00-COKE-01 - Lecture notes 1-7 PDF

Preview

Summary

MINISTRY OF EDUCATION & TRAININGUNIVERSITY OF ECONOMICS AND FINANCEINTERNATION BUSINESS MANAGEMENTCOCA COLA COMPANYInstructor: Prof. Paul JordanGroup members: Nguyễn Trọng ThiênHuỳnh Ái VânVũ Phùng Minh HiếuNgô Trọng VinhĐinh Nguyễn Minh TuấnNguyễn Lê Quốc ToànTable of contents3II. COMPANY HISTO...

Description

MINISTRY OF EDUCATION & TRAINING UNIVERSITY OF ECONOMICS AND FINANCE

INTERNATION BUSINESS MANAGEMENT COCA COLA COMPANY

Instructor:

Prof. Paul Jordan

Group members: Nguyễn Trọng Thiên Huỳnh Ái Vân Vũ Phùng Minh Hiếu Ngô Trọng Vinh Đinh Nguyễn Minh Tuấn Nguyễn Lê Quốc Toàn

Vietnam - 2020

Research

Table of contents I.

ACKNOWLEDGMENT: .................................................................................... 2

II.

COMPANY HISTORY: ...................................................................................... 3

III.

MISSION STATEMENT: ................................................................................. 11

IV.

COMPANY OBJECTIVES: ............................................................................. 11

V.

COMPANY CORE VALUES: ......................................................................... 11

VI.

COMPANY SLOGANS: ................................................................................... 12

VII.

CEO AND DIRECTOR: ................................................................................... 14

VIII.

SWOTT ANALYSIS: ........................................................................................ 16

IX.

SMART ANALYSIS:......................................................................................... 17

X.

PESTEL ANALYSIS: ........................................................................................ 19

XI.

DATA: GRAPHS AND STATISTICS ............................................................. 20

XII.

RECOMMENDATION:.................................................................................... 22

XIII.

CONCLUSION: ................................................................................................. 23

XIV.

REFERENCES: ................................................................................................. 24

1

Vietnam-2020

Research

I.

ACKNOWLEDGMENT:

We would like to express our special thanks of gratitude to my International Businesses teacher Prof. Paul Jordan for your guidance and support in completing our project. Personally, I would also like to extend my gratitude to my five team members for contributing their time and efforts in this project.

2

Vietnam-2020

Research II

Typ

Manufacturer

The Coca-Cola Company

Country of origin

United States

Introduced

May 8, 1886; 134 years ago

Color

Caramel E-150d

Variants

Diet Coke Diet Coke Caffeine-Free Caffeine-Free Coca-Cola Coca-Cola Zero Sugar Coca-Cola Cherry Coca-Cola Vanilla Coca-Cola Citra ……

The Coca-Cola Company was founded in 1892 by John S. Pemberton (1831–1888) and established its Headquarters in Atlanta. The Coca Cola Franchise is the World’s biggest Beverage Industry. It dominated a 48% of the global Market share. In total the Franchise is responsible for over 160 different beverages within a market consisting of 200 Countries. Examples of their products are Coke, Sprite, Dasani and many more. Their products range from Sport’s Beverages, Juices, Tea, Coffee and Water.

3

Vietnam-2020

Research

Productions: Caffeine-Free Coca-Cola (1983–present) – Coca-Cola without the caffeine. Coca-Cola Cherry (1985–present) – Coca-Cola with a cherry flavor. Was available in Canada starting in 1996. Originally marketed as Cherry Coke (Cherry Coca-Cola) in North America until 2006. 4

