Market plan for Coca-Cola Company

Marwa Mahmoud Abd ElHamed Ministry of finance 1/1/2011

History of Coca-Cola Company

On May 8, 1886, a pharmacist named Dr. John Pemberton carried a jug of Coca-Cola syrup to Jacobs Pharmacy in downtown Atlanta, where it was mixed with carbonated water and sold for 5 cents a glass. 1920-1960s Coca-Cola was introduced overseas and became a partner of the Olympic Games. By the time WWII was over, Coca-Cola doubled their bottling plants across the country and overseas. We began serving a delicious and refreshing sparkling beverage 125 years ago in Atlanta, Georgia. With that first moment of refreshment came a thirst for more that continues to this day. We now have more than 500 brands and 3,500 beverage products and sell 1.7 billion servings per day in over 200 countries. We are growing our reach, strengthening our brands and advancing our global momentum, every moment of every day.

Product description
The Coca-Cola Company is the worlds largest manufacturer, distributor, and marketer of non-alcoholic beverage con castrates and syrups. Sells concentrated forms of its beverages to bottlers who then produce, package, and sell the finished products to retailers.

Coca-Cola target
Coca Cola takes every customer as target and customer who is thirsty. All age groups are being target but the most important is the age group from 15-25 that covers around 40% of total age segments, and also reached to 40 plus, their targeting not based on gender but the results also show that both genders like this product and use it.

Coca-Cola V.S Pepsi

Coca-Cola Company
Market leader Cleaner balance sheet Large Global presence Lead brand: Coca-Cola Classic

Pepsi Company
Market challenger Capital intensive balance sheet Niche Global players Lead brand: Pepsi Cola

Competition from alternates:

1. Water Coca-Cola produces Dasani while Pepsi produce Aquafina. 2. Also milk, juice, and tea &coffee.

Different long term strategic:

P e p s i C o m p a n y own bottlers in many international territories.

Coca-Cola Company made equity investment in franchises. Coca cola gain 80% profit outside USA.
P e p s i gain 20% profit outside USA.

Coca-Cola advertisements are more attractive than P e p s i where the result of a questionnaire applied said that coca- cola 75% and Pepsi only 25%. Coca-Cola present in USA 93.8% where P e p s i present only 6.2%. Coca-Cola and P e p s i their decision do not affect by cost. Coca-Cola has the most appealing cans. War on market share. War through Media such as T.V, Internet, Radio

S.W.O.T Analysis
S.W.O.T Definition
SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective. Identification of SWOTs is essential because subsequent steps in the process of planning for achievement of the selected objective may be derived from the SWOTs. The decision makers have to determine whether the objective is attainable, given the SWOTs. If the objective is NOT attainable a different objective must be selected and the process repeated.

Strength The Coca-Cola sells beverages in around 200 countries.

Score 50

Weakness

Score 50

Customers are not being able to

49 differentiate among few brands such as Coca- Cola Zero and Diet. -5

Wide variety of Coca-Cola products is sold in restaurants, stores and vending machines. Coca-Cola is the world`s most valuable brand and has strong brand loyalty, people like its taste and Quality Coke is dominated and control market leader of the global soft-drink industry right.

It high relies on Coca Cola drink

45 only. -10

42

Most of the beverages supply is restricted to few countries.

-10

The company is facing high

45 external debts for the last few years. -10

Coca-Cola has discontinued its

Coca-Cola has enormous distribution and production facilities of nonalcoholic beverages. 40 many products after few year of launching such as new coke, Coca-Cola with Limon, CocaCola black, etc. -5

Coca-Cola has the heavy advertising and promotion activities. Joint in a project with Nestle has resulted in the information of beverage partners Worldwide. Coca cola logo is very famous among people Coca cola competes on advertising and has the high market share. Coca cola was the first commercial sponsor of Olympic Games and also sponsor the FIFA. Strong financial reserve and returns where more than 70% of revenue comes from outside USA. distribution and production facilities of non-alcoholic beverages Multiple suppliers. Company to transport goods.

48

46

49 43 48

43

48 46 49

Strength Total

Score 50 641

Weakness

Score 50 -40

Opportunities Coca-Cola should increase its partnership with fast-food chains. Coca-Cola should focus on the noncarbonated drinks such as coffee, water, juices, etc. by advertisements. Bottled water drinking has increased 11%, so we need to increase mineral water.

Score 50 45

Threats Smaller competitors such as Sina cola in Egypt. Trend toward healthy eating and drinking.

Score 50 -2

42

-20

It has some negative health

35 48 49 40 35 effect. -10

Consumers prefer to drink new smaller beverage products.

Increasing the price of raw material such as sugar. Economy and political instability in third world countries. Competition from Pepsi which consider the strong competitor

-10

Launch other Coca-Cola types in unused countries. Create other new kind of Coca-Cola and keep it continue. Beats competitors Diversify into complementary food products which will ultimately increase the drink consumption. Coca-Cola can produce healthy production increase healthy consumers; i.e. healthy drinks.

