Running head: CASE ANALYSIS OF COCA-COLA COMPANY 1

Case Analysis of Coca Cola Company

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CASE ANALYSIS OF COCA-COLA COMPANY 2

Executive summary

Coca Cola Company is the second largest company in the world, producing and supplying

carbonated drinks and beverages in close to 200 countries. Coca cola is entitled to work with other

communities in improving the lives of the people. The company utilized a perceptual map in order

to determine the direction of its market demand and products in the market. Perceptual maps are

important in determining the directions that a company has towards their competitors, and the

market demands. This study analysis focuses on Coca Cola VALS information, Organization

background, perceptual maps, Customer Analysis, Segmentation and Targeting, The Company’s

structure, SWOT Analysis, PESTEL Analysis, Financial statement, company vision, and Mission

Statement and Competitive Market Analysis. The company utilizes various strategies to remain

relevant and competitive regarding the needs of the customers and supply. The analysis

demonstrates that Pepsi remain the most competitive company to Coca cola, with customers

preferring the brands at equal measure, however, Pepsi has introduced other fruit and potato

products that supplements their beverages and drinks. The study, gives room for Coca cola to

increase the nutritional content of their products. Product diversification is key to the diversification

of the products within the company.

CASE ANALYSIS OF COCA-COLA COMPANY 3

Case Analysis of Coca Cola Company

Coca Cola is probably one of the interesting organizations in the world today; its success is

thus unrivaled. This paper examines some of the interesting constituents of Coca Cola. Coca Cola is

one of the most dominant companies in the world with its roots in Atlanta. It operates in more than

220 countries in the world. As a result, it does well both in terms of sales and management. This

study analysis focuses on Coca Cola VALS information, Organization background, Customer

Analysis, Segmentation and Targeting, The company’s structure, SWOT Analysis, PESTEL

Analysis, Financial statement, company vision, and Mission Statement Competitive Market

Analysis, etc.

The Company’s old Vision and Mission statements

Mission

The mission of Coca Cola arises from the objective of the company, endurance. The

standard of Coca Cola is to refresh the planet and create occasions of enjoyment and optimism.

Vision

The vision of Coca Cola is based on its desire to achieve quality growth and sustainable

development. They include the following; increasing productivity, building a sustainable planet,

creating a consistent network with customers, and suppliers, and bring to people a quality beverage.

Current Mission and Vision Statement 2020

Mission statement

To effectively participate in refreshing the world in the mind, spirit, and body, this approach

would help in inspiring moments of happiness and optimisms through the brand itself and actions.

Ultimately, these efforts would help in value creation and making a difference.
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The mission statement of Coca Cola is initiated to live a long-lasting legacy in every locality

it operates. The company is usually determined in making differences among the individuals and

the communities that surround the company. At the same time, the company gives them the

freedom to enjoy the products which they have strived so hard to create. The Mission statement,

therefore, is comprised of three distinct elements; exceeding the expectations, improving the

communities, and improving lives.

Vision statement

Promoting the inspiration of one another to be the best by providing the best environment to

work, it must be understood that a better workplace promotes innovation.

The company’s vision statement indicates that the company is determined to inspire others.

The company portrays itself as a venture created to uplift others. That is why it is always ready to

work with other communities and investors to make a positive difference (Shimp, 2015). Secondly,

the company is always determined to be the best. As a result, it encourages expansion, product

improvements, and the creation of outreach programs. Lastly, the company strives to create a better

working place. This reveals the uniqueness of Coca Cola as a brand. This is emphasized by creating

a workplace that accommodates everyone irrespective of a parsons' culture.

The organization's Structure

The company has directly or directly employed more than 93,000 employees from the year

2009. It has adopted a hierarchical organization's structure due to its large structure. Its large

structure has contributed to communication problems. Leadership is based on creativity and

innovation approaches. Lastly, mew offices have been created to ease decision-making at the

grassroots level.
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From the details extrapolated there are at least 5 hierarchical levels at the corporate level.

For instance, one could access working group authority, functional command, and board of

directors (Shimp, 2015). Because of its enormous size, Coca Cola has suffered from communication

difficulties. The best way it attempts to alleviate this problem is by keeping the employees more

engaged. One way of maximizing the effectiveness of the company is strengthening its intranet

capabilities. This approach will effectively raise the communication between the employees and

even attract the management to engage with the employees (Perreault, 2015). The company has also

adopted innovative leadership skills to promote efficiency within the departments and contribute to

higher productivity. It has also initialed several offices, decentralized globally, and the aim of this is

to facilitate proper decision-making at the grassroots level. The business is trigging to promote an

innovative culture to create decentralization.

