The Supply Management of the Coca-Cola Company

This article discusses the supply chain management of Coca-Cola Company, including its issues, opportunities, marketing strategies, and goals. It also covers the company's vision and mission statements, its target market, and its alliance brands. The article provides insights into the company's global influence, brand equity, and customer loyalty.

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The Supply Management of the Coca-Cola Company
Name
Institution
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The Coca-Cola Company is a publicly owned company since it is the property by
thousands of people who are referred to as the shareholders and investors whereby they buy the
company’s shares from the New York Stock Exchange market where they are traded
(Sauerbronn et al., 2018). When it comes to the supply chain management of the Coca-Cola
Company’s stock, the company provides its annual stock for listing on the Russell 100 index, the
NYSE and the S&P 500 index. Referring to the annual report that was released by the Coca-Cola
supply chain management, the company has been able to conquer markets of more than 200
countries (Griffiths, 2018). In fact, the figure shows even more countries than we have in the list
of the atlas. According to the company’s annual report it is also realized that there are over $50
billion beverage and soft drinks that are consumed daily in the world and out of that figure, the
Coca-Cola supply chain management branded and licensed products total to more than $1.5
billion products more than any other company that is involved in manufacturing selling and
marketing of the soft drinks and beverages in the world today (Kraus, 2018).
Supply Chain Issues Faced by the Company
The Coca-Cola supply chain management has various threats faced the entire company
and they include the latest rise in future entrepreneurs and competitors in the beverage industry
producing great brands as the same as the Coca-Cola supply chain management and the lack of
enough raw material and resource supplies. One of its longest competitors, Pepsi Cola, is also a
significant threat since it is also engaging in high management uprisings and keen on majoring in
all the Coca-Cola supply chain management weaknesses (Kohler, 2016). The threats are due to
weakness like the low diversification of the products manufactured by the corporation, water
management strategies and the lack of healthy beverages and soft drinks.

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The opportunities that are enjoyed by the firm include selling advantages since its brand
is known by more than 94% of the world’s population today (Sauerbronn et al., 2018). The other
main opportunities of the Coca-Cola supply chain management include the packaging of the
drinking water, the significant improvements of the supply chains in the company’s
management, the less marketing of its already selling brands, and a lot of diversification in the
industry and the developing of different nations today (Griffiths, 2018). Regarding to the SWOT
analysis of the company, the Coca-Cola supply chain management company has a lot of strength
when it comes to the vast global influence, the company valuation, significant brand equity,
enhanced fantastic Strategies, a well-connected marketing and distribution network, the
improved customer loyalty and the large market share that is possessed by the company.
When we focus on company’s supply chain management problems analysis, there are lot
of many issues to discuss under this section. The company is involved in the retailing of
beverages, manufacturing, and marketing of non-alcoholic beverages. The company is based in
more than two hundred countries worldwide and it offers more than 500 brands to serve a lot of
people worldwide. The company is well known for its flagship of products. The company is also
well known for the way it handles supply chain. The company’s supply chain plays a vital role in
the company by ensuring that the company minimizes impacts in the environment by providing a
sustainable value chain in its processes. The company produces more than 2 billion units
annually across all its territories worldwide.
The supply chain is responsible for the planning, manufacturing, procurements, and
engineering, sustainability also plays a central role in achieving this by making sure that
environmental impacts are minimized and there is sustainability in their value chain. The
expertise of the staff members and their devotion to achieving continuous investment and quality

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in the advanced technologies is another issue that the company faces (Bowers, Petrie, and
Holcomb, 2017). The mission of the company is to become the leading company in achieving its
function in terms of cost efficiency and customer service. To achieve a lot of efforts are put to
ensure that people always engaged, reducing costs to build the best customer service and
excelling in sustainability.
The Coca-Cola Supply Chain Graphic
The company’s supply chain graphic is just similar to the supply chain of other
companies because it consists of distributors, retailers, manufacturers and end users each of them
playing their respective roles. Because of the company’s products lines spread throughout the
world and the vast nature of its operations. This project shall entail a brief overview of the
company’s supply chain. The company strictly follows a strict system of supply management
that is only involved in the production of non-alcoholic beverages which are then sold all over
the world to different bottlers who own a certain territory. The anchor of the company is located
in North America and it is named as Coca-Cola Refreshments. Other bottlers from different
territories who hold contracts with the company produce the final products through in bottles and
cans by combining the concentrates with filter waters and sweeteners (Tang, 2018). The
respective bottlers after obtaining the final products then sell and distribute and merchandise it to
vending machines, retail stores, food services distributors and restraints.
The Coca-Cola supply chain management relies on the 5P’s in its marketing strategies
with the most current marketing strategy been the product orientation (Sauerbronn et al., 2018).
In this, the company analyzes the promotions necessary, the sales, the distribution and the prices
of their goods and makes a relevant marketing strategy (Kohler, 2016). I believe that product
orientation is the most efficient approach in the commercialization of Coca-Cola supply chain

