I.

COMPANY PROFILE

It's not surprising that Coca-Cola, probably the world's most recognized product(and
certainly its most popular soft drink) has spawned a wide variety of popular stories about its
origin, its effects, and the ingredients used in Coke's famous "secret formula:" Most of these
tales, such as the ones about Coca Cola dissolving teeth, it’s supposed contraceptive
powers, or the assertion that 1985s New Coke debacle was a Machiavellian gambit to divert
attention from a change from the original formula, are baseless. But the most frequently
heard story, that Coca-Cola originally contained cocaine, is, technically speaking, true.Coca-
Cola was invented in 1886 by John Pemberton, an Atlanta, Georgia, pharmacist. Pemberton
was actually trying to concoct a headache remedy, but once he mixed his special syrup with
carbonated water, and a few customers tasted the result, he realized that he had the
makings of a popular soda fountain beverage. The name Coca-Cola was coined by
Pemberton's bookkeeper, Frank Robinson, who also wrote out the new name in the
expressive script that has become Coca Cola signature logo.

Though the Coca-Cola Company apparently would rather not talk about the origin of its
name in detail, it's clear that Robinson derived "Coca-Cola" from two of the drink's
ingredients: cola from the cola nut, and extract of coca leaf, also the source of cocaine.
Cocaine was a common ingredient of nineteenth-century patent medicines, and by the
standards of the day Coca-Cola contained a minuscule amount that probably had no effect
on its consumers.

Still, by the early 1890s there was a rising tide of anti-cocaine sentiment, and Atlanta
businessman Asa Candler, who acquired the Coca Cola Company in 1891, steadily decreased
even the tiny amount of the drug in the recipe. There is some evidence that the only reason
Candler kept putting even minute amounts of coca extract in the drink was the belief that to
omit it entirely might cause Coca Cola, by then besieged by imitators, to lose its trademark.
In any event, Coca-Cola was completely cocaine free by 1929.The name Coke appeared in
popular usage as a short form of Coca-Cola just before World War I but was often applied as
a generic term to any cola drink (and used by Coca-Cola's competitors, including the now
long-defunct Coke Company)until 1940, when the U.S. Supreme Court ruled that the name
Coke rightfully belongs to the Coca-Cola Company. In financial circles, Coca-Cola has been
one of the strongest and most reliable trading stocks, showing a steady return in all of its
years of existence but one. Warren Buffet, one of the world's richest men, has always
touted Coca Cola as an essential in one's stock portfolio.

Coca-Cola Strengths – Internal Strategic Factors

1. Strong brand identity – Coca-Cola is a highly popular brand with a unique brand
identity. Its soft drinks are the most-selling drinks in history.
2. Highest brand equity – Coca-Cola is undoubtedly one of the most renowned brands
with the highest brand equity. It was also awarded ‘highest brand equity award’ in 2011
by Interbrand.
3. Extended global reach – It is sold in more than 200 countries with 9 billion servings per
day of Company products. It has introduced more than 500 new products globally. Some
of these are variations of Coca-Cola beverage, like Coco Cola Vanilla and Cherry Coca-
Cola. Its brands are known to touch every lifestyle and demography.

4. Greatest brand association and customer loyalty – Coca-Cola is considered one of US’s
most emotionally-connected brands. This valuable brand is associated with ‘happiness’
and has strong customer loyalty. Customers can quickly identify their particular taste.
Finding its substitutes is difficult for them. Moreover, Coca-Cola and Fanta have a huge
fan following than other beverage names in the industry.
5. Largest Brand Valuation – Coca-Cola is listed as the 3rd Best Global Brand on
Interbrand’s annual ranking. Having an estimated brand value of $79.96 billion, it has
retained the top position for many years.

Coca-Cola Weaknesses – Internal Strategic Factors

1. Aggressive competition with Pepsi – Pepsi is the biggest rival of Coca-Cola. Had it
not been Pepsi, Coca-Cola would have been the clear market leader in the beverage.
2. Product diversification – Coca-Cola has low product diversification. Where Pepsi has
launched many snacks items like Lays and Kurkure, Coca-Cola is lagging in this
segment. It gives Pepsi leverage over Coca-Cola.
3. Health concerns –Carbonated drinks are one of the major sources of sugar intake. It
results in two grave health issues – obesity and diabetes. Coca-Cola is the biggest
manufacturer of carbonated beverages. Many health experts have prohibited the
use of these soft drinks. It is a controversial issue for the company. However, Coca-
Cola hasn’t devised any health alternative or solution for this problem yet.

Coca-Cola Opportunities – External Strategic Factors

1. Introduce new products and diversify its segments – Coca-Cola has the opportunity
to introduce new offerings in health and food segments just like Pepsi. It can
contribute to their revenue, and they can branch out from carbonated drinks.
2. Increase presence in developing nations – Many regions with hot climate have the
highest consumption for cold drinks. Thus, increasing presence in such locations can
be excellent – Middle Eastern and African countries are a good example.
3. Bring advanced supply chain system – Coca Cola’s business is entirely dependent
upon logistics and supply chain. Transportation costs and fuel prices are always on
the rise. Thus, coming up with some advanced and improved systems for
distribution can be an opportunity.
4. Packaged drinking water – Coca-Cola owns several packaged drinking water brands
like Kinley. There is a great potential for expansion in this segment for Coca-Cola.
There is an opportunity to expand and bring more healthy drinks in the market to
avoid people’s criticism.

