Strategic Management: The Case of Coca-Cola Research Paper

Introduction.

  • Strategic Management Process

Growth Strategies

Strategic growth through diversification, growth through differentiation strategy.

The Coca Cola Company is a leading multinational company in manufacture, distribution, and marketing of non-alcoholic beverages. The compay owns over 400 brands, including waters, juice drinks, diet, teas, energy and coffees. The Cmpany has recorded tremendous progress in respect of sales units, buyer loyalty, growth in product portfolio, and profitability. This paper seeks to examine its strategic process and growth stategy that could account for this trendy growth.

This is a process of defining an organization’s strategy. It also refers to a process by which the management selects a set of viable strategies that will facilitate its performance (De Wit & Meyer, 2010).

This is a continuous process that analyzes and appraises both the business and the industry in which an organization operates, and puts up goals to meet current and future competition (Singh, 2008). To enable its future business success, Coca Cola has adopted a strategic management process that follows a four-step process; environmental scanning, strategy formulation, strategy implementation, and strategy evaluation.

Figure: Diagrammatic logical flow of strategic process

Diagrammatic logical flow of strategic process

  • Environmental scanning-Coca-Cola Company undertakes a focused diagnosis of its current and potential business environment before launching its business. All external and internal influences relevant to its operations are analyzed on a continuous basis. Since the company operates globally, global environmental factors likely to impact on its business gain great emphasis to enable it succeed in its expansion process (Singh, 2008). Environmental scrutiny involves facets such as tax policies, employment laws, environmental regulations, and political stability.
  • Strategy formulation- it is a process of selecting the best course of action to accomplish organizational objectives and purpose (Hill & Jones, 2009). In Coca Cola, the process of strategic formulation begins with creation of a mission and vision statements. This mission statement clarifies the purpose of the organization, its values, and often serves to communicate with internal and external parties and stakeholders about its strategic direction (De Wit & Meyer, 2010). The vision of the company has been beneficial in supporting strategy formulation in which it says it focuses to remain a low-cost leader with an aim to gain customer loyalty and increase sales.
  • Strategy implementation – it is the process of making the chosen strategy functional or operational as originally planned. It entails modeling the structure of organization, resource distribution, designing decision making process, and management of human resources. To achieve its strategy implementation process, Coca Cola Company has ensured quality management system that helps in guiding and coordinating its activities to guarantee quality. It also develops a control framework for guiding organizational and managerial systems and processes. The company believes that succeeding in a new market relies on a proper formulation of excellent strategies and keeping them (De Wit & Meyer, 2010). Therefore, quality controls have been the guiding principles that have enabled its multilateral strategy.
  • Strategy evaluation-it is usually the last phase of strategic process. In this process, the fundamental activities that Coca has considered are: appraisal of external and internal environment necessary for strategy formulation, performance measurement, and conducting remedial action. This evaluation process is imperative in ensuring that an organization succeeds in meeting its objectives.

Coca-Cola Company utilizes the Multi-domestic strategies in nurturing its businesses. In this strategy, subsidiaries independently produce products in different countries based on the prevailing different environmental factors. The strategy considers numerous factors such as culture, status, economic status among other factors. The choice of this approach has been recognition of the fact that domestic corporations are supposed to be responsive to the demands of the local market (Singh, 2008).

The company has sustained its growth through diversification in several but related products. This process has been adopted in order to expand its product portfolio with an aim of remaining relevant to the expanding needs of the global market. To achieve this, the company ensures that each of its portfolios is strategically linked to other products, logo, and thematic image of quality reputation and wholesomeness (Singh, 2008).

The choice of this strategy has been advantageous in several ways. Firstly, it is meant to leverage itself against the vulnerabilities and threats of competition. Secondly, the company has been able to benefit from the economies of scale. Lastly it has the potential of utilizing its expertise and technology gained in one market in order to enter a different market and product.

It is simply a process in which an organization distinguishes its products, services or offering from its competitors. This strategy has enabled the Company to gain pricing power. To achieve in this strategy, the company has carefully ridden on the advantages of product quality improvement, brand strength and buyer loyalty (Hill & Jones, 2009). Coca has also successfully used effective and deficient distribution of its products as a means of differentiating its self from rival parties such as Pepsi.

Decentralization- the Company believes in a decentralized strategic management process in which domestic corporation are given the mandates by the parent company. It uses this strategic management process on the basis that coordination between the parent company and its numerous foreign subsidiaries is generally costly and complex process.

De Wit, B., & Meyer, R. (2010). Strategy: Process, Content, Context, An International Perspective . New York, NY: Cengage Learning EMEA.

Hill, C., & Jones, G. (2009). Strategic Management Theory: An Integrated Approach . New York, NY: Cengage Learning.

Singh, M. (2008). Strategic Management and Competitive Advantage . New Delhi: Global India Publications.

  • Chicago (A-D)
  • Chicago (N-B)

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Bibliography

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How Coca-Cola became one of the most successful brands in history

Table of contents.

Coca-Cola has an impressive track record of innovation which has helped propel the company to become one of the most successful brands in history. Through skillful advertising efforts, Coca-Cola is widely recognized as a symbol of American culture through its influence on politics, pop culture, and music around the globe.  

Key statistics and facts about The Coca-Cola Company: 

  • Owns 43.7% of the US carbonated soft drinks market
  • Net operating revenue of $38.7B
  • Present in more than 200 countries and territories
  • Employs over over 700,000 along with its bottling partners
  • Ranked #93 in the Fortune 500
  • Μarket value of $259.77 billion as of February 2023 

Who owns Coca-Cola?

There is no sole owner of Coca-Cola as it is a publicly listed company. However, the largest shareholder is Warren Buffett. Read on as we dive into the history of Coca-Cola's owners and much more below!

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The history of The Coca-Cola Company

How it all started.

The story of The Coca-Cola Company had humble beginnings in the late 1800s, in Atlanta, Georgia. Dr. John Pemberton, a local pharmacist, had developed a recipe for a sweet syrup that was originally advertised to cure headaches. It was eventually mixed with carbonated water to create a fizzy drink that was served at a soda fountain in Jacobs’ Pharmacy. The first glass of Coca-Cola was served on May 8, 1886. In the first year, Pemberton served approximately nine drinks per day which were sold for 5 cents a glass. 

While the ingredient list today is a highly guarded secret, it is well known that the original version contained extracts from the Coca leaf and Kola nuts for caffeine. The combination of these two ingredients is where the name comes from. Dr. Pemberton’s partner and bookkeeper, Frank M. Robinson, felt that spelling the name with double “C’s” would look better in advertising. So, he scripted out the logo which even today displays Mr. Robinson’s unique handwriting. 

Dr. Pemberton didn’t realize the potential of his new product. He took on several partners and sold portions of his business to various owners. Sadly, Dr. Pemberton died just two years after the creation of Coca-Cola. Prior to his death, he sold his remaining interests to an Atlanta businessman, Asa Griggs Candler. Candler knew there was something special about this new product, but little did he know that his $2,300 investment (roughly $67,000 today) would be the start of one of the most powerful brands on the planet. 

Birth of The Coca-Cola Company

The Coca-Cola Company was officially founded by Asa Candler in 1892. It didn’t take long for the Coca-Cola product to quickly spread outside of Georgia and across the nation. By 1895, Coca-Cola was being sold in every state of the union. In 1919, the company was sold to Ernest Woodruff. Woodruff's sons would continue to run the company for many years, transforming the company into a major international brand. The Coca-Cola Company was officially listed on the New York Stock Exchange in 1919 under the ticker symbol KO. 

International expansion of The Coca-Cola Company

The first export of Coca-Cola was to Cuba in 1899. It wasn’t until the 1920s, that international expansion of the brand began to take off. During World War II, Coca-Cola’s President, Robert Woodruff, wanted to ensure that US service members stationed all over could have the comforts of home and pledged to transport Coca-Cola to the various bases in the European and Pacific theatres on the company’s dime. This introduction of the Coca-Cola product increased international demand. With people all over the world craving a taste of American culture, Coca-Cola began establishing partnerships with bottling companies and distributors all over the world. Today, the brand operates in more than 200 countries and territories. 

Early competition

In the early years, Coca-Cola had a lot of competition. In fact, the late 1800s and early 1900s was the most active period in the development of new soft drinks. Some of these companies went out of business or were bought out by other larger companies. However, many of these brands are still in existence today as more novelty brands and hold a very small percentage of the market. 

The most prominent competitors to Coca-Cola throughout its history have been Pepsi and Dr. Pepper. They were both created around the same time as Coca-Cola (Pepsi in 1898 and Dr. Pepper in 1885). Over time, these three giants bought up many of the smaller beverage companies. For example, Vernor’s Ginger Ale, Hires Root Beer, and Royal Crown Cola still exist but are now owned by Dr. Pepper. 

The Coca-Cola beverage was created in 1886 by Dr. John Pemberton, a pharmacist from Atlanta, Georgia. The recipe was purchased by Asa Griggs Candler and The Coca-Cola Company in 1892. The brand quickly became popular and was sold all over the United States. By the early 20th century, Coca-Cola began a rapid expansion across the globe.

The Coca-Cola system- a global franchise distribution network 

The Coca-Cola Company’s rapid expansion around the world can be attributed to its unique franchise distribution system (known as the Coca-Cola System ) that they have operated since 1889. Coca-Cola produces syrup concentrate which is then sold to various bottlers around the world. This helps the company maintain control over its top-secret recipe without the burden of having to run many of the independent bottling facilities. 

The Coca-Cola System is a network of over 900 bottling plants that produce 2 billion servings of Coca-Cola every day. The bottlers each hold contracts that allow them to exclusively operate in a predetermined territory. This reduces the need for the competition from multiple companies that sell the same product. 

