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时间：2023-04-17
z5408724 Xinjin Guo
z5399383 Wenxi Cao
z5429255 Vanshika Bhalla
Z5408640 Digvijay Bamanikar
Coca-Cola’s Strategy to Win
over the Beverage Industry
Industry Analysis & Critical Analysis
Coca-Cola’s Strategy to Win
over the Beverage Industry
Strengths
Opportunities
Weaknesses
Threats
Strong brand BSI: 93.3 (Brand Finance, 2022)
Product = joy and happiness, strong
Brand awareness, Coca Cola is the
most popular soft drink in Australia
Strong distribution channels
One of the largest bottlers and distributors
Effective product offering (Coca-Cola Company, 2022)
Differentiation
Gender sector ( Diet Coke & Coke Zero)
Market prospect
$15.37 billion in 2023 with 3.59% growth
Expand product line
Promote healthier product
Growing health consciousness
First mover
Brand image
Recall for Appletiser in 2021 (Lyons, 2021)
Excessive patulin detected
New entrants
Commoditization of consumer products
More options and substitutes
Marketing Environment Analysis
Competencies
Continuous innovation
Variety of flavor options e.g. Coca Cola
Vanilla, Coca cola frozen (Coca Cola,
(n.d.)).
Creative marketing
Campaigns
‘Share a Coke’ campaign- 250 million
named cans sold (Moye, 2016)
Competencies
Pizza Hut Australia
5 year deal to provide 285
outlets with soft drink
(Dunckley, 2019)
Tommy Hilfiger
‘TommyJeansXCocaCola’(Co
ca Cola Instagram, 2023)
Corporate Partners
Competitors
Biggest competitor is PepsiCo.
Provides a diversified product portfolio
and pricing is based on consumer
demand and demographics which
leads to higher revenue growth
(GORTON, 2020)
Social Australians shifting towards a healthy lifestyle - Coca
Cola no sugar, Coca Cola no sugar frozen
Survey shows 10% Australians like Ginger ale flavor
(Canstar Blue, 2020) - Coca Cola introduced Coke
Ginger
Supporting ‘Sydney World Pride’ with special edition
‘Love Cans’ (Coca Cola Instagram, 2023)
Environment Increased awareness about harm of plastic to the
environment- Introduction of 100 % recycled Coca
Cola bottles (Coca Cola Instagram, 2023)
Technology Increased use of technology in business to improve
efficiency - Amatil introducing fully automated pallet
storage system (Retail World Editor, 2018)
Segmentation for Coca Cola
Name Segmentation
method
Description
1. Soft Drink
Loving Teens
Demographic (age,
gender)
300,000 australian young males (12 - 24 years)
who consume 50 liters of soft drink each year
(Cancer.Org, 2017)
2. Gym
Enthusiasts
Psychographic
(lifestyle,
self-values)
6.2 million australians who have a gym
membership and are looking for a healthy
alternative to sugary soft drinks (Lloyd, 2021)
3. Thirsty Aussies Benefit
Segmentation
25% of Australia’s population (6.5 million) drink
soft drinks to quench their thirst and get enjoyment
(Australian Health Survey, (n.d.))
Objective: To providing varieties of flavors and healthy options to fulfill
the needs of different customer segments
Substantial No, too small Yes, covering 25%
population
Yes, covering 25% population
Identifiable No, overlaps with
segment 3
Yes No, overlaps with segment 1
Reachable Yes (social media,
Television
advertisements)
Yes (Social media, gym
partnerships)
Yes (Social media, Television
advertisements, print media)
Responsive Yes, responds well to
new trends online
(Kargo Commerce,
(n.d.))
Yes, happy to try healthy
alternatives (Poinski,
2020)
Yes, open to try new drinks to
quench thirst (Canstar Blue,
2020)
Profitability
(appendix)
Least profitable Yes, Second most
profitable
Yes. most profitable
To gym enthusiasts who need healthy alternatives to sugary
soft drinks, Coca Cola is a soft drinks brand that gives you soft
drinks that are healthy, full of vitamins and supplements, tasty
and affordable.
