Introduction

'We strive to reIresh the world, inspire moments oI optimism and happiness, create value and
make a diIIerence, with this mission Irom the last 125 year`s Coca-Cola today is the biggest
beverage organisation in the world.
Coke now have about 3500 beverages, 500 brands and sell 1.7 billion servings every day in
over 200 countries. Coke is growing their reach, strengthening their brands and advancing
their global momentum, every moment oI every day.
Coca Cola markets a variety oI beverages which includes carbonated drinks, water, Iruit
juices, juice drinks, tea, coIIees, energy drinks and sports drinks. Headquarters at Georgia,
Atlanta, they employ more than 139,600 employees around the globe.
The Company`s main Iocus is to develop concentrates, beverage bases and syrups, which are
then sold to bottling Iirms that comprise the world`s biggest beverage distribution system. In
addition to product improvement, the organisation plays a major role in product marketing
which enables them to Iigure out and meet the ever changing beverage wants and desires oI
their consumers around the world. Their Iocus is on promotional activities which include
publications and electronic media, internet, sponsorship, hoardings, contests and package
design.
Coke is known as the globes most admirable brand. The company has been intensely
successIul in international marketing, and experts indicate that this success is largely based
on product innovation and adaption (Lamb, Hair & Mc Daniels, p. 114).
Coca Cola`s symbol is known worldwide, no matter in what language it is printed. Research
have also shown that Coke is among the most popular and admired trademarks in the world.
In Iact, it is documented that 'Coca-Cola is the second-most widely understood term in the
world, aIter 'okay.

!08tal Analy8i8 of Coca Cola
The Iactors that take place outside the organisation which will have impact on the
organisation are called Macro environmental Iactors. It is not possible Ior any company to
survive without being aIIected by the environmental activities. Changes in the tax rates, laws,
governmental policies, barriers in trade, in laws and demographic changes are all examples oI
macro environmental changes. Macro environmental Iactors reIerred by PESTAL are:
O Political
O Economic
O Social
O Technology
O Legislation
O Environmental
!olitical Analy8i8 for Coca-Cola
Political Iactors reIer to the changes in the government policies aIIecting the company in any
ways. These include trade restrictions, tax policies, laws on recruitment, environmental
policies, services provided by the government and amount oI goods permitted by the
government.
Coke is not an alcoholic drink and hence it comes under FDA (Food and drug
administration) which checks and certiIies the ingredients used in manuIacturing oI Coke
weather it is meeting the standard oI that particular country. The company also has to Iollow
the rules imposed by FDA Ior the plastic bottles used in their product.
Apart Irom this the other political Iactors that inIluence the company are accounting
standards and tax policies. The accounting standards used by the company changes time to
time. Changes in income tax policies and excise duties has a major eIIect on proIits oI the
company.
Moreover, any changes in government or any kind oI political protest may hamper the
product demand. War in a country like Iraq can also have an adverse eIIect on International
market oI the Iirm.
Economic Analy8i8 for Coca-Cola
BeIore venturing into any country the company Iirst analysis the economic condition oI the
country as the purchasing power oI the people depends on the economic growth oI the
country. It gives the marketer a good chance to market their product. Coke has identiIied this
correctly and rightly started their distribution in various countries. Company`s net operating
proIit outside US is 72 and it uses 63 various types oI currency other than US Dollar.
Hence there is a deIinite impact in the revenue due to the Iluctuating Ioreign currency
exchange rates. A strong and weak currency tends to aIIect the exporting oI the products
globally.
Interest rates are the rates which are imposed on the company Ior the money they have
borrowed Irom government. When there is an increase in the interest rates, it may deter the
company in Iurther investment as the cost Ior borrowing is higher. Coca Cola uses derivative
Iinancial instruments to cope up with the Iluctuating interest rates. Interest rates and wage
rate go hand in hand, when there is a rise in inIlation, employee demand Ior a higher wage
rate to cope up with the cost oI living.
This comes as additional cost Ior the company which cannot be added in the price oI the Iinal
product as the competition and the risk in this segment is higher. More over as the inIlation
rate rises there is a drastic Iall in consumers purchasing power which is a threat to the
industry and can Iorce the consumer to change to other product Ior little cost or consequence.
$ocial Analy8i8
The Cultural outlook and attitude, health awareness among people, growth in population with
age allocation, and importance to saIety are all the examples oI social Iactors. The
organisation has to adjust itselI to the changing society. The company adapts various
management strategies to adapt to these social trends.
Many people around the globe are now practising healthier liIe style. People are now
switching to healthier options like juices, bottled water, diet colas etc. and this is aIIecting the
demand oI Coca Cola.

