A PROJECT REPORT ON

COCO-COLA
Executive summary

In 1886, pharmacist John Pemberton from Columbus, Georgia invented the original Coca-
Cola drink and sold it as a medicinal beverage. Pemberton's bookkeeper, Frank M. Robinson,
is credited naming the products and creating its logo. Robinson chose the name Coca-Cola
because of its two main ingredients (coca leaves and kola nuts) and because it sounded like
an alliteration. John Pemberton had taken a break and left Robinson to make, promote, as
well as sell Coca-Cola on his own. He promoted the drink the best he could with the limited
budget that he had and succeeded.

In 1889, American businessman Asa G. Candler completed his purchase of the Coca-Cola
formula and brand from Pemberton's heirs with the intent to advertise and sell it as a
beverage to regular consumers. In 1892, the Coca-Cola Company was formally founded in
Atlanta by Candler. Candler was one of the first businessmen to use merchandising in his
advertising strategy. By 1895, Coca-Cola was being sold in every state in the union. Coca-
Cola’s first ad read "Coca Cola. Delicious! Refreshing! Exhilarating! Invigorating!”

As of 1948, Coca-Cola had claimed about 60% of the market share. In 1919, the company
was sold to Ernest Woodruff's Trust Company of Georgia. By 1984, The Coca-Cola
Company's market share decreased to 21.8% due to new competitors, namely Pepsi, being
released.
INDEX

Chapter no Particulars Page no

1 INTRODUCTION

2 ORGANIZATION
HISTORY

3 VISION AND
MISSION

4 INDUSTRY ANALYSIS
AND
INTERPRETATION

5 SWOT

6 7S FRAMEWORK

7 EXPERIMENTAL
LEARNING

8 REFERANCES

9 LEARNING AND
TAKEWAYS
INTRODUCTION

125 years of sharing happiness.

125 years we have been refreshing the world.

A Short History of

This is the remarkable story about the evolution of an iconic brand and the company that
bears its name. Since its birth at a soda fountain in downtown Atlanta, Georgia, in 1886,
Coca-Cola has been a catalyst for social interaction and inspired innovation. These unique
moments in history, arranged in chronological sequence, have helped create a global brand
that provides billions of moments of refreshment every day. Studies have shown that
Coca-Cola is among the most-admired and best-known trademarks in the world. In fact, it is
documented that “Coca-Cola” is the second-most widely understood term in the world, after
“okay.” If all the Coca-Cola ever produced were in 8-ounce contour bottles, and these bottles
were laid end to end, they would reach to the moon and back 2,051 times. That is one round
trip per day for five years, seven months and 14 days. Thirsty consumers around the globe
now enjoy Coca-Cola Company products 1.7 billion times every single day—about 19,400
beverages every second. If all the Coca-Cola ever produced were in 8-ounce contour bottles,
and these bottles were distributed to each person in the world, there would be 1,104 bottles
per person.

1880’s

1886 May 8. Coca-Cola is created by John S. Pemberton and served at Jacobs’ Pharmacy.
Nine drinks a day are sold during this year. Company accountant, Frank Robinson, names the
drink “Coca-Cola,” and thinking the two Cs would look well in advertising, pens the famous
Spencerian script logo The first newspaper ad appears announcing Coca-Cola as a “Delicious
and Refreshing Beverage.”

1887 Coupons are first used to promote Coca-Cola. John Pemberton registers his “Coca-Cola
Syrup and Extract” label as a copyright with the U.S. Patent Office.
1888 Asa Candler begins to acquire personal control of the Coca-Cola formula and patents
from John Pemberton and his partners.

1900

1900 Music hall performer Hilda Clark becomes the first

celebrity to appear in multiple advertising formats, including trays, posters and even
bookmarks. The second bottling plant to begin production under the 1899 contract opens in
Atlanta.

