INTRODUCTION
History of formation and development
May 8, 1886: In Atlanta, USA, a pharmacist named John S Pemberton created a caramel-colored syrup and his assistant Frank M Robinson named it Coca-Coca.
Picture 1: John S Pemberton (1831-1888) – The father of Coca Cola
In 1891: Mr Asa G Candler, a pharmacist and businessman, bought the formula as well as full ownership of Coca-Cola for $2,300.
Picture 2: Asa G Candler (1851-1929) – The second father of Coca Cola
From 1892-1893: Candler and his collaborators established "Coca-Cola Company" in Georgia and registered industrial property rights for this brand
- 1897: Coca-Cola began to be introduced to a number of cities in Canada and Honolulu.
- 1906: A group of merchants including Thomas &Whitehead along with colleague J.T. Lupton established the first bottling plant in Havana, Cuba.
- 1919: Ernest Woodruff, a banker in Atlanta, acquired the "Coca-Cola Company" and thereby brought Coca-Cola to a new level.
- 1950 : Coca-Cola becomes the first commercial product to appear on the cover of Time magazine This appearance reinforced Coca-Cola's image as an international brand.
Up to this point, after more than 120 years of establishment and development, Coca-Cola is present in more than 200 countries around the world.
Vision
Coca-Cola's vision serves as a roadmap and guides every aspect of the company's business by showing them what needs to be done to continue to achieve sustainable and sustainable growth quality.
- Becoming a working environment in which employees can develop to their full potential.
- Bringing to the world beverage products that best satisfy their needs and desires.- Design Establishing supply chain collaboration that brings maximum benefits to all parties
- Maximizing long-term shareholder value while paying attention to community responsibility.
- Becoming a highly effective, growing organization sustainable development.
Mission
Coca-Cola's long-term mission represents the purpose they want to achieve and is the standard for them to consider for their actions and decisions:
- Inspire to create moments of optimism and happy.
Brand value
The Coca-Cola brand represents the most successful product in commercial history and the outstanding people who make such a great product Through more than a century of many innovations and a The new era that is opening the way is also constantly changing, Coca-Coca still maintains the symbol of reliability, inherent
6 uniqueness and great refreshment When thinking of a successful brand in the beverage industry, people will immediately think of Coca-Cola With more than a billion bottles sold every day, Coca-Cola is the best-known brand in the world.
For 12 years, Coca-Cola has always topped this ranking with its brand value continuously increasing from 65.3 billion USD (1997) to approximately 71.8 billion USD in 2011 The value of this brand is created by the consistent expression of the
"sharing happiness" element and widely known through major sponsorship activities such as the FIFA World Cup According to the annual report of the world's 100 leading brands in 2016 published by Intrenbrand, Coca-Cola ranked first in the world's most valuable beverage brand report.
The future of the Coca-Cola brand is built on the philosophy of "LivePositively", which is a commitment to creating positive changes in the world through integrating the motto of sustainable development into all areas of operations Enterprise operations and business
According to 2018 statistics, the Coca Cola brand still holds the leading position in the beverage brand value rankings and is the only "non-technology" company in the top 5 most valuable brands planet.
Products and services
To date, Coca-Cola Company has launched more than 3,500 diverse products from carbonated drinks to juices, bottled water, energy drinks, tea, coffee, milk all over the world Gender
Coca-Cola alone and its variations have more than 10 products There is no debate that Coca Cola is the most popular and recognized beverage product in the world This is also the company's best-selling product, available in almost every country except North Korea and Cuba In particular, Coca Cola accounts for 80% of the company's sales and 26% of the beverage market, asserting itself as the irreplaceable king in the Coca Cola family Here are 10 Coca Cola products and their variations:
Coca-Cola Black Cherry Vanilla
Coca-Cola light/Diet Coke
Coca-Cola's beverage brands in Vietnam include Coca-Cola, Coca-ColaLight, CokeZero, Sprite, Fanta, Minute Maid Nutriboost, Minute Maid Teppy, Schweppes, Dasani and Aquarius.
The company’s goals
With this strategy, Coca-Cola aims to collect and recycle 100% of the packaging the company sells globally by 2030; By 2025, reach 100% recyclable packaging; and by
2030, use at least 50% recycled materials in the company's product packaging.
Size and Hashtags
#cocacola #coke #pepsi #food #love #s #fanta #cola #instagram #vintage #drink #soda
#o #drinks #photography #instagood #foodporn #coca #like #a #cocacolacollector
#bhfyp #delivery #bar #cocacolalife #revitup #sprite #cocacolacollection #follow #art
INDUSTRY STRUCTURE
- Direct End-user or individual customers - Zero bargaining power, they buy the product at a fixed price which usually remains constant.
- Fast Food chain owners - They have Low to medium bargaining power as Coca Cola is one of the most demanded beverages.
- Vending Machines at malls and movie theaters- Low to medium bargaining power.
Threat of substitutions Strong Coca Cola not only has to compete with other soft drinks but other beverages that one can drink instead of Coca Cola Some of the biggest competitors of Coca Cola are Tea, Coffee, & lemonade As people are becoming more health-conscious, the threat of substitutes like freshly made Smoothies or Fresh pressed juices has increased multiple folds.
