07/29/2010 (4:34 am)
Business practices of Coca-Cola Best answer on the web
Could you please be more specific about what types of behavior you are interested in? Marketing activities, human resource practices, product pricing, new-product introductions, etc.?
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Wonko
I am interested in Coca-Cola's marketing activities, senior and company management, human resource practices, product pricing, new-product introductions, social resonsibility, recent reports about manipulating financial statements, labor strike, comments on the company's brands.
Thanks!
habu-ga
I have found the following Coca Cola company activities for 2003. I will categorize them according to different elements of the company’s activities. I will also provide small snippets from the articles whenever possible so as to save you time but I highly recommend that you read them in their entirety so as to get a better understanding of the issues.
Market Analysis:
1. Coke vs. Pepsi
“No matter how hot or "cool" the flavor feud becomes this summer, Coke won't be sweating it too much.”
“In fact, the company increased its market share of the $63 billion U.S. soft-drinks market by 0.6 percent to 44.3 percent in 2002.”
“Industry analysts credit Vanilla Coke, launched last year, as a huge success for Coke similar to Pepsi's breakthrough in 2001 with Mountain Dew Code Red, a cherry-flavored variation of the drink.”
“Industry watchers say Coke's pick of Sprite as its "golden child" this year is clever, given that Sprite is the company's third-strongest brand in the United States.”
“Coke vs. Pepsi: What's your flavor?”
http://money.cnn.com/2003/04/17/news/companies/coke_pepsi/
“Financially speaking, Coke is the real thing. The company expects to produce an average of just over $6 billion in annual cash flow over the next five years. While it's true that the stock ran ahead of its sobering fundamentals during the 1990s, the frothy fizz is over.”
“Coke vs. Pepsi”
http://www.fool.com/specials/2003/03041400sp.htm?source=mppromo
2. Coke’s Global Water Business
“Coke's fledgling water network has come together with little fanfare and still resembles more of a patchwork than a formal strategy. But observers think Coke is aiming at getting a bigger and bigger handle on the world's water market. 'They've been aggressive in buying brands,' said John Faucher, an analyst with JP Morgan. 'From an acquisition standpoint, water has been a big focus for them.'”
“However, water remains a small part of Coca-Cola's business. Coke still gets 85 per cent of its business from soft drinks. But in 2002, Coca-Cola's global water business grew by 68 per cent. Coke spokesman Kelly Brooks said the company's three-year compounded growth rate for water was 59 per cent.”
“Coke slowly builds up a water empire”
http://216.239.51.100/search?q=cache:9_igmbhPJdwJ:business-times.asia1.com.sg/storyprintfriendly/0,4568,84379,00.html+coke+%22water+empire%22&hl=en&ie=UTF-8
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New Projects and Business Moves:
A. Products
1. Swerve
“After tinkering with milk products for at least two years, Coca-Cola is planning to roll out a new milk-based drink called Swerve. At the same time, Coke is dropping two brands that were in testing.”
“Swerve will be made with at least 50 percent milk, Beverage Digest said Friday in a report that was confirmed by Coke. With a low fat content and about 150 calories per 12-ounce can, Swerve could find a niche in places like schools, where soft drinks are increasingly coming under fire.”
“Coke swerves into dairy market”
http://www.montereyherald.com/mld/mcherald/business/5937039.htm
“The new drink, which will be called Swerve, will come in chocolate, vanilla-banana and blueberry flavors and contain more than 50 percent dairy products, allowing it to carry the "Real" seal of the American Dairy Association.”
“Coke to unveil dairy drinks this summer”
http://www.bizjournals.com/atlanta/stories/2003/05/19/daily53.html
2. Sprite Remix (US)
“Atlanta-based Coke (NYSE: KO) said "Sprite Remix" will first hit shelves in 20-ounce bottles, and then will be available in additional package sizes later in the spring and summer.”
“Coca-Cola plans new Sprite flavor”
http://atlanta.bizjournals.com/atlanta/stories/2003/02/24/daily17.html http://www2.coca-cola.com/presscenter/nr_20030225_americas_sprite_remix.html
3. Sprite Ice (Canada)
http://www2.coca-cola.com/presscenter/nr_20030409_canada_sprite_mint_flavor.html
4. Sprite Super Lemon (Hong Kong)
http://www2.coca-cola.com/presscenter/nr_20030402_china_sprite_super_lemon.html
5. Fanta Blueberry Plush (Thailand)
http://www2.coca-cola.com/presscenter/nr_20030620_thailand_fanta_blue_success.html
6. New Nestea Lemon (Thailand)
http://www2.coca-cola.com/presscenter/nr_20030306_thailand_nestea_launch.html
7. Coke Light Lemon (Germany)
http://www2.coca-cola.com/presscenter/nr_20030214_europe_coke_light_lemon.html
8. New Odwalla Products
http://www2.coca-cola.com/presscenter/nr_20030204_odwalla_new_juices.html
9. New Nescafe Patented Technology
http://www2.coca-cola.com/presscenter/nr_20030410_china_coffee_series.html
10. Improved Marocha Green Tea
http://www2.coca-cola.com/presscenter/nr_20030210_japan_marocha_tea.html
B. Promotional Programs
1. Theme Park Partnerships
“The world's largest beverage maker said Tuesday it has entered into a 10-year marketing partnership with Universal Parks & Resorts, a division of television and film giant Vivendi Universal.”