1901 The advertising budget surpasses $100,000 for the first time.

1903 The first convention of Coca-Cola Fountain Sales personnel is held in Atlanta.

1904 The first advertising for Coca-Cola appears in national magazines. Annual sales of
Coca-Cola hit the 1 million-gallon mark. Lillian Nordica, noted opera singer, begins to
endorse Coca-Cola and appears in nationwide advertising in 1905.

1906 Bottling operations begin in Canada, Cuba and Panama, becoming the first three
countries outside the United States to bottle Coca-Cola. D’Arcy Advertising Company begins
its 50-year association with The Coca-Cola Company. A straight-sided bottle is first used in
national advertising.

1910’s

1911 The annual advertising budget for The Coca-Cola Company surpasses $1 million for the
first time.

1912 Bottling operations are started in the Philippines, the Company’s first expansion into
Asia1911 The annual advertising budget for The Coca-Cola Company surpasses $1 million
for the first time. 1912 Bottling operations are started in the Philippines, the Company’s first
expansion into Asia.
1913 As the Company has grown, Coca-Cola is distributed via 2,300 wholesalers by more
than 415,000 retailers. Examples of advertising spending include $259,499 on painted wall
signs, $11,011 on pencils and even $5,411 on napkins.

1914 Asa Candler makes a $1 million donation to Atlanta’s Emory University, beginning the
Company’s long heritage of support for the school. The calendar artwork for this year is
named “Betty.” During this decade, two other named calendars appear— “Elaine” and
“Constance.” These are the only instances where the models are named on calendars.

The Contour Bottle COKE LORE

The tremendous success and growth of Coca-Cola encouraged other competitors to try to
imitate Coke by offering bottles with slight variations on the trademarked name and
distinctive script logo. Koka-Kola, Koca-Nola, Celery-Cola and Koke were just a few of the
products that tried to capitalize on our success. Working with our bottlers,
The Coca-Cola Company asked bottle manufacturers to submit designs for a bottle for
Coca-Cola that was so distinctive that it could be recognized by feel in the dark or identified
lying broken on the ground.
Alexander Samuelson of the Root Glass Company in Terre Haute, Indiana, designed the
distinctive shape, and it was patented on November 16, 1915. The bottle was modified and
slimmed down to work with the current bottling equipment and went into broader production
in 1916. This contour bottle was the only packaging used by The Coca-Cola Company for 40
years until the king-size package was introduced in 1955. In 1960, the contour bottle was
granted registration as a trademark by the U.S. Patent Office. Today, it is still the most
recognized bottle in the world, and the shape is used for packaging from the new aluminum
can to the 2-liter family size.

1920’s

1925 The Board of Directors passes a resolution placing the secret formula for Coca-Cola in
a bank vault at the Trust Company Bank in Atlanta. Outdoor billboards are introduced as part
of the advertising mix

1929 Two significant innovations debut: the bell-shaped Coca-Cola fountain glass and the
first standardized open-top cooler.

1950 Coca-Cola becomes the first product to appear on the cover of Time magazine. The
magazine wants to have a photo of Robert Woodruff on the cover, but he refuses stating that
the product is the only important element in the Company. The first television commercial for
Coca-Cola is broadcast on Thanksgiving Day on a CBS half-hour special featuring Edgar
Bergen and Charlie McCarthy.

1955 The Coca-Cola Company begins featuring African-Americans in market- ing with the
Harlem Globetrotters in 1951 and Olympic Games athletes Jesse Owens and Alice Coachman
in 1953. Clark University student Mary Alexander becomes one of the first AfricanAmerican
women to appear in print advertising when she is featured in 1955. The first king-size bottles
make their appearance in the United States. In addition to the standard 6.5-ounce bottles,
consumers can now purchase Coke in 10-, 12-, 16- and 26-ounce bottles.

1965 The Coca-Cola Company and its bottlers sponsor the first animated television special
for the cartoon strip Peanuts, “A Charlie Brown Christmas.

” 1966 Fresca, a citrus-flavored sugar-free soft drink, makes its debut.

