CHAPTER 1

INTRODUCTION

The Coca-Cola Company re-entered India through its wholly owned subsidiary, Coca-Cola India Private Limited and re-launched Coca-Cola in 1993 after the opening up of the Indian economy to foreign investments in 1991. Since then its operations have grown rapidly through a model that supports bottling operations, both company owned as well as locally owned and includes over 7,000 Indian distributors and more than 2.2 million retailers. Today, our brands are the leading brands in most beverage segments. The Coca-Cola Company's brands in India include Coca-Cola, Fanta Orange, Limca, Sprite, Thums Up, Burn, Kinley, Maaza, Minute Maid Pulpy Orange, Minute Maid Nimbu Fresh and the Georgia Gold range of teas and coffees and Vitingo (a beverage fortified with micro-nutrients).

In India, the Coca-Cola system comprises of a wholly owned subsidiary of The Coca-Cola Company namely Coca-Cola India Pvt Ltd which manufactures and sells concentrate and beverage bases and powdered beverage mixes, a Company-owned bottling entity, namely, Hindustan Coca-Cola Beverages Pvt Ltd; thirteen licensed bottling partners of The Coca-Cola Company, who are authorized to prepare, package, sell and distribute beverages under certain specified trademarks of The Coca-Cola Company; and an extensive distribution system comprising of our customers, distributors and retailers. Coca-Cola India Private Limited sells concentrate and beverage bases to authorized bottlers who are authorized to use these to produce our portfolio of beverages.These authorized bottlers independently develop local markets and distribute beverages to grocers, small retailers, supermarkets, restaurants and numerous other businesses. In turn, these customers make our beverages available to consumers across India.

The Coca-Cola system in India has already invested USD 2 Billion till 2011, since its re-entry into India. The company will be investing another USD 5 Billion till the year 2020. The Coca-Cola system in India directly employs over 25,000 people including those on contract. The system has created indirect employment for more than 1,50,000 people in related industries through its vast procurement, supply and distribution system. We strive to ensure that our work environment is safe and inclusive and that there are plentiful opportunities for our people in India and across the world.The beverage industry is a major driver of economic growth. A National Council of Applied Economic Research (NCAER) study on the carbonated soft-drink industry indicates that this industry has an output multiplier effect of 2.1. This means that if one unit of output of beverage is increased, the direct and indirect effect on the economy will be twice of that. In terms of employment, the NCAER study notes that "an extra production of 1000 cases generates an extra employment of 410 man days."

As a Company, our products are an integral part of the micro economy particularly in small towns and villages, contributing to creation of jobs and growth in GDP. Coca-Cola in India is amongst the largest domestic buyers of certain agricultural products.

As an industry which has strong backward and forward linkages, our operations catalysis growth in demand for products like glass, plastic, refrigeration, transportation, and Industrial and agricultural products. Our operations also lead to incremental growth for enterprises engaged in post-production activities like merchandising, marketing and sales. In addition, we share best practices and technological advancements with our suppliers, vendors and allied industries which often lead to improvement in the overall standards of quality across industries.

The Coca-Cola Company has always placed high value on good citizenship. Our basic proposition entails that our Company's business should refresh the market; enrich the workplace; protect and preserve the environment; and strengthen the community. We leverage our unique strengths to actively support and respond to local needs -- be it the need for education, health, water or nutrition. We have used our distribution network for disaster relief, our marketing prowess to raise awareness on issues such as PET recycling, and our presence in communities to improve access to education and potable water. The Coca-Cola India Foundation is now taking forward in the community at large, projects and programs of social relevance to carry forward the message of inclusive growth and development.

SWOTAnalysis

Definition

SWOT is an acronym that stands for Strengths, Weaknesses, Opportunities and Threats. As a company plans its next move, it should consider all of these things before proceeding. The plan's strengths and weaknesses are factors within the company's control. The company can then work to make the most of its strengths and eliminate the weaknesses. Opportunities and threats, on the other hand, are external factors within the community that could affect the project's success. The company does not have much control over these situations.

