Coke Goes High-Tech to Mix Its Sodas By: Valerie Bauerlein Presented By: Evan Ropp Eric Watkins Sarah Ruatta History of Coca-Cola • Introduced in 1886 by a pharmacist named Frank Robinson in Atlanta, GA. • First sold at a soda fountain • Only 9 servings per day were sold • First year sales= $50 • Now, with 1.4 billion beverages sold each day, they are one of the most successful beverage companies in the world Article Summary • Coca-Cola wants to add life to soft-drink sales by letting restaurant goers mix up to 104 different drinks • The new curved medal shell is designed by the designers of Ferrari racecars • Has special technology that releases proper amounts of concentrate • Coke charges 30% more than traditional fountains Article Summary cont… • Soda business needs innovation – Sales decreased the past 5 years and fell 2.1% in 2009 • Coke has 70% of the U.S. market • They have 34 patents on this machine – Perfect pour technology – Flavors don’t mix between drinks • Has been running 6 months of tests with 69 machines • Adds an experience to the restaurant • Coca-Cola plans on placing 500 new machines around the country SWOT • Strengths – – – – – Brand equity/image & recognition Product distribution and worldwide network Solid financial performance One of the world's most recognized brand Product diversification (water, juices, soft drinks, sport drinks, etc) • Weaknesses – Customer concentration, particularly in the US (Wal-Mart accounts for more than 10% of Coca Cola's business in the US) – There are a lot of loyal Pepsi customers and not many loyal Coca-Cola customers – Bad Global website compared to Pepsi. SWOT Analysis • Opportunities – – – – Bottled water growth Acquisitions of smaller players Health consciousness growth, specifically of the baby boomers Non-carbonated drinks are the fastest-growing part of the industry • Threats – – – – – Commodity prices growth Image perception in certain parts of the world (i.e., Colombia) Smaller, more nimble operators/players Key competitors (Pepsi, etc) Energy drinks Works Cited • http://online.wsj.com/article/SB100014240 52748703612804575222350086054976.ht ml • http://www.wikiswot.com/SWOT/3_Consu mer_Packaged_Goods_%28CPGs%29/C oca_Cola.html • http://www.youtube.com/watch?v=tp1uF3r F4oI&feature=related • http://heritage.coca-cola.com/