Fall08
1.1. Introduction::
1.1. Origin of the report:
This report is prepared with the respect to the course of Brand Management. Our task is to make an in-depth analysis on brand performance of Coca-Cola and complete a study that coers all-important factors of Brand Management.
11..22.. OObbjjeeccttiivve oof tthhe RReeppoorrtt::
This report has been prepared considering a number of ob!ecties. The ob!ecties are"
## To apply our knowledge that we hae gathered from ‘‘Brand Management’’ course into the report
## To proide the oeriew of Coca-Cola.
## To measure the business alue of Coca-Cola.
## To analy$e and find out the performance of Coca-Cola.
## Brand promotional actiities and releance of them.
## To get knowledge and apply it into the real world.
1.3 Scope:
The %eport is made on the basis of what people think about and the brand performance of Coca-Cola. &or this we searched in the internet and seeral articles to get the actual information. This is focused on Brand performance' positioning' marketing mis of Coca- Cola and in depth analysis on the brand.
1.4 Sources:
(e(econdary informatiation was collelected from books and ththe web sitsite of Cocaca-C-Colola.a. (tatistical techni)ues were used to analy$e the collected information and this information was presented in the graphical form. *lso seeral internet articles and the marketing knowledge of the group members are also applied.
Bc!ground of the "o#pn$ The Cocaca-C-Colola Companany is an **meriricacan multltininatatioionanal bebeeerarage cocorprpororatatioion anandd manufacturer' retailer and marketer of non-alcoholic beerage concentrates and syrups.The company is best known for its flagship product Coca-Cola' inented in +88, by pharmacist ohn (tith emberton in Columbus' /eorgia Besides its namesake Coca-Cola beerage' Coca-Cola currently offers more than 00 brands in oer 100 countries or territories and seres oer +.2 billion serings each day. The company operates a franchised distribution system dating from +883 where The Coca-Cola Company only produces syrup concentrate which is then sold to arious bottlers throughout the world who hold an e4clusie territory. TThe Cocaca-C-Colola Companany ownns itits ananchchor bobottttleler in 5ortrth **meriricaca' Cocaca-C-Cololaa %efreshments.
*ccording to the 100 *nnual %eport' the company sells beerage products in more than 100 countries. The report further states that of the more than 0 billion beerage serings of allall tytypes consumed worlrldwide eery day' beerages bebearing the trademararks owned by or licensed to Coca-Cola account for appro4imately +. billion 6the latest figure in 10+0 shows that now they sere +., billion drinks eery day7. Of these' beerages bearing the trademark Coca-Cola or Coke accounted for appro4imately 289 of the Company:s total gallon sales. ;n 10+0 it was announced that Coca-Cola had become the first brand to top %%++ billion in annual <= grocery sales.
*lso according to the 1002 *nnual %eport' Coca-Cola had gallon sales distributed as follows"
## >19 in the ## ?29 in Me4ico' ;ndia' Bra$il' apan and the eople:s %epublic of China ## 109 spread throughout the rest of the world ;n 1003' the company generated reenues of @?+ billion with @,.8 billion net income. Coca- Cola Company wiwill tatake cocontrol of ththe bottltlerer:s 5ortrth **merica operations' giing ththee company control oer 309 of the tototal 5ortrth **merica olume. ;n return' Cocaca-Colala enterprises will take oer Coke:s bottling operations in 5orway and (weden' becoming a Auropean-focused producer and distributor. "o#pn$ &ro'(e: Bsic Infor#tion "o#pn$) #e : The Coca-Cola Company "o#pn$t $pe : ublic corporation Industr$ : Beerage "o#pn$* ounded : +831 "o#pn$* ounder : *sa Candler +reS erved : More than 100 countries )u#bero fb rnds : More than 00 brands ,ed-urters : Coca-Cola head)uarters' *tlanta' /eorgia' <.(. "hir#n "/O " Muhtar= ent 0ebsite : www.thecoca-colacompany.com *innci( Infor#tion Revenue : <(@ ?.++3 billion 610+07 OpertingI nco#e : <(@ 08.>>3 billion 610+07 )etIn co#e : <(@ ++.803 billion 610+07 ot( ssets : <(@ 21.31+ billion 610+07 ot( /-uit$ : <(@ ?+.?