Benefits

Performing a SWOT analysis of a particular idea means that you are thoroughly thinking through every aspect of the project before getting started. This allows you to estimate the project's success before investing a lot of time and capital. It can also give you confidence that you are on the right track.Considerations

SWOT works best when you incorporate a variety of viewpoints. Train everyone who will be involved in the project on the SWOT ideas and brainstorm together to come up with the projects strengths, weaknesses, opportunities and threats. For example, a programmer may be able to state whether the current programming team has the skills necessary to complete the job--a strength or a weakness--and a sales representative may have more knowledge about what the competition is doing--an opportunity or weakness.Warning

For the SWOT technique to work within your company, everyone needs to be honest, particularly about the company's weaknesses. It may be tempting to say that your department can handle the work, but if the reality is that you simply don't have the manpower to take it on, the project is doomed to failure. Dishonesty can cause a false sense of security from the SWOT.Implementation

If you want to employ the SWOT analysis method in your company, it's essential that all employees understand the significance and process involved. One way to do this is to hire a company to give a presentation on the techniques. From this respect, you can be sure that everyone is on the same page.

OBJECTIVE

The main objective of this project report is to make an analytical study of :

Coca Cola Company Profile SWOT Analysis

RESEARCH METHODOLOGY

Data collection has been done from both sources primary as well as secondary and also by questionnaire. It refers to information that has previously been gathered by someone other than theresearcher or for the same purpose at hand. It is collected from Magazines, Internet andbooks.

CHAPTER II

NameThe Coca Cola Company

Logo

Industries servedBeverages

Geographic areas servedWorldwide

HeadquartersU.S.

Current CEOMuhtar Kent

Revenue$ 48.01 billion (2012)

Profit$ 9.01 billion (2012)

Employees146,200 (2012)

Main CompetitorsPepsiCo Inc., Dr Pepper Snapple Group, Inc., Unilever, Groupe Danone, Kraft Foods Inc., Nestl S.A. and many others.