1968 Bottling begins in Hungary, the Somali Republic and Yugoslavia. A one-way, or
nonreturnable, contour bottle is introduced.

1998 The Coca-Cola Company announces a 100-year partnership with the National
Basketball Association.

1999 The Coca-Cola Company acquires Peruvian soft drink Inca Kola and Schweppes
beverages in many markets around the world.

2005 An aluminum contour bottle is introduced for use in nightclubs and at special events.
Coca-Cola Zero, a zero-calorie cola, makes its debut.

2006 The Bottling Investments Group is established. This organization manages the
operations of Company-owned bottling plants around the world.

2007 The new World of Coca-Cola opens at Pemberton Place in Atlanta.

The Coca-Cola Company acquires Energy Brands Inc. (glacéau), maker of vitamin water and
smart water. The 20-ounce PET contour GRIP bottle joins the packaging ranks

2010 In the aftermath of a devastating earthquake, The Coca-Cola Company launches the
Haiti Hope Project, a public-private initiative that aims to develop a sustainable mango
industry in Haiti. The Coca-Cola Company acquires the entire North American bottling
operations of Coca-Cola Enterprises. 2011 The Coca-Cola Company celebrates 125 years of
brand Coca-Cola.
Brief details of top management in coco-cola company

The following are key management as of May 2017 (excluding VP positions and regional
leaders):

 Muhtar Kent (chairman of the board)

 James Quincey (chairman-elect and chief executive officer)

 Brian Smith (president and chief operating officer)

 Marcos de Quinto (chief marketing officer)

 J. Alexander M. Douglas, Jr. (President, Coca-Cola North America)

 Ceree Eberly (Chief People Officer)

 Irial Finan (President, Bottling Investments Group)

 Bernhard Goepelt (General Counsel and Chief Legal Counsel)

 Julie Hamilton (Chief Customer and Commercial Leadership Officer)

 Brent Hastie (Senior Vice President, Strategy and Planning)

 Ed Hays (Chief Technical Officer)

 Barry Simpson (chief information officer)

 Clyde C. Tuggle (Chief Public Affairs and Communications Officer)

 Kathy N. Waller (chief financial officer)

 Craig Williams (President, The McDonald's Division)

 Coca Cola PEST analysis

 Political environment

Non-alcoholic beverages fall within the food category under the FDA. The government plays
a role within the operation of manufacturing these products in terms of regulations. There are
potential fines set by the government on companies if they do not meet a standard of laws.
The following are some of the factors that could cause Coca-Cola company's actual results to
differ materially from the expected results described in their underlying company's forward
statement:

Changes in laws and regulations, including changes in accounting standards, taxation

requirements, (including tax rate changes, new tax laws and revised tax law interpretations)
and environmental laws in domestic or foreign jurisdictions. Coca Cola and other soft drinks
companies like Pepsico are currently embroiled in a battle over proposals across many US
states to introduce a soda tax on artificially sweetened beverages such as diet soda.

The tax, which raises soda prices by 3 cents per ounce in Philadelphia, has recently been
successfully passed in four other state cities including San Francisco, Oakland, Seattle in
Washington and Boulder Colorado (Esterl 2017). If more states successfully follow through
with similar proposals designed to reduce soda consumption, it will hurt Coca Cola sales at a
time when unit case volume sales are already in decline as carbonated drinks lose their
popularity among health-conscious consumers. Soda taxes have already been shown to
reduce soda consumption, with a UC Berkeley study in August 2016 showing a 26% drop in
the consumption of soda among low-income Berkeley neighborhoods after the Californian
city introduced the tax.

Changes in the non-alcoholic business environment. These include, withoutlimitation,

competitive product and pricing pressures and their ability to gain or maintain share of sales
in the global market as a result of action by competitors.
Political conditions, especially in international markets, including civil unrest, government
changes and restrictions on the ability to transfer capital across borders.

Political structure and legal considerations also have impinged on Coco-Cola

Company’strategies. Governments of some Arab nations boycotted Coca-Cola’s products due
to a political dispute and discontented with the company for maintaining distributors in Israel.