Perceptual maps

Perceptual maps are used to determine the desire of the customers to buy a brand product

over its competitors. Coca cola faces a stiff competition from Pepsi, and they have customers who

are loyal to their products due to the market values (Jain, 2017). The perceptual map demonstrate

the customers perception based on a product of a company brand. The map below shows the

perceptual map of Coca cola and its competitors.

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Integration of VALS information

According to VALS information, the way individual life directly determines his purchasing

power, and consumer attitudes, desires, and aspirations. The company utilizes this kind of

information to help in developing brand personalities and images. This kind of information is

important for the firm to help them in determining the product preferences, and boost the overall

sales. Consumers' disposable income is another important aspect that is important in sourcing

VALS information, therefore, the higher the disposable income by a consumer the higher the

purchases.

Coca Cola Swot Analysis

Strength Weakness I

-Dominant brand
-Immense focus on drinks
-Diverse brand products
-The company lacks healthy drinks
-Personalization of drinking experience
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Opportunities Threat

-Lack of diversification -Intense competition

-Introduction of alcoholic beverages

Strengths; Coca-cola has established a dominant brand and currently operates in more than

200 countries. As a result, it exists as the largest beverage company in the world. It also boasts of

diverse drinks to satisfy its populations. Some of its popular drinks include Dasani water, Fanta,

Sprite, Power Aid, and Vitamin water (Perreault, 2015). Again the company has been so quick to

gain international acceptance. Consumers at whatever age bracket can enjoy quality products from

Coca Cola.

Weaknesses; the company majorly focuses on drinks. It has done very little to venture into

the production of other edible products like chips, cookies, and potatoes. Pepsi provides the main

challenge to Coca Cola on this front, the competition is even intensified after Pepsi successfully

merged with Frito-Lay and they have been very successful (Perreault, 2015). Another challenge

facing Coca Cola is that even the drinks which they have heavily invested in are not healthy. The

company thus faces the wrath of its consumers who are serious health sensitive.

Coca Cola is exclusively known for its production of its carbonated soft drinks. This lack of

diversification presents an opportunity for Coca Cola. It can promote product diversity by firs

acquiring a snack brand. There is usually a strong connection between snacks and beverages, and

this approach would allow Coca Cola to diversify its inventory (Perreault, 2015). It won’t be a

hectic step since it won’t interfere with the company’s mission statement. Besides, the company

could decide to introduce alcoholic beverages. The alcoholic drink could be tailored in such a way

that it encourages the consumption from a specific age bracket. This idea could be similar to what

Starbucks initiated in 2020 (the evenings). The main that that threatens the survival of the company
CASE ANALYSIS OF COCA-COLA COMPANY 8

is intense competition from Pepsi. Unlike Coca Cola that has failed to diversify, Pepsi has

extensively diversified and went a notch higher and invested in cheese-flavored snacks, tortilla

chips, and pretzels.

PESTEL ANALYSIS

Political Economic Social

-All nations have specific laws

-Interest and -exchange rates -Attitudes among people
that govern businesses.
-unemployment rates -Rate of population growth
-The company falls under the
-labor wages
FDA, that measures product
-inflation
for quality

Technological Legal Environment

Latest technology for its -Abiding by the environmental

-The company has to abide by
manufacturing facilities protection laws in foreign
all the laws in foreign
-Prevalence of bottling countries
countries
partners

Political factors; Coca Cola falls under FDA and as such it follows the stringent measures

laid down by the government in foreign countries. Coca Cola as a company must, therefore, obtain

permission from the FDA before launching any of its products.

CASE ANALYSIS OF COCA-COLA COMPANY 9

Economic factors; if the economic growth of a nation is prosperous, the purchasing power

of its citizen is boosted. Due to the fluctuation that has affected the exchange rates, the revenue

from the company has been severely affected (Shimp, 2015). Besides, if the inflation and

unemployment rate rises, it means that the cost of living has risen too. The factor thus hurts

profitability.

Social Factors; even though Coca Cola has been successful in manufacturing several

products worldwide, all of its products cannot be launched everywhere. This is because; the

company must first study both cultural and social trends in many societies before it releases its

products.

Technological Factors; the company has several bottling partners in the counties where it

operates. The company, therefore, is forced to rely on its bottling partners to aid in the delivery of

quality products (Shimp, 2015). At the same time, it has to guide to ensure that quality is met

without messing up.

Legal Factors; since Coca Cola has to abide by all the regulations in the foreign

country, sometimes, these are what lead to the increase in the production cost. Nevertheless, the

company has remained careful about any impending law.

