COCA COLA CORPORATION ANALYSIS

Asa GriggsCandler created a lot of marketing tactics to change American customer’s mindsand lead his company to the dominance of the world soft drink market.. Figure 1: Revenue & Net Inc

ManagementCourse ID: NT401DE01

INTERNATIONAL BUSINESS STRATEGY

OF COCA­COLA COMPANY

Member in Coca-Cola group Student ID

Firstly, We would like to send the most respective thank to our lecturer Mrs PhamThi Bich Ngoc who instructs and gives us precious knowledge to make this report.Secondly, give us a favour to thank to Hoa Sen University for give us a chance tolearn international business management subject This one is really useful for ourmajor – International Business

While we make this report, we cannot avoid making unrespected mistakes.Therefore, we welcome your criticisms to make our report better Much obliged

CCoca Cola is a large company which have headquarter in Atlanta, Georgia state.Coca-Cola company is working over 200 countries in the world Coca-Cola ‘sbrand is best-seller freshwater one and all of people all over the world love Coca-Cola or one of kinds of attractive drink of this corporation

Nowadays, Coca-Cola company’s so successful to expand their market Viet Nam

is also a market which Coca-Cola company want to invest and develop To knowmore about the influenced brand to many countries and many generations, ourgroup choose this topic “Coca-Cola” to analysis and research

ACKNOWLEDGEMENTS i

Introduction ii

Main Contents: 1

1 Overview Coca cola Corporation 1

2.1 The achievement in business: 2

2.2 Revenue: 3

2.3 Community Activities: 4

3 The failure of Coca-Cola Company: 5

3.1 The “New Coke”- The worst mistake in history of Coca-Cola: 5

3.2 Coca-cola forced to close the factory in India 6

4 Marketing analysis 6

4.1 Marketing in global market: 6

4.2 Marketing Campaign in Viet Nam 14

5 Operation Strategy Entry 19

5.1 Operation strategy in the world 19

5.2 Operation Strategy in Viet Nam 20

6 SWOT Analysis 22

6.1 Strengths 22

6.2 Weaknesses 22

6.3 Oppoturnities 23

6.4 Threats 23

REFERENCE MATERIAL 24

Main Contents:

1 Overview Coca cola Corporation

Coca Cola was set up in 1886 At that time Dr John Pemberton began tomanufacture Coca Cola syrup for retail

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-ColaCompany

Coca-Cola (known as Coke) is well-known as carbonated soft drink, which isregistered in 1893 Coke is also seems to be a patent medicine when JohnPemberton literally invented in the late 19th century

In 1888, a American business man is named as Asa Griggs Candler, who made hisbrilliant fortune by transforming American’s knowledge of Coca Cola Asa GriggsCandler created a lot of marketing tactics to change American customer’s mindsand lead his company to the dominance of the world soft drink market Coca-Colaname was created by their two significant factors, which are Coca leaf and cocacorn These two factors were becoming the main reason to subvert the wholeworld’s market in 1960, when people started to call Asa Candle as the man whobrings the addictions to the world Based on the affections, Coca- Cola wasencouraged to create more similar products such as Coke zero or Diet Coke; thesenew products have their own target to supply the customer’s expectations Afterconducting a lot of achievement and advertisement, Coca-Cola becomes one of themost famous brand in the world

Coca-Cola is a brand which 94% population all over the world know about CocaCola is recommended at the first time in Viet Nam in 1960 to February1994 CocaCola backs to Viet Nam and starts the process of long time business From 1995 to

1998, the joint-venture between Indochina Coca-Cola and Domestic enterpriseswhich has the headquarter in 3 regions In October 1998, Viet Nam governmentallowed the joint-venture enterprises to become 100% FDI so the joint-ventureenterprises of Coca Cola in Viet Nam belong to Indochina Coca Cola in turn InJune 2001 , thank to the allowance of Viet Nam government , 3 companies of CocaCola in 3 regions were united and had the general management of Coca Cola From March 1st 2004, Coca cola transferred for Sabco–one of famous bottlecorporation of Coca Cola in the world.