The Coca-Cola Company, incorporated on September 5, 1919, is a beverage company. The Company owns or licenses and markets more than 500 nonalcoholic beverage brands, primarily sparkling beverages but also a variety of still beverages, such as waters, enhanced waters, juices and juice drinks, ready-to-drink teas and coffees, and energy and sports drinks. It owns and markets a range of nonalcoholic sparkling beverage brands, which includes Coca-Cola, Diet Coke, Fanta and Sprite. The Companys segments include Eurasia and Africa, Europe, Latin America, North America, Pacific, Bottling Investments and Corporate. On December 30, 2011, the Company acquired Great Plains Coca-Cola Bottling Company (Great Plains) in the United States. During the year ended December 31, 2011, the Company acquired the remaining interest in Great Plains and Honest Tea, Inc. (Honest Tea). In December 2011, the Company acquired an additional minority interest in Coca-Cola Central Japan Company (Central Japan). In September 2012, it acquired approximately 50% equity in Aujan Industries beverage business. In January 2013, Sacramento Coca-Cola Bottling Company announced that it had been acquired by the Company. Effective February 22, 2013, Coca-Cola Co acquired interest in Fresh Trading Ltd. In November 2013, Coca-Cola Company and ZICO Beverages LLC announced that Coca-Cola has acquired the ownership interest in ZICO.The Company markets, manufactures and sells beverage concentrates, sometimes referred to as beverage bases, and syrups, including fountain syrups, and finished sparkling and still beverages. Outside the United States, it also sells concentrates for fountain beverages to its bottling partners. The Company sells sparkling beverages and a variety of still beverages, such as juices and juice drinks, energy and sports drinks, ready-to-drink teas and coffees, and certain water products, to retailers or to distributors, wholesalers and bottling partners who distribute them to retailers. In addition, in the United States, it manufactures fountain syrups and sells them to fountain retailers, such as restaurants and convenience stores who use the fountain syrups to produce beverages for immediate consumption, or to authorized fountain wholesalers or bottling partners who resell the fountain syrups to fountain retailers.The Company manufactures, markets and sells Leao / Matte Leao teas in Brazil through a joint venture with its bottling partners. During 2011, the Company introduced a variety of brands, brand extensions and beverage products: the Latin America group launched Frugos Sabores Caseros; in the Pacific group, Fanta, a fruit-flavored sparkling beverage, was relaunched in Singapore and Malaysia; Real Leaf, a green tea-based beverage, launched two varieties in Vietnam; and in South Korea it introduced three flavor variants of the Georgia Emerald Mountain Blend ready-to-drink coffee beverage and Burn Intense, an energy drink; the Europe group launched Powerade ION4 in Denmark, Norway, Sweden and France, France launched Powerade Zero; in the Eurasia and Africa group, Turkey launched Cappy Pulpy, and India launched Fanta Powder, an orange-flavored powder formulation; Schweppes Novida, a sparkling malt drink, was launched in Kenya and Uganda; and in Uganda Coca-Cola Zero was launched; in Egypt, it launched Cappy Fruitbite; and Schweppes Gold, a sparkling flavored malt drink, and in Ghana, it launched Schweppes Malt, a dark malt drink. During 2011, the Company sold approximately 26.7 billion unit cases of its products.The Companys core sparkling beverages include Coca-Cola, Sprite, Fanta, Diet Coke / Coca-Cola Light, Coca-Cola Zero, Schweppes, Thums Up, Fresca, Inca Kola, Lift and Barq's. Its energy drinks include Burn, Nos and Real Gold. Its juices and juice drinks include Minute Maid, Minute Maid Pulpy, Del Valle, Simply, Hi-C, Dobriy and Cappy. The Companys other still beverages include glaceau vitaminwater and Fuze. The Companys coffees and teas include Nestea teas, Georgia coffees, Leao / Matte Leao teas, Sokenbicha teas, Dogadan teas and Ayataka teas. Its sports drinks include Powerade and Aquarius. The Companys waters include Ciel, Dasani, Ice Dew, Bonaqua / Bonaqa and Kinley.The Company competes with PepsiCo, Inc., Nestle, Dr Pepper Snapple Group, Inc., Groupe Danone, Kraft Foods Inc. and Unilever.

HISTORY

19th century historical originsColonelJohn Pembertonwas wounded in the Civil War, became addicted tomorphine, and began a quest to find a substitute for the dangerous opiate.The prototypeCoca-Cola recipewas formulated at Pemberton's Eagle Drug and Chemical House,a drugstore in Columbus,Georgia, originally as acoca wine.He may have been inspired by the formidable success ofVin Mariani, a European coca wine.In 1885, Pemberton registered hisFrench Wine Cocanerve tonic.In 1886, when Atlanta andFulton Countypassedprohibition legislation, Pemberton responded by developing Coca-Cola, essentially a nonalcoholic version ofFrench Wine Coca. The first sales were at Jacob's Pharmacy in Atlanta, Georgia, on May 8, 1886.It was initially sold as a patent medicine for fivecentsa glass atsoda fountains, which were popular in the United States at the time due to the belief thatcarbonated waterwas good for the health. Pemberton claimed Coca-Cola cured many diseases, includingmorphineaddiction,dyspepsia,neurasthenia, headache, andimpotence. Pemberton ran the first advertisement for the beverage on May 29 of the same year in theAtlanta Journal.By 1888, three versions of Coca-Cola sold by three separate businesses were on the market. A copartnership had been formed on January 14, 1888 between Pemberton and four Atlanta businessmen: J.C. Mayfield, A.O. Murphey; C.O. Mullahy and E.H. Bloodworth. Not codified by any signed document, a verbal statement given by Asa Candler years later asserted under testimony that he had acquired a stake in Pemberton's company as early as 1887.John Pemberton declared that thename"Coca-Cola" belonged to his son, Charley, but the other two manufacturers could continue to use theformula.Charley Pemberton's record of control over the "Coca-Cola" name was the underlying factor that allowed for him to participate as a major shareholder in the March 1888 Coca-Cola Company incorporation filing made in his father's place. Charley's exclusive control over the "Coca Cola" name became a continual thorn in Asa Candler's side. Candler's oldest son, Charles Howard Candler, authored a book in 1950 published byEmory University. In this definitive biography about his father, Candler specifically states: "..., on April 14, 1888, the young druggist [Asa Griggs Candler] purchased a one-third interest in the formula of an almost completely unknown proprietary elixir known as Coca-Cola.