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management brands since it involves a lot of long-term customer relationship which is used by
the company hence it enables the company to create a lot of loyal customers.
The company relies on the SMART objectives by making sure that they are specific and
precise in their achievements, they quantify and measure what they objectives stand for, they are
realistic regarding the resource combination, and they are times when it comes to the making the
right achievements as per their objectives. According to the various marketing research by the
company, the company is faced with a public relations problem of the increase in obesity and
sugary health effects (Kohler, 2016). In this public relations scenario, the company is due to
initiate the anti-sugary campaigns by making sure that half the results of obesity are minimized.
In this case, the company came up with the coke zero brands which are a brand that is majorly
manufactured for the people who are prone to the effects of sugary products and obesity (Kraus,
2018). One of the major campaigns, however, that is designed to improve on this public relations
situation is the ‘Coming together’ in which the company campaigns for the treatment of its
products just like any other calories.
The company has relied on advertisements and social media as the primary platform of
advertising its products and brands. In their commitment, the company is involved in discovering
what makes people happy all over the world by promoting initiatives through its ambassadors
who travel all over the world recording posts and promotional videos, tweets, and marketing
pictures (Kohler, 2016). All over the world, the company has played a great role in connecting
happiness and the wellness of living in the globe.
On the other hand, the Coca-Cola supply chain management vision statement the
company is determined on achieving the 6 P's of business, the partners, the planet, the profit, the
productivity the portfolio and the people. In achieving these, the company has designed

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developments of the working environment in the entire company to make sure that every
employee produces his or her best by providing them with the conductive networks (Kohler,
2016). The company’s vision statement also gives us the best framework for which any business
can rely on when it comes to the descriptions and offers made on the market and any operational
opportunities in business (Higbie et al., 2018). The two statements also provide us with the direct
operations of the Coca-Cola supply chain management including its organizational structure and
the accomplishments that the set-aside goals focus on in a given fiscal year.
The Coca-Cola supply chain management makes its marketing operations through two
orientations, the product orientation, and the market direction. The product direction is whereby
the primary focus of marketing is rendered on the right processes of the product regardless of the
manufacturing procedures incurred (Schneider, 2016). On the other hand, the marketing
orientation is whereby the Coca-Cola supply chain management analyzes and focuses majorly on
the reflections and the feedbacks that make the best outcome of customer satisfaction through
identifying the necessary reviews on consumer needs (Bryant, 2015). All these marketing
operations and orientations are reflected in the company’s vision and mission statements.
The Coca-Cola supply chain management brands of soft drinks are generally in a stiff
competition in terms of the positioning of their strategies and also the competitive aspects held
by the brands. The Coca-Cola supply chain management brand specifically targets people of
various characteristics with specific drinks targeting customers of various lifestyles, age, and
ethnic groups (Du, 2016). The Coca-Cola supply chain management brand, therefore, does not
have a specific group of the target but generally targets people based on the developments that
are suitable for their strategy. The brand is addressed to everyone with most customers been
between 12-30 years of age. According to the Company, the brand is for every potential