Weak Being the mammoth it is, it is much easier for Coca Cola to shift to a new supplier, but it is much more difficult for the supplier to shift to a new customer that buys in the same magnitude as Coca Cola.
Weak the beverage industry is highly saturated, and any new entrant cannot benefit from economies of scale, which the current players like Coca Cola enjoy extensively Moreover, there is a significant knowledge barrier in terms of them being able to develop a formula for a soft drink that can compete with Coca Cola, and even the technological barrier can be assessed as substantial. Rivairy Strong the first name that comes to mind is Pepsi and these 2 companies have been in competition since the late 19th century Their key products are very similar in both taste and looks, but there are some key differences as well One of the critical advantages of Pepsi over Coca Cola is that they also own several salty snacks brands such as Doritos and Lays, Coca Cola on the other hand, has stuck to beverages If tomorrow there is a sudden drop in soft drink demand, it will affect Coca Cola more significantly as compared to Pepsi.
COMPANY STRATEGY
Differentiation Strategy
Differentiation strategy is a business approach that focuses on creating unique and distinct products, services, or brand attributes that set a company apart from its competitors The concept of differentiation strategy revolves around offering something perceived as valuable and different to customers, which becomes a competitive advantage.
1.2 Examples of how Coca-Cola differentiates itself from competitors:
Product differentiation: Coca-Cola offers a wide range of beverages beyond just cola It has diversified its product portfolio to include options like Diet Coke, Coca- Cola Zero Sugar, Sprite, Fanta, Dasani water, Minute Maid juices, and more This diverse selection allows Coca-Cola to cater to different consumer preferences and expand its customer base.
Service differentiation: Coca-Cola maintains its customer service practices via online chat with a virtual agent on the official website of the company's dedicated customer service phone.
Personnel differentiation: The company pays employees good salaries and also complements the payments with rewards They also give them more than 700,000 associates within the Coca-Cola system the tools, training, and resources needed to ensure their safety.
Marketing differentiation: Coca-Cola's marketing is known for their creativity and emotional appeal They evoke happiness, unity, and a sense of togetherness Coca- Cola's advertisements often use storytelling techniques and focus on building strong emotional connections with consumers, setting it apart from competitors
Promotion differentiation: First is Coca-Cola AD Coca Cola employs celebrity endorsements and uses the super attraction of stars, which is beyond the reach of ordinary advertisements in the complex media environment Because stars unconsciously have attracted the attention of target consumers to the information demanded by advertisements They can affect consumers' emotions, attitudes, and buying behavior and increase target consumers' favorable impression of the brand exponentially In its series of advertisements, Coca-Cola uses stars with distinct personalities to explain its unique personality The image of stars perfectly integrates with the brand and brings out the best in each other so that the advertising effectively improves the brand value Coca-Cola is good at using mass media and spares no effort to build its own network transmission system Coca-Cola Chinese website, for example, Coca- Cola can speak Chinese elements in various festivals in China and integrate them into the Coca-Cola Chinese website Through the mass media and network interaction, Coca-Cola maintains the continuity and consistency of online and offline advertising to highlight the effectiveness of the media integration.
The second is the sponsorship by Coca-Cola Sponsorship is a form of public relations. Coca-Cola sponsors sports, education, culture, and other activities to strengthen its brand image, enhance its brand reputation and create a drinking atmosphere to promote the sales of its products Sponsor world and Chinese football Globally, football has been one of Coca-Cola's most important sponsorship and its most valuable market asset As a long-time partner of FIFA and the World Cup, Coca-Cola has been one of the major sponsors of every World Cup since 1974 and has an undisputed global leader in advancing the sport of football The spirit that runs through football is exactly the core value that the Coca-Cola brand has always advocated In China, Coca- Cola's support for The cause of Chinese football has enabled it to properly localize its brand's global connection with football, thus establishing a powerful emotional communication model with Chinese fans.
Finally is the Coca-Cola promotion Coca-Cola has a special sale A method of lowering prices periodically during a specified period to promote sales Special sales, generally in festivals and soft drink sales season, or fierce competition to use more. During the Spring Festival in 2002, Coca-Cola in C city carried out the promotion activity of "special sale of limited time and limited quantity" in the supermarket channel From the peak time when the supermarket has the largest customer flow, the daily activity time is limited to 2 hours Special sales are carried out for its PET1.5 L and 2.25 Coca-Cola series products (Coca-Cola, Sprite, Fanta, striking), producing a good promotion effect Coca-Cola also has incremental packaging The price of the product remains the same, but the packing capacity has increased For example, coke's previous products with 1.25-liter and 2-liter PET packaging capacities were later increased to 1.5 liters and 2.25 liters, respectively However, the price was still sold according to the standard before the increase of capacity In other words, incremental packaging is a "volume without price" method of promotion.
1.3 Evaluation of the effectiveness of Coca-Cola's differentiation strategy:
Coca-Cola's differentiation strategy has been highly effective in establishing and maintaining its market leadership in the beverage industry Here's an evaluation of its effectiveness:
Strong Brand Equity: Coca-Cola's brand equity is one of its most significant assets The company has successfully differentiated itself through its brand image, which conveys emotions of happiness, refreshment, and quality The iconic logo, memorable advertising campaigns, and consistent messaging have created a strong and recognizable brand identity globally This brand strength contributes to customer loyalty and helps Coca-Cola retain a competitive advantage.