Healthy
Unhealthy
High
Price
Low
Price
1. Investment in research and development to
create recipes with nutrients and vitamins
while maintaining taste
2. Provide options of drinks with vitamins and
supplements e.g. vitamin C, Whey protein
3. Create a separate color theme/branding of
healthy options (e.g. Coke Health, CokeVit)
4. Partner with gyms and fitness influencers
5. Partner with sport brands like Nike, Puma
(e.g. CocaColaXNike)
Coca Cola Australia began in 1938 with just one beverage and
now offers 160 drinks ranging from soft drinks, energy drinks
and juices (Coca cola , (n.d.)).
(Coca Cola
Amatil, 2019)
1. Australian Health Survey, (n.d.),The role of beverages in the Australian diet,
http://www.australianbeverages.org/wp-content/uploads/2018/11/The-role-of-bevera
ges-in-the-Australian-diet.compressed.pdf, accessed 5 March 2023
2. Brand Finance, (2022), BRAND FINANCE FOOD & DRINK 2022,
https://brandirectory.com/download-report/brand-finance-food-and-drink-2022-previe
w.pdf, accessed 3 March 2023
3. Dunckley, M. (2019). Long time between drinks: Coca-Cola wins Pizza Hut deal,
The Sydney Morning Herald,
https://www.smh.com.au/business/companies/long-time-between-drinks-coca-cola-
wins-pizza-hut-deal-20190117-p50rv6.htm, Accessed 7 Mar 2023.
4. GORTON, D. (2020). Comparing Coca-Cola and Pepsi’s Business Models,
https://www.investopedia.com/articles/markets/081415/comparing-cocacola-and-pe
psis-business-models.asp, accessed 7 March 2023
5. Lloyd, A. (2021). Financial treadmill: Aussies wasting $2.4 billion on unused gym
memberships. [online] finder.com.au. Available at:
https://www.finder.com.au/unused-gym-memberships.
6. Moye, J. (2016). Share a Coke: The Groundbreaking Campaign from ‘Down
Under’, www.coca-colacompany.com,
7. Retail World Editor (2018), Fully automated mixed-pallet technology for
Coca-Cola Amatil, Retail World Magazine,
https://retailworldmagazine.com.au/fully-automated-mixed-pallet-technology-for-coc
a-cola-amatil , accessed 5 March 2023
8. www.coca-colacompany.com. (n.d.), Our Company,
https://www.coca-colacompany.com/au/our-company, accessed 6 March 2023
9. www.instagram.com. (n.d.), Instagram,
https://www.instagram.com/cocacolaau/?hl=en
10. Canstar Blue. (2020), Which Soft Drink is Top of the Pops for Aussies?
https://www.canstarblue.com.au/groceries/australia-favourite-soft-drink/, accessed 6
March 2023
11. www.cancer.org.au. (n.d.), 1 in 6 teenage boys consume at least 52 litres of soft
drink each year,
https://www.cancer.org.au/media-releases/2017/1-in-6-teenage-boys-consume-at-le
ast-52-litres-of-soft-drink-each-year, accessed 4 March 2023
12. Kargo Commerce. (n.d.). Press Release: STUDY: Nearly 60% of Gen Zs And
Millennials Have Bought a Product on Social Media Using ‘Buy Now, Pay Later’,
https://kargocommerce.com/resources/press-release-study-nearly-60-of-gen-zs-and
-millennials-have-bought-a-product-on-social-media-using-buy-now-pay-later/#:~:tex
t=63%25%20of%20Millennials%2C%2056%25, accessed 5 March 2023.
13. Poinski, M. (2020), Consumer trends shifting toward health and wellness, ADM
finds. [online] Food Dive,
https://www.fooddive.com/news/consumer-trends-shifting-toward-health-and-wellne
ss-adm-finds/584388/, accessed 6 March 2023).
