Market Focus And Growth Strategy Of The Coca Cola Company Business Essay

Market Focus And Growth Strategy Of The coca political programt plant green goddess Company c be EssayPart 1- Internal/External FitIntroductionEstablished in 1886, the coca locoweed Company operates in more than than 200 countries markets more than 500 crisscrosss 3,300 drinkable mathematical crops. The coca Cola Company explains its operations system this way. We ar a global business that operates on a local plateful in every comm social unity we do business The guild confides its strengths lie in their powerfulness to see a global reach at the equivalent sequence guard a local focus. The club has more than 300 bottling breachners worldwide. The coca plant Cola Company manufacturers sells concentrates, drink bases syrups to bottling operations accepts the brands is responsible for consumer brand market initiatives. The bottling partners manufacture, slowlywargon system, merchandise distribute the finished branded beverages to their customers vendi ng partners, who then sell the Coca Cola products to consumers.Organizational StrategyProduct/Market FocusCoca poop is a participation that issues that their main priority is to reach their products to the customers. Coca cola focuses on improving the product itself either by spirit, taste, ingredients, size, convenience, and many make believeer(a) factors. Coca-Colas target market satisfies a wide variety of cultural consumers rough the world. More everyplace, their products target plurality who ar health conscious and people who are on a diet. Their products do fit all age groups from the young to the old. There are Coca-Cola products for the athletes who train for a sport, such as indicantade (Coca-Cola Product). Also, this company has focused on people who need coffee in the morning before they go to wrench. Coca- Cola owns a joint venture with Illycaffe, Italy coffee brand which is primarily for the people who are coffee-lovers. The focus of this market, Coca Cola, i s applicable to both male and females. Coca- Cola does engage in product diversification throughout the world. vitamin C a product is mainly directed to the young children. Their advertisements are mostly directed to the young. Coke wants to target the young because they know their product bequeath endue youths power and energy. mark off extension strategy has played a key billet on Coke. Coke introduces new products under their tag Coca-Cola. rat extension strategy is quite effective under the Coke trademark. There will be this recognition and realization from consumers, that they will be drinking a Coca Cola product. Brand extension strategy puts a new product into an existing market. Diet Coke is an example of brand extension strategy which became successful. For instance, Diet Coke has been recognise gradually by consumers worldwide, it has low calories and has been sold over 100 countries. It promotes liveliness and energy to consumers similar to Coke. Many consumers wh o do enjoy coke as a downlike drink, at that place would be a higher probability for a consumer to try a canful of diet-coke due to brand awareness.Rationale Coca Cola Company wants to continue focusing their needs for consumers with regards to delivering innovative food products which includes energy drinks, vitamins, and antioxidant drinks. Furthermore, Coca Cola is focusing on creating a healthy and active life-style that is more adaptive to consumer behavior. Coca cola is geting with their bottling partners to enhance customer relationships and put forward their products widely known and distributed everywhere.Growth Strategy/GoalsHard goalsIn harm of its growth strategy, which is their market position in the beverage industry, Coca Cola Company is concentrating in opening more opportunities in give awaying markets by leverage the outperform reach of the Coca Cola system to shape capture value. The company intends to accomplish it by sharpening their execution at the occlusive of sale and expanding the brand portfolio. The company has projected that these spuding markets are expected to stick out approximately 20 percent of incremental population growth over the next 10 years. Personal expenditure per capita in these markets is expected to increase by 65% over the next tenner. Furthermore, Coca Cola company look tos that developing markets will contribute approximately of the incremental unit case volume by 2020.RationaleThe coca cola companys long term growth strategy of investing in emerging markets, is related to the Coca Cola Company projections in these markets. The CCC attributes this to a positive correlation between wealth and the increase in ingestion of Nonalcoholic ready-to-drink(NARTD) beverages. From now to 2020, more than 1 billion people will join the middle class, and the per capita wealth for individuals will increase by nearly 30 percent. They permit the ability to invest in new plants in places like china India. Over the next 3 years Coca Cola company plans to invest $2 billion, 3 new plants are expected to be finished in that time period. The company clearly understands in order for mean strategy to be attained, consumer access