Vietnam-2020

Research New Coke / Coca-Cola II (1985–2002) – An unpopular formula change, remained after the original formula quickly returned and was later rebranded as Coca-Cola II until its full discontinuation in 2002. In 2019, New Coke was re-introduced to the market to promote the third season of the Netflix original series, Stranger Things.[86] Golden Coca-Cola (2001) was a limited edition produced by Beijing Coca-Cola company to celebrate Beijing's successful bid to host the Olympics. Coca-Cola with Lemon (2001–05) – Coca-Cola with a lemon flavor. Available in: Australia, American Samoa, Austria, Belgium, Brazil, China, Denmark, Federation of Bosnia and Herzegovina,…. Coca-Cola Vanilla (2002–05; 2007–present) – Coca-Cola with a vanilla flavor. Available in: Austria, Australia, China, Czech Republic, Finland, France, Germany, Hong Kong, New Zealand, Malaysia, Slovakia, South-Africa, Sweden, Switzerland, United Kingdom and United States. It was reintroduced in June 2007 by popular demand. Coca-Cola with Lime (2005–present) – Coca-Cola with a lime flavor. Available in Belgium, Lithuania, Netherlands, Singapore, Canada, the United Kingdom, and the United States. Coca-Cola Raspberry (2005; 2009–present) – Coca-Cola with a raspberry flavor. Originally only available in New Zealand. Available in: Australia, United States, and the United Kingdom in Coca-Cola Freestyle fountain since 2009. Coca-Cola Black Cherry Vanilla (2006–07) – Coca-Cola with a combination of black cherry and vanilla flavor. It replaced and was replaced by Vanilla Coke in June 2007. Coca-Cola Blāk (2006–08) – Coca-Cola with a rich coffee flavor, formula depends on the country. Only available in the United States, France, Canada, Czech Republic, Bosnia and Herzegovina, Bulgaria and Lithuania Coca-Cola Citra (2005–present) – Coca-Cola with a citrus flavor. Only available in Bosnia and Herzegovina, New Zealand, and Japan. Coca-Cola Orange (2007) – Coca-Cola with an orange flavor. Was available in the United Kingdom and Gibraltar for a limited time. In Germany, Austria, and Switzerland it is sold under the label Mezzo Mix. Coca-Cola Life (2013–present) – A version of Coca-Cola with stevia and sugar as sweeteners rather than simply sugar. Coca-Cola Ginger (2016–present) – A version that mixes in the taste of ginger beer. Available in Australia, New Zealand, and as a limited edition in Vietnam. Coca-Cola Orange Vanilla (2019–present) – Coca-Cola with an orange vanilla flavor (intended to imitate the flavor of an orange Creamsicle). Made available nationwide in the United States on February 25, 2019.[87]

5

Vietnam-2020

Research Coca-Cola Energy (2019–present) – An energy drink with a flavor similar to standard CocaCola, with guarana, vitamin B3 (niacinamide), vitamin B6 (pyridoxine hydrochloride), and extra caffeine. Introduced in 2019 in the United Kingdom,[88] and released in the United States in January 2020.[89] Also available in zero-sugar, cherry, and zero-sugar + cherry variants. Coca-Cola Cinnamon (2019–present) – Coca-Cola with cinnamon flavor. Released in October 2019 in the United States as a limited release for the 2019 holiday season.[90] Coca-Cola Cherry Vanilla (2020–present) – Coca-Cola with cherry vanilla flavor. Released in the United States on February 10, 2020.

6

Vietnam-2020

Research

Milestones of Coca Cola Company

7

Vietnam-2020

Research

8

Vietnam-2020

Research

9

Vietnam-2020

Research

10

Vietnam-2020

Research III.

MISSION STATEMENT:

Coca Cola’s mission statement is:  Refresh the world in mind, body, and spirit.  Inspire moments of optimism and happiness through our brands and actions.  Create value and make a difference.

IV.

COMPANY OBJECTIVES:  Coca cola first objective is to maximize share owner value over time  Coca-Cola is evolving its business strategy to become a total beverage company by giving people more of the drinks they want – including low and no-sugar options across a wide array of categories – in more packages sold in more locations. COMPANY CORE VALUES:

V.       

Leadership: The courage to shape a better future Collaboration: Leverage collective genius Integrity: Be real Accountability: If it is to be, it's up to me Passion: Committed in heart and mind Diversity: As inclusive as our brands Quality: What we do, we do well

11

Vietnam-2020

Research VI.

COMPANY SLOGANS:

12

Vietnam-2020

Research

13

Vietnam-2020

Research VII.

CEO AND DIRECTOR:

James Quincey Chairman and Chief Executive Officer

Headquarters: Atlanta, GA No. of Employees: 100,300 Date became CEO: May 1, 2017 Age: 64 Graduate Degree: Electronic Engineering from the University of Liverpool Company Start Date: 1996 Years at Company: 21 First Position: Director of Learning Strategy, Latin America  Firstly he worked for Coke in Mexico, where he led the acquisition of Jugos del Valle.  He was president of the Northwest Europe & Nordics Business Unit from 2008 until 2012  In 2013, he became president of Coca-Cola's Europe Group  In August 2015, Coke made him the chief operating officer (COO) and became president later that year.  He was named CEO in December 2016. He became CEO the following May when Muhtar Kent retired.

14

Vietnam-2020

Research

Alexis Herman

Ana Botín

Barry Diller

Chair and Chief Executive Officer New Ventures LLC

Executive Chair, Banco Santander, S.A.

Chairman and Senior Executive, IAC/InterActiveCorp and Expedia Group, Inc.

Bobby Kotick

Caroline Tsay

Christopher C. Davis

Chief Executive Officer and Director, Activision Blizzard,

Chief Executive Officer and Director, Compute Software,

Chairman, Davis Selected Advisers-NY, Inc.

Helene D. Gayle

David B. Weinberg

Herbert A. Allen

President and Chief Executive Officer, The Chicago Community i

Chairman and Chief Executive Officer, Judd Enterprises

President, Chief Executive Officer and Director, Allen & 15

Vietnam-2020

Research

VIII.

