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Life Begins Here

Presenters:
Amjad Hussain Khaskheli BME-1387 Fakir Muhammad Jatoi BME-1389

Profile
Coca-Cola is a carbonated soft drink sold in stores, restaurants, and vending machines in more than 200 countries. It is produced by The Coca-Cola Company of Atlanta, Georgia, and is often referred to simply as Coke (a registered trademark of The Coca-Cola Company in the United States since March 27, 1944). Originally intended as a patent medicine when it was invented in the late 19th century by John Pemberton, Coca-Cola was bought out by businessman Asa Griggs Candler, whose marketing tactics led Coke to its dominance of the world soft-drink market throughout the 20th century.luable brand.

Profile
The company produces concentrate, which is then sold to licensed Coca-Cola bottlers throughout the world. The bottlers, who hold territorially exclusive contracts with the company, produce finished product in cans and bottles from the concentrate in combination with filtered water and sweeteners. The Coca-Cola Company has, on occasion, introduced other cola drinks under the Coke brand name. The most common of these is Diet Coke, with others including Caffeine-Free Coca-Cola, Diet Coke Caffeine-Free, Coca-Cola Cherry, Coca-Cola Zero, Coca-Cola Vanilla, and special versions with lemon, lime or coffee. Based on Interbrand's best global brand 2011, Coca-Cola was the world's most valueable brand

Slogans
1886 - Drink Coca-Cola 1904 - Delicious and refreshing. 1905 - Coca-Cola revives and sustains 1922 - Thirst knows no season. 1923 - Enjoy life. 1924 - Refresh yourself. 1938 - Thirst asks nothing more. 1939 - Coca-Cola goes along. 1939 - Coca-Cola has the taste thirst goes for. 1956 - Coca-Cola ... makes good things taste better 1957 - The sign of good taste.

Slogans
2000 - Enjoy 2001 - Life tastes good. (also used in the UK) 2003 - Real. 2005 - Make It Real. 2006 - The Coke Side of Life (used also in the UK) 2007 - Live on the Coke Side of Life (also used in the UK) 2008 - love it light (also used in the UK) 2009 - Open Happiness 2010 - Twist The Cap To Refreshment 2011 - Life Begins Here

Porters 5 forces model


The five forces model of Porter is and outside-in business unit strategy tool that is used to make an analysis of the attractiveness (value) of an industry structure Allows the development of a competitive strategy Suggests 5 main forces may be decisive in helping shape the outcome: Suppliers New entrants Substitutes Buyers Industrial competitors

Cont

Threats of new entrants


Risk is between low to medium

Bottling Network Advertising Spend Brand Image / Loyalty Retailer Shelf Space (Retail Distribution Fear of Retaliation

The bargaining power of suppliers


Risk is between low to medium Commodity Ingredients: Most of the raw materials needed to produce concentrate are basic commodities like Color, flavor, caffeine or additives, sugar, packaging. Essentially these are basic commodities. The producers of these products have no power over the pricing hence the suppliers in this industry are weak.Supplier exert power in the industry by threatening to raise prices or reduce quality

The bargaining power of buyers


Risk is between low to medium

The major channels for the Soft Drink industry are : food stores, Fast food fountain, vending, convenience stores and others in the order of market share. The profitability in each of these segments clearly illustrate the buyer power and how different buyers pay different prices based on their power to negotiate.Bargaining down prices

The threat of substitute products


Risk is medium. Large numbers of substitutes like water, beer, coffee, juices etc are available to the end consumers but this countered by concentrate providers by huge advertising, brand equity, and making their product easily available for consumers, which most substitutes cannot match. Also soft drink companies diversify business by offering substitutes themselves to shield themselves from competition

Rivalry among existing competitors


Intensive rivalry often plays out in the following ways: Price competition Advertising battles Increasing consumer warranties and service New product roll-outs Price competition often leaves the entire industry worse off Pepsi and Coke mainly over the years competed on differentiation and advertising rather than on pricing except for a period in the 1990s. Coke has been more dominant (53% of market share in 1999). in the international market compared to Pepsi (21% of market share in 1999)