a brief review of COCA-COLA company.

1. A Review on COCA-COLA the Global Beverage Company
Submitted to Submitted by
Shahadat Hussain
Lecturer
Finance & Banking Department
University of Barisal
Mahmudur Rahman
ID:16FIN067
3rd
Year 1st
Semester
Session :2015-16
Submission Date: 26th
July 20018

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ABSTRACT
From this project titled “Review on COCA COLA Company” in Coca-Cola, I have learned a lot about
real practical work being done in the market I have also watched & learned the practical applicability of
the various things that we have studied theoretically. I observed on the basis of survey in Barisal city that
Coca-Cola lay emphasis on merchandising in order to become the No.1 brand in soft drink industry the
report was finds out the availability of different flavor and packs. Cola-Cola adopt a good customer
relationship management, it is focus on the, segment of the product because each segment is affected by
different sets of factors which hamper or enhance sales. Each segment had its own Pros & Cons. So, we
have to understand the various segment of soft drink industry that which flavor is existing more in the
market, Such as Thumps-up strong brand of coke which is more popular in young generation. I also
observe about fate dealer, sub dealer, monopoly counter & its marketing strategy. Such as fate dealer is
influence wrong direction to the market. They are supply product at high margin with low scheme.
The company is making all out efforts to quench the thirst of millions of people around the globe but thirst
of the company to capture the globe should never be quench. A feeling of being satisfied should never be
allowed to creep into the management as well as the rank and the profile of the company. Barisal market
being a gateway to the South Bengal and it has got immense and significant potential. The efforts to
capture the market completely should be the soul aim of management particularly in the light of the fact
that a major bottling plant is situated in the area.

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Contents Page NO.
Introduction 5
History of COCA COLA International 5
Global Market Share 6
Market Share 8
Products 9
Strategic Planning 9
Beverage Market 10
SWOT Analysis 10
Differential Analysis 11
Conclusion of The Analysis 12
Reference 13
Table of Contents

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INTRODUCTION
In 2017, The Coca-Cola Company continued to reshape our business for more robust and sustainable
growth with strategic decisions to expand our consumer-centric brand portfolio, enhance our franchise
bottling system, deliver new efficiencies and create more long-term value for our shareowners and
everyone connected to our business. This year’s Annual Review offers a snapshot of our ongoing journey
to improve our operations, build our brands and refresh the world as a total beverage company
Fast Moving Consumer Goods (FMCG), also known as Consumer-Packaged Goods (CPG) are products
that have a quick turnover and relatively low cost. Consumers generally put less thought into the purchase
of FMCG than they do for other products. The Indian FMCG industry witnessed significant changes
through the 1990s. Many players had been facing severe problems on account of increased competition
from small and regional players and from slow growth across its various product categories. As a result,
most of the companies were forced to revamp their product, marketing, distribution and customer service
strategies to strengthen their position in the market.
History of COCA COLA International
Coca-Cola Enterprises, established in 1986, is a young company by the standards of the Coca-Cola system.
Yet each of its franchises has a strong heritage in the traditions of Coca-Cola that is the foundation for this
Company. The Coca-Cola Company traces it’s beginning to 1886, when an Atlanta pharmacist, Dr. John
Pemberton, began to produce Coca-Cola syrup for sale in fountain drinks. However, the bottling business
began in 1899 when two Chattanooga businessmen, Benjamin F. Thomas and Joseph B. Whitehead,
secured the exclusive rights to bottle and sell Coca-Cola for most of the United States from The Coca-
Cola Company. The Coca-Cola bottling system continued to operate as independent, local businesses until
the early 1980s when bottling franchises began to consolidate. In 1986, The Coca-Cola Company merged
some of its company-owned operations with two large ownership groups that were for sale, the John
Lupton franchises and BCI Holding Corporation's bottling holdings, to form Coca-Cola Enterprises Inc.
The Company offered its stock to the public on November 21, 1986, at a split-adjusted price of $5.50 a
share. On an annual basis, total unit case sales were 880,000 in 1986.In December 1991, a merger between
Coca-Cola Enterprises and the Johnston Coca-Cola Bottling Group, Inc. (Johnston) created a larger,
stronger Company, again helping accelerate bottler consolidation. As part of the merger, the senior
management team of Johnston assumed responsibility for managing the Company, and began a dramatic,
successful restructuring in 1992.Unit case sales had climbed to 1.4 billion, and total revenues were $5
billion. COCA COLA’s revenue from 20014 to 2017:

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GLOBAL MARKET SHARE:
Being the biggest company in the soft drink industry, Coca Cola enjoys the largest market share. This
company controls about 59% of the world market.
Unit case growth Nonalcoholic
drink
All commercial
Beverages
10year compound
annual growth
5-year compound
annual growth
2016 Annual
Growth
2017 2017
Company Industry Company Industry Company Industry Company
Share
Company per
capita income
6% 5% 5% 5% 4% 18% 9% 70
The column, which shows the non-alcoholic beverages consist of commercially, sold beverages, as
estimated by the Company based on available industry sources. The country column is derived from The
Company's unit case volume while the industry column includes nonalcoholic ready-to-drink beverages
only, as estimated by the Company based on available industry sources.
9708
8728
8626
7501
45998
44294
41863
35410
0 5000 10000 15000 20000 25000 30000 35000 40000 45000 50000
2014
2015
2016
2017
2014 2015 2016 2017
Net opetrating Revenue 45998 44294 41863 35410
Operating Income 9708 8728 8626 7501
COCA COLA Company revenue from 2014 to 2017

