coca cola coperation

Introduction to Management Group Assignment BM007-IMT

Contents

1.0 Company Information of Coca-Cola Inc.................................................................................................2

1.1 Introduction......................................................................................................................................2

1.2 Issues (Internet Rumors)....................................................................................................................2

2.0 Mega environment contributing to The Coca Cola Company (TCCC) success........................................3

2.2 Technology.......................................................................................................................................5

2.2.1 Application of technology in Coca-Cola.....................................................................................5

3.0 Task forces contributing to The Coca Cola Company (TCCC) success.....................................................6

3.1 Target Market..................................................................................................................................6

3.1.1 Consumers.................................................................................................................................6

3.2 Competitors......................................................................................................................................7

3.2.1Coca-Cola’s Competitive Advantage........................................................................................8

4.0 Conclusion.............................................................................................................................................8

5.0 References.............................................................................................................................................9

6.0 Appendix............................................................................................................................................11

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1.0 Company Information of Coca-Cola Inc.

1.1 Introduction

Selling 1.3 billion beverage servings per day, the Coca-Cola Company is the world’s number

one maker of soft drink beverages. Coca-Cola’s trademark (red and white) is probably the

best known brand symbol in the world and is available in stores, restaurants and vending

machines across the world. The company was established in 1886 by Dr. (Doctor) John

Pemberton who was a pharmacist that time. Headquartered since its founding in USA,

Atlanta, Georgia, the Coca-Cola Company makes four (4) of the top five carbonated drinks in

the world, Coca-Cole at number one (1) and Diet Coke, Fanta, and Sprite at numbers three

(3) through five (5). This huge and extensive corporation operates one of the world’s most

pervasive distribution systems. This system allows the corporation to offer an estimate of

four hundred (400) beverage products in more than two hundred (200) countries worldwide.

Nearly 70 percent (%) of sales are generated outside North America with revenues coming

from different continents. Refer to appendix 1.0 for a revenue breakdown structure.

The formula and ingredients for Coca-Cole was invented by Dr. (Doctor) John Pemberton.

Till today, the formula and ingredients are kept a secret. This has aroused some issues or

internet rumors (information spread on the internet) about the ingredients used in Coca-Cola.

1.2 Issues (Internet Rumors)

Coca-Cola ingredients

There are so many rumors concerning Coca-Cola’s contained ingredients. Even so, the

one rumor that stood out and actually had an impact to Coca-Cola was the “Cancer fear

over Coca-Cola’s colorings”. An influential group of people have claimed an ingredient

used in Coca-Cola is a cancer risk and that it must be banned. These concerns relate to an

artificial brown coloring agent. The caramel coloring used in Coca-Cola is contaminated

with two cancer-causing chemicals. This has led to investigations by researchers from the

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University of California and CSPI (Center for Science in the Public Interest) however,

results still remain inconclusive.

The have been rumors and leaks claiming that Coca-Cola’s secret recipe had been leaked

into society. It was suggested that it might be possible to recreate the taste and look of the

beverage. However, these claims were denied by the company, and was addressed by a

spokesman “Many third parties have tried to crack our secret formula. Try as they might,

they have been unsuccessful because there is only one Real Thing” Katie J. Bayne

(2008). In continuation, the spokesman further went on denying CSPI’s stamen and

mentioned that there beverages are completely safe.

2.0 Mega environment contributing to The Coca Cola Company (TCCC) success

2.1 International (Coca-Cola Global Connection using CCI)

In terms of sales volume, Coca-Cola İçecek (CCI) is the sixth (6th) largest bottler in the

Coca-Cola System. CCI’s core business function is to produce, sell and distribute

sparkling and still beverages. CCI employs ten thousand (10,000) people and has

operations in;

Turkey (appendix 2.0)

Pakistan (appendix 3.0)

Kazakhstan (appendix 4.0)

Azerbaijan (appendix 5.0)

Kyrgyzstan (appendix 6.0)

Turkmenistan ( appendix 7.0)

Jordan (appendix 8.0)

Iraq (appendix 9.0)

Syria (appendix 10.0)

And exports to Tajikistan (appendix 11.0)

(Please refer to the listed appendices for further details) CCI has a total of twenty (20)

plants and offers a wide range of beverages to an estimate consumer base of 360 million

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people. Coca Cola’s product portfolio goes beyond sparking beverages, the product

portfolio includes juices, waters, sports and energy drinks, tea and iced teas.

