Coca Cola Strategic Management PDF

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Chosen Organization: The Coca Cola Company PART 1 BUSINESS PERFORMANCE OF COCA COLA The Coca-Cola Company aims to come out as a better and stronger company from this pandemic with an outstanding portfolio of the fine brands, influential marketing, efficient modernization, as well as a hierarchal and ordered organizational structure. James Quincey, the CEO of Coca-Cola Company said that, “Throughout this year's crisis, our system has remained focused on its beverages for life strategy. We are accelerating our transformation that was already underway, shaping our company to recover faster than the broader economic recovery.” (Coca Cola, 2020). As far as the performance is concerned, the 2020 official report of the Coca Cola states that their Net Revenues decreased from 9%, i.e. to almost $8.7 billion. The non-GAAP organic revenues dropped around 6%. There was a 4% decline in Revenue performance of concentrate sales. On the other hand, the price/mix area observed a 3% downfall. The company reported improvement in trends versus the prior quarter, with revenue declines versus the prior year driven by enduring stress in away-from-home channels partly offset by continued growth in at-home channels (Coca Cola, 2020). COMPETITIVE ADVANTAGES Coca Cola is a globally important and well established brand with quite a lot of sources of competitive advantage. Being a soda market leader, it has competitive advantages like marketing, product quality, research as well as innovation, etc. Being a leading soda brand, its main rival is Pepsico. To make its mark, and be on the top, Coca Cola brings strength in some of its areas time to time to give a tough competition. Some of the on-going and prominent competitive advantages Coca Cola possess are: 1. Massive Distribution System The Coca-Cola Company is presently functioning in more than 200 countries around the world. And it has made its considerable existence in all of those nations uniformly. This all became possible and achievable due to the outstanding Supply Chain Management (SCM) of the company. It has reached to the locations where any other company did not reach. The company has institute a broad vending partnership association that has assisted it to turn out to be available in all circumstances. It also has a good relationship with the farmers and suppliers which helps it to maintain the quality and gathers data about a particular market. This vibrant and strong association is significantly responsible for the bigger sales margin which Coca Cola enjoys. 2. Unique Packaging The packaging itself is enough to gather the attention of the market and become a preferred one. And Coca-Cola is superior in this thing. It offers drinks in an identically fashioned bottle which is only one of its kinds than everyone else in the marketplace. The design of Coke’s bottle is motivated by the cocoa covering, making it similar to the drink’s taste. It operates as a silent merchant. You do not have to encourage people outwardly to purchase the beverage, the packaging speaks for itself. And for this reason, this company is still renowned as a noteworthy firm with outstanding, attractive packaging for its products.

3. Building a Networked Organization (for Growth): As per the recent report of the Coca Cola Company, it is establishing a complex structure that encompasses of operating units, Platform Services, category teams, as well as the headquarters. Working units will be extremely interrelated and will sit under the four existing geographic segments, with a concentration on local implementation. Category teams will coerce modernism, marketing competence as well as effectiveness in affiliation with working units. Platform Services will work on first-class services and capabilities internationally to the company, while the headquarters will provide strategy, supremacy with balance for international initiatives (Coca Cola, 2020). MARKET POSITION AND MARKET SHARE The company is currently leading the international market, leaving behind Pepsi and many other competitors. However, in the scenario of Covid-19 and economic downfall, the company lost its value share in total NARTD beverages as an underlying share gain was more than offset by negative channel mix (Coca Cola, 2020). The current market position is shown in the picture below:

TASK 2 STRATEGIC PLAN To be more precise and to design a particular strategy, we will specify the company’s operation in one country, for instance Coca Cola in Pakistan. In the Coca Cola Company, if we compare its own market share in Pakistan and in the world, it will be surprising to know that Pepsi beat Coke in Pakistan. However, it is quite opposite in the world (Ahmed, et al, 2016). Hence, it is suggested that Coca Cola should improvise its policies with the intention of giving tough time to Pepsi and attain high market share in Pakistan as it has done in the International Market. It absolutely draws attention towards the fact that there are some strategic issues that need to be evaluated and redesigned. Researchers analyzed the situation and came across the conclusion that Product Availability, Effective Distribution, and Product

Visibility are very important factors to design or redesign strategy for Coca Cola Pakistan. Therefore, this strategic plan is designed based on the research and by incorporating these factors. Objectives of the Plan It is important for any company to set the objectives in such a manner that they are SMART, i.e. Specific, Measureable, Achievable, Realistic and Time Based. When the objectives are set, it becomes easier for a company to design a plan over while keeping in mind what they want to achieve. For laying down a strategic plan for the Coca Cola Company in Pakistan, the following are some of the main objectives, keeping in mind the performance of the company.    

