coca cola-competitve anaylsis-ihab itani
TRANSCRIPT
Type: Soft Drink (Cola)
Manufacturer: The Coca- Cola Company
Founder (s): John S. Pemberton
Country of Origin: United States
(Atlanta, Georgia)
Introduced: 1886
Area Served: Over 200 countries
Employees: 92,400
Company Overview
is an American multinational beverage corporation
and manufacturer, retailer and marketer
of non-alcoholic beverage concentrates
and syrups
• Coca-Cola recipe was formulated at the Eagle Drug and Chemical
Company, a drugstore in Columbus, Georgia
• It was inspired from European coca wine which was in France.
• It was initially sold as a patent medicine for five cents.
• Coca-Cola was first sold to the public in Atlanta at Jacob’s Pharmacy
• Only 9 servings of the soft drink were sold each day
• Sales for the first year were only $50
History
The Coca-Cola formula and brand was bought in 1889 by Asa Candler who incorporated The Coca-Cola Company in 1892.
Company`s Profile (Mission, Vision ,Values)
• Vision:- 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.
- Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities
• Mission:- To refresh the world in body, mind and spirit- To inspire moments of optimism through our brands and our actions- To create value and make a difference everywhere we engage.
• Values:Leadership: The courage to shape a better future
Collaboration: Leverage collective genius
Products
Aquarius
Cheery Coke
Coca-Cola Zero
Fanta
Sprite
PowerAde
Minute- Maid
Monster
Coke Lemon
Vanilla Coke
Years 2011 2010 2009 2008 2007
Revenue 46.54B 35.12B 30.99B 31.94B 28.86B
Gross profit 28.33B 22.43B 19.90B 20.57B 18.54B
Operating income 10.15B 8.499B 8.231B 8.446B 7.252B
Net income 8.572B 11.81B 6.824B 5.807B 5.981B
Company Analysis
Ansoff Matrix
New Market
Existing Marketing
Existing Product
New Product
Market Development• Coca-Cola
Share Size1.25 liter Bottle
Product Development• Coca-Cola
Vanilla• Fanta Lemon
Market Penetration
• Diet Coke
Diversification• Winnie the pooh Roo Juice• PowerAde
Generic Strategies
Cost Leadership
• Coca-Cola`s positioning is archived through economies of scale in research, development, and promotion.
• It is also achieved through effective/efficient distribution networks and manufacturing systems
Differentiation
• For Coca-Cola it`s achieved through superior quality product.
• High Brand image and recognition
• Promotion and packaging
• ex: Coca-Cola bottle (A symbol)
Focus• Coca-Cola have
230 brand globally some of these products were targeted for specific people who were for differentiation.
• Ex: Diet coke, Coke-zero
Main Competition limited to small number of big players. (Pepsi)
Main Competition limited to small number of big players. (Pepsi)
Threat of new Entrant
s
Fashionable new drinks, milk, coffee, beer
Bargaining power of Suppliers
Threat of Substitute products
Bargaining power of Suppliers
Low buyer bargaining,Prices and availability
Low supplier bargaining power due to scale of Coca-Cola.
No consumer switching cost
zero capital requirement
Porters Five Forces
Entry barriers are relatively low.
Medium to High pressure
Low
pre
ssu
reLow
pre
ssu
re
SWOT Analysis
STRENGTHS WEAKNESSES
OPPORTUNITIES THREATS
- Strong brand image- Financially stable
- Strong distribution channel- Heavy promotional activities- 70% revenue-outside USA
- Health care issues.-Product offering restricted to
beverages-Inability to launch new product.
- Large domestic market- Export potential
- Alliances and Merges
- Changing consumers preference-legal issues
-competition (Pepsi)-Large number of substitutes
- Increased prices of raw materials
• Differentiated Marketing
• Customer satisfaction
• Endorsement of celebrities
• Reasonably priced
• Consumer connecting advertisements
• Availability in every local market
Strategies of Coca-Cola
Competitive Advantages:
• Market Leadership: A huge Trademark.
• Strong Brand Portfolio: offers powerful and wide portfolio of beverages to it`s customers. Always exploring new categories.
• Channel Marketing: To classify the markets and develop targeted efforts for each consumer segment.
Competitors Analysis
- Pepsi is a very tough company to go against because they have almost similar investments, advertisements, Strategies and Products.
- PepsiCo also has a snack product line including Lays, Cheetos and Quaker OAT’s
- PepsiCo provide carbonated drinks, Fruit Drinks and Packaged Drinking Water
60%35%
5%
coca cola pepsi.coothers
Market Share of Carbonated Drinks
Comparison
Companies Coca-Cola Pepsi
Founded Atlanta, Georgia USA 1892
North CarolinaUSA1965
Company Ownership
Public Public
Sector Beverages Beverages
Statistics Number of Employees:
146,200Revenue: 48.01
billion
Number of Employees:
297,000Revenue: US$ 66.504 billion
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
Financial Objectives
- Investing to drive additional growth in key developing markets across the world in both Snacks and Beverages.
- Increase our investments in R&D, with particular focus on long-term bets and innovation to sustain our long-term growth.
Pepsi SWOT Analysis
Strengths
- Broad Product line - Great reputation for their products - Increasing market share 3 different sectors to improve efficiency
US food US drinks food and drinks abroad
#1 company in snacks - Doritos - Lays Chips - Quaker Oat
Weaknesses - Lack brand awareness with all products - PepsiCo doesn't have all the products under one brand
Threats - Weakened economy - Pepsi blamed for pesticide residues in their product.- Lawsuits - Several competitors due to broad product line
Opportunity - Invest in healthier products - Devote more focus to non carbonated healthy drinks - Focus on international presence and recognition - Invest in going green
Coca-Cola and Pepsi-Cola focused particularly on pop stars; notable soft drink promoters to advertise there products.
Pepsi ads often focused on celebrities choosing Pepsi over Coke, supporting Pepsi's positing as "The Choice of a New Generation.“
Pepsi generation was created focusing on the user of the drink, never the drink. Coke always focused on the drink.
Coca-Cola advertising is often characterized as "family-friendly", and often relies on "cute" characters (e.g. the Coca-Cola polar bear mascot and Santa Claus around Christmas).
Similar& Different Strategies Used
Conclusion
Coca-Cola currently offers more than 500 brands in over 200 countries or territories and serves over 1.7 billion servings each day.
Future Plans
2020 Vision & Commitment• Energy conservation/climate
change: reduce the overall carbon footprint of our business operations by 15% by 2020
• Sustainable packaging/recycling : reduce the impact of our packaging; maximize our use of renewable, reusable, and recyclable resources
• Product portfolio/wellbeing: provide refreshing beverages for every lifestyle and occasion