Market study of Coca Cola company
Jumyeong Kim 11340696046
Xinyi Goh 11349086092
Contents
 Overview of Beverage industry and Non-alcohol business trend
in the world and in China
 Coca Cola business model and brands and products
 The consumer value Coca Cola created and What can Coca Cola
do to make clients happy and loyal
 Consumer market analysis of Coca Cola
 SWOT and Competitor analysis in China
 How to face the challenges in China
Overview of Beverage Industry
&
Non-alcohol Business Trend
in the World
Refrechin Everyone We Touch
Beverages
Nonalcohol
Alcoholic
Beverages
Soda
Tea &
Coffee
Energy
Drinks
Fruits
Juice
Drinking
Water
Enhanced
Water
Sports
Drinks
Milk
Beverages
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Beverages
• Oligopoly(intense competition)
Nonalcohol
Alcoholic
Beverages
• Limited growth opportunity
(endeavor to diversify offerings)
• Changing consumer tastes
Soda
Tea &
Coffee
Energy
Drinks
Fruits
Juice
Drinking
Water
Enhanced
Water
Sports
Drinks
Milk
Beverages
• Volatile commodity costs
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Beverages
Nonalcohol
Soda
Tea &
Coffee
• Historically dominated by Pepsi
and Coca Cola
Alcoholic
Beverages
Energy
Drinks
Fruits
Juice
• Distribute via sizable bottling
subsidiaries
• Consumer preferences drive
product diversification (growing
awareness of health issues).
•Demand for bottled water, lowsugar drinks, RTD tea increases
Drinking
Water
Enhanced
Water
Sports
Drinks
Milk
Beverages
Overview of Beverage Industry
&
Non-alcohol Business Trend
in China
Refrechin Everyone We Touch
1980s
•Carbonated
beverages :
Coca Cola,
Pepsi
1990s
•Bottled Water:
Wahaha,
Robust,
Nongfu
Early 2000
•Tea beverages
and fruit juice:
Master Kong
Uni-president
Present
•domestic
beverage
industry has a
huge marketbased
•enjoys a great
room for
growth
Future
•size of the
industry will
continue to
expand
•Bottled water,
tea drink,
protein drink
will increase
•rise of healthy
drinks
Refrechin Everyone We Touch
Beverages
•Dominated by 6 brands
Nongfu Spring
Nonalcohol
Alcoholic
Beverages
Master Kong
Wahaha
Soda
Tea &
Coffee
Energy
Drinks
Fruits
Juice
Uni-president
Robust
Drinking
Water
Enhanced
Water
Sports
Drinks
Milk
Beverages
Nestle
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Beverages
Nonalcohol
Alcoholic
Beverages
Soda
Tea &
Coffee
Energy
Drinks
Fruits
Juice
Drinking
Water
Enhanced
Water
Sports
Drinks
Milk
Beverages
• Growth is limited but large
consumer base
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Beverages
• Consumers’ need of natural,
low sugar, healthy beverage
Nonalcohol
Alcoholic
Beverages
Soda
Tea &
Coffee
Energy
Drinks
Fruits
Juice
Drinking
Water
Enhanced
Water
Sports
Drinks
Milk
Beverages
• Rapid growth
Refrechin Everyone We Touch
Beverages
• Dominated by 2 brands
Nonalcohol
Alcoholic
Beverages
Soda
Tea &
Coffee
Energy
Drinks
Fruits
Juice
Drinking
Water
Enhanced
Water
Sports
Drinks
Milk
Beverages
Master Kong
Uni-president
account for about 80%
of the market share
Coca Cola business model &
brands & products
Atlanta, Georgia
Founded in 1892
Since 1886
Asa Griggs Candler
John Stith Pemberton
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43% : the United States
37% : Mexico, India,
Brazil, Japan and China
20% : spread throughout
the rest of the world
Serves
Over 1.7 billion
drinks each days
owns its anchor bottler in
North America
Coca Cola refreshments
More than 500 brands
in over 200 countries
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Coca Cola Business Model Canvas
Refrechin Everyone We Touch
Value Proposition
•Quench thirst
•Happiness
•Cool down on hot
days
•Uniquness (special feeling)
•Get sugar
•Familiar Taste
•Feel one of the cool
guys
For Distributors:
•Winning product
•Guaranteed to sell
Customer Segments
•Mass Market
•Children
•Young Adults/Teens
•All the rest
•Dep, Stores,