14. COCA-COLA AMATIL, 2019, Competitors,
https://coca-cola456.weebly.com/competitors.html, accessed 5 March 2023
15. Tahmassebi, J. F., & BaniHani, A. (2020). Impact of soft drinks to health and
economy: a critical review. European archives of paediatric dentistry, 21, 109-117.
https://doi.org/10.1007/s40368-019-00458-0, accessed 3 March 2023.
16. Lacy-Nichols, J., Scrinis, G., & Carey, R. (2020). The evolution of Coca-Cola
Australia’s soft drink reformulation strategy 2003–2017: A thematic analysis of
corporate documents. Food Policy, 90, 101793.
https://doi.org/10.1016/j.foodpol.2019.101793,accessed 4 March 2023.
17. Spice News. (2018). Australians are spending $13.6 billion on healthy eating,
report suggests - Spice News,
https://www.spicenews.com.au/uncategorized/australians-are-spending-13-6-billion-
on-healthy-eating-report-suggests, accessed 5 March 2023.
18. www.euromonitor.com. 2021. Soft drinks in Australia,
https://www.euromonitor.com/soft-drinks-in-australia/report, Accessed 5 March
2023.
https://www.euromonitor.com/australia
19. www.coca-colacompany.com. (n.d.), The Coca-Cola System,
https://www.coca-colacompany.com/au/our-company/about-the-coca-cola-system,
accessed 3 March 2023
20. B&T. (2022). Study: 80% Of Aussies Have Engaged With A Social Media Ad In
The Past 12 Months,
https://www.bandt.com.au/study-80-of-aussies-have-engaged-with-a-social-media-a
d-in-the-past-12-months, accessed 5 March 2023
21. Statista Search Department, (2023), Soft Drinks - Australia,
https://brandirectory.com/rankings/food/, accessed 2 March 2023
22. Ferguson, K. 2018, Children spend more cash on soft drinks than toys,
https://www.dailymail.co.uk/news/article-5395015/Children-spend-cash-soft-drinks-t
oys.html, accessed 7 Mar. 2023
23. Lyons, E. (2021). Coca-Cola Amatil recalls Appletiser amid contamination
concerns. [online] news.com.au. Available at:
https://www.news.com.au/lifestyle/food/food-warnings/cocacola-amatil-recalls-applet
iser-amid-contamination-concerns/news-story/263924cd78fc26bef184ab24891eaee
b
24. Spice News, 2018, Australians are spending $13.6 billion on healthy eating,
report suggests,
https://www.spicenews.com.au/uncategorized/australians-are-spending-13-6-billion-
on-healthy-eating-report-suggests/#:~:text=Australians%20are%20spending%20%2
413.6%20billion%20on%20healthy%20eating%2C%20report%20suggests,
accessed 5 March 2023
25. Statista, 2022, Soft Drinks - Australia | Statista Market Forecast,
https://www.statista.com/outlook/cmo/non-alcoholic-drinks/soft-drinks/australia,
accessed, 5 March 2023
Soft Drink
Loving Teens
Gym
Enthusiasts
Thirsty Aussies
Segment Size 300,000
(Cancer.Org,
2017)
6.2 million
(Lloyd, 2021)
6.5 million
(Australian
Health Survey,
(n.d.)).
Segment
adoption
percentage
52% (Kargo
Commerce,
(n.d.)).
86% (spice
news, 2018)
40% (B&T,
2022)
Purchase
behavior
Purchase
price/year $105 (Ferguson,
2018)
$320 (Spice
News, 2018)
$1000 (Statista,
2022)
Revenue $16 million $1.7 billion $2.6 billion
NOTE: Profit will be same for all segments assuming that the total variable cost
and fixed cost similar. So selecting the highest revenue segment as the most
profitable one.
Even though ‘Thirsty Aussies’ is the most revenue generating segment, it isn’t
identifiable. Moreover, ‘Gym Enthusiasts’ is a segment that hasn’t been explored
by many soft drink brands yet. Therefore, we decided to select ‘Gym
enthusiasts’ as the most attractive segment for Coca Cola.
