Project

Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1of 18

EXECUTIVE SUMMARY

This report has been prepared with a specific purpose in mind. It outlines the information about the Coca-Cola Company .This report takes us through the present state of affairs of the beverage industry and Coca-Cola Company. The report contains a brief introduction of Coca-Cola India and a detailed view of the tasks, which have been undertaken to analyze the market of Coca-Cola i.e. we have performed vision-mission, PESTLE, SWOT, Industrial and Competitive, analysis of Coca-Cola Company in order to identify areas of potential growth for Coca-Cola.

The main objective of this project report is to analyze and study in efficient way the current position of CocaCola Company. The study also aims to perform Industrial Analysis of Coca-Cola Company & find out different factors effecting t h e g r o w t h o f C o c a - C o l a . A n o t h e r o b j e c t i v e o f t h e s t u d y w a s t o a n a l yz e v i s i o n a n d m i s s i o n o f c o c a c o l a a n d i t s c o m p e t i t o r a n d a l s o p e r f o r m Competitive analysis between Coca-Cola and its competitors.

INTRODUCTION
Brand Name: Coca-Cola Drink Type: Soft Drink

Coca-Cola: It is the most popular and biggest-selling soft drink in history, as well as the bestknown product in the world. Available in the following flavours : Mazaa, Diet coke Coca cola, Thumbs Up, Fanta, Limca, Sprite, Kinley,

Created in Atlanta, Georgia, by Dr. John S. Pemberton, Coca-Cola was first offered as a fountain beverage by mixing Coca-Cola syrup with carbonated water. Coca-Cola was introduced in 1886, patented in 1887, registered as a trademark in 1893 and by 1895 it was being sold in every state and territory in the United States. In 1899, The Coca-Cola Company began franchised bottling operations in the United States. Coca-Cola might owe its origins to the United States, but its popularity has made it truly universal. Today, you can find Coca-Cola in virtually every part of the world. From amongst the million companies across the globe we have selected this business for its strong business practices. The company, which we have identified for this project is Coca Cola. The main reason for selecting this company is that Coca -Cola has been ranked as a most popular soft drink in today world. Coca-Cola is a type of carbonated soft drink sold in stores ,restaurants in more than 200 countries. It is produced by The CocaCola Company which is often referred to as simply Coca-Cola or Coke. Coke is one of the worlds most recognizable and widely sold commercial brands. Pharmacist John Smith Pemberton invente d Coca Cola in 1884. According to the 2005Annual Report, the company sells beverage products in more than 200 countries. In general the Coca Cola Company (TCCC) only produces syrup concentrate, which is then sold to various bottlers throughout the world who hold a Coca Cola franchise. The Coca Cola Company offers nearly 400 brands in over 200 countries, besides its namesake Coca Cola beverage

VISION
Vision serves as the framework for company Roadmap and guides every aspect of a business by describing what they need to accomplish in order to continue achieving sustainable, quality growth. 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. 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.

MISSION
The Roadmap starts with the mission, which is enduring. It declares the purpose as a company and serves as the standard against which company weigh their actions and decisions. It is the foundation of company manifesto

To refresh the world in body, mind and spirit. ( Market, Customer, Philosophy) To inspire moments of optimism and happiness through the brands and action. (Product) To create value and make a difference. (self concept)

Analysis of Vision and Mission Statement of Coca- Cola Vision Analysis


While we talk about Vision statement of coca-cola, it simply tells us that this co. wants to achieve something new in future which will consist sustainability, quality and growth. This is not an easy task to achieve but apart from this, we can see that statement is clear and having brief meaning which explains a lot, about what coca-cola wants accordingly, Moreover this statement tells us that, they are going to achieve these 3 things which are sustainability, quality and growth by the help of 6 variables which are people, portfolio, partners, planet, profit and productivity. There people, partners, productivity and portfolio will give them to achieve better quality and growth in future where as there responsibility towards planet and partners will help them to achieve sustainability. So, vision of coca-cola is clear and good for future.

Mission Analysis
In mission statement of coca-cola company, it contains philosophy, self concept, customers, products, and services market. The mission statement is satisfactory because it is containing 5 components out of 9. Vision is clear and mission statement of coca-cola is also supporting its vision.

