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The Coca-Cola Company is one of the most recognized brands in the Philippines
and throughout the rest of the world. The first taste of
Coca-Cola drink is savored at Jacobs Pharmacy on
May 8, 1886, in which nine (9) drinks a day are sold
during the year. The Company Accountant, Frank
Robinson, names the famous drink Coca-Cola and
thought that the two Cs would look great in advertising. Prior to his death in 1888, Dr.
Pemberton sold fractions of Coca-Cola to heterogeneous individuals; it is sold to Atlanta
businessman, Asa G. Candler. Distribution of Coca-Cola broadens in Atlanta under Mr.
Candlers supervision. In 1894, Coca-Cola impressed Joseph Biedenharn. Mr.
Biedenharn then invested bottling machinery rear his soda fountain in Mississippi and
soon became the first to put Coca-Cola in bottles.
In 1899, three enterprising businessmen in Tennessee secured and purchased
the bottling rights from Asa Candler for just $1 and sold Coca-Cola. Benjamin Thomas,
Joseph Whitehead developed what became the Coca-Cola worldwide bottling system.
The Coca-Cola Company manufactures, allocates and markets non-alcoholic
beverage concentrates and syrups. Coca-Cola owns or licenses more than four
hundred (400) brands, including light and diet beverages, waters, juice and juice drinks,
teas, coffees, sports and energy drinks. The Company sells its finished beverage
products bearing the Coca-Cola Trademarks in more than two hundred (200) countries.
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The Vision of Coca-Cola serves as the framework for the Roaadmap and guides
every aspect of businessby, describing the 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
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In line with every principle of The Coca-Cola Company, the focus of the business
is on the needs of the consumers and franchise partners. And to get out into the market
and listen, observe and learn and possess a world view. Hence, working smart for the
Company gave the edge on what is trend, Coca-Cola remain responsive to change
while having the courage to change course when needed.
The Coca-Cola Company exists to benefit and refresh everyone it touches. For
the business, quality is more than just something that individuals can taste, see nor
measure. And it shows in the every action of the company.
Operations
Coca-Cola Company manages seven main operating divisions, it includes:
Eurasia and Africa, Europe, Latin America, North America, Asia Pacific, Bottling
Investments, and Corporate. The North America operating district generates the
majority of its revenue from the sale of finished beverages, while the other geographic
regions get most of their business from the manufacture and sale of beverage
concentrates and syrups.
Geographic Reach
The sales of The Coca-Cola Company escalated up to 55% outside the US, in
some 200 countries worldwide across Eurasia, Africa, Europe, North America, and the
Pacific Region. Important international markets include Asia, Latin America, and Europe,
which make up 30% of revenue, combined.
Sales and Marketing
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Not only is Coca-Cola one of the world's most recognizable and valuable brands,
but The Coca-Cola Company supports the largest beverage distribution system in the
world, made up of company-owned or controlled bottling and distribution operations, as
well as independently owned bottling partners, distributors, wholesalers, and retailers.
Beverages bearing trademarks owned by or licensed to them account for 1.9 billion of
the approximately 57 billion beverage servings of all types consumed worldwide every
day.
The first marketing strategy of Coca-Cola Company was performed by promoting
free samples of Coca-Cola through coupons. In 1887, the Coca-Cola Companys
coupon strategy was supported by newspaper advertising. To keep its brand foremost in
the mind of consumers, the company spent $3.5 billion on advertising in 2014, up from
roughly $3.26 billion in 2013 and 2012.
Strategy
The popularity of soft drinks, especially in developed markets, has been on the
decline since about 2005 as negative publicity about obesity and other health risks
continues to threaten sales. As a result, The Coca-Cola Company and other top soft
drink makers are turning toward other parts of their noncarbonated product portfolio for
growth, such as fruit juices, sports and energy drinks, and bottled water and tea
beverages.
A part of the plan to rely less on the old way of doing business, and compensate
for falling sales amidst changing tastes, the company is selling many of its low-margin
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The
Coca-Cola
movements pushing for the product. The hard work paid off, with the brand now listed
among the greats of the carbonated drinks pantheon.
