Coca cola femsa (b):
Business performance and
strategy development
Begoña Goya
Karla Castro
Pablo José Barroso
Valeria Córdova
Mauricio Charvel
Agenda
01. ABOUT THE COMPANY
04. Context
A little background on Coca Cola FEMSA.
Mission, Vision, Objectives,
Differentiations, Strategy, Tactics,
Operation, Strategic Objectives.
02. summary
Brief Summary of the Case
Video: Coca Cola Supply Chain
05. TIMEline
Important Events.
03. Kahoot
06. SWOT & 7CFM
How much do you know about Coca
Cola FEMSA?
Swot Analysis and 7 competitive
forces model Analysis
Agenda
07. problems
10. conclusions
Main problems identification.
A brief conclusion of the
presentation.
08. Class solutions
How would you solve these
problems?
09. Possible solutions
Our proposed solutions.
01. About the
company
A little background on Coca
Cola FEMSA.
Video: Coca Cola Supply Chain
Coca cola
company
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May 8, 1886, Dr. John Stith
Pemberton produced Coca Cola’s
syrup.
Jacobs’ Pharmacy in Atlanta
Syrup + Carbonated water
1st year = 9 drinks per year
Finished selling portions of the
business
01. About the company
02.Summary
03. Kahoot
04. Context
05. Timeline
06. SWOT&7CFM
07. Problems
08. Class solutions
09. Possible solutions
10. Conclusions
Coca cola
company
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More than 200 countries
1.9 billions servings of Coca Cola’s drinks
per day
Portfolio = more than 200 brands and
thousands of beverages around the
world
Coca Cola is a catalyst for social
interaction and innovation
01. About the company
02.Summary
03. Kahoot
04. Context
05. Timeline
06. SWOT&7CFM
07. Problems
08. Class solutions
09. Possible solutions
10. Conclusions
Video: Coca Cola SC
01. About the company
02.Summary
03. Kahoot
04. Context
05. Timeline
06. SWOT&7CFM
07. Problems
08. Class solutions
09. Possible solutions
10. Conclusions
Coca-cola femsa
1991
30% Coca-Cola Company
13% BVM and NYSE
12%
48 bottling plants
297 distribution centers
10 countries
Is the world's largest beverage
bottler and marketer, representing
12% of the global sales volume of
Coca-Cola System
01. About the company
02.Summary
03. Kahoot
04. Context
05. Timeline
06. SWOT&7CFM
07. Problems
08. Class solutions
09. Possible solutions
10. Conclusions
Coca-cola femsa products
Soft Drinks
Sports Drinks
Fruit-Based Beverages
01. About the company
02.Summary
Energy Drinks
Plant-Based Beverages
03. Kahoot
04. Context
05. Timeline
Juices and Nectars
Sparkling Water
06. SWOT&7CFM
07. Problems
Teas
Flavored Water
08. Class solutions
Dairy Products
Purified Water
09. Possible solutions
10. Conclusions
02. Summary
Brief Summary of the Case
The market
Weather caused decline in Volume
growth.
Coca Cola Femsa moved into the
LATAM market.
Purchase of Jugos del Valle.
Consumer behavior shifted towards
functional drinks.
01. About the company
02.Summary
03. Kahoot
04. Context
05. Timeline
06. SWOT&7CFM
07. Problems
08. Class solutions
09. Possible solutions
10. Conclusions
The market
México was the 6 largest market for
fruit and vegetable drinks.
Sales of such products were led by,
LaLa SA de CV, Grupo Jumex and
Jugos del Valle.
In relation to the retail sector, large
retailers became very popular
employing a variety of store
formats.
01. About the company
02.Summary
03. Kahoot
04. Context
05. Timeline
06. SWOT&7CFM
07. Problems
08. Class solutions
09. Possible solutions
10. Conclusions
The company
FEMSA ownership of Coca Cola
Company in Mexico.
