According to Euromonitor, Coca cola''''s current volume-based market share is 44.3% of the $314 billionmarket, thanks to popular beverage brands held by Coca cola.. Global market share and
Trang 1I About the company and the purpose of the report.
The Coca-Cola Company, headquartered in Atlanta, Georgia, is a beverage company and manufacturer, retailer, and promoter of non-alcoholic beverages and syrups multinational of the United States.[3] The company is best known for its flagship product Coca-Cola,
+ The company operates a franchised distribution system since 1889 in which the Coca-Cola Company produces only concentrated syrup, which is then sold to various bottlers around the world
Coca-Cola's+ culture also specifically emphasizes two behaviors that help the company achieve its goal of making a difference: "Action based on a growth mindset", which requires a holistic approach for the possibilities; and “Understanding the values that Coca-Cola pursues”,
+ The company's mission is clearly demonstrated through its activities in countries and markets where Coca-Cola is present Coca-Cola
Trang 2product portfolio- Cola globally includes 4,300 products and 500 brands In Vietnam, Coca-Cola offers 8 main drinks - soft drinks (sugar or unsweetened), energy drinks, juices, fruit milk drinks, coffee, complementary drinks for activities sports, ionic supplements and tea These drinks have become the favorite beverage of many Vietnamese people in every event and activity
+ Vietnamese people's love for Coca-Cola marks the success of activities to promote brand love In 2019, marketing campaigns brought Coca-Cola 5 important victories at the MMA Smarties Awards organized by the Vietnam Mobile Marketing Association
II SWOT analysis
Strength (thếế m nh) of Coca-cola ạ
1 Coca cola is a famous brand
Coca cola is present in more than 200 countries and territories According to
Euromonitor, Coca cola's current volume-based market share is 44.3% of the $314 billion market, thanks to popular beverage brands held by Coca cola In addition, Coca cola is also dominating the market beverage in North America, Eastern Europe and the Asia-Pacific region
2 Global market share and large product portfolio
According to Euromonitor, the top 10 popular beverage brands today are Coca Cola, Pepsi, Sprite, Fanta, Diet Coke, Coca-Cola Zero Sugar, Mountain Dew, 7- Up, Mirinda and
Trang 3Diet Pepsi Five of the above 10 brands are held by Coca Cola, accounting for 40% of the market share, and 20% are held by rival Pepsi The reason Coca cola holds such a large market share is partly due to its large and diverse product portfolio Coca Cola has more than 500 brands worldwide and offers about 3900 different types of drinks
3 Extensive distribution network
Coca cola has an extensive network of independent bottling plants, distributors and retailers to distribute its beverage products Distribution network is one of Coca cola's strengths, helping the company manage its global presence In 2019, the entire Coca-Cola system sold more than 30.3 billion units of products and on average, more than 2 billion units of Coca-Cola products were consumed daily
4 World-class marketing campaigns
With various unique marketing strategies, Coca cola has become a famous brand in almost every corner of the world Coca cola's name and logo can be recognized anywhere, strong brand awareness In Vietnam, too, every spring, no one will not remember the yellow spring swallow wings, on the outstanding red background of Coca Cola This is a strong brand identity that Coca Cola has created for hundreds of years
Weakness (đi m yếếu) of Coca-Cola ể
1 Too dependent on beverage market
Despite investing in a rich beverage network with many brands, Coca-Cola's revenue still mainly comes from the beverage market non-alcoholic drink Unlike Pepsi, when the company tried to expand its products into other markets such as snacks, cereals, chips, pasta and a variety of dairy products, Coca cola remained loyal to the market his drink school In recent years, the pressure on sales and revenue from Pepsi is weighing heavily
on Coca Cola, as consumers also gradually change their eating habits, making traditional sugary drinks no longer popular
2 Foreign exchange rate risk
With more than 60% of the company's revenue coming from markets outside the US, Coca Cola must also have strategies and financial tools to hedge against exchange rate fluctuations exchange
3.related issues