“The new agreement also extends Coca-Cola's relationship to Universal Studios Hollywood and CityWalk Hollywood and Universal Orlando, which includes Universal's Islands of Adventure, Universal Studios Florida and CityWalk Orlando.”
“Coke extends marketing partnership with Universal theme parks”
http://www.miami.com/mld/miamiherald/business/4892007.htm
2. Marketing Partnership with College Sports Network
http://www2.coca-cola.com/presscenter/nr_20030407_corporate_cstv_partnership.html
3. IHOP Deal
“Coca-Cola Foodservice and Hospitality, the division of Atlanta-based Coca-Cola North America that serves the restaurant and food service industry, will continue to be IHOP's preferred beverage provider, supplying soft drinks including Coke, Diet Coke and Sprite to the chain's restaurants.”
“IHOP extends Coke contract”
http://losangeles.bizjournals.com/losangeles/stories/2003/05/26/daily4.html
4. TV Network Marketing Alliance
http://www2.coca-cola.com/presscenter/nr_20030313_americas_tnt_alliance.html
C. Social Projects:
1. Africa AIDS Healthcare
http://www2.coca-cola.com/presscenter/nr_20030415_hivaids_benefits.html
2. Texas Recycling Program
http://www2.coca-cola.com/presscenter/nr_20030324_americas_nascar_recycling_program.html
3. Independent Filmmaking
http://www2.coca-cola.com/presscenter/nr_20030305_americas_project_greenlight.html
D. Management
1. Chief Marketing Officer – Daniel P. Palumbo
http://www2.coca-cola.com/presscenter/nr_20030603_corporate_palumbo.html
“Coca-Cola Co. named an outsider its new chief marketing officer on Tuesday, four days after he resigned as an executive at Eastman Kodak Co.”
“Daniel P. Palumbo worked at Rochester, N.Y.-based Eastman Kodak as a senior vice president and head of consumer imaging products and services - the photographic unit that accounts for half of the company's sales. The company announced he was leaving Friday ‘to pursue other interests.’”
“Coke names outsider new chief marketing officer”
http://www.macon.com/mld/macon/news/local/6005397.htm
2. New Officers
Senior Vice President – Danny Strickland
Vice Presidents – Ralph Carlton and Harry L. Anderson
http://www2.coca-cola.com/presscenter/nr_20030416_corporate_elects_officers_regular_dividend.html
3. Board of Directors – Maria Elena Lagomasino
http://www2.coca-cola.com/presscenter/nr_20030416_corporate_shareowners_elects_lagomasino.html
4. “Coke Consolidated completes $53.5M deal”
http://charlotte.bizjournals.com/charlotte/stories/2003/03/31/daily1.html
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International Projects:
1. Australia
“Soft drink manufacturer and distributor Coca-Cola Amatil has said it has increased its stake in water bottler Neverfail Springwater to 76.11 per cent.”
“Coke increases Neverfail stake”
http://www.foodingredientsfirst.com/newsmaker_article.asp?idNewsMaker=3681&fSite=AO545
“SOFTDRINK company Coca-Cola Amatil Ltd has waded further into the bottled water market with its acquisition of Peats Ridge Springs' assets.”
“The move is on top of CC-Amatil's $280 million hostile takeover offer for Neverfail Springwater, with some investors also speculating the group could be eyeing Palm Springs Ltd.”
“Coke targets Peats Ridge”
http://www.news.com.au/common/story_page/0,4057,6532463%255E1702,00.html
2. India
“Finally, Coke is starting to inject some fizz into its Indian operations. On Feb. 28, the company plans to sell 49% of its Indian bottler, Hindustan Coca-Cola Beverages, for $41 million.”
“Key to Coke's battle plans is operations chief Sanjeev Gupta. After being promoted from marketing director three years ago, the boyish, straight-talking Gupta persuaded his Coke bosses to change the way they do business.”
“Finally, Coke Gets It Right in India”
http://www.businessweek.com/magazine/content/03_06/b3819080.htm
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Lawsuits and other problems:
1. Fraud Claims
“A former employee of The Coca-Cola Co. filed a lawsuit against the company May 19 which charges it used theft, fraud and deception to cheat shareholders, customers and competitors.”
“Coke hires firms to investigate fraud claims”
http://sanfrancisco.bizjournals.com/atlanta/stories/2003/05/19/daily20.html
2. India Environmental Problems
“The activists are protesting against a Coca-Cola plant located in Mehdiganj, some 20 kilometers from Varanasi. They claim that the plant draws electricity from two diesel power generators, one of which consumes 360 liters of diesel per hour. Two tube-wells draw thousands of liters of underground water.”