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customer regardless of the age or gender segments. The marketing effort done by Coca-Cola
supply chain management, on the other hand, specifies a different target group forms the general
one that we see in the company’s supply chain management. The brand targets various groups of
population with specific characteristics (Ghosh & Shah, 2015). Indeed, the brand is targeted to
some specific segmentation that is identified and chosen for specific lifestyles and other
characteristics.
The Coca-Cola Supply Chain Management
The brands have positioned themselves strategically in their target markets. The supply
chain is strategically positioned in the soft drink market by adapting to every countries culture in
the world so as to make sure that it comes close to their customer as possible (Du, 2016). The
brand adopted the “think global, act local” principle for the sake of making sure that they adapt
to the local markets for the sake of satisfying what the local customers need (Schneider, 2016).
The Coca-Cola supply chain management has therefore been at the forefront in developing a
strategy that suits the consumers hence the loyalty that it has received (Du, 2016). Due to its
principle and direct relationship to its slogan, the brand has been associated with joy and
happiness a strategy that has served well as it is now related to emotions. The mentioning of the
brand is associated with entertainment and fun which is a key positioning in the market.
The Coca-Cola supply chain management brand is on the hand a multi-segmented kind of
brand and through the same strategy; it has been able to position itself as a well-presented brand
in the market (Dudovskiy, 2016). The brand has a specific service in packaging that makes it
unique. The brand has also positioned itself as a soft drink that has a good taste and also one that
has a refreshing and pleasant impact after it is taken. Due to its high sugar content, the brand is
not positioned for people with health concerns (Linnander et al., 2017). Due to this, it has

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however designed an optional diet Coca-Cola supply chain management that has less sugar,
something that shows its great acceptance and segmented positioning in the market.
The goals of the Coca-Cola supply chain management include giving back to the
community far much than what they take from the same community (Sauerbronn et al., 2018).
The main aims that have over the years been set aside by the Coca-Cola supply chain
management have been based on women, the well-being of the entire society and water. The
company is focused on making sure that in every fiscal year they have empowered at least five
out of every twenty women in the world to become entrepreneurs (Gattorna, 2017). In the case of
water, the company has over the years expressed its great understanding of the importance of
water in the entire worldwide and makes sure that it is involved in replenishing water in the
process of manufacturing its beverages (Kraus, 2018). The company is, on the other hand,
focused on maintaining their goal of having every Coca-Cola supply chain management
consumer live healthily and happily through providing them with the best choices for a healthy
lifestyle.
One of the major alliance brands that the company has been able to create is the one that
they collaborated with the Intercontinental Hotels Group whereby together with this leading
company in the hotel sector, they were able to create a new beverage supplied to 3,200 hotels
that are linked to the Intercontinental Hotel Groups have been able to provide to its guests
(Kohler, 2016). Some of the trends that are expected to have an impact on the Coca-Cola supply
chain management and its brands include the aging and the important youth market. It is
commonly known as the ‘They expect all of us to step up’ trend whereby the Coca-Cola supply
chain management is focused on making sure that it is represented by over 75% of the
percentage of youth by the year 2020.

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The company is concentrated on the measures of making sure that the impact of the youth
bulge is felt all over, and the spread of the brand and this will be a significant slowdown since
there are many young people who are focused on making sure that they have stepped up and are
making a difference in the world (Griffiths, 2018). This will have a significant impact on the
buying process and patterns since these youths will be willing to step up in any way for the
change. Another major trend will be the brand loyalty and the impacts of the love of the Coca-
Cola supply chain management brand (Kohler, 2016). With the increase of the young
entrepreneurs especially conquering the media marketing and advertising, the company now
faces a lot of competition in shaping up the marketing strategies in their brands considering the
wildness of the social media in the coming years. This will have an impact on the company’s
marketing operations, and the company will be in need of loyal, vigilant and influential
consumers to spearhead their operations.
The company’s internal business environment is contained majorly in its board of
management whereby it makes sure that its brand is produced through efficient processes of
production, good communication in production and enhanced organizational skills to manage all
other factors that are contained in the internal environment. In this internal environment, the
company assesses its operational strategies and makes responses to every efficient cause of
action they take during the production processes.
Improvement Programs
The main improvement program that the company needs is the improvement of the
brands and other service deliveries more so in their new brands. One of the differences is that
Coca-Cola supply chain management brand is sweeter than the other brands. Coca-Cola supply
chain management has a citrusy flavor and a raisiny-vanilla taste. Secondly, Coca-Cola supply

