Coca Cola Report 2.docx Edit

PESTEL ANALYSIS
1. POLITICAL FACTOR:
The political environment of a country is influenced by the political
organisations such as political parties, ideology of government or party in
power, nature and extent of bureaucracy influence of primary groups etc.
political stability in the country, foreign policy, Defence and military policy,
image of the country and its leaders in and outside the country. The political
environment of the country influences the business to a great extent.The
political scenario of Pakistan is not stable from last decades, the frequent
change in Govt. and the policies for the country are those dark factors of our
country that present the unpleasant situation for doing business. Similarly; in
Pakistan there are 10 procedures that any business has to follow before
starting a business, on the other; if we compare it with other countries like
BRAZIL & NEWZEALAND here companies have to follow only 1
procedure.
In Pakistan Taxation polices are governed by Federal board of revenue. And

tax duties for different commodities are varying to the great context. i.e food
products & automobiles. The current environment a business is also
unfavorable due to terrorist attacks. The law & order situation is also posing
threat for commercial activities.
The trend towards globalization and signing of GATT in 1993 has posed new
challenges and make the business route easy. Under this new policy,
government allowed liberalized licensing, imports and exports, inflow of
foreign capital and technology on more liberal terms.
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This is one of the helping instruments for multinationals for doing a business
in different countries.
Impact of Political Factors on Coca Cola Business in Pakistan:
Coca cola has no problem from doing business in Pakistan, because of GATT
rules; and Govt. also supporting the FDI inflow in Pakistan.
2. ECONOMIC FACTOR:
The economic factors of Pakistan like; GNP trends are not showing increase
in national income from last 3 to 4 years. The major reasons of low GNP
growth are, low productivity, high unemployment rate, high inflation, low
development budget & high defense budge, frequent increase in central
bank interest rate. Devaluation of currency and low foreign reserves are also
posing threats for the development of economy. Another major hindrance of
business activities in Pakistan is electricity shortage.
High inflation rates are also disturbing the disposable incomes of the
consumers.
Impact of economic Factors on Coca Cola Business in

Pakistan
Economic factor is major threat in external environment for coca cola;

because due to instability in economy the major problem that they are facing
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is “GETTING MAXIMUM OUTPUT WITH MINIMUM INPUT” the reason is due to
shortage of electricity and devaluation of currency they are suffering to get
economies of scale, and increase in oil prices, sales tax and inflation the
price of per unit output has been increased. The prices of per bottle in the
market have also increased.
On coca cola business; the impact from consumer side is positive because
Pakistani economy is consumption based economy, and the nature of their
products is; such for that consumers don’t have to do much planning and
saving to buy a product.
4. Social factors:
Social cultural factors include the cultural aspects and include health
consciousness, population growth rate, age distribution, career attitudes and
emphasis on safety. Trends in social factors affect the demand for a
company's products and how that company operates. This factor varies from
country to country.
The social dimension or environment of a nation determines the value

system of the society which, in turn affects the functioning of the business.
Sociological factors such as costs structure, customs and conventions,
cultural heritage, view toward wealth and income and scientific methods,
respect for seniority, mobility of labour etc. have far-reaching impact on the
business. These factors determine the work culture and mobility of labour,
work groups etc. For instance, the nature of goods and services to be
produced depends upon the demand of the people which in turn is affected
by their attitudes, customs, so as cultural values fashion etc. Socio-cultural
environment determines the code of conduct the business should follow.
In Pakistan people are very hard worker, trend of working for long hours,
high population density, joint family system, use of child labour, availability
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of unskilled labour, high youth population are the some of traits of Pakistan
socio- environment.
Impact of social Factors on Coca Cola Business in Pakistan:
As majority of Pakistani population is consist on Muslim community, so they

have to be careful for using ingredients in manufacturing process. And the
other factor that they have to follow according to their culture is advertising
messages. In Pakistan religion & culture are those factors if companies try to
go against them people treat it against the people of Pakistan. But coca cola
is strictly following these factors.
Due to high population density and trend of working long hours; cheap labor
is easily available. High youth population is an indicator/ surety for long
survival in Pakistani market.
5. Technological factors:
The business in a country is greatly influenced by the technological
development. The technology adopted by the industries determines the type
and quality of goods and services to be produced and the type and quality of
plant and equipment to be used. Technological environment influences the
business in terms of investment in technology, consistent application of
technology and the effects of technology on markets. In Pakistan,
advancements in automation and information technology have posed the
challenging situation for the organisations in future.
Impact of technical Factors on Coca Cola Business in Pakistan
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Coca cola is not facing as such tough situation from Pakistan especially in
technological environment. Actually coca cola adopt its own technical know
how, technical procedures and equipments all over the world for maximum
out put. The technical progess in Pakistan especially in IT sector would bring
positive impact on coca coal
6. Eenvironmental factors:
Environmental factors include the weather and climate change. Changes in
temperature can impact on many industries including farming, tourism and
insurance. With major climate changes occurring due to global warming and
with greater environmental awareness this external factor is becoming a
significant issue for firms to consider. The growing desire to protect the
environment is having an impact on many industries such as the travel and
transportation industries (for example, more taxes being placed on air travel
and the success of hybrid cars) and the general move towards more
environmentally friendly products and processes is affecting demand
patterns and creating business opportunities.
Waste disposal
In 2007, Coca Cola announced their inspirational goal to return to

communities and nature, an amount of water equal to what is used in the
company’s beverages and their production. Coca Cola call this water
neutrality.
The company is moving towards their goal with three objectives:
Reduce the amount of water used to produce their beverages.
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Recycle water used in the manufacturing processes so it can be returned
safely to the environment.
Replenish water in communities and nature through a global network of local

partnerships and projects.
Coca Colas vision is to advance a packaging framework in which their

packaging is no longer seen as waste, but instead as a valuable resource for
future use. To realize this zero waste vision, they have been guided by a
commitment to continuous improvement. In 2007, the company continued to
make strides by advancing packaging initiatives focused on three goals:
Reduce - To design consumer-preferred packages that use the least amount

of resources, while maintaining product quality.
Recover - To build packaging management systems to collect post-consumer

packaging.
Reuse - To use post-consumer packaging and packaging materials again to

deliver sustainable value.
The company is in the process of setting specific global targets, in

addition.The company has worked hard to advance community recycling
programs; they know that public education is a key to preventing litter. Coca
Cola system supports numerous litter prevention and community
beautification organizations around the world, including “Keep Australia
Beautiful” in Australia, the “Tidy Britain Group” in Great Britain and “Keep
America Beautiful” in the United States. In 2007, the company invested in
designing and producing sustainable fashion apparel made from recycled
PET bottles. The T-shirts are made from a blend of recycled PET bottles and
cotton and feature playful slogans such as “Make Your Plastic Fantastic” and
“Rehash Your Trash.” Coca Cola launched their sustainable fashion line of
apparel and consumer products at the new World of Coca-Cola in Atlanta,
Georgia.
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7. Legal factors:
These are related to the legal environment in which firms operate. In recent
years in UK there have been many significant legal changes that have
affected organizations behaviour. The introduction of age discrimination and
disability discrimination legislation, an increase in the minimum wage and
greater requirements for firms to recycle are examples of relatively recent
laws that affect an organization’s actions. Legal changes can affect a firm's
costs (e.g. if new systems and procedures have to be developed) and
demand (e.g. if the law affects the likelihood of customers buying the good
or using the service).
Marketing decisions are strongly affected by developments in the political

and legal environment. This environment is composed of laws, government
agencies and pressure groups that influence and limit various organizations
and individuals. Sometimes these laws also create new opportunities for
business. Here are some of the legal affairs that the Coca Cola Company had
to face recently.
Competition law:
In the 1970's, India required Coca-Cola to share its secret formula with the
local subsidiary so as to continue doing business there. Coca-Cola refused
and halted operations in India for almost 16years.
Health & Safety:

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The European Commission has alerted EU member countries to ban Coca
Cola drinks because of recent poisoning of 100 children in Belgium and
cause seems to be the wrong carbon dioxide which was used in Coca-Cola
soft drinks. Recently there were demonstrations all around the India,
protestors demanded Coca Cola to stop production. Demonstrators believe
that Coca Cola is depleting groundwater. In India, there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola. In 2003, the Centre for Science and
Environment (CSE), a non- governmental organization in New Delhi said
Coca-Cola contained toxins including lindane, DDT, Malathion and
chlorpyrifos - pesticides that can contribute to cancer and a breakdown of
the immune system. Recently 1,500 villagers in the Varanasi region
demonstrated against Coke for extracting so much water from the ground to
make Dasani, Coke’s bottled water, that it was causing water shortages. In
the Indian state of Kerala, sale and production of Coca-Cola, along with other
soft drinks, was initially banned, before the High Court in Kerala overturned
the ban ruling that only the federal government can ban food product.
Drivers of Change
1. Growing use of internet and internet application:
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Growing use of internet and internet application has not as much direct
impact on soft drink industry because their business is related to
manufacturing and provision of physical products. Indirectly internet
application has positive impact on soft drink industry. Like in supply chain
management activities internet dramatically help to enhance these
activities, building customer relationships and fulfilling their (B2B, b2c)
orders with limited time period also boost up the efficiency of soft drink
industry.
RANKING OF THIS DRIVER ON SOFT DRINK INDUSTRY:
We would prefer To rank this driver as +3 because this driver help this
industry in supply chain management to some extend but has no direct
impact on its business application.
ASSESSING THE IMPACT OF DRIVERS OF CHANGE:
Are the driving forces causing demand for industry product increase
or decrease?
This driver is not increasing the demand of our company products because
the nature of product is related to thrust quenching, and demand of its
products is already there. So internet application didn’t impact on the
demand of soft drink industry products.
Are the driving forces acting to make competition, more or less

intense?
Yes the internet applications are making the competition intense to some
extent in soft drink industry. The one of example is internet advertising. But
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growing trend of e-commerce is also increasing the competition for soft drink
industry.
Will driving forces lead to higher or lower industry profitability?
Internet application can lead to industry higher or lower profitability, because

as explained earlier that internet applications are helping out soft drink
industry in supply chain activities; so if a company is not adopting the
internet application its supply may be not got the efficiency rate as compare
to those that adopt the internet applications. And supply on the time, at right
place is the main emphasis of this industry.
2.Increasing globalization of industry:
The soft drinks industry was one of the earliest to be globalized. For years,
three multinational companies - Coca-Cola, PepsiCo and Cadbury-Schweppes
- have dominated the global market for soft drinks. Coca-Cola has been sold
overseas for about a century, and its main competitors have been expanding
abroad for decades. Together, the big three have controlled about 80
percent of the global market for many years. In some countries, their
presence is overwhelming. In Chile, for example, two of the main bottlers of
soft drinks are affiliated with Coke and the third with Pepsi. In India, Coke
bought up the biggest local brands in the 1990s and now has a million retail
outlets, according to a case study by the Institute of Chartered Financial
Analysts of India's Center for Management Research; Developing countries
often welcome the investment that the big three bring. The outsourcing,
franchising & licensing culture aid the globalization of soft drink industry.
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We would prefer to rank this driver for soft drink industry as +5. This driver
helps soft drink industry to expand their businesses allover the world. They
are earning immense revenue from global market.
Is the driving forces causing demand for industry product increase

or decrease?
Yes this driver is causing the demand for industry products increase because
the soft drink industry targets the global consumer with low price, with the
help of low cost advantages that these big giants have. So having reasonable
prices of products consumer demand is present.
Is the force acting to make competition, more or less intense?
Yes! This is major driver that is acting to intensify the competition among the
soft drink industry player. Because of global firms entrance in any global
market the rivalry among the local and global companies increased. The best
example in Pakistan is Amrat, which have intense competition with coca cola
& Pepsi.
This driver has increased the industry profitability. Because due to

Globalization the coverage & size of market has increased to great extent;
huge size of markets and customer demand help the soft drink companies to
generate huge profits.
3.Change in long term industry growth rate:
The changes in market & economic condition have impact on the business of
soft drink industry; because the whole business effectiveness of this industry
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depends on economies of scales. Companies able to achieve economies of
scale when economic conditions are favorable. But In the wake of the current
economic crisis, with inflation at a peak, huge price rises, redundancies,
political instability in terms of terrorist activities and the weakening of the
rupee against the US dollar and other currencies, over the forecast period
the industry is not likely to enjoy tremendous support from consumers. Yet,
manufacturers must see the positive side of the picture and be ready to tap
into any potential opportunities even in today’s difficult climate. Despite
these hard times, the soft drinks market is set to witness increasing
consumption across all age and income groups, and will post a total volume
CAGR of 3% over the forecast period.
The ranking of this driver for soft drink industry could be +1 because this
factor has no as much impact on soft drink industry.
or decrease?
Not directly. Because the prices of soft drink are not much high that
consumer would change their buying decision. It has not as much impact on
demand of industry products,
Are the forces acting to make competition, more or less intense?
Not as much!
Yes! The driving forces could lead to the lower or higher profitability because
the growth rate that industry achieved over the time and trying to improve is
just to increase the profitability.
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5.Change in who buys the products and how they
use it?
This driver is related to the change in customer’s usage and buying habits.
The change in buying habits about soft drink is “issues of health using soft
drink” not probably in Pakistan but mostly in European countries people are
health conscious and some of our health critics are also emphasizing that
people should not regularly take soft drink it would create this and this
health problems …… and with an increase in awareness level people are
shifted towards fresh juices and other carbohydrate drinks.
Reason to buy soft drinks:
It's Very Tasty!
It's Everywhere!
Convenience, "Grab-n-Go"!
Promotion and Advertising
Soda Habit
It Is Cheap
Thirst
Caffeine Addiction
16 Reasons To Stop Drinking Soda
Soda Is Useless.
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Weight Gain & Obesity
Diabetes
Weakened Bones And Risk Of Osteoporosis
Dental Caries and Erosion
Kidney Damage
Increased Blood Pressure
Likely To Cause Heartburn
Metabolic Syndrome Risk Factor
Harmful Effects on Liver
Impaired Digestive System
Dehydration
High Caffeine Content
Toxins – Aspartame
Possible Cell Damage Ability
There Are So Many Healthy Alternatives
The ranking that could be suggested for this driver is +1 because no doubt
health concerned companies are emphasizing a lot on disadvantages’ of soft
drink but in half of the world people don’t have knowledge that I can harm
full for health if take it in aggressive quantity or if they even know they don’t
care about it.
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or decrease?
No! Not too much. Because this factor has no as such intensity right now to
effect the buying habits of customers.
No not as much! This issue is for whole industry not only for 1 firm that’s
why.
Not necessarily! This factor is still weaker in this industry. It would takes a
time to 100% prove that soft drink is very harmful for health; and the other
issue is addiction of soft drink. It makes the people addict who are regular
user that’s why many of them don’t care about the health harm full issues of
soft drinks.
5. Product innovation:
Innovation capabilities in product improvement also expand the business