Environmental factors; the company takes great care in using its renewable plastics

for its PET bottles. Secondly, it has to abide by the protection laws of the countries under which it

operates.

Customer Analysis

Coca Cola I customers are widespread regardless of culture, age, and sex Secondly, the

company boasts of numerous brands to satisfy its global audience. High consumer preferences have

contributes to its overall sales and success.

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People from all walks of life identify with Coca Cola. Both the individuals from high and

low social class purchase the drinks from Coca Cola because they are priced differently. Only the

needs of the customers are thus met depending on what a client orders (Shimp, 2015). Due to the

company’s innovative prowess, it has been able to meet all the preferences of its consumers while at

the same time making a remarkable profit (Shimp, 2015). Its popularity continues to grow and it

has shown no signs of slowing down. If it keeps being innovative, dedicated, and ambitious, it will

continue to make more profits and retain its future clients.

Product Market

Coca Cola as a company offers a wide range of products. The products it offers are superior

in taste quality with very limited fats (Shimp, 2015). Besides, It has both fruits for children and

adults which it utilizes to supplement fruits supply which people utilize for refreshments.

The company offers a wide variety of products; among them are play and rehab. Some of

the juices its avails in the market include; andina fresh, acueducto, and fuze. The mineral water it

offers includes; acquamist, vio, etc. Soft drinks include; Fanta, Sprite, Coca Cola among others.

Furthermore, it offers deeppresso as one of its prominent Coffee and Tea Product. The company has

remained consistent and has never compromised in quality (Shimp, 2015). Despite the emergence

of strong competitors like PEPSI, Coca Cola still boast of the biggest market share and the results

are evident.

Segmentation and Targeting

Segmentation

Segmentation involves the following ingredients; Economic, Geographic Demographic,

Psychographic, and Behavioral approaches.

Under economic integration, the market is divided depending on the income realized by an

individual or a group. Based on this classification the company targets individuals with high
CASE ANALYSIS OF COCA-COLA COMPANY 11

income, medium, and low-income. The company invests in regions where the population is very

high like in towns (Roberts, Stewart, Tingley D., et al., 2013). The high population density in towns

helps in the provision of a ready market for its products. In towns also, people have high deposable

income and can afford luxury beside the basic commodities.

Geographic segmentation; is unique in that it takes into account the variability o climate,

population growth, and population density. The company, therefore, invests in regions where the

climate is stable and higher population growth.

Demographic segmentation; purely rely on humanistic variables like age, gender, ethnicity,

and age. These variables are different in many aspects and a company only applies them in a

scenario deemed critical. In most cases, these factors or variables do not have a direct influence on

the consumers' preferences.

Behavioral segmentation; enables the company to incorporate other variables like price

sensitivity, ret of usage which incorporates brand loyalty, and benefits sought (Blythe, 2014). In this

scenario, the company utilizes this attribute to help in improving the quality of the products it

offers. The consumers always want value for money products. Thus by maintaining superior

quality, it makes it very easy for the clients to make an informed decision.

Targeting

By promoting advertising and promotions, the company is poised to get into contact with

both the high and middles class individuals. Primarily, these categories of people have high

purchasing power.

The innovative prowess by the company has made Coca Cola an easier choice for most

consumers. It is very popular among the members of the public. Coca Cola soft drink is one of the

most prominent and popular brands the company has at its disposal. Its cost is also very low making
CASE ANALYSIS OF COCA-COLA COMPANY 12

it affordable for most consumers across the social classes (Gaudet, 2007). The products are also

packed in smaller quantities because the products are reasonably priced ensuring that the company

does not exploit its consumers and remain relevant in the market.

Competition

Coca Cola operates in a very competitive environment. As a result, to counteract intense

competition, it has adopted product diversification, advertising, and price reduction. Besides, the

company competes in various categories; juice, beverages, and soft drinks, and non-alcoholic

beverages (Adams, 2004).

Competition is healthy for every industry; it helps in increasing innovation while at the same

time aiming at improving the quality of the products. Coca Cola, as a company faces stiff

competition from a variety of players like PEPSI and others (Adams, 2004). It is thus forced to

utilize other techniques to remain relevant. Some of the strategies it has incorporated include price

reduction, and product diversification, and competitive advertising. The competition is particularly

stiff on soft drinks; the high demand for luxury drinks has prompted the rise of other industries who

strive to bridge the gap. Apart from that, the company competes on other areas like; health and

nutrition, tea manufacturing, coffee, and non-alcoholic beverages.

Competitive Market Analysis

The Competitive threats of Coca Cola mainly arise from Pepsi, Cott Corporation, American

Beverage Corporation, Aquaterra, corporation, and Mississauga.