2 The development of Coca-cola company:

2.1 The achievement in business:

Coca-Cola is seen as a symbol of refreshment for everyone Designs andfeatured of Coca-Cola bottle is familiar with everyone, which has become part

of consumers' lives After 129 years, Coca-Cola Company becomes the biggestinternational beverage company in the world The company works in over 200countries in the world

Nowadays, Coca-Cola company has more than 3500 products worldwide If drink aCoca-Cola’s product each day, you will spend 9 years to be able to fully enjoy allkinds of products of this company

In 2013, Coca-Cola retained the No 3 position on Interbrand’s World’s MostValuable Brands Coke’s 2014 brand value is estimated at $81.6 billion, up 3percent from 2013

Figure 1: Revenue & Net Income of Coca- Cola global

In 2014, Income of Coca-Cola signs of prosperity after 11 years of continuousdecrease Advertising campaign “Share a Coke” succeeded brilliantly, which helpedsales of Coca-Cola increased by 2.5% over the same period in 2013

 Coca-Cola Company in Vietnam:

Since establishment in 1994, the Coca Cola Company in Vietnam has never beenprofitable despite revenue increasing continuously every year

2005 2006 2007 2008 2009 2010 0

Mr Nguyen Khoa My, representation of Coca-Cola Vietnam, said that theincreasing of sugar price, electricity price and materials price are the reason whythe company always loss However, the company continues to invest in Vietnambecause of the potential of this market

2.3 Community Activities:

Besides effective business, Coca-Cola is famous for doing community activities.Many activities, which help for people and improve environment, are found byCoca-Cola Company

 Project last Mike

In 2010, Coca-Cola cooperated with The Global Fund to Fight AIDS, Tuberculosisand Malaria, and the Bill & Melinda Gates Foundation in “Project last Mike” Inthis program, Coca-Cola’s supply chain, distribution, logistics and marketingexpertise to help African governments get vital medicines and supplies the “lastmile” to remote, hard-to-reach communities which launched in 2010 in Tanzaniaand expanded to Ghana in 2013 Today, the coalition will invest more than $21million, plus significant in-kind resources

 Some projects in Vietnam:

o Coca-Cola Vietnam has ever collaboration with the Youth CultureOrganization in Ba Ria - Vung Tau organized the "International BeachCleaning" in Thuy Van Beach The program had more than 150 volunteers,including employees of Coca - Cola Vietnam and local youth union

members work together to participate in waste collection activities andplastic bags along the coastal areas Previously, the program was organized

at the beach Son (Hai Phong) and Son Tra Beach (Da Nang) Over 150volunteers joined in and cleaned up more than 350 kg of waste

o With the project "Clean Water for Communities", in 2013, Coca-Cola hasdonated more than 5.7 billion for cooperation with UN-Habitat andCEFACOM They built the pipeline distribution network and installation ofwater supply connections to poor households in the region's water shortageCam Lo district (Quang Tri), Hoa Vang district (Da Nang) and Thu Duc (HoChi Minh) Moreover, they drilled wells, installed water filtration systemsfor the poor in Thuong Tin district (Hanoi) The project supported nearly10,000 people access to clean water

3 The failure of Coca-Cola Company:

3.1 The “New Coke”- The worst mistake in history of Coca-Cola:

- Background: Pepsi launched the campaign "Pepsi Challenge" Accordingly, thecustomer asked to try 2 drinks of Pepsi and Coca Cola in blindfolded Then theymake comments that what they are prefer Most of them chose Pepsi because it issweeter than Coca-Cola In 1983, Coke's market share decreased from 60% to 24%

- Strategy Mistakes: Leaders Coca Cola has decided to change the formula so thatresemble drinks Pepsi and introduced New Coke products This new formula istested with 200000 customers and they all think the new formula better However,the loyal customers disagree with New Coke, they want to drink Coke with oldformula

- Results: There were 400,000 calls and letters to headquarter of Coca-Cola Theyfilled with frustration and protest the company changed the formula drinks Thefirst formula change project in 99 years was fail 3 months later, they had to return

of the original formula, called Coca-Cola classic

3.2 Coca-cola forced to close the factory in India

Coca Cola factory's Mehdiganj in Varanasi allegedly exploiting groundwaterresource than the permitted level Meanwhile, groundwater resource seriouslyimpaired in this area This made the local people extremely urgent and angry Theydon’t have enough water to agriculture, while water sources are becomingincreasingly scarce

Locals also accused of Coca Cola factory on the direct discharge of wastewaterwith high concentration of pollutants exceed out They don’t take wastewaterthrough the filter system It caused serious environmental pollution

From 2006, local people have organized four large-scale demonstrations But theyall failed Until 2014, Pollution Control Commission of Uttar Pradesh haveconfirmed to AFP news that they require Coca-Cola closing their factory Inaddition, the Commission also requested Coca-Cola to compensation twice as muchwater was overexploited