and system alignment is key to their growth in these emerging markets. This means placing more coolers throughout these countries, in order to shoot on-the-go consumption.Soft goalsThe Coca Cola company is in addition encouraging their partners in the value chain, to enhance their squishy skills within these developing markets. The company is focused on growing annual consumption of beverage products. The company intends to piss with its bottling partners to establish new customer relationships grow existing ones, from street vendors restaurants, to large-scale grocers.RationaleThe reasonableness why the CCC emphasizes the development of soft skills, the Coca Cola Company has a vast distribution network to contend with. To remain a attractor in the beverage indu stry, communicating with its partners along the value chain is an important construction of their continued success in the beverage industry. As I have said, Coca Cola Company has a huge distribution network and it is one of the best distribution network in the world, nobody in the beverage industry can match this tremendous asset. some other reason why the Coca Cola company is successful in its core activities, stems from its mission, vision values. This is the stem where the CCC can attribute its success, its long-term strategy to become the most widely available consumed soft drink in the world. Perhaps the following averment which comes from the CCCs mission, vision values strategic outlook can be deemed a poignant assertion. The world is changing all around us, to continue to thrive as a business over the next ten years, beyond, we must look ahead, understand the trends forces that will shape our business in the future move fleetly to prepare for whats to come. We m ust get ready for tomorrow, today.MissionThis is Coca Colas mission statement To refresh the worldTo inspire moments of optimism and happinessTo bring out value and act upon a dispute. Coca Cola company mission statement clearly defines the purpose for which and reason why they exist as an judicature. The employees must be tone they are a part of an organization that knows where it is heading, in toll of the words it uses with their mission statement. to create value make a difference resonates with belonging to an organization, that wants to create a culture of empowerment and continuous improvement.VisionCoca Cola Companys vision statement is a run away to what the company needs to accomplish so it can achieve sustainable and quality growth. The CCC vision statement is ground on what we will call the half-dozen Ps (people, portfolio, partners, planet, profit, productivity)People Be a great place to work, where people are inspired to the best they can bePortfolio Bring the world a portfolio of quality beverage brands that anticipate satisfy peoples desires needs.Partners Nurture a winsome network of customers suppliers, together we create mutual enduring value.Planet Be a responsible citizen that makes a difference by helping build support sustainable communities.Profit Maximize long-term to shareowners while being mindful of our overall responsibilities.Productivity Be a highly effective, lean fast-moving organization.Culture of CCCThis quote epitomizes their culture Our Winning Culture Our winning culture defines the attitudes and behaviours that will be required of us to make our 2020 vision a realitySuch is the importance of the Mission Vision of the CCC, I believe it is important to include the culture of this company. Because the culture shapes the attitudes behaviours of the everyone that works for the organization. The Coca Cola Company is identified with having a strong culture The CCC has incorporated the culture with their 2020 Vis ion, which is a long-term strategy aimed to be a RoadMap for mind the trends and forces that will shape their business of the future. The CCC says it is a preparation of whats to come designed to seize on opportunities once they have been identified. This roadmap is based on winning together with their bottling partners.Values of The CCCLive Our Values Our values serve as a compass for our actions and describe how we behave in the world.Leadership The fearlessness to shape a better futureCollaboration Leverage collective geniusIntegrity Be realAccountability If it is to be, it is up to mePassion move to heart mindDiversity As inclusive as our brandsQuality What we do, we do swellValues as we understand, act as a guide for our individual actions and group behaviour. They are the m spoken compass in our every day interactions with the internal external environment, customers, associates, public, family, friends, and institutions,RationaleThe Coca Cola Companys mission, vision, c ulture, and values, defines and shapes the companys objectives into measurable expressions of what the organization intends to achieve. They include a mixture of hard and soft goals, the hierarchy or top management at Coca Cola Company understands they have to develop a blueprint that employees and the bottling partners can follow and identify with being successful in their business. One striking example comes from their vision statement one of the six Ps, which