Diverse Product Portfolio: Coca-Cola's strategy of offering a diverse range of beverage options has allowed the company to cater to various consumer preferences.
By expanding their product portfolio to include different flavors, diet options, juices, and water, Coca-Cola has increased its market share and customer base This strategy helps them reach a broader audience and adapt to changing consumer demands. Continuous Innovation: Coca-Cola's focus on product innovation and introducing new flavors demonstrates its commitment to staying relevant and appealing to consumers By regularly launching limited edition releases and tapping into consumer trends, Coca-Cola keeps its offerings fresh and exciting This continuous innovation helps differentiate the brand from competitors and maintains consumer interest and loyalty.
Effective Marketing and Advertising: Coca-Cola's marketing and advertising campaigns have consistently been successful in creating an emotional connection with consumers The company's storytelling approach and emphasis on happiness, togetherness, and unity have resonated with people worldwide Coca-Cola's effective marketing efforts have helped reinforce its brand differentiation and maintain consumer engagement.
Strong Global Presence: Coca-Cola's extensive distribution network and global presence have played a vital role in its differentiation strategy The company's ability to make its products available almost anywhere gives it a competitive edge over smaller competitors Coca-Cola's strength in reaching diverse markets and segments strengthens its differentiation and brand recognition.
Environmental Sustainability Initiatives: While not traditionally associated with differentiation, Coca-Cola's efforts towards environmental sustainability have helped set it apart from competitors By addressing consumer concerns about the environment and taking steps towards a more sustainable future, Coca-Cola has aligned itself with growing consumer preferences for socially responsible brands This differentiation strategy can attract environmentally-conscious consumers and maintain a positive brand image.
Overall, Coca-Cola's differentiation strategy has proven to be highly effective The company's strong brand equity, diverse product portfolio, continuous innovation, effective marketing, global presence, and commitment to sustainability have enabled it to differentiate itself from competitors in a crowded market These factors, combined with Coca-Cola's long-standing success and market leadership, demonstrate the effectiveness of its differentiation strategy.
Cost Leadership Strategy
2.1 Definition of cost leadership strategy:
Cost leadership is a term used when a company projects itself as the cheapest manufacturer or provider of a particular product or commodity in a competition It is difficult to deploy the strategy because the management must constantly work on reducing cost at every level to remain competitive.
2.2 Analysis of Coca-Cola's efforts to achieve cost leadership:
Through cost leadership strategy, the company tries to position its product cheaper than its competitor and for this the company tries to minimize the cost of production (Eldring, 2009).Another winning factor of Coca-Cola is that it doesn't change its price as soon as it gains popularity It static price factor, for several years, has helped the company be a cost leadership.
Supply Chain Efficiency: Coca-Cola has made efforts to optimize its supply chain and improve operational efficiency By streamlining production processes, enhancing logistics, and implementing lean principles, the company aims to minimize costs associated with manufacturing and distribution These efforts help drive efficiency, reduce waste, and improve overall cost-effectiveness.
Economies of Scale: Coca-Cola's large-scale operations and global presence provide the company with economies of scale By producing and distributing beverages on a massive scale, Coca-Cola can benefit from lower production costs and negotiate better deals with suppliers These economies of scale can contribute to cost savings and increase profitability.
Outsourcing and Partnerships: Coca-Cola engages in strategic partnerships and outsourcing to optimize costs By collaborating with bottling partners, the company can focus on core activities while tapping into the expertise and efficiency of its partners Outsourcing non-core functions allows Coca-Cola to reduce overhead costs and improve overall cost efficiency.
Manufacturing and Procurement Optimization: Coca-Cola continually evaluates its manufacturing and procurement processes to identify opportunities for cost reduction This includes optimizing production lines, sourcing raw materials efficiently, and negotiating favorable contracts with suppliers These initiatives help Coca-Cola manage costs associated with manufacturing and sourcing inputs.
Continuous Improvement: Coca-Cola emphasizes a culture of continuous improvement throughout its organization By encouraging employees to identify and implement cost-saving measures, the company fosters a cost-conscious mindset This focus on continuous improvement can lead to ongoing cost optimization and operational efficiencies.
2.3 Assessing the success of Coca-Cola's cost leadership strategy:
In summary, Coca-Cola's primary strategy revolves around brand differentiation rather than cost leadership While the company implements various cost optimization measures, its success in cost leadership is not its primary objective Factors to assess its cost optimization efforts include profitability, operating efficiency, supply chain management, comparative analysis with competitors, and long-term growth However,it's important to note that Coca-Cola's focus on brand differentiation may result in higher overall costs compared to competitors pursuing cost leadership strategies.
Focus Strategy
A focus strategy is usually employed where the comopany knows its segment and has products to competitively satisfy its needs Focus strategy is one of three generic marketing strategies See differentiation strategy and low cost strategy for the other two.