These distributors handle all aspects of the production and distribution process including mixing the syrup with carbonated water and sweeteners, placing the finished product in cans or bottles, and distributing Coca-Cola to supermarkets, vending machines, restaurants, and movie theaters. Although Coca-Cola produces the main syrup, the franchise companies also control the soda fountain business in their territory. 

The exception to this model is the North American market where The Coca-Cola Company directly owns most of the bottling and distribution. Outside of the United States, Coca-Cola has continued to encourage the consolidation of its various bottling companies. Over time, Coca-Cola has acquired a percentage of ownership in many of the companies in the Coca-Cola System. 

Top 5 independent bottling partners, representing 40 percent of the Coca-Cola System distribution network:

  • Coca-Cola FEMSA (Latin America)
  • Coca-Cola Europacific Partners, plc (Western Europe, Australia, Pacific, and Indonesia)
  • Coca-Cola HBC AG (Eastern Europe)
  • Arca Continental (Latin America and North America)
  • Swire Beverages (Asia and parts of North America)

Here's an example video from Coca-Cola HBC AG explaining their business model:

The Coca-Cola Company leverages a network of independently owned and operated bottlers around the world. This has enabled the company to quickly expand without having to invest billions of dollars into building facilities and navigating international rules and regulations unique to each region.

Evolution of the Coca-Cola product

The formula for Coca-Cola has undergone a few changes since its creation. Some of these changes were driven by necessity. Some were an attempt to reduce costs or gain market share. While the brand does not make changes often, some have been better received than others. 

Removal of cocaine

During the late 19th century, there were many Cocoa-based beverages available on the market. At the time, drugs like cocaine and opium were perfectly legal and used quite frequently for medicinal purposes. Since Coca leaves were used to make Coca-Cola, there were small quantities of cocaine that could be found in the drink. 

The public eventually became aware of the addictive properties of these substances, so Coca-Cola was pressured to remove this drug from its list of ingredients. The Coca-Cola Company made steps to gradually phase out sources of cocaine from its production until it was finally eliminated in 1929.

File:New Coke can.jpg

On April 23, 1985, The Coca-Cola Company took a huge risk that shocked the world. They announced that they would be changing the formula of their world-famous soft drink. Despite its massive success, the company had been losing ground to one of its main competitors, Pepsi. Pepsi’s success wasn’t just in the United States. They were quickly expanding into markets that were once considered untouchable. At the height of the Cold War, Pepsi became the first Western product to be permitted in the Soviet Union . 

Based on surveys and taste tests, consumers seemed to prefer the sweeter taste of Pepsi-Cola. So, Coca-Cola set out to rework the formula to improve its ability to compete. According to Coca-Cola’s website, their goal was to “re-energize the Coca-Cola brand and the cola category in its largest market, the United States”. After receiving positive feedback from nearly 200k customers in taste tests, New Coke was released to the market. 

The public’s response to the new version of their product was outrage. Unfortunately, Coca-Cola miscalculated its customer’s bond with the original brand. Massive protests were staged and the company was flooded with thousands of angry phone calls and letters. The backlash was so fierce that it forced the company to revert back to the old formula after only 79 days on the market, branded as Coca-Cola classic. 

This graph demonstrates PepsiCo’s rapid expansion of market share from 1970 to 1990 and subsequent fall.

Coca-Cola Zero Sugar

File:Coca Cola Zero 02.jpg

While Coca-Cola has vowed not to make any changes to its original product, the company plans to update the recipe and packaging for their popular zero sugar variation, Coca-Cola Zero Sugar . The company has been cautious in its promotion of the new version as to not create a blowback like the 1985 New Coke fiasco. Coca-Cola has reiterated that the new version will not be a major overhaul, rather an “optimization of flavors and existing ingredients”. The rollout is expected to hit the US market by August 2021.

Sweetener changed to high fructose corn syrup

Traditionally, the Coca-Cola recipe called for cane sugar as the primary sweetener. During the 1970s, the United States saw a massive increase in corn production. This forced the prices of corn to drop significantly. In addition, corn was heavily subsidized by the US government. This made sweeteners like high fructose corn syrup more affordable. 

In an attempt to reduce costs, Coca-Cola slowly started substituting cane sugar for high fructose corn syrup during the 1980s. The transition took place over the course of approximately 5 years. 

Today, cane sugar is still used in the production of Coca-Cola in certain regions of the world. The most popular example is Coca-Cola produced in Mexico. This version of Coca-Cola is still made with cane sugar. Some critics argue that “Mexican Coke” has a flavor that is closer to the original formula.

In 1935, Coca-Cola was certified as kosher after the company replaced the source of glycerin used in production . This was originally derived from beef tallow but was replaced with a plant-based version. However, with the change of sweetener in the 1980s to high fructose corn syrup, its kosher status was removed. Today, bottlers in markets with large Jewish populations will temporarily substitute high fructose corn syrup during Passover to obtain Kosher certification.

Recipe and flavor variations

Despite the utter failure of New Coke in 1985, The Coca-Cola Company has introduced new flavors over time in addition to Coca-Cola classic. 

Some consumers avoided Coca-Cola classic because of the high sugar or caffeine content. In 1982, the company released a diet version of their product for consumers who were concerned about consuming too much sugar. A caffeine-free version was also introduced a year later. 

The company has also tried different flavor combinations. The first was Coca-Cola Cherry in 1985 which was a huge success and remains popular today. Other flavors included lemon, lime, vanilla, orange, ginger, cinnamon, and coffee. Many of these were attempts to bring local flavors to international markets. 

Coca-Cola has achieved enormous amounts of growth by tailoring its products to local tastes and demands. They have also been able to reduce production costs by substituting expensive ingredients such as cane sugar for lower-cost alternatives. Not every change has been well received by the public. Coca-Cola infamously changed their original recipe to replace it with “New Coke”. This change faced fierce backlash and forced the company to bring back the original product after only 79 days on the market. 

Coca-Cola Growth Strategy

The company has outlined a list of key objectives that they plan to execute in the coming years to spur additional growth. This strategic plan is intended to guide the company in refocusing efforts and being more intentional with its actions.  

Focus on developing markets

Coca-Cola has identified that there is huge growth potential in the developing world. Seventy percent of all beverages being consumed in the developed world are commercialized compared to only 30 percent for the developing world. Considering the developing world contains 80 percent of the world's population, growth is expected to be exponentially higher. 

One identified area of opportunity is brand diversification. While Coca-Cola has a strong foothold globally, this is only due to its strong presence in major markets. Outside of sparkling water, Coca-Cola is trailing competitors. The focus will be on gaining momentum in other beverage categories through the experimentation of new products. 

Brand portfolio optimization

Bigger isn’t always better. The Coca-Cola Company is realizing that its efforts may be spread across too many individual brands. Their goal is to rebalance their portfolio and consolidate products into fewer master brands. They have already reduced this number from approximately 400 to 200. By having fewer master brands, they can better focus their efforts. 

Networked organization

Operating a large corporation comes with challenges. In many cases, there can be inefficiencies and duplicated efforts. Coca-Cola plans to address this by reorganizing its support and operational teams to provide better support and work more effectively. 

Brand building

The company plans to deliver world-class marketing through targeted resource allocation. The goal is to be more intentional with the way advertising and marketing investments are made. 

Coca-Cola has a goal to increase the frequency that new or existing consumers drink their products. To do this, the company has set targets to significantly increase innovation by bringing more trial products and projects into the pipeline. The goal is to increase this by 40 percent over 2020. 

Digital transformation

Coca-Cola understands that data is a powerful tool. They are in the process of undergoing a digital transformation to help the company operate more effectively and leverage data to drive decision-making. 

Revenue growth management

With this new data and digital tools available, the company can place a renewed focus on which areas have the most potential for growth. They will focus on understanding which markets, consumers, product lines, and competitors should be addressed.

The Coca-Cola Company is dedicated to growing the business through a skillfully designed and executed strategic plan. Their long-term goals are to focus on expanding the commercial beverage industry in developing countries. They also plan to optimize their product line by reducing the number of master brands, creating new innovative products, changing their internal operations teams to streamline processes, and better leverage data.

The power of advertising- Coca-Cola becomes a household name

A big part of Coca-Cola’s success over the years has been its focus on innovative marketing and advertising campaigns. In 2020, Coca-Cola was ranked as the 6th most powerful brand in the world. This accomplishment didn’t come overnight. Over the years, Coca-Cola has had to work diligently to evolve and bring fresh, new ideas to marketing and advertising.

Large contributions to advertising 

Even early on, Asa Griggs Candler spent a considerable amount of money on advertising. His original budget for advertising was $11,000 (over $300,000 in today’s money). By 1900, the budget increased ten-fold to $100,000 and again to $1 million by 1910. 

Large advertising budgets are important when a new brand is getting established. As a company grows and becomes well-known, they typically scale back on their advertising budget since most consumers recognize the brand. Coca-Cola, however, has continued to keep the pressure on its competitors. Today, the company spends about 10 percent of its revenue on advertising and marketing. This equates to approximately $4 billion in commercials, print advertising, sponsorships, and other promotional merchandise. 

Focus on the brand and human connection

Much of Coca-Cola’s advertising success comes from the way they present their brand. Instead of focusing on the actual product, they emphasize the feeling and camaraderie of making the brand part of one’s identity. Their advertisements are intended to make people feel good about themselves and want to be a part of the experience. 

Human connection is an important part of the brand message. One great example of this was the “Hilltop” commercial from 1971 that featured people from different cultures singing “I’d like to buy the world a Coke”. This showed the Coca-Cola brand as one that was intended to unite people around the world.

Celebrity endorsements

Celebrity endorsement is a way to help a brand stand out, especially when targeting specific groups. For example, sports fans will be more likely to purchase a product if their favorite athlete promotes the brand. Over the years, Coca-Cola has been endorsed by numerous high-profile celebrities, athletes, and pop culture icons. 