“Water-Guzzling Coke Plant Triggers Protests in Indian Town”
http://story.news.yahoo.com/news?tmpl=story&cid=655&ncid=655&e=3&u=/oneworld/20030624/wl_oneworld/105021056456386
3. Indian Politics
“The government of India is on the verge of changing its policy because of the pressure exerted by the Atlanta, US-based soft drinks giant, Coca-Cola.”
“Coke is one of the best-known brands in the world. But the corporation and its Indian associates have not exactly covered themselves with glory by the manner in which they appear to have successfully lobbied with the government in New Delhi to change the rules of the game.”
“Finance Minister Jaswant Singh recently overruled the views of bureaucrats in his own ministry and recommended that the Union Cabinet change government norms related to divestment of equity shares by international companies in their Indian associates.”
“How Coke arm-twisted the Indian government”
http://www.rediff.com/money/2003/jun/21paran.htm
4. Labor Problems
“Over 100 trade unionists and supporters marched through the Pilsen neighborhood on May 3 to rally in front of the Coca-Cola bottling plant on Cermak Road. The crowd had gathered to protest Coke’s complicity in the murder of trade unionists in Coca-Cola’s bottling plants in Colombia.”
“Stop Coke killings!”
http://www.newsandletters.org/Issues/2003/June/Coke_June03.htm
“Daft said Coke and its bottlers have not abused or condoned abuse of trade unions in Colombia and the company has worked hard to deal with human rights issues in China. “
“In Venezuela, the company's operations were shut down during the national strike in January and February.”
“The biggest decline abroad for Coke was in Germany, where unit case volume dropped 10 percent due to a new deposit law on nonreturnable packages, such as beer or soda cans. The January change resulted in major retailers pulling nonreturnable packages, Coke said.”
“Coke shares plunge despite solid earnings”
http://www.kansascity.com/mld/kansascity/business/5646184.htm
5. Sports
“Houston Rockets star Yao Ming is suing Coca-Cola's Chinese subsidiary in an effort to stop it from using his picture on commemorative bottles sold in his hometown of Shanghai.”
“Yao sues over Coke promotion”
http://www.philly.com/mld/dailynews/2003/05/27/sports/5950228.htm
6. OSHA violations
“A list released by OSHA in February that identifies 14,200 U.S. facilities that had accident and illness rates at twice the national average of about three illnesses or injuries for every 100 workers included 96 facilities owned by Coke bottlers. “
“OSHA cites Coke for 222 violations”
http://sanjose.bizjournals.com/atlanta/stories/2003/04/14/story1.html
7. Coke NCAA deal
“Despite a national marketing and sponsorship partnership with soft drink giant Coca-Cola, when the NCAA's Frozen Four tournament is held at Buffalo's HSBC Arena, hockey fans will be drinking Pepsi products.”
“The arena has a longstanding and exclusive arrangement with Pepsi. All non-alcoholic beverages served in the downtown arena are Pepsi or Pepsi-distributed.”
“Coke deal won't dry up Pepsi”
http://buffalo.bizjournals.com/buffalo/stories/2003/04/07/story5.html
8. Burger King Lawsuit
“Burger King franchisees are organizing to seek up to $65 million in compensation from The Coca-Cola Co. for their expenses related to selling a failed Frozen Coke, USA Today reported on its Web site.”
“Burger King franchisees debate lawsuit against Coke”
http://atlanta.bizjournals.com/atlanta/stories/2003/06/02/daily40.html
9. Defective Beverage Machines
“A former Coca-Cola manager alleged Wednesday that more than 80,000 of the company's frozen beverage machines nationwide are defective and tainting slush drinks with metal residue.”
“Whitley said he notified Coke about the problem in February. A week later, he said, Coke gave him the worst performance review of his 11-year career and fired him seven weeks later.”
“The complaint says the machines located at stores such as Burger King, 7-11 and Wal-Mart cost about $10,000 each and bring in about $100 million in annual syrup sales for Coke.”
“Former employee claims Coke frozen beverage machines tainting product” http://boston.com/dailynews/176/economy/Former_employee_claims_Coke_fr:.shtml
10. Sweden Naming Rights
“The Coca-Cola Co. and some Swedish people named Urge are locked in a naming-rights dispute - the surname is the same as a Coke citrus beverage.”
“The family surname Urge also happens to be the name of a citrus drink bottled by Coke that's available only in Norway.”
“Swedish law prohibits registration of trademarks that use someone else's family name. But the Court of Patent Appeals ruled in favor of Coca-Cola last month, saying the English word ‘urge’ was more commonly known than the family name, which is pronounced ‘OOR-geh’."
“Coke, Swedes in Naming-Rights Dispute”
http://www.ledger-enquirer.com/mld/ledgerenquirer/business/5638546.htm
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