As the largest beverage brand on the world, Coca-Cola has a unique supply chain system. In fact, formula Coca-Cola is held tightly trade secret and cannot know exact ingredients as well as the cost of their supplies. However, some ingredients are known as important components which are used in the manufacturing of syrup such as sugar, Carbonated water, sucrose, high-fructose corn syrup, caffeine, phosphoric acid v. Caramel (E150d) and Natural flavourings. In downstream activities, Coca-Cola uses the franchised distribution system. Excepting some of the largest franchisees like Coca-Cola Enterprises, Coca-Cola Amatil, Coca-Cola Hellenic Bottling Company (CCHBC) and Coca-Cola FEMSA, almost half of volume sold in the world is produced by …show more content…
They also consider demand forecasting through quarterly sales data to forecast future fluctuation and problems. According to John Gattorna, the Coca-Cola has implemented a combination of distribution channel to develop the availability of the products to attract more customers. Coca-Cola is using brand focused corporate strategy which is known as omnipresent strategy in mass-market to make sure getting high availability of the products. The application of these supply chain strategies in the case of Coca-Cola will require the supply chain to be designed to run in high efficiency and effectiveness. Additionally, excepting physical distribution system, the company has invested in the software control system - known as BASES and some specific modules of SAP, to ensure the efficiency and cost control of the supply chain. This software performs the functions of the entire ERP for the company and its worldwide operations which manage Information related to geographical sales, per capita consumption trends, responding from new product introduction, sales forecasting, and all other related information as well as all query management and customer problems. As a result, Coca-Cola’s succession is in their supply chain what is called a customer-driven supply chain. Buffington said that their business was a local business though Coca-Cola was a global company. They never
The Coca-Cola Company has built an extensive network of distributors that partner with local retailers to ultimately reach their final consumers. They understand their target market and the logistics required to have their products reach their customers around the world. Their success is due to their continual efforts to reduce cost and increase profits, while delivering quality, diverse products to their customers and consumers. Coca-Cola anticipates their customers’ interests and proactively delivers viable solutions for their businesses (The Coca-Cola Company, 2014).
Coca-Cola is one of the most recognizable brands around the globe. The history of Coca-Cola began over a century ago since 1886. Today Coca-Cola sells products in over 300 countries world-wide, and has over 3,000 different beverages. The brand is familiar to people all around the world, and is available in many different varieties. The company takes pride in the development of unique marketing strategies, which have allowed growth and access to various places throughout the world. Their extremely recognizable branding is one of Coca-Cola 's greatest strengths and the simplicity of its bottling is a part of a great marketing strategy (Spring,2002). Coca-Cola makes money primarily from selling
Such things as market leadership, joint ventures, managerial expertise, inventive business solutions, and flexible organizational structure have giving Coca Cola a competitive advantage (Coca-Cola FEMSA, 2010). Coca Cola also provide managerial expertise training programs to improve their abilities, The inquiries for both companies on sugar content in the products have increased. Also there are negative doubts about their recipe of sugar content effecting weight control, pop culture, and society. Over the course of the years Coca Cola have adjusted their recipe because they are using crafty marketing and distributing smaller
The Coca Cola Company (TCCC) was founded since 1886 and it has been 129 years today. TCCC is the worldwide carbonated soft drinks industry from United States of America. There are four top five soft drinks brands of Coca Cola, Diet, Coke, Fanta and Sprite. The other products are: Juice & juice drinks, waters, energy drinks, sports drinks, cordials and iced tea. It has licenses and markets more than 500 beverage brands. The company has relationship with over 250 bottling partners worldwide. TCCC is manufacturing by nearly 900 plants to worldwide markets. In strengthening operations through an integrated supply chain, the company make alliances with the Walt Disney and the McDonalds. In 2012, the key performance are highlighted by increasing
Coca Cola has differentiated its product and services that are valued by its customer. Its product are based on customer’s preferences, with affordable price and made easily accessible.