Profitability Analysis
z5399383 Wenxi Cao
z5429255 Vanshika Bhalla
Z5408640 Digvijay Bamanikar
Coca-Cola’s Strategy to Win
over the Beverage Industry
Industry Analysis & Critical Analysis
Coca-Cola’s Strategy to Win
over the Beverage Industry
Strengths
Opportunities
Weaknesses
Threats
Strong brand BSI: 93.3 (Brand Finance, 2022)
Product = joy and happiness, strong
Brand awareness, Coca Cola is the
most popular soft drink in Australia
Strong distribution channels
One of the largest bottlers and distributors
Effective product offering (Coca-Cola Company, 2022)
Differentiation
Gender sector ( Diet Coke & Coke Zero)
Market prospect
$15.37 billion in 2023 with 3.59% growth
Expand product line
Promote healthier product
Growing health consciousness
First mover
Brand image
Recall for Appletiser in 2021 (Lyons, 2021)
Excessive patulin detected
New entrants
Commoditization of consumer products
More options and substitutes
Marketing Environment Analysis
Competencies
Continuous innovation
Variety of flavor options e.g. Coca Cola
Vanilla, Coca cola frozen (Coca Cola,
(n.d.)).
Creative marketing
Campaigns
‘Share a Coke’ campaign- 250 million
named cans sold (Moye, 2016)
Competencies
Pizza Hut Australia
5 year deal to provide 285
outlets with soft drink
(Dunckley, 2019)
Tommy Hilfiger
‘TommyJeansXCocaCola’(Co
ca Cola Instagram, 2023)
Corporate Partners
Competitors
Biggest competitor is PepsiCo.
Provides a diversified product portfolio
and pricing is based on consumer
demand and demographics which
leads to higher revenue growth
(GORTON, 2020)
Social Australians shifting towards a healthy lifestyle - Coca
Cola no sugar, Coca Cola no sugar frozen
Survey shows 10% Australians like Ginger ale flavor
(Canstar Blue, 2020) - Coca Cola introduced Coke
Ginger
Supporting ‘Sydney World Pride’ with special edition
‘Love Cans’ (Coca Cola Instagram, 2023)
Environment Increased awareness about harm of plastic to the
environment- Introduction of 100 % recycled Coca
Cola bottles (Coca Cola Instagram, 2023)
Technology Increased use of technology in business to improve
efficiency - Amatil introducing fully automated pallet
storage system (Retail World Editor, 2018)
Segmentation for Coca Cola
Name Segmentation
method
Description
1. Soft Drink
Loving Teens
Demographic (age,
gender)
300,000 australian young males (12 - 24 years)
who consume 50 liters of soft drink each year
(Cancer.Org, 2017)
2. Gym
Enthusiasts
Psychographic
(lifestyle,
self-values)
6.2 million australians who have a gym
membership and are looking for a healthy
alternative to sugary soft drinks (Lloyd, 2021)
3. Thirsty Aussies Benefit
Segmentation
25% of Australia’s population (6.5 million) drink
soft drinks to quench their thirst and get enjoyment
(Australian Health Survey, (n.d.))
Objective: To providing varieties of flavors and healthy options to fulfill
the needs of different customer segments
Substantial No, too small Yes, covering 25%
population
Yes, covering 25% population
Identifiable No, overlaps with
segment 3
Yes No, overlaps with segment 1
Reachable Yes (social media,
Television
advertisements)
Yes (Social media, gym
partnerships)
Yes (Social media, Television
advertisements, print media)
Responsive Yes, responds well to
new trends online
(Kargo Commerce,
(n.d.))
Yes, happy to try healthy
alternatives (Poinski,
2020)
Yes, open to try new drinks to
quench thirst (Canstar Blue,
2020)
Profitability
(appendix)
Least profitable Yes, Second most
profitable
Yes. most profitable
To gym enthusiasts who need healthy alternatives to sugary
soft drinks, Coca Cola is a soft drinks brand that gives you soft
drinks that are healthy, full of vitamins and supplements, tasty
and affordable.