The Coca-Cola Company Uses the CCI system in ten (10) countries and is headquartered

in Turkey. CCI owns 99.96% of the shares that sells and distributes the Coca-Cola

company products in Turkey. Figure 2.0 shows the CCI Corporate Structure.

CCI (Turkey Operation) looks to expand its product portfolio in terms of packaging and

prices to provide a broader range of choice to consumers. Refer to appendix 2.1 for

Turkey’s product range.

CCI’s shares are traded on the Istanbul stock Exchange under the CCOLA.IS ticker and

its depository receipts are traded on the London Stock Exchange under the CICE (Coca

Cola Icecek A.S).LI ticker

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Figure 2.0

http://www.cci.com.tr/en/investor-relations/cci-at-a-glance/shareholder-structure/


2.2 Technology

In today’s marketplace, technology is a key player in helping a business stay profitable.

Coca-Cola Company invests in technological research to find ways to become more

efficient and ultimately better competitors. The Coca-Cola Company (TCCC) address

external technological threats by investing directly in applied research to improve

recording and monitoring of the sales, production and delivery process between the Coca-

Cola Company and the bottling companies, thus, introducing a device known as a “

2.2.1 Application of technology in Coca-Cola

The Coca-Cola Company uses technology to achieve efficiency and productivity at the

same time. Figure 3.0 shows a communication device within the CCI system.

This device allows CCI to connect with its

country distributors. Turkey distributes these devices to all nine countries (CCI channel).

These nine countries will use this device to order Coca-Cola products from the

Headquarters in turkey. The device will show how many orders have been made of a

particular product and will be saved. In turn, Coca-Cola retailers within those countries

will also use this device to order products from the Coca-Cola’s warehouse of that

country and will be delivered to these retailers. This device proves useful as it keeps

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Figure 3.0


records of supply and quantity and proves as a useful type of technology for efficiency

and productivity.

3.0 Task forces contributing to The Coca Cola Company (TCCC) success

3.1 Target Market

Coca-Cola’s primary target market is all consumers of all nations that have a thirst for

high-quality beverage from a reputable brand that cares about small communities and

saving the environment. The Coca-Cola Company (TCCC) is well known for advertising

to persons of all ages, genders, income, ethnicity and lifestyles. Over the last decade (10

Years), the Coca-Cola Company has focused on a secondary target market that is based

on specific psycho-graphic characteristics, of consumers that are health conscious and

interested in buying products to support their overall wellness. The Company has reached

this market through many product lines and has customized their website to provide

healthy resources and marketing of products that are considered smart choice.

3.1.1 Consumers

The Coca-Cola Company looks after and caters to consumer demands. They have created

different types of products to cater to each consumer. For instance, Coca-Cola launched

products for consumers who are concerned about health to ageing consumers (elderly

consumers). The following are the different products released for consumers;

Diet Coke, this product was made and designed for consumers who

were/are health conscious

Coke Zero, this beverage was designed for you men between the ages of

eighteen (18) and thirty four (34)

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Diet Coke Plus is designed for consumers who are more health conscious

and still desire a sweeter taste with more vitamins and mineral

Coca-Cola Blak is designed for older more sophisticated consumers who are

willing to pay more

3.2 Competitors

The needs and tastes for the average consumers are ever changing. With trends that focus

on health and nutrition and the concerns with obesity, many consumers are changing their

behaviors and product choices. Bottled water, energy drinks and tea products have

become favored as opposed to the soft drink. This provides an external threat to the Coca-

Cola Company as these changes have allowed and increase in the number of competitors

in the industry. The Coca-Cola Company is not only in competition with soft drink

companies such as Pepsi, but+ also with other companies like Unilever, Kraft Foods and

Nestle. It is surprising to see Coca-Cola ranked at number three (3) in soft drinks,

however, they are ranked number one (1) in juices, teas and coffee products which shows

that the company is in touch with their consumer’s interests as well as understanding that

soft drinks cannot be their sole products in order to sustain business.

3.2.1Coca-Cola’s Competitive Advantage

Coca-Cola’s competitive advantage can be categorized by the following

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Market leadership. Coca-Cola FEMSA is the largest bottler of Coca-Cola trademark

beverages in the world in terms of total sales volume with operations conducted in

Mexico, Guatemala, Nicaragua, Costa Rica, Panama, Colombia, Venezuela, Argentina

and Brazil.