PEPSI is the competitor of COCA-COLA Vision and Mission of PEPSI VISION


PepsiCo's responsibility is to continually improve all aspects of the world in which we operate environmental, social, economic creating a better tomorrow than today. Vision is put into action through programmes and a focus on environmental stewardship, activities to benefit society and a commitment to build shareholder value by making PepsiCo a truly sustainable company.

MISSION
Mission is to be the world's premier consumer products company focused on convenient foods and beverages. They seek to produce financial rewards to investors even as co. provides opportunities for growth and enrichment to their employees, business partners and the communities in which we operate. And in everything they do, strive for honesty, fairness and integrity.

Analysis of vision and mission statement


So the overall vision and mission of PepsiCo is to increase the value of shareholder's investments. This is achieved through sales growth, cost controls and wise investment of resources. PepsiCo believes that their commercial success depends upon offering quality and value to their consumers and customers; providing products that are safe, wholesome, economically, efficient and environmentally sound; and providing a fair return to their investors while adhering to the highest standards of integrity.

Analysis of mission of coca-cola and its competitor PEPSI on the basis of parameters:
COMPANY Product services Market Technology Survival growth profit Customers Philosophy Self concept Public image EMP.

COCA COLA PEPSI

Yes yes

yes __

__ __

__ __

yes yes

Yes __

yes __

__ yes

__ yes

So, by comparing the analysis of both the beverage company we can say that coca cola is going good than pepsi as they are covering more parameters than Pepsi.

ANALYSIS OF INTERNAL AND EXTERNAL ENVIRONMENT OF COCACOLA

PESTLE ANALYSIS
It is a tool that helps the organization for making strategies and to know the EXTERNAL environment in which the organization is working and is going to work in the future. Coca-Cola beverage, which is the leading manufacturer and distributor of non-alcoholic drinks also need to undergo this PESTLE analysis to know about the external environment(especially their competitors and the opportunities available) in order to keep pace with the fast growing economy.

Political Analysis :
Political factors are how far a government intervenes in the operations of the company. As far as the political condition is concern, it is unstable in India currently but this is hardly going to effect the functioning of coca-cola.

ECONOMIC ANALYSIS:
Economically India is facing inflation thereby increasing the prices of the commodities, as India mostly consist of the middle class people who concentrate more on buying the products of basic necessity, thus the current economical situation will ultimately lead to decrease in the demand of beverages such as coca-cola which is considered to be least important.

SOCIAL ANALYSIS:
The majority of Indian citizens are exercising healthier lifestyles. That has strongly influenced the sales of non-alcoholic beverage sector customers are switching to bottled

water and diet colas like; Coca-Cola Light or Zero, instead of drinking beer or other beverages., because many Quality of lifestyle is increasing as the increasing of purchasing power and education. Socially it is acceptable in the society, as the influence can be seen by the regular use of it in the parties and marriages.

TECHNOLOGICAL ANALYSIS:
Some factors that affect the company's actual results to vary essentially from the expected results, are the following: Entrance of cans and plastic bottles in the past, have increased sales volume for the company because they are easier to carry and customers can bind them once they have been used. Since the technology is advancing continuously there has been entrance of new machineries' equipment all the time. Because of that, Coca-Cola's production volume has increased sharply compared to previous years.

LEGAL ANALYSIS:
In current scenario it has not undergone any legal conflict therefore the legal environment is neutral.

Environment Factors:
These factors include the environment such as the weather conditions and the seasons people prefer to buy cool beverages. Most of the Indian states face summer for the longer duration thereby increasing the demand for these beverages thus the environmental factor is favorable for coca-cola.

SWOT ANALYSIS
STRENGTH:
Worlds leading brand Large scale of operations Robust revenue growth in 3 segments

WEAKNESS:
Negative publicity Sluggish performance in north America Decline in cash from operating activities

OPPORTUNITIES:
Acquisitions Growing bottled water market Growing his panic population in us market

THREATS:
Intense competition Dependence on bottling partners Sluggish growth of carbonated beverages

INDUSTRIAL ANALYSIS
Threat of new entrant Low
Requirement of capital is very high. Coca-cola is seen not only as a beverage but as a brand and status It has a very significant market share and customers are not very likely to try a new brand beverage.

Threat of substitute products Medium to high


A large no of energy drinks available in the market Soda and different flavored products are also available in the market Coca-cola doesnt really have a different or special flavor If a blind taste test is taken, people couldnt tell the difference between CocaCola, and Pepsi.