3.2 Coca-Cola's targeted market segments and focus strategy implementation:
Coca-Cola adopts a focus strategy by targeting specific market segments such as youth, sports enthusiasts, and health-conscious consumers Through customized product offerings and targeted promotions, Coca-Cola aims to fulfill the specific needs and preferences of these segments.Coca-Cola's focus on market segmentation and strategy implementation allows it to reach a vast customer base while also catering to specific needs and preferences in different markets This combination of mass marketing, niche marketing, and localization contributes to the company's ability to maintain a strong global brand presence and sustain its success in the beverage industry.
3.3 Evaluation of the benefits and limitations of Coca-Cola's focus strategy:
Benefits of Coca-Cola's Focus Strategy:
Enhanced Relevance: By targeting specific market segments, Coca-Cola can tailor its products, advertising, and marketing strategies to match the unique needs and preferences of those segments This approach allows the company to increase its relevance and strengthen its connection with consumers, leading to higher brand loyalty and customer satisfaction.
Increased Market Share: Through its focus strategy, Coca-Cola can capture a larger share of diverse market segments By offering a wide range of product variants and packaging options, the company can cater to different consumer preferences and expand its market reach This multi-segment targeting approach can contribute to increased sales and overall market share.
Improved Competitiveness: By customizing their marketing efforts, Coca-Cola can differentiate itself from competitors and build a more distinctive brand image This differentiation can lead to a competitive advantage and help Coca-Cola stand out in the crowded beverage industry By targeting specific market segments effectively, the company can solidify its position as a leader in the market.
Limitations of Coca-Cola's Focus Strategy:
Higher Costs: Implementing a focus strategy with tailored products, marketing campaigns, and localized approaches can be more costly than a standardized mass marketing approach Customizing products, packaging, and promotions for different market segments can increase production and operational expenses, leading to higher overall costs for the company.
Limited Market Reach: While targeting specific market segments can be advantageous, it can also limit the potential consumer base By focusing solely on specific segments, Coca-Cola may miss out on opportunities to attract customers from outside those segments This can restrict the company's growth potential and limit its ability to maximize its market reach.
Increased Complexity: Implementing a focus strategy requires thorough market research, segmentation analysis, and ongoing monitoring of consumer preferences.This complexity can add challenges to the company's operations, as it needs to constantly adapt its strategies to changing market dynamics and evolving consumer demands.
Analysis of Coca-Cola’s Competitive Advantage
4.1 Identification of Coca-Cola’s sources of competitive advantage:
Strong brand recognition and loyalty: Coca-Cola is one of the most recognized and valuable brands in the world, with a loyal customer base.Its marketing campaigns have successfully built a strong emotional connection with customers, contributing significantly to its brand recognition.
Wide distribution network: Coca-Cola has a vast distribution network that enables it to reach customers in almost every corner of the world.Coca-Cola boasts more than 225 independent bottling partners globally At the same time, Coca-Cola also has an on-site bottling network And with more than 500 brands sold around the world
Product innovation: Coca-Cola has a history of introducing new products and flavors to cater to changing consumer tastes and preferences example from reducing sugar content to introducing new flavors
Global presence: Coca-Cola has a significant presence in more than 200 countries around the world Different geographical conditions have allowed the company to tailor its products accordingly Coca-Cola also has a strong presence in developing countries
Strong financial position: Coca-Cola has a strong financial position, which allows it to invest in research and development and expand its operations globally.
Health concerns: The main problem with soda is its high sugar content, which contributes to health complications such as diabetes and obesity.
Unsustainable practices: uses non-biodegradable plastic to package its products. This and other unsustainable practices (such as employee exploitation in developing countries) are eroding the company's reputation)
Introducing non-beverage products: As health and nutrition awareness increases worldwide, non-beverage products such as food and pharmaceuticals could help the company further expand its product portfolio.
Emerging markets in developing countries: Developing countries possess a large untapped consumer base, which will help Coca-Cola further expand its presence in these markets.
Direct and indirect competition: Coca-Cola faces stiff competition from both direct and indirect competitors Direct competitors include soft drink manufacturers, such as PepsiCo and Dr Pepper Snapple Corporation Indirect competitors include beer and wine companies.
Legal controversies: Coca-Cola has a history of legal battles, most notably allegations of misleading marketing of sweetened beverages.
4.2 Examination of how Coca-Cola sustains its competitive advantage:
Coca-Cola sustains its competitive advantage by continuously improving and innovating its products, marketing strategies, and operations Here are some ways Coca-Cola maintains its competitive advantage:
Product innovation: Coca-Cola invests in research and development to create new and innovative products, such as low-sugar and no-sugar beverages, to cater to changing consumer preferences.
Marketing campaigns: Coca-Cola's marketing campaigns are known for their creativity and effectiveness in reaching customers and building brand awareness The
18 company continuously explores new marketing channels and techniques to engage with customers.
Distribution network: Coca-Cola has a vast distribution network that enables it to reach customers in almost every corner of the world The company continuously improves its logistics and supply chain management to ensure efficient delivery of products to customers.
Brand recognition and loyalty: Coca-Cola's strong brand recognition and customer loyalty are sustained through consistent quality, customer service, and social responsibility initiatives.