portfolio of soft drink companies. They start their business from simple non
alcoholic soft drink with the passage of time they introduce different flavors
of soft drink, also introduced; energy drinks, sports drink, mineral water,
juices and tea & coffee.
Coca Cola’s dozens of soft drink brands provide flavor and refreshment in a
variety of choices. From the original Coca-Cola to most recent introductions,
soft drinks from The Coca-Cola Company are both icons and innovators in the
beverage industry.
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Coca Cola’s brands also include milk products, soup, and more so you can
choose a Coca Cola Company product anytime, anywhere for nutrition,
refreshment or other needs.
Product innovation is the major driver for soft drink industry because for long
term sustainability and to fulfill the consumer demand according to their
choices product innovation is the tool that helps the companies in this
regard.
We would prefer to rank product innovation driver as a +4 for soft drink

industry because this is a tool that changed the soft drink industry to
beverage industry.
1. Are the driving forces causing demand for industry product

increase or decrease?
Yes! This driver has great impact on the demand of industry products
because with availability of various flavors of consumer’s choice and variety
of brands and flavors in each category of beverage industry increased the
demand of industry products.
2.Are the forces acting to make competition, more or less intense?
Yes! This driver has vital role in increasing the competition among rivals of
soft drink industry. Because of new flavors and new brand war the
competition is so intense even PepsiCo introduced its snacks as well with the
brand name of Lays.
3. Will driving forces lead to higher or lower industry profitability?
The driver of product innovation can lead to lower or higher profitability of

industry firms, because as I have explained earlier that with product
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innovation the consumers choices increased to the great extents now you
don’t have only soft drink you have hundred of other products and flavors to
quench your thrust. I.e. if you want to quench your thrust you have; juices,
water, tea, coffee, soft drinks, sports drinks, energy drinks. So if a company
is not following an industry trends it wouldn’t be able to capture as much
market share as it want to. Now the competition is very intense and
consumer choices are also increasing day by day. So product innovation is a
strength that can insure the sustainability of any soft drink company.
7. Technological change:
There various technical changes that boost up the demand and production of
soft drink industry. The first change is internet and television technology
which use special effects for advertising through media. They make some
products look attractive. This help in selling the products. This technology
helps to attract the customers in selling the products.
Introduction of cans and plastic bottle also increased the sale for coca cola
as these are easier to carry and bin once you used them.
As the technology is getting advanced there is a introduction of new

machineries for production all the time. With the introduction of these
machines the production of soft drink industry increased tremendously then
it was few years ago.
CCE is a company in England that produces cans for coca cola drinks; they
have state of the technology for soft drink industry they produces a cans
faster than bullets from the gun machine.
The greatest achievement of Coca Cola Company is environment friendly

glass bottle launching that also won the award of light weight.
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Technological innovations ranking for soft drink industry could be +5,

because only having an idea that I would sell this product is not enough;
technology is the only factor that aids the companies point of production till
point of consumption. Most sophisticated technology of the company insures
the future sustainability of a company.

Yes! This driver helps to boost the demand of soft drink industry products.
The reason is advancement in ads production quality, internet and media.
2. Are the forces acting to make competition, more or less intense?
Yes this driver intensifies the competition among the rivals of soft drink
industry; the one of example is advertising and price war among Pepsi and
coca cola.
Yes this driver is most very important in context of industry growth the
technological advancement changed the scenario of soft drink industry from
production capacity to sale of product to end consumer.
8. Marketing innovation:
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Marketing innovation changed the whole scenario of soft drink industry
because if it is said that marketing innovation contributed 90% for the
success of soft drink industry it couldn’t be false. Its one of the example is
value of coca cola brand. The value of only its brand mane is 120 billion us $
and the value of coca cola company except brand is only 50 billion us $. This
shows that how important the marketing innovations are and how these are
contributing towards the success of soft drink industry?
Marketing
Effects of Innovation
Area
Creates new ways to conduct research including more

Marketing
sophisticated methods for monitoring and tracking customer
Research
behavior and analyzing data.
Allows for extreme target marketing where marketing-to-person

Targeting is replacing mass marketing. For customer service, technology
Markets makes it easier to manage relationships and allows for rapid
response to customer’s needs.
Creates new digital products/services. Incorporation of innovation

Product into existing product/service enhances value by offering
improved quality, features & reliability at a lower price.
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Promotion
New techniques allow better matching of promotion to customer

activity and individualized promotion. Makes it easier for sellers
to offer product suggestions and promotional tie-ins.
Creates new channels for distribution and transaction (e.g.,

electronic commerce) that include making it easier for buyers to
Distribution
place orders. Allows more control over inventory management
and closer monitoring of product shipment
Pricing Enables the use of dynamic pricing methods.
Many of the benefits shown above are driven by the evolution of the Internet.
The Internet is transforming how all functional areas of an organization
perform work. However, it can be argued that no functional area has been
more affected than marketing. Over the next decade it is expected that the
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Internet’s effect on marketing will continue to grow and marketers are well
served to embrace this.
The new ways of marketing a products has dramatically bring a change not
only in soft drink industry but also all type of industry because in this era;
products and customer choices are more but customers are few: it depends
on the company that how they are differentiating their products and how
they are positioning & convincing their customers that why should they
purchase their products? Marketing let them all the tools; that how they
should add value in their products and services?
Marketing is all about adding value in your products & services!
The ranking of marketing innovation for soft drink industry would be +5;
because this is the tool that soft drink companies used to get power and
snatched the market share from their rivals.

