LOGO OF WCC

WCC - GRADUATE SCHOOL

QUEZON CITY

COCA COLA COMPANY

A SWOT ANALYSIS PRESENTATON IN

MBA 204 – ADVANCED MARKETING MANAGEMENT

SUBMITTED BY

BENJAMIN V. LADESMA
MBA 1Y2-3

SUBMITTED TO

MARIA ROSARIO M. LUZON, MBA, DBA

PROFESSOR

MARCH 2023
INTRODUCTION

The Coca-Cola Company is an American corporation that was established in 1892 and
is currently focused on the production and distribution of syrup and concentrate for
Coca-Cola, a sweetened carbonated beverage that is a cultural icon in the country and
a representation of American tastes around the world. Other soft drinks and citrus
beverages are also produced and sold by the corporation. Coca-Cola is the largest
beverage manufacturer and distributor in the world and one of the largest firms in the
United States, with more than 2,800 products available in more than 200 countries.
Atlanta, Georgia serves as the headquarters.

John S. Pemberton, a pharmacist from Atlanta who lived from 1831 to 1888, created the
Coca-Cola beverage in 1886 at his Pemberton Chemical Company. Frank Robinson,
his bookkeeper, came up with the drink's name and gave it the flowing writing that
would later become synonymous with Coca-Cola. Based on cocaine from the coca leaf
and caffeine-rich extracts from the kola nut, Pemberton initially promoted his beverage
as a cure for the majority of common ills; the cocaine was removed from the Coca-Cola
formula around 1903. Pemberton supplied local soda fountains with his syrup, and with
the help of advertising, the beverage saw incredible popularity. Asa Griggs Candler
(1851–1929), an Atlanta pharmacist, acquired full control of the company by 1891 (for a
total monetary investment of $2,300 and the exchange of some proprietary rights), and
the following year he founded the Coca-Cola Company. The Coca-Cola trademark was
registered in the United States. 1893: Patent Office.

Sales of syrup increased under Candler's direction from 9,000 gallons in 1890 to
370,877 gallons in 1900. The establishment of syrup-producing facilities in Dallas, Los
Angeles, and Philadelphia during that decade led to the spread of the product to every
U.S. state and territory as well as Canada. The Coca-Cola Company entered into its
first contract with an independent bottling firm in 1899, allowing it to purchase the syrup
to make, package, and sell the Coca-Cola beverage. These licensing agreements
served as the foundation for the distinctive distribution system that today underpins the
majority of the American soft drink market. The Coca-Cola Corporation, which had been
founded with $100,000 in capital, was sold to a group of investors in 1919 for $25
million, under the direction of Atlanta industrialist Ernest Woodruff. For more than three
decades, his son Robert Winship Woodruff served as the company's president and
chairman (1923–55).

Coca-packaging Cola's underwent diversification in the decades following World War II,
as did the creation or purchase of additional goods. Advertising for "Coke" began in
1941, and the trademark was first registered in 1945. The business acquired the rights
to Fanta, a soft drink that was first created in Germany, in 1946. The 1916 debut of the
curved Coca-Cola bottle was registered in 1960. The business also released its first diet
cola, sugar-free Tab, in 1963 as well as the lemon-lime beverage Sprite in 1961. The
firm entered the citrus juice sector in 1960 after purchasing Minute Maid Corporation. In
1966, it added the Fresca brand.

Coca-Cola was the only business permitted to sell chilled bottled beverages in the
People's Republic of China as of 1978. The business debuted their low-calorie, sugar-
free soft drink Diet Coke in 1982. (originally named Diet Coca-Cola). In April 1985, the
firm introduced a new flavor of Coca-Cola using a formula it developed through taste
tests in an effort to address its declining market share. Yet they did not like New Coke.
Following widespread criticism, Coca-Cola brought back its original flavor in July,
branding it as Coca-Cola Classic. The business owned a majority stake in the
entertainment and motion picture corporation Columbia Pictures Industries, Inc. from
1982 to 1989.

The early 1990s saw the opening of new markets for Coca-Cola; the corporation started
selling its goods in East Germany in 1990 and India in 1993. The company unveiled its
first bottle produced partially from recycled plastic in 1992, a significant advancement
for the sector at the time. In the 1990s, Coca-Cola introduced numerous new drinks,
such as the bottled water brand Dasani and the children's fruit drink Qoo, which was
sold across Asia. Also, Coca-Cola bought beverages from Cadbury Schweppes that
were distributed in more than 120 nations throughout the world, including Barq's root
beer in the US, Inca Kola in Peru, Maaza, Thums Up, and Limca in India.