Hilda Clark, an American model, and actress was the first celebrity to endorse the brand in 1900 and was featured in early advertisements. Since then, Coca-Cola has received endorsements from many big-name celebrities such as Ray Charles, Aretha Franklin, Magic Johnson, and Elvis Presley. 

Coca-Cola in pop culture

The Coca-Cola brand has been a prominent part of American culture for decades. Coca-Cola has skillfully attached itself to key historical events, music, movies, and major holidays. 

Coca-Cola and many of its other brands have been featured in numerous films and television programs. For a short time, Coca-Cola even owned Columbia Pictures (from 1982 to 1989) and inserted Coke products into many of its productions.  A few examples include:

  •  The 1933 film King Kong displays a Times Square billboard advertisement in several of the scenes.
  • Coca-Cola products being used in the 1982 film E.T. the Extra-Terrestrial.
  • The modern TV series Stranger Things which takes place in the 1980s displays and makes reference to New Coke. 

The Coca-Cola Company has also made its way into music across the globe. Elvis Presley promoted Coca-Cola during his last tour in 1977. The UK sensation, The Beatles, made mention of Coca-Cola in a line of their hit song “Come Together”. In addition to lyrical references, the brand has featured musical superstars such as David Bowie, Elton John, and Whitney Houston in Diet Coke commercials. 

The Coca-Cola brand has also cleverly attached itself to popular holidays. Some of its most successful campaigns have been displayed over the Christmas holiday. One of the most iconic campaigns started in 1931 with illustrations of St. Nicholas drinking a Coca-Cola. Many credit Coca-Cola with inspiring the modern-day version of Santa Clause. 

Clever campaigns and promotions

Coca-Cola has been one of the top innovators in the advertising space. On many occasions, they have used never before seen tactics that both surprised and delighted consumers. Creating an additional buzz around their advertising campaigns helps to amplify whom the campaign reaches directly. 

During the 2012 NFL Superbowl, Coca-Cola decided to take a non-traditional approach. The Superbowl is one of the most sought-after advertising opportunities. Each year, approximately 95 million people tune in to watch the championship game. Typically, major brands spend over $5 million for a single 30-second commercial. With the rise of cell phones and other mobile devices, Coca-Cola knew that consumers would be juggling multiple devices during the game. So, they created a family of animated polar bears that would react to the game in real-time on digital media banners and a microsite. The bears would laugh, respond to audience tweets, and make faces. The campaign was a huge success. During the game, over 9 million viewers spent an average of 28 minutes engaging with and watching the polar bears in action. 

In 2011, Coca-Cola decided to take a personalized approach to advertise in Australia with their Share a Coke campaign. They selected 150 of the most popular names and printed them on the side of their bottles along with the message “Share a Coke with…”. The campaign encouraged people to share a bottle of Coke with a friend or tag them in a social media post with the hashtag #shareacoke. The campaign was so successful that it was expanded to over 80 countries and led to Coca-Cola’s first sales growth in over 10 years. 

Collectible memorabilia 

Coca-Cola has created and distributed numerous pieces of branded memorabilia that are highly sought after by collectors including toys, clothing, antique bottles, signs, household items, and old vending machines. The collectible nature of these products has nostalgia of traditional Americana and has further helped to amply the prestige and cultural connection of Coca-Cola to US history. Rare and well-preserved items can fetch tens of thousands of dollars. 

The Coca-Cola Company has created one of the most powerful and well-known brands in the world. Over the years, they have embedded themselves as an icon of American culture through music, television, and films. The company spends a significant portion of its annual revenue on advertising efforts including television commercials, social media, and other advertising. 

Growth through mergers, acquisitions, and partnerships- becoming an unstoppable force in the food and beverage industry

While The Coca-Cola Company is known for its main products such as Coca-Cola and Diet Coke, the company owns, produces, and distributes over 500 individual brands worldwide. Some of these brands are a result of new products that they created. Others were obtained through mergers, acquisitions, and special partnerships with other major companies. 

Key mergers and acquisitions

  • 1960 - Coca-Cola acquires Minute Maid, a producer of juices, soft drinks, and other beverages such as the popular Hi-C brand. 
  • 1993 - When Coca-Cola was struggling to gain a foothold in the Indian market, they purchased the popular local brand, Thums Up. Their business now makes up over 40 percent of the cola business in India. 
  • 1995 - Acquisition of Barq’s which produces a line of root beers and cream sodas. 
  • 1999 - Coca-Cola purchased 50 percent of Inca Kola for $200 million and took control of its marketing and bottling operations. 
  • 2001 - Odwalla, a brand of fruit juices, smoothies, and bars was acquired. This company was discontinued in 2020.
  • 2007 - Coca-Cola acquired Fuze Beverage, a producer of teas and fruit drinks that were infused with vitamins and minerals. 
  • 2008 - The company purchased 40 percent of Honest Tea, a popular iced tea producer. The remaining shares were purchased in 2011 giving Coca-Cola full ownership. 
  • 2013 - Coca-Cola purchased the coconut water company ZICO. 
  • 2014 - 16.7 percent of the energy drink manufacturer, Monster Beverage, was sold to Coca-Cola in exchange for a long-term strategic partnership. 
  • 2016 - Coca-Cola purchased a portion of Chi Limited, a major distributor of snacks, food, and beverage products in Nigeria. The remaining shares were acquired in 2019.
  • 2017 - Topo Chico, a Mexican sparkling water brand was acquired by Coca-Cola. 
  • 2018 - Coca-Cola purchased Costa Coffee making it the owner of the second-largest coffeehouse chain in the world after Starbucks Coffee. 
  • 2018 - Organic & Raw Trading Co., the Australian producer of MOJO kombucha was acquired. 

Special partnerships

In addition to owning many brands, The Coca-Cola Company has created many successful strategic partnerships that have allowed Coca-Cola to grow exponentially. 

One of the most famous partnerships is with McDonald’s. When McDonald’s was just getting started in 1955, it needed a beverage distributor. The two companies struck a deal for Mcdonald's to exclusively sell only Coca-Cola products. McDonald’s eventually grew to become the largest restaurant chain (by revenue) and Coca-Cola products are served in nearly 40,000 of their locations around the world. Other notable restaurant chains that carry Coca-Cola products include Burger King, Chili’s, Chipotle, and Domino’s Pizza.

strategic management case study of coca cola

Coca-Cola has also partnered with numerous venues around the world to sell only Coca-Cola products in their stadiums, theatres, and concert halls. The Coca-Cola Company is a major sponsor of the Olympic Games. In 2017, the company signed a deal with Major League Baseball in which they agreed to drop their competitor Pepsi and only promote Coke products.

Most of Coca-Cola’s growth has come from strategic mergers and acquisitions of companies all over the world. They have been able to expand into new markets by buying companies that already dominate the specialty or space. The company has also developed strategic partnerships with other large companies to exclusively sell Coca-Cola products.

Controversy, regulatory issues, and criticism 

Despite the company’s overwhelming success, Coca-Cola has faced a lot of criticism throughout its history. There are many opinions related to the impacts that The Coca-Cola Company has on the environment and consumers alike. 

Health concerns

It’s no secret that Coca-Cola is a sugary drink. According to the Centers for Disease Control (CDC), half of all Americans will drink at least one sugary beverage each day. This massive consumption of sugar is leading to an epidemic of conditions such as type 2 diabetes and obesity. The World Health Organization (WHO) recommends that adults consume no more than 6 tsp of sugar each day. A single 12oz can of Coca-Cola contains nearly twice this amount. 

With Coca-Cola being the leading company in the food and beverage industry, they have received a lot of negative attention directed towards their contribution to this serious problem. 

The company has responded by producing sugar-free or reduced-calorie beverages. They have also expanded their product lines to include healthy alternatives like coconut water. 

Environmental issues

Coca-Cola has been identified as the single producer of plastic waste in the world. Much of this plastic is not discarded properly and ends up in the oceans. This has contributed to the ecological disaster due to single-use plastics. This has captured the attention of environmental protection groups who claim that Coca-Cola isn’t doing enough to work toward a reasonable solution. A report from Greenpeace estimates that the company produces over 100 billion plastic bottles every year with no obvious goal to reduce single-use plastic waste. 

Coca-Cola has made some efforts to reduce its environmental impact. First, they redesigned their bottles to use less plastic (a process called “lightweighting”). While this does reduce the amount of plastic used in production, it does not reduce the number of bottles that end up in landfills or the ocean. They have also introduced their “PlantBottle” which is made from plant-based materials.

While these are steps in the right direction, most environmental groups question whether these efforts are enough. Coca-Cola appears to be spending large amounts of money lobbying politicians around the world to block legislation that would encourage more environmentally friendly manufacturing. They have also been accused of spending a considerable amount of money on “green marketing” without efforts to back up their claims.

Over the years, The Coca-Cola Company has been the center of controversy due to environmental impact and health concerns due to their products. Coca-Cola has responded by providing low-calorie, sugar-free, and healthy alternatives. They have also worked to reduce their plastic use and seek alternatives as they are the single largest contributor to single-use plastic waste.

Coca-Cola's social media strategy

Create an abstract image that symbolizes Coca-Cola's social media strategy. The composition should feature vibrant and positive imagery, including a globe to represent their global reach, interconnected nodes or networks conveying social media platforms, and smiling faces or thumbs-up icons to symbolize positivity and customer engagement. There should be a flow of creativity illustrated by dynamic and organic shapes, depicting the user-generated content aspect, such as floating Coca-Cola bottles with hashtags. Include subtle nods to social issues with symbolic ribbons or hands united, and incorporate elements that hint at Coca-Cola’s website traffic, like arrows pointing from social media icons to a central Coca-Cola logo, suggesting the flow of visitors. The overall design should feel optimistic, energetic, and interconnected, reflecting the brand's commitment to being a social media leader.