The deal was actually between John Pemberton's son Charley and Walker, Candler & Co. with John Pemberton acting as cosigner for his son. For $50 down and $500 in 30 days, Walker, Candler & Co. obtained all of the one-third interest in the Coca-Cola Company that Charley held, all while Charley still held on to the name. After the April 14 deal, on April 17, 1888, one-half of the Walker/Dozier interest shares were acquired by Candler for an additional $750.

The Coca-Cola CompanyIn 1892, Candler set out to incorporate a second company; "The Coca-Cola Company" (the current corporation). When Candler had the earliest records of the "Coca-Cola Company" burned in 1910, the action was claimed to have been made during a move to new corporation offices around this time.After Candler had gained a better foothold on Coca-Cola in April 1888, he nevertheless was forced to sell the beverage he produced with the recipe he had under the names "Yum Yum" and "Koke". This was while Charley Pemberton was selling the elixir, although a cruder mixture, under the name "Coca-Cola", all with his father's blessing. After both names failed to catch on for Candler, by the summer of 1888, the Atlanta pharmacist was quite anxious to establish a firmer legal claim to Coca-Cola, and hoped he could force his two competitors, Walker and Dozier, completely out of the business, as well.When Dr. John Stith Pemberton suddenly died on August 16, 1888, Asa G. Candler now sought to move swiftly forward to attain his vision of taking full control of the whole Coca-Cola operation.Charley Pemberton, an alcoholic, was the one obstacle who unnerved Asa Candler more than anyone else. Candler is said to have quickly maneuvered to purchase the exclusive rights to the name "Coca-Cola" from Pemberton's son Charley right after Dr. Pemberton's death. One of several stories was that Candler bought the title to the name from Charley's mother for $300; approaching her at Dr. Pemberton's funeral. Eventually, Charley Pemberton was found on June 23, 1894, unconscious, with a stick of opium by his side. Ten days later, Charley died at Atlanta's Grady Hospital at the age of 40.In Charles Howard Candler's 1950 book about his father, he stated: "On August 30th [1888], he [Asa Candler] became sole proprietor of Coca-Cola, a fact which was stated on letterheads, invoice blanks and advertising copy."With this action on August 30, 1888, Candler's sole control became technically all true. Candler had negotiated with Margaret Dozier and her brother Woolfolk Walker a full payment amounting to $1,000, which all agreed Candler could pay off with a series of notes over a specified time span. By May 1, 1889, Candler was now claiming full ownership of the Coca-Cola beverage, with a total investment outlay by Candler for the drink enterprise over the years amounting to $2,300.In 1914, Margaret Dozier, as co-owner of the original Coca-Cola Company in 1888, came forward to claim that her signature on the 1888 Coca-Cola Company bill of sale had been forged. Subsequent analysis of certain similar transfer documents had also indicated John Pemberton's signature was most likely a forgery, as well, which some accounts claim was precipitated by his son Charley.

Origins of bottlingThe first bottling of Coca-Cola occurred inVicksburg, Mississippi, at the Biedenharn Candy Company in 1891. The proprietor of the bottling works was Joseph A. Biedenharn. The original bottles were Biedenharn bottles, very different from the much later hobble-skirt design of 1915 now so familiar.It was then a few years later that two entrepreneurs fromChattanooga, Tennessee, namely; Benjamin F. Thomas and Joseph B. Whitehead, proposed the idea of bottling and were so persuasive that Candler signed a contract giving them control of the procedure for only one dollar. Candler never collected his dollar, but in 1899, Chattanooga became the site of the first Coca-Cola bottling company. Candler remained very content just selling his company's syrup. The loosely termed contract proved to be problematic for The Coca-Cola Company for decades to come. Legal matters were not helped by the decision of the bottlers to subcontract to other companies, effectively becoming parent bottlers.

