Coca Cola

Presentation
Introduction of Coca Cola Company
Introduction

Pricing Strategy for Business Markets

Supply Chain Management for Logistics

Business Market Segmentation

Road Map
History
Some Interesting Facts
About
Company Profile
Mission & Vision
Market Share
Pricing Strategy
 1886 1891

Coca Cola Coca Colas first

BORN
In a drug store
BOTTLING
occurred
 1899 1909

The first 400Coca-Cola

AGREEMENT BOTTLING
bottling plants
was done were operating
 1930 1960

The company started New

GLOBALY BRANDS
moving

were Introduced
 1950 1977 1993

Entry of Coca Re-entry of

Cola in India Coca Cola in
India
1977 exit of 2003 Ban
Coca Cola on Coke &
Pepsi
Some Interesting Facts About

Coca Cola
 Coca-Cola was made for the

headache
cure of

and other illnesses

Sales for the first year
were only

$50
 Only
9
servings of the soft drink were sold

each day
Now number of coke bottles sold each da

1.9 billion
In more than 200 countries.
Coca-Cola
is themost recognized word in
the world after

Okay
 In 2016 In 2016

201 B
Enterprise Value
2095 B
Total GDP
Total number of Coca-Cola Products

3,500
Number of worldwide Coke employees

150,900
Company Profile
Name The Coca Cola Company
Industries served Beverages
Geographic areas
served
Worldwide

Headquarters Atlanta, Georgia, U.S.

Current CEO Muhtar Kent

Revenue $ 48.01 billion (2012)

Profit $ 9.01 billion (2012)

Employees 150,900
Mission
To refresh the world...

To inspire moments of optimism and

happiness...

To create value and make a difference.

Vision
People:Be a great place to work where
people are inspired to be the best they can be.

Portfolio:Bring to the world a portfolio of

quality beverage brands that anticipate and
satisfy people's desires and needs.

Partners:Nurture a winning network of

customers and suppliers, together we create
mutual, enduring value.
Vision
Planet:Be a responsible citizen that
makes a difference by helping build and
support sustainable communities.

Profit:Maximize long-term return to

shareowners while being mindful of our
overall responsibilities.

Productivity:Be a highly effective, lean

and fast-moving organization.
Values
Focus on the Market
Work Smart
Act Like Owners
Be the Brand
Worldwide Share
Market Share in India

Others; 3%

Coca-Cola; 60%
Pepsi; 37%
Global Competitors
PepsiCo Inc.
Dr Pepper
Snapple Group, Inc.
Unilever,
Groupe Danone,
Kraft Foods Inc.,
Nestl S.A. and others.
Some Local Competitors
Main Competitor
Pepsi
Other Competitors
Hector Beverages
Parle Agro
Introduction of Coca Cola Company
Introduction

Pricing Strategy for Business Markets

Supply Chain Management for Logistics

Business Market Segmentation

PRICING STRATEGIES
 Price
Earlier Coke used cost based pricing
As competition started, now Coke has
competitive pricing
shifted to

strategy
VS
 COCA COLA KEY PRICING
STRATEGIES
Three Basic Strategies
H - Charging premium price, top end of marke
- New, Unique or Luxury products
SKIMMING - Risky when strong competition or low
perception of value

- Set as going market rate (by competito

MARKET - To preserve stability. Activity focused o
product, distribution and promotions
PRICING e.g. Coca Cola / Cereals

- Charging a low price to achieve highest

possible sales.
PENETRATION - Facing high competition & low incomes
- Long term profit if high market share.
PRICING - Can result in low profits / undermine
L brand image.
COCA COLA - Alternative Pricing
Strategies
Six Alternative Strategie
Cost plus: Cost of manufacturing plus small margin

Target Profit: To achieve specific % profit (margin)

Breakeven: Price at which revenue covers cost

Perceived Value: what customer will pay

Sealed bidding: b2b / house purchases

Internet based: comparison with others

ILLEGAL: Grey market / Dumping / Price Fixing

COCA COLA - Alternative Pricing
Strategies
To determine price, Coke used a cost-based pricing
system for its Original Coke. They first designed the
Cost Based product, the original coke, determined the costs for
Pricing the product (product costs, capital costs, and
operational costs), set a price based on the cost of
Coke, and finally convinced the consumers of the
soda's value
Market Coke chose to use market-penetration pricing
Penetration for it's price. Here, they set low initial prices in
order to attract a large number of buyers quickly, to
Pricing gain a large market share.