Core Assets.
The CCC bottling Partners.
Core Organizational Values.
01. About the company
02.Summary
03. Kahoot
04. Context
05. Timeline
06. SWOT&7CFM
07. Problems
08. Class solutions
09. Possible solutions
10. Conclusions
Product portfolios
Values implementation in 2007.
Development of Management
Information Systems.
Coca Cola Bottlers.
Competitive Packaging Portfolio.
01. About the company
02.Summary
03. Kahoot
04. Context
05. Timeline
06. SWOT&7CFM
07. Problems
08. Class solutions
09. Possible solutions
10. Conclusions
Business performance
Global Manufacturing and
Operational Network.
Performance in 2005.
01. About the company
02.Summary
03. Kahoot
04. Context
05. Timeline
06. SWOT&7CFM
07. Problems
08. Class solutions
09. Possible solutions
10. Conclusions
03. Kahoot
How much do you know
about Coca Cola FEMSA?
Enter the following pin in kahoot.com
01. About the company
02.Summary
03. Kahoot
04. Context
05. Timeline
06. SWOT&7CFM
07. Problems
08. Class solutions
09. Possible solutions
10. Conclusions
04. Context
Mission, Vision, Objectives,
Differentiations, Strategy, Tactics,
Strategic Objectives.
Mission and vision statements
Mission
Satisfy our beverage consumers with excellence.
Vision
Become the best total global beverage leader, generating
sustainable economic, social, and environmental value by
managing innovative, winning business models with the best
employees in the world.
01. About the company
02.Summary
03. Kahoot
04. Context
05. Timeline
06. SWOT&7CFM
07. Problems
08. Class solutions
09. Possible solutions
10. Conclusions
Objectives
Our objective is to create economic, social, and
environmental value for our
stakeholders—including our employees,
consumers, shareholders, and the companies and
institutions in our society—now and in the future.
01. About the company
02.Summary
03. Kahoot
04. Context
05. Timeline
06. SWOT&7CFM
07. Problems
08. Class solutions
09. Possible solutions
10. Conclusions
Differentiation
In terms of:
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01. About the company
Portfolio
Pricing
Communication
Cooler layout
02.Summary
03. Kahoot
04. Context
05. Timeline
06. SWOT&7CFM
07. Problems
08. Class solutions
09. Possible solutions
10. Conclusions
Strategy & Tactics
1.
2.
3.
4.
01. About the company
Consumer & Customer Focus
Strive for Efficiency & Capability
Employ Digital Tools
Our DNA
02.Summary
03. Kahoot
04. Context
05. Timeline
06. SWOT&7CFM
07. Problems
08. Class solutions
09. Possible solutions
10. Conclusions
Strategic objectives
The One KOF strategic framework:
One Vision, One Platform, One Future
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01. About the company
Build a portfolio for every occasion
Drive an overall digital transformation
Ensure business sustainability
Foster a collaborative culture
02.Summary
03. Kahoot
04. Context
05. Timeline
06. SWOT&7CFM
07. Problems
08. Class solutions
09. Possible solutions
10. Conclusions
The framework: Sustainability
01. About the company
02.Summary
03. Kahoot
04. Context
05. Timeline
06. SWOT&7CFM
07. Problems
08. Class solutions
09. Possible solutions
10. Conclusions
05. Timeline
Important Events.