states, People be a great place to work, where people are inspired to the best they can be Another vision statement says Partners reproduction a winning network of customers suppliers, together we create a mutual enduring value The CCCs vision, culture and values create an atmosphere of individual attainment and group accomplishment. Where the essence of individual talent is nurtured and encouraged, and group effort is identified as an important contributor to the goals of the CCC.Core activitiesThe value of change plays an important part in the core activities of the Coca Cola Company because the company relies a lot in its suppliers, the bottles companies and the people selling the product. The suppliers are from people they get there ingredients like sugar, coffee, citrus around the world, the water they use in the process of making the beverage to the people in charge of the packaging.. Then come in role the Coca Cola system which is basically where first the company produces the beverages and then comes in play the bottling partners. They are independent bottling partners in charge manufacture, computer software and distribute the concluding product. Finally there is the selling the beverages process where the final products are packn to the warehouse for being distributed to retail outlets. The products are then distributed to the customers that are supermarket, convenience stores, restaurants, etc. And also to the vending machines and coolers that are place in strategic locations to reach all customers. And that way the product finally reach the consumers, around 1.6 billion time a day are the products consumeCoca Cola Company depends a lot in other part to take the products to the consumers. They treat them with respect and importance and make them realize the importance of their work to the coca cola system. They have been using this system for years and so faraway had work perfectly. They are focus in the need of the consumers, the customers and the franchise partners they debate in terms of globalization, they are always aware of change. They also use an war-ridden marketing strategy. Almost everywhere and in the most important events you can see a Coca Cola logo, they have billboards, commercials, products that will be associated with Coca Cola.RationaleThe core activities are an important play for the company because if what makes them different from the rest of the company. They depends a lot in the suppliers the bottling companies and the customers. They p lay in an important role in making the product as the suppliers give them the prime materials. Then there are the bottling companies that are play an equal significant part, they are the package where the product is deliver and if you can see the bottle of the products of the company are immediately associated with the company. For example Coca Cola has a unique bottle design that everyone in the world with associate or recognized.Value PropositionCoca -Cola Company is an organization which provides value for their consumers and customers. Customers are their energy source for this organization. Creating the value starts with their coca cola products. Hence, this can greatly be achieved by greater variety of brands, pricing, packaging, and affordability. In addition, Coca-Cola products do focus on the customer lifestyle in terms of satisfaction. For example, if a person were to be on a diet, well there is diet coke. Hence, Coca Cola does engage in the customer needs in terms of the product. Coca- Cola has over nearly 400 brands (including water, juice, teas, coffees, energy drinks, and especially sodas) and wants to engage consumers to try something refreshing and new. It really comes down to choices for consumer in terms of coca cola products. Coca-cola brands include Fruitopia, Fanta, Sprite, Dasani, Nestea, Powerade, and many more brands. One of Coca-Colas slogans was Open Happiness. This slogan was represented to the consumers and was meant to letting the consumers enjoy their products. Coca Cola is able to meet todays non-alcoholic beverage needs of consumers. Coca Colas current value proposition is The Coke Side of Life which represents happiness when you open up a can of coke or any other Coca-Cola product. The Coke Side of Life explains that it is an enjoyable, comfortable, and sociable environment when one actually consumes a Coca-Cola product.Rationale Coca Cola Company continues to work on research/development and focus on making new products. For i nstance, a can of coke has a secret formula that will be difficult to imitate. Coca Cola products are significant because they make each product unique.Internal Fit/FactorsPorter 5 Forces AnalysisThreat of EntrantsCoca-Cola does have a lot of competitors in the soft drink industry. The threat of entrants is low for the soft drink industry. There are very few entrants who can grapple with Coke. In addition, a barrier to entry when entering the soft drink industry would be a high working capital investment. If you dont have that high capital investment it would be hard to enter the industry. Coke nearly earns 48% of the soft drink industry and there are no competitors that are nowhere near