 Economical environment

Being flexible and willing to change to satisfy consumers’ needs, has enabled Coca-Cola to
exploit the economies of scale that was gained by its global marketing and at the same time
making its products appeal to local taste, which these have earned the company an enormous
profits quarterly. As Coca-Cola has expanded over the decades or even nearly a century, the
company has benefited from the various cultural insights and perspectives of the societies in
which business is done. No doubt of the remarkable experience it has, it is still very
committed to local markets, to paying attention to what people from different cultures and
backgrounds like to drink, and where and how they like to drink it, to remain competitive and
to develop more new drinks to satisfy its markets.

Now, the estimated brand equity of Coca-Cola is $84billion, market share of more than 50
percent in beverage industry globally and about 70 percent of its income comes from
countries outside United States. Every 10 seconds, 126,000 people in the whole world,
choose to reach out for one of The Coca-Cola Company brands, and it is the company’s
mission to make that choice exciting and satisfying, every single time.

 Social environment

The macro-social environment can include changes in people’s lifestyles, fashion, labour-
composition, social mobility, and other demographic trends that have the potential to either
threaten Coca Cola or avail opportunities to them. One such lifestyle change with the future
potential to affect Coca Cola sales dramatically is consumer-focus on healthy beverages.
With soda consumption in the United States falling to a 30 year low in 2016, bottled water
consumption finally managed to overtake soda to become the largest beverage category by
volume. Americans are now drinking more bottled water than sugary drinks amid increased
concern over their impact on health, in particular, Type 2 diabetes and obesity rates, which
have risen to among the highest levels in the world in 2016.

In China, Coca-Cola has also begun the similar strategy of introducing beverages developed
for the taste buds of local market. It launched a fruit juice drink called Tian Yu Di (Heaven
and Earth) specifically for the Chinese market with planning of introducing the market with a
Chinese iced tea and soy milk drink.

Many U.S. citizens are practicing healthier lifestyles. This has affected the non-
alcoholic beverage industry in that many are switching to bottled water and diet colas instead
of beer and other alcoholic beverages. Also, time management has increased and is at
approximately 43% of all households. The need for bottled water and other more convenient
and healthy products are in important in the average day-to-day life.

 Technological environment

Some factors that cause company's actual results to differ materially from the expected
Results are as follows:

The effectiveness of company's advertising, marketing and promotional programs. The new
technology of internet and television which use special effects for advertising through media.
They make some products look attractive. This helps in selling of the products. This
advertising makes the product attractive. This technology is being used in media to sell their
products.

Introduction of cans and plastic bottles have increased sales for Coca-Cola as these are easier
to carry and you can bin them once they are used.

As the technology is getting advanced there has been introduction of new machineries all the
time. Due to introduction of this machineries the production of the Coca-Cola company has
increased tremendously then it was few years ago Coca-Cola has six factories in Britain
which use the most state-of the-art drinks technology to ensure top product quality and
speedy delivery.
 Coca Cola BCG Matrix

Coca-Cola is a large scale company that has been operating in the beverage industry for more
than a century, supplying different products to 200 countries. The Boston Consulting Group
Matrix (BCG Matrix) can be used to analyze the different products being sold by the
company in terms of their market share, sales generated on an annual basis and the potential
for growth. The BCG Matrix for Coca-Cola is as follows:

Cash cows

Cash cows are those business products which are a significant source of income for a
business entity and generate enough sales to obtain a significant market share in the local or
global industry. The market is at a mature stage for these products, nevertheless, these
products continue to generate cash for the organization.