2000
2004
- National
Quality Prize to
Fabricas
Monterrey
- Soft drinks
industry face
problems in
Mexico
- Competitive
and complex
market
environment
- Mexicans
health aware
01. About the company
02.Summary
03. Kahoot
04. Context
2005
- Goal: growth and convergence of marketing strategies in the expanded
territories considering the organizational values
- Finalized the reorganization of commercial and marketing areas and
meet customer demand
- Launched new products (ZERO)
- Total sales volume increased 5.31% --- $53,601 million
- Gross profit grew 7.6% due to a decrease in sweetener cost--- $3,898
million
- Operating income increase 6.6% --- $1594 million
05. Timeline
06. SWOT&7CFM
07. Problems
08. Class solutions
09. Possible solutions
10. Conclusions
2008
2007
- Gross profit increased 29.10%
compared to 2003
- 179 million consumers in 9 countries,
1,500,000 retailers every week with 64
different beverages
- Completed integration of new
operations in the face of a more
competitive and complex market
environment
01. About the company
02.Summary
03. Kahoot
04. Context
05. Timeline
- Mexico 6th largest market of fruits and
vegetables juices in America and Europe
- Slow growth of sales volume
- Acquired Refrigerantes Minas Gerais,
Ltda
- Acquired Agua de Los Angeles
06. SWOT&7CFM
07. Problems
08. Class solutions
09. Possible solutions
10. Conclusions
06. Swot & 7CFM
SWOT Analysis
7 Competitive Forces
Model
Swot ANALYSIS
STRENGTHS
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WEAKNESSES
Large portfolio
Present all around the world
Largest bottling and marketer in the world
Strong distribution network
Strong dealer community
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Need more investment in new technologies
Limited success outside core business
High day sales inventory
Market Research
Prices changing
OPPORTUNITIES
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01. About the company
THREATS
New trends in consumers behavior
New technologies
Expansion to other countries
Portfolio expansion
New niche markets
02.Summary
03. Kahoot
04. Context
05. Timeline
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06. SWOT&7CFM
New entrants in the market
Change in consumers behavior
Intense competition
Buying behavior change to online shopping
New laws
07. Problems
08. Class solutions
09. Possible solutions
10. Conclusions
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7 competitive
forces model
Bargaining
power of
suppliers
++
Bargaining
power of
buyers
Governments
++
Degree
of
Industry
Rivalry
Threat of
new
entrants
Complementors
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Threat of
substitutes
=
+
01. About the company
02.Summary
03. Kahoot
04. Context
05. Timeline
06. SWOT&7CFM
07. Problems
08. Class solutions
09. Possible solutions
10. Conclusions
07. problems
Problem statements.
Identified problems
Health awareness
Change in consumer behavior
Shifting consumer behavior
towards health beverages
Functional drinks such as, RTD
coffee, bottled water and juices
New ventures
Decline In volume grow of soft drinks
Due to cool weather and frequent
rain in Mexico
Developing new ventures for new
brand acquisitions
Improve performance
Improve the performance of the
distribution and sales functions in
the existing and new market
01. About the company
02.Summary
03. Kahoot
04. Context
05. Timeline
06. SWOT&7CFM
07. Problems
08. Class solutions
09. Possible solutions
10. Conclusions
08. Class solutions
How would you solve
these problems?
09. Possible solutions
Our Solutions.
Change in consumer behavior
Health awareness
Multi-category portfolio growth
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Product innovation (consumer-centric)
Give correct visibility to all the
company's products
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Focus on attracting a new generation of
customers
Re-design the nutritional
information label (focus on easy to
read high-quality information)
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Explore new beverages markets, such as
teas, RTD coffee and even alcoholic drinks
Step 1
Step 2
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01. About the company
02.Summary
03. Kahoot
Step 3
Expand the no- and low-sugar line
of products
04. Context
05. Timeline
06. SWOT&7CFM
07. Problems
08. Class solutions
09. Possible solutions
10. Conclusions
Change in consumer behavior
Health awareness
Multi-category portfolio growth
Step 6
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Step 5
Reinforce existing product
categories with new additions
and favors (energy drinks and
Hydro-tonics).
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Increase the power of the brands
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Invest more in advertising
campaigns and create ads that
positions products as a healthy
option (not just for coca-cola)
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01. About the company
02.Summary
03. Kahoot
Step 4
04. Context
Events for new product launches
05. Timeline
06. SWOT&7CFM
07. Problems
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Capitalize "Jugos del Valle"
acquisition
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Take over the control of the
distribution networks
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Reformulate and re-launch new still
beverages
08. Class solutions
09. Possible solutions
10. Conclusions
Logistics: Driving the digital transformation.