Coca Cola uses the strategic positioning so that to save the familiar image allaround the world which today Coca Cola successfully be perceived as a part ofdaily life This brand perception creates high degree of loyalty and leads purchasing

action happens automatically Coca Cola has achieved its goal by adapting USP(Unique Selling Preposition) as “Live the coke side of life”, which concerned withdelight and happiness When they think about the name Coke, the first thing comes

up in their minds is joy and entertainment

Currently, Coca Cola is performing a very strong international growth in thedeveloping world Recently, Coca Cola continues to be placed at the third position

in the list of the brand value with 81.563 million U.S Dollars in 2014

The table below presents the top Global Brand’s ranking value in 2014:

Picture 1: The World's Most Valuable Brands List

Coca Cola has positioned itself dramatically to gain advantage in developingcarbonated soft drink all over the world Coca Cola keeps increasing its brand’svalue very well each year from 2006 to 2014

The graph below shows the brand value of Coca Cola company from the year of

2006 to 2014

The company starts up with the value at 41.41 million U.S Dollars in 2006

In 2014, Coca Cola reached the value at 81 million U.S Dollars

Picture 2: Coca-Cola: Brand Value

4.1.2 Coca Cola Marketing Mix

Coca Cola has become a well-known brand with over 94% population canrecognize its logo There is no doubt that Coca Cola has been through the ups anddowns challenges in business to achieve this position

today

The question is: What is the key to success that Coca

Cola applied in business? The answer is the marketing

mix strategy of Coca Cola Over years, Coca Cola has

spread its beverages up to 3300 products with a huge

market around 200 countries

4.1.2.1 Product

The Coca Cola firm, founded in the year of 1886, now becomes the leading brand in manufacturing, marketing and distributor of non-alcoholic softdrink Coca Cola’s profitability and potency is well supported by competitivemarketing strategy

world-Figure 3: 4P Analysis

When we think of Coca Cola brand, we are thinking about 300 different companieslocated in more than 200 countries with over 1 million staffs working and everyday

it sells 1.3 billion beverages

Coca Cola originally comes from The United States, yet the popularity of thecompany spread all over the world Today, Coca Cola products appear everywherewith over 94% population of the world could recognize its brand

Coca Cola has very large product category in different types of carbonated softdrink, fruit juices, tea, energy drink, coffee etc

The primary product of the Coca Cola is the Coca Cola classic one, which is thebiggest soft drink in all over the world in history as well as most recognizablebrands The classic Coca Cola was first created in 1886 in Atlanta by mixing CocaCola syrups and carbonated liquid

The company of Coca Cola is multinational manufacturer and it is not limited inproducing one product Through many years the company has created andintroduced 3300 beverages to the world market Here is the top 10 most popularCoca Cola brand products in United States market includes:

 Coca Cola Classic (Coca Cola King):

People call it Coca Cola King! This is the best seller beverage,

which brings Coca Cola company big profit over years The

Coca Cola Classic has captured the souls of the generations of

soda drinker It shows up in all countries except North Korea

and Cuba Coca Cola Classic has become a part of joyful

moment in our life

 Diet Coke (no curves, no calorie):

Diet Coke got 17% beverage market share 2012 There is no

doubt that Diet Coke becomes a competitive product when it

first introduced to the market This product satisfied the

demand of customer in the way it reduces sugar to the lowest

level Diet Coke becomes a big achievement in Coca Cola

company that people in 150 different countries all love this

product

 Dr Pepper

This product earned a lot of cash for the Coca Cola company when

it first introduced to the America market in the early 1900’s Dr

Pepper has created a mass of loyal customer to its company It may

sound unfamiliar to some markets but as the fan of drink say this

product owns unique flavor that no other soft drink can replace

 Sprite

This drink flavor is the mix of lemon and lime, which comes in the

distinctive green can It first came out to the beverage market in the

1960’s to compete the increasing of Pepsi’s 7-Up With the

marketing slogan “Obey your thirst”, this soft drink eventually

caught up its competitor dramatically Sprite is ranked as No 3

beverage worldwide

 Fanta

Fanta is a line products target at family consumers This is a fruit

carbonated beverage, which is healthy and also tasty Fanta is

regarded the second largest brand of the company Fanta is

consumed over 130 million times everyday worldwide The color of

Fanta is colorful which cheers up people who drink this