Strategic partnerships: Coca-Cola forms strategic partnerships with other companies to expand its product offerings and reach new markets For example, the company has partnered with McDonald's to offer Coca-Cola products at their restaurants globally.
Overall, Coca-Cola sustains its competitive advantage by continuously adapting to changing market conditions, investing in innovation, and maintaining strong relationships with its customers and partners.
4.3 Comparison of Coca-Cola's competitive advantage against main competitors:
Coca-Cola and PepsiCo are two of the largest beverage companies in the world, and their competitive advantages can be compared in the following ways:
Brand recognition and loyalty: Both Coca-Cola and PepsiCo have strong brand recognition and customer loyalty Coca-Cola is more focused on its core brand, whilePepsiCo has a more diversified portfolio of brands, including Pepsi, Gatorade,Tropicana, and Quaker Oats.Coca-Cola has a strong presence in international markets;for example, it has successfully captured 51% of the US market share, 61% of theMexican market share, 56% of the German market share, and 51% of the Brazilian market share Then, PepsiCo is only better positioned in the Middle East, where CocaCola has created some controversy through advertising and lost market share in this region.
Product innovation: Both companies invest in product innovation to cater to changing consumer preferences Coca-Cola has a history of introducing new products and flavors, while PepsiCo has a more diversified product portfolio.
Product mix of Coca cola Source: Norden, Koch and Pronk (2008, p.14)
Mix of net revenue of PepsiCo Source: PepsiCo (2009, p.6)
Distribution network: Both companies have a vast distribution network that enables them to reach customers in almost every corner of the world.
Marketing campaigns: Both companies are known for their effective marketing campaigns, with Coca-Cola being more focused on emotional connections with customers and PepsiCo being more focused on celebrity endorsements.
Financial position: Coca-Cola has a stronger financial position compared to PepsiCo, which allows it to invest in research and development and expand its operations globally.
Overall, both companies have strong competitive advantages, with Coca-Cola having a stronger focus on its core brand and emotional connections with customers, whilePepsiCo has a more diversified product portfolio and celebrity endorsements.
VALUE CHAIN
Inbound Logistics
Inbound logistics in the Coca-Cola value chain comprise receiving, storing, and distribution of the inputs of the products We relate it to bringing raw material from the source to the company Coca-Cola has a large supply chain Coca-Cola endeavors to gain a competitive advantage at this first step It treats the suppliers in the value chain as business partners However, the suppliers also have to adhere to some rules according to applicable laws and regulations Coca-Cola also believes in responsible environmental and workplace policies and practices.
Input materials are always an extremely important step for a company to ensure quality production.
To ensure competitive prices, CocaCola does not publicly announce the supply source of some ingredients:
CO2: creates sour taste, supports digestion and prevents the growth of microorganisms.
Food coloring (Carmel E150d): made from melted sugar or ammonia chemicals Sour agent (Phosphoric acid) – E330: 50% acid is used to create acidity and as a preservative.
Caffeine: natural caffeine comes from coffee, tea leaves, cola nuts or artificial caffeine.
Sugar: Supplied from KCP Sugar Factory.
Natural flavor: Secret formula provided from the parent CocaCola Group.Water: Supplied from the water plant in the area where the plant is located.
Coca-Cola leaves: Provided by Stepan processing company (Illinois state, USA).
Bottles: Provided by Dynaplast Packaging Company Limited (Vietnam). Packaging cartons: Provided by Bien Hoa Joint Stock Company.
Each supplier for CocaCola Vietnam is carefully selected based on many criteria:product quality, operating methods, company status, reputation with customers,
Operations
Coca-Cola is a global business However, it operates through local channels Coca- Cola has its beverage lines along with companies with bottling partners However, it does not own the partners or their products It manufactures and sells beverage bases and syrups.
Production organization is a central step in CocaCola's supply chain.
This model is applied equally all over the world, including Vietnam Accordingly, this stage is composed of 2 parts:
The CocaCola Company (TCC) is responsible for: Producing and supplying Coca Cola juice to factories nationwide, Brand promotion and management, TCC is responsible for the 3 P's (Price - Product - Promotion)
The CocaCola Bottler (TCB) plays the role of: Production of finished products, Warehouse reserve, Distributing and providing services for Coca Cola products.
According to CocaCola Jouner, in 2017, CocaCola Vietnam Company had more than 99% of its employees being Vietnamese with about 2,500 people.
Regarding production locations, the company has 3 large factories located in Hanoi,
Da Nang and Ho Chi Minh City.
CocaCola Vietnam has 100% foreign investment, so large factories in Ho Chi Minh City, Da Nang and Hanoi are currently completely owned by the parent company. Stage of transporting finished products:
The distribution process in Coca Cola's supply chain is continuously adjusted in real time through the application of technology in operations.
The company's delivery trucks are all equipped with GPS tracking devices to achieve the goal: after being produced, products will arrive at distribution points within 48 hours.
Through daily reported statistics, freight transportation activities in CocaCola's supply chain are continuously optimized, minimizing the time it takes for products to reach customers.
