THE COCA COLA COMPANY SWOT ANALYSIS 2017

SLIDE | 2

ABOUT COCA COLAName The Coca Cola Company

Logo

Industries served Beverage (more than 500 brands)Geographic areas served Worldwide (more than 200 countries)Headquarters Atlanta, Georgia, United StatesCurrent CEO Muhtar Kent

Revenue US$44.294 billion (2015) decreased 3.7% over US$45.998 billion (2014)

Profit US$7.351 billion (2015) increased 3.6% over US$7.098 billion (2014)

Employees 123,200 (2015)

Main CompetitorsPepsiCo Inc., Dr Pepper Snapple Group, Inc., Unilever Group, Mondēlez International, Inc., Groupe Danone, Nestlé S.A. and many other beverage companies.

The Coca Cola Company business overview from the company’s financial report:

The Coca-Cola Company is the world’s largest beverage company. We own or license and market more than 500 nonalcoholic beverage brands:

• sparkling beverages• waters and enhanced waters• juices and juice drinks• ready-to-drink teas and coffees• energy and sports drinks

SLIDE | 3

BUSINESS DESCRIPTION (1/2)“ ”

• We own and market four of the world’s top five nonalcoholic sparkling beverage brands: Coca-Cola, Diet Coke, Fanta and Sprite.

• Beverages bearing trademarks owned by or licensed to us account for 1.9 billion of the approximately 57 billion beverage servings of all types consumed worldwide every day.”[1]

SLIDE | 4

BUSINESS DESCRIPTION (2/2)“ ”

SLIDE | 5

STRENGTHS

1. Advertising and marketing capabilities

S WO T

In 2015, The Coca-Cola Company was the

largest advertiser in the beverage industry

in the world.

Company 2015 2014 2013

The Coca-Cola Company 3.976 3.499 3.266

PepsiCo Inc. 2.4 2.3 2.4

Dr Pepper Snapple Group Inc. 0.473 0.473 0.486

Figure 1. The Coca-Cola Company and its competitors’ advertising expenses 2013-2015 (in US$ billions)

Source: The respective companies’ financial reports [1][3][4]

Company Marketing expenses

Total revenue

% of total revenue

The Coca-Cola Company 6.8 44.294 15.4%

PepsiCo Inc. 3.9 63.056 6.2%

Dr Pepper Snapple Group Inc. 3.8 6.282 61.2%

Nestlé S.A. 20.3 89.772 22.6%

Figure 2. The Coca-Cola Company and its competitors’ marketing expenses in 2015 (in US$ billions)

Source: The respective companies’ financial reports[1][3][4][5]

1. Poor R&D capabilities

• Coca Cola has no proper R&D practices inside the company.

• It has to grow by acquiring new products.

• Acquisitions are costly and increase company’s debt.

SLIDE | 6

WEAKNESSESS WO T

Company R&D

The Coca-Cola Company 0

PepsiCo Inc. 754

Dr Pepper Snapple Group 19

Nestlé S.A. 1,697

Figure 4. The Coca-Cola Company and its competitors’ investments in R&D in 2015 (in US$ millions)

Source: The respective companies’ financial reports[1][3][4][5]

Coca Cola’s R&D spending was the lowest among its

competitors

1. Growing alcoholic beverage industry

• The alcoholic beverage market has been steadily growing since 2009.

• In 2017, the market is expected to reach a value of US$1.319 trillion.

• Coca Cola could expand into the alcoholic beverages industry by acquiring some established successful brands in a market.

SLIDE | 7

OPPORTUNITIESS WO T

1. Obesity concerns may reduce demand for some of the company’s products

Obesity concerns are the no.1 threat that is affecting the company:

“Increasing public concern about obesity; possible new or increased taxes on sugar-sweetened beverages by government entities to reduce consumption … and negative publicity resulting from actual or threatened legal actions against us or other companies in our industry relating to the marketing, labeling or sale of sugar-sweetened beverages may reduce demand for or increase the cost of our sugar-sweetened beverages, which could adversely affect our profitability”[1]

SLIDE | 8

THREATSS WO T

“ ”

1. The Coca-Cola Company (2016). Form 10-K for the Fiscal Year Ended December 31, 2015. Available at: http://www.coca-colacompany.com/investors/investors-info-sec-filings/ Accessed January 8, 2017