coca colas distribution. Coca-Cola has over 500 brands of products which are potentially substitutes. To get the point, the buyer can switch from one product to another at no cost under the Coca Cola brand. Nowadays, consumers are really being health-conscious about their health. So they may not be interested in soft drinks but look at tea, juices, milk and even water. Certainly, Coke does have these products on hand. If Coca Cola decides to increase most of their product by a $0.50 increase, it would be very likely, consumers would buy Pepsi products. Coke can lose its profits margin and can have a major impact on the trademark itself if they increase prices. Price is a huge factor to take into consideration with regards to other entrants. The challenge for this organization today and the future is to focus private companies because they can imitate the products and put cheaper prices. Private companies currently earn 14.4% of the soft drink industry. Having strong barriers prevents from this rising situation to happen. One strong barrier to entrant that prevents from glide slope would be distribution channels. Coca cola has their products everywhere on their store shelves which make it accessible to consumers while new private companies will have a hard time selling their products to wholesalers, retailers, and distributors.Rationale Entrants are slowly rising to the carbonated soft drink industry and as organization must attain new barriers. Coca-Cola should continue to develop their brand loyalty worldwide and convince consumers to have reliability in their products.Barriers to entryOne of the 5 forces that shape the soft drink industry is barriers to entry. The Coca Cola company says on its website it is facing strong competition from well-established global companies and many local participants. For this particular industry, the competitive forces are benign, (favourable). Most of the companies in the soft drink industry are profitable. The Coca Cola companys main competitors are Dr.Pepper, Nestle and Pepsico. These companies definitely have the advantage over there competitors. In porters 5 forces, Porter refers to supply-side economies of scale, where firms such as the CCC and Pepsico can produce at large volumes enjoy lower costs per unit bec ause they can spread fixed costs over more units, employ more efficient technology, or command better terms from suppliers. According to Porters article, supply-side scale economies deter entry by forcing the aspiring entrant either to come in the industry on a large scale, which requires dislodging entrenched competitors. How does a freshman circumvent the barriers to soft drink industry? Perhaps create new distribution channels of their own. Creating a niche market for their drink in the form of marketing to a certain segment in the soft drink industry.Competitive RivalryCompetitive rivalry is between two main competitors the Coca Cola Company and Pepsico to satisfy the taste of consumers in this industry. Last month Beverage Digest reported that Pepsi-Colas market share fell 0.5 percentage point while Diet Coke slipped just 0.1 percentage point in the U.S. supermarkets, convenience stores and other retail outlets. The two companies have fought over the past decade to win market share from one another as overall sales dropped. This relates to Porters article on the 5 competitive forces that shape strategy. There is an eager rivalry between these two companies. According to porter high rivalry, limits the profitability of the industry. The Coca Cola Company and Pepsico are competing based on brand image.Power of the buyersOne of the 5 forces of porter is buyers the power of the, for Coca Cola Company the power of the buyers is high. They play an important role in the Company process because they are part of the distribution process of the company. They play an important role in distributing the system so it can reach the consumers. They are part of the company and the process. They are part of the strategy used by the company.Power of the suppliersAnother of the 5 forces of porter is the suppliers. As well they play an important role in the company process so they have a high power. They have a high power because they also play an important part of the proc ess of the soft drinks. If they decided to boycott the company it will caused them serious damages. There will be a cost to switch suppliers because they will have to build a relationship since 0 and might lost incomes for doing that.External Fit(Diamond E. Model)Management PreferencesThe senior management team wants to increase the efficiency and effectiveness in the production and bottling sector. With regards to economies of scale, Coke continues to increase production at a low cost. As production of Coca Cola products increase, the cost of producing each unit falls. Moreover, the senior management continues to think about new products (in addition to their 500 products), develop beverages, make new chopines and promotions, and meet the needs of customers.The senior management continues to strive for sustainability in their organization. Coca cola recently launched their plant bottle packaging, which