To limit the disadvantages when the number of vehicles is too large with many delivery requests that need to be met, CocaCola has deployed route optimization technology, dividing delivery orders into appropriate times to limit delivery windows. peak.
This not only minimizes fuel consumption costs, but also brings satisfaction to customers/partners, increasing the company's reputation.
Outbound Logistics
Coca-Cola ensures that thousands of retailers globally are consistently well stocked with a variety of Coca-Cola products They used a similar principle for industrial clients Timely delivery, secure transport, and efficient delivery are the foundation of a smooth-running Coca-Cola value chain This cultivates strong retailer relationships and continued customer loyalty.
From the beginning of its formation and development, the direct distribution channel is the channel that Coca Cola applies throughout During the first period, the business was not well known, so it used the form of selling directly to customers.
This method helps them proactively source goods, distribute and recognize customer needs and reactions From there, timely corrective and corrective measures can be taken.
Currently, this form is no longer as profitable as before because there are more effective distribution channels and easier access to users However, Coca Cola still retains the direct channel Users can easily find brand products on e-commerce platforms such as Shopee, Lazada or at vending machines.
Supermarket and agent distribution channels:
It is not difficult to see Coca Cola products in most Vietnamese supermarkets. Distribution through a system of agents and supermarkets helps the shipping process to sell more products at one time At the same time, managing and operating the supply chain is also easier because it does not have to be transported to many places.
Coca Cola is always placed in many different areas in the supermarket to increase the opportunity to interact with users To stimulate demand, the system also regularly has many incentive programs and attractive product discounts When customers come to the supermarket, they may not intend to buy Coca-Cola, but when they see promotions and discounts, they will likely have a shopping need.
Restaurant and hotel distribution channels:
This is also one of the distribution channels that Coca Cola focuses on developing. Many restaurant customers also create more product combos with Coca-Cola to increase product consumption Or when there is a need to use water, Coca Cola will definitely be in the priority position Using Coca Cola in meals helps stimulate taste buds and makes you feel more delicious.
Coca Cola expands its coverage by distributing its products to grocery and department stores nationwide From urban to rural areas, from large to small stores, there is a brand presence This is a distribution channel that brings great economic value to businesses and a stable source of consumption.
Not only in rural areas, urban people still choose to buy products at grocery stores rather than supermarkets because they are conveniently located, easy to find and do not take much time Therefore, retail stores are fertile land for trading in food and consumer goods that businesses can fully exploit.
At retail systems, Coca Cola will set up many different discount levels for sellers so they can easily display products In addition, the business also supports sellers in
24 preparing additional advertising signs, shelves, and sunshades with the Coca Cola logo printed on them This can both satisfy the distribution channel and help businesses have a free media outlet.
Sale and Marketing
Coca-Cola is a globally recognized brand Therefore, the marketing endeavors of the company must have been phenomenal The Coca-Cola logo is one of the most popular and recognized logos Coca-Cola engages digital channels, social media, print media, and outdoor marketing to influence the customers and make an identity Coca Cola value chain analysis shows that it focuses on a single marketing strategy that promotes all its brands in a unified effort.
Coca-Cola Vietnam uses many marketing communication channels to promote products and increase brand awareness including:
Television advertising: Coca-Cola Vietnam often advertises on popular television channels such as VTV, HTV, VTC, THVL, with short films, advertising clips or special promotional campaigns.
OOH advertising: Coca-Cola Vietnam often places signs and light boxes in prime, crowded locations such as on Le Duan street, East-West avenue, Ton Duc Thang, on market streets and roads walk.
Advertising on social networks: Brands also use social networks such as Facebook, Instagram, YouTube to promote products through clips, articles or online contests.
Events: organize events such as the Coke Studio music festival, the activity program "Joyful Tet Journey", the program "Have fun with Coca-Cola" at shopping centers and restaurants , hotel…
Customer service
The pre-sale and post-sale services by the Coca-Cola Company help gain customer loyalty Coca-Cola has a very efficient call center and online presence globally to cater to its clients and solve their queries.
Coca-Cola Vietnam officially launched Coca-Cola Plus product, 100% based on formula from Japan Coca-Cola Plus in Japan is FOSHU certified to limit fat absorption from meals thanks to the addition of nutritional fiber, helping users enjoy the joy of eating The launch of the Coca-Cola Plus product is in the direction of developing into a Total Beverage Company that Coca-Cola is pursuing.
Accordingly, Coca-Cola has been researching to launch more diverse product lines to meet all consumer beverage needs, especially products "born for the dinner table" , not only helps the dish retain its original flavor, but also helps users enjoy culinary pleasure.
The birth of Coca-Cola Plus certified by FOSHU in Japan, with proven effectiveness and safety, will contribute to helping consumers balance their eating preferences and protecting their health.
Interaction is not just about customers asking and you answering, but also about connection, giving users the best support Coca-Cola understands that social networks are a great means of two-way interaction between businesses and customers.
The only way to understand your customers is to listen to them Social networks all have a comment function - leaving comments, feedback and a reply function - replying to comments and commnets It is this convenient social network system that helps Coca-Cola always interact with users in a timely manner as well as listen to users' opinions and contributions.