Coca-Cola was accused of grave human rights breaches in the beginning of the 2000s
as well as illegal soil and water pollution. The primary bottlers of Coca-beverages Cola's
in Latin America, Bebidas y Alimentos and Panamerican Beverages, Inc. (also known
as Panamco LLC), were sued in 2001 by the United Steelworkers of America and the
International Labor Rights Fund (ILRF) on the grounds that the defendants had openly
employed so-called "death squads" to intimidate, torture, kidnap, and even murder
union officials in the region. As a result of the dispute, which attracted international
notice, numerous American institutions decided to restrict Coca-Cola product sales on
their campuses. The lawsuit was ultimately thrown out.

Coca-Cola Zero, a calorie-free soft drink with the flavor of ordinary Coca-Cola, was
introduced by the firm in 2005. The business bought Energy Brands, Inc. and its
assortment of enhanced waters in 2007. Coca-Cola made the announcement to join the
Business Leaders Initiative on Human Rights (BLIHR) in the same year. This
organization of businesses collaborates to create and carry out corporate responses to
human rights issues that have an impact on business.

PROPOSALS

A.1-Strengths:

The first step for Coca-Cola is to expand their business into places with high purchasing
power. Most businesses tend to value market penetration. At that point, only innovation
make further advancements in this field:

a. With a presence in 200 countries, Coca-Cola is the most popular beverage brand
and won the highest brand equity award in 2011;
 b. Coca-Cola is valued at $79.2 billion as a corporation. Limca, Sprite, Fanta,
Thumps Up, Maaza, Kinley Water, and Minute Maid are some of its subsidiaries.

c. The business delivers a product to the most remote locations and has the most
reliable supply chain. Due to its widespread global presence, it has developed its
brand image;

d. It is associated with famous people serving as brand ambassadors in marketing

and advertising. It continues a successful marketing plan. Coca-Cola enjoys
devoted patrons;

e. The business engages in CSR initiatives in the areas of water conservation,

education, health, and It is connected to international sporting events and
sponsorship, the the business is shifting in favor of sugar-free products, water,
and juice.

A.2- How to make it better?

I vehemently agree that Coca Cola Company should always be consistent.

Consistency is a key component to making money in Coca Cola Company. They
have to keep doing what is necessary to be successful day in and day out. This
will create long-term positive habits that will help them make money in the long
run.

A.3- What are they doing wrong?

a. 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.
 b. Health concerns – One of the main causes of sugar consumption is carbonated
beverages. Obesity and diabetes are the two serious health problems it causes. The
largest producer of carbonated beverages is Coca-Cola. The usage of these soft
drinks has been outlawed by many health authorities. That is a contentious subject
for the business. Coca-Cola hasn't yet come up with a healthy alternative or fix for
this issue, though.

c. Overdependence on Third-Party Technology Providers – Operations at Coca-

Cola rely substantially on outside parties' technological know-how. Microsoft and the
corporation agreed to a new five-year contract for the delivery of business software.

d. Environmentally Destructive Packaging – Coca-Cola was listed as one of the four

biggest consumer companies in the world that, by utilizing disposable plastic bottles,
significantly contribute to global warming and carbon emissions in the 2020 Tear
Fund report.

A.4- How to fix them?

a. Why The Coca-Cola Company should essentially capitalize on the four shortcomings
mentioned. First and foremost, they need to diversify their product line. Coca-Cola is
trailing Pepsi in the debut of snacks like Lays and Kurkure. Pepsi now has leverage
over Coca-Cola.

b. Coca Cola should also put into priority the nutrition facts of their product. The
company should boost the visibility of its low and no-sugar drinks, and continues to
include clear, easy-to-find nutrition information on packaging to help shoppers make
informed choices.

c. Coca Cola should invest more in technological expertise. Instead of hiring consultant
(third parties) which is too expensive. The company should incorporate self-owned
technology providers.
 d. The Coca Cola Company should limit the use of carbon emissions and shift more on
renewable energies to conserve the environment.

A.5- What opportunities are out there that the “company” can explore?