20th centuryThe first outdoor wall advertisement that promoted the Coca-Cola drink was painted in 1894 inCartersville, Georgia. Cola syrup was sold as an over-the-counterdietary supplementfor upset stomach.By the time of its 50th anniversary, the soft drink had reached the status of a national icon in the USA. In 1935, it was certifiedkosherby Atlanta RabbiTobias Geffen, after the company made minor changes in the sourcing of some ingredients.The longest running commercial Coca-Cola soda fountain anywhere was Atlanta's Fleeman's Pharmacy, which first opened its doors in 1914. Jack Fleeman took over the pharmacy from his father and ran it until 1995; closing it after 81 years.On July 12, 1944, the one-billionth gallon of Coca-Cola syrup was manufactured by The Coca-Cola Company. Cans of Coke first appeared in 1955.

New CokeOn April 23, 1985, Coca-Cola, amid much publicity, attempted to change theformulaof the drink with "New Coke". Follow-up taste tests revealed most consumers preferred the taste of New Coke to both Coke andPepsibut Coca-Cola management was unprepared for the public'snostalgiafor the old drink, leading to abacklash. The company gave in to protests and returned to a variation of the old formula using high fructose corn syrup instead of cane sugar as the main sweetener, under the name Coca-Cola Classic, on July 10, 1985.

21st centuryOn July 5, 2005, it was revealed that Coca-Cola would resume operations in Iraq for the first time since theArab Leagueboycotted the company in 1968.In April 2007, in Canada, the name "Coca-Cola Classic" was changed back to "Coca-Cola". The word "Classic" was removed because "New Coke" was no longer in production, eliminating the need to differentiate between the two.The formula remained unchanged. In January 2009, Coca-Cola stopped printing the word "Classic" on the labels of 16-US-fluid-ounce (470ml) bottles sold in parts of the southeastern United States. The change is part of a larger strategy to rejuvenate the product's image. The word "Classic" was removed from all Coca-Cola products by 2011.In November 2009, due to a dispute over wholesale prices of Coca-Cola products,Costcostopped restocking its shelves with Coke and Diet Coke. However, some Costco locations (such as the ones inTucson, Arizona), sell imported Coca-Cola from Mexico. Coca-Cola introduced the 7.5-ounce mini-can in 2009, and on September 22, 2011, the company announced price reductions, asking retailers to sell eight-packs for $2.99. That same day, Coca-Cola announced the 12.5-ounce bottle, to sell for 89 cents. A 16-ounce bottle has sold well at 99 cents since being re-introduced, but the price was going up to $1.19.In 2012, Coca-Cola resumed business inMyanmarafter 60 years of absence due to U.S.-imposed investment sanctions against the country. Coca-Cola's bottling plant will be located inYangonand is part of the company's five-year plan and $200 million investment inMyanmar. Coca-Cola with its partners is to invest USD 5 billion in its operations in India by 2020. In 2013, it was announced thatCoca-Cola Lifewould be introduced inArgentinathat would containsteviaandsugar.In August 2014 the company announced it was forming a long-term partnership withMonster Beverage, with the two forging a strategic marketing and distribution alliance, and product line swap. As part of the deal Coca-Cola was to acquire a 16.7% stake in Monster for $2.15 billion, with an option to increase it to 25%.

MissionOur Roadmap starts with our mission, which is enduring. It declares our purpose as a company and serves as the standard against which we weigh our actions and decisions. To refresh the world... To inspire moments of optimism and happiness... To create value and make a difference.VisionOur vision serves as the framework for our Roadmap and guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable, quality growth. People:Be a great place to work where people are inspired to be the best they can be. Portfolio:Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs. Partners:Nurture a winning network of customers and suppliers, together we create mutual, enduring value. Planet:Be a responsible citizen that makes a difference by helping build and support sustainable communities. Profit:Maximize long-term return to shareowners while being mindful of our overall responsibilities. Productivity:Be a highly effective, lean and fast-moving organization.

