CASE STUDY

Group No.10

Presented By:
Karishma Chandarana Vanita Jain Ananta Shah Krutarth Patel Sailesh Sah

Background
Invented in 1887 by john Syth. Worlds best known brand name Robert goizeta CEO 1981-1997 Soft drink industry categorised in following ways:
Refreshment Rejuvenation Health & nutrition Replenishment

70 % of cokes sales & 80 % of its profit are now earned outside the US. Company has 50% share of world market for carbonated drinks.

 Coca cola has continued to increase worldwide sales through clever marketing & occasional products. It was Americas most admired company in the fortune ranking but it has not sustained this position in the late 1990s. Coca cola has also been affected from economic crises. In terms of increase shareholders wealth, coca cola was unrivalled in the US throughout the leadership of its charismatic chief executive, Robert Goizueta.

Products & Promotion

New product launches, 1960 : Fanta- the orange drink; Tab- sugar free coke 1982: Diet coke 1985: New coke was launched Sprite & Minute maid juices are some other famous products Extended product line of flavoured water and lemon & vanilla flavour coke 1999: its name was linked to fashion n sports clothing, first significant extension of brand

 It controls production of its concentrated

Production & Distribution

syrup from Atlanta Mixing, bottling, canning & distribution is franchised to the independent businesses worldwide. Goizueta inherited an under performing network of distribution and set about strengthening it by JVs and tight controls. He invested in underperforming bottlers & sold to those who could invest more into them The most powerful & pervasive Distribution Network

Promotional Activities
2001 formed a JV with P&G to team up with its products like Pringles & allied with Disney for promotional activities. Sold through Walmart & Mac Donalds. Increased emphasis on packaging & branding on the cost of pure advertisements. It has defended the increased competition throught supplying from convinence store, fast food chains & vending machines.

Competition
Increased competition from retailers own brands. Main competitor- Pepsi whos market share is 30% of US market and 20% of world market Pepsi diversified into Snack food (Fritolay in US, Walkers & Smiths in UK) & Restaurants(Pizza Hut,Taco Bell, Kentucky fried chicken ) Owns its bottling networks mostly 1996, Relaunched Pepsi with a contemporary Blue shade. Consequently divested its restaurant business and acquired Orangina & Tropicana. Other competitor is Cott which produces discounted colas for Walmart in US & Sainsbury & Virgin in UK.

Why is Coca-Cola number one in its Industry?

New product launches

Different outlets

Distribution network

Heavy Promotional expenses

M & A and Statergic Allaince

 New Product launches Fanta, Diet Coke, Tab. The most powerful & pervasive Distribution Network. JV with P&G to team up with its products like Pringles Allied with Disney for promotional activities. It has defended the increased competition throught supplying from convenience store, fast food chains & vending machines.

Where is its Competitive Advantage?

 The secret recipe for Coca-Cola, which arguably tastes better than other cola drinks. Their ability to continue developing new products and re-inventing old ones Coca-Cola currently offers over 400 brands in 200 markets worldwide. Joint venture with Procter & Gamble. Coca-Cola accessible to billions of people worldwide. Allied with Disney for promotional activities Coca-Colas production techniques are so well developed that it costs a fraction of the selling price to manufacture their product, resulting in high profit margins.

If It avoid serious mistake ,dose it need to do anything radically different to retain its position?
1981 to 1997 coco cola made miss judgments The Product launch in 1982 diet Coke was less Significant other than America New coke launched in 1985 to replace orignal blending . No because they already doing heavy promotional activities