The Coca-Cola Company is a social media powerhouse with millions of followers across the globe. The company is very intentional with its use of social media platforms and leverages them to drive brand awareness and interaction with customers. There are several key components that have made Coca-Cola’s social media strategy so successful. 

Positivity  

In 2018, Coca-Cola made a commitment to become the ‘most optimistic brand on social media'. They launched their #RefreshtheFeed campaign in which they completely deleted all of their social media content and started fresh. Consumers embraced this new positive approach and encouraged even more followers who wanted to enjoy the feel-good vibes of their social media posts. 

Leverage consumers to create content

While Coca-Cola’s marketing team creates a lot of content for their online platforms, they have successfully leveraged their millions of followers to create content on behalf of the brand. They have used creative hashtag-based campaigns to encourage consumers to post Coca-Cola-themed posts for their friends and family to see. One of the most successful was the #shareacoke campaign which reversed a 10-year stagnant sales record. 

Attachment to social issues

The company has a stringent social media policy to ensure that content aligns with the company’s values. In July 2020, Coca-Cola decided to join many other major brands in temporarily halting social media posts and advertisements for a minimum of 30 days. This decision came as a result of concerns about growing hate speech and misinformation on social networks. They’ve regularly supported important civil rights and other social issues over the past few decades which helps consumer groups connect with the brand. 

Coca-Cola website

The Coca-Cola Company’s main company website contains various resources for consumers, vendors, and investors. The information included in the website discusses the company’s history, its brands around the world, career opportunities, media center, and investor relations. 

According to SimilarWeb, the site is ranked 10th in the Food & Beverage category and receives about 1.8 million visitors each month. 

The Coca-Cola Company’s YouTube channel is a platform that is used to post promotional videos and other advertisements from all over the world. The channel was started in 2006, has 3.6 million subscribers, and has nearly 3.5 billion views. About 8 percent of their website traffic comes from YouTube.

Coca-Cola’s LinkedIn account has over 6 million followers. The company uses this platform to post company updates for the business community. It is also used to promote job openings and attract top talent from the LinkedIn community. 

Twitter is one of Coca-Cola’s most powerful social media accounts. Their Twitter account ( @CocaCola ) was started in 2009 and has posted nearly 300,000 tweets to its 3.3 million followers. Most of the tweets are short inspirational or funny messages to enhance daily brand awareness or encourage engagement. Coca-Cola’s Twitter account generates 62 percent of the traffic to their website. 

Coca-Cola’s Instagram account has 2.8 million followers. The account is mostly used to post promotional stories on the platform. 

Coca-Cola’s Pinterest account is used to post drink and food recipes and promote Coca-Cola products like customizable Coke bottles. Their account has about 30,000 followers and receives over 10 million views each month. 

With over 105 million followers, Coca-Cola’s Facebook account is massive. It’s the 5th most-followed account on the social media platform, only behind Facebook itself, Samsung, Cristiano Ronaldo, and Real Madrid CF. The site is used to post videos and promotional content in many different languages for their followers. 

So, Why is Coca-Cola so Successful?

Few companies can boast the tremendous success and growth that The Coca-Cola Company has enjoyed for over 135 years. This accomplishment can be attributed to industry-leading advertising, innovation of their products, and delivering a positive brand message. Let's take a look at what makes Coca-Cola so successful!

Recap: growth by the numbers

Key takeaways.

  • Coca-Cola has leveraged a network of independent bottlers around the globe to aid in rapid expansion. These distributors have territorial rights which help prevent competition and price wars.
  • The Coca-Cola Company has made changes to its main product over the years but learned a very valuable lesson with the introduction of New Coke in 1985. The launch was a disaster and faced a fierce backlash from consumers who demanded the return of the original product.
  • Coca-Cola’s long-term strategic plan includes focusing on the developing world where consumer beverages have a lot of growth potential, optimizing the number of master brands, revamping their operational network, and leveraging technology and data.
  • Coca-Cola’s advertising focuses on creating human connections and making people feel good. They have led the advertising world in cutting-edge approaches to marketing that have never been seen before.
  • Coca-Cola has inserted its brand and products in films and television to become an easily identifiable American icon.
  • Acquisition of other companies has been a major part of Coca-Cola’s expansion efforts giving them the ability to quickly reach into new markets or acquire existing popular products.
  • The Coca-Cola company has been the target of criticism due to its potential negative impact on consumer health and the environment. 

Table of Contents

Coca-cola target audience , geographical segmentation , coca-cola marketing channels, coca-cola marketing strategy , coca-cola marketing strategy 2024: a case study.

Coca-Cola Marketing Strategy 2024: A Case Study

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Coca-cola has colossal brand recognition as it targets every customer in the market. Its perfect marketing segmentation is a major reason behind its success. 

  • Firstly, the company targets young people between 10 and 35. They use celebrities in their advertisements to attract them and arrange campaigns in universities, schools, and colleges. 
  • They also target middle-aged and older adults who are diet conscious or diabetic by offering diet coke. 

Income and Family Size

It introduces packaging and sizes priced at various levels to increase affordability and target students, middle class, and low-income families and individuals.  

Coca-Cola sells its products globally and targets different cultures, customs, and climates. For instance, in America, it is liked by older people too. So, the company targets different segments. It also varies the change accordingly, like the Asian version is sweeter than other countries. 

Coca-Cola targets individuals as per their gender. For example, Coca-Cola light is preferred by females, while coke zero and thumbs up are men's favorite due to their strong taste.

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Coca-Cola initially employed an undifferentiated targeting strategy. In recent times, it has started localizing its products for better acceptability. It incorporates two basic marketing channels : Personal and Non-personal.

Personal channels include direct communication with the audience. Non-personal marketing channels include both online and offline media, such as

  • Promotion Campaigns 
  • PR activities 

Social Media

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A uniquely formulated Coca Cola marketing strategy is behind the company's international reach and widespread popularity. The strategy can be broken down into the following:

Product strategy 

Coca-cola has approximately 500 products. Its soft drinks are offered globally, and its product strategy includes a marketing mix. Its beverages like Coca-Cola, Minute Maid, Diet Coke, Light, Coca-Cola Life, Coca-Cola Zero, Sprite Fanta, and more are sold in various sizes and packaging. They contribute a significant share and generate enormous profits. 

Coca_Cola_Marketing_Strategy_1

Coca-Cola Products

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Pricing Strategy

Coca-Cola's price remained fixed for approximately 73 years at five cents. The company had to make its pricing strategy flexible with the increased competition with competitors like Pepsi. It doesn't drop its price significantly, nor does it increase the price unreasonably, as this would lead to consumers doubting the product quality and switching to the alternative.  

Place Strategy 

Coca-cola has a vast distribution network. It has six operating regions: North America, Latin America, Africa, Europe, the Pacific, and Eurasia. The company's bottling partners manufacture, package, and ship to the agents. The agents then transport the products by road to the stockist, then to distributors, to retailers, and finally to the customer. Coca-Cola also has an extensive reverse supply chain network to collect leftover glass bottles for reuse. Thus, saving costs and resources.

Coca_Cola_Marketing_Strategy_2.

Coca-Cola’s Global Marketing

Promotion Strategy  

Coca-Cola employs different promotional and marketing strategies to survive the intense competition in the market. It spends up to $4 million annually to promote its brand , utilizing both traditional and international mediums for advertisements.   

Classic Bottle, Font, and Logo

Coca-Cola organized a global contest to design the bottle. The contest winner used the cocoa pod's design, and the company used the same for promoting its shape and logo. Its logo, written in Spencerian script, differentiates it from its competitors. The way Coca-cola uses its logo in its marketing strategy ensures its imprint on consumers' minds. 

Coca_Cola_Marketing_Strategy_3

Coca-Cola’s Gripping Advertisements

Localized Positioning

The recent 'Share a coke' campaign, launched in 2018 in almost fifty countries, has been quite a success. The images of celebrities of that region and messages according to the local language and culture of the area target the local market. 

Coca_Cola_Marketing_Strategy_4

Coca-Cola Advertisement Featuring Celebrities

Sponsorships 

The company is a well-recognized brand for its sponsorships, including American Idol, the NASCAR, Olympic Games, and many more. Since the 1928 Olympic Games, Coca-Cola has partnered on each event, helping athletes, officials and fans worldwide. 

Coca_Cola_Marketing_Strategy_5

Coca-Cola as Official Olympics Partner

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With technological advancement, social media and online communication channels have become the most significant part of the Coca-Cola marketing strategy. It actively uses online digital marketing platforms like Facebook , Twitter, Instagram, YouTube, and Snapchat to post images, videos, and more.  The Coca Cola marketing strategy primarily includes SEO , email marketing , content marketing , and video marketing .   

Coca_Cola_Marketing_Strategy_6.

Coca-Cola’s Instagram Posts 

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Coca-Cola Company: Strategic Management Process

Executive summary.

The paper at hand is devoted to the analysis of the process of strategic management basing on the Coca-Cola case study. In the framework of the relevant study, such aspects as a mission statement, a vision statement and values were examined.

The principle aim of this analysis resided in identifying the key advantages and disadvantages of the company’s strategic concept. A particular focus was put on the aspect of the strategy aligning with the interests of the company’s stakeholders. The study was carried out basing on the data that the company offers on its official website.

The analysis has shown that the key flaw in the company’s strategic planning is the lack of clarity in its values positioning. In addition, Coca-Cola seems to have a poor mission statement that does not reflect the core company values and purposes. As a result, it is suggested that the strategic concept is improved in order to ensure that the company’s message is communicated to the targeted audience in an efficient manner.

Introduction

A company’s mission and vision serve to be an effective tool to communicate their strategy to its stakeholders. In addition, they are an integral part of strategic planning as they help to work out a detailed and well-organized outline for both short-term and long-term targets. Moreover, they are a certain kind of a company’s image reflection so that the way they are posed has a critical impact on the audience’s perception of the brand.

