The Coca-Cola Project

Role of e-commerce
Coca Cola Co uses business to business or B2B. Electronic commerce has fast become a preferred
method of doing business for the grocery industry. Major retailers have seen the rewards of enhanced
supply chain efficiency and increased business automation. As a result, more major consumer goods
companies are starting to use the Internet to do business with retailers. Therefore, Coca Cola being an
important SUPPLIER, needs to provide its customers with a fast and reliable way to take purchase
orders. Internet has made it possible for Coca-Cola Company to build a strong relationship with its bottling
partners. Although in most cases they operate as two independent companies, internet makes it easier for
them to interact with each other. The Coca-Cola Companys business is focused on creating and
marketing their brands and trademarks, while Coca-Cola bottling companies produce and package the
finished beverage products and then sell and distribute them to our retail and WHOLESALE customers
Coca-Cola Company's work together with more than 300 bottling partners globally and operate the most
extensive beverage distribution system in the world. This Coca-Cola system owns, leases or operates
more than 800 plants around the world. Coca-Cola's bottling partners range from international and
publicly TRADED businesses to small, family-owned operations. Their governance and management
structures are separate from those of The Coca-Cola Company. There are more than ten local bottlers in
Canada but the vast majority of Coca-Cola products are manufactured and distributed by the Coca-Cola
Bottling Company (CCBC).Coca-Cola uses two types of search engines in order to follow its B2C model;
Crawler based search engine and human powered directories. Putting online advertisements, also known
as banner ads, is rapidly growing in today's business. Thus, Coca-Cola has adapted to these new
changes by putting its online ads on today's most visited websites such as My space, Face book, and
Twitter. In addition, Coca-Cola has created its own page on Face book, and My space. Coca-Cola is in
the lead compared to its competitors with over 4,000,000 fans. This shows that Coca-Cola is surely doing
its job to compete with other lead brands of soda. Coca-Cola gets its brand to the viewers.

Share A Coke When

Share a Coke returned to the U.S. in May, the brand promised fans more first names on more
packages for more occasions. One way Coke is delivering on that promise is through a new eCommerce platform that lets consumers order personalized glass bottles of Coca-Cola online
either for themselves or to share with someone special for at-home delivery within days.
To date, Coke has shipped out more than 500,000 eight-ounce bottles which sell for $5 apiece,
plus shipping with names and custom messages printed on the labels. Some fans have used
the bottles to toast 2015 graduates, honor dads on Fathers Day, celebrate weddings and births,
and even congratulate the FIFA Womens World Cup champs. Others have ordered them to use
as party favors or gifts

Surge with Amazon

Coca-Cola yesterday used Amazon exclusively to re launch its discontinued soda drink Surge,
the first time the drinks giant has distributed a product solely through e Commerce further

evidence that CPG brands are increasingly looking to drive sales from the online channel. The
drinks giant will rely solely on Amazon.com for the relaunch of the 1990s-era citrus-flavored soda
in another sign that consumer-packaged good brands are seeking more online sales. Surge,
which competes directly with PepsiCo's Mountain Dew, was discontinued in 2002 after debuting
in 1996.Originally launched in 1996, Surge was taken off the market in the early 2000s but is
making a comeback thanks to a passionate community of fans The Surge Movement which
has been continuously lobbying Coca-Cola to bring back the soda drink."In this new era of
marketing, we're exploring segmented delivery of our portfolio to consumers," Racquel Mason,
associate VP-sparkling flavors, Coca-Cola North America, said on the corporate blog. "Previously,
a smaller brand would never have had a realistic shot at commercialization. Now with Amazon,
consumers can order a product like Surge and have it delivered directly to their doorstep. It's the
democratization of demand."Yesterdays relaunch sees Coca-Cola exclusively use Amazon as its
distribution partner a first by the drinks giant enabling the company to both launch a brand
online as well as closely monitor sales and inventory. The first batch of Surge reportedly sold out
within hours on Amazon.

