Introduction This paper mainly sheds light on the overall success journey of Coca-Cola Company as a whole. In this paper, the overall strategic plans of Coca-Cola that is used to run the business effectively; have been discussed. In addition to that, different internal and external factors that affect this global organization have been explained as well. Lastly, the approaches that are taken by the company for sustainable development and can be used in other businesses as well are discussed further. History of Coca Cola On May 8, 1886 in Atlanta, Georgia the world got the chance to experience the flavor of a new beverage in their taste buds which became and still remains the most favorite of people of different ages around the globe- that is ‘Coca Cola’. From then Coca-Cola Company has been continuing to capture the beverage market beating all its competitors. It is now the largest and leading company in manufacturing, marketing and distributing non-alcoholic beverages around the world. The company now produces more than 400 bottled and canned beverages ranging from diet,light beverages, juice, and energy drinks to water. The company is now operating in more than 200 countries and over a billion of drink per day is being consumed every day. Thus delivering satisfaction to consumers through superior brands and services and increasing brand equity and shareholder value on a continuous basis in global scale. Company Profile Mission statement-For the successful strategic development of the company, Coca cola came up with the simplest yet powerful mission statement for their company which impressively serves their purpose beliefs, values and code of conduct. Their mission statement is- To refresh the world... To inspire moments of optimism and happiness... To create value and make a difference. Vision-Their vision is like the framework of their roadmap which assists them in all sphere of their business by explaining the tasks needed to achieve sustainable development. People: Be a great place to work where people are inspired to be the best they can be. Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs. Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value. Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities. Organization Structure of Coca-Cola Global Market Share According to the financial report of Coca-Cola company published in 2017, the company had a 3% rise in its sales. Because of the changing global consumer trends, the prominence on the international product mix has also been amplified. Ready-to-drink tea, coffee and energy drinks are now generating good revenues now. The Coca-Cola company’s full year’s sales from 2013 to 2017 I billion Sales 2013 2014 2015 2016 2017 46854 45998 44294 41863 35410 Environmental Forces Affecting Coca-Cola Global Economic Factors- For the past years consumers have reduced their spending rate because of higher interest rate due to the worldwide economic meltdown. Consumers now tend to spend more in basic products than beverages which resulted in the declining sales of the company. However, the CEO has confirmed that, the company is still making profit while capturing competitors share and enticing new customers globally by exploiting economies of scale using their dispersed production facilities. Social Factors-Since Coca-Cola is a B2C company, social changes impact the company’s overall operation decision significantly. With heightened global crisis and diseases, people these days have become more conscious about their health and switching from sugared drinks to more healthy drinks. As 74% of Coca-colas products are carbonated drinks, consumers’ concerns on public health, obesity and other health related issues have affected the company’s product decision which resulted in the launching of zero calorie soft drinks and diet ranges. Political Factors- Increased Vat has forced consumers to buy fewer products which in turn resulted in lower sales for Coca-Cola. Climatic Factors- In recent years governments of all countries have put extra restriction on carbon emissions. Coca-Cola embraced this regulation and reduced their carbon emission by 5% in 2015. Technological factors- Because of the innovation of technology, the company has successfully made improvement in various segments of its business. Introduction of vending machines has made the products more available to consumers. Technological advancement has also led to innovation of new products like Diet coke, Cherry coke, etc. The bottling industry has also been benefited from the advancement by being able to make cans and biodegradable and non- fillable bottles. SWOT Analysis Strengths- The main strengths which help Coca-Cola company to gain competitive advantage over its competitors is as follows Coca-Cola is a highly recognizable and successful brand in the global market which makes it easier for the company to attain new customers, shareholders, or any other facility. Because of their strong distribution network, the company can easily carry out its operations and distribute necessities swiftly. Coca-Cola has giant manufacturing set ups all over the world. Because of that they can produce in bulk and cover up the total consumption need continuously. Coca-Cola has always managed to run successful marketing plans because of their worldwide integrated marketing channels. The company is continuously spending in the innovation of product development and now selling more than 400 different beverages. Weaknesses- The drawbacks that hold back the company in some case are as follows There are still many underdeveloped countries and areas in the world where people cannot afford to buy