Aquaterra Corporation mainly produces soft drinks flavors. These flavors are sold in many

countries around the world. Many consumers prefer their products because of their stringent

measures on health.
CASE ANALYSIS OF COCA-COLA COMPANY 13

Pepsi Company; primarily known for the manufacture of soft drinks. Some of the

renowned soft drinks it manufactures include; Pepsi, Mountain View among other products. It is

mainly dominant in the US where it is based but it distributes its services to other countries outside

the US (Adams, 2004). The rise in consumers’ preferences has also prompted the company to

venture into non-carbonated beverage manufacture.

American Beverage Corporation, distributes both non-carbonated products and soft drinks

and distributes them to other several countries in the world. The majority of its distribution goes to

Canada, the United Kingdom, and the US, however, other countries also benefit. Just like Coca

Cola its products targets users across different groups like religion, cultural background, and

religion (Adams, 2004). Other companies like Cott Corporation produce very quality drinks like

juices and beverages.

Internal Factor Evaluation Matrix

Strengths Weaknesses

- Strong brand ( weight, 0.09) - High quantity debts (weight 0.10)

- Strong marketing( 0.07) - Cases of health issues(0.10)

- Global availability of the product( 0.10) - Negative publicity ( 0.10)

- High brand equity (0.07)

- Competent workforce ( 0.05)

IFE matrix is a critical tool that is instrumental in measuring the internal strength and the

weaknesses within the company, It is mainly important in the evaluation of the areas such as human
 CASE ANALYSIS OF COCA-COLA COMPANY 14

resource, marketing, legal and compliance, corporate affairs and IT. The total weighted score from

these factors is 2.65; this means that the internal positioning of Coca Cola is better.

Financial analysis; Balance sheet

March 27, December 31,
2020 2019
A SSET S
Current Assets
Cash and cash equivalents $ 13,561 $ 6,480
Short-term investments 1,713 1,467
Total Cash, Cash Equivalents and Short-Term Investments 15,274 7,947
Marketable securities 2,392 3,228
Trade accounts receivable, less allowances of $527 and $524, respectively 4,430 3,971
Inventories 3,558 3,379
Prepaid expenses and other assets 2,580 1,886
Total Current Assets 28,234 20,411
Equity method investments 18,020 19,025
Other investments 652 854
Other assets 6,001 6,075
Deferred income tax assets 2,275 2,412
Property, plant and equipment, less accumulated depreciation of
$8,285 and $8,083, respectively 10,993 10,838
Trademarks with indefinite lives 10,457 9,266
Bottlers' franchise rights with indefinite lives 108 109
Goodwill 16,673 16,764
Other intangible assets 600 627
Total Assets $ 94,013 $ 86,381
L IA B IL IT IE S A N D E Q U IT Y
Current Liabilities
Accounts payable and accrued expenses $ 12,640 $ 11,312
13,657 10,994
Loans and notes payable
Current maturities of long-term debt 5,642 4,253
Accrued income taxes 458 414
Total Current Liabilities 32,397 26,973
Long-term debt 31,094 27,516
Other liabilities 8,832 8,510
Deferred income tax liabilities 1,856 2,284
The Coca-Cola Company Shareowners' Equity
Common stock, $0.25 par value; authorized — 11,200 shares; issued — 7,040 shares 1,760 1,760
Capital surplus 17,312 17,154
Reinvested earnings 66,870 65,855
Accumulated other comprehensive income (loss) (15,696) (13,544)
Treasury stock, at cost — 2,746 and 2,760 shares, respectively (52,088) (52,244)
Equity Attributable to Shareowners of The Coca-Cola Company 18,158 18,981
Equity attributable to noncontrolling interests 1,676 2,117
Total Equity 19,834 21,098
Total Liabilities and Equity $ 94,013 $ 86,381

Financial analysis is directions regarding a company’s liquidity. In order to understand the liquidity

flow in a company, it is important to appreciate the balance sheets. Balance sheets display the

financial ability of a company. The balance sheets help a customer to determine whether to invest
CASE ANALYSIS OF COCA-COLA COMPANY 15

in the company or not. The balance sheet shows an increase in sales, stocks, and short term

equivalence. Coca-cola is thus gaining popularity and stability at the market and is worth investing

in the company.

Income sheet

Income sheets explain the direction of a company whether it is making profits or not. The income

sheet of the Coca-cola company shows that the company is not making profits during the first

quarter of 2020. The reduction in revenues and gross profits as compared to March 2019, can be

attributed to the Coronavirus pandemic that has affected the global markets and the economy across

the world.