Analyzing the Market

Macro

1. Demographic Forces
Within Coca Cola several different demographic factors are relevant to their
market sector. Age is a factor that is relevant as the organisation has to obey
by certain laws and regulations for example by advertising to children, it is
deemed unorthodox and morally wrong. Coca Cola have stated that they will
not advertise their products to children and will not show them on children TV
channels as they contain high quantity of sugar and are unhealthy.

2. Economic Forces
Inflation increases cost of production. Consequently, Coca Cola have to face
the uncontrollable problem of increasing their pricing. With this increase they
risk losing customers who cannot afford their products because it is a desired
product not a necessity. For example, in 2002, a 2 litre bottle of coca cola was
99p whereas today a 2 litre bottle costs 1.98. Due to inflation in 11 years the
price of an identical bottle of Coca Cola has doubled in price. Alternatively,
Coca Cola could be forced to lower their prices to facilitate an increase in
consumption whilst taking a less favourable profit margin.

3. Natural Forces
Other ways that Coca Cola are responding to different natural forces is by
trying a more environmentally friendly packaging. Coca Cola say that they are
always looking at ways on how to improve their packaging and use less raw
materials when creating them. At the moment they use raw materials like
petroleum and other fossil fuels to create their plastic bottles. To reduce their

use of these fuels they have create a new PlantBottle packaging which will
bring them one step closer in creating a completely petroleum free bottle.
They aim to achieve this goal by 2020.

4. Technological Factors
Coca Cola are breaking into other markets with the help of technology. They
have a partnership with Spotify which are a music service that offers music on
demand. Coca Cola and Spotify have created a service which provides
customers with music and helps them connect with others around the world
that love the same type of music. Coca Cola have stated that they like
technological advances and that music has been a big part in their marketing
strategy. This is why they have partnered up with Spotify so they can improve
this digital on demand service and make it available to more people around
the world.

5. Political Forces
The political forces that affect Coca Cola are mostly different rules and
regulations the company needs to follow in order to not break the law. Coca
Cola promote their product as a strictly non-alcoholic beverage. Because of
this they are constantly monitored by the government and health authorities
on what they put in their drinks. Coca Cola are monitored by more than 200
governments and health authorities which also includes Muslim countries
where Coca Cola need to include a Halal stamp on their product.

Micro
6.

Suppliers
A weakness that coca cola experienced recently was that they are such an
old and well established company that their supply chain was also old and
slightly outdated compared to modern companies. Coca Cola tackled this
issue by employing CSC (a consultancy firm) to outsource a large portion of
their production to modern streamlined suppliers. This enabled a more
automated and cohesive supply chain for Coca Cola. Therefore, this shows
Coca Colas ability to use their brand success and awareness to adapt their
suppliers in order to increase their efficiency and consistency. Consequently,
Coca Cola were able to link their supply and demand more economically.

7. Marketing Intermediaries
Coca cola have a lot of intermediaries with which they work to provide their
customers with their products. Coca Cola cannot keep track of all these
intermediaries and solve all their problems. This is why they provide a special
website to help them. On this website companies that sell Coca Cola products
can go and find solutions to problems, staff training tips, new products and
ideas and many more things.
8.

Customers
Coca-Cola listens very closely to their customers in order to understand their
needs and feedback to improve the product and to create a mutual benefit

for the customers and Coca Cola themselves. However unlike most
companies Coca-Cola has a different aspect when addressing their
customers, this organisation likes to see the main targeted customers as the
international chains of retailers and restaurants. Coca Cola also have a
scheme Customer Development and Training in order to help their
customers become fully trained and how to work their businesses more
efficiently and profitable.