The paper at hand is aimed at analyzing the core components of Coca-Cola’s strategic concept and their interconnection with the stakeholder’s interests. A particular focus is put on identifying the key drawbacks in the current strategic concept and suggesting the ways of their elimination.

Company’s Mission Statement and Analysis

Coca-Cola’s official web page offers the following mission statement: “To refresh the world…To inspire moments of optimism and happiness…To create value and make a difference…” (The Coca-Cola Company, 2016). Generally speaking, Coca-Cola’s mission statement expresses its core ideology that resides in bringing in a positive change. From this perspective, the company’s mission statement is most general – it does not provide a direct link to the stakeholders or the product aspect.

In the meantime, it has a hint at the company’s ambition to maintain its competitive advantage in the relevant market – “make a difference” might be interpreted as the company’s determination to offer better products than those of its rivals.

It is assumed that a consistent mission statement should comprise the core values, the core purpose and the visionary goals of the firm. In the meantime, it is supposed to be universal so that it can fit the demands of the changing environment (QuickMBA, 2010). From this perspective, Coca-Cola’s mission statement is concise and yet flexible. In other words, the company will not have to reshape it in response to the challenges that might appear on its way.

However, it might seem that the company has mixed its mission statement with the vision statement. The current statement does not reveal the reason for being; instead, it offers some framework for the organization’s future. According to the experts’ opinion, the vision statement should comprise the prospects that the company targets, whereas the mission statement is expected to explain the existing concept of the company (Heathfield, 2015).

Company’s Vision and Analysis

The company’s vision is based on the so-called “focused decisions”. Hence, the general target is sustainability and consistent growth, though the vision also addresses six dimensions: people, portfolio, partners, planet, profit, and productivity. For each of the enlisted aspects, Coca-Cola’s vision provides a relatively specific framework. Thus, for instance, the company is determined to make a “highly effective, lean and fast-moving organization” in terms of productivity and so on (The Coca-Cola Company, 2016).

Coca-Cola’s vision has both advantages and drawbacks. On the one hand, the vision is posed in such a way that it can be simply transformed into actions. Some experts believe that the practical side of the vision is of high importance – the employees are supposed to receive a particular guideline to implement the targeted ideology. It is also assumed that a good vision should not be too long so that one can easily memorize its catchy slogans and stick to them in his or her activity (Heathfield, 2015). From this standpoint, Coca-Cola’s vision is rather beneficial – it is brief and specific.

On the other hand, there is an opinion that modern vision is expected to be creative and unconventional (McNamara, n.d.). Otherwise speaking, a vision is no more a mere action plan but a powerful motivation tool. From this perspective, the company’s vision is rather ordinary – it is unlikely that it can inspire Coca-Cola’s employees the way it is currently proposed.

Company’s Values and Analysis

Coca-Cola points out the seven core values that it shares: leadership, collaboration, integrity, accountability, passion, diversity, and quality. For each of the values the company offers a brief interpretation to make it more illegible. Hence, for example, they explain that they understand leadership as “the courage to shape a better future” and so on (The Coca-Cola Company, 2016). At this point, the way that they put their values makes one think that the company has mixed the values and the vision. Hence, their values offer short and catchy slogans that look more like motivators and are uninformative from the practical point of view. Thus, for instance, the integrity value is accompanied by a short explanation “be real” that looks like an encouraging appeal, though it gives no idea of what is actually meant.

In addition, the core values of a company are normally not very numerous as they are supposed to comprise only the general points and avoid specificity. Some experts believe that the most rational value limit is five and below (QuickMBA, 2010). Coca-Cola, in its turn, offers seven core values, some of them, such as “passion,” for instance, look rather vague.

Nevertheless, the values have the strengths that should not be overlooked. Hence, for example, the targeted values are rather long-lasting. In other words, the company can rely on them in any circumstances and notwithstanding the products it sells. Supposing that Coca-Cola decides to change its profile, it might still adopt the values described above.

Alignment of Company’s Mission, Vision, Values, and Goals with Stakeholders’ Interests

On the face of it, the company looks highly concerned about engaging its stakeholders in the strategy planning. Thus, they claim that the stakeholders’ interests have a diverse effect on the corporate decision making ( Stakeholder Engagement , 2015). A more profound analysis yet shows that not all the components of the strategic concept are aligned with stakeholders’ interests directly.

The mission statement, for instance, addresses some communities that are promised to receive a “refreshed world.” In the meantime, the addressees of the “optimism and happiness” are not very clear – they might be the product’s consumers as well as the employees or both.

From this perspective, the company’s value statement is more precise. It addresses at least four groups of stakeholders: suppliers, employees, partners, and communities. Meanwhile, it seems paradoxical that the values have no direct link to the customers. Thus, there are some connotations for satisfying consumers’ needs and demands, although one will have to read between the lines to indicate the appeal to consumers.

The company’s values seem to be aligned with stakeholders’ interests best of all. Thus, they cover all the critical groups of stakeholders. Thus, for instance, the customers are ensured that they receive a high-quality product, the employees are welcomed to make effective leaders, the communities are promised to get a “better future” and the partners are encouraged to “leverage collective genius” (The Coca-Cola Company, 2016).

The only disadvantage that might be pointed out is the vagueness of some implications for the stakeholders’ interests. In other words, it is not always clear what kind of stakeholders’ group is addressed by this or that statement. Hence, for example, when the company claims that it is determined to “be real,” it is problematic to identify the group that is welcomed to share this value as well as to think of the action that can help to achieve this target.

Recommended Changes

The key flaw of the strategic concept that is recommended to be eliminated is the confused notions of mission and vision. Thus, instead of explaining the reason to be in the mission statement, the company focuses on the future-oriented aspiration. In addition, according to the basic principles of marketing, a mission statement is supposed to be longer that a vision one; in fact, it should include an explicit description of the company’s strategic concept ( Marketing Principles , 2012). In Coca-Cola’s case, the mission statement is short, and it evidently lacks some critical facts about the corporate ideology.

The company’s vision is rather efficient from the practical standpoint. In other words, it can be used as a precise guideline for the necessary actions. It can still be recommended that the company reshapes the vision in order to make it sound more motivating and inspiring. At the current point, it evidently lacks an encouraging appeal to the stakeholders. The company’s values, on the contrary, are highly inspiring and excessively vague. Otherwise stated, the company can try to put them more concisely so that the audience has a clear idea of what it is welcomed to share.

The analysis of the strategic concept of the Coca-Cola Company has shown that the company offers catchy slogans that are likely to attract the consumers. In addition, its mission, vision, and values are universal. Otherwise stated, Coca-Cola can rely on them regardless of the changes in the environment. Furthermore, all the strategic components are, to a larger or smaller extent, aligned with particular groups of the stakeholders.

Nevertheless, Coca-Cola seems to confuse some of the components. Thus, its mission statement sounds more like a vision. Moreover, such critical component as values evidently lacks clarity. Therefore, it is recommended that the strategic concept is slightly reshaped in order to make it more concise and informative.

Reference List

Heathfield, S.M. (2015). Build a Strategic Framework Through Strategic Planning .

Marketing Principles . (2012).

McNamara, C. (n.d.). Basics of Developing Mission, Vision and Values Statements .

QuickMBA. (2010). The Business Mission and Company Mission Statement .

Stakeholder Engagement . (2015). Web.

The Coca-Cola Company. (2016). Mission, Vision & Values . Web.

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Insights from Coca Cola Crisis Management Case Study

Have you ever wondered how a global giant like Coca Cola manages to navigate through a crisis? 

Picture this: one of the most beloved beverage brands in the world, facing a crisis that threatens its reputation and consumer trust. 

What would you do if you were in their shoes? 

In this Coca Cola crisis management case study, we delve into the fascinating world of Coca Cola’s crisis management strategies. 

Join us as we unravel the gripping tale of how this iconic company tackled a major crisis head-on, learning valuable lessons along the way. 

Get ready to discover the power of effective crisis management and the role it plays in safeguarding a brand’s legacy.

Brief history of Coca Cola and brand reputation and market share 

Coca Cola, the world’s most recognizable beverage brand, has a rich and fascinating history that dates back over a century. It all began in 1886 when pharmacist John Pemberton created a unique syrup and mixed it with carbonated water, giving birth to the iconic Coca Cola drink.

From its humble beginnings as a soda fountain beverage, Coca Cola quickly gained popularity and expanded its presence across the United States.

As the brand grew, it ventured into international markets, establishing its first international bottling plants in the early 1900s. Today, Coca Cola is a truly global company with a remarkable presence in over 200 countries, offering a diverse portfolio of beverages beyond its flagship cola, including juices, teas, sports drinks, and more.

The brand’s global reach and market penetration have made it an integral part of people’s lives, transcending cultural boundaries and becoming a symbol of refreshment worldwide.

Coca Cola’s brand reputation is synonymous with excellence and innovation. Over the years, the company has nurtured a strong brand identity built on trust, quality, and a commitment to delivering refreshing beverages to consumers.

The distinctive red and white logo is instantly recognizable, evoking feelings of nostalgia and joy.

With its relentless pursuit of customer satisfaction, Coca Cola has successfully captured a significant portion of the global beverage market. Despite fierce competition, the brand has maintained a dominant position, consistently ranking among the top beverage companies in terms of market share.

Coca Cola’s ability to adapt to changing consumer preferences , introduce new products, and leverage its brand equity has solidified its position as a leader in the industry.

However, even the strongest brands are not immune to crises, as we shall explore in the following sections.

Description of the Crisis Incident

In the annals of Coca Cola’s history, there have been instances where the brand faced significant crises that posed immense challenges to its reputation. One notable crisis involved allegations of product contamination, which sent shockwaves through the company and its consumers.