Demonstrating this interactivity, in May 2014, on the social network Twitter, Coca- Cola was tweeted 1994 times, so an average of more than 60 tweets a day However, Coca-Cola always prioritizes feedback and up to 83% of tweets were replied to by Coca-Cola.
Maintaining interaction with customers not only helps connect businesses with users, but also gives visitors and potential customers a good impression of the brand's professionalism and customer support services
BUSINESS PROCESS
Enterprise sales planning process
Step 1: Determine sales goals - Diversify your portfolio through innovation & partnership development - Expanding the market through product diversification, promoting investment towards sustainable development goals. Step 2: Build customer portraits The brand is dividing its customers into 2 main segments based on age group The main target that Coca Cola targets is young people aged 10 - 35 years old Coca Cola's second customer segment is middle- aged people from 40 or older.
Step 3: Market survey Coca Cola uses a Freestyle water tower to be able to collect data from users according to the customer's own recipe to have data about that customer's data taste That way they can know which drinks are poured the most.
Step 4: Plan action strategies Through the company's strategies, sales increase continuously At the same time, the brand also maintains a loyal user base and creates good impressions in the hearts of potential customers.
Step 5: Contingency planning The company uses a strategy of both proactive listening and implementation to ensure consumers are at the heart of its business strategy, thereby being able to develop products responsibly. responsibility.
Step 6: Budget estimate In 2020, the advertising budget will decrease significantly but effectiveness and sales volume will still increase steadily.
Process of sourcing for a business’s products
Step 1: Determine the business's needs Help the business consider appropriate resources for goods supply activities
Step 2: Determine main resource requirements Supply Provides supply criteria, often determined by internal and external customers.
Step 3: Determine the sourcing strategy It should be implemented based on the business's goals: optimizing costs, resources or always ensuring quality goods.
Step 4: Identify Potential Supply Sources Creating a correct list of suppliers that can solve the supply problem right from the beginning will help businesses have more diverse options to find the best supplier
Step 5: Limit suppliers to the choice set
Step 6: Validate and select suppliers
Step 7: Select suppliers and reach agreement
The company’s product manufacturing process
Step 3: Mix flavoring, color, acid, flavor enhancer Saturate CO2
Risk management process in business operations
Step 1: Determine the scope of risk
Step 4: Evaluate and rank risks
Step 5: Handle and respond to risks
Step 6: Plan and monitor risks
Coca-Cola Business Model
Developing and producing beverages and syrup & Bottling
Licensing its brand and products & Investing in other businesses
Coca-Cola offers a range of beverages that prodive refreshment and enjoenjoyment
Provides a popular and recognizable brand that can drive sales and traffic to their locations
Supermarkets,convenience stores and Vending machines
Sales of beverages to consumers
Licensing fees from bottling and distribution t
Investment income from other businesses
Individual Consumers (Those who purchase the company’s products for personal use)
Retail and food service partners Those who sell Coca-Cola products to consumers Retail and food service partners
Coca-Cola's business model is one of the most successful and enduring business models in the history of the consumer goods industry Founded in 1886, the company has grown to become a global powerhouse, selling its signature drinks in more than
200 countries around the world Despite its enormous size and global reach, Coca-Cola has been able to maintain a strong and consistent business model, which has contributed to the company's success and longevity.
Coca-Cola's customer segments include:
Consumers: Coca-Cola's primary customer segment is individual consumers, who purchase the company's products for personal use This includes consumers of all ages and demographics who can purchase Coca-Cola products at supermarkets, convenience stores, restaurants and other retail locations.Retail and foodservice partners: Coca-Cola also has relationships with many retail and foodservice partners These partners sell Coca-Cola products to consumers and often have exclusive agreements with the company to sell Coca-Cola products at their locations.
Coca-Cola's value propositions include:
Consumers: For consumers, Coca-Cola offers a variety of beverages that bring refreshment and enjoyment The company's products are popular with consumers of all ages and demographics and are often associated with joyous occasions and celebrations.
Retail and Foodservice Partners: For its retail and foodservice partners, Coca- Cola provides a well-known and recognizable brand that can drive sales and traffic traffic to their location The company often has exclusive agreements with these partners, which sometimes allows them to offer Coca-Cola products that are not available elsewhere.
Coca-Cola's customer relationships include:
Promotions and customer loyalty programs
Community involvement such as local organizations and events
Coca-Cola's revenue stream includes:
Licensing fees from bottling and distribution partners Investment income from other business activities
5.6 Key resources of Coca-Cola:
Coca-Cola's main resources include:
5.7 Main activities of Coca-Cola:
Coca-Cola's main activities include:
Development and production of beverages and syrups bottled
License your brand and products
Promotions and customer loyalty programs
Distribution and logistics (usually done by their franchise)
5.8 Main partner of Coca-Cola:
Coca-Cola's main partners include:
Bottling and distribution partner Investors
Coca-Cola's cost structure includes:
Manufacturing and production Marketing and advertising Staff
Coca-Cola’s Competitor
One of Coca-Cola's biggest competitors is PepsiCo, a global food and beverage company that sells a variety of products, including the popular soda brand Pepsi.