Coca-Cola as a beverage has been operating as a cash cow for the Coca-Cola Company, as
the brand is sold across 200 countries in a mature beverage industry. A larger segment of the
operations is based on finished products (including sparkling and still beverages)
manufactured by the company, constituting 63% of the operations. The bottling partners in
different locations help in making the finished beverages available to the market in their
respective regions, enabling the organization to earn significant amount of revenues from its
finished products categories. Since the industry is mature, the company needs to invest little
effort to keep the sales high as the business unit has captured a large market to generate cash.
A slowdown in sales has been a temporary setback for the organization, however adjusting
the business strategy has helped the management to regain its firm hold in the industry.
Stars

The products that are viewed as stars are defined by the key feature of having a high market
share as compared to the other products which have a lower share in the market. The market
is still in the phase of development, therefore, the stars have the likelihood of further adding
to the existing market share and create a steady source of revenue for a business entity.

The bottled water produced by the Coca-Cola Company can be categorized as a star for the
organization. The reason for this classification is that the mineral water industry is still
viewed as a gradually evolving segment on an international scale. The rising number of
people increases the need to produce more bottled water to fulfill the needs of the expanding
population. Even though the company faces competition from other bottled water producers,
the growing market offers it significant opportunities to attain a large market share and
expand it further in future. Nevertheless, an important consideration for the management is to
ensure that the bottled water brands remain a source of significant sales as decline in sales
can reduce the revenues.

Question Marks

The products that are categorized as questions marks seem to have a doubtful outlook for the
future development. These products have not developed well into the market to such as extent
that they can be recognized as stars. The market has growth opportunities, but these products
have not been able to take benefit of these opportunities in an effective manner.

Coca-Cola’s juice brand Minute Maid is categorized as a question mark for the company
because, given its market share of 6.5% in the US refrigerated orange juice market, Minute
Maid has failed to attain significant revenue. Even though it has generated generous sales
amounting to $192.56 million dollars in the US, it has failed to gain popularity like Coke.
However, Minute Maid’s US sales increased by 1.79% in 2017 therefore, given that the juice
industry is growing further investment in the company will facilitate its development into a
cash cow with stable revenue 2018. The sales volume of Diet coke doesn’t present favorable
prospects for the future. The health conscious consumers formulate a significant part of the
industry, suggesting the growth potential, but diet coke has not been able to tap this market
potential to gain sustainable revenues

Dogs

The products that are included in the category of dogs are a part of mature industry, thus the
chances of further growth are limited. Another issue that raises question about the feasibility
of these business units or products for the company is that they do not offer significant
revenues to the organization. Moreover, the future outlook of these products is also not
attractive.
 Coca-Cola life is a brand that has been launched with the aim of targeting the market that is
seeking low calorie soda. It has been developed using the blend of coke and diet version of
coke to offer the consumers a comparatively healthier beverage option in terms of calories
consumption. Despite the efforts to target this segment of the market, the brand has not been
able to perform well as depicted through the declining sales of this business unit. The soda
industry has matured over the years, limiting the growth prospects for new products. In case
of Coca-Cola life, the brand has not been able to gain expected level of market share. An
effort to keep the market share of the leading brand of coke (which is cash cow for the
organization), coke life was presented to the market. However, it was not readily accepted by
the targeted market, leading to low sales of the new brand. It has been further stated that the
decision to launch the low calorie version of coke didn’t take the market needs into
consideration, which has resulted in the brand becoming an initiative with low market share.

Coca Cola SWOT analysis

Strengths

 Brand image

Brand image is an important strength for any brand. Coca Cola has maintained an excellent
brand image globally as an ethical and customer friendly brand. The brand’s image is mainly
connected with the youth and youth culture.

 Global presence

Coca Cola started selling in US in 1886 and since then its business has spread globally to
more than 200 countries. Today it is a global brand with very high level of popularity.
  Supply chain and distribution network

Over all these years of its existence, Coca-Cola has built an extensive network of Supply
chain and Distribution Network. Present in over 200+ countries, it’s just because of the strong
supply chain and distribution network that you can get coca-cola even at the most remote
places of the world. Coca Cola has managed a global supply chain and distribution network.
This is among the primary strengths of the brand. It depends on a very large number of
suppliers from several corners of the world, primarily for the supply of agricultural raw
materials. In the recent years, Coca Cola has focused a lot on the optimisation of its global
supply chain. An efficient supply chain and distribution network has helped Coca Cola
reduce its manufacturing costs and serve its customers more effectively.