SOAR –COCA-COLA
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Globally Coca-cola is a common brand. The company produces beverages and carbonated

drinks to the public in relation to customer demands and supply. The company utilizes various

statistical tools to identify its strengths, weaknesses, opportunities, and threats. The company has

varied strengths in market access. SOAR analysis is Strengths, Opportunities, Aspirations, and

Results. SOAR analysis is an important technique that helps the coca-cola management to

effectively plan and manage the company. According to the internal evaluation matrix, the company

demonstrates that it has the following strengths; strong brand. Coca-cola brand is one of the brands

that have emerged and occupied the markets, around the world. Coca-cola is entitled to ensuring

that there is brand equity to allow it to gain customer satisfaction and loyalty.

The company has opened up various opportunities to the people around the globe, through

employment creation, the innovation of new products is beneficial in increasing the opportunities

available within the company. The company takes a bride in the use of techniques to determine the

direction of the business in the over 200 countries that the company has established itself. The

aspirations of the Coca-cola Company include ensuring that there is increased productivity, that

leaders to building a sustainable planet, through a consistent network of customers and suppliers

(Roberts, Stewart, Tingley D., et al., 2013). If the company is aspiring to expand beyond the 200

countries, then there is a need for the company to attract equality and a competent workforce.

Company competitiveness is key when assessed scientifically; using tools such as Pestel analysis,

SWOT analysis, and customer analysis. Integrating business needs based on geographical locations

is important in ensuring that the employees are able to get home in the evening.

Doubts and Uncertainties- Coronavirus

The influence of Coronavisus pandemic has not only impacted on health negatively but

businesses as well (Roberts, Stewart, Tingley D., et al., 2013). Some of the impacts it has had
CASE ANALYSIS OF COCA-COLA COMPANY 17

especially for Coca Cola Company include the following; Retrenchment and job loss, Limited

brand promotion, Store closure, reduced profits and Limited quantity products generated.

The Coronavirus has severely affected business operations around the world and Coca Cola

is not spared either. Many jobs have been lost and several employees retrenched. Besides, it has

reduced brand promotion thereby reducing brand awareness especially in countries where it has

limited dominance. Several stores have also been closed in many countries and it is not certain

when they will be re-opened. Overall, the results have also affected the overall profit generation due

to the limited quantity of the products produced and the overall cost of production.

Recommendation

It is without a doubt that Coca Cola has done a tremendous job in the past. However, there is

still room for it to improve even further and increase its stake in the market. Some of the vital

approaches it could use include; amending contracts with its bottling partners and hiring people

from the masses.

The company should try and amend the contracts it has with its bottling partners. The

company should have the power to intervene on behalf of the bottling partners. The company was

previously accused of mixing harmful pesticide contents with the drinks in India. This could not

have happened had they been more cautious and had the power to intervene. Secondly, the company

hires influential people for advertising campaigns. They pay hefty fees for their services, instead,

they should hire individuals from the masses. This approach will make the advertisement to have

great appeal to the public.

Conclusion

From the analysis, it is true that Coca Cola is highly profitable, has gained International

Acceptance, has PEPSI as its main competitor, has limited diversity, and ultimately as it attracts

consumers across diverse social groups.

CASE ANALYSIS OF COCA-COLA COMPANY 18

Coca Cola Company is one of the most successful brands in the world. It operates in more

than 200 countries and this underlines its success. Its products have the highest appeal from the

public and that is why the company was quick to gain global acceptance. Despite, its immense

success the company faces intense competition from PEPSI which has so far diversified its products

portfolio. It is thus instrumental for the company to remain innovative if it has to counteract the

inroads made by PEPSI. Lastly, the company products are suitable for all individuals regardless of

age or social groups.

CASE ANALYSIS OF COCA-COLA COMPANY 19

References

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Chemicals.

Gaudet, B. (2008). Coca Cola. Web

Blythe, J. (2016). Essentials of Marketing Communications.

Jain, R. (2017). Major branding decisions and strategies. International Journal in Management &

Social Science, 5(5), 366-372.

Roberts, ME., Stewart BM, Tingley D et al. (2020). “The structural topic model and applied social

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Topic Models: Computation, Application, and Evaluation.

Perreault, W. (2015). Basic Marketing: A Marketing Strategy Planning Approach,( 17th Ed.). New

York, NY: McGraw-Hill Publishers.

Shimp, T. ( 2015). Advertising, Promotion, and Other Aspects of Integrated Marketing

Communications. ( 7th Ed.). Mason, Ohio.

CASE ANALYSIS OF COCA-COLA COMPANY 20

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