products of Coca-Cola. In these places local beverages rule the market. Aside from affordability, not all the products of Coca-Cola are sold to every age group. There are some products which are sold to only a certain age groups. In fact, the company has failed to attract old generation by not producing any beverage catering to that groups need only. Opportunities- Since the company is a gigantic one, operating internationally, it always find new opportunities to expand and flourish the business. The three main opportunities that constantly keep the company ahead of others are The company is always on run in capturing large domestic markets which not always possible for the competitors. Continuous thirst for innovation always opens new doors of possibility for the business. Because of worldwide dispersed business it is very easy for the company to explore new markets. Threats- There are few factors that can become threat for the company. They are- Many substitute products are now making their way in the soft drinks industry which can lead to a reduction in the number of consumers. In many underdeveloped countries, local beverages still have strong hold against giant company’s products. Heightened health consciousness can lead to a fall in the overall consumption of carbonated beverages. Vertical andHorizontal Integration of Coca-Cola In order to have a successful vertical integration, the company has taken control over many stages in the production and distribution process to yieldcomplete control of the supply chain. In case of horizontal integration, the company has acquired a lot of businesses related to operation and production of the company. Distribution Network of Coca-Cola The company usually sells its beverages bases, concentrations and syrups to other local and international bottler companies. These companies then manufacture the beverages and sell them different customers groups like restaurants, cafes, supermarkets, grocery stores, stations, retailers, vending machine owners, etc. So, the bottling companies play a major role in the distribution of Coca-Cola products worldwide. To have the strongest and most powerful distribution network, Coca-Cola has acquired almost half of its associated bottling companies within the last two decades. Marketing Strategy of Coca-Cola A significant contribution towards the success of Coca-Cola is its marketing plan. From identifying target customers, advertising and promotional strategies to selecting vendors all are integrated so well that other giant companies even find it difficult to match with their marketing strategies. A glimpse of the overall marketing plan of Coca-Cola is given here. Target Market- From the commercials of Coke, it can be easily identified that the main target market is the young generation as the ads and product itself represent youth and energy. However, for the successful implementation of marketing strategies, these youth groups are divided variously on a global basis. They are Segmentation according to continent, country or state Segmentation according to size and density of population Climatic segmentation Demographic segmentation Product- Most of their product are refreshment beverages associated with energy and revitalization in everyday life. Pricing- Coca-Cola has always believed in bulk selling. Therefore, they always tried to keep the prices of their product at a level where almost everyone can afford it. They have always used penetration pricing strategy to determine the price in achieving their marketing and positioning objectives. Positioning- Coca-Cola has always positioned its product in the minds of customers by directly comparing it with competitors’ products. In recent years, though new narrative ads the company has tried to establish the association and relationship of Coke with people’s day to day intimatemoments and celebrations which clearly positioned the product more powerfully in the mind of customers. Promotion- The key factor in implementing a perfect promotional plan is communicating with the customers effectively. To achieve this Coca-Cola formulates a mix of advertising plans, sales promotions, personal selling and public relations. Advertising Plans: Coca-Cola is probably one of the best companies in devising creative and innovative advertisements. Their advertising plans range from TV commercials, newspaper ads, billboard ad, leaflets, infomercials, to transit advertising, etc. Sales Promotion: Coca-Cola always offers different promotional offers to its customers and vendors throughout the year to increase their sales. Public Relations: Throughout the year the company arranges various seminars and programs to establish a strong relation with its stakeholders. Strategic Models used by Coca-Cola that can be implemented by other companies Differential strategy: Companies that have access to scientific research and innovation department can use Coke’s differential strategy to have success. Cost Leadership strategy: Companies that produce commodity, domestic products in bulk can follow Coca-Cola’s cost leadership strategy. Market Segment strategy: Businesses running in a competitive environment with many competitors can follow Coke’s marketing strategies to create a difference in the market. Conclusion To sum up, it can be said that even after facing many difficulties in its journey, Coca-Cola has and still overcoming all its obstacles to remain one of the most powerful and successful companies around the globe. With the help of stakeholders from all level and integration of all these levels, it has created a benchmark for every segment of business in becoming a prosperous one.