5. Fanta
The Fanta line of drinks is the fruit carbonated
drink of the family. Fun, almost healthy, and tasty, it is
considered the second largest brand of the company
outside the United States. It is consumed about 130
million times daily all over the world.
It was said that Fanta only came into existence when Coca-Cola in Germany
found it difficult to import all of the ingredients for its usual carbonated drink products
during World War II. The head of that division then decided to make a product using
only what is available in the country at the time. The improvisation proved to be a big
hit, however, with the product spreading throughout Europe after the war, and then on to
other territories. It now has over one hundred (100) different varieties to choose from.
4. Sprite
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Sprite, the clear, refreshing drink flavored with lemon and lime, which
comes in the distinctive green bottle, corners eight per cent of the
beverage market. It was first introduced in the 1960s to combat
the increasing popularity of Pepsis 7-Up.
With excellent marketing (think Obey Your Thirst!)
and a little backdoor dealing (The Coca-Cola Company
pressured its bottlers that distribute 7-Up to replace it with Sprite), this drink finally
overtook its competitor and it has never looked back.
3. Dr. Pepper
It may be quite odd for people in some markets to
see Dr. Pepper ranking so high up in the list of Coca-Cola
Companys most popular products. However, it really does
pull in quite a lot of money for the company.
Already in existence since the late 19th century and
first introduced for the United States customers in the early 1900s, the centenarian
brand has amassed a rabid pool of loyal followers. It may be unfamiliar in some
markets, but the Dr. Pepper fans say they like the distinct flavor that no other soda can
match.
2. Diet Coke
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the
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Evolution of Coca-Cola:
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1950, Coca-Cola becmes the first product to appear on the cover of Time
Magazine.
1960, 12-ounce cans are introduced. In 1963, the Things Go Better with Coke
advertising campaign begins. On the radio, pop singes like The Supremes, Ray
Charles, and the like use their own unique music styles to swing the jingle.
In 1969, a new graphic look for the Coca-Cola system is introduced, featuring a
red-and-white color scheme and logo.
The standardized bottle of Coca Cola has elements that need to be checked whilst on
the production line to make sure that a high quality is being met. The most common
checks include ingredients, packaging and distribution. Much of the testing being taken
place is during the production process, as machines and a small team of employees
monitor progress. It is the responsibility of all of the Coca-Cola staffs to check quality
from hygiene operators to product and packaging quality. This shows that these
constant checks require staff to be on the lookout for problems and take responsibility
for this, to ensure maintained quality.
Coca-Cola uses inspection throughout its production process, especially in the
testing of the Coca-Cola formula to ensure that each product meets specific
requirements (Coca-Cola, 2011). Inspection is normally referred to as the sampling of a
product after production in order to take corrective action to maintain the quality of
products (Summers, 2009).
Coca-Cola has incorporated this method into their organizational structure as it
has the ability of eliminating mistakes and maintaining high quality standards, thus
reducing the chance of product recall. It is also easy to implement and is cost effective.
The Coca-Cola Company uses both Quality Control (QC) and Quality Assurance
(QA) throughout its production process. In QC and QA, state of the art computers check
all aspects of the production process, maintaining consistency and quality by checking
the consistency of the formula, the creation of the bottle (blowing), fill levels of each
bottle, labeling of each bottle, overall increasing the speed of production and quality
checks, which ensures that product demands are met (Muirhead, B. 2011). As
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discussed in a book of Summers, QC and QA help reduce the risk of defective products
reaching a customer; problems are found and resolved in the production process
(Summers, 2009), for example, bottles that are considered to be defective are placed in
a waiting area for inspection.
Quality Assurance also focuses on the quality of supplied goods to Coca-Cola,
for example sugar, which is supplied by Tate and Lyle. Coca-Cola informs that they have
never had a problem with their suppliers. QA also involve the training of staff ensuring
that employees understand how to operate machinery. Coca-Cola ensures that all
members of staff receive training prior to their employment, so that employees can
operate machinery efficiently. Machinery is also under constant maintenance, which
requires highly skilled engineers to fix problems, and help Coca-Cola maintain high
outputs.