Yes! Marketing tools are now used to boost up the demand the best
examples are: price cut down, discounts, launching new flavors according to
customer’s choices. Showing POD on TV ads to convincing their customers to
buy their products.
2.Are the forces acting to make competition, more or less intense?
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Yes! Marketing innovation drastically increased the competition among the
rivals firms. The one of change is rationalization of media. Means now it is
media war among companies they want to show themselves better & best
the media contributed in this war a lot.
Yes! This factor can lead to higher or lower industry profitability, because
the nature of their product is that: they have to be connected with their
customer’s keep them updated, show them change, bring some thing new &
innovative to retain them. This is possible through marketing innovation that
why factor is can increase or decrease the industry profitability.
8. Entry or exit of major firms:
As the risk rate goes down in soft drink industry and Govt. regulations also
supporting businesses after WTO agreement. The major change that
happens fir coca cola specifically in Pakistan is entrance of local competitor
in soft drink industry. AMRAT, MAKAH COLA, APNA COLA, SHEZAAN IN
JUICES, NESTLE IN WATER, IN COFFEE NESTLE. The local competitor hit the
coca cola business very strongly.
The ranking of this driver can be +3 because it brings a change for soft drink
firms businesses.
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The more firms enter in the market the demand of products for a specific
company product wouldn’t necessary that it would increases as much
intensity. As more firms enter in the market the demand also disperse on a
number of suppliers.
2. Are the forces acting to make competition, more or less intense?
Yes! This factor highly actively creates competition among the rivals because
as firms enter in the market the completion become intense or vise versa.
Yes! It affects the industry profitability, because the entrance & exit of firms
impact on the market share of other rivals that’s why.
9. Diffusion of technical knows how:
Diffusion of technical know how from high concentration to low concentration
Countries bring a fruitful changes for the under develop countries. We

discussed about the soft drink industry, one of reason of their success is
technical know how diffusion to the foreign countries. In soft drink industry
the major players are coca cola and Pepsi both are not multinational but are
global companies. These are transferring technical know how to other
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countries through patents and licensing. This driver enables the soft drink
companies to expand their businesses all over the world through franchising,
licensing and patent rights. The technical know how also boost up the
economic development of a host company; because mostly multinational
companies deploy such technologies that enhance the personal growth of
workers and also increase the production level of companies through which
other industries also try to deploy the same technologies if that relate to
their business.
The diffusion of technical knows how ranking for soft drink industry could be
+2, because this driver helps the soft drink companies in technology
transferring.
or decrease?
This factor has no as such impact on demand of product, because it is

related to the securing production of the soft drink industry. Any how in an
other angle this factor can lead towards the increase in demand because the
new technology deploy in the industry the new ways of selling a products are
also introduced by the companies
No! not as much.
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Yes! This factor can lead to higher or lower profitability because as the
companies deploy a new knowledge of production and new machineries the
cost of production goes down this help them to reduce the cost, achieve
economies of scale, and charge low price.
10. Growing preferences for differentiated

products:
The consumer’s preferences for products are increased at a large scale, the
one of the reason behind growing preference is advancement in media &
internet and other one is marketing practices that led the base for different
flavors of a single product and also create a desire for these products. This
driver has a great impact on soft drink industry. Companies started
providing different flavors according to the need & desire of their customers.
What benefit they got from this driver? They customized themselves and
showed that how concerned we are about our customers requirements. They
also capture the maximum market share from offering different flavors, and
products. Like coca cola 3G, diet cola, etc
The ranking of this driver for soft drink industry could b +3, because due this
factor the consumer choices increased to the great extent.
or decrease?
The trend of different customer choices enforcing consumers to buy a

product what they want to intake what ever flavor they like is there. So in
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this way I think so this driver is causing increase in demand of soft drink
products.
The availability of lot of products and brand of a single company increase the
competition among rivals that they should also increase their product depth
& breadth.
Yes! The driving forces can lower and higher the industry profitability,
because they main purpose of adopting this driver is to fulfill the customer
requirement according to their need & want if they provide them accordingly
than they will get higher profits other wise vise versa.
11. Changes in cost & efficiency:
The cost of production is changed & efficiency of out put produce also has
been increased in a recent era; the major players are E-commerce, internet,
advanced production machineries. Due to low cost of production companies
become able to
Achieve economies of scale and got effectiveness in their business

operations. This insures their higher profits.
The ranking of this driver for soft drink industry could be +3, because this
driver bring change over the time; due to low business risk & failure the
production level increased , companies achieve economies of scale and by
learning & experience improve their efficiency.
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or decrease?
Yes! The one of reason of demand of soft drink is low price. And charging low
price is only possible through low cost & efficiency.
Companies war in soft drink industry is on low price in Pakistan, because

people are price conscious not health conscious; that’s why every one is
trying to reduce the price to capture the more share from the market.
Yes! This driver can influence the profitability of soft drink industry. As the
prices has direct impact on higher or lower profit similarly in soft drink
industry prices are psychological phenomena that companies should
carefully handle to maintain their profits.
12.Reduction in uncertainty and business risk:
Soft drink industry was established a century ago now it has covered all most
every corner of world with totally customized strategy. Soft drink industry
was the first one that started the foundation of global business. The
business risk and uncertainty totally reduced in this industry products
because these products are highly acceptable by the customer that’s why.
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The rank for this driver for soft drink industry could be +3, because this
factor promotes the business of soft drink industry.
or decrease?
This factor has no as such demand increase or decrease concern; because

this factor actually promote the business on the basis of which new rivals
came in the market because of low business risk & failure or customers
demand.
Yes! This factor increased the competition among soft drink firms because of
flexible business terms and low risk rate.
Yes! To some extent this driver has effect on the profitability of industry
because as more rivals enter in the market the market share would be
divided and the profit margin of the firms also goes down. But on the other
hand lower risk rate can also lead to more profits for the existing firms
13. Regulatory influences & Govt. policy changes:
Regulatory influences & Govt. policy changes have great impact on soft drink
industry. In the United States and elsewhere, legislators, health experts and
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consumer advocates are considering levying higher taxes on the sale of soft
drinks and other sweetened beverages to help curb the epidemic of obesity
among consumers, and its harmful impact on overall health. Higher taxes
could help reduce soda consumption. Taxes could also fund education to
increase consumer awareness of the unhealthy effects of excessive soft
drink consumption, and also help cover costs of caring for conditions
resulting from overconsumption.
The ranking of this driver on soft drink industry would be suggested as +2

because in current situation this driver does not brought much change.
or decrease?
This driver may reduce the demand of soft drinks in coming years because
consumers are more conscious about health than before. So soft drink
industry also has other options like juices etc for their health conscious
consumers. What ever the issues they have related to consumer health care
the demand of this industry product would be there because they have
captured the world in such a way that they positioned their products as a
necessity and customer can’t get rid off them
Not much. But regulatory authorities are forcing them to be more

environmental and consumer friendly this a challenging factor for this
industry.
29
Not yet! But in coming years if soft drink companies do not take any action
to remove their health related issues may their profits go down.
14. Changing societal concerns, attitudes and life

style:
Societal concerns, attitudes and life style mostly bring these changes fashion
industries, cosmetics and new ways of architecture of housing societies also
tremendously changed the way of living and buying habits of people. People
become more health conscious and hygienic concerned. This factor soft drink
companies should recognize that in incoming years they should more secure
themselves from any hygienic issue; that in current era most of the soft drink
companies are facing in Europe. Like tooth decay and stomach problems
issues that these drinks have.
or decrease?
This driver has not as much impact on the demand of industry products
because this factor has no direct link. It wouldn’t bring any negative impact
on demand of soft drink industry because this industry having lot of product
categories that are almost catering each every customer group in different
regions of world.
30
No! Not exactly
This driver also has no impact on industry profitability, because this driver
has no implication right now on soft drink industry.
summary of drivers of change on soft drink

