Business Environment Project

Open Happiness

Altogether 1.7 billion servings of Coke products are consumed every day

Coke makes so many different beverages that if you drank one per day, it would take you over 9 years to try them all

Coca-Cola's $35.1 billion in revenue makes it the 84th largest economy in the world, just ahead of Costa Rica

The Coca-Cola brand is worth an estimated $74 billion: more than Budweiser, Pepsi, Starbucks and Red Bull combined

Coke vs. Pepsico soft drink revenue -- around $28 billion vs. $12 billion (More than twice as big a Pepsico)

If every drop of Coke ever produced were put in 8-ounce bottles and laid end-to-end, they would reach the moon and back over 2,000 times

The red and white Coca-Cola logo is recognized by 94% of the world's population

Around the world, the average person consumes a Coke product every four days

Americans ingest 1.7 million tons -- or 5 Kg per person -- of sugar each year from Coca-Cola alone

Amazing facts about me

Create opportunities for new product, product improvements and new marketing technique - • Design of more effective marketing

campaign • Small turn around time for launch of

various bottle sizes

Within last two years, the rate of production of bottling plants has increased two folds

Even though, Coca Cola is committed to protect the environment, Company has faced constant allegations along the following line -

• ~ 350 Billion L of water consumption• Largest consumer of sugar and corn

syrup To improve the self image – Coca Cola has been constantly working on 3 R – - Reduce - Recycle - Replenish

• Non alcoholic beverage is under constant vigil of FDA and similar bodies across countries. Last year alone, one fifth changed their rules

• Political conditions, especially in international markets (civil unrest, government changes ) alter conditions to conduct business

• Penetration and persistence in a market is dependent on the surrounding environment

Not a need based product and thus consumption is greatly effected by economic cycle of the geography

• Depression in US in 2008 and EURO crisis which looms till date

• India and China continue to register a growth of 7% and 5% CAGR respectively

People are practicing healthier life styles due to which consumption of carbonated drink is constantly decreasing (down by 15% in USA). This has also forced companies to enlarge its health drink portfolio (49 products added)Coke also has lot of sugar because of which health conscious people have started to avoid its consumption

Markets dynamics are strongly linked with legal framework of the surrounding:-

• Halted operation in India for 16 years

• Ban by few EU countries dues to poisoning of ~100 Belgium children

• Demonstration in India due depletion of water and alleged usage of pesticides

PESTEL Analysis of Soft drink industry

Political Economic Social

LegalEnvironmentalTechnological

Open Happiness

My Internal realizations

• Brand Equity – Most recognized brand in the world. Has vast global presence and unique brand identity

• Company valuation – One of the most valuable companies in the world, Coca cola is valued around 79.2 billion dollars

• Vast global presence – Of the 249 countries in the world, Coca cola is present in 200 countries across the world

• Largest market share – There are only 2 Big competitors in the beverage segment – Pepsi and Coca cola. Out of these 2, coca cola is

the clear winner and hence has the largest market share

• Fantastic marketing strategies – Unlike Pepsi, Coca Cola always tries to win peoples heart. Where Pepsi’s target is continuously

changing, and is targeted towards youngsters, Coca cola targets people of all ages.

• Customer Loyalty – Very high loyalty

• Distribution network – Commands the largest distribution network in the world

Strengths

• Not good at product innovator – Coca Cola has mostly made inorganic growth as a reactive strategy. Has rarely been able to

identify future trends of the market to optimize its portfolio

• High debt level due to acquisition – Very high debt borrowed from the market to fuels its inorganic growth

• Tainted with water mis-management and pesticide usage allegations have tainted their brand image

Weakness

Open Happiness

My external image

• Portfolio diversification – Diversification in the health and food business will improve the offerings of Coca cola to their customers.

This provides opportunity of cross sell to existing customers and to leverage existing supply chain

• Packaged drinking water – Coca cola has a presence in the packed drinking water segment though Kinley. Kinleys expansion is slow

as of now and has a huge potential of expansion

• Market the lesser selling products – In the product portfolio of Coca cola, there are several products which have not found

acceptance in the market. Coca Cola needs to concentrate on the marketing of these products as well

Opportunity

•

Raw material sourcing – Water is a big threat to Coca cola. Coca Cola has 115 cases in Indian Penal court with regards to wastage of

water

• Indirect competitors – Coffee chains like Starbucks, Café coffee day, Costa coffee are on the rise. These chains offer a healthy

competition to Coca colas carbonated drinks. Similarly, health drinks like Real and Tropicana as well as energy drinks like Red bull

and Gatorade are stealing away the market share indirectly

Threat

Open Happiness

Higher score in internal factory summary matrix depicts stronger internal dynamics

The END

A Goat DRINKING COKE - MUST WATCH.mp4

To understand Coca Cola’s customer’s outreach