 Marketing capabilities

In terms of marketing too, Coca Cola has made an excellent impact. It is an excellent
marketer and spends a large sum on marketing and promotions of its brand and products. It
has also invested a lot in digital marketing and advertising. In 2017, Coca Cola’s marketing
expenditure was 3.9 billion dollars. Its focus on customer engagement through digital
channels has also grown.

 Large product portfolio

Coca Cola has a very large product portfolio. It notes in its 2017 annual report “We are
committed to meeting their needs and to generating new growth through our portfolio of
more than 500 brands and more than 4,100 beverage products, including nearly 1,300 low-
and no-calorie products, new product offerings, innovative packaging and ingredient
education efforts. We are also committed to continuing to expand the variety of choices we
provide to consumers to meet their ever-changing needs, desires and lifestyles”.

 Large & Loyal customer base

Coca Cola’s business has expanded to over 200 countries where it has a very large and loyal
customer base. Customer loyalty is a very important factor driving business growth in the
21st century. However, Coca Cola also invests a lot in building customer loyalty and keeping
the customers engaged.
Weaknesses

 Heavy reliance on Carbonated drinks

In developed as well as developing countries, health-conscious consumers have started to shy

away from carbonated beverages containing elevated levels of sugars or artificial sweeteners.
All these factors have muted the growth of the company. High dependency on sweet
carbonated drinks is what is impacting the top line of Coca-cola and would need an
immediate course correction.

 Water related issues

Coca Cola has faced a lot of flak over water management related issues. In the past, it has
faced severe criticism over water consumption. While these issues have continued, the brand
is still dealing with water management related issues and is investing in water conservation
among other things for dealing with the water crisis.

 Declining revenue

For the past five years, its net operating revenues has declined steadily. Gross profits of the
brand have also fallen steadily. Net Operating Revenues declined to 35.4 Billion dollars in
2017 from 41.9 Billion dollars in 2017. Apart from that its gross profits declined to 22.15
Billion dollars in 2017 from 25.4 Billion dollars in 2017.

Opportunities

 Partnerships:

Coca-Cola can look into increasing the market share by partnering with other non-competing
brands, one such example is Coca-Cola had a strong partnership with Domino’s , which over
the years has become a little sour. So something of the same sorts can be looked into to
increase the sales and market share.

 Marketing opportunities

Marketing opportunities have grown fast in the 21st century with the rise of new technologies
including digital and AI. Pepsi seems to be getting ahead in the race. Coca Cola can use these
resources and technologies for effective marketing and to grow its customer engagement.
  Digitization of supply chain

Digitizing the supply chain can also help the brand manage its productivity better and reduce
the manufacturing costs. A digital supply chain will increase efficiency and productivity.

 Market expansion through partnerships

The brand has excellent opportunities of market growth through new partnerships. Partnering
with fast food or food brands can help Coca Cola grow its market share and better market its
brands.

 Healthy products

Product innovation also offers major opportunities of growth since the new generation is
highly health conscious. To cater to its taste and choices, Coca Cola must include more of
health friendly products. This will also help create a better image and help with marketing.

Threats

 Heavy competition in the soda industry

The competition in the soda industry has grown intense. While the last few years have
brought some growth, still all the brands are highly aggressive about maintaining their market
share. These brands invest aggressively in marketing and customer engagement as well as
research and development.

 Increased costs of raw material and labor

The costs of raw material and labor have increased. Apart from that a water scarcity globally
is leading to higher manufacturing costs. It has led to increased cost related pressures for
Coca Cola brand.

 Legal and regulatory threats

The legal and regulatory threats have increased over time and the soda industry is also feeling
the pressure. Environmental conservation, food quality and labor related laws are also making
growth difficult for the soda beverages brands. Non compliance can always be costly for a
brand since it results in hefty fines.