Business partnership. Coca-Cola FEMSA is working together with the Coca-Cola

Company to develop more advanced joint business models to continue exploring and

participating in new lines of beverages, extending existing product line and effectively

advertising and marketing their products for Strong brand portfolio

Channel Marketing. Coca-Cola use a strategy that allows them to classify their markets

and develop targeted efforts for each consumer segment or distribution channel. The

company’s channels are small retailers such as restaurants and bars, supermarkets and

third party distributors.

4.0 Conclusion

The Coca-Cola Company (TCCC) is well ahead of the game with their marketing efforts,

which has allowed them to sustain profitability for over one hundred (100) years. The

company is not only interested in advertising and marketing beverages, but making a

difference in every corner of the world in which they operate. Coca-Cola has not lost

touch because they have been able to change with the times after evaluating feedback and

listening to their customers. The company keeps their momentum by following changes

in the consumer environment and responding with new products. TCCC strives to go

beyond simple marketing and reaches into the hearts and lives of consumers.

5.0 References

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Cci.com.tr

Turkey « Our Geography « Our Company « Home Page

Cci.com.tr (2009) Turkey « Our Geography « Our Company « Home Page. [online] Available at:

http://www.cci.com.tr/en/our-company/our-geography/turkey/ [Accessed: 25 Mar 2013].

Lifestyle.iloveindia.com

History Of Coca Cola - Interesting Information On Origin & Background Of Coke

Lifestyle.iloveindia.com (2013) History Of Coca Cola - Interesting Information On Origin & Background Of Coke. [online]

Available at: http://lifestyle.iloveindia.com/lounge/history-of-coca-cola-1734.html [Accessed: 25 Mar 2013].

HealthPop

U.S. regulators: Soda doesn't cause cancer

HealthPop (2012) U.S. regulators: Soda doesn't cause cancer. [online] Available at: http://www.cbsnews.com/8301-

504763_162-57391560-10391704/chemical-found-in-cola-causes-cancer-watchdog-warns-what-does-fda-say/ [Accessed:

17 Mar 2013].

Cokecce.co.uk

Coca-Cola Enterprises Ltd : Coke Zero gets a fruity twist for 2013

Cokecce.co.uk (2013) Coca-Cola Enterprises Ltd : Coke Zero gets a fruity twist for 2013. [online] Available at:

http://www.cokecce.co.uk/news-media/news-releases/2013/coke-zero-gets-a-fruity-twist-for-2013.aspx [Accessed: 21 Mar

2013].

Wikinut

Why Coca-Cola is such a successful brand

Wikinut (2012) Why Coca-Cola is such a successful brand. [online] Available at: http://business.wikinut.com/Why-Coca-

Cola-is-such-a-successful-brand/1do-m9n7/ [Accessed: 13 Mar 2013].

Thenational.ae

Coca-Cola denies rumours it contains alcohol - The National

Thenational.ae (2013) Coca-Cola denies rumours it contains alcohol - The National. [online] Available at:

http://www.thenational.ae/lifestyle/food/coca-cola-denies-rumours-it-contains-alcohol [Accessed: 15 Mar 2013].

The Coca-Cola Company

Advertising and Marketing to Children Policy - The Coca-Cola Company

The Coca-Cola Company (2011) Advertising and Marketing to Children Policy - The Coca-Cola Company. [online] Available

at: http://www.coca-colacompany.com/stories/responsible-marketing [Accessed: 16 Mar 2013].

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The Coca-Cola Company

Rumors and Facts About Coca-Cola

The Coca-Cola Company (2011) Rumors and Facts About Coca-Cola. [online] Available at: http://www.coca-

colacompany.com/contact-us/coca-cola-rumors-facts [Accessed: 25 Mar 2013].

Uzunoglu, C.

Coca-Cola İçecek

Uzunoglu, C. (2009) Coca-Cola İçecek . Coca-Cola İçecek (CCI) - Turkey, 3 (2), p.1-4. Available at:

http://www.acornsys.com/Portals/76901/docs/coca-cola-case-study.pdf [Accessed: 19 Mar 2013].