CHAPTER III

SWOT ANALYSIS

ASWOT analysis(alternativelySWOT matrix) is a structuredplanningmethod used to evaluate thestrengths, weaknesses, opportunities and threatsinvolved in aprojector in abusinessventure. A SWOT analysis can be carried out for a product, place, industry or person. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective. Some authors credit SWOT toAlbert Humphrey, who led a convention at the Stanford Research Institute (nowSRI International) in the 1960s and 1970s using data fromFortune 500companies.However, Humphrey himself does not claim the creation of SWOT, and the origins remain obscure. The degree to which the internal environment of the firm matches with the external environment is expressed by the concept ofstrategic fit. Strengths: characteristics of the business or project that give it an advantage over others. Weaknesses: characteristics that place the business or project at a disadvantage relative to others Opportunities: elements that the project could exploit to its advantage Threats: elements in the environment that could cause trouble for the business or projectIdentification of SWOTs is important because they can inform later steps in planning to achieve the objective.First, the decision makers should consider whether the objective is attainable, given the SWOTs. If the objective isnotattainable a different objective must be selected and the process repeated.Users of SWOT analysis need to ask and answer questions that generate meaningful information for each category (strengths, weaknesses, opportunities, and threats) to make the analysis useful and find their competitive advantage.

Coca-Cola SWOT Analysis

A SWOT analysis as discussed by Kotler (2011) is usually applied when one wants to examine both the internal and external environment within which an organization operates in. Conducting a SWOT analysis involves investigating the strengths, weakness, opportunities and threats of an organization. In reference to Coca Cola, conducting a SWOT analysis will help find out the companys strengths that can be used to help Coca Cola to be positioned as market leader in the soft drinks market while at the same time been well prepared to respond to any threats in the market. In addition, weaknesses established can be addressed where as any opportunities identified can be maximized on.

SWOT Analysis of Coca Cola

Strengths : Very strong brand that is well recognized throughout the world Large distribution channel Strong global footprint in emerging markets Popular brand Willingness to produce brand

Weaknesses : Negative publicity Declining cash from operating activities Low success levels in North American markets Negative publicity

Opportunities : Demographic changes in the West Growing market for bottled water

Threats : Increasing competition Dependence on bottling partners Declining growth of carbonated drinks