1. Introduce new products and reduce added sugar – Like Pepsi, Coca-Cola has
the chance to expand its product lineup in the healthy beverage and food categories.
They can expand beyond carbonated drinks and increase their revenue and brand
recognition as a result. Coca-Cola has prioritized reducing the amount of sugar in its
beverages, and as of now, 28% of its volume sales have been low- or no-calorie
beverages, according to its most recent annual report.

2. Increase presence in developing nations – There is a huge demand for cool

beverages in many hot climates. Thus, expanding one's presence in these
developing regions can be quite beneficial. The Middle East and Africa are two such
examples.

3. Bring advanced supply chain system – Logistics and supply chain are essential to
Coca-operations. Cola's Fuel and transportation expenses are always rising.
Consequently, there may be a chance to develop some sophisticated and enhanced
distribution systems.

4. Packaged drinking water – Several packaged drinking water brands, including

Kinley, are owned by Coca-Cola. For Coca-Cola, this market offers a lot of room for
growth. To avoid criticism, there is a chance to grow and introduce healthier drinks to
the market.
5. Expand through Acquisition – Although some industries provide attractive growth
potential, fast entry into these markets might be difficult. Coca-recent Cola's
acquisitions of Costa Coffee, AHA sparkling water, and it can do it again helped fuel
the company's expansion. It has the financial capacity to purchase SMBs or startups
in developing economies and take advantage of the numerous prospects they bring.
 6. Coca-Cola introduces its very First TikTok challenge across the US – Coca-
Cola enters the TikTok stratosphere, announcing the company’s first-ever TikTok
challenge in the US. It’s an excellent move for the company to enhance its brand
recognition further.

A.6- What are the possible hindrances to attaining the opportunities mentioned?
(THREATS)

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. Pollution Lawsuit – Coke and three other companies are being sued by a California
environmental group for contributing to plastic pollution. In the lawsuit, Coca-Cola is singled
out for misleading the public about the recyclability of its single-use plastic bottles.

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.

4. Economic Uncertainty – The recent events have negatively affected business

operations, supply and distribution chains, and devastated revenues of many global
companies. In 2020, Coca Cola’s revenues declined drastically as restaurants, theaters,
and other venues that contribute about half of its revenue remained closed due to the global
crisis.

5. Increasing Health-Consciousness – Consumers are increasingly adopting healthy

lifestyles and avoid products with unhealthy ingredients. The increase in health-
consciousness can reduce Coca Cola’s sales and profits as customers migrate to healthier
options offered by competitors.
RECOMMENDATIONS AND SUGGESTION

Some recommendations are explained as follows:

1. Coca-Cola has to launch new items in the snacks and food divisions as it enters the food
business.
2.Concentrating on health-related issues should result in some solutions to the social
activists' growing health concerns.
3.Enhancing its water management system and responding to environmental organizations'
objections.
4. By focusing on sustainability and green marketing, it can enhance the market perception
of its brand.

CONCLUSION

SWOT analysis makes it clear that Coca-Cola has a dominant market position
in the markets in which it competes. The business ought to introduce fresh meals and
snack products. It should also address the health issues brought forth by activists and
specialists in the field. It ought to enhance its water management and increase its
presence in underdeveloped nations. Additionally, it should create long-term plans for
environmental protection and addressing any environmental issues related to its water
usage.
 REFERENCES

1. Interbrand Ranking 2021. Best Global Brands: Coca-Cola. Interbrand

2. Johnston, M. (2020, June 1). 5 Companies Owned by Coca-Cola. Investopedia
3. Law360 (2020, April 6). Fed. Circ. Weighs Undoing Coca-Cola Soda Dispenser IP Win.
Law360
4. Nellis, S. (2020, April 27). Microsoft wins a five-year deal with Coca-Cola to supply business
software. Reuters
5. Win, L. T. (2020, March 31). Bottling it? Plastic pollution from Coca-Cola, PepsiCo fuels
emissions. Reuters
6. Scully, J. (2020, January 31). Coca-Cola’s growth in 2019 driven by trademark Coke
beverages. Food and Beverages
7. McCormick, E. (2020, February 27). Coke and Pepsi sued for creating a plastic pollution
‘nuisance.’ The Guardian
8. Balu, N. (2020, April 21). Coronavirus lockdowns to hurt Coca-Cola’s second-quarter sales.
Reuters
9. Askew, K. (2020, January 15). Shifting Away from Sugar: What’s the outlook in 2020? Food
Navigator
10. Adam Zeidan-(2023, February) The Coca-Cola Company
https://www.britannica.com/topic/The-Coca-Cola-Company