Group assignmentmodule digital transformationthe coca cola company

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MINISTRY OF EDUCATION AND TRAINING

HO CHI MINH CITY UNIVERSITY OF ECONOMICS AND FINANCEFACULTY OF BUSINESS ADMINISTRATION

GROUP ASSIGNMENT

MODULE: DIGITAL TRANSFORMATION

THE COCA-COLA COMPANY

GROUP MEMBER:

1 Nguyen Thi Ngoc Han _ Student ID: 2150186302 Huynh Thi Kim Anh_ Student ID: 2150184233 Trinh Thi Ngoc Tram_ Student ID: 2150191294 Nguyen Thi Thuy Lieu_ Student ID: 2250139965 Le Hong An_ Student ID: 215018235

6 Nguyen Thi Tu Uyen_ Student ID: 215010058

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The Coca-Cola Companyy

5 Products and services: 5

6 The company’s goals: 6

7 Size and Hashtags: 6

II INDUSTRY STRUCTURE: 6

III COMPANY STRATEGY: 7

1 Differentiation Strategy: 8

1.1 Definition of differentiation strategy: 8

1.2 Examples of how Coca-Cola differentiates itself from competitors: 8

1.3 Evaluation of the effectiveness of Coca-Cola's differentiation strategy: 10

2 Cost Leadership Strategy: 12

2.1 Definition of cost leadership strategy: 12

2.2 Analysis of Coca-Cola's efforts to achieve cost leadership: 12

2.3 Assessing the success of Coca-Cola's cost leadership strategy: 13

3 Focus Strategy: 13

3.1 Explanation of focus strategy: 13

3.2 Coca-Cola's targeted market segments and focus strategy implementation: 13

3.3 Evaluation of the benefits and limitations of Coca-Cola's focus strategy: 13

4 Analysis of Coca-Cola’s Competitive Advantage: 15

4.1 Identification of Coca-Cola’s sources of competitive advantage: 15

4.2 Examination of how Coca-Cola sustains its competitive advantage: 16

4.3 Comparison of Coca-Cola's competitive advantage against main competitors: 17

IV VALUE CHAIN: 19

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1 Enterprise sales planning process: 24

2 Process of sourcing for a business’s products: 25

3 The company’s product manufacturing process: 25

4 Risk management process in business operations: 26

5 Coca-Cola Business Model: 26

5.1 Coca-Cola’s customer segments: 26

5.2 Coca-Cola’s value proposition: 27

5.3 Coca-Cola Channel: 27

5.4 Coca-Cola customer relations: 27

5.5 Coca-Cola's revenue stream: 28

5.6 Key resources of Coca-Cola: 28

5.7 Main activities of Coca-Cola: 28

5.8 Main partner of Coca-Cola: 29

5.9 Coca-Cola's cost structure: 29

6 Coca-Cola’s Competitor: 30

VI IS: 31

1 Coca Cola Information Systems: Introduction: 31

2 The Coca-Cola Company: 31

2.1 Coca Cola company improve its businessprocess by information symtem: 31

2.2 Coca Cola chooses model CRM: 32

2.3 Descbirce thi system CRM of Coca Cola: 32

3 Suggestion for Coca Cola Information Systems Improvement: 32

4 Summary: 33

5 Colusion: 33

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VII COLUSION: 33 VIII REFERENTES: 34 Bibliography 34

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I INTRODUCTION:

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.

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- 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.

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

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:

- Refresh the world.

- Inspire to create moments of optimism and happy.

- Create value and difference.

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

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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.

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 Black

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Coca-Cola C2 Coca-Cola Citra Coca-Cola light/Diet Coke Coca-Cola with Lemon Coca-Cola with Lime Coca-Cola with Raspberry Coca-Cola Zero

Coca-Cola's beverage brands in Vietnam include Coca-Cola, Coca-ColaLight, Coke Zero, Sprite, Fanta, Minute Maid Nutriboost, Minute Maid Teppy, Schweppes, Dasani and Aquarius.

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.

#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

II INDUSTRY STRUCTURE:

MY JUSTIFICATION

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Bargaining power of customers

Weak to medium

- 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.

Bargaining power of suppliers

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.

Threat of new entraints

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

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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.

III COMPANY STRATEGY:

Coca-Cola embeds its competitive strategy in three key areas: differentiation, cost leadership, and focus The company accomplishes differentiation by maintaining a strong brand image, innovative product development, and effective marketing campaigns This strategy helps Coca-Cola to stand out from its competitors and achieve higher market share.

1.1 Definition of 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:

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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.

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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 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:

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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

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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.

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.

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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.

3.1 Explanation of 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.

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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.

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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.

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.

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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

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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, while PepsiCo 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 the Mexican 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 Coca Cola has created some controversy through advertising and lost market share in this region.