Strengths

Coca Cola is the market leader in the soft drink markets and has a market share of about 53% of the market which is enhanced by the companys various brands (Forbes, 2011). Operations of the company are supported by well established distribution system that makes sure that the products are available in all countries that the company has operations in. The company is the only manufacturer of the secrete concentrates, carbonated water and recipes, which are sold to retailers and other distributors (bottling partners). These authorized bottling partners these concentrates and recipes to produce finished beverage products. In North America, the company owns 65 beverage production plants, 10 major beverage concentrate and syrup manufacturing facilities, four bottled water facilities and 10 principle beverage concentrates for food service. The company has strong control over its bottling partners in terms of prices they pay for the concentrate, distribution and marketing of Coca Cola products, and obligation to up grade plants regularly. In contrast to other concentrate producers, the company owns the right to distribute directly to retailers and restaurants that merchandise from fountain pumps. The company has also invested significantly on data-warehousing and decision-support system . The company has a strong global footprint highlighting emerging markets. Coca Cola has a strong presence in established markets of North America and Europe and is also expanding into emerging markets of Asia and Africa which present huge market potential as compared to developed regions. Global presence in several geographic regions ensures diversified stream of revenue and reduces business risk . Coca Cola has a popular brand and this has enabled it to secure more shelf space in grocery stores as compared to other competitors. The company has exclusive deals with the worlds largest food outlets, McDonalds and Burger King. Other key distribution channels include convenience stores, vendor machines, and fountain outlets (Kerin and Peterson, 2007). The company also has a broad product range featuring more than 2,400 products and 400 brand names. In addition, the company is able to produce specific brands for specific markets which make it meet its customers needs . Brand Equity Interbrand in 2011 awarded Coca cola with the highest brand equity award. Coca cola with its vast global presence and unique brand identity is definitely one of the costliest brands with the highest brand equity.Company valuation One of the most valuable companies in the world, Coca cola is valued around 79.2 billion dollars. This valuation includes the brand value, the numerous factories and assets spread out across the world and the complete operations cost and profit of Coca cola.Vast global presence Coca cola is present in 200 countries across the world. Chances are, any country that you go to, you will find coca cola present in that market. This vast global presence of coca cola has also contributed to the building of the mammoth brand name.Largest market share There are only 2 Big competitors in the beverage segment Pepsi and Coca cola. Out of these 2, coca cola is the clear winner and hence has the largest market share. Amongst all beverages, Coke, Thums up, Sprite, Diet coke, Fanta, Limca and Maaza are the growth drivers for Coca Cola.Fantastic marketing strategies Coca cola unlike Pepsi always tries to win peoples heart. Where Pepsis target is continuously changing, and is targeted towards youngsters, Coca cola targets people of all ages. The targeting is also done by celebrities who are well liked for example Amitabh Bacchan, Sachin tendulkar, Aishwarya Rai, Aamir Khan etcCustomer Loyalty With such strong products, it is natural that Coca cola has a lot of customer loyalty. The products mentioned above like Coca cola and Fanta have a huge fan following. People will prefer these soft drinks over others. Because of the good taste of Coca cola, finding substitutes becomes difficult for the customer.Distribution network Coca cola has the largest distribution network because of the demand in the market for its products. On the other hand, due to this successful distribution network, Coca cola has been able to command such a high market presence.

Weaknesses

Increased competition from other soft drinks and food producers has made the companys strong brand to dwindle. The change in consumer taste in the mid 1990s from sugar-based soft drinks to energy drinks, bottled waters, juice based sodas, and healthier alternatives has greatly affected the demand for the companys popular brands .. Most of the brands produced by Coca Cola are not good for health. There is growing concern over sugar content in the companys soft drinks which scientists have argued that contribute to poor diet and growing problem of obesity especially among children. In addition, the target market for Coca Cola is mainly younger people. It overlooks the elderly even though it presents potential for future for this market segment that can profitable to the company.Competition with Pepsi Pepsi is a thorn in the flesh for Coca cola. Coca cola would have been the clear market leader had it not been for Pepsi. The competition in these two brands is immense and we dont think Pepsi will give up so easily.Product Diversification is low Where Pepsi has made a smart move and diversified into the snacks segment with products like Lays and Kurkure, Coca cola is missing from that segment. The segment is also a good revenue driver for Pepsi and had Coca cola been present in this segment, these products would have been an additional revenue driver for the company.Absence in health beverages If you watch the news, you would know that obesity is a major problem affecting people nowadays. The business environment is changing and people are taking measures to ensure that they are not obese. Carbonated beverages are one of the major reasons for fat intake and Coca cola is the largest manufacturer of Carbonated beverages. The inference is that the consumption of beverages in developed countries might go down as people will prefer a healthy alternative.Water management Coca cola has faced flak in the past due to its water management issues. Several groups have raised lawsuits in the name of Coca cola because of their vast consumption of water even in water scarce regions. At the same time, people have also blamed Coca cola for mixing pesticides in the water to clear contaminants. Thus water management needs to be better for Coca cola.