Healthy
Unhealthy
High
Price
Low
Price
1. Investment in research and development to
create recipes with nutrients and vitamins
while maintaining taste
2. Provide options of drinks with vitamins and
supplements e.g. vitamin C, Whey protein
3. Create a separate color theme/branding of
healthy options (e.g. Coke Health, CokeVit)
4. Partner with gyms and fitness influencers
5. Partner with sport brands like Nike, Puma
(e.g. CocaColaXNike)
Coca Cola Australia began in 1938 with just one beverage and
now offers 160 drinks ranging from soft drinks, energy drinks
and juices (Coca cola , (n.d.)).
(Coca Cola
Amatil, 2019)
1. Australian Health Survey, (n.d.),The role of beverages in the Australian diet,
http://www.australianbeverages.org/wp-content/uploads/2018/11/The-role-of-bevera
ges-in-the-Australian-diet.compressed.pdf, accessed 5 March 2023
2. Brand Finance, (2022), BRAND FINANCE FOOD & DRINK 2022,
https://brandirectory.com/download-report/brand-finance-food-and-drink-2022-previe
w.pdf, accessed 3 March 2023
3. Dunckley, M. (2019). Long time between drinks: Coca-Cola wins Pizza Hut deal,
The Sydney Morning Herald,
https://www.smh.com.au/business/companies/long-time-between-drinks-coca-cola-
wins-pizza-hut-deal-20190117-p50rv6.htm, Accessed 7 Mar 2023.
4. GORTON, D. (2020). Comparing Coca-Cola and Pepsi’s Business Models,
https://www.investopedia.com/articles/markets/081415/comparing-cocacola-and-pe
psis-business-models.asp, accessed 7 March 2023
5. Lloyd, A. (2021). Financial treadmill: Aussies wasting $2.4 billion on unused gym
memberships. [online] finder.com.au. Available at:
https://www.finder.com.au/unused-gym-memberships.
6. Moye, J. (2016). Share a Coke: The Groundbreaking Campaign from ‘Down
Under’, www.coca-colacompany.com,
7. Retail World Editor (2018), Fully automated mixed-pallet technology for
Coca-Cola Amatil, Retail World Magazine,
https://retailworldmagazine.com.au/fully-automated-mixed-pallet-technology-for-coc
a-cola-amatil , accessed 5 March 2023
8. www.coca-colacompany.com. (n.d.), Our Company,
https://www.coca-colacompany.com/au/our-company, accessed 6 March 2023
9. www.instagram.com. (n.d.), Instagram,
https://www.instagram.com/cocacolaau/?hl=en
10. Canstar Blue. (2020), Which Soft Drink is Top of the Pops for Aussies?
https://www.canstarblue.com.au/groceries/australia-favourite-soft-drink/, accessed 6
March 2023
11. www.cancer.org.au. (n.d.), 1 in 6 teenage boys consume at least 52 litres of soft
drink each year,
https://www.cancer.org.au/media-releases/2017/1-in-6-teenage-boys-consume-at-le
ast-52-litres-of-soft-drink-each-year, accessed 4 March 2023
12. Kargo Commerce. (n.d.). Press Release: STUDY: Nearly 60% of Gen Zs And
Millennials Have Bought a Product on Social Media Using ‘Buy Now, Pay Later’,
https://kargocommerce.com/resources/press-release-study-nearly-60-of-gen-zs-and
-millennials-have-bought-a-product-on-social-media-using-buy-now-pay-later/#:~:tex
t=63%25%20of%20Millennials%2C%2056%25, accessed 5 March 2023.
13. Poinski, M. (2020), Consumer trends shifting toward health and wellness, ADM
finds. [online] Food Dive,
https://www.fooddive.com/news/consumer-trends-shifting-toward-health-and-wellne
ss-adm-finds/584388/, accessed 6 March 2023).