Coca-Cola Threats – External Strategic Factors

 1. Water usage controversy – Coca-Cola has faced many criticisms over its water
management issue. Many social and environmental groups have claimed that
the company has a vast consumption of water in water-scarce regions. Besides,
people have alleged that Coca-Cola is polluting water and mixing pesticides in
water to clear contaminants.
2. Packaging controversy – Greenpeace censured Coca-Cola in its published report
in 2017 for its use of single-use plastic bottles. It has also been criticized over its
recycling and renewable sources.
3. Direct and indirect competition – Although direct competition from Pepsi is
clear in the market, however, there are many other companies which are
indirectly competing with Coca-Cola. Starbucks, Costa Coffee, Tropicana, Lipton
juices, and Nescafe, are the indirect competitors of Coca-Cola which can
threaten its market position.

II. STATEMENT OF THE PROBLEM

For its biggest launch since Diet Coke, Coca-Cola identified a new market: 20- to40-year-
old men who liked the taste of Coke (but not its calories and carbs) and liked the no-calorie
aspect of Diet Coke (but not its taste or feminine image). C2, which had half the calories and
carbs and all the taste of original Coke, was introduced in2004 with a $50 million advertising
campaign. However, the budget couldn’t overcome the fact that C2’s benefits weren’t
distinctive enough. Men rejected the hybrid drink; they wanted full flavor with no calories or
carbs, not half the calories and carbs. And the low-carb trend turned out to be short-lived.
(Positioning a product to leverage a fad is a common mistake.) Why didn’t these issues
come? up before the launch? Sometimes market research is skewed by asking the wrong
questions or rendered useless by failing to look objectively at the results. New products can
take on a life of their own within an organization, becoming so hyped that there’s no turning
back. Coca-Cola’s management ultimately deemed C2 a failure. Worldwide case volume for
all three drinks grew by only 2% in 2004 (and growth in North America was flat), suggesting
that C2’s few sales came mostly at the expense of Coke and Diet Coke. The company learned
from its mistake, though: A year later it launched Coke Zero, a no-calorie, full-flavor product
that can be found on shelves and in men’s hands today.

III. ALTERNATIVE COURSES OF ACTION

Coca-Cola already had a big name in the industry they belong. However, they must be very
careful when it comes to taking risks in launching a new product without making people
want it.

1. Product Development – Coca-Cola innovated the C2 and introduce the Coke Zero.
 2. Product Concept –emphasizing the benefits or the contents of the product could help to
attract the consumers.

3. Test Marketing– Coca-Cola must perform this where the product and its marketing plan
are exposed to a carefully chosen sample of the population for deciding if to reject it
before its full-scale launch.

IV. RECOMMENDATION

Based on the above SWOT analysis of Coca-Cola, we can conclude that Coca-Cola has a
definitive market position in the soda industry. However, it is recommended to bring more
innovative changes.

Some recommendations are explained as follows:

1. Stepping into the food market – Coca-Cola needs to introduce new products in snacks
and food segments.
2. Focusing on health-related matters – It should bring some solution to address the rising
health concerns from social activists.
3. Improving its water management system and dealing with the criticisms from
environmental agencies.
4. Expanding into developing countries with humid temperatures – There are many
products of Coca-Cola like Fuze Tea, Dasani and Hi-C which aren’t distributed in many
developing countries. Coca-Cola needs to increase the distribution of such products.
5. Increasing the distribution of packaged drinking water like Kinley.
6. Working on sustainability and green marketing It can improve its brand image in the
market.

V. IMPLEMENTATION PROGRAM

Change management strategies are recommended for The Coca-Cola Company which
can improve the success of the implementation plan. The organizational change
management strategies to be applied for The Coca-Cola Company are a combination of
generic, grand, and international strategies as well as value disciplines. Generic strategies in
the cost leadership strategy will provide The Coca-Cola Company with product positioning
through strategic pricing methods as compared to key competitors in the industry by
reducing production costs as well as producing products on a large scale to minimize
operating costs. Value disciples in operational excellence is another strategy to be applied.
Operational excellence has key drivers that are geared towards product volume, costs, and
efficiency. This strategy has the potential to streamline the processes as well as
standardization of products to reduce costs which works well in conjunction with the focus
leadership strategy.
 Grand strategies are aimed in achieving the long-term goals and objectives of The Coca-
Cola Company. While there are different types of grand strategies that are available, for The
Coca-Cola Company these grand strategies are focused on growth. This can be achieved by
implementing growth strategies that focus on expansion through operations, product
development by modifying existing products that can be remarketed to consumers as well
as introducing new products to consumers to earn premium margins for new products and
horizontal integration by acquisition growth of similar companies.

Because the Coca-Cola Company operates in the domestic market and the international
market, applying international strategies for the company should be considered.
International strategies should focus on globalization. Since the Coca-Cola Company has
already established recognizable logos and trademarks as well as the foundation of the
company operating in soda production, The Coca-Cola Company can maximize on efficiency
along with continued investment in the company as a global strategy.

VI. MANAGEMENT LESSONS LEARNED

Coca Cola strategies are very well developed and executed a fact that can be explained
by the performance of the company. The company should now invest more of products that
are deemed to be healthy since the segment is growing on an alarming rate. In this case, I
recommend performing all the suggested courses of action but it’s best to do the test
marketing to know if the product will attract the consumers and will achieve high sales and
profit to cover the expenses if ever the product was launched.