Coca Cola Swot Analysis

Topics: Coca-Cola, Marketing, The Coca-Cola Company Pages: 10 (2904 words) Published: January 28, 2012
Marketing Management I

Project : the Four P’s of Marketing for Coca-Cola

Aakash Utreja

I would like to thank Mr K.C Prakash for his practical approach towards the subject which led me to learn the insights about Marketing.

A special Thanks to Dr. Phillip Kotler whose book Serves as a bible to many Marketing Students

"Only 50% of what is consumed is what goes in the mouth and in the stomach; the other 50% goes in the mind and heart."

History of Coke

The Early Days

Coca-Cola was created in 1886 by John Pemberton, a pharmacist in Atlanta, Georgia, who sold the syrup mixed with fountain water as a potion for mental and physical disorders. The formula changed hands three more times before Asa D. Candler added carbonation and by 2003, Coca-Cola was the world’s largest manufacturer, marketer, and distributor of non-alcoholic beverage concentrates and syrups, with more than 400 widely recognized beverage brands in its portfolio. With the bubbles making the difference, Coca-Cola was registered as a trademark in 1887 and by 1895, was being sold in every state and territory in the United States. In 1899, it franchised its bottling operations in the U.S., growing quickly to reach 370 franchisees by 1910.10 Headquartered in Atlanta with divisions and local operations in over 200 countries worldwide, Coca-Cola generated more than 70% of its income outside the United States by 2003

International expansion

Coke’s first international bottling plants opened in 1906 in Canada, Cuba, and Panama.11 By the end of the 1920’s Coca-Cola was bottled in twenty-seven countries throughout the world and available in fifty-one more. In spite of this reach, volume was low, quality inconsistent, and effective advertising a challenge with language, culture, and government regulation all serving as barriers. Former CEO Robert Woodruff’s insistence that Coca-Cola wouldn’t “suffer the stigma of being an intrusive American product,” and instead would use local bottles, caps, machinery, trucks, and personnel contributed to Coke’s challenges as well with a lack of standard processes and training degrading quality. Coca-Cola continued working for over 80 years on Woodruff’s goal: to make Coke available wherever and whenever consumers wanted it, “in arm’s reach of desire.” The Second World War proved to be the stimulus Coca-Cola needed to build effective capabilities around the world and achieve dominant global market share. Woodruff’s patriotic commitment “that every man in uniform gets a bottle of Coca-Cola for five cents, wherever he is and at whatever cost to our company” was more than just great public relations. As a result of Coke’s status as a military supplier, Coca-Cola was exempt from sugar rationing and also received government subsidies to build bottling plants around the world to serve WWII troops. Turn of the Century Growth Imperative The 1990’s brought a slowdown in sales growth for the Carbonated Soft Drink (CSD) industry in the United States, achieving only 0.2% growth by 2000 (just under 10 billion cases) in contrast to the 5-7% annual growth experienced during the 1980’s. While per capita consumption throughout the world was a fraction of the United States’, major beverage companies clearly had to look elsewhere for the growth their shareholders demanded. The Coca-Cola India no. 1-00853 looming opportunity for twenty-first century was in the world’s developing markets with their rapidly growing middle class populations.

The World’s Most Powerful Brand

Interbrand’s Global Brand Scorecard for 2003 ranked Coca-Cola the #1 Brand in the World and estimated its brand value at $70.45 billion. The ranking’s methodology determined a brand’s valuation on the basis of how much it was likely to earn in the future, distilling the percentage of revenues that could be credited to the brand, and assessing the brand’s strength to determine the risk...

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