basically means they have created their PET bottles from plant based materials. Hence, makes their product 100% recyclable. Muhtar Kent, chief operating officer continues his covenant with sustainability. In 10 years, he plans to reduce coca colas emission by a half.To continue improving performance, Coca-Cola continues to update their technology with regards to quality control. As well continue using better material for their products. In addition, this organization is starting to develop their products in rural areas of the world. The senior management team wants to let consumers know that they are the most combininged carbonated soft drink company and strive to achieve leadership in corporate sustainability.Rationale The main preferences for Muhtar Kent, CEO, wants to develop and raise their brands, enhance revenue growth and increase productivity within their products.ResourcesThe resources on the Coca Cola Company according to the Diamond E. Model are first the all the resources that the company have to keep on growing and innovating. From the sharehold ers to the investors, etc. The company has used many of these resources to create healthy products or bio pally products. They are aware that many of their ingredients comes from the environment and the nature so they are trying to created a friendly environment where the environment is being look after. They have different programs that are meant to help the environments to corroborate the natural resources of the land. This is very important because if one of the products they use is gone they wont be able to produce the product anymore.OrganizationWhat is the structure, leadership and unique features of the Coca Cola Company in relation to Fry/Killing Diamond E Model. It is what is referred to as the Coca Cola system, which comprises 300 bottling partners worldwide. The coca cola system operates through multiple local channels, the company manufactures and sells its concentrate, beverage bases and syrups to bottling operations, owns the brands and responsible for consumer brand marketing initiatives. The bottling partners manufacture, package, merchandise and distribute the final branded beverages to customers and vending partners, who then sell the products to consumers. It is no wonder the coca cola company has one of the best distribution systems in the world and the ability to penetrate in markets where no company can duplicate is attribute to the structure and leadership at the Coca Cola company. The other unique aspect is the relationship it has with its bottling partners, who in turn works closely with customers, like grocery stores, restaurants, street vendors, convenience stores, movie theatres, and amusement parks to execute localized strategies genuine in partnership with the company.Part2The strategic meditate we chose for our organization was Brand manager and the requisite job we chose was a Truck Driver/Vending Machine Supplier. necessity Job at Coca Cola Truck Driver/Vending Machine SupplierThe requisite job for the Coca Cola company we agree to use was the truck driver/vending machine supplier. This type of worker requires high inculcate education, has to be licensed to drive a truck, may assume some lifting and moving heavy case of soft drinks. It would be an asset to be in good physical condition. But it is not a requirement. The job incumbent must be personable, because you are dealing with customers and consumers of the company on a daily basis. It would be ideal to hire from within the company a group of truck driver/vending machine suppliers, but due to the supply of this type of worker. We will hire from outside the company. It is easy to hire from a pool of truck driver/vending machine stockers.Duties-Responsible for delivering product and filling vending machines at all points of availability.-Collects and is accountable for money-Check accuracy and stability of the burden-Restock machine to proper level, maintaining accuracy in stock levels-Invoice and collection of monies-Securing company assets-Ensu re the machines are clean and in good working order-Ensure compliance with restrictive and company policies and procedures-Settle all accounts daily-Ensure product codes and Health codes are adhere to-Report damage to machines-Load supplies in a vehicle, such as a truck-Establish and maintain good customer relations with business owners and operatorsKnowledge/Skills/Attributes/other attributes of a Truck Driver/Vending Machine SupplierKnowledge-knowledge of the English language-Able to provide customer service and inter in-person relationships on one on one basis.-able to provide and identify customer service needs in a group dynamic situation.-being able to evaluate quickly customer service needs and know how to meet those needs-knowledge of simple mathematics and statistics-knowledgeable of relevant equipment and company safety policies and procedures.