Cocal Cola - Report

TABLE OF CONTENTS

TABLE OF CONTENTS....................................................................................................1 MISSION, VISION & VALUES........................................................................................2 Mission Statement ........................................................................................ ...........................2 Vision Statement ........................................................................................................ ..............2 Values........................................................................................................................................ .2

HISTORY OF COCA COLA..............................................................................................3 BRANDS OF COCA COLA.............................................................................6 Energy Drinks.................................................................................................................... .......6 Juices/Juice Drinks........................................................................................................ ...........6 Soft Drinks............................................................................................................ ....................6 Sports Drinks............................................................................................................ ................7 Tea and Coffee.................................................................................................. ........................7 Water......................................................................................................................... ................7 Other Drinks.............................................................................................................. ...............7

COCA COLA’s MARKETING ..........................................................................................8 Objectives/Goals ................................................................................................... ...................8 Target Market .............................................................................................................. ............8 Marketing mix ................................................................................................. ........................8 Product....................................................................................................................................................8 Price........................................................................................................................................................9 Promotion................................................................................................................................................9 Placement..............................................................................................................................................10

COCA-COLA FINANCIAL ANALYSIS..........................................................................11 Coca-Cola Financial Information.............................................................................. ............11 Coca-Cola Competitive Intelligence.................................................................. ....................11 Coca-Cola Income Statement............................................................................................ .....11 Coca-Cola Quarterly Statements......................................................................................... ..12 Coca-Cola Financial Ratios................................................................................................... .12

Marketing Report

MISSION, VISION & VALUES Our mission, vision and values outline who we are, what we seek to achieve, and how we want to achieve it. They provide a clear direction for our Company and help ensure that we are all working toward the same goals.

Mission Statement Our mission declares our purpose as a company. It serves as the standard against which we weigh our actions and decisions. It is the foundation of our Manifesto.  To refresh the world in body, mind and spirit.  To inspire moments of optimism through our brands and our actions.  To create value and make a difference everywhere we engage.

Vision Statement Our vision guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable growth.  People: Being a great place to work where people are inspired to be the best they can be.  Portfolio: Bringing to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs.  Partners: Nurturing a winning network of customers and suppliers, together we create mutual, enduring value.  Planet: Being a responsible citizen that makes a difference by helping build and support sustainable communities.  Profit: Maximizing long-term return to shareowners while being mindful of our overall responsibilities.

Values Our values serve as a compass for our actions and describe how we behave in the world.      

Leadership: The courage to shape a better future Collaboration: Leverage collective genius Integrity: Be real Accountability: If it is to be, it's up to me Passion: Committed in heart and mind Diversity: As inclusive as our brands 2

Marketing Report  Quality: What we do, we do well

HISTORY OF COCA COLA Coca-Cola® originated as a soda fountain beverage in 1886 selling for five cents a glass. Early growth was impressive, but it was only when a strong bottling system developed that Coca-Cola became the world-famous brand it is today. 1894 – A modest start for a Bold Idea In a candy store in Vicksburg, Mississippi, brisk sales of the new fountain beverage called Coca-Cola impressed the store's owner, Joseph A. Biedenharn. He began bottling Coca-Cola to sell, using a common glass bottle called a Hutchinson. Biedenharn sent a case to Asa Griggs Candler, who owned the Company. Candler thanked him but took no action. One of his nephews already had urged that Coca-Cola be bottled, but Candler focused on fountain sales. 1899 The first bottling agreement Two young attorneys from Chattanooga, Tennessee believed they could build a business around bottling Coca-Cola. In a meeting with Candler, Benjamin F. Thomas and Joseph B. Whitehead obtained exclusive rights to bottle Coca-Cola across most of the United States (specifically excluding Vicksburg) -- for the sum of one dollar. A third Chattanooga lawyer, John T. Lupton, soon joined their venture. 1900-1909 … Rapid growth The three pioneer bottlers divided the country into territories and sold bottling rights to local entrepreneurs. Their efforts were boosted by major progress in bottling technology, which improved efficiency and product quality. By 1909, nearly 400 Coca-Cola bottling plants were operating, most of them family-owned businesses. Some were open only during hot-weather months when demand was high. 1916 … Birth of the contour bottle Bottlers worried that the straight-sided bottle for CocaCola was easily confused with imitators. A group representing the Company and bottlers asked glass manufacturers to offer ideas for a distinctive bottle. A design from the Root Glass Company of Terre Haute, Indiana won enthusiastic approval in 1915 and was introduced in 1916. The contour bottle became one of the

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Marketing Report few packages ever granted trademark status by the U.S. Patent Office. Today, it's one of the most recognized icons in the world - even in the dark!