Water-Water is one of the most important and most used raw materials in the supply chain of Coca-Cola, but it is also a limited resource Coca-Cola has faced numerous regulatory challenges in the past, as well as objections over causing water scarcity in some parts of the world, including India
ơ ộ
Trang 4(In order to grow and expand faster to catch up with the market, Pepsi had to constantly expand its product portfolio to be more diversified ) Although Coca-Cola's market share
is wide, the level of diversification is still modest Therefore, in addition to beverages, Coca cola may consider shifting to other markets such as snacks…
2 Focusing on healthy drinks, instead of soft drinks
In addition to the carbonated beverage market, Coca cola is also shifting towards healthier products such as low-calorie drinks and energy drinks Specifically, Coca cola acquired Topo Chico to introduce Honest Tea and Vitamin Water to the international market Or ready-to-drink juice, tea and coffee campaigns for busy people In this way, Coca cola can grow its product portfolio, reach new markets and increase sales in a more sustainable way
3 Expanding partnerships
By cooperating with other brands including beverages and snacks, Coca cola is gradually dominating the market and expanding its market share, thereby helping Coca cola reduce competitive pressure in the market
4 Exploiting markets in developing countries
For example, Coca cola's Zico brand of coconut water, supplied to the Asian market, is receiving positive sales signals And also in the market of these developing countries, Coca cola can provide its rich beverage products, combine famous brands and wide network to expand the market, increase revenue
Challenges/Threats (Thách th c) of Coca-Cola ứ
1 The threat of competition is very high
One of Coca cola's challenges comes from the competitive threat of beverage brands such as Pepsi, RedBull energy drinks and Monster Although Coca-Cola is leading in the beverage segment, the company is experiencing growth in both costs and business due
to increased competition
2 New government regulations on soft drinks
In many countries, the Government has enacted many new laws related to the sale of soft drinks and sugar content to combat obesity in children and young people In addition, many countries also impose different taxes on carbonated drinks The new regulations will affect Coca Cola's bottom line as it will have to pay more taxes and adjust drinks to match the new regulations Moreover, the penalty for non-compliance also increased, leading to pressure on the Company's financial fund
3 Demand for health-friendly products
The demand for healthy products has increased dramatically in recent years These trends have adversely affected Coca cola, when it is considered as one of the brands with unhealthy products, easy to cause obesity… Although Coca cola is trying to improve the product to meet the needs needs and preferences of consumers, meeting these needs also requires more investment in marketing activities to attract customers
Trang 5III. Competitor analysis
The biggest competitor of Coca-Cola in the Vietnamese market and even in the world is Pepsi The target customers of Coca-Cola and Pepsi are young people In the carbonated beverage business, Coca-Cola and Pepsi have the same product portfolio, both are carbonated soft drinks with flavors such as cola, orange, lemon, strawberry, and similar prices Similar distribution strategy (using multi-level distribution channels, wide range
of products covering Vietnam market, reaching consumers) The competition between Coca-Cola and Pepsi is only a mixed promotion competition, although the promotion plans of the two companies are sometimes very "tit-for-tat"
Over the years, the competition between Coca-Cola and Pepsi has become a representative contest between the two major brands, known as the “Cola war” (“Cola war”)
Trang 6A drink that has been around for more than a hundred years still retains a brand advantage over the icons of modern technology A common recipe but still expensive In the thousands of products on the market, Coca cola still stands and is a symbol of modern times and human creativity on earth Why ? The answer is probably that this drink is not just a pure refreshment, but has become a part of cultural identity Coca-Cola's success today is partly due to its feverish and extremely creative PR campaigns
Trang 7Coca cola has been constantly innovating to create fever PR campaigns.