Redefining the distribution channels (for instance, Distributor, Wholesaler and Retailer) To increase the visibility as well as availability of the product around Pakistan in each corner Expansion of the Coca Cola Company’s product portfolios per Market Research (For instance, Sting of Pepsi) Making the communication strategies stronger. STRATEGIC ACTION PLAN Marketing Penetration Pricing Strategy and Distribution Channels

‘Product’ is one of the unique identification of the company and a valuable asset for the business. Products ate the elements that satisfy the needs and desires of the customers. While Coca Cola is performing well in the markets it is available in, but it needs to penetrate itself in new markets, and new channels of business distribution to make its mark. 

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Distribution Channels: Choosing appropriate distribution path is more significant to enlarge effective channel to deliver the company’s offering to its customers. Choice of effective distribution may lead success of the Coca Cola. There are numerous factors that seem to be useful in accomplishment for Coca Cola. For instance, the lead-time, transport as well as distance of distribution from purchaser, the end product line expansion is accessible at distribution end. Different sorts of distribution approaches that Coca Cola has to choose, the kind of distribution can be as following a) Intensive Distribution b) Selective Distribution c) Selective Distribution

If we look towards PepsiCo as a direct competitor of the Coca Cola Company, it utilizes all the distribution channels to put across their product and their media message to the customer. In the Intensive channel, Coca Cola is required to choose each retailer and every corner position for their product availability. Intensive distribution is always appropriate and successful particularly in FMCG as well as consumer familiar products or convincing product. Being a company which has beverages and snacks as their products, it needs to particularly aim for the intensive distribution, i.e. mass altitude of distribution. Product Life Cycle In Product Life Cycle there are diverse product process stages similar to ‘Born, Introduction, Growth, Maturity and Decline’ (Ahmed et al., 2016). In the western region such as Europe and USA, Coca Cola is on Maturity point meanwhile the sale remains on consecutive stage a slight probability to turn back sale in growth stage. It is a vivid chance for Coca Cola to focus on untouched market in Asia or those areas in

the globe where Coca Cola is still on fighting phase. This is the fruitful time for the company to make their communicational approach as exceptionally smart in the Asian, particularly Pakistani marketplace. Advertising and Promotion Strategy Coca Coal’s ads have been famous since a few years now. It is evident that the company is putting efforts in terms of content. However, the advertising strategy can get better by adding some flavor of interest and curiosity. One strategy could be the use of Bill Board advertising with a little more flavor and curiosity for their upcoming campaigns or offers; and bring unique ideas on outdoor adverting not only cultural advertisements and typical graphical trends. Coke Studio has been one of the best strategies used by Coca Cola; it needs to be revived through other platforms as well. During COVID-19, it has been neglected due to various reasons, but it is believed that it will be more beneficial for Coca Cola to remind its presence to people’s mind during lockdowns and the depressing situation. Along with that, it is widely known that the Asian people are dying-heart fans of Cricket. In this regard, Coca Cola is less prominent in the very important field of Pakistani people’s life. Therefore, the company needs to sponsor or organize different matches, tournaments, Pakistan Super League, etc. This is the only fertile time to get people visibility on peak level in the country. Additionally, it is one of the successful ways to make people recall your brand in their minds. Coca Cola can also take sponsorships on National level cricket kits for maximum visibility in people mind, just like Pepsi has been doing since so many years that the brand has established itself with cricket and its passion. TASK 3 Before taking this course, my approach towards the strategic management was vague. It was not clear to that how companies manage to build such great decisions and what those decisions cost them. After taking the course and the online activities, I personally improved a number of skills and learnt new things which are important for understanding any company’s growth and failures. The main thing I learnt is the importance of RESEARCH in designing a plan, making strategy or evaluating the performance of company in any domain. A systematic research helps an individual or an organization to draw factual data over which a precise and successful approach can be designed. Objectives that are followed by a systematically completed task reduce the risks of failure as well. Another thing I learnt is the importance of reflecting the strategies and redesigning them when the need arises. It is of utmost importance that a company evaluates its performance based on an ongoing strategy and sees what it lacks and what other companies are working on. For being successful, it is significant for any company to be proactive.

REFERENCES Ahmed, Rizwan & Kumar, Ajeet & Mujtaba, Muhammad & Jumani, Javed. (2016). Strategic Marketing Plan for Coca-Cola - 2016. 10.13140/RG.2.2.36229.96487. Coca-Cola Company (2020). Data retrieved from https://www.coca-colacompany.com/pressreleases/coca-cola-reports-third-quarter-2020-results#:~:text=Revenues%3A%20Net%20revenues %20declined%209,%25%20decline%20in%20price%2Fmix.&text=Earnings%20per%20share%3A%20EPS %20declined,)%20declined%202%25%20to%20%240.55....