1920s … Bottling overtakes fountain sales As the 1920s dawned, more than 1,000 Coca-Cola bottlers were operating in the U.S. Their ideas and zeal fueled steady growth. Six-bottle cartons were a huge hit after their 1923 introduction. A few years later, open-top metal coolers became the forerunners of automated vending machines. By the end of the 1920s, bottle sales of Coca-Cola exceeded fountain sales. 1920s and 30s … International expansion Led by longtime Company leader Robert W. Woodruff, chief executive officer and chairman of the Board, the Company began a major push to establish bottling operations outside the U.S. Plants were opened in France, Guatemala, Honduras, Mexico, Belgium, Italy, Peru, Spain, Australia and South Africa. By the time World War II began, Coca-Cola was being bottled in 44 countries. 1940s … Post-war growth During the war, 64 bottling plants were set up around the world to supply the troops. This followed an urgent request for bottling equipment and materials from General Eisenhower's base in North Africa. Many of these war-time plants were later converted to civilian use, permanently enlarging the bottling system and accelerating the growth of the Company's worldwide business. 1950s … Packaging innovations For the first time, consumers had choices of Coca-Cola package size and type -- the traditional 6.5-ounce contour bottle, or larger servings including 10-, 12- and 26-ounce versions. Cans were also introduced, becoming generally available in 1960. 1960s … New brands introduced Following Fanta® in the 1950s, Sprite®, Minute Maid®, Fresca® and TaB® joined brand Coca-Cola in the 1960s. Mr. Pibb® and Mello Yello® were added in the 1970s. The 1980s brought diet Coke® and Cherry Coke®, followed by POWERADE® and DASANI® in the 1990s. Today hundreds of other brands are offered to meet consumer preferences in local markets around the world. 1970s and 80s … Consolidation to serve customers As technology led to a global economy, the retailers who sold Coca-Cola merged and evolved into international mega-chains. Such customers required a new approach. In response, many small and medium-size bottlers consolidated to better serve giant 4

Marketing Report international customers. The Company encouraged and invested in a number of bottler consolidations to assure that its largest bottling partners would have capacity to lead the system in working with global retailers.

1990s … New and growing markets Political and economic changes opened vast markets that were closed or underdeveloped for decades. After the fall of the Berlin Wall, the Company invested heavily to build plants in Eastern Europe. And as the century closed, more than $1.5 billion was committed to new bottling facilities in Africa. 21st Century The Coca-Cola bottling system grew up with roots deeply planted in local communities. This heritage serves the Company well today as people seek brands that honor local identity and the distinctiveness of local markets. As was true a century ago, strong locally based relationships between Coca-Cola bottlers, customers and communities are the foundation on which the entire business grows.

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Marketing Report

BRANDS OF COCA COLA Coca-Cola Zero® has been one of the most successful product launch hes in Coca Cola’s history. In 2007, Coca Cola’s sold nearly 450 million cases globally. Put into perspective, that's roughly the same size as Coca Cola’s total business in the Philippines, one of our top 15 markets. As of September 2008, Coca-Cola Zero is available in more than 100 countries.

Energy Drinks For those with a high-intensity approach to life, Coca Cola’s brands of Energy Drinks contain ingredients such as ginseng extract, guarana extract, caffeine and B vitamins.

Juices/Juice Drinks We bring innovation to the goodness of juice in Coca Cola’s more than 20 juice and juice drink brands, offering both adults and children nutritious, refreshing and flavorful beverages.

Soft Drinks

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Marketing Report Coca Cola’s dozens of soft drink brands provide flavor and refreshment in a variety of choices. From the original Coca-Cola to most recent introductions, soft drinks from The Coca-Cola Company are both icons and innovators in the beverage industry.

Sports Drinks Carbohydrates, fluids, and electrolytes team together in Coca Cola’s Sports Drinks, providing rapid hydration and terrific taste for fitness-seekers at any level

Tea and Coffee Bottled and canned teas and coffees provide consumers' favorite drinks in convenient take-anywhere packaging, satisfying both traditional tea drinkers and today's growing coffee culture.

Water Smooth and essential, our Waters and Water Beverages offer hydration in its purest form.

Other Drinks So much more than soft drinks. Coca Cola’s brands also include milk products, soup, and more so you can choose a Coca Cola Company product anytime, anywhere for nutrition, refreshment or other needs. 7

Marketing Report

COCA COLA’s MARKETING Marketing is the role used by the business to plan, price, promote and distribute products/services to individuals. The Coca-Cola Company's marketing includes:

Objectives/Goals Coca-Cola main objectives are to supply everyone their favorite drink and to satisfy the consumer needs and wants. Coca-Cola second main objectives are to provide profit to the shareholders and increase the market share.

Target Market The company's beverages are generally for all consumers. However, there are some brands, which target specific consumers. For example, Coca-Cola's diet soft drinks are targeted at consumers who are older in age, between the years of 25 and 39. PowerAde sports water target those who are fit, healthy and do sport. Winnie the Pooh sipper cap Juice Drink target children between the ages 512. This type of market approach refers to market segmentation. The Coca-Cola Company when advertising, has a primary target market of those who are 13-24, and a secondary market of 10-39.