industry
ranki
No. name of drivers ng
1. growing use of internet 0.03
2. increasing globalization 0.05
0.01
3. long tem change in industry growth 0.01
4. change in buys the products
5. product innovation
6. technological change
7. marketing innovation
8. entry or exit of firms
9. diffusion of technical know how
10.growing preferences for differentiated
products
11.change in cost & efficiency
12.reduction in uncertainty & business risk
13.regulatory influences & Govt. policy
14.Changing societal concerns. Attitude.
Life style
0.04
0.05
31
0.05
0.03
0.02
0.03
0.03
0.03
0.02
-0.01
count 39/70
Next 5 years of soft drink industry:
In coming 5 years the scenario of soft drink industry might be totally

changed as the trends of e-commerce are growing. Our predictions about
soft drink industry for next 5 years are that might be in coming era most of
the operation would be done through online. No doubt soft drink industry is
performing well but the health issue is could be very alarming they should
emphasis on this issue before people’s attitude has been changed. They
should do research and bring such solution that should not harm the health
of human beings.
Key Success Factor
1.Technology Related KSF:
Coca-Cola has been a leader in non-alcoholic beverage industry and has

dominated that market over the past century. But due to globalization, the
beverage market has become more volatile, where fickle customers
32
constantly switch drinks. Global beverage market is also getting fragmented
at a faster pace with new products being introduced by the emerging
companies. These companies are creating niche products and are chipping
away Coke’s market share. To preserve its leadership position, Coke needs
to constantly innovate and introduce new products at a faster rate than its
competitors. It has to understand the emerging taste and adapt to that on a
global scale. Most importantly, it has to do all this without tarnishing its
brand.
Obliviously, Coke is planning on using existing IT technology to collaborate–

among employees, with bottlers, with consumers—and considers it as vital to
remaking its business to chase fragmented and fast-moving global markets.
IT initiatives is going to play a make-or-break role according to Information
Week article “Coke Exploits Collaboration Technology To Keep Brand
Relevant”
a.For internal collaboration
Coke has implemented what it calls its Common Innovation Framework, a

system that combines project management and business intelligence (BI)
capabilities to give operating units in 50 countries the ability to search for
and reapply concepts used in developing and marketing beverages produced
by Coke. Common Innovation Framework provides a global view into the
product pipeline, which lets, for example, one business unit mine for product
ideas by searching beverage or brand concepts that worked well in other
countries. The Innovation Framework also helps Coke recognize duplicate
product ideas and helps the company to combine efforts.
As for working with its extended family of bottlers, Coke is using SAP’s ERP
software, delivered via Coke’s IBM hosted data centers to standardize
business platform and streamline its supply chain. Improved communication
and collaboration between Coke and its bottlers will enable Coke to smooth
33
peaks and valleys in its demand forecasting. The rising costs of raw materials
only make that close collaboration more important.
Coke’s trying to cozy up to the kids through its www.mycokerewards.com

Web site, which has 40 offshoot sites worldwide geared toward specific
interests. The result is a social network built around Coke’s loyalty program
that pulls people in by tapping their tastes in sports, music, and
entertainment.
Coca-Cola’s investment in the collaboration IT software will help it in

achieving two aspects of its marketing strategy.
b.Market Dominance Strategy:
With the first and third approach, Coke will be able to continue its Market
Dominance Strategy. These approaches will enable and strengthen Coke’s as
a leader in non-alcoholic product. By keeping track on its effort to bring out
new innovative product, Coke can streamline innovation and keep its
competitors at bay. Collaboration with the customers will also enable it to
exploit creative skills of its ‘presumes’ who are willing to provide ideas for its
product innovation. It can deepen the relation with it ever growing global
consumers and enable Coke to continue to strengthen its brand.
c.Defensive Strategy:
With the second approach mentioned above Coke will be able to create a
good defensive strategy. Streamlining Supply Chain should allow Coke to
continue to invest and strengthen its wide global distribution network thus
increasing its market penetration. That should enable Coke to protect it turf
before any potential competitive threats.
One thing to watch for is that Coke’s product proliferation (introducing

multiple SKUs to target every fragmentation in market segment share) may
34
undercut the ‘Coco-Cola’ brand’s halo effect. Collaboration technology or
Enterprise Application may not be able to solve that problem.
2. Manufacturing Related KSF:
There is lot of Manufacturing related key success factor of coke which are as:
Quality Control:
If we talk about the coke quality control then we say that coke made in all
over the country under the license through which the consumer sees the
consistency in coke taste due to this factor coke make it position good in
market and capture a high market share.
Low Cost Product Design:
In this case we say that the cost is no matter for product design because if
we talk about the product of coke that is beverages and all beverages of
coke will be make under a license and on the other side if we talk about the
bottle design of regular coke, so in case of bottle design, coke patent there
bottle design and no competitor of coke make the regular bottle of coke
design.
Customized Product:
Coke makes no customized products; all the product of coke will be

standardized.
3. Distribution Related KSF

35
Strong Direct Sale:
Coke has no strong direct sale
Strong Dealer Networks:
Coke has a strong dealer network due to this you will easily find coke
in every place of the country.
4. Marketing Related KSF:
Marketing KSF describes the knowledge and skills which Marketing staff need
to apply in their work in order to deliver quality services. It provides a single,
consistent, comprehensive and explicit framework on which review and
development of all staff is based.
All the top ranked of current era companies get their position due their
superior KSF e.g. if we discuss PEPSI then we come to know that their ads
are best because they hired BBDO which is world’s best advertising agency.
Same like this 3M is another world best company which is re known of its
innovation the logic behind is that company give almost 50% freely thinking
time to their employees and in return company invent new products almost
every month.
As concerned to COCA COLA it is also a key point of their # 1 rank because