Imagine the scene: rumors started circulating that certain batches of Coca Cola products were contaminated, raising concerns about the safety and quality of the beloved beverage.

The news spread rapidly, fueled by social media and sensationalized media coverage, creating a sense of fear and uncertainty among consumers.

As the crisis unfolded, consumers expressed worries about potential health risks associated with consuming Coca Cola products. Speculations and negative narratives further fueled the crisis, amplifying the impact and posing a threat to the brand’s credibility and customer trust.

For Coca Cola, the crisis was a critical moment that demanded swift and effective action. The company faced the daunting task of managing the situation, addressing the concerns of its stakeholders, and restoring faith in its products. How did Coca Cola navigate through this tumultuous period? Let’s delve into their crisis management strategies and discover how they triumphed in the face of adversity.

Media coverage and public reaction

The crisis surrounding Coca Cola triggered a flurry of media coverage, with news outlets and social media platforms buzzing with discussions, speculations, and varying viewpoints. The sensational nature of the allegations and the widespread popularity of the brand ensured that the crisis garnered significant attention from the public and the media.

News reports, both traditional and digital, dissected the crisis, amplifying the concerns raised by consumers and shedding light on the potential consequences. Social media platforms became the breeding ground for discussions, where users expressed their opinions, shared experiences, and voiced their worries about the safety of Coca Cola products.

The intensity of the media coverage and public reaction put immense pressure on Coca Cola to address the crisis promptly and transparently. The company found itself navigating a landscape where every move was under scrutiny, and its response would shape public perception and future consumer behavior.

Initial response by Coca Cola

When confronted with the crisis, Coca Cola swiftly mobilized its crisis management team to address the situation head-on. Recognizing the importance of immediate action, the company adopted a proactive approach to manage the crisis and mitigate potential damage to its brand reputation.

Coca Cola’s initial response focused on three key pillars: transparency, accountability, and communication. The company acknowledged the concerns raised by consumers and the media, demonstrating a commitment to address the crisis with utmost seriousness.

First and foremost, Coca Cola conducted a thorough investigation into the alleged product contamination, leaving no stone unturned to uncover the truth. This transparent approach aimed to regain consumer trust by ensuring that the safety and quality of their products were of paramount importance.

Simultaneously, Coca Cola took accountability for any shortcomings or mistakes that may have contributed to the crisis. The company issued public statements expressing genuine regret for the distress caused to consumers and reassured them of their commitment to resolving the issue promptly and effectively.

Immediate actions taken by Coca Cola to address the crisis

In the face of the crisis, Coca Cola implemented a series of immediate actions to address the situation and regain consumer confidence. These actions were aimed at ensuring the safety and quality of their products, as well as effectively managing the crisis at hand.

Product Recall and Investigation

As a responsible measure, Coca Cola initiated a comprehensive product recall of the affected batches in collaboration with regulatory agencies. This demonstrated their commitment to consumer safety and allowed for a thorough investigation into the alleged contamination.

Enhanced Quality Assurance Procedures

Coca Cola implemented rigorous quality assurance procedures to prevent future incidents and maintain the highest standards of product safety. They reviewed and strengthened their manufacturing and packaging processes, as well as enhanced monitoring and testing protocols.

Collaboration with Regulatory Bodies

Recognizing the importance of regulatory compliance, Coca Cola collaborated closely with relevant regulatory bodies throughout the crisis. They provided full cooperation, shared information, and adhered to the recommendations and guidelines set forth by these authorities.

Communication strategies employed 

Effective communication is crucial during a crisis, and Coca Cola employed various strategies to ensure transparent and consistent messaging to stakeholders. These communication strategies aimed to address concerns, provide accurate information, and rebuild trust in the brand.

Press Releases

Coca Cola utilized press releases as a primary means of communicating official statements and updates regarding the crisis. These press releases were disseminated to the media and made available to the public, ensuring timely and accurate information about the steps being taken to address the situation.

Social Media Engagement

Recognizing the power of social media in shaping public perception, Coca Cola actively engaged with consumers through social media platforms. They responded to queries, addressed concerns, and provided updates on the progress of the investigation. This direct engagement helped to establish a sense of transparency and responsiveness.

Website Updates

Coca Cola dedicated a section on their official website to address the crisis and provide comprehensive information to concerned consumers. This platform served as a central hub for sharing details about the investigation, product recalls, and ongoing efforts to resolve the crisis.

Stakeholder Communication

Coca Cola prioritized communication with its stakeholders, including distributors, retailers, and business partners. They provided regular updates to these stakeholders, addressing any potential impact the crisis might have on their operations and assuring them of the measures being taken to rectify the situation.

Spokesperson Representation

Coca Cola designated trusted and credible spokespersons to represent the company and communicate with the media. These individuals were well-versed in the crisis details and effectively conveyed the brand’s commitment to consumer safety and resolution.

The role of company leadership in crisis management

During a crisis, strong and effective leadership is crucial in guiding the organization through the challenges and ensuring a successful resolution. In the case of Coca Cola, company leadership played a vital role in crisis management, demonstrating their commitment, decisiveness, and ability to navigate through adversity.

Strategic Decision-Making

The leadership at Coca Cola spearheaded the strategic decision-making process during the crisis. They analyzed the situation, gathered information, and collaborated with experts to make informed choices that would best address the crisis and safeguard the brand’s reputation. Their ability to make tough decisions quickly and effectively guided the crisis management efforts.

Communication and Transparency

Company leadership took the responsibility of communicating with stakeholders, including employees, consumers, distributors, and regulatory bodies. They ensured that the messaging was transparent, consistent, and aligned with the company’s values. By openly addressing concerns, admitting any mistakes, and providing regular updates, leadership fostered trust and credibility during the crisis.

Team Mobilization and Empowerment

Effective crisis management requires the mobilization and empowerment of cross-functional teams within the organization. Coca Cola’s leadership ensured that the crisis management team had the necessary resources, support, and authority to address the crisis effectively. They encouraged collaboration, innovation, and open communication within the teams to expedite the resolution process.

Continuous Learning and Improvement

In the aftermath of the crisis, company leadership played a crucial role in fostering a culture of continuous learning and improvement. They conducted thorough evaluations of the crisis management process, identified lessons learned, and implemented measures to prevent similar incidents in the future. Their commitment to learning from the crisis helped enhance the company’s resilience and preparedness for potential future challenges.

05 lessons learned from coca cola crisis management 

These lessons learned from Coca Cola’s crisis management case study serve as valuable insights for other organizations facing similar challenges.

Let’s discuss each of these lessons learned:

Swift and Transparent Communication

The crisis taught Coca Cola the importance of immediate and transparent communication. By promptly addressing concerns, providing accurate information, and engaging with stakeholders openly, the company was able to regain trust and control the narrative surrounding the crisis.

Collaboration with Regulatory Bodies and Experts

Coca Cola’s collaboration with regulatory bodies and external experts proved vital in validating their actions and ensuring compliance with industry standards. This collaboration enhanced the credibility of the company’s crisis management efforts and helped regain confidence in their products.

Proactive Approach to Crisis Resolution

Coca Cola’s proactive response to the crisis demonstrated the significance of taking ownership and accountability for the situation. By swiftly initiating product recalls, conducting investigations, and implementing enhanced quality assurance procedures, the company showed a commitment to consumer safety and resolution.

The crisis served as a catalyst for continuous learning and improvement within Coca Cola. The company evaluated the crisis management process, identified areas for improvement, and implemented measures to prevent similar incidents in the future. This commitment to learning from the crisis enhanced their resilience and preparedness.

Importance of Leadership

Strong leadership played a critical role in guiding Coca Cola through the crisis. The ability to make strategic decisions, communicate effectively, and empower teams was instrumental in navigating through the challenges and restoring consumer trust. The crisis highlighted the importance of having capable leaders who can steer the organization through turbulent times.

Final words 

Coca Cola crisis management case study provides us with valuable insights and lessons that can be applied to various organizations facing similar challenges. The company’s response to the crisis surrounding alleged product contamination showcased the importance of swift and transparent communication, collaboration with regulatory bodies and experts, taking a proactive approach to resolution, fostering a culture of continuous learning, and demonstrating strong leadership.

The Coca Cola crisis management case study serves as a reminder that crisis management is not just about resolving immediate issues but also about building trust, maintaining open communication, and continuously improving processes. By incorporating these lessons, organizations can transform crises into opportunities for growth and demonstrate their ability to weather storms and emerge even stronger.

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Strategic Management and Financial Analysis in the Context of Epidemic -- A Case Study of Coca-Cola Company

These authors contributed equally.

The subject of this article is to analyze the financial statement and corporate strategy of Coca-Cola (referred to as KO) Company during the COVID 19 epidemic. The two main analysis methods are quantitative and qualitative analysis. The quantitative analysis uses ratios and Dupont to analyze Coca-Cola’s ratio, looking at the impact of the epidemic on KO from the perspective of growth, profitability, liquidity, efficiency, and solvency. The qualitative analysis uses the SWOT and Porter five forces analysis method from the traditional accounting perspective to initially analyze the internal and external environment of Coca-Cola and uses the Balanced Score Card (BSC) from the management accounting perspective to interpret the advantages and disadvantages of the corporate strategy. The quantitative analysis results show that due to the epidemic’s impact, KO’s ability to repay debt and efficiency of using financial resources has been improved under the condition of the decline of KO’s growth and profitability. But its finances and goodwill may suffer as a result of KO’s acquisition problems. Qualitative analysis results show that KO’s business processes are highly systematic, and strategic costs are reduced. In addition, the main risks of KO lie in the threat from competitors and the lack of innovation ability. Under the influence of the epidemic, its key profit indicators and debt ratio showed a negative trend. It failed to reach its financial target due to its special risk avoidance strategy of debt ratio. But it has excelled at attracting and retaining customers. This paper provides guidance and reference for future scholars to study KO’s management and financial performance during the epidemic.

