1. 3 C’s and 4 P’s What accounts for its success? How is it vulnerable?
Coca-Cola
3 C’s and 4 P’s
What accounts for its success?
How is it vulnerable?
The US market is $54B

2. 3-C’s Company Produces syrup and marketing campaigns
Distributors add water, containers and make deliveries
Distributors have a local monopoly
Both Coke national and the distributors have been phenomenally successful

3. Competition
Pepsi challenge in ’s took share from a slumbering Coke
Pepsi out-positioned Coke in Supermarkets
Share of beverages Coke Pepsi
US market ($54B) 43% 30%
Global market 48% 22%
Pepsi
Coke and Pepsi have a bilateral monopoly, keeping competitors like 7-up/Dr Pepper with 14% share out.
Globally, coke has used is enormous cash flow to buy markets

4. Customers Why loyal to a brand 50% higher priced than generics
Ad shows the image in 1915

5. Customers
1942

6. Customers
Coke’s image in 1949

7. Customers
1952

8. Customers
1970

9. Customers
1990

10. Customers
2000

11. 4-P’s: Product Coke as the focal brand-logo and bottle
Cherry Coke, Vanilla Coke short term
Product line keeps out competition and expands franchise
Sprite, Desani, Minute Maid, Gatoraide
Push globally for growth
US growth -3%
Note that the current battleground is waters!

12. Price Match Pepsi’s prices Complement their sales promotions
Try to be 40% higher than generics
20% higher than store brand (President’s Choice)

13. Promotions

14. Distribution (Place) Support your bottlers (4% current ROA)
Be everywhere
Syrup
Vending
Supermarket
Restaurants
Global

15. Final Assessment of Coke
Strengths
Product management system
Focus on the core Coke franchise
Bottler monopoly
Vulnerabilities
Max out size—no room to grow
Local competition—Pepsi Blue
Shift in consumer habits—away from soft drinks
US growth rate =3% global growth for coke is twice as large. China growth last year 18%
Worldwide cokes share is 48% Pepsi 22%