+2 billion 610+07 /#p(o$ees : +?3',00 610+07 Brnd &ro'(e: "oc"o( Coca-Cola is a carbonated soft drink sold in stores' restaurants' and ending machines in more than 100 countries. ;t is produced by The Coca-Cola Company of *tlanta' /eorgia' and is often referred to simply as Coke 6a registered trademark of The Coca-Cola Company in the ission: The official website of Coca-Cola states in its mission statement" “ At the Coca-Cola Company we strive to refresh the world, inspire moments of optimism and happiness, create value and make a difference” . Coca-Cola %oadmap starts with a mission' which is enduring. ;t declares the purpose as a company and seres as the standard against which we weigh our actions and decisions. # To refresh the world # To inspire moments of optimism and happiness. # To create alue and make a difference. ision: Coca-Cola’s ision seres as the framework for the %oadmap and guides eery aspect of its business by describing what they need to accomplish in order to continue achieing sustainable' )uality growth. # &eop(e: Be a great place to work where people are inspired to be the best they can be. # &ortfo(io: Bring to the world a portfolio of )uality beerage brands that anticipate and satisfy people:s desires and needs. # &rtners: 5urture a winning network of customers and suppliers' together we create mutual' enduring alue. # &(net: Be a responsible citi$en that makes a difference by helping build and support sustainable communities. # &ro't: Ma4imi$e long-term return to shareowners while being mindful of our oerall responsibilities. # &roductivit$: Be a highly effectie' lean and fast-moing organi$ation. 0inning "u(ture of "oc"o(: Coca-Cola’s winning Culture defines the attitudes and behaiors that will be re)uired to make its 1010 Dision a reality. Coca-Cola promotes some cultures as" 5ive Our (ues: Our alues sere as a compass for our actions and describe how we behae in the world. # 5edership: The courage to shape a better future # "o((bortion: Eeerage collectie genius # Integrit$: Be real # +ccountbi(it$: ;f it is to be' it:s up to me # &ssion: Committed in heart and mind # 6iversit$: *s inclusie as our brands # 7u(it$: Fhat we do' we do well *ocus on the r!et: There are some habits which are gien as follows’ # The target audience of the Coca Cola brand loe to hae e4posure to media. # They are the mobile generation and spend lot of time on MM( and (M( chatting. # They spend most of the time on en!oying music. # They spend their home time on watching TDs. They like innoations in TD ads. Atc. "onsu#er behvior of "oc"o( The company:s beerages are generally for all consumers. Goweer' specifically of coca cola regular customer ’s buying behaior and characteristics are gien in the following section. # *ctors sti#u(te de#nd There are large numbers of factors that are affecting the demand of the Coca Cola but most out of them are the competitors’ price and promotional actiities and the life style attached with the brand. # "riteri for (terntives 5ow-a-days the personality attached' taste' freshness and other factors like marketing theme are set standards for alternaties to be selected. epsi proides the best alternatie to Coca Cola brand users. This strong factor changes the consumer behaior. # ;se of product Basic purpose of using Coca Cola is to )uench the thirst. But now days it has become a life- style status symbol. The use of the product is also ery simple with out any comple4ities in usage and also is aailable for drinking. "o#petitors epsi' the flagship product of epsiCo' The Coca-Cola Company:s main rial in the soft drink industry' is usually second to Coke in sales' and outsells Coca-Cola in some markets. %C Cola' now owned by the r epper (napple /roup' the third largest soft drink manufacturer' is also widely aailable. ;n +83?' epsi Cola was established in 5orth Carolina by pharmacist Caleb Bradham and epsi had imitated the franchise bottling system of coke. ;n +3+0' epsi build a network of 120 bottlers. ;n +31? and +3?1 epsi was declared bankrupt but still then it focuses on marketing strategy and sold its +1 o$ bottle for only a nickel----the same price that coke charged for ,. o$ bottle. ;n +3?8' coke first suit against epsi by claiming that epsi cola brand was an infringement on the coca cola trade mark. ;n +3>+' epsi won the law suit claimed by coca cola and counter suits between two companies. &rom +3?8-+3>+' epsi not only faced the competitor ship of coca cola but also surpasses royal crown and r. epper and in +3>0 it became the largest selling C( brand. *nd in +30' coke share of <.