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The Coca-Cola Company SWOT & PESTLE Analysis

ID : 52415153| Feb 2023| 15 pages

COMPANY PROFILE -Coca-Cola

Business Sector :FCMG, Non-alcoholic beverages

Operating Geography :United States, North America, Global

About Coca-Cola :

The Coca-Cola Company incorporated in 1892 is the world's largest beverage company. It manufactures, and markets nonalcoholic beverage concentrates and syrups and also finished sparkling soft drinks and other nonalcoholic beverages. The company is well known for its flagship product Coca-Cola or Coke. The concentrates and syrups are sold to authorized bottling partners who process them to sell as finish products. The Coca-Cola Company is a total beverage company, endeavoring over 500 brands in more than 200 countries and territories as of 2019. Coca-Cola is constantly transforming its product portfolio to suit its health-conscious patrons by reducing sugar in their drinks and bringing innovative products to market. Its portfolio comprises of some of the world’s most valuable beverage brands, such as AdeS plant-based beverages, Ayataka green tea, Peak teas and coffees, Georgia coffee, Gold Honest Tea, Costa coffee, Del Valle juices and nectars, Minute Maid juices, Powerade sports drinks, simply juices, Fanta, Sprite, innocent smoothies and juices, Dasani waters, smartwater, Vitaminwater and ZICO coconut water. On May 20, 2022, Coca-Cola announced that it would stop producing and selling Honest Tea products by the end of the year. In a press release, the beverage giant stated that removing Honest Tea is part of a larger strategy to "reflect consumer choice" and to prioritise "fewer, bigger brands."

The USP or Unique Selling Proposition of the Coca-Cola company sprawls in being the world's largest beverage company and owning the world’s most popular and largest selling soft drink brand Coca Cola or habitually known as Coke. Coca-Cola’s mission statement is “To refresh the world in mind, body and spirit, to inspire moments of optimism and happiness through our brands and actions and to create value and make a difference”.

Coca-Cola Revenue :


$55,627 million - FY ended December 31, 2021 (year-on-year growth of 11%)
$50,074 million - FY ended December 31, 2020

Competitive Analysis of Coca-Cola

SWOT
PESTLE
The SWOT matrix of The Coca Cola Company is presented below followed by the detailed analysis:
Strengths
Weaknesses
1. Market leader in the non-alcoholic beverages sector
2. Innovative marketing campaigns
3. Vast brand portfolio
4. Strong distribution network
5. Loyal customer base
1. Absence in other food and beverage segments
2. Insensitivity towards water management
3. Health concerns associated with carbonated drinks
4. Heavy reliance on purchased finished products from external sources
Opportunities
Threats
1. Product diversification
2. Acquisition of niche competitors
3. Penetration in markets of developing nations
4. Major opportunity in bottled water e-commerce and delivery segment
1. Competition with PepsiCo
2. Indirect competition
3. Increasing taxes on sodas and sugary soft drinks
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Detailed SWOT Analysis of Coca-Cola

Strength

1. Market leader in the non-alcoholic beverages sector: The Coca-Cola Company (TCCC) is the largest non-alcoholic beverage company in the world. According to the Annual Report of The Coca-Cola Company, it is a global brand that is identified and appreciated in virtually every country of the world. Around 94% of the world’s population is its consumer. TCCC boasts of more than 500 brands which position it as the world’s largest total Beverage Company. It enjoys the number one value position in non-alcoholic ready-to-drink beverages, as well as in sparkling soft drinks; juice, dairy and plant-based beverages; water, enhanced water and sports drinks; and ready- to-drink tea and coffee. It owns world’s top five non-alcoholic sparkling beverage brands: Coca-Cola, Diet Coke, Fanta and Sprite.

2. Innovative marketing campaigns: The Coca-Cola Company has never failed in winning hearts across boundaries with its innovative and unconventional marketing campaigns. TCCC is the largest advertiser in the beverage industry in the world. Since 2014, the “Share a Coke” campaign has brought in new innovations and surprise-and-delight experiences to keep fans coming back. From the addition of more brands and names on more packages (including tie-ins with passion points like NCAA March Madness and the FIFA World Cup), to the launch of an e-Commerce site (ShareaCoke.com) where fans can order custom glass bottles, to the introduction of a first-ever sticker label, to work towards integrating music into the campaign. A new creative campaign called “That’s the MIX” will mark the celebration of The MIX by Sprite Tropic Berry, a new sparking soft drink, available only at McDonald’s. Coca Cola's well-known campaigns include Open Happiness, the FIFA World Cup, the Happiness Machine Campaign, and the Share A Coke Campaign. The "One Coke Away from Each Other" campaign is the "Real Magic" platform's first creative experience. "One Coke Away From Each Other" is a metaphor that celebrates shared humanity by blending the real and virtual worlds. What if Coca-Cola, as a symbol of togetherness, could create "Real Magic" by bridging universes that were meant to be apart, the film asks.

The remaining section under "Strength" is available only in the 'Complete Report' on purchase.

Weakness

This section is available only in the 'Complete Report' on purchase.

Opportunity

This section is available only in the 'Complete Report' on purchase.

Threat

This section is available only in the 'Complete Report' on purchase.

Major Competitors :

Major Brands :

  • Coca-Cola
  • Diet Coke
  • Fanta
  • Sprite
  • Dasani
  • Georgia
  • Ice Dew
  • Powerade
  • Simply
  • I LOHAS
  • Del Valle
  • Glacéau
  • Ayataka
  • Fanta Schweppes
  • Aquarius FUZE TEA
  • Gold Peak
  • Minute Maid
The company has an overall portfolio of more than 500 owned or licensed nonalcoholic beverage brands.
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References used in Coca-Cola SWOT & PESTLE Analysis Report

1. Annual Report - https://d1io3yog0oux5.cloudfront.net/_782ff90a144ed06e33611575b482a40f/cocacolacompany/db/734/7807/annual_report/2021_Business_ESG_Report.pdf
2. Sustainability - https://www.coca-colacompany.com/sustainability
3. Soft drink sugar tax starts, but will it work? - https://www.bbc.com/news/health-43659124
The detailed complete set of references are available on request in the 'Complete report' on purchase.

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SWOT & PESTLE.com (2023). The Coca-Cola Company SWOT & PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/the-coca-cola-company/ [Accessed 08 Feb, 2023].

In-text: (SWOT & PESTLE.com, 2023)

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The Coca Cola Company SWOT and PESTLE analysis has been conducted by Astha Gaur and reviewed by senior analysts from Barakaat Consulting.

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