they knowledge and skills about their product is very good and differentiate
to their competitors. Their products are benchmark for beverage industry
and this is only sue to their knowledge which is superior to others.
Fast Accurate Technical Assistance
In the marketing related KSF many factors play role one of them is Fast
Accurate Technical Assistance; it means that they flow of information in the
36
organization need quick speed which is only held with the help of
Technology.
If we see the marketing reports then we come to know that the leader of
industries have unique technology and due to their fast speed or quick
response they tackle the market. An excellent example of this is STANDAARD
CHARTED Bank in Pakistan; the customer can withdraw its money through
cheque from any branch in Pakistan with in 5 minutes which is only possible
due to their competitive technology.
Same like this COKE COLA have unique ISI system which gives information of
any sales made by their distributor within 10 minutes and after this company
maintain next stock for that distributor and so on company made new
products by analysing demand and supply.
But on the other side Coke have a Disadvantage as their product nature is
FMCG and their sellers need CHILLER to cool the product but company give it
to after 1-2 months as requested by seller. The reason is that for their
documentation till now there is old communication process.
Customer services
Customer services are the major key success factor of any organization
specially for those organization where employees have direct relation with
customer such as BANK, shopping marts etc. If we observe WALL-Mart then
we come to know that they have unique polices regarding their customer
such as
Customer is always right
Customer is always right if he will ever wrong please read the rule #
1.
Many other companies got top position due to proper customer services.
Singapore airline is world best airline due to their superior services they give
37
them GIVENCHY’s product during their journey which is a prestige Fashion
Brand.
In 1985 when Pepsi beat Coke in the battle of taste then NEW COKE come in
market but after customer demand Coke re launch its old version and due to
this they again catch the market shares.
Not only this in order to facilitate their customers coke sign contract with MC
DONALND which the world’s biggest fast food chain and in this regard
customers of coke get their desired product with ease at any time in any
place.
Accurate Fulfilling Of Buyer Orders
Same as above
6. SKILL AND CAPABILITY RELATED KSF:
1 - PRODUCT INNOVATION:
Coca Cola is a company with rich history and tradition that has build
an iconic brand. The company prides itself with being a leading innovator in
the soft drinks industry and being able to turn customer demands to
products. Being in step with customer trends and being able to anticipate
what lies ahead as well as marketing innovation has always been a hallmark
of The Coca Cola Company, helping the brand evolve with time and keep in
step with consumers’ changing lifestyles.
In 2006, Coca Cola introduced another innovative product – the Coca

Cola Zero (Coke Zero). Cokes zero is now a part of the Coca Cola core family
with Classic Coke and Diet Coke. Complementing these and meeting
consumers’ desire for new ways to enjoy the great taste of Coke, the
38
company also introduced brand extensions such as Coke with Citrus Zest and
Diet Coke with Cherry.
Selected Product Innovations
In this section, I will discuss some product innovations that Coca Cola
introduced.
1. No-Calorie Drink (Coke Zero) – the introduction of Coke Zero was

motivated by the increasing consumer demands for healthier products.
Consumers are increasingly seeking more choices and order to keep up with
the demands of the consumers and their lifestyles, Coca Cola launched Coke
Zero. Coke Zero offers the same taste as Coca-Cola with no calories.
2. Calorie Burning Tea (Enviga) – as part of the company’s commitment to

keep up with the changing lifestyles of the consumers, Coca Cola introduced
a calorie-burning tea named Enviga in 2006. This product is intended to
complement healthy lifestyles. By drinking three cans of Enviga each day,
consumers can burn an extra 60-100 calories daily. This innovative product
is added with a powerful antioxidant EGCG that speeds up metabolism and
increase energy use, especially when combined with caffeine.
2 - DESIGN RELATED
Coca cola is a part of the beverages industry. The product that coca cola
produces does not need much design changes regularly. The drink is packed
in the bottles. These bottles are made of glass and plastic. Design cannot
affect the business of coca cola as far as key success factor is concerned.
This point does not suit much as far as coca cola is concerned.
3 - STRONG E-COMMERCE
As far as the industry is concerned many of the companies use business 2

business e commerce system. Following are some of the examples of
companies who have strong e commerce capabilities:
39
B2bwine.com
Bevaccess.com
Beverage online
Beverageindustry.org
Ecfood.com
Transora.com
Winery exchange
Wineshoper.com
Worldwinetrade.com
When we come to the coca cola company, it does have strong capabilities
but it does not use e commerce to much extent. There is a lot of information
available on coca cola website about the products but it has a network of
simple commerce type. The products are made available to consumers
through normal commerce channels.i.e through distributors.
7. OTHER TYPES OF KSF:
1 - OVERALL LOW COSTS
Coca cola is a giant in the beverages industry and is always active to cut
down its overall costs to increase the profits. Coca cola reduces its cost by
only producing the soda needed to produce the final product; the distributors
of coke finish the rest of the product. This results in reduced costs for coca
cola. Coca cola uses latest technology for producing the products. It is also
40
planning to produce the bottles itself. This would also encourage the profits
for coca cola in future.
2 - CONVENIENT LOCATION
Coca cola is a global company and is doing business in more than 200
countries worldwide. The products of coca cola are most conveniently
available to consumers worldwide. This is a very big key success factors for
coca cola.
3 - AFTER SALES SERVICES AND REPAIRS
This point of key success factors does not suit to beverages industry as the
goods are mostly perishable and cannot be repaired.
4 - ACCESS TO FINANCIAL CAPITAL
Coca cola is a giant as far as access to financial capital is concerned. The

company is a billion dollar company. The strength of the company is so much
that it can purchase everything i.e. it can acquire any company easily
because of strong financial capital. This is a huge success factor of coca cola.
41
COMPETITIVE PRESSURE FROM SUBSTITUTE
PRODUCTS
COMPETITIVE PRESSURE FROM SUBSTITUTE PRODUCT IS

WEAKER WHEN:
1-Good substitute are not easily available or don’t exist:

This point is not applicable on coca cola products; because the substitutes of
coca cola products are easily available. Like Pepsi, AMRAT, GOURMET,
MUREE BEVEREE, in juices nestle, shezan and tops are major competitor of
coca cola products. So in this case the competitive pressure from substitute
products would be high.
2- Substitutes are highly priced relative to preference

they deliver:
The prices of coca cola products are not very high are almost same relative
to the rivals prices. The value they are giving and the prices that they are
charging are acceptable & justifiable. So in this case the pressure from
competitive products could be weaker.
42
3- High switching cost:
The difference between the prices of cola, juices and other drinks is not very
high, so customer can easily switch from one brand to other and from one
flavor to other. In this case the switching cost is low so that’s why the
competitive pressure from substitute’s products would be higher.
Signs that competition from substitutes’ is strong:
4- Sales of substitute are growing faster than sales of

industry being analyzed:
The market of soft drink industry is matured now and many local and
international companies enter in to this business. Now there is no single such
a unique product in whole soft drink industry that is new for the customers.
So mostly customers take soft drink as a regular intake; the demand is there
and it is not far more than anticipation so for coca cola competition from
substitute is low.
5-producers of substitute are moving to add new capacity:

The major global competitor of coca cola is PEPSI, adding new product
category with snacks (lays, cheetooz) . along with other beverage products.
In this case coca cola’s only focused on beverage may lower its profits as
compare to PEPSI. So coca cola should search an opportunity in competition
with other rival it can serve better to secure the future share.
6-profits of producers of substitutes are on risk.