Another major competitor of Coca-Cola is Dr Pepper
Snapple Group, the leading manufacturer of non- alcoholic beverages in North America The company sells many famous brands, including Dr Pepper,
Snapple and 7UP, and compete with Coca-Cola for market share in the United States and Canada.
In addition to other beverage companies, Coca-Cola also faces competition from food and beverage corporations such as Nestle Nestle sells a variety of products, including bottled water, coffee and other beverages, and competes with Coca-Cola for market share in many countries around the world.
Another major competitor of Coca-Cola is Red Bull, the leading manufacturer of energy drinks Red Bull has a strong presence in the global market and offers a wide range of products popular with consumers looking for an energy boost.
Another global food and beverage company that competes with Coca-Cola is Danone, a leading manufacturer of milk products and bottled water
Danone sells many popular brands, including Evian and
Activia, and competes with Coca-Cola for market share in many countries around the world
Another company competing with Coca-Cola in the global beverage market is Suntory Beverage & Food, the leading non-alcoholic beverage manufacturer in Asia
The company sells many popular brands, including
Coca-Cola also faces competition from food and beverage companies that focus on natural and organic products, such as Hain Celestial Hain Celestial sells a variety of natural and organic beverages, including teas and juices, and competes with Coca-Cola for market share in the growing health and wellness market.
IS
Coca Cola Information Systems: Introduction
According to the Market Line; a Data monitor business, the global soft drinks industry consists of functional drinks, bottled water, concentrates, juices and RTD with tea and coffee included Its market value increased by 4% to reach a value of $602.1 billion in 2011.
This is may increase by 24.6% to $749.9 billion by 2016 Of the global market value of soft drinks, the USA accounts for 41.5% and is home to the Coca-Cola Company; the leading industry player generating 36.4% of the market’s share volume
The scope of this paper is to evaluate the Company in terms of its business process,involvement of information systems in its process and ways information systems could improve its process.
The Coca-Cola Company
2.1 Coca Cola company improve its business process by information symstem:
Using a computerized database helps create a paperless environment and cut costs that could otherwise go to storage of paper documents This also helps to reduce the amount of time used to navigate through files for individual customer files thereby increasing efficiency.
The use of the internet in communication will help the management make quick decisions since meetings could be held online through teleconferencing and cut travel costs Internet also offers vast advertising opportunities reaching out to even the most remote areas thereby increasing the customer base.
2.2 Coca Cola chooses model CRM:
Coca-Cola used the CRM Model after using an old system that they found to be ineffective (Payne & Frow, 2013) The old system was ineffective due to high costs and was not user-friendly Coca Cola's business strategy is to think locally and act locally.
2.3 Describe the system CRM of Coca Cola:
Coca-Cola uses CRM to promote collaboration and resolve customer issues quickly and effectively Using CRM software, every member of the Coca-Cola team can identify problems, track customer behavior and social media to promote offers and promotions.
Furthermore, team members can use mobile apps on the go to access customer history anytime and anywhere, create and update work orders, and dispatch Real-time field technicians.
=> Coca-Cola is considered one of the biggest brands in the world To increase their customers, they adopted the strategy of using CRM and achieved great results Coca-Cola uses CRM tools like Salesforce to manage customer information, thereby creating marketing campaigns aimed at potential customers For example, creating a game on social networks to encourage customers to share information about the brand.From there, Coca-Cola can collect information about its customers, and make the right marketing decisions.
Suggestion for Coca Cola Information Systems Improvement
In 2010, Smart Water and PET Bottles were voluntarily destocked by Coca-Cola North America as these beverages failed to confine to FDA’ s standards for quality bottled water Similarly, in 2009 Coca-Cola Israel destocked Coca-Cola and Diet Coke bottles as the drinks contained traces of poisonous elements This was as a result of the failure of its co2 supplier (Data monitor).
With invention of a 3D printer, such errors that could tarnish the brand image could become obsolete since this machine has surgical precision with zero chance for error.This paper suggests that the company acquires this latest development.
Summary
The Coca-Cola Company; the world’s top-brand producer and distributor of non- alcoholic solvents and syrups for beverages is a company that employs various forms of information systems in its business process, although further incorporation of the IS may further improve its process.
Colusion
Based on the research undertaken by this paper, it surfaces that the Coca-ColaCompany is a smooth-running corporation that has effectively employed InformationSystems although some areas are still wanting A few technological improvements could give the company an unmatched comparison.
Coca-Cola's digital transformation is a strategic move to stay relevant in the ever- changing business landscape By embracing technology, Coca-Cola has been able to enhance its operations, marketing, and customer engagement In conclusion, Coca- Cola's digital transformation has been a strategic move that has enabled the company to enhance its operations, marketing, and customer engagement By leveraging technology such as e-commerce, digital marketing, big data, analytics, IoT, and AI, Coca-Cola has been able to stay ahead of the curve in terms of technology adoption and gain a competitive advantage in the beverage industry The company's focus on customer engagement, innovation, and efficiency has enabled it to stay relevant in the digital age and continue to provide a seamless shopping experience for its customers. Overall, Coca-Cola's digital transformation has been a positive move for the company, and it will likely continue to invest in technology to maintain its competitive edge and drive growth in the future.
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