9. Competitors
Coca Cola competes in the non-alcoholic drink market. Their main
competitors at the moment are companies that produce products fairly similar
to theirs like Pepsi and Dr Pepper. These competitors affect how Coca Cola
operates in several different ways. They affect their price, advertisement,
sales promotion programs and many others. The main competitor that Coca
Cola has at the moment is Pepsi with their sales figures and pricing being
almost the same.

Market Expansion Grid

The product market expansion grid was specified by the Ansoffs matrix. The product market expansion
grid is used for planning by a company when the company is looking to increase the sale of its products
either by expanding product range or entering new markets. Thus, there are various strategies that the
company can develop when it compares the product with the current market.
The product market expansion grid considers two main factors- the product and the market. The
product can either be a current product or a new product. And the market can either be a current market
or a new market. Thus, a grid is made, keeping in mind the two forms of products and the two forms of
markets. This grid is the product market expansion grid. With the help of the grid, the proper market
expansion strategy is decided. To demonstrate the robustness and legitimacy of Ansoffs Matrix, it has
been applied to Coca-Cola, the most well-known trade name in the world and a company today operating

in over 200 countries; and a brand that has undertaken countless growth strategies in its 100+ year
history.

Intensive Expansion
Penetration Strategy
Market penetration strategy is decided when the product is a current product in an existing
market. It falls in quadrant 1. Thus, in such a case, the customers are aware about the product
and due to one reason or another are not using the product. There are three main tactics which a
company can implement to increase market penetration.

Market Development Strategy

The market development strategy is used when the product is an existing product but the market
is new. This strategy falls in quadrant 2 of the grid. A company might decide to increase its
territorial reach and therefore enter a new market. The new market may have tough competitors,
or it may happen that the new company may be received very positively. In either of the cases,
there are three main tactics which the company can use for market development. The market
development strategy entails finding a new group of buyers for an existing product. The launch of
Coke Zero in 2005 was a classic example of this its concept being identical to Diet Coke; the
great taste of Coca-Cola but with zero sugar and low calories. Diet Coke was launched more than
30 years ago, and whilst more females drink it every day than any other soft drink brand, it came
to light that young men shied away from it due to its consequential perception of being a womans
drink. With its shiny black can and polar opposite advertising campaigns, Coke Zero has
successfully generated a more masculine appeal.

Product Development Strategy

Product development is used when there is a new product which has to be introduced in an
existing market. It falls in quadrant 3 of the matrix. This may be done because the companies
products are not selling anymore or that the company has identified new segments which it had
missed before and wants to introduce new product to increase product sales. There are majorly
three tactics which the company can use for Product development. A prime example of this was
the launch of Cherry Coke in 1985 Coca-Colas first extension beyond its original recipe and a
strategy prompted by small-scale competitors who had identified a profitable opportunity to add
cherry-flavoured syrup to Coca-Cola and resell it. The company has since gone on to
successfully launch other flavoured variants including lime, lemon and vanilla.

Integrative Expansion
Vertical Integration :

Vertical integration appears to be a continuing trend in the business world, with Coca-Colas (NYSE:KO)
decision to acquire Coca-Cola Enterprises (NYSE:CCE) being the latest example:
Coca-Cola Co. agreed Thursday to buy the bulk of its largest bottler in a deal valued at about $12.17
billion, including debt, to gain more control of manufacturing and distribution.
Under the terms of the deal, Coke would give up its 34% stake in Coca-Cola Enterprises Inc., worth $3.4
billion, and assume $8.88 billion in debt, and all North American assets and liabilities. CCE agreed in
principle to buy Coca-Colas bottling operations in Norway and Sweden for $822 million, and acquire a
83% equity stake in its German bottling operations in the near future.CCEs shares surged 30% to $25 in
premarket trading, while Coca-Cola fell 2.6% to $53.65.With the transaction, Coca-Cola Chairman and
Chief Executive Muhtar Kent said the company was converting passive capital into active capital. He
added it would give Coca-Cola direct control over its investment in North America to accelerate
growth.CCE shareholders will get one share of a new Coca-Cola Enterprises company focused only on
European bottling and will get a one-time $10-a-share payment. The company plans to issue debt to
finance this payment and the European acquisition.Coke will control about 90% of the bottling of its
products in North America. It expects cost savings of $350 million over four years and that the acquisition
will add to earnings per share by 2012. The transactions are expected to close in the fourth quarter.