The substitutes of coca cola are earning a hand some revenue from the
market that’s why they have strong threat from their competitor.
Competitive pressure stemming from

supplier bargaining power!
43
7-whether the term being supplied is a commodity that is readily
available from many suppliers at going market price?
This is a strong competitive edge of coca cola that they owned their
suppliers like bottler, and distribution chain. Both upstream and down stream
suppliers are in their hand so that’s why don’t have high pressure from
supplier bargaining power.
8- Whether few large suppliers are primary source of a particular

item?
They are supplier of their on products so that’s why this is not applicable on
coca cola
9- When it is difficult or costly to switch to other suppliers?
It would be difficult for them if they changed their bottling techniques from
glass to other it would be costly and hard for them to switch immediately.
10- Whether certain needed inputs are in short supply?
No! The needed material for coca cola manufacturing is easily available,
because they are pioneer in this in industry.
11-Whether certain suppliers provide equipments and services that

deliver valuable cost saving efficiencies
In down stream supply chain MC.DONALD is major supplier of coca cola

products; so it is an extra edge for coca cola that their product is also
associated with one of best restaurant. This increase McDonald bargaining
power.
12- Whether certain suppliers provide differentiated inputs

enhances the quality of end product.
As I explained that coca cola is supplier of its products it self, so this point is
not applicable on coca cola.
13. Whether industry members are major customer of supplier.
The major customers of coca cola are WALMAR, TESCO, and MC.DONALD.
Their bargaining power would be higher. So coca cola have retain their
supplier by providing them more incentives as compare to their competitors
44
14. Whether it makes good economic sense to integrate backward.
In the above case in which we see that there is no major customer of supplier, so
same in this case that coke not acquire any firm that provide raw material to coke,
because coke make all the product on their plant.
15- Buyers cost of switching to competing brands is low.
Buyer bargaining power is stronger when Buyer switching costs to competing

brands are low. Coca cola is producer of soft drink, and in this industry the
difference in prices is very slight; so consumer can easily switch to other brands. So
here the buyers bargaining power would be high.
16- Number of buyers is small or customer is particularly important

to seller.
Here the buyers of coca cola are MC. DONALD; WALMART if they ask for any
discount or price off to some extend coca cola has to fulfill their offers
because these are big joint in the market ;along With a having good repute
as well.
17- If buyer demand is weak & sellers are scrambling to secure

additional sales:
The prices of coca cola are not very high that consumer has to do planning
for buying coca cola, so it is in the access of every person, so that’s why they
don’t sell their product through scrambling.
18- When buyers are well informed about sellers products prices:
In coca cola case buyers are well informed about the prices of every
products.
19- If buyers have discretion in whether and when they purchase:
All over the world 96% people recognized the coca cola, so the consumer of
coca cola don’t think that should we purchase or not? Even AMERICAN is so
crazy about coca cola even they said that if you don’t take coca cola you are
not AMERICAN! That is the power of brand; that coca cola is enjoying.
45
Internal analysis
1.Company is achieving its stated financial

objectives:
Coca cola as I explained earlier led the foundation of soft drink
industry. It is still leader in soft drink industry all over the world since
its establishment. The factors that make it able to be in the market
46
over a century are their good financial returns that are continuously
increasing year by year.
Market financial value
(Source: us soft drink industry report)
Besides the revenue that the coca cola is generating it is also covering
good market share geographically.
47
The company is sound as compare to its major competitor PEPSI. The

following transcript shows the comparison of coke & Pepsi market
financial position summary:
48
2.Whether the company is above average

industry performance:
The coca cola performance in the market is more than average not
only in financial returns; but also having high brand identity, complete
beverage product lines, still having 40% expected growth rate in Asian
market.
49
3.Whether the firm sales are growing faster
slower or above the same pace:
Coca cola’s sales all over the world with its competitor PEPSI co. are
very sound the results are as follows:

The above transcript is showing that coca cola sale all over the world
are growing as compare to its competitor.
4.Whether the company is acquiring new and

retaining existing customers:
50
Coca cola is serving the whole beverage industry like: carbonated
drinks ,water, juices, coffee, flavored milk, energy drinks, canned hot
drinks etc. due to health issue company is loosing its soft drink
consumers but on the hand the consumption of juices all also
increased. So that’s why coca cola does not have as such effect on its
customer reduction. As I have explained earlier why consumer take
soft drinks; due that reasons like having soda in drinks also addict the
consumers take again and again. These factors also enable the
company to retain the customers. In real life you can imagine a regular
coke drinker will not easily take a Pepsi or other carbonated drink,
unless coke is not available or he/she are forced to take other drinks.
5.Whether the firm profits margin are increasing

or decreasing and how well its profit margins
compare to rival firms:
The answer of this point is relevant to point # 3. Yes coca cola profit
margins are faster than its competitor PEPSI.
6.Whether the firms overall financial strength

and credit rating are improving or on decline:
The firm net revenues are 99% from beverages and 1% from others.
51
The firms credit rating in overall world is improving in terms of growth
and product categories.
Coca cola growth index
GROWTH WITH RESPECT TO PRODUCTS CATEROGY
52
The above figures show that coca cola financial and credit rating
strength are good and sound.
7.Whether company demonstrate continuous

improvement such internal performance
a.A day of inventory

(Still pending)
b.Employee productivity
Increasing the employee’s productivity and connecting the sales
force with company Microsoft help them to do so. They are using
micro soft online services to do their jobs.
Their CEO commented as follows: "John Brock, our CEO,
challenged us to indentify better ways to connect all our
employees... Microsoft helped us launch from a legacy
53
infrastructure to a solution that provided better business value to
all our people."
c. Unit cost
Fluctuations in the costs of production inputs can greatly affect
CCE’s profit margins. After the 2007-2008 commodity super
spike, prices for many of the raw materials necessary to produce
and bottle beverages have steadily fallen, lowering CCE’s per-
unit cost of production.CCE will take advantage of these falling
price by locking them in through hedging. In this way, the
company will be able to purchase future inputs at current prices,
limiting the risk of future price increases.
Some commodities that have a particularly significant impact on
CCE's production costs are:
1. Aluminum
1. Used to make cans for packaging.
2. Corn
1. CCE uses high-fructose corn syrup, a corn derivative, to sweeten its
non-diet, full-calorie drinks.
3. PET Resin
1. CCE makes all of its plastic bottles from PET resin.
4. Concentrates
1. Concentrates form the base of all beverages produced by CCE.
These thick syrups are purchased from KO and a few other manufacturers
a.Misfiled orders
This point is not applicable at coca cola co. because they are
very much efficient in delivering orders at the time also adopting
latest technology of e-commerce to connect their sales people
where ever in the world they are. They also outsource their IT
expertise to best manage the orders online.
54
b.Delivery times
The Coca-Cola Store ships most in stock orders to their
vendor(B2B orders) within 1 business day of receipt. Shipping
options are provided at the time of check out. You will always
have an opportunity to see the full amount of your purchase with
shipping charges before you confirm your order. Out of stock
items usually ship within 10 business days. Orders with items on
back order are held until they can be shipped complete.
c. Warranty cost :
1.How shareholder view the company based on

stock price and trend in stock market:
The share holders view about the company
Annual Quarterly
2009-12 2008-12 2007-12 2010-09 2009-09

Income Statement
Revenue 30,990 31,944 28,857 8,426 8,044
Operating Income 8,231 8,446 7,252 2,344 2,150
Net Income 6,824 5,807 5,981 2,055 1,896
Earnings Per Share 2.93 2.49 2.57 0.88 0.81
Shares Outstanding 2,329 2,336 2,331 2,336 2,332
Balance Sheet
Current Assets 17,551 12,176 12,105 23,105 16,992

