify and characterize the different growth strategies used by Coca Cola
• To know about the Coca-Cola Company’s strategies management process
Coca-cola bottles
• 1894 was the first time Coca-Cola was bottled
1894- early 1900s 1905-1916 1915- today today
Product Portfolio of CCI
coca cola17%
thums up36%
limca11%
sprite10%
kinley10%
others15%
Product Portfolio of CCI
Coca-Cola Recognition
• Coca-Cola is recognized by 94% of the world’s population
• Approximately 10,450 Coca-Cola brand drinks are consumed around the world each second of every day
COMPETITORS
Competitors Analysis
Competitors: PepsiCo, Parle Agro ProductsPepsi gives tough fight with almost similar investment, advertisement, Strategies and ProductsParle resurges with refreshing drinks as Appy Fizz, Fruity, LMNPepsiCo also has a snack product line including Lays, CheetosPepsiCo provide carbonated drinks, Fruit Drinks and Packaged Drinking Water.
Comparison of financial highlights
COMPANY NAME Coca cola Pepsi.co
Profit Margin33.768046 10.958194
Asset Turnover0.577 1.071
Return on Assets19.506218 11.736928
Earning Per Share5.12 3.97
Strategic planning process
A. Strategy formulation
Framing mission statement Analysis of internal environment Analysis of external environment Set up objectives Framing alternative strategies Analysis of strategies Choice of strategy
Strategic planning process
B . Strategy implementation
Formulations of plans Identification of activities Grouping activity Organizing recourses Allocate the resources
Strategic planning process
B . Strategy evaluation
Measurement of performance Comparison of performance Finding derivation Analysis derivation Taking corrective measure
SWOT ANYLASIS
• The best global brand
• World’s largest market share
• Strong marketing & advertising
• Corporate social responsibility
•Aggressive acquisitions•Increase in demand for bottled water•Growth of beverage consumption
•Negative publicity•Low profits in strong areas •Supply is restricted•Brand failures
•Intense competition •Change in customer preferences•Negative health effect•Water scarcity
STRENGTHS
WEAKNESS
OPPORTUNITIES
THREATS
PESTLE ANALYSI
S
POLITICAL
ANALYSIS
ECONOMIC
ANALYSIS
SOCIO-CULTURA
L ANALYSI
S
TECHNOLOGY
ANLYSIS
LEGAL ANALYSI
S
DEMOGRAPHIC
ANALYSIS
BCG MATRIX OF COCA-COLA
Question Mark
STAR
CASH COW
DOG
HIGH LOW
HIGH
LOW
BUSINESS GROWTH RATE
MARKET SAHRE
PLC
TYPES OF STRATEGY FOLLOWED BY COCA COLA
Advertising strategyHorizontal integration strategyForward integration strategyIntensive strategies Market penetration Market development Product development
TYPES OF STRATEGY FOLLOWED BY COCA COLA
MARKET PENETRATION
Brand development
Coca cola seek to increase market share through its intensive marketing effort which would be through •Increasing no of sales representative•Doing more advertisement•Increasing publicity effort•By reducing price
The brand development strategy of Coca Cola comprised redesigning of its brand development policies and techniques to keep up with the changing mindset of its consumers. Earlier, this brand believed in the following:• Afford ability• Availability• Acceptability
TYPES OF STRATEGY FOLLOWED BY COCA COLA
Market development strategy
Product development strategy
Coca cola follows market development strategy .It involved introducing present product & services of the company into new geographical area .This strategy is suitable for coca cola because coca cola is very successful at what it does
Coca cola company seek to increase sales by improving or modifying present product or services
TYPES OF STRATEGY FOLLOWED BY COCA COLA
Forward integration strategy
Horizontal integration
Coca cola has gaining ownership. And has control over distributer or retailer Company like coca cola produce own and sell own
Yes , coca cola company has control over its competitors Coca cola try to facilitated by mergers , acquisition and friendly take over among competitors which allows for greater economies of scale and enhancing transfer of recourses and competencies
TYPES OF STRATEGY FOLLOWED BY COCA COLA
Corporate level strategy
Advertising strategy
•Coca-Cola has long been committed to a product development strategy.•This allow Coca-Cola to penetrate existing markets with new products due to their high brand awareness.•This strategy capitalizes on Coca-Cola’s favorable trademark reputation.
Through this strategy coca cola try to increase sale and relations.
a) The main strategy is always designed to "achieve customer happiness".b) In order to achieve that goal, the company does research and offers
surveys to see what consumers like and dislike about their brand and product.
c) Coca-Cola offers products for all different ages, except for children who have not yet become toddlers.
d) However, there are many products that satisfy both genders, people with diseases such as diabetes, customers who are trying to lose weight, those who live on low income, etc.
e) The Coca-Cola Company offers products and service to "energetic, sportive, tired working people", people who are financially unstable, and simply those who are thirsty .
OTHER STRAREGIES
The strategy of the Coca Cola Company according to its website is to, “Be the world’s most recognized family brands, not just of soft drinks, but
of juice drinks, sports drinks, water and milk, To maintain a trusted local presence in every community served, To increase annual marketing budget sustainability launched by many
new products, And to develop a model to help retail customers maximize their sales
while the company continues to plan for the next one, five, and ten years in business”.
Is coca cola Market leader ?
Market Share of Carbonated Drinks
60%
35%
5%
coca cola pepsi.co others
Strategy evaluation & control
Strategy can neither be formulated nor adjusted to changing circumstances without process of evaluation
Strategy evaluation is an attempt to look beyond the obvious facts regarding the short term health of business
For evaluation we have made three questions?1. Are the objective of business appropriate?2. Are the major policies and plan appropriate?3. Check that all is set very well as per the plan?
RECOMMENDATIONS• For the products like diet coke, pulpy orange and kinlely soda
it better to stop manufacturing these products
• Invest profits for future growth and for earning more of market share and profits
• Invest heavily into products like fanta and sprite in order to push the products to star status.
• For coca-cola -cost management, product differentiation and marketing have become more important as growth slows and market share becomes the key determinant of profitability
• The organization has to carefully study external environment moves and accordingly devise strategies to gain competitive advantage
• Coca cola has to make every possible move to ensure that its image remains that of an FMCG giant that would never compromise on the quality front
Please enjoy a delicious and refreshing Coca-Cola Classic!
Thank You!
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