Every bottle is also checked that it is at the correct fill level and has the correct
label. This is done by a computer which every bottle passes through during the
production process. Any faulty products are taken off the main production line. Should
the quality control measures find any errors, the production line is frozen up to the last
good check that was made. The Coca Cola bottling plant also checks the utilization
level of each production line using a scorecard system. This shows the percentage of
the line that is being utilized and allows managers to increase the production levels of a
line if necessary.
Coca-Cola also uses Total Quality Management (TQM), which involves the
management of quality at every level of the organization, including; suppliers,
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production, customers and the like. This allows the company to retain and/or regain
competitiveness to achieve increased customer satisfaction. Coca-Cola uses this
method to continuously improve the quality of their products. Teamwork is very
important and Coca-Cola ensures that every member of staff is involved in the
production process, meaning that each employee understands their job/roles, thus
improving morale and motivation, overall increasing productivity. Total Quality
Management (TQM) practices can also increase customer involvement as many
organizations, including Coca-Cola relish the opportunity to receive feedback and
information from their consumers. Overall, reducing waste and costs, provides CocaCola with a competitive advantage.
assessed at this high level. Other quality checks on the line include packaging and
carbonation which is monitored by an operator who notes down the values to ensure
they are meeting standards.
To test product quality further lab technicians carry out over 2000 spot checks a
day to ensure quality and consistency. This process can be prior to production or during
production which can involve taking a sample of bottles off the production line. Quality
tests include the CO2 and sugar values, micro testing, and packaging quality and cap
tightness. These tests are designed so that total quality management ideas can be put
forward. The machine performed revolutions around the products wrapping it in plastic
until the contents were secure. One initiative they adopted meant that one less
revolution was needed. This idea however, did not impact on the quality of the
packaging or the actual product therefore saving large amounts of money on packaging
costs. This change has been beneficial to the organization. Continuous improvement
can also be used to adhere to environmental and social principles which the company
has the responsibility to abide by. Continuous Improvement methods are sometimes
easy to identify but could lead to a big changes within the organization. The idea of
continuous improvement is to reveal opportunities which could change the way
something is performed. Any sources of waste, scrap or rework are potential projects
which can be improved.
The successfulness of this system can be measured by assessing the
consistency of the product quality. Coca-Cola (2011) say that Our Company's Global
Product Quality Index rating has consistently reached averages near 94 since 2007,
with a 94.3 in 2010, while our Company Global Package Quality Index has steadily
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increased since 2007 to a 92.6 rating in 2010, our highest value to date. This is an
obvious indication that the Quality System is working well throughout the organization.
This increase of the index shows that the consistency of the products is being
recognized by consumers.
Customer Satisfaction
Coca-Cola controls its customer satisfaction by having a code on the bottles it
produces. This means that if there is a fault, then that code can by entered into the
Coca-Cola database and they can find out what plant it was produced at and where it
was distributed to. This helps customer satisfaction because if there is a faulty group of
Coke bottles then they can be recalled before any other customers find problems with a
particular batch of Coke products. They also have an OTIF rating system for distributors
(OTIF stands for 'on time in full'). External customers, such as distributors can rate
Coca-Cola's delivery based on, if it was on time and the full stock was delivered. Coca
Cola also use mystery shoppers to examine the quality of the products and how
satisfied customers are with those products.
Corporate Social Responsibility
As part of the quality system, factors such as Corporate Social Responsibility are
important as many organizations have a number of roles and responsibilities that they
must adhere to, to ensure they provide high levels of quality and customer satisfaction.
Coca-Cola's responsibilities include: 'Beverage Benefits', 'Active Healthy Living',
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Strengths
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countries. It has the most extensive beverage product portfolio in the industry.
Brand Equity: The Interbrand in 2011 awarded Coca-Cola with the Highest
Brand Equity Award. With its vast global presence and unique brand identity is
definitely one of the costliest brands with the highest brand equity.
Company Valuation: The best global brand in the world in terms of value. This
variation includes the brand value, he numerous factories, and assets spread out
across the world and the complete operations cost and profit of the company.
Largest Market Share: There are only two (2) big competitors in the beverage
segment - Pepsi and Coca-Cola. Out of these two (2), Coca-Cola is the clear
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Weaknesses
Competition with Pepsi Co.: Pepsi is a thorn in the flesh for Coca-Cola. The
company would have been the clear market leader had it not been for Pepsi. The
competition in these two (2) brands is immense and Pepsi wont give up easily.