Coke is Iacing a signiIicant challenge Irom the growing awareness among consumers,
government agencies and public health proIessionals oI all the possible health problems
associated with inactive liIestyle and obesity.

Obesity is a critical and major health problem oI the public, realising this the company has
committed to their consumers with the wide range oI products, which includes bottled water,
diet, juice and energy drinks.


%0chnological Analy8i8 for Coca-Cola
Technology is most important tool which can be used to create opportunity Ior newly
launched products. It is also eIIective in marketing and promotion oI any brand to a wide
audience at a lightning speed Ior ex. television, internet and e-commerce.
Also the special eIIects technology used on internet and television makes product look
appealing and help`s in selling oI the products.

Coca Cola sales have increased by introducing new plastic bottles and cans as they are easy
to take away and one can bin them aIter the use.

Introduction oI certain machines Irom the latest advancement in technology has enhanced the
production oI the Coke tremendously helping them to meet the increasing demands.

Coke had Europe's biggest soIt drink Iactory which can produce Coke cans Iaster than bullets
Irom a machine gun.

Environm0ntal factor8
Environmental planning oI Coke is Iocused on the areas like sustainable packaging, water
stewardship, energy management and climate protection. Coca Cola used around 300 billion
litres oI water in 2007 in manuIacturing oI beverages in their plants. In order to meet the
water needs and to improve community water access the company made an eIIort towards
water stewardship. Coca cola in 2007, announced that the company will return to the
community, the same amount oI water which is used in the production and their beverages.
The company calls this as water neutrality. The company did this by reducing the water usage
in their beverage production, recycling the water used in manuIacturing process and stock
water Irom nature and communities through various projects and partnership`s.
Coke also advanced their packaging Iramework in such a way that the packaging can be re
used in Iuture. The company in addition also eliminated Iorty million pounds oI plastic every
year in U.S alone by setting speciIic global targets oI smaller cap Ior pet bottles.
L0gal factor8
Advances in the legal and political environment strongly aIIect marketing decisions oI a
Iirm. Changes in government policies and laws comprise oI legal Iactors.

In 1970's, Coke denied and stopped working in India Ior almost 16years. India wanted to
know the Iormula Irom Coke so as to do the business in India.

In Belgium 100 children got Iood poisoning with the consumption oI Coca Cola because oI
this the Commission oI Europe has suggested European countries to ban Coke and the reason
behind was the higher amount oI carbon dioxide used in the drinks.

In India there was a protest against Coca Cola production. People believe that Coke is
depleting groundwater. Not only this there also was a controversy oI the existence oI harmIul
chemicals and pesticides in bottled products including Coca Cola. Production and sale oI
Coke, along with other soIt drinks was initially banned in Kerala, state in India beIore the
High Court overturned the ban stating that only the Iederal government can ban Iood product.


Conclu8ion

Coca Cola will have to concentrate on environmental saIety and sustainability. These are the
major treats that organization is Iacing than any other matters. Expansions oI markets and
Iinding new market are important Ior any business in order to maintain the No 1 position and
hence Coca Cola should also expand in rural areas as rural areas are more potential and Coca
Cola will be able to grow their market share easier to capture the market share. Avoiding
controversies and building good image is also essential. Focusing on health awareness by
introducing advanced and healthy drinks will help the company to sustain in Iuture.




ark0ting ix for Coca-Cola
Marketing Mix is the most important level oI Marketing Planning. The marketing strategy Ior
all brands are discovered here. The marketing mix mentions the blend oI the Iour P`s and
they are product, promotion, price and place that Iorms the base oI marketing
strategy. Marketing mix is made to satisIy the desire oI the target market and also to achieve
the goal oI the company.

!roduct

In marketing the product not only deals with physical object but it also means services, such
as holiday package, insurance, telecom service, or a movie, which can satisIy consumer`s
needs where a consumer can get all the beneIits without owning any physical product.

Consumers buy a particular product considering its quality and standards. Coke over a period
oI time has proved its high standard and quality to its consumers. Coca Cola also has a
variety oI products Ior all types oI markets such as diet coke, juices, sports drink and water
Ior health conscious people, tea and coIIee etc. Coca Cola Ior its products Ieedback and to
improvise on it has also oIIered a call centre service to their consumers.

!o8itioning

Once a Iirm has a complete knowledge oI its target market, product and has the market
segments to compete with, the positioning strategy can be established. Positioning is making
an image oI the product in the mind oI consumers, comparative to competing products.

Positioning attracts the customers and also helps them to understand the uniqueness about the
products when compared to other competitive product. Coca Cola has used the direct
comparison with other competing products technique in order to position their products in the
target segment oI market. People have a tendency to remember a product by comparing it to
another, and hence the well-known battle between Coke and Pepsi came into picture.

randing

It is diIIicult to know what makes a consumer purchase one product over another.
Every company spends huge amount oI money to win the consumers and take them Irom
their competitors who market similar products, but no doubt that the deciding Iactor is more
oIten the popularity oI the brand. Coke has spent millions in promoting and developing their
brand name, resulting in worldwide acceptance.

!ackaging

Packaging, which is taken very seriously by all businesses, is a major Iactor to be considered
in marketing mix. Proper Packaging protects the product Irom damaging during
transportation and during display; it also attracts the consumers to buy a particular product
over another. It also promotes the product and helps consumers to distinguish it Irom the
competition.

Promotional schemes can be designed with the help oI packaging, which can generate good
revenue. Coke has made good proIits by its unique packaging with has endorsements on it
which increased its sales.

!ric0

Supply and demand oI Coke depends on the price oI its beverages hence price is a major
Iactor to be considered during marketing mix strategy.

A consumer`s decision to buy a particular product mostly depends on the price oI that
product. Coke has to keep a competitive price in order to push the customer to buy its product
over other similar products and this is the reason why to the pricing policies are designed
keeping consumers and external inIluences in mind, prising is also important to eIIectively
achieve revenue targets and covering the manuIacturing and promotion costs.

Price tactic are substantial to Coke as it is the price which decides the demand and sales oI
the product. Companies have to keep a price that looks reasonable to the consumers and to
make good amount oI proIit.

An example oI a good prising strategy is the Iight between Coke and Pepsi as all companies
tries to compete with one other to give the best pricing in the market Ior customer acceptance
and satisIaction. Coke is the top most in the industry, and the reason behind this is Coke had
sacriIiced many short term proIits to gain recognition and make long term proIits in Iuture.

!ricing 0thod8

Right Pricing methods are based on an evaluation oI what target customers want to pay, and
quality oI the product. For a higher price, consumer may not buy that product and would
switch or Iind other similar kind oI products or services which are cheaper. II the price is very
low, It will be diIIicult Ior a Iirm to make proIits or even to cover the cost oI production and
promotion and the business can be in loss.
There are various methods oI pricing which includes, Market based, Cost based and
Competition based Pricing. Coke has been using Competition based prising method where it
has made major loses but also over a period oI time regained its strength as this method
allowed Coke to compete more eIIiciently in the beverage industry.

!romotion

In today`s competitive environment where there are thousands oI companies with the wide
range oI products are in a rat race to maximise their market share and giving a tough
competition to each other. Persuasive communication with the aimed market is important Ior
the success oI the product and organisation.

Promotion in marketing mix is designed to convince, attract and inIorm the target market
about the product or a service oI the company. Promotion is also used to brainwash the
customers to except a new product, or to stick to an old product.

Product promotion is the blend oI advertising, sales, public relations and sales promotions.
Promotions reIer to advertising through the means oI television, hoardings, transport and
radio, in magazines and newspapers.

As the target audience is most likely to be exposed to media such as TV, radio, newspapers
and magazines, Coke is using these source in its promotion Ior the majority oI its products.
Even though advertising is a major expense to the company, it is the most productive way oI
brain storming and exploring potential customers to Coke Products. Coke also utilizes
promotions such as Iree samples, contests and coupons. These activities are an eIIective way
oI selling your product to people at a go.

!lac0 and Di8tribution

Distribution oI the product- the ways oI getting the product to the market is one oI the critical
Iactors in the marketing mix.

One main Ieature oI the Place and Distribution Iactor is the distribution channels that Coke
has selected to sell and its product. Selecting the most eIIective distribution channel is very
important, as it will determine the cost and sales levels.

Coca Cola had a choice oI Iour distribution strategies, these are: selective, intensive direct
and exclusive distribution. Coca Cola used the intensive distribution method to capture the
market share extensively within a shorter time and this was done by making the product
available everywhere at every possible place.

Comp0titiv0 Advantag0

L0ad0r8hip Coke FEMSA is the biggest bottler oI Coca-Cola beverages in America in
terms oI total sales volume in 2006, hence the Iirm is also the world`s second largest Coca-
Cola bottler.

anag0m0nt Exp0rti80 Coca-Cola FEMSA also oIIers world class management training to
executives` to enhance the capabilities and exchange experiences.

Innovativ0 partn0r8hip Coca-Cola FEMSA together with Coke works to cultivate
advanced business models and to maximise sales revenue.

1oint-v0ntur0 Coca-Cola FEMSA together with Coke agreed to takeover Jugos del Valle,
the biggest juice manuIacturing company in Brazil and Mexico this will considerably
increase their presence in Latin America`s under-captured beverage segment.

Cu8tom0r R0lation8hip8 Coca-Cola FEMSA is excellent in its customer relationships. The
company`s Focus is to tailor its extensive portIolio oI beverages and packages according to
the consumer requirements.

$trong brand portfolio The company oIIers a good portIolio oI beverages to its customers
and keeps on adding new promising beverage categories to capture larger market share in
diIIerent segments oI market. In order to get closer to its customers and satisIy there changing
needs, Coke has opened many one-stop shops Ior it`s consumers in Brazil by oIIering a
complete range oI beverages - like sparkling drinks, packaged water, juices, and beer.

D0dicat0d organizational, production proc08808 Coke`s has a dedicated team members
involved in processes related to organization and production and they are very prompt in
handling any kind oI competitive, socio political and economic, changes in environments.

Inv0ntiv0 bu8in088 8olution8 Coke continuously tries to increase its manuIacturing and
distribution capacity to maximize operating eIIiciency.

l0xibl0 $tructur0 Coke has a strong structure to take care oI all the challenges related to
cost cuttings across the industry and to maximise proIit with strong branding and promotion.


Conclu8ion
Coca Cola should concentrate on saIety and sustainability rather than proIit and revenue
generation. There are many environmental and legal issues which Coke is Iacing in India
regarding ground water depletion and pollution which is not only giving negative publicity to
Coke but is also a threat Ior its sustainability in India .
In 2003 the Pollution Control Board oI India has charged Coca Cola saying that, sludge Irom
Coke`s unit was Iound with high cadmium levels, lead and chromium which Coke denied but
this kind oI charges has major impact on the customers buying behavior and people are
avoiding Coke. These publishing beneIits the competitors to large extend. These are viewed
as exploitation by the competitors making use oI the situation.
Coca Cola should also Iocus on health problems and changing liIestyle oI their consumers.
Increasing awareness among people and growing health problem like obesity and diabetes is
a major challenge to the company. As Coca Cola contains soda and sugar which is the main
source oI calories, most oI the nutritionist advice to avoid drinking Coca Cola. Also drinking
oI Coke on a daily bases is harmIul to health in a long run.