Restaurants
•Larger retail outlets
•Vending machine
operators
•Redistributors
Channels
Customer Relationships
• Display
• Advertisement for customers
• Campaigns
Key Activities
• Production
• Bottling
• Marketing
• Distribution
Key Partners
Coca Cola
Company
Advertisement
Agency
Bottle
Supplier/
Bottler
Key Resources
• Bottling/Syrup Factory
• Distribution Center
• Employees(146,200)
• Marketing Budget
• Franchise Contract
Revenue Streams
• Retail Price
• Fixed Pricing(Volume, product feature dependent)
Cost Structure
• Marketing
• Bottling and Distribution
• Producing Syrup
• Franchise Contract
Coca Cola Brands & Products
The consumer value Coca Cola created
&
What Coca Cola do to make clients happy
and loyal
The consumer value
What Coca Cola do to make consumers happy and loyal
Consumer-Centricity
• first beverage company to offer front-of-package labeling that states the
number of calories in each can
• aligning their product offerings with the consumer’s growing search for
healthy and green product solutions
Familiarity
• Familiarity creates a sense of affinity between the customer and brand
• more exposure to Coca Cola by lots of advertisements and campaigns
• memory refreshment and positive association
How does Coca Cola
analyze its consumer
market?
Refrechin Everyone We Touch
Segmentation
Dividing the market
•Geographic segmentation
•Place of consumption
•Types of products bought by
customers
•Demographic segmentation
Geographic Segmentation
To divide markets into different geographic units
Population Density
World Region or Country
Region
Climate
City or Metro Size
Place of Consumption
At home
Cinemas
Streets
Types of products bought by
customers
Demographic Segmentation
Targeting
Geographic Segmentation:
Winter VS Summer
Targeting
The heath conscious segment of the
market
Positioning
Creating an identity in the minds of a target market
Happiness
Refreshing and Thirst
Quenching
Consistent and High
Quality
SWOT of Coca Cola
SWOT Analysis
Strengths
Weaknesses
- Very strong brand
- Criticisms regarding health
- Able to enjoy EOS
- The Coca Cola system
Opportunities
- Inorganic growth and
acquisitions
- Growing healthy drinks
and bottled water
and environmental issues
- Dropping sales in several
countries
Threats
- Changing trends
- Dependence on third party
bottling partners
SWOT Analysis
Strengths
Weaknesses
- Very strong brand
- Criticisms regarding health
- Able to enjoy EOS
- The Coca Cola system
Opportunities
- Inorganic growth and
acquisitions
- Growing healthy drinks
and bottled water
and environmental issues
- Dropping sales in several
countries
Threats
- Changing trends
- Dependence on third party
bottling partners
SWOT Analysis
Strengths
Weaknesses
- Very strong brand
- Criticisms regarding health
- Able to enjoy EOS
- The Coca Cola system
Opportunities
- Inorganic growth and
acquisitions
- Growing healthy drinks
and bottled water
and environmental issues
- Dropping sales in several
countries
Threats
- Changing trends
- Dependence on third party
bottling partners
SWOT Analysis
Strengths
Weaknesses
- Very strong brand
- Criticisms regarding health
- Able to enjoy EOS
- The Coca Cola system
Opportunities
- Inorganic growth and
acquisitions
- Growing healthy drinks
and bottled water
and environmental issues
- Dropping sales in several
countries
Threats
- Changing trends
- Dependence on third party
bottling partners
Coca Cola’s Competitor
Analysis in China
Master Kong
•
•
•
•
•
Tingyi Holding Corporation
Largest instant noodle producer
48.3% leading market share in RTD market
19.6% leading market share in bottled water market
Second to Huiyuan in fruit juice market
Coca Cola in Asia
VS
RTD Teas and Fruit Juices
24%
Soda
Less than 9%
How does Coca Cola face
its challenges in China?
Adapt and Modify!
Health Benefits
Advertising
Refreshing Everyone
We Touch