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Coca-Cola CRM Case Study: The Untold Story

  • Category : Case Studies
  • Last updated on June 3, 2023
  • By Viktor. A
  • One Comment

coca-cola crm case study

Coca-cola’ customer relationship management (CRM) strategy is at the core of their phenomenon growth. Established in May 8, 1886, by Dr John Pemberton, who later sold the business to Asa Griggs Candler, and a few others. Today the story is different, as Coca-Cola currently ranks as the 6th most powerful brand in the world.

The success of the company is mainly from its customer relationship management process. Instead of focusing on the product, they leveraged on CRM strategies to launch series of innovative personalized marketing campaigns.

Coca-cola is big on marketing and customer-centric adverts. They spend a lot of money on advertisements and R&D. Today, the company spends about 10 percent of its revenue on advertising and marketing, approximately $4 billion annually.

In this article, you’ll learn about the Coca-Cola CRM case study, and other strategies that made them super successful.

Coca-Cola became America’s leading beverage brand and a lot of that had to do with the marketing, which was genius and ahead of the game. – Dr. Sydnee Mcelroy

Coca-Cola Timeline

1886: Dr John Pemberton served the world’s first Coca‑Cola at Jacobs Pharmacy in Atlanta, Ga.

1888: Before his death, he sold his business to Asa G. Candler.

1899: Two Chattanooga lawyers, Joseph Whitehead and Benjamin Thomas, travelled to Atlanta to negotiate the rights to bottle Coca‑Cola.

1906: The Coca‑Cola Company introduced a diamond-shaped label with a colourful trademark to stand out from the infringers.

1915: The Trustees of the Coca‑Cola Bottling Association voted to expend up to $500 to develop a distinctive bottle for Coca‑Cola.

1917: The Coca‑Cola Company began its partnership with The Red Cross.

1935: Lettie Pate Evans joined the Board of Directors as the 1st woman to serve on the board of a major company.

1963: The Coca‑Cola Company produced its first diet drink, Tab. Tab was introduced before the early growth of the low-calorie soft drink segment.

1966: The Coca‑Cola Company launched “The Nutrition Project”, assigning an international team of scientists and food technologists the task of finding a solution to the “protein gap” facing the world’s impoverished nations.

2001: The Coca‑Cola Company established the Coca‑Cola Africa Foundation, which has worked to prevent and treat HIV/AIDS in Africa.

2007: The Coca‑Cola Company announced a transformational partnership with the World Wide Fund for Nature (WWF) to address challenges related to freshwater conservation.

2009: The Coca‑Cola Company introduced PlantBottle Packaging – the first ever recyclable PET plastic beverage bottle made 30 per cent from plants.

2010: The Coca‑Cola Company launched the 5by20 Initiative. This Initiative aims to enable the economic empowerment of 5 million women entrepreneurs across the globe by 2020.

2013: The first EKOCENTER is established. EKOCENTER is a modular community market run by local women entrepreneurs and provides safe drinking water, wireless communication, electricity, and other functionality to jump-start entrepreneurship opportunities.

Coca-cola crm case study

Coca-Cola   CRM Case Study: Top Ways Coca-cola Uses CRM

1. identifying their target customers:.

Coca-cola targets every customer in the market, making sure that the refreshing needs of everyone are met. Coca-cola’s targets are based on age, income, family size, gender, and geographical segmentation.

Age : The company arranges campaigns in schools to target young people between 10 and 35. They target middle-aged and older adults who are diet conscious by offering Diet Coke.

Income : Coca-cola targets its customer’s income by introducing packaging at different price ranges to increase affordability.

Family Size : They introduce packaging in different sizes, from the biggest to the smallest. Large families can get the biggest size and share it with the whole family.

Gender : They also target customers based on gender. For example, Coca-Cola Light is preferred by females, while Coke Zero and thumbs up are men’s favourites due to their strong taste.

Geographical segmentation : Coca-Cola sells its products globally and targets different cultures, customs, and climates. For instance, the Asian version is sweeter than other countries.

2. Understanding their customers’ needs and wants

Coca-cola understands that without attentive listening, patience, and clarity, it will be very difficult for them to identify the needs of their customers.

  • They listen attentively to hear what their customers want.
  • They are always patient to understand their pain point.
  • Coca-cola makes sure they communicate with sincerity and speak in a way they will understand by avoiding technical jargon.

How Coca-cola Identifies Customers’ Needs

  • Coca-Cola brought a new innovative  vending machine  with a fountain dispenser called Freestyle. In this, the customer can customize their drink from 100 combinations, and this was the first time they could have provided 100 combinations that were not introduced before. The most important thing about the freestyle vending machine is that it is connected to the SAP system. So it collects all the customer data and is stored in the CRM system.

Freestyle Vending Machine

  • Coca-cola usually conducts  surveys  by using  email marketing software.  With Email marketing software , they could section their ideal customers based on a particular purchasing style. They were also able to get a list of positive reviews from some of your most of their loyal customers.
  • They use the insights obtained from surveys to create  buyer personas . So that all their marketing activities are geared toward serving their customers and products tailored to their needs.
  • Coca-cola has  multiple layers of communication  methods across all its platforms. And their customer care team is well-imbibed with the right customer care etiquette. This quality service helps their customers to share their opinions about the product.

3. Customer Loyalty

Coca-Cola has started a new marketing environment by providing a unique PIN in the bottle, which can be used to save 75 cents on the mobile bill. They can also gain points for Coke from this system. So this is one of the best marketing techniques to gain customers by giving offers to their daily use products.

4. Direct store delivery

For adequate satisfaction of its customers, the company implemented the formula of DSD (Direct Store Delivery). This is to sustain smooth relations with local bottlers and stores. DSD collects the customer data and transfers it to the distributors. It helps in improving the delivery costs.

The customer data obtained helped Coca-Cola successfully satisfy its customers’ demands.

What CRM does Coca Cola Use?

The CRM technology Coca-Cola uses is SAP (System Applications and Products) Strategic Enterprise Management. Coca-Cola started using this CRM tool in the year 2009 and continues to use it to date. This CRM system helps Coca-cola stay connected to customers, streamline processes, and improve profitability.

SalesForce is another CRM that has contributed to the growth of Coca-cola.

SalesForce is a cloud computing CRM software and is currently used by Coca-Cola. It takes the help of the mobile app developed on the SalesForce platform. It has massively supported the technicians and repair department at Coca-Cola.

Apart from SAP and SalesForce CRM, the CRMs listed below are widely known to automate marketing processes and help strengthen customer relationships. They include:

strategic management case study of coca cola

Freshsales automates your sales process, and helps drives sustainable business growth.

strategic management case study of coca cola

A sales-focused CRM that leverages AI to automate sales, lead & demand generation. 

strategic management case study of coca cola

Customize your workflows to track all aspects of the sales cycle, from lead gen to post-sale support.

Wrapping it up

Human connection is an important part of the company’s brand message. Coca-cola understands how essential customer relationships are in business. So they embrace it so tightly by implementing different strategies to meet their customers’ needs.

They also use SAP and SalesForce CRM software to strengthen the relationship with their customers automatically. As a business owner, you can still learn from them and implement these strategies in your little way.

Frequently Asked Questions

How does coca-cola build customer relationships.

Coca-cola has  multiple layers of communication  methods across all its platforms. Their customers can share their opinions and receive an immediate response from these platforms.

When audiences know a brand is loyal to them — responding quickly to customer service needs, providing value, and are experts in that field— They may consistently choose you over the competition and are more likely to become brand advocates in the long run.

Secondly, Coca-Cola uses touching messages about family and friends to advertise its beverages. The bottles say, “When you share a Coke with someone special, you must share it with them.” The consumer’s emotions when purchasing a Coke become more vivid as the product becomes more appealing. 

How does Coca-Cola use CRM systems?

Coca-cola integrated its SalesForce CRM system with ERP (enterprise resource planning) to coordinate better the various departments and stages involved in the sales process. Coca-cola leverages CRM data to develop a pull-production system that aligns production and inventory with demand to slash inventory waste.

Coca-Cola Bottlers has recently agreed with SAP’s blockchain platform to streamline franchise relationships across its 70 bottling companies. 

What are the advantages of CRM to Coca-Cola?

With the help of CRM, Coca-cola was able to; 

  • Keep track of customer contact information, preferences, and purchase history. This information is used to improve customer service and target marketing efforts. 
  •  Track and manage sales leads.
  • Ensured that their customers receive the best possible service. 
  • The CRM aids in advancing existing processes and improving new ones to meet the customer’s needs. As a result, sales have increased, and customer retention has improved.

Which CRM system does Coca-Cola use?

Coca-Cola uses is SAP (System Applications and Products) Strategic Enterprise Management. Coca-Cola started using this CRM tool in the year 2009 and continues to use it to date. This CRM system helps Coca-cola stay connected to customers, streamline processes, and improve profitability.

Viktor. A

Viktor. A is a writer and researcher with experience writing about various topics, including CRM software, SaaS, finance, and technology. When he's not writing, he's swimming and travelling

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Strategic Management in Global Context: A Case Study of Coca Cola

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Strategic Management Case Study Coca-Cola Co.