Non Current Assets 31,120 28,343 31,164 30,984 30,115
Total Assets 48,671 40,519 43,269 54,089 47,107
Current Liabilities 13,721 12,988 13,225 17,271 13,410
Total Liabilities 23,872 20,047 21,525 26,183 23,152
Stockholders' Equity 24,799 20,472 21,744 27,906 23,955
55
Cash Flow
Cash From Operations 8,186 7,571 7,150 7,224 6,270

Capital Expenditures -1,993 -1,968 -1,648 -1,335 -1,399
Free Cash Flow 6,193 5,603 5,502 5,889 4,871
In millions except "EPS". Currency in USD.
S&P 500 index data: S&P 500 Copyright © 2010
The shareholder of every company continuously watch the balance
sheet of company, this enables them to know that what is the financial
worth of company what are its profits, losses, debit & equity ratio and
volume, cash flows, growth rate in the market. Besides these factors
there is an other factor that is the core advantage of the coca cola
that is: it’s BRAND NAME! That is very much appealing to its
shareholder. Because from last many decades coke is achieving the
world top ten brand award. And its brand name worth is 150 billion
US $. Due to this and earning good revenue paying good attention and
connectivity through their Computershare service their shareholders
are very satisfied with them.
2.Firms image and reputation with its customers:

Coca cola image and reputation with its customers either they are B2B
or B2C are very good, because good companies knew the importance
of their customers that,s why they Each year participates in a
performance measurement and benchmarking programme run by The
Advantage Group (www.advantagegroup.com). The programme is
designed to help manufacturers understand how key customers view
and measure the performance of their suppliers. The feedback from
the programme provides important practical insights which enable us
to improve and develop trading relationships with our customers.
AWARDS on customer performance:
• Grocery customers (including Britain’s seven leading supermarkets)
rated CCE as their No 1 supplier – for the third year running – in 2007.
• Wholesale customers rated CCE as their No 1 supplier in 2007.
56
• Convenience customers rated CCE as their No 1 supplier in 2007
• Food Service customers rated CCE as their No 1 supplier in 2006.*
• On Trade (Licensed) customers rated CCE as their 3rd best supplier in
2006.*
“Great companies have a clear vision and great leadership to develop a

strategy to meet the business objectives of the company. Results suggest
that CCE has a clear strategy, which is well communicated to its trading
partners and which drives the success of the business. Results also confirm
that CCE enjoys strong relationships with key customers, driven by a genuine
desire to understand and meet their needs, where possible.”
” Andy Kemp-King - Programme Director - The Advantage Group UK

Ltd
The strong brand name recognition all over the world is the
result of having good relation with customers. (95% people
vote)
10. How well company position against rivals in

following attributes:
a.Technology
The basic technological difference that coca cola create is its
bottling system that differentiate it from its rivals
b.Product innovation
Product innovation in coca cola is only related to beverages.
c. Customer services
They have special performance measurement group that work
only for its customer care and find out that how best they are
performing for different types of customers. This effort shows
their concern’s about their customers.
57
d.getting newly developed products to the
market
Their newly developed are to juices and other energy drinks less
carbonated drinks.
58
References:
http://www.just-drinks.com/
http://www.encyclopedia.com/doc/1G2-3401803932.html
http://www.nytimes.com/2006/03/14/business/worldbusiness/14iht-glob15.html
http://www.euromonitor.com/Soft_Drinks_in_Pakistan
http://www.scribd.com/doc/18975870/Pestal-Analysis-of-Coke
http://researchwikis.com/Soft_Drink_Market
http://www.knowthis.com/principles-of-marketing-tutorials/managing-external-
forces/innovation-in-marketing/
http://www.emedexpert.com/tips/soft-drinks.shtml
http://quote.morningstar.com/Stock/s.aspx?t=KO&culture=en-
US&region=USA&r=17932&byrefresh=yes
http://www.microsoft.com/en-us/cloud/tools-resources/casestudy.aspx?
resourceId=Coca-Cola
http://216.64.209.164/marketplace/how-we-conduct-our-business/working-with-our-
customers.html
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Coca Cola Report 2.docx Edit

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PESTEL ANALYSIS

In Pakistan Taxation polices are governed by Federal board of revenue. And

Impact of Political Factors on Coca Cola Business in Pakistan:

Impact of economic Factors on Coca Cola Business in

Economic factor is major threat in external environment for coca cola;

The social dimension or environment of a nation determines the value

Impact of social Factors on Coca Cola Business in Pakistan:

As majority of Pakistani population is consist on Muslim community, so they

Impact of technical Factors on Coca Cola Business in Pakistan

In 2007, Coca Cola announced their inspirational goal to return to

The company is moving towards their goal with three objectives:

Reduce the amount of water used to produce their beverages.

Replenish water in communities and nature through a global network of local

Coca Colas vision is to advance a packaging framework in which their

Reduce - To design consumer-preferred packages that use the least amount

Recover - To build packaging management systems to collect post-consumer

Reuse - To use post-consumer packaging and packaging materials again to

The company is in the process of setting specific global targets, in

Marketing decisions are strongly affected by developments in the political

Health & Safety:

1. Growing use of internet and internet application:

RANKING OF THIS DRIVER ON SOFT DRINK INDUSTRY:

ASSESSING THE IMPACT OF DRIVERS OF CHANGE:

Are the driving forces acting to make competition, more or less

Will driving forces lead to higher or lower industry profitability?

Internet application can lead to industry higher or lower profitability, because

2.Increasing globalization of industry:

RANKING OF THIS DRIVER ON SOFT DRINK INDUSTRY:

ASSESSING THE IMPACT OF DRIVERS OF CHANGE:

Is the driving forces causing demand for industry product increase

Is the force acting to make competition, more or less intense?

Will driving forces lead to higher or lower industry profitability?

This driver has increased the industry profitability. Because due to

generate huge profits.

3.Change in long term industry growth rate:

RANKING OF THIS DRIVER ON SOFT DRINK INDUSTRY:

ASSESSING THE IMPACT OF DRIVERS OF CHANGE:

Are the forces acting to make competition, more or less intense?

Will driving forces lead to higher or lower industry profitability?

Reason to buy soft drinks:

It's Very Tasty!

Promotion and Advertising

16 Reasons To Stop Drinking Soda

Weakened Bones And Risk Of Osteoporosis

Dental Caries and Erosion

Increased Blood Pressure

Likely To Cause Heartburn

Metabolic Syndrome Risk Factor

Harmful Effects on Liver

Impaired Digestive System

High Caffeine Content

Possible Cell Damage Ability

There Are So Many Healthy Alternatives

RANKING OF THIS DRIVER ON SOFT DRINK INDUSTRY:

Are the forces acting to make competition, more or less intense?

Will driving forces lead to higher or lower industry profitability?

Innovation capabilities in product improvement also expand the business

RANKING OF THIS DRIVER ON SOFT DRINK INDUSTRY:

We would prefer to rank product innovation driver as a +4 for soft drink

ASSESSING THE IMPACT OF DRIVERS OF CHANGE:

1. Are the driving forces causing demand for industry product

2.Are the forces acting to make competition, more or less intense?