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6.0 Appendix

30%

31%

24%

10%4%

Revenue Break down of Coca-Cola World Wide

North America Europe,Eurasia,Middle EastAsia Latin America (Inclusive of Mexico)Africa

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Appendix 2.0 (CCI turkey) http://www.cci.com.tr/en/our-company/our-geography/turkey/

Turkey

Population (million): 71.9 Employees: 2,726 Number of plants: 8 Capacity (million unit case): 553 Sparkiling Beverages: Coca-Cola,

coke zero, Coca-cola light, Fanta, Sprite, Sprite 3G, Schweppes, Sen Sun, Burn

Still beverages: Cappy, Damla, Turkuaz, Nestea, Powereade, Dogadan

Appendix 1.0


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Appendix 3.0 (Pakistan)http://www.cci.com.tr/en/our-company/our-geography/pakistan/

Appendix 2.1 (Product range)http://assets.coca-colacompany.com/41/b2/afa3194c4c0b83109f945acbe3db/2008-2009_icecek.pdf

Pakistan

Population (million): 166.4 Employees: 3121 Number of plants: 6 Capacity (million unit

case): 112 Sparkling Beverages: Coca-

Cola, Diet Cola, Fanta, Sprite, Sprite zero, Sprite 3G

Still Beverages: Minute Maid, Kinley


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Appendix 4.0 (Kazakhstan)http://www.cci.com.tr/en/our-company/our-geography/Kazakhstan/

Appendix 5.0 (Azerbaijan)http://www.cci.com.tr/en/our-company/our-geography/azerbaijan/

Kazakhstan

Population (million): 15.8

Employees: 915 Number of plants: 1 Capacity (million unit

case): 94 Sparkling Beverages:

Coca-Cola, Coca-Cola light, Fanta, Sprite, Schweppes

Still Beverages: Cappy, Piko, BonAqua, Nestea

Azerbaijan

Population (million): 8.7 Employees: 422 Number of plants: 1 Capacity (million unit case):

52 Sparkling Beverages: Coca-

Cola, Coca-Cola light, Fanta, Sprite, Burn

Still Beverages: Cappy, BonAqua


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Appendix 6.0 (Kyrgyzstan)http://www.cci.com.tr/en/our-company/our-geography/kyrgizstan/

Appendix 7.0 (Turkmenistan)http://www.cci.com.tr/en/our-company/our-geography/turkmenistan/

Kyrgyzstan


Employees: 3121 Number of plants: 6 Capacity (million unit

case): 112 Sparkling Beverages:

Coca-Cola, Diet Cola, Fanta, Sprite, Sprite zero, Sprite 3G

Still Beverages: Minute Maid, Kinley

Turkmenistan


Employees: 160

Number of plants: 1

Capacity (million unit case): 4

Sparkling Beverages: Coca-Cola, Coca-Cola light, Fanta, Sprite

Still Beverages: BonAqua

Jordan


Employees: 546

Number of plants: 1

Capacity (million unit case): 30

Sparkling Beverages: Coca-Cola, Coke Zero, Coca-Cola light, Fanta, Sprite, Sprite light, Schweppes, Canada Dry, Burn

Still Beverages: Cappy, Riwa


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Appendix 8.0 (Jordan) http://www.cci.com.tr/en/our-company/our-geography/jordan/

Appendix 9.0 (Iraq)http://www.cci.com.tr/en/our-company/our-geography/iraq/

Iraq

Population (million): 29.4 Employees: 369 Number of plants: 1 Capacity (million unit case): 19 Sparkling Beverages: Coca-Cola,

Coca-Cola light, Fanta, Sprite, Canada Dry

Still Beverages: Cappy, Kani

Syria

Population (million): 20.5 Employees: 162 Number of plants: 0 Sparkling Beverages: Coca-Cola, Coke

Zero, Coca-Cola light, Fanta, Sprite , Sprite light

Still Beverages: Riwa


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Appendix 10.0 (Syria) http://www.cci.com.tr/en/our-company/our-geography/syria/

Appendix 11.0 (Tajikistan)http://www.cci.com.tr/en/our-company/our-geography/tajikistan/



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coca cola coperation

Documents

cocacola company

cocacolas colorings

cocacolas secret recipe

cocacolas trademark

internet rumors information

secret formula

issues internet rumors2

worlds number