2. The Coca-Cola Company (2016). Coca-Cola Journey. All Brands. Available at: http://www.coca-colacompany.com/brands/all/ Accessed January 8, 2017

3. PepsiCo Inc. (2016). Form 10-K for the Fiscal Year Ended December 26, 2015. Available at: http://www.pepsico.com/docs/album/annual-reports/pepsico-2015-annual-report_final_s57dqszgmy22ggn.pdf?sfvrsn=0 Accessed January 8, 2017

4. Dr Pepper Snapple Group, Inc. (2016). Form 10-K for the Fiscal Year Ended December 31, 2015. Available at: http://investor.drpeppersnapplegroup.com/annual-reports Accessed January 8, 2017

5. Nestlé S.A. (2016). Financial Statements 2015. Available at: http://www.nestle.com/asset-library/documents/library/documents/financial_statements/2015-financial-statements-en.pdf Accessed January 8, 2017

6. MarketLine (2014). MarketLine Industry Profile ‘Global Beverages’. Accessed January 8, 20177. Interbrand (2016). Best Global Brands 2015. Available at: http://bestglobalbrands.com/2015/ranking/ Accessed January 8,

20178. Forbes (2016). The World’s Most Valuable Brands. Available at: http://www.forbes.com/powerful-brands/list/ Accessed

January 8, 20179. Mitchell, S. at The Sidney Morning Herald (2014). Coca-Cola to slash costs, launch new product in wake of review. Available

at: http://www.smh.com.au/business/retail/cocacola-to-slash-costs-launch-new-product-in-wake-of-review-20141026-11bz27.html Accessed January 8, 2017

10. Seeking Alpha (2014). Coca-Cola's Monster Deal Gives Me Long-Term Optimism. Available at: http://seekingalpha.com/article/2669765-coca-colas-monster-deal-gives-me-long-term-optimism?page=2 Accessed January 8, 2017

11. Gelles, D. at NY Times (2014). Coke and McDonald’s, Growing Together Since 1955. Available at: http://www.nytimes.com/2014/05/16/business/coke-and-mcdonalds-working-hand-in-hand-since-1955.html Accessed January 8, 2017

12. MarketLine (2014). Global Alcoholic Drinks Industry Profile. Accessed January 8, 201713. Beverage Marketing Corporation (2014). Press Release: The U.S. Liquid Refreshment Beverage Market Grew by 1.0% in

2012, Reports BMC. Available at: http://www.beveragemarketing.com/news-detail.asp?id=255 Accessed January 8, 2017

SLIDE | 9

SOURCES (1/2)

14. Beverage Marketing Corporation (2014). Press Release: The U.S. Liquid Refreshment Beverage Market Remained Flat in 2013. Available at: http://www.beveragemarketing.com/news-detail.asp?id=299 Accessed January 8, 2017

15. Beverage Marketing Corporation (2015). Press Release: The U.S. Liquid Refreshment Beverage Marketing Enlarged in 2014, Reports Beverage Marketing Corporation. Available at: http://www.beveragemarketing.com/news-detail.asp?id=335 Accessed January 8, 2017

16. Beverage Marketing Corporation (2015). Press Release: The U.S. Liquid Refreshment Beverage Market Accelerated in 2015, Reports Beverage Marketing Corporation. Available at: https://www.beveragemarketing.com/news/viewnews.asp?newsID=382 Accessed January 8, 2017

17. Beverage Industry (2013). 2013 State of the Industry: Tea & RTD tea. Available at: http://www.bevindustry.com/articles/86554-state-of-the-industry-tea-rtd-tea?v=preview Accessed January 8, 2017

18. Beverage Industry (2014). 2014 State of the Industry: Tea and RTD tea. Available at: http://www.bevindustry.com/articles/87613-state-of-the-industry-tea-and-rtd-tea?v=preview Accessed January 8, 2017

19. Beverage Industry (2015). 2015 State of the Beverage Industry: Health and wellness trends drive tea sales. Available at: http://www.bevindustry.com/articles/88566-state-of-the-beverage-industry-health-and-wellness-trends-drive-tea-sales Accessed January 8, 2017

SLIDE | 10

SOURCES (2/2)

SLIDE | 11

GET THE FULL PRESENTATION

BUY THE COCA COLA COMPANY SWOT 2017