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The operation income earned by Coca Cola Company can be illustrated by the following pie chart.
This strategy has worked a lot and it has helped them to become the World’s leading Soft Drink
Company. The global unit sale of the Coca Cola Company is increasing from the last ten years. The data
of the global unit sale of the Coca Cola Company can be represented by following chart.
24%
76%
Operating Income
North America International Operations
0%
5%
10%
15%
20%
25%
30%
35%
40%
2017 2016 2015 2014
2017, 37% 2016, 35.50%
2015, 29.80% 2014, 32%
Unit of Sales in Percentage
Unit of sales

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MARKET SHARE BY AREA
It is currently involved in retailing, marketing non-alcoholic beverage syrups, manufacturing and other
stuff. The parent product of the company is Coca-Cola drink, which is a flagship product, invested by
pharmacist Pemberton in Columbus. Muhtar Kent is the current CEO and chairman of the company
(Fitzsimons, 2011). In Pakistan, Coca Cola is operating under the name of Coca Cola Pakistan Beverages
Limited and its products are available in every cities, villages, and districts of Pakistan. In the
global market, Coca Cola is the market leader for the beverage industry as it holds 48.6% as per
the recent statistics (Wyngarden et al, 2012). Pepsi is the direct competitor of Coca Cola holding
significant 20.5% share of the total beverages industry. It means that Pepsi stands nowhere close to Coca
Cola when it comes to the international market. However, talking specifically about the market of
Pakistan, it can be seen that Pepsi holds a much larger share of the total market as compared to Coca Cola.
Coca Cola marketing strategies and supply strategies have proven to be ineffective in Pakistan for leaving
Pepsi behind. Therefore, it becomes important to analyze the marketing strategies of Coca Cola to analyze
the effectiveness of marketing strategies along with analyzing the impact of external factors in impacting
the operations of the company (Walston, 2014). Coca Cola is the world-renowned soft drink and the
company is currently operating throughout the world. The worldwide total is about 37.8 billion. The
operation review according to the segments is as follows.
So, the volume is least in the Africa and most in the North America. The data about the market share of
this company area wise is given in the following table. The above table shows the geographical earning
of the Coca Cola Company and from this data; we can find out that the customers of Coca Cola are
increasing which is shown by the company’s per capita income. Unit case equals 24 eight-ounce servings.
North America
30%
Latin America
25%
Asia
22%
Europe & Middle East
17%
Africa
6%
Market Share
North America Latin America Asia Europe & Middle East Africa

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PRODUCTS & BRANDS
There are different brands of the Coca Cola Company, which are currently in use throughout the world.
This company not only deals in the carbonated drinks but also other drinks. This year, Coca-Cola
Company also successfully energized a major piece of its beverage strategy—water. By the end of 2001,
it’s bottled water volume exceeded 570 million unit cases, making it the second biggest contributor to the
growth of the company after carbonated soft drinks. Three of the water brands, Dasani, Ciel Andromaque
each achieved sales of over 100 million unit cases for the year.
STRATEGIC PLANNING
In the year 2017, the company had a great success, as the strategy worked which resulted in making Coca
Cola Company the world’s leading company. In 2016, company accomplished the crust of its strategy as
❖ Worldwide volume increased by 12 percent with strong international growth of 19percent and
clear signs that their North American business is growing solidly and predictable
❖ Earnings per share grew by 82 percent, as we delivered on their commitment to create volume
growth while aggressively.
❖ Return on common equity grew from 23 percent in 2016 to 38 percent this year.
❖ Return on capital increased from 43 percent in 2016 to 31 percent in 2015.
❖ The company has generated free cash flow of $3.1 billion, up from $2.8 billion in2016, a clear
indication of its underlying financial strength.
The strategy for the future of the company is very straightforward. The marketing strategy for the year
2017 is as following marketing strategies along with analyzing the impact of external factors in impacting
the operations of the company (Walston, 2014).