Bargaining power of buyers High


The main competitor, Pepsi is priced almost the same as Coca-Cola Various alternatives at same price is available in market. Consumer could buy those new and less popular beverages with lower price.

Bargaining power of suppliers Low


The main ingredients for soft drink include carbonated water, phosphoric acid, sweetener, and caffeine. The suppliers are not concentrated or differentiated. Any supplier would not want to lose a big customer like Coca-Cola. Large number of suppliers are present in market.

Rivalry Among Existing Firms: High


Currently, the main competitor is Pepsi which also has a wide range of beverage products under its brand. They have more or less same taste products in their product line. As Coca-Cola has a longer history, it is advertised in a more classical approach while Pepsi tried to attract younger generation by using pop stars as brand ambassadors. Not only Pepsi but some other small players are also present in market.

So, from the above discussion we can conclude it by saying this:-

Five forces

High/Medium/Low

Remarks Because huge investment will be required as coke spends 100 crores on advertising. Because switching cost is very low. Because the raw material used by the soft drink industries is available from numerous domestic sources. Because many other alternatives are available in the market. Because there are large as well as small companies like National Beverage are present in market.

Threat of new entry

Low

Buyers bargaining power

High

Suppliers bargaining power

Low

Threat of substitute

Medium

Degree of rivalry

High

COMPETITION ANALYSIS
Key Success Factors
The CocaCola Company is one of the largest, most successful and m o s t w i d e l y recognized corporations in existence. Coca-Cola is a dominating force in the beverage industry and sets a very high standard of competition. Research shows that its trademark is recognized by over 94% of the worlds population. There are many factors contributing to Coca-Colas success, however, it is believed that their key success factors are-

1. T e c h n o l o g y R e l a t e d K S F "To continue to provide the highest level of service to The Coca -Cola Company by using technologies to improve efficiency, leverage existing knowledge, and proactively mitigate legal i s s u e s b y e d u c a t i n g c l i e n t s o n k e y i s s u e s a f f e c t i n g t h e C o m p a n y, w h i l e a t t h e s a m e t i m e recognizing the constraints of cost, supportability, and compatibility with the overall Company's Information Technology strategy. "The coca cola company has always worked for bringing in technological changes to meet the customer needs. 2. Manufacturing Related KSF There is lot of Manufacturing related key success factor of coke which are as: a .Quality Control If we talk about the coke quality control then we say that coke made in all o v e r t h e country under the license through which the consumer sees the consistency in coke taste due to this factor coke make it position good in market and capture a high market share. b. Customized Product Coke makes no customized products; all the product of coke will be standardized

3. Distribution related KSF a. S t r o n g D i r e c t S a l e b. S t r o n g D e a l e r N e t w o r k s Coke has a strong dealer network due to this you will easily find c o k e i n e v e r y place of the count.

Competitive Analysis
KSF Quality control Low cost production Supply chain management Clear advertisement Globalization Product innovation Brand positioning Convinient locations Taste Bottle design TOTAL Ratings Coke pepsi 10 9 10 10 9 9 9 9 9 9 9 93 8 6 9 8 8 7 9 7 8 79 weights others 5 5 4 5 2 4 3 3 2 0 33 weight*Ratings coke 5% 0.5 10% 8% 15% 15% 10% 6% 12% 15% 4% 100% 1 0.8 1.35 1.35 0.9 0.54 1.08 1.35 0.36 7.73 Pepsi 0.45 0.8 0.48 1.35 1.2 0.8 0.42 1.08 1.05 0.32 6.7 Others 0.25 0.5 0.32 0.75 0.3 0.4 0.18 0.36 0.3 0 2.61

CONCLUSION
After our studies and analysis of coca-cola beverage pvt ltd, we came up with a very interesting report of facts and figures. Coca-Cola is no doubt is one of the most popular beverage company and its product Coke is one of the most consumed cola drink. They spend billion of dollars on advertisement. PEPSI is a close competitor of Coca-Cola. Coca-Cola has always had a close consumer and supplier relationship with its customers. After doing industrial analysis we conclude that in beverage industry Threat of new entrant is low Bargaining power of buyer is high Bargaining power of supplier is low Threat of substitute is medium Degree of rivalry is high

BIBLIOGRAPHY

www.ask.com www.Scribd.com www.cocacola.com

You might also like