-10

-20

30

40

Seek to shorten procurement and packaging the product, but lacked the film, where it has the used in the film, in which it paid to provide a machine of this film

40

Total

404

-72

Total positives= (87.7+80.8)%/2 Total negative= (-20-12) % /2 S.W.O.T = (84.25-16) % =68.25% S.W.O.T analysis for Coca-Cola Company is above 50% thats means that company goes on in its way.

Market segmentation for Coca-Cola Company

I`ll divide the society to 4 classes according to the age for consumption CocaCola.
Customer's classes according to age and health statues. We know that Coca-Cola Takes every customer as target and customer who is thirsty. All age groups are being target but the most important is the age group from 15-25.

We notice that the childern segment and eldest not under our control,so we creat new products realted to this segments. For example: Coca-Cola diet and Coca-Cola zero for health conscious, and also produce healthy beverages like milk, fruit juice. Customers classes states as the following: A: Coca-Cola target in the age between 15: 25. B: for people have health conscious, people with health problems like Obesity and diabetes, and eldest between 55 to 74 year olds are primary drivers of diet soft drink sales. C: For children and the elderly. Coca-Cola company product Product 1: Coca-Cola classic, Fanta and sprit, and other products with carbons. Product 2: Coca-Cola diet and Coca-Cola zero. Product 3: healthy beverages such as juice, water, tea and coffee and fruit drinks

Customer's classification

Coca-Cola company products

1= 90% A +2% B +8% C 2=

0.5% A +90%

B + 9.5% C

3= 1% A + 5% B + 94% C
We can conclude that the first product which appropriate for the segment from 15to 25 and maybe to 40 without health problems will consume 90% from their Purchases on this types, and only 2% for CocaCola diet and zero, but they can buy with 8% from purchases from products 3. While the children and the elderly who are in the third segment, the pattern of purchases are focused on healthy drinks and note that they are almost far away the first segment, but can visit second segment and spent 5% from their purchases.

Market Mix (4 p`s) for Coca-Cola Company

As we know that market mix is one of the best tools to evaluate the current situation of any company to analyses their position for the future out comes.

1. Product
More than 3,500 beverages, from diet and regular sparkling beverages to still beverages such as 100% fruit juices and fruit drinks, waters, sports, soft and energy drinks, teas and coffees and other.

2. Price
Price of Coca-Cola is differ according to size and amount, prices is appropriate to the customers upper low and under low, for under low we create Coca-Cola battle return and anther class we create Coca-Cola cans and plastic bottles , we can say that all people thirst will drink CocaCola with start price only 1 pound.

3. Promotion
Coca-Cola promotions divided to: Advertisements and reduce price in Ramadan. Reduce the price in winter season. Coca-Cola 200ml only with 2 pound. Advertisement on television, radio, internet, and footballer t-shirts Open Coca-Cola and win.. Visit http://www.coca-cola.com.sg/openacoke2009/ Free Coca-Cola from MacDonald Advertising by famous artist and footballers. Also hyper markets offers buy one Coca-Cola and get one free and anthers offer.

4. Place
You can find the Coca-Cola soft drinks anywhere in every country of the world and in every market, restaurant, coffee, hotel, hyper markets and small markets in these countries. Sell its product in international market, because 'Coca-Cola' is a product which can be used by everyone irrespective of age and gender, all over the world.

10

Market share
Market share Definition: The firm's performance relative to competitors can be measured by the proportion of the market that the firm is able to capture. This proportion is referred to as the firm's market share. Approximately 500 drink manufacturing and bottling companies produce in excess of 20.6 billion gallons of drink annually. The main players, CocaCola which produce 11.13 billion gallons, and PepsiCo which produce 7.41 gallons, account 90% of the domestic market share. Within these companies, Coke remains the brand of choice, followed by Pepsi, as depicted in the chart below.

Coca-cola Market share by Volume

Others 10% Pepsi Company 36% Coca-Cola Comopny 54%

We notice that market for drink manufacturing and bottling companies produce is expand for these reasons: 1. Summer in Egypt becomes too hot more than previous years. 2. Ramadan month in summer season. For this reasons Coca-Cola market share also expand.

Market share by Sales

N.R for Coca-Cola Company N.R for Pepsi Company N.R for other Companies

We will measure market share for CocaCola by two ways:

1. Market share for Coca-Cola measured by volume Number of gallons for Coca-Cola annually/total market volume by gallon
62%

29%

9%

11

2. Market share for Coca-Cola measured by revenue Net revenue for Coca-Cola /Total Market Revenue Where: Total market revenue $59.37 billion. Net revenue for Coca-Cola Company $37.22614 billion. Net revenue for Pepsi Company $17.6 billion. Net revenue for others company $4.54 billion.

*Net Revenue N.R

12