PEST & SWOT ANALYSIS

OF COKE
Abeer Fatima
3rd September, 2018
 SWOT & PEST
 SWOT- it’s a study undertaken by an
organization to identify its internal strengths
and weaknesses, as well as its external
opportunities and threats.
 PEST- this is a simple and widely used tool that
helps you analyze the Political, Economic,
Socio-Cultural, and Technological changes in
your business environment.
 SWOT
Strengths Weaknesses
 Company valuation: One of the most valuable Companies in the Competition with Pepsi: Coca cola would have been the clear
world, Coca cola is valued around 79.2 billion dollars. This valuation market winner had it not been for Pepsi.
includes the brand Value, the numerous factories and assets spread out Product Diversification is low: Where Pepsi has made a smart move
Across the world and the complete operations cost &Profit of Coca cola and diversified into the snacks segment with products like Lays and
 Vast global presence: Coca cola is present in 200 countries across Kurkure, Coke is missing from that segment. The segment is also a
the world. Chances are, any country you go to, you will find coca cola good revenue driver for Pepsi and had Coke been present in this
Present in that market. Segment, these products would have been an additional revenue
 Customer loyalty: With such strong products, it is natural that Coca driver for the company.
Cola has a lot of customer loyalty. People will prefer products like coke & Absence in health beverages: Obesity is a major problem nowadays
Fanta over others. Because of its good taste, finding substitutes & people are taking measures to ensure they’re not obese. Coke being
Becomes difficult for the customer. The largest manufacturer of carbonated beverages may be a reason.

Opportunities Threats
 Market the lesser selling products: In the product portfolio of Coca Raw material sourcing: The weakness of coke is the use of
cola. There are several products which have not found acceptance in the pesticides or vast consumption of water and since scarcity is on the rise
Market. Coca cola needs to concentrate on marketing of these products with the climate changing, sooner or later people will start raising
In order to rise its sales. Fingers on beverage companies. If water is limited, Coke can
 Supply chain improvement: This can be a major cost sink hole with experience a major downfall in their revenue & capacity of
distribution.
The transportation costs always rising. Cokes complete business is based Indirect competitors: These days coffee chains are on the rise & they
On transportation and distribution. There will always be possible offer a healthy competition to Coke or carbonated drinks. They
might
Improvements in this area thus coke should keep strict watch on this to not be a big competition for it but they do give a dent to its beverage
Bring its costs down. Market. Similarly, drinks Tropicana, Red Bull & Gatorade are stealing
away the market share indirectly.
 PEST
Political And Legal Economic Social Technological

• CCPBL claims to have •Job creation- Coca •Healthy Lifestyle Concerns- •Coke’s Marketing, Advertising, and
warehouses that stores coke Media today, is fostering interest Promotional Programs- The most
enough to meet the demand in cola claims to boost in healthy lifestyles. That has evolving media for promoting the
company’s products are through TV,
case of strikes or political job creation. It acts as strongly influenced the sales
websites and social media. CCPBL
disruption for 1-3 months. within non-alcoholic beverage
a responsible sector as many customers switch possesses mind blowing strategies to
• Effect of labor laws-The union effectively promote their products
of CCPBL started in early 2000 organization by to mineral water bottles and
through these channels that enhances
fresh juices. In this regard,
when the labor union was contributing to the CCPBL has successfully come
sales. It is reported that Coke studio
discouraged by the unfit season 8 raised the company’s sales
society by paying up with products such as Coca-
by 42%. Its “Share a Coke” campaign
management worthless Cola Light or Zero that
negotiations & was banned. taxes, hiring local addresses the healthy diet
in which customized bottles were
introduced with various popular
Later with the revival labor individuals, paying concerns. However, the attitude names that created a buzz among
union since 2010, the suppliers on time and of this segment of people consumers.
management guaranteed the towards the harmfulness of •Access to the market- With the ease to
effective social dialogue with engaging in carbonated drinks doesn’t seem access internet, social media has
the factory workers & took community welfare to be altered for diet cokes become a great mean to provide huge
initiatives towards a procedural either. growth in consumer awareness,
projects. •Adaption and cultural borrowing- brand identity, promotions and
& institutional framework.
•Consumer laws- Its an essence •Changes in Non- The Coca-Cola Company direct-to-consumer communication.
recognizes the need of •Packaging design- As the can and
of consumer law that a Alcoholic Business Era- affirmative action, that is, open plastic bottles were introduced, the
company that a company CCPBL has come up tolerance to concept of being sales volume increased with a great
should let its consumers know different and equal. The margin for the company because of
the content and nutritional with the competitive company realizes that these the ease in carrying and disposing
containers.
information of their product. pricing policy and differences exist and tries to
•New Equipment- Because the
The Coca cola company doesn’t understand and cope with them
ability to maintain or in proper manner. The
technology is continuously
reveal the composition of the advancing, new equipment is
concentrate it imports from earn share of sales in advertisement campaigns focus constantly being introduced by
USA and hence, is invulnerable local market in order on relationships, family events CCPBL. Because of these, Coca cola’s
position in this regard. and gatherings, festive occasions production volume has increased
to compete its rivals like Eid and music. sharply compared to that of a few
specifically Pepsi. years ago.
 Market Segmentation Of Coca-Cola
 Geographic segmentation- This calls for dividing the market into different geographical
units such as regions, cities, neighborhood. Coca-Cola has a countryside network of product
distribution but the company segments more in urban and suburban areas as compared to
rural areas.
 Demographic segmentation- The market is divided into groups on the basis of variables such
as age, family life cycle, gender, income, occupation, education, religion, race, generation,
nationality, and social class. These variables are the most popular base of Coke company for
distinguishing their customer groups. The reason is that consumer wants, preferences, and
usage rates are often associated with demographic variables. Another is that these variables
are easier for Coke to measure because they can evaluate or conduct surveys for the
demographic segmentation.
 Age and Life-Cycle stage- Wants and abilities of Cokes consumers change with age. Age and
life cycle can be tricky variables because there are different needs and as accord to the age of a
person. The main sector in which Coke company targets is the youth because there is a much
need of refreshment and energizers to cope up with their daily activities.
 Gender- Men and women tend to have different attitudes and behavioral orientations, based
partly on genetic makeup and partly on socialization practices. Coke targets both genders
with variety of drinks. This market is relatively large and is open to both genders, thereby
allowing greater product diversification.
 Family size- In our society we have families with different family sizes. So Coke
makes a variation in in their served bottle size into many ways such as 500ml, 1L,
5L, 2L pack. People can easily choose a suitable pack based on their family size.
 Income- Coke segments different income groups by packaging. For example, for
people with a low level of income, the company has small returnable glass bottle;
for the mediocre class, it has non-returnable bottle, and for people with a high
level of income, it has coke tin.
 Psychographic segmentation- Coca Cola buyers are divided onto different
groups on the basis of lifestyle or personality or values. People within the same
demographic group can exhibit very different psychographic profiles, for that
reason Coca Cola company designed and made products which are suitable for
their personality.
 Lifestyle- People exhibit many more lifestyles than are suggested. People differ in
attitudes, interests, activities, and these affect the goods and services they
consume. Coca Cola company presented products which are suitable for modern,
busy life (shortage of time) and mobile generation.
 Behavioral segmentation- Coke buyers are divided into groups on the basis of
their knowledge of, attitude towards, use of, or response to a product. Many
marketers believe that behavioral variable occasions, benefits, user status, usage
rate, loyalty status, buyer readiness, stage and attitude are the best starting points
for the construction market segments.