Horizontal
Diversification Strategy
Diversification is a corporate strategy to enter into a new MARKET or industry which the business is not
currently in, whilst also creating a new product for that new market. This is most risky section of the Ansoff
Matrix, as the business has no experience in the new market and does not know if the product is going to
be successful.
Coca-Cola is a carbonated soft drink.[1] It is produced by The Coca-Cola Company of Atlanta, Georgia,
and is often referred to simply as Coke (a registered trademark of The Coca-Cola Company in the United
States since March 27, 1944) The Coca-Cola Company has, on occasion, introduced other cola drinks
under the Coke brand name. The most common of these is Diet Coke, with others including Caffeine-Free
Coca-Cola, Diet Coke Caffeine-Free, Coca-Cola Cherry, Coca-Cola Zero, Coca-Cola Vanilla, and special
versions with lemon, lime, or coffee. In 2013, Coke products could be found in over 200 countries
worldwide, with consumers downing more than 1.8 billion company beverage servings each day. Based
on Inter brand's best global brand study of 2015, Coca-Cola was the world's third most valuable brand

Diversification is key in this business; there's only so much cola the world is willing to drink. With that in
mind, here's a look at a trio of influential asset buys Coke made outside of its signature fizzy product line
that have molded it into the behemoth we all know and love and will continue to shape the company.
Minute Maid (1960)
The history of Coca-Cola as a brand and company can be broken down roughly into three eras -- the
soda fountain era (beginning when Coke was first served in 1886 to 1898), the bottle era (from 1899 to
1959), and what we can call the diversification era (from 1960 to the present).
The latter began when Coke made its first non-soda buy that year. Through a stock swap it acquired the
now-familiar line of orange juice products, notable for being the first such juice available in frozen
concentrate form (making it available year-round no matter a customer's location).
From then on, Coca-Cola became a company selling more than only carbonated beverages. This was a
smart move -- these days, the firm boasts 11 non-soda brands that each take in more than $1 billion in
revenue.
Columbia Pictures (1982)
The early 1980s marked a brief era when Coke ventured far out of the beverage business to diversify.
The target asset was Columbia Pictures, a storied Hollywood movie studio. Coke made an
overwhelming bid for the company of $750 million, and just like that, it was in the film business.
The results were mixed. The studio had success with several releases (like the enduringly popular
underdog story "The Karate Kid"), but also unloaded the comedy "Ishtar" on the world. The expensive,
poorly reviewed film became one of the most notorious bombs in Hollywood history.
In spite of Columbia's wins (which also included TV hits thanks to Embassy Communications, a smallscreen production outfit it bought in 1985), it couldn't escape the hit to its finances and reputation
incurred by the $40 million loss from "Ishtar."
It was time for Coke to return to fundamentals, and in 1989 it sold the bulked-up Columbia to a much
more entertainment-oriented company, Japanese electronics giant Sony (SNE), for a fizzy $3.4 billion.
Keurig Green Mountain (2014)
Sometimes it's better to take an anchor stake -- and reach production, distribution and marketing deals
with a target company -- rather than buy it outright.
That seems to be the ambition for Coke with the Monster Beverage deal, as well as the arrangement it
reached this past February with Keurig Green Mountain (GMCR). For $1.25 billion, Coke took a 10
percent stake in Keurig (later raised to 16 percent), maker of the K-Cup beverage pod brewing
system.The two also signed a 10-year agreement to mutually develop Coke-branded offerings for the
latter's Keurig Cold at-home drink-making device.
Cold is a clear attempt by Keurig to grab some do-it-yourself-soft-drink market share from Soda Stream
(SODA), which has seen its sales grow robustly over the past few years. There's money to be made in
this market, so Coke and Keurig are making a lunge for it.
.