SWOTT ANALYSIS:

Strengths

Weaknesses

 Strong brand identity  Highest brand equity  Extended global reach  Largest Brand Valuation  Dominant Market Share  Unparalleled distribution system  Acquisitions

 Aggressive competition with Pepsi  Product diversification  Health concerns

Threats

Opportunities  Introduce new products and diversify its segments  Increase presence in developing nations  Bring advanced supply chain system  Packaged drinking water

 Water usage controversy  Packaging controversy  Direct and indirect competition

Trends  Consumer began to use more coke-branded especially lowsugar  Packaging architecture  Growth of developed and developing markets  Coca-Cola lift shift model

16

Vietnam-2020

Research

IX.

SMART ANALYSIS:

COCA – COLA STRAWBERRY (20/1 – present) in Japan

17

Vietnam-2020

Research

SMART

Specific

The estimated revenue from Strawberry Coke for the first 12 months is approximately $115million

Measurable

Expecting a profit margin of approximately 3% for the first year, and an increase of profit to 8% after the second year..

Aggressive

Positioning Strawberry Coke for the fruit juice market is through quality. Creating such an image for Strawberry Coke, where Strawberry Coke is a high quality product that better suits the needs of a fruit drink (being healthy but maintaining a great taste.). Expecting a profit margin of approximately 3% for the first year, and an increase of profit to 8% after the second year.

Realistic

-Research Costs an average of $550,000 every year -Product Costs at least $10.3million on multinational scale -Promotion and Distribution Costs to be $35million over two years. -Given that the Coca-Cola company revenue in 2019 is 37.27 B$, so the cost is affordable. So in order to reach the adequate and also making profit in a year is possible

Timebound

Revenue for the first six months is expected to be adequate, but not extraordinary. A further detailed financial report should be completed after six months of implementation and will include a detailed analysis of all costs and revenue, as well as predicted revenue and profit forecasts for the proceeding 24 months.

18

Vietnam-2020

Research X.





PESTEL ANALYSIS:

Must follow FDA rules to provide people with right, beverages Labor, acconting and internal

 Understands consumers tastes  Most of income is from sell of drinks marketing laws must be followed

 Using advance technology in producing fine  Coca-Cola has done products in short time well in securing all the  Using social media rights of their business effectively for

 Launched healthy drinks in US  Apply strategies in different countries such as Japan, China.



Must operate in an area where is no shortage of water

19

Vietnam-2020

Research XI.

DATA: GRAPHS AND STATISTICS

20

Vietnam-2020

Research

21

Vietnam-2020

Research

XII.

RECOMMENDATION:

The most important recommendation that I would like to make is that the Coca Cola Company should try and amend the contracts with its bottling partners. The Company should have the power to intervene in the operations of its bottling partners. Incidents like the one that happened in India where the Company was accused of mixing hazardous pesticides. Had the Company had the power to intervene, probably this would not have happened. My second recommendation is in the financial interests of the Company. It is evident that the Company hires renowned personalities for its advertising campaigns. It is for sure that the company might be paying hefty amounts to these renowned people for their services. Instead of showing such people in the advertisements, the Company should hire people from the masses. This will serve a twin purpose. Firstly, the company will save huge amounts which it may use as cost cutting on its products. Secondly, since the people in the advertisements will be from the masses, it will have a greater appeal.

22

Vietnam-2020

Research

XIII.

CONCLUSION:

Coca-Cola as the world's leading soft beverage, with the strength of high resources company and also a very good and well-known brand image will be accepted at ease almost all over the world. Therefore, the strategy of Coca-Cola focuses on covering the full market segmentation, anywhere. But along with the development of the soda industry, many competitors both from domestic products to global manufacturers are now present and reducing Coca-Cola's market share in each country. Hence, the need for Coca-Cola innovations on their marketing strategies. Armed with their bottling partners and also the ability to 'think global, act local' makes CocaCola could adjust its strategy in order to penetrate the market more complex and in-depth in order to continue to expand market share in all regions.

23

Vietnam-2020

Research

XIV.

REFERENCES:

References: https://en.wikipedia.org/wiki/Coca-Cola https://en.wikipedia.org/wiki/The_Coca-Cola_Company https://www.ukessays.com/essays/marketing/marketing-plan-coca -cola-marketingessay.php https://www.slideserve.com/elise/coca-cola-amatil-strawberry-coca-cola-marketingplan?fbclid=IwAR2kAzj9TKEw5CXg7WJeWB3AVkmmeNghBBRSVpHgLsczCVF p8z0dCmfLajQ https://pestleanalysis.com/pestle-analysis-of-coca-cola/ https://market.us/statistics/food-and-beverage-companies/coca-cola-company/ https://www.fool.com/investing/2020/01/30/3-trends-behind-coca-colas-surprisinglystrong-ear.aspx https://bstrategyhub.com/swot-analysis-of-coca-cola-2019-coca-cola-swot-analysis/ https://notesmatic.com/2020/03/strengths-and-weaknesses-of-coca-cola-in-2020/

24

Vietnam-2020...