Opportunities

The change in demographics in the West connotes more opportunities for the company to produce more products that appeal the ageing and increasingly health conscious market. Bottled water is one of the fastest growing market segments in the worlds beverages and food market due to increasing health concerns among consumers. The market for bottled water generated revenues of more than $15.6 billion in the US in 2006. The market consumption volume is expected to increase significantly in the next few years. The companys Dasani brand is among the best-selling bottled waters in the market. Coca Cola should leverage its strong position in the bottled water segment in order to take advantage of growing demand for flavored water . There is growing in the market for ready to drink non-alcoholic drinks. The non-alcoholic market is expected to continue growing retail sales for the next years to come. This market will add more than 50,000 million unit cases and expand retail sales by more than $ 5000 billion. This projected growth is being fueled by increase in income of middle-class consumers who will increase their purchasing power. The company should benefit from expanding its product portfolio to meet the demands of the non-alcoholic ready to drink market (Coca Cola, 2012). Since 1897, the company has been expanding its operation to the international market through alliances and acquisitions. The company now has 28 plants in China and many more plants in other parts of the world . In 1991, Coca Cola and Nestle formed a joint market Nestls Nestea and Nescafe by leveraging the companys distribution network. Another joint venture was between Coca Cola and BPW (Beverage Partners Worldwide) focusing on coffee and tea brand drinks, including Coca Colas Chinese tea brands, Yang Guange and Tian Yu Di. Similar brands have also been introduced in Europe as part of a joint venture with Nestle. Stronger international operations increase the capacity of the company to penetrate the international markets and also give it an opportunity to diversify its revenues. Diversification Diversification in the health and food business will improve the offerings of Coca cola to their customers. This will also ensure that they get better revenue from existing customers by cross selling their products. The supply chain which is distributing their beverages can also distribute these snacks thereby sharing the load of Supply chain costs.Developing nations Although developed nations have a high presence of Coca cola, these countries are slowly moving towards healthy beverages. However developing countries are still being introduced to the delight of carbonated drinks and soft drinks. Countries like India which are developing and have a hot summer, find the consumption of cold drinks almost doubled during summers. Thus the higher consumption in developing business environment can be a good opportunity to capitalize for Coca cola.Packaged drinking water With hygiene becoming a major factor in the consumption of water, Packaged drinking water has found its way into peoples mind. Coca cola has a presence in the packed drinking water segment though Kinley. Although Kinleys expansion is slow as of now, Kinley has a huge potential of expansion. Thus Coca cola as a company should focus on the expansion of Kinley as a brand and take it up to Bisleri s level of trust.Supply chain improvement Supply chain can be a major cost sink hole with the transportation costs always rising. Coca colas complete business is based on transportation and distribution. There will always be possible improvements in this area. Thus Coca cola should keep strict watch on its Supply chain and keep improving to bring the cost down.Market the lesser selling products In the product portfolio of Coca cola, there are several products which have not found acceptance in the market. Coca Cola needs to concentrate on the marketing of these products as well. It is understood that Coca cola has made several expenses to launch these products. Thus, the marketing and subsequent rise of sale of these products will help revenue of Coca cola.

Threats

There is intense competition in the non-alcoholic beverages segment of the commercial beverages market. There is competition faced by the company from both regional as well as international players. In addition, the company faces stiff completion from various non-alcoholic drinks including fruit drinks, nectars and juices. The major competitor to the company in its areas of operation is PepsiCo. Other noteworthy competitors include Cadbury Schweppes, Nestle, and Kraft Foods. Competitive factors that affect the business of the company include advertising, pricing, product innovation, sales promotion, and trademark and brand development and protection. Increased competition could have significant impact on the market share and revenue growth of Coca Cola.Raw material sourcing Water is the only threat to Coca cola. The weakness of Coca cola was the suspected use of pesticides or vast consumption of water. However, the threat here is that water scarcity is on the rise. With the climate changing, and regions of various countries facing scarcity of water, sooner or later someone might raise fingers on beverage companies. Thus, Water sourcing is an axe which can fall anytime on the head of Coca cola. If water is limited or rationed, Coca cola can experience a major downfall in their revenue and capacity of distribution. The same can affect its arch rival Pepsi as well.Indirect competitors Coffee chains like Starbucks, Caf coffee day, Costa coffee are on the rise. These chains offer a healthy competition to Coca colas carbonated drinks. They might not be a big competition for Coke, but they do give a dent to its beverage market. Similarly, health drinks like Real and Tropicana as well as energy drinks like Red bull and Gatorade are stealing away the market share indirectly.