usernames on cans
The fever of taking pictures with Coca-Cola bottles printed with their names is
"storming" in Vietnam after causing addiction among young people in more than 123 countries during the past 2 summers The most creative and effective advertising campaign in the history of Coca-Cola
Trang 8strategy of "printing usernames on cans" is causing a fever among young people More than just presenting a clever advertising idea , Coca-Cola also ran a creative campaign when offering a series of attached contests such as: "Selfie with a bottle with your name on", or "Map of names will be printed on the bottle by Coca-Cola" Stimulate curiosity, personalized products and take customers on a journey to find, are the factors that make this strategy successful worldwide, and in Vietnam
Advertising creative Coca Cola: Turning empty bottles into water cannons and aerosols
As part of a global sustainability campaign, Coca-Cola recently launched the "2ndLives" program (The Second Life) ai), which shows 16 bottles lined up in a row, each with a special cap that turns them into fun and useful items, like paint cans, water guns or pencil sharpeners
Trang 9Turning coca cola bottles into useful and friendly items is a smart and meaningful PR campaign
Just a little change of bottle caps, recycled Coca-Cola bottles into familiar items Combined with images of daily life and background music "Ring the dawn" creates a sense of familiarity with viewers
The clip ends with the message: “We're giving away 40,000 caps in Vietnam Then rolling out across Asia”
Coca-Cola's 1-minute long ad quickly attracted hundreds of thousands of Vietnamese people after 1 day of being posted online, showing the unique idea and meaning that the clip brings
Trang 10During its development history, Coca-Cola has repeatedly been surpassed by Pepsi So during one of the painful blows, during World War II, the president of Coca-Cola swore that every soldier would receive a bottle of Coca-Cola for only 1 nickel no matter where
he was and how much it cost the company The bottling plants followed the army and
by the end of the war the company had a network of factories around the world
The program "Cleaning the beach"
Coca-Cola Vietnam has cooperated with the Youth Cultural House of Ba Ria - Vung Tau province to organize the program "International beach cleaning" at Thuy Van beach The program attracts more than 150 volunteers to collect non-biodegradable garbage and waste such as plastic bags along the coast, contributing to environmental protection and improving the waste problem for the coast of Vietnam
Seemingly aware of this environmental pollution problem in the past 15 years, Coca – Cola has implemented a PR campaign that is not only never out of date if not more and more new: “Cleaning up national beaches economy” At first glance, it seems that Coca-Cola's main concern is the issues that society is concerned about - environmental pollution
It can be said that this is a smart PR campaign of Cocacola
V Analysis of Coca Cola's Strategic Objectives
Coca-Cola has invested VND86 billion in social and environmental initiatives in Vietnam The company has established 12 EKOCENTERs nationwide, providing clean, safe water and becoming a community training and service center for people Approximately 82,000 direct and indirect beneficiaries have access to tap and potable water, and 31.8 billion liters of water are reimbursed to communities and nature between 2015 and 2018
In addition to a long-term commitment With Vietnam through the initiative "For a world without waste", Coca-Cola is also one of the top 9 enterprises that have established the
"Vietnam Packaging Recycling Alliance" (PRO Vietnam) to raise awareness about awareness on recycling issues, perfecting the packaging collection ecosystem, and supporting and partnering with the government in recycling programs Coca-Cola's goal
by 2025 is to fulfill its commitment to 100% fully recyclable packaging in Vietnam
Trang 11During the period 2016 - 2018, Coca-Cola contributed VND3,500 billion to Vietnam's annual GDP through business and investment activities The company has also supported 80,076 jobs from its direct operations as well as the supply chain
In Vietnam, Coca-Cola has long focused on developing local talents to become part of the Coca-Cola community One of the most prominent programs is “Next Generation Leaders” (NGL), a long-term strategy that invests in people development to create leaders for the future Besides, there is also “The Coke Spark” which is a recruitment and training program where young people participate in building professional sales skills, market research and analysis How to promote Coca-Cola products
Coca-Cola also ensures that the local community is involved in the construction of the company's activities 91% of Coca-Cola's suppliers are local businesses and the company also targets that this year 50% of domestic suppliers will be female enterprises
In Vietnam, Coca-Cola prides itself on being a part of people's daily lives, making a positive impact in many different ways not only for the purpose of serving refreshment needs, but also contributing to inspiring innovation and promoting the development of the community and society
Trang 127 creative inspirational advertising strategies from Coca Cola
1 Love Story communication campaign
Using plastic is a hot topic nowadays, especially is for FMCG brands like Coca Cola In
2017, Coca Cola UK created an advertisement focused on the topic of recycling called
“Love Story”
The advertising strategy tells the love story between two plastic bottles that fall in love over and over again thanks to recycling technology
This is considered one of Coca Cola's marketing mix strategies to help attract a large number of customers Coca Cola recently announced that it aims to collect and recycle all packaging equivalents by 2030 The “Love Story” campaign is a dramatic example of the brand pushing this issue forward
Marketing mix strategy Coca Cola - Love story
This is considered one of the marketing mix strategies of Coca Cola to help attract a large number of customers Coca Cola recently announced that it aims to collect and recycle