Your Learning

The Coca-Cola Company is undeniably one of the biggest brands in the world. It is the worlds leading
manufacturer and distributor of non-alcoholic beverages and produces over 500 brands operating in over
200 countries worldwide. This drinks company evolved from a one-man operation in Atlanta, USA, in 1886
to become a global institution. Coca-Cola itself is the best known brand drink on the planet. Blind taste
tests have shown that consumers in fact prefer the taste of Pepsi, but, paradoxically, they consistently
prefer to buy Coca-Cola. What are Coca-Colas secrets to staying on top and consistently outdoing its
arch-rival, PepsiCo?
The Get your customers awaiting your promotional activities with anticipation Where other
companies struggle always to produce new and different advertising campaigns to keep their customers
interested, Coca-Cola has capitalised on the principle of consistency in one instance to produce the
Holidays are coming! global Christmas advertising campaign. The advert was discontinued in 2001 in
favour of locally produced Christmas campaigns, but it was brought back to stay in 2007 because
consumers were actually telephoning Coca-Colas information centre to complain that it was no longer
aired. Coca Colas Christmas campaign has become so iconic that many people these days do not
consider Christmas time to have begun until the Coca Cola Christmas advert is aired on TV. Consistent
advertising campaigns over time deliver consistent brand messages, and, more importantly, they instigate
customer expectation so your customers are already thinking about your brand and engaging in
conversation about it before you have even done anything to COMMUNICATE with them. Thats savvy
MARKETING.

Make the brand experience emotional Products and services are largely indistinguishable; therefore
companies rely on customers connecting emotionally to their brand, because of the benefits it offers them
personally, in order to differentiate them from competitors and instigate their customer loyalty. What better
way to invite an emotional response than through innovative experiential marketing which is, by its very
nature, personalised? Earlier this year, 2013, Coca-Cola installed two high-tech vending machines in two
popular shopping malls in Lahore, Pakistan, and New Delhi, India. Although these cities are only 325
miles apart, years of political tension have widened the gap between them in a much more profound
sense. The vending machines invited consumers to put their differences aside, and engage in a simple
activity with a customer in the opposite city, whether this involved both customers doing a dance, or
simply both touching their hands to the interactive vending machine screen. The results of the campaign
were touching to say the least. These Small World Machines behaved as diploma
ts; vend-o-mats, if you will, actually uniting the people of Pakistan and India. Further to this, The CocaCola Company recently ran the Share a Coke campaign, where the Coca-Cola logo was replaced on
bottles with first names, thus personalising the Coca-Cola experience. People were seen in supermarkets

across the country twisting bottles of Coke to try and find their own name. Coca-Cola is not just a drink, it
unites people and brings friendship and happiness.

Dont let mistakes defeat you In 1985, The Coca-Cola Company introduced New Coke, a sweeter,
reformulation of the classic drink. The backlash was furious and Coca-Cola had made allowed its biggest
challenger, PepsiCo, to profit from its mistake. Like a sponge, PepsiCo quickly soaked up Coca-Colas
lost MARKET share, though Coca-Cola still remained the market leader. However, then senior
management actually admitted they were wrong and reintroduced the original Coke formula as CocaCola Classic. Over time, this Classic drink became the usual Coca-Cola once more, as New Coke was
phased out. Coca-Cola is so culturally iconic in the U.S. that it is what Americans are referring to when
they speak generically about soda. Of course it must be acknowledged that Coca-Cola was already a
well-established, strong brand before the New Coke incident and was therefore in a position to recover
well from the blunder, but on the flip-side, it must also be highlighted that even giants can fall. No brand is
invincible, but all mistakes can be recovered with a little bit of strategy and finesse.

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