Marketing mix Product The Coca-Cola Company's products include beverage concentrates and syrups, with the main product being finished beverages. The business has over 300 brands of beverages around the world with the main ones being Coke, Fanta, Lift, Sprite, Frutopia 100% Fruit Juice, and PowerAde. The Coca-Cola Company packages its beverages into plastic bottles of sizes 2 litres, 1.25 litres, 600mL and 300mL. These are also available in aluminium cans of 375mL. Coca-Cola is the most well known trademark, recognised by 94 per cent of the world's population. The business is very successful and holds a very good reputation.

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Marketing Report

Price The prices of Coca-Cola's products vary according to the brand and the size. The prices of the main products are shown below. Product Size Prices: Coke, Fanta, Lift, Sprite Coke, Fanta, Lift, Sprite Coke, Fanta, Lift, Sprite Coke, Fanta, Lift, Sprite Coca-Cola soft drinks Coca-Cola soft drinksPowerAde2L bottle1.25L bottle600mL bottle300mL bottle375 x 30 cans375 x 18 cans --$2.57$1.35$2.10 - $2.30$1.30$17.87$12.98$2.80 The Coca-Cola Company's products are sold in retail stores, convenient stores, petrol stations etc. The pricing methods/strategies are set by those the company sells to. Petrol stations and convenient stores usually sell Coca-Cola products at a fixed price. However, retail outlet uses pricing methods and pricing strategies when selling Coca-Cola products. Competition-based pricing: Coca-Cola products are usually priced below, above or equal to its competitors' prices. Discount price: Coca-Cola products are often marked down during sale periods and special occasions. This will Generate sales Increase profits

Promotion The business uses a range of promotional activities Advertising: The Coca-Cola Company uses advertising as its main source of increasing consumer awareness. It mainly uses the television. There are many television advertisements on Coca-Cola products. This source allows the company's products to reach a large audience. One of the television advertisement for Coca-Cola soft drinks was the 'You know you want it' advertisement. One of the older one are ' If you drink it, you get better of life' The company also uses the radio as another source of advertisement. This is a cheaper source of approach compared to the television. Recently, the company benefited from its involvement in the world's celebrated games such as the Olympics and the FIFA World Cup. Where millions were watching these games, the business had substantial advertising and promotions of the company's brands Personal selling: Every year, The Coca-Cola Company has a highly trained sales team, which acts as a representative of the company to the retailers. This strategy helps to maintain service and product loyalty. It has been demonstrated by the business to be highly effective. Publicity: In February 2003, Vanilla Coke was released to the media as a news brief outlining the huge profit achieved by the business (from the Sydney Morning Herald 14th February 2003). This helped The Coca-Cola Company to strengthen the image of the business's products.

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Marketing Report

Placement The Coca-Cola Company sells its products to bottling and canning operations, distributors, fountain wholesalers and some fountain retailers. They distribute them to retail outlets, milk bar and corner stores, restaurants, petrol stations and newsagents. Indirect distribution: The Coca-Cola Company uses intermediaries in its distribution. That is, the company does not sell its products directly to its consumers. Intensive distribution: The Coca-Cola Company uses the intensive distribution strategy. The business's products are sold in almost every outlet including:  Retail outlets  Small shops  Restaurants  Petrol stations  Newsagents  Schools  Sports  Entertainment venues

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Marketing Report

COCA-COLA FINANCIAL ANALYSIS Coca-Cola Financial Information Company Type

Public

Fiscal Year-End

December

Annual Report

Company Web Site

Investor Relations

Company Web Site

Coca-Cola Competitive Intelligence Dr Pepper Snapple Group

Nestlé

PepsiCo

Annual Sales ($ mil.)

5,700.0

80,715.9

39,474.0

Employees

20,000

265,000

185,000

--

--

85,635.0

Market Cap ($ mil.)

Coca-Cola Income Statement 2007

2006

2005

Revenue ($ mil.)

28,857.0

24,088.0

23,104.0

Gross Profit ($ mil.)

18,451.0

15,924.0

14,909.0

Operating Income ($ mil.)

7,252.0

6,308.0

6,085.0

Total Net Income ($ mil.)

5,981.0

5,080.0

4,872.0

2.57

2.16

2.04

Diluted EPS (Net Income)

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Marketing Report

Coca-Cola Quarterly Statements Quarter Ending JunQuarter Ending Mar Quarter Ending Dec 08 08 07 Revenue ($ mil.)

9,046.0

7,379.0

7,331.0

Gross Profit ($ mil.)

5,884.0

4,755.0

4,690.0

Operating Income ($ mil.)

2,679.0

1,874.0

1,526.0

Total Net Income ($ mil.)

1,422.0

1,500.0

1,214.0

0.60

0.64

0.52

Diluted EPS (Net Income)

Coca-Cola Financial Ratios

Price/Sales Ratio Price/Earnings Ratio Price/Book Ratio Price/Cash Flow Ratio

Company

Industry Median

Market Median1

3.42

0.70

1.13

18.58

15.32

11.98

4.63

1.40

1.09

15.18

9.78

7.08

1

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