14. COCA-COLA AMATIL, 2019, Competitors,
https://coca-cola456.weebly.com/competitors.html, accessed 5 March 2023
15. Tahmassebi, J. F., & BaniHani, A. (2020). Impact of soft drinks to health and
economy: a critical review. European archives of paediatric dentistry, 21, 109-117.
https://doi.org/10.1007/s40368-019-00458-0, accessed 3 March 2023.
16. Lacy-Nichols, J., Scrinis, G., & Carey, R. (2020). The evolution of Coca-Cola
Australia’s soft drink reformulation strategy 2003–2017: A thematic analysis of
corporate documents. Food Policy, 90, 101793.
https://doi.org/10.1016/j.foodpol.2019.101793,accessed 4 March 2023.
17. Spice News. (2018). Australians are spending $13.6 billion on healthy eating,
report suggests - Spice News,
https://www.spicenews.com.au/uncategorized/australians-are-spending-13-6-billion-
on-healthy-eating-report-suggests, accessed 5 March 2023.
18. www.euromonitor.com. 2021. Soft drinks in Australia,
https://www.euromonitor.com/soft-drinks-in-australia/report, Accessed 5 March
2023.
https://www.euromonitor.com/australia
19. www.coca-colacompany.com. (n.d.), The Coca-Cola System,
https://www.coca-colacompany.com/au/our-company/about-the-coca-cola-system,
accessed 3 March 2023
20. B&T. (2022). Study: 80% Of Aussies Have Engaged With A Social Media Ad In
The Past 12 Months,
https://www.bandt.com.au/study-80-of-aussies-have-engaged-with-a-social-media-a
d-in-the-past-12-months, accessed 5 March 2023
21. Statista Search Department, (2023), Soft Drinks - Australia,
https://brandirectory.com/rankings/food/, accessed 2 March 2023
22. Ferguson, K. 2018, Children spend more cash on soft drinks than toys,
https://www.dailymail.co.uk/news/article-5395015/Children-spend-cash-soft-drinks-t
oys.html, accessed 7 Mar. 2023
23. Lyons, E. (2021). Coca-Cola Amatil recalls Appletiser amid contamination
concerns. [online] news.com.au. Available at:
https://www.news.com.au/lifestyle/food/food-warnings/cocacola-amatil-recalls-applet
iser-amid-contamination-concerns/news-story/263924cd78fc26bef184ab24891eaee
b
24. Spice News, 2018, Australians are spending $13.6 billion on healthy eating,
report suggests,
https://www.spicenews.com.au/uncategorized/australians-are-spending-13-6-billion-
on-healthy-eating-report-suggests/#:~:text=Australians%20are%20spending%20%2
413.6%20billion%20on%20healthy%20eating%2C%20report%20suggests,
accessed 5 March 2023
25. Statista, 2022, Soft Drinks - Australia | Statista Market Forecast,
https://www.statista.com/outlook/cmo/non-alcoholic-drinks/soft-drinks/australia,
accessed, 5 March 2023
Soft Drink
Loving Teens
Gym
Enthusiasts
Thirsty Aussies
Segment Size 300,000
(Cancer.Org,
2017)
6.2 million
(Lloyd, 2021)
6.5 million
(Australian
Health Survey,
(n.d.)).
Segment
adoption
percentage
52% (Kargo
Commerce,
(n.d.)).
86% (spice
news, 2018)
40% (B&T,
2022)
Purchase
behavior
Purchase
price/year $105 (Ferguson,
2018)
$320 (Spice
News, 2018)
$1000 (Statista,
2022)
Revenue $16 million $1.7 billion $2.6 billion
NOTE: Profit will be same for all segments assuming that the total variable cost
and fixed cost similar. So selecting the highest revenue segment as the most
profitable one.
Even though ‘Thirsty Aussies’ is the most revenue generating segment, it isn’t
identifiable. Moreover, ‘Gym Enthusiasts’ is a segment that hasn’t been explored
by many soft drink brands yet. Therefore, we decided to select ‘Gym
enthusiasts’ as the most attractive segment for Coca Cola.
Profitability Analysis