Product Diversification is Low: As manifested in the Total Quality Management
of Coca-Cola, the company lacked in branch out products. Pepsi has made a
smart move and diversified into the snacks segment with products like Lays,
Kurkure, and Coca-Cola is missing from that segment. The move of Pepsi drove
good revenue for them.
Absence in Health Beverages: Carbonated beverages are one of the major
reasons for fat intake which is a major problem affecting people nowadays, which
we all know is called Obesity. And Coca-Cola is the largest manufacturer of
carbonated beverages.
Water Management: Coca-Cola has faced flak in the past due to is water
management issues. Several groups have raised lawsuits in the name of the
company because of its vast consumption of water even in scarce regions. Thus,
water management needs to be better for Coca-Cola.
Opportunities
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product range with drinks that have low amount of sugar and calories.
Growing Beverages Consumption in Emerging Markets: Consumption of soft
drinks is still significantly growing in emerging markets where Coca-Cola could
portfolio. All this can be done more easily through acquiring other companies.
Diversification: Diversification in the health and food business will improve the
offerings of Coca cola to their customers. This will also ensure that they get
better revenue from existing customers by cross selling their products. The
supply chain which is distributing their beverages can also distribute these
mind.
Supply Chain Improvement: Supply chain can be a major cost sink hole with
the transportation costs always rising. Coca-Colas complete business is based
on transportation and distribution. There will always be possible improvements in
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this area. Thus Coca cola should keep strict watch on its Supply chain and keep
improving to bring the cost down.
Threats
production.
Competition with Pepsi Co.: Pepsi is fiercely competing with Coca Cola over
market share.
Saturated Carbonated Drinks Market: The business significantly relies on the
carbonated drinks sales, which is a threat for the Coca Cola as the market of
is an axe which can fall anytime on the head of Coca cola. If water is limited or
rationed, Coca cola can experience a major downfall in their revenue and
capacity of distribution. The same can affect its arch rival Pepsi as well.
The Coca-Cola Company has high uncertainty about the usage of raw materials,
which is used to create their products. This may not be an issue at present but
with raw material supplies becoming increasingly scarce there could be
something that would need to be considered by the company. It may not be the
finest option financially in the short term but could boost social image in the long
term.
Major Emerging Market: The Coca Cola Company has as of now immovably
settled itself in developing markets, overwhelming carbonates in most and
regularly ruling the whole soda pops market. In any case, the organization can't
lie on its shrubs as it will see expanding residential rivalry while worldwide
contenders, outstandingly PepsiCo, will be excited to take Coca-Cola
Companys piece of the overall industry. On the off chance that the organization
is to twofold in size more than 2010-2020 then BRIC development and
advancement of significant optional markets, for example, Indonesia and
Vietnam are essential.
CONCLUSION
After our research, we thought of the interesting report of truths. Coca-Cola is
probably a standout amongst the most well known refreshment organization and its item
COKE is one of most consumed cola drink. They pay billion of dollars on their ad,
advancements and recreational battle. Coca-Cola is a nearby contender of Pepsi and it
absolutely gives its opponent an intense time. Coca-Cola is a 27% shareholder in the
Pakistan market and they would prefer not to stop here! Its objective business sector is
to accomplish a much higher rate. Coca-Cola has always had a close consumer
and supplier relationship with its customers.
promotions have always and will always rock the media. We therefore conclude,
that the advertising system of Coca Cola is working for them and the item is picking up
prominence among youth step by step.
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References:
Summers, 2009
Muirhead, B (2011) Coca-Cola Enterprises Ltd. Edmonton. 'In Communication'.
February 22nd 2011
Coca-Cola Enterprises Ltd (2011) 'Corporate Responsibility and Sustainability' (online)
(Accessed on: 21st March 2011)
Guardian (2006) 'Has Coke become the new McDonald's' (online)(Accessed on 20th
March 2011)
ISO 14001 Environmental Management (2002 (Assessed 18th March 2011)
Coke Education (2009) 'Coke Education Production Video' Accessed 16th March 2011
(online) at: http://www.cokeeducation.co.uk/resources.html
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