Improve performance
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01. About the company
02.Summary
03. Kahoot
04. Context
05. Timeline
06. SWOT&7CFM
07. Problems
08. Class solutions
09. Possible solutions
10. Conclusions
#e94444
Improve performance
Some other ideas…
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Water is a winning product: create a home delivery system
that fulfills regular water consumption.
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Increase the offer of products on returnable containers:
expanding the affordable products portfolio expands the
market.
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Innovate on packing development: make existing products
more sustainable and attractive.
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Think about the circular economy: how to close the loop of
PET bottles lifecycle.
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Improve and standardize the sales force: set standard KPIs,
training, and sales strategies.
01. About the company
02.Summary
03. Kahoot
04. Context
05. Timeline
06. SWOT&7CFM
07. Problems
08. Class solutions
09. Possible solutions
10. Conclusions
Pillars for the success of this strategy
Developing a
suitable business
model for each
market
Attract and
retain talented
and engaged
employees
01. About the company
02.Summary
03. Kahoot
04. Context
05. Timeline
06. SWOT&7CFM
Maintain a
focused and
clear vision
Maintain a strong
relationship with
collaborators
07. Problems
08. Class solutions
09. Possible solutions
10. Conclusions
10. Conclusions
A brief conclusion of
the presentation.
Conclusions
As we know, CCF is a multinational company that is
known for all of its products, it is a very successful
company; since, even when they have bad years
they still earn significant revenue. But nevertheless
there are always going to be some improvements to
be made.
This company has the infrastructure to keep
growing and expanding to new markets.
01. About the company
02.Summary
03. Kahoot
04. Context
05. Timeline
06. SWOT&7CFM
07. Problems
08. Class solutions
09. Possible solutions
10. Conclusions
Eduardo G Hernandez P.
COO Latam Region / Divisional
Region Latam at Coca-Cola
Femsa
01. About the company
02.Summary
03. Kahoot
04. Context
05. Timeline
06. SWOT&7CFM
07. Problems
08. Class solutions
09. Possible solutions
10. Conclusions
RESOURCES
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Brands & Products | The Coca-Cola Company. (2022). Retrieved 14 January 2022, from
https://www.coca-colacompany.com/brands
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Estrategia KOF. FEMSA. (n.d.). Retrieved January 17, 2022, from
https://femsa.gcs-web.com/es/company-profile/strategy#:~:text=Nuestro%20objetivo%20es%20crear%20valor,ah
ora%20y%20en%20el%20futuro.
FEMSA 2020 Annual Report •. FEMSA. (n.d.). Retrieved January 17, 2022, from
https://annualreport.femsa.com/CocaColaFemsa.html
Nuestra Historia - FEMSA, Nuestra Historia - FEMSA. (2022). Retrieved 18 January 2022, from
https://www.femsa.com/es/acerca-de-femsa/nuestra-historia/#1910-1919
Coca-Cola FEMSA - FEMSA. (2022). Retrieved 18 January 2022, from
http://www.femsa.com/es/unidades-de-negocio/coca-cola-femsa/
Quiénes Somos - FEMSA. (2022). Retrieved 18 January 2022, from
https://www.femsa.com/es/acerca-de-femsa/quienes-somos/
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Nuestros Productos- FEMSA (2022). Retrieved 18 January 2022, from
https://coca-colafemsa.com/acerca-de/somos-kof/nuestros-productos/
https://www.youtube.com/watch?v=UBSOiHUctrY
https://coca-colafemsa.com/wp-content/uploads/2019/12/Annual-Report-2008.pdf
https://coca-colafemsa.com/wp-content/uploads/2021/03/KOF_2020_Eng.pdf