The Coca Cola Company is very cautious and responsive to change; they act with urgency and have the courage to discourse when needed to work more efficiently. Coke’s focus is to administer its system assets to build values and rewards for the people who take risks by finding better ways to solve problems. Coca Cola Company feels they are accountable for their actions and inactions and hence answerable to the people. They learn from their outcomes and understand what works or what doesn’t for them.
It has taken much more than simply the brand and product to grow Coca-Cola in the number one leader in the soft drink market. Over the past 100 plus years, Coca-Cola has built a huge network of distribution and manufacturing networks. These collaborations that are superior to all others and all types of relationships are a distinctive competency for Coca-Cola. The way that they organize and plan their contracts has proven to be extremely successful and continues to keep Coca-Cola at the top of the market. They have been able to build relationships with suppliers, buyers, bottlers, manufactures, retailers and consumers that are strengthened by the degree of loyalty from both sides of these relationships. They continue to manage their company
It should be noted that success of any company depends on four key marketing strategies. These include the product, price, place and promotion. CocaCola has managed to dominate the market and appear more successful in the Fortune 500 because of its ability to integrate the four marketing effectively. Concerning product, it is apparent that cocacola company has always been in forefront coming up with new products that match the customers needs. For example, the realization of the fact that highly caloric drinks can cause obesity forced cocacola company to come up with new brands of products such as ‘Diet Coke’. Recently, cocacola company has customized its products such that every
The Coca Cola Company currently operates a franchise system, and its syrup concentrates is sold all around the world manufactured by the company itself and sold through different bottles. The Coca Cola Company is also currently listed in the New York Stock Exchange; Coca Cola Company has a long history of acquiring different
Description: The Coca-Cola Company is the world 's largest beverage company and is the leading producer and marketer of soft drinks. Today, Coca-Cola is consumed throughout the world at the rate of more than 600 million times per day and this figure is continuing to rise. However, Coca-Cola is not the sort of company to live on its past glories; instead it looks to the future as a challenge and constantly seeks new markets and ways of increasing its market share in areas where it currently has a strong presence. It is the world 's largest producer and distributor of syrups and concentrates for soft drinks. Products developed by the Company are sold through
When looking into the product and plans, it can be compared to those of a Fortune 500 company such as Coca-Cola. Njoku Bottle Water has a similar plan when it comes to the bottling and distribution of the product. In 1963, a company named Slovenija signed a contract with Coca-Cola and was licensed to produce and sell coca-cola products. Coca-Cola is known to have a unique business and operational strategy. There are a number of things that are done in order for there to be a product in the company. For Coca-Cola, they start off with water that is processed and made pure then they have their sugar and sweeteners which are regularly controlled for compliance with regulations. When the water, sugar, and sweeteners are mixed in the reservoir, the syrup is made. Concentrates of Coca-Cola are then added to the syrup and blended to create the final Coca-Cola syrup which is then blended with purified water and carbon-dioxide is added. After this process, the product is
•Franchised Production Model: The production and distribution of Coca-Cola follows a franchising model strategy. The Coca-Cola Company only produces a syrup concentrate, which it sells to various bottlers throughout the world who hold Coca-Cola franchises for one or more geographical areas. The bottlers produce the final drink by mixing the syrup with filtered water and sugar (or artificial sweeteners) and fill it into cans and bottles, which the bottlers then sell and distribute to retail stores, vending machines, restaurants and food service distributors. The bottlers are normally also responsible for all advertisement and other sales initiatives within their areas. (http://en.allexperts.com/e/c/co/coca-cola.htm)•Diversity Strategy: The Coca-Cola Company operates in more
Coca-Cola products are available via the world’s largest distribution network. The company capitalizes on a global network of owned or controlled distributors, independent bottlers, wholesalers, and retailers. This enables Coca-Cola to closely manage costs and rapidly introduce new items into the marketplace. These activities have facilitated market presence, high volume deliveries, and product saturation during in recent years.
Operating a global business places tremendous demand on the supply chain therefore in Coco Cola Company the supply chain involves working closely with marketing department within the business so that they align their strategic plans with supply chain capabilities.