( market was >29 and epsi was +09. *round the world' many local brands compete with Coke. ;n eru' ;nca =ola outsells Coca- Cola' which led The Coca-Cola Company to purchase the brand in +333. ;n (weden' ulmust outsells Coca-Cola during the Christmas season. ;n (cotland' the locally produced ;rn-Bru was more popular than Coca-Cola until 100' when Coca-Cola and iet Coke began to outpace its sales. ;n ;ndia' Coca-Cola ranked third behind the leader' epsi-Cola' and local drink Thums Many of the brands aailable from the three largest soda producers' The Coca-Cola Company' epsiCo and the r epper (napple /roup' are intended as direct' e)uialent competitors. The following chart lists these competitors by type or flaor of drink. *(vor<$pe &epsi"o "oc"o( 6r& epper Snpp(e "o( epsi Coca-Cola %CC ola 6iet "o( iet epsi' epsi iet Coke' Coca- iet %ite' iet %C Ma4 Cola ero Cola "herr$=vored epsi Fild Cherry Coca-Cola Cherry Cherry %C "o( Ornge Mirinda' Tropicana Coca-Cola Orange Crush' (unkist Twister' (lice S0O +n($sis: *s a market leader in beerage industry and the most alued brand in the world' Coca-Cola has certain enormous strengths' weaknesses' huge opportunities and strong competitions. ;n this section' an in depth (FOT analysis is gien to measure a bit of the giant company’s total situation. Strengths: # Coca-Cola has been a comple4 part of world culture for a ery long time. The product:s image is loaded with oer-romantici$ing' and this is an image many people hae taken deeply to heart. # The Coca-Cola image is displayed on T-shirts' hats' and collectible memorabilia. This e4tremely recogni$able branding is one of Coca-Cola:s greatest strengths. An!oyed more than ,8 million times a day around the world Coca-Cola stands as a simple' yet powerful symbol of )uality and en!oyment 6*llen' +337. # *dditionally' Coca-Cola:s bottling system is one of their greatest strengths. ;t allows them to conduct business on a global scale while at the same time maintain a local approach. The bottling companies are locally owned and operated by independent business people who are authori$ed to sell products of the Coca-Cola Company. Because Coke does not hae outright ownership of its bottling network' its main source of reenue is the sale of concentrate to its bottlers. # The Coca Cola sells beerages in around 100 countries. *nd it has a huge ariety in the product line. # Coca Cola was the first commercial sponsor of Olympic /ames and it has been sponsoring the &;&* and cricket world cup eents. # eople like the taste and )uality of Coca Cola around the world. # (trong &inancial reseres and returns # Guge range of brands and ariety of product line to a huge e4tent 0e!nesses: Feaknesses for any business need to be both minimi$ed and monitored in order to effectiely. *chiee productiity and efficiency in their business’s actiities' Coke is no e4ception. *lthough domestic business as well as many international markets are thriing 6olumes in Eatin *merica were up +197' Coca-Cola has recently reported some declines in unit case olumes in ;ndonesia and Thailand due to reduced consumer purchasing power. *ccording to an article in &ortune maga$ine' ;n apan' unit case sales fell ?9 in the second )uarter of +338P scary because while apan generates around 9 of worldwide olume' it contributes three times as much to profits. # Eatin *merica' (outheast *sia' and apan account for about ?9 of Coke:s olume and none of these markets are performing to e4pectation. # Coca-Cola on the other side has effects on the teeth which is an issue for health care. # ;t also has got sugar by which continuous drinking of Coca-Cola may cause health problems. Being addicted to Coca-Cola also is a health problem' because drinking of Coca-Cola daily has an effect on your body after few years. # Customers are not being able to differentiate among few brands such as Coca Cola ero and iet. # ;t high relies on Coca Cola drink only. # Most of the beerages supply is restricted to few countries. # Eack of innoation. Opportunities: # Brand recognition is the significant factor affecting Coke:s competitie position. # Coca-Cola:s brand name is known well throughout 3>9 of the world today. The primary concern oer the past few years has been to get this name brand to be een better known. # ackaging changes hae also affected sales and industry positioning' but in general' the public has tended not to be affected by new products. # Coca-Cola:s bottling system also allows the company to take adantage of infinite growth opportunities around the world. This strategy gies Coke the opportunity to serice a large geographic' dierse area. # Making more innoations and oertaking competitors. *lso there are huge opportunities in ac)uiring firms which they hae been doing for a long time. ;n ;ndia' Coca-Cola ac)uired Thumbs-up cola and is doing a great !ob. # Eaunch healthy drinks # ;ncrease mineral water sales # ;ncrease *wareness programs # Eaunch other coca cola ariants in the untapped countries. 