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chain management has an appealing and modern image while coke emphasis on originality so as
to keep their customers. The Coke brand is represented through the vintage adverts that are based
on originality of the brand so as to create loyalty from every customer (Chalikias & Skordoulis,
2017). The Coca-Cola supply chain management brand, on the other hand, is advertised through
modern promotions that have been advocated through modern advertisements ambassadors of
today’s generations. The nutritional content of the two brands is also different (Chalikias &
Skordoulis, 2017). Coke contains less sugar than the Coca-Cola supply chain management brand
and therefore they are special in their own perspectives.
The diet coke has over the years been repackaged into cans that provide more
contemporary feel especially with the sleek cans that are loved by the Coca-Cola supply chain
management fans (Moye, 2018). The sleek cans packaging have a refreshed visual identity that
makes it to a soft drink that lives up to the various flavors provided. The cans are anchored by a
silver color that is a brand iconic type and one that gives it a new feel-and-look with the flavors
been represented by some bold colors. The typography that is refined simultaneously from the
diet coke preserves its heritage and also makes it progress to new markets in a dynamic manner
(Chalikias & Skordoulis, 2017). The cans are also presented with a red visualized brand that
generally reflects the innovation and the continual movement and confidence of its impact on the
market.
The diet coke is a sugar-free and also a calorie-free soft drink that is referred to as a
Coca-Cola supply chain management light in most markets. The drinks first introduction was in
1982 in the United States of America (Moye, 2018). It was generally the first new brand that
used the Coca-Cola supply chain management trademark and today, the brand can boast has been
the most successful and also the largest in the entire company. The diet coke is known in more

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than 150 markets today. Generally, this means that the brand is one of the most popular brands in
the world. Diet coke is most common and popular in the population that needs to reduce their
calorie and sugar levels. The diet coke is common among these people due to the fact that they
do not have a high level of sugar in their content but instead, they contain artificial types of
sweeteners that include saccharin and cyclamate (Kumar, Teichman, and Timpernagel, 2012).
Generally, the diet coke contains carbonated water, natural or sometimes artificial sweeteners,
flavors, food additives, and colors. They significantly have no nutrition significance or any kind
of calories (Moye, 2018). Unlike other soft drinks, the diet coke contains artificial sweeteners but
has a low level of calories and no sugars. Its introduction was based on the purposes of those
patients with diabetes but it has over the years been rebranded into a drink that those people with
the specific needs can rely on.
One of the advantages of the diet coke is that it is a reliable soft drink due to its few
levels of calories which are brought about by the lack of sugars (Renee, 2018). Unlike any other
regular versions of coke or other soft drinks, the diet coke has reduced carbohydrate content. The
beverage is special and advantageous due to its content of artificial sugar substitutes and other
natural sweeteners that are not found in other soft drinks (Renee, 2018). The drink also contains
a low level of carbohydrates than the regular coke drinks which makes it more advantageous and
common among most people. With the carbohydrate content generally equivalent to a teaspoon
unlike ten teaspoons in regular soda, the diet coke is necessary for most health purposes. The
lack of carbs in the diet coke is significant and significant since it helps in minimizing and
controlling the blood glucose in human bodies (Kumar et al., 2012). Unlike other soft drinks that
use the artificial sweeteners, the diet coke relies on the same artificial sweeteners but they do not

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affect the levels of blood sugar like these other soft drinks. Drinking the diet coke also helps in
saving calories.
The supply Chain Dynamic Alignment Model
The company’s supply chain is divided into different levels and this analysis report
focuses mainly on downstream activities and partnerships of Coca-Cola bottlers with other
different bottlers, channels, and distributors to reach the retailers. Upstream Activities of the
company are only limited to the production and manufacturing of the concentrates only. The
company holds its manufacturing formula as a secret so information regarding the whole
manufacturing and production of concentrates is not disclosed. Thus there is little information on
the cost of supplies.
While the downstream activities of the company’s focus on its franchised distribution
system where the company only produces the non-alcoholic beverages which are sold to the
various bottlers who own exclusive territories throughout the world. Despite having its main
anchor bottle which is located in North America, it contains minor shares in its other largest
franchise enterprises such as Coca-cola FEMSA, Coca-Cola Amatil and many other franchises.
The sectors are allowed to enhance their drinks by sweetening them as per the tastes of the
locals. The company clearly develops products and produces their products depending on the
markets.
The company’s products are of a commoditized nature thus the company follows a
system of distribution that is intensive whereby the company partners with the local bottlers
operating in different territories and countries. These companies