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Beverage Market
SWOT Analysis of COCA COLA:
The framework SWOT analysis is taken into use to analyses the internal and external
environment of an organization. It is one of the common frameworks used by organizations
across the globe (Collier, 2014). It includes the internal environment analysis using strengths and
weaknesses of the organization and the external environment analysis using opportunities and
threats (See Appendix # 2).
• Strengths: One of the key strength of Coca Cola is that it has the strongest brand value in the
international market. There are many customers in both international and local market of
Pakistan that prefer Coca Cola to Pepsi. Coca Cola has the ability to make significant
investments in Marketing to improve its market share in the Pakistan’s market. The international
leadership of Coca Cola is recognized across the globe. The company has maintained strong
relationship with the strategic partners (Nesheim et al, 2015). The company is offering wide
range of products. As the revenue is being generated from different regions of Pakistan, risk is
diversified.
COCA COLA
49%
PEPSI
20%
Other
31%
Global Market 341.6 billion
COCA COLA PEPSI Other

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• Weakness: Coca Cola does not have its own bottle manufacturing setup as it has in the international
market. Therefore, the reliance on the strategic partners is high. There have been times where
Coke was not available in the market which was mainly because the Mehran Bottlers in Pakistan
could not provide sufficient supplies of bottles to the company. Coca Cola’s supply chain
management is not as effective as the supply chain of Pepsi co in the region of Pakistan (Ismail
et al, 2013).
• Opportunities: As the standard of living of Pakistan’s people is changing rapidly, it can be seen
that people are eating regularly in restaurants and other places where leisure time is being spent.
Coca Cola has the opportunity to create strategic alliance with hotels and restaurants where the
demand of beverages are high. Coca Cola can be found in many of the restaurants of Pakistan
(Mukhtar, 2013). Hence, it can further improve the supply chain and marketing by creating
strategic alliances. Coca Cola can take advantage of various marketing platforms such as social
media marketing to enhance its sales.
• Threats: The key threat, which is being faced, by both Coca Cola and Pepsi is that local
manufacturers are keen to enter the market and capture market share. Brands like Gourmet are
being introduced in the Pakistani market, which can be seen as the direct competitors for the
company (Asmine 2015). It has also been observed that the people of Pakistan are becoming
more health conscious due to which the consumption of beverages might get decreased with the
passage of time. The campaigns against soft drinks are common in the international market,
which can potentially impact the operations of the company.
Differential Advantage
The Coca Cola Company is the first mover in the soft drink industry and the company has
recognized a good brand image, coca cola is the largest investor in the soft drink industry and
also being enjoyed market leader in the worldwide. Most likely popular products are “classic
coca cola” because the consumers are more like that product of his different taste and as well and
his packaging of bottles and style. When Coca Cola is decided to change the formula of coke,
start “new coke” the response of our consumers in this new formula coke is not good, so the
customers were not like this “new coke”. Suddenly the company was rapidly restarted coke
formula to satisfy the needs and demands of audiences in the same “Coca Cola Classic”. Coca cola has
good brand equity and innovation products time to time, increase because the products are differentiation
and have a good communication system. Coca cola annually spends 20 percent of advertisement budget
to continue for maintaining differentiation strategy and communication system. To increase product
quality and uniqueness so that prices are high to satisfy customer’s demands, this is a great chance of
capturing the audience’s confidence to make first-class charged prices cover the extra production cost
(Porter, 2006). Coca cola is financially too strong in the soft drink industry, so that company is spending

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more money in differential strategies to stable as the market leader in worldwide. Company analysis
external environment, it refers to present a model of five forces by (Porter, 2008). Moreover, to explore
the new trends of beverage industries and also recognize important factors to calculate and evaluate the
current situation of opportunities and threats, though (SWOT analysis) in front of the present environment.
Conclusion of The Analysis:
Of course, business innovation leaves highly good impacts in the business of Coke. As coke use more
advance technology in its production process. It will have resulted in increment of their production
throughout the country. As far as the “governmental hindrances” are concerned the impacts highly bad on
coke’s production. Ever year when budget in announced government taxes rates always shoot up. This
approach of government decreases the profit margin of Coke. As the coke helping in promoting
“paperless environment” .it impacts good, because computers are the basic need of any person now a day.
And though it’s a big industry so itis promoting the trend of paperless environment. And it is giving the
way of other industries to come to new technologies and into a new world of business. Through computers
coke can increase the efficiency of its business and can have up –to-date data about their productions.
Coca-Cola no doubt come the heartbeat of Pakistanis. Coca-Cola is one of the leaders in sponsoring the
most important, thrilling events. E.g. Cricket matches, concerts and many other social occasions. Event at
the present they are organizing a Basant festival for which they busily organizing stuff.
.

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Reference
1. "2017 Annual Report (Form 10-K)" (PDF). The Coca-Cola Company. February 23, 2018.
2. "How Delaware Thrives as a Corporate Tax Haven", Leslie Wayne. New York Times. June
30,2012. Retrieved February 17, 2017
3. History of The Minute Maid Company". Fundinguniverse.com. Retrieved July 29, 2012.
4. "Interview about the attractions park for Coca-Cola Turkey". café.themarker.com.
5. Coca-Cola Company - Statistics & Facts- https://www.statista.com/topics/1392/coca-cola-
company/
6. “Coca Cola Marketing Strategies”- https://www.scribd.com/doc/10552013/Coca-Cola-
Marketing-Strategies
7. Coca-Cola Company (2016). About the Company. Data retrieved from http://www.coca
colacompany.com/stories/Coca-Cola-sponsorships/.
8. The Beverage Marketing Corporation (August, 2007). 2007 Carbonated Soft Drinks in the U.S.
Retrieved October 29, 2007 from http://www.beveragemarketing.com/reportcatalog3f.html