6ierentition Strteg$C &O6 &O&: "oc "o( O of Coca-Cola simply refers to a soft drink with good taste which will sere thirst. O or a differentiation strategy calls for the deelopment of a product or serice that offers uni)ue attributes that are alued by customers and that customers perceie to be better than or different from the products of the competition. The alue added by the uni)ueness of the product may allow the firm to charge a premium price for it. The firm hopes that the higher price will more than coer the e4tra costs incurred in offering the uni)ue product. Because of the product:s uni)ue attributes' if suppliers increase their prices the firm may be able to pass along the costs to its customers who cannot find substitute products easily. Coca Cola Company spends round about 109 of their total adertisement budget for maintaining its differentiation strategy. (imilarly coca cola has created its differentiation by utili$ing soft sell approach. Company has successfully positioned itself on the following standardsQ D Corporate reputation for )uality and innoation. D (uccessful communication of perceied strengths of the product. D (ymbol of fun and en!oy Fhy this definition' Coca-Cola has un)uestionably chosen a differentiation strategy. This has always been Coca-Cola’s strategy since the early days of the company’s life as eident by Foodruff refusing to match epsi’s , cent +1 ounce bottle. 6endergrass' 10007 Coca-Cola hopes to isolate their competition away from the market by creating a strong' brand loyal customer base. They hae dropped in market share lately and thus they need to create stronger adertisements that will once again proide a sturdy customer base. This strategy is a good choice for Coca-ColaQ howeer it can be detrimental if they are not careful. * couple more years of slipping market share may take Coca-Cola into the (tuck-in-the-Middle category of which it can be ery hard to climb out. There is a fine line between being confident in a company and being content. Coca-Cola better be careful that they do not mistake confidence with being content as their oerwhelming success oer the past century could and ery well may lead to ignorance of their current situation. Therefore if Coca-Cola wishes to not only e4ist but also prosper in the future' a much stronger concentrated effort toward a differentiation strategy will proe to be highly beneficial. 5i#ittions of the stud$: This report is not free from limitations. Moreoer the topic is so much ast' so we faced some problems while preparing this report. The limitations ac)uainted with this report are as the following. # Collecting preious information was little bit tough. # ;nformation might be +009 perfect. # *ll the internet sources might not be reliable. # ecisions only based on this report might not be appropriate always # Technical roblems # Time shortage "onc(usion This study lets the reader know about the huge entity of Coca-Cola' besides it creates brand awareness and might lead to likeliness of the products. (urely' Coca-Cola brand is giant in si$e. This %eport is aimed at reealing the brand performance of Coca-Cola and an in-depth analysis of the marketing programs of the brand. Coca-Cola currently offers more than 00 brands in oer 100 countries or territories and seres oer +.2 billion serings each day. The company operates a franchised distribution system dating from +883 where The Coca-Cola Company only produces syrup concentrate which is then sold to arious bottlers throughout the world who hold an e4clusie territory. Coca Cola has been successful by using 1. =ein Eane =eller' “trateic (rand %anaement ” , )rd #dition, prentice *all ,Inc. + 2. Fikipedia' “Cola !ars” , retriee date"++L+1L++' http"LLen.wikipedia.orgLwikiLColaRFars ?. =nowledge ;nn' @ ricin tratey Coke” , retriee date" ++L+1L++. http"LLkninn.blogspot.comL10+0L0,Lpricing-strategy-coke.html >. The Coca-Cola Company official Febsite' “/ur %anufacturin rocess” , retriee date" ++L+1L++. . &ortune 00' “ Annual $ankin of America’ s 0are Corporations” , retriee date" ++L+1L+'+ http"LLcgi.money.cnn.comLtoolsLfortuneLcompareR10++.!spSid+00