Jul 12, 2014

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Strategic Management Case Study Coca-Cola Co. . Presented by: Carter Vaillancourt, Megan Land, and Emily Michaud UMFK, 2013 . Overview. Company Overview A brief history about Coca Cola Existing Mission and Vision Statement Existing Objectives and Strategies

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Strategic Management Case StudyCoca-Cola Co. Presented by: Carter Vaillancourt, Megan Land, and Emily Michaud UMFK, 2013

Overview • Company Overview • A brief history about Coca Cola • Existing Mission and Vision Statement • Existing Objectives and Strategies • New Mission and Vision Statement 2. External Audit • Industry Analysis • Current Opportunities and Threats • CPM Matrix • EFE Matrix 3. Internal Assessment • Organizational Structure • Strengths and Weaknesses • Financial Condition • IFE Matrix 4. Strategy Formation • SWOT matrix • Space Matrix • BCG Matrix • Grand Strategy Matrix • Matrix Analysis • QSPM Matrix 5. Strategic Plan for the Future • Strategies 6. Implementation • EPS/EBIT • Projected Financials 7. Evaluation • Balanced Score Card 8. Coca-Cola Update

The Coca-Cola Bottle from the Beginning, to Present

In 1886 is when Atlanta pharmacist created the first Coca-Cola mixture out various ingredients, where he then put it up for sale for 5 cents a glass In 1985, was the release of a new taste for Coca-Cola, the first change in formulation in 99 years. It wasn’t long until they changed to their original In 1943, during WWII General Eisenhower requested 10 bottle plants to be shipped to them overseas, which then created an overseas business. Due to beverage companies copying Coca-Cola they began to manufacture the contour bottle in 1916 1886-1892 1905-1918 1941-1959 1982-1890 1893-1904 1919-1940 1960-1981 1990-1999 In the 1928 Olympics located in Amsterdam, Coca-Cola traveled with the team and began global expansion 1984 is when Joseph Biedenharn was hired to be the first to put the Coca Cola in bottles New beverages joined the Company's line-up, including Powerade®   sports drink, Qoo® children's fruit drink and Dasani® bottled water After 70 years, Coca-Cola added new flavors: Fanta®, originally developed in the 1940s and introduced in the 1950s; Sprite® followed in 1961, with TAB® in 1963 and Fresca® in 1966

Revenue and Cash Flow Growth 2005-2010

Existing Vision Statement Our vision serves as a framework for our Roadmap and guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable, quality growth. • 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 beverage brands that anticipate and satisfy people’s desires and needs. • Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value. • Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities. • Profit: Maximize long-term return to shareholders while being mindful of our overall responsibilities. • Productivity: be a highly effective, lean and fast-moving organization

Existing Mission Statement Our Roadmap starts with out mission, which is enduring. It declares our purpose as a company and serves as the standard against which we weigh our actions and decisions. • To refresh the world… • To inspire moments of optimism and happiness… • To create value and make a difference.

Existing Growth Strategy • Driving global beverage leadership • Accelerate innovation • Leverage our balanced geographic portfolio

Proposed Vision Statement Coca-Cola’s vision is to inspire moments of happiness while refreshing the world.

Proposed Mission Statement With six main operating segments in North America, Latin America, Europe, Eurasia, Africa, the Pacific,(3) and bottling investments, Coca-Cola is dedicated to being a highly effective refreshments and fast-moving organization. (5) Our mission is to bring consumers quality refreshments that anticipate and satisfy their desires and needs. (1)(2). As a company we strive to be responsible citizens by helping to rebuild and support sustainable communities (8), while maximizing long-term return to shareowners (6). Through modern technology (4) and inspiring employees to be the best they can be (9) we know we can continue to provide the best products on the market. Customers Products or Services Markets Technology Concern for Survival Philosophy Self-Concept Concern for Public Image Concern for Employees

External Audit

Industry Market Analysis

Opportunities • Spurring demand for energy drinks, especially in the US where estimates show about 2 billion. • Approximately 85% of the company’s unit case volume is delivered in recyclable bottles and cans, and the company targets to recover at least 50% of the equivalent bottles and cans sold worldwide. • Bottled water drinking has increased 11%. • European and China market show large potential to grow by an estimated amount of 7%. • Has the option, but no obligation, to assist bottlers with promotional and marketing activities ($5 billion in 2010). • 55 billion beverage servings are consumed worldwide each day • Global beverage industry is expected to grow from a valued $1.4 trillion in 2008, to $1.6 trillion by 2013. • India currently only consumes 11 8oz servings of Coca Cola per person per year. • The non-alcoholic ready to drink(NARTD) beverage industry is expected to grow by 50 billion unit cases by 2020.

Threats • Increasing preference for non carbonated healthy drinks. The Coca Cola soda saw a 5% volume declines respectively in the carbonated soda brands category. • With rising obesity rates of 35.7% for adults and 17% for youth in the U.S. alone, health concerns may cause reduced consumption of sugar sweetened beverages, impacting profitability. • Water is the main and most significant ingredient in beverages, quality and abundance of water is scarce worldwide, where 70% is used for agriculture and irrigation. • With $24.5 billion in net operating revenue generated from international markets, and operating in over 200 countries, unstable economic conditions in foreign countries can dramatically decrease revenues. • The primary beverage of Coca Cola is sparkling beverages, the most popular drinks consumed worldwide, in their respective order, are water, tea, and beer. • Changes in currency rates. Coca-cola uses 74 functional currencies in 2010. • In 2010 had approximately 18,600 associates represented by labor unions. • PEP operating income and revenues both exceeded KO's by .85 Billion and 7.67 Billion respectively. They are strong competitors in the market • PepsiCo dominated North America with sales of US $22billion,while Coca-Cola only had about US $7billion.

Internal Audit

Financial InformationIncome Statement

Financial InformationBalance Sheet (1)

Financial InformationBalance Sheet (2)

Coca-Cola Worth Analysis for 2010 (in millions)

Ratio Analysis

Strengths • With revenues of $35,119,000 million, Coca-Cola is one of the largest beverage manufacturers globally. • Coca-Cola owns four of the world’s top five nonalcoholic sparkling beverage brands including Coca-Cola, Diet Coke, Sprite and Fanta. • Sold 25.5 billion cases of products in 2010 • Accounted for 51% of U.S. unit case volume, and 50% of non-U.S. case volume for 2010 • Has ownership interest in its bottling/distributing partners; 23% in Coca-Cola Hellenic, 32% in Coca-Cola FEMSA, and 30% in Coca-Cola Amatil. • Acquired Coca-Cola Enterprises, Inc., one of the major bottlers for Coca-Cola in North America which had $3.6 billion in revenues • In Eurasia and Africa, unit case volume increased 12% in 2010 • Coca-Cola has more than 500 brands and 3,500 beverages and products. • Coca-Cola sells 1.7 Billion servings of beverages per day in over 200 countries. • Coca-Cola generated 9.5 billion in cash from operations in 2010, up 16% over 2009.

Weaknesses • Weak performance in Europe achieving a 0% growth in 2010 • Does not hold number 1 spot for either the water brand or the leading sports drink • Currently does not hold a snacks segment, where Pepsi Co. has a food division which creates for 60% of their total revenue. • Does not perform best in North America, only accounting for 31.7% in total revenue in 2010 • Has a high number of current liabilities accounting for 18,508 million • Acquiring Coca-Cola Enterprises (CCE) resulted in assuming additional $7.9 billion in debt • Operating income for Europe operations decreased by $50 million in 2010 • Interest expense increased $378 million mainly due to premiums paid on repurchasing long term debt • Common Stock Market Prices decreased between the first and second quarter in 2010 from $52.23 and $49.47 • Other operating expenses grew to $5,959 million in 2010 from $5,699 million in 2009

Strategy Formation

SWOT Matrix ST Strengths Opportunities WO ST WT Threats Weaknesses

FS 6 Aggressive Conservative 5 4 3 2 1 CS IS -6 -5 -4 -3 -2 -1 1 2 3 4 5 6 -1 -2 -3 -4 -5 Competitive Defensive -6 ES Space Matrix

BCG Continued

Grand Strategy Matrix Quadrant I 1. Market development 2. Market penetration 3. Product development 4. Forward integration 5. Backward integration 6. Horizontal integration 7. Related diversification Quadrant II 1. Market development 2. Market penetration 3. Product development 4. Horizontal integration 5. Divestiture 6. Liquidation Quadrant IV 1. Related diversification 2. Unrelated diversification 3. Joint ventures Quadrant III 1. Retrenchment 2. Related diversification 3. Unrelated diversification 4. Divestiture 5. Liquidation

Matrix Analysis

Strategy Evaluation Integration Strategies • We have integrated into many suppliers prior to 2010 • We recently purchased CCE which helps integrate our bottling and marketing Product and Market Development • We are highly established worldwide prior to 2010 Market Penetration • We are currently in 200 different countries prior to2010 Unrelated or Related Diversification • We don’t offer a food segment (Unrelated) • None of our main competitors offer an alcoholic beverage (Related)

Strategic Fit Competitive Risks • Pepsi Co. and Nestle currently have market share in the Food Industry Funding Aggressive Growth • Market Capitalization of 190 billion • Current Assets exceed current liabilities by over 3 billion Strong Brand Utilization • Moving into the food industry and having very strong customer loyalty, customers will be drawn to new products

Kellogg Company • Currently located in 180 different countries • Sales totaled 12.4 billion in 2010 • Includes brands such as: Special K, Cheez-It, Pringles, Keebler, Austin, Famous Amos, and Townhouse Crackers • Food Consumer Products Industry Kellogg's is ranked number 2, behind Pepsi Co. and ahead of General Mills

3-Year Goals In 3 Years - Acquire ownership of Kellogg Company by the end of 2013 • Expand Healthy Food choices through acquisition Year 1: Begin Acquisition Process with Kellogg Company Year 2: Attain Ownership of Kellogg Company Year 3: Begin Marketing and Sales with Kellogg Company

Strategic Implementation

Kellogg Company Net Worth Analysis

EPS/EBIT Assumptions

EPS/EBIT Continued Assumptions

Projected Financial Assumptions

Projected FinancialsIncome Statement

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Coca-Cola Case Study

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An American corporation named u201cCoca Colau201d was founded back in 1892. It was primarily engaged in the manufacture of a sweet carbonated beverage which is a cultural and symbol of United States tastes. Read Case Study on Coca-Cola.

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COMMENTS

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