-able to understand and read provincial regulations, regarding the safe operation of a vehicleSkills-active listening-speaking-Cri tical thinking-Coordination-Service orientation-Judgement and Decision-making-WritingAbilities-Oral comprehension-Good Vision-Ability for good oral expression-Speech clarity-Written Comprehension-Control Precision-Depth PerceptionOther Attributes-Ability to perform and work directly with the Public-Able to deal with external customers-Able to have Face-to-Face discussions-Able to work with a group or team-Is able to work outdoors, exposure to all types of weather-Able to handle the daily contact with the same people in a professional and polite mannerLabour Market for a Coca Cola Truck Driver/Vending Machine Supplier ground on the duties and KSAOs of this type of work at the Coca Cola company. We are not just looking to hire any driver. They need to have the acquire in dealing with customers and the public. They must be committed to working for the company, because we are going to be testing the potential hirees. The testing will be based on questions about our companys occupationa l health procedures and equipment operation. The potential hirees will be tested on English language proficiency and Mathematics problem-solving etc They will also be quizzed on customer service skills. What type of interpersonal skills do they possess? This type of job consists of daily contact with customers and business owners. We will give provide further training for those drivers/vending suppliers at the companys expense. Based on these requirements for the job, we will need to find certain individuals that possess a high school diploma, with a clean driving record. The company is confident that we will find these talented people to come and work for the Coca Cola company. The CCC will provide the additional training to enhance skills such English, written and oral comprehension. The training will also involve a simulation of driving a Coca cola delivery truck. How to handle tight corners for example, or driving on the highway, avoiding dangerous maneuvers, while changing lane s. We at Coca Cola believe we can, attract and retain this type of driver. They will go through Coca Cola University, and once they complete their goals with a certificate. They will have the ability to work anywhere in Canada and the U.S. The company believes by showing that commitment and mental picture to our people in this case, our truck driver/vending suppliers, we have created a our own market.BenefitsThe benefits are-Training at the Coca cola university for only selected hirees.-Health, Dental, Vision Plan-an employee who requires work-life balance, can ask for it. This might involve parental leave or personal leave program. It is our belief at our company that we have invested time and training for our employees, in order to retain and attract future employees this is one benefit at the coca cola company will a mainstay. We also have wellness programs, so our employees have the option of going into a fitness program at the no cost to them. We have financial planning benefi ts that our Truck driver/vending suppliers can take advantage of, so they can plan for the a secure future for their families.CompensationWe would start the new hirees at $13 hourly rate,work, after one year to $15/hr- enventually topping at $30/hr. The performance pay would be based on individual performance. We are designing the merit grantes into the compensation package. One form of a bonus incentive could be showing up for work consistently. Or we could gear it to production like serving a number of vending machines or a certain number of clients. The other options are, since this type of work involves excellent customer service skills, we could start to give bonuses to employees who score high on customer service. Another type of bonus, could be about minimizing errors by truck delivery personnel on the most efficient routes for delivering products of Coca cola. We would also encourage the participation of employees on what type of bonuses they like to attain. Research has sh own that employees who work to challenging but attainable goals, especially when they had a role in formulating these goals-outperform those without specific work goalsRecruitmentIt is our belief that the best form of recruiting for future truck delivery drivers is externally. Although we will encourage the input of our present employees about their ideas on who would be an ideal candidate, people they know. We trust our employees input, this method of HR forecasting may not be sophisticated but it assures the involvement of our employees for this type of work. It also ensures the employees, that the company has invested this much training and time for their personal development, they become part of decision-making. External recruit reduces our HR costs somewhat, but the investment we make in the training we provide is offset by performance bonuses and compensation packages. The company becomes profitable because of our incentives and the commitment by our truck driver/vending suppl iers.PAQBased on the type of work is involved in becoming a Truck driver/vending specialist, we believe the PAQ method for analyzing specific techniques of this job will be sufficient. It is a structured job abridgment checklist of items or job elements used to rate a job. The PAQ method will complement the expected performance standards set in areas, such