Coca Cola products to meet the competition

against major players like Pepsi, products pricing is
Competition Based set around the same level of competition. So, their
pricing primary strategy is Market Price because they
believe price should not be too low or too high than
the price competitor is charging from. Their
customers otherwise nobody will buy your product.
Introduction of Coca Cola Company
Introduction

Pricing Strategy for Business Markets

Supply Chain Management for Logistics

Business Market Segmentation

Supply Chain Management
Supply chain management is the management of network
of interconnected businesses involved in the ultimate
provision of goods and services required by the end
customer

Right Product At Right Place

Right Quantity At Right Time

Right Quality At Right Value

Supply Chain Management of Coca cola
company
 Significance of the Supply chain

Coca-Cola works closely with its bottlers

around the world on procurement and
7
6
commercializing new products and new
packaging technologies

5
The area that requires
refrigerated distribution, that is a
very different supply chain than

4
if its an ambient type of product
The level of customer
care Coca-Cola offers

3
The logistics flow of the requires a specific
supply chain enables the model of supply chain
company to tailor its services structure; it is called
to its clients needs. segmentation
customer-driven
supply chain.
2 Coca-Cola is the same formula
everywhere in the world. The
concentrate comes from a few places

1
around the world

They do direct store delivery to

more than 10 million of those [retail
outlets].
Logistics
PARAMETERS

1) Average order size

a) Distributor to company Based on Demand, Season
b) Retailer to Distributer

2) Order placement
a) Distributor to company Phone
b) Retailer to distributer Distributor Representative

3) Transit Time 2 Days

4) Order frequency Daily

Logistics
PARAMETERS
5) Inventory Maintained 1 day
6) Unsold/Damaged
Replaced
Merchandise
a) A/C Keeping
7) Technology b) Stock keeping
c) Complaint Handling
8) Mode of Transportation Company vehicle
(company to distributor)
9) Transportation Expenses
a) Company to Distributor Company
b) Distributor to retailer Distributor
10)Warehousing
a) Storage Capacity Minimum 30 m2
b) Ownership Owned / Rented
11) Stock keeping
Stock keeper
responsibility
Flow of The Product

9am-6pm 11pm-6am
Pre-seller goes Order is
on his route Order is processed Loading the
and books the registered on Load sheet is vehicles is
orders the server released done by the
through GPRS C&F people
9am- 6pm on the spot 6pm-11pm

On a
tablet or
Blackberr
y
Flow of The Product
9.30am-
8.30pm 11pm
First vehicles Trucks return
leaves at 6am Product to depot Records are
All vehicles delivery Unloading tallied
leave by Empty bottles takes place Cash
9.30am are collected submission
6am-9.30am 8.30pm-11pm

Cannot Only cash

take more except for a
than few
order
Introduction of Coca Cola Company
Introduction

Pricing Strategy for Business Markets

Supply Chain Management for Logistics

Business Market Segmentation

Business Model
Manufactures & distributes
Concentrates
Syrups

Bottlers make the final beverage through

COBO
FOBO

Each bottler has an exclusive territory

Actual formulations are tightly held trade

secrets
Business Model
Coca-Cola India Manufactures
Concentrate, Beverage
base and Syrup

Regional Bottlers Manufactures finished

COBO/FOBO Bottles/Cans/Fountain
Syrup

Customers

Consumers
Market Classification
Market Classification

Geographical Area Competition

Geographical
Internationally Coke segments its product
Country & region wise
Variations as per tastes & income

Competition
Presence of players such as:
Pepsi
RC Cola
Segmentation Model
Outlet Type

Channel Clustering Based

on Consumption Occasion
Grocery

Restaurant
Market Clustering
Based on Income
Level of Locality

Outlet Clustering
Convenience

Outlet Volume

G
Si
Br

D
ol

ia
lv
on

d
er

m
Lo

on
e
w

d
<200 200-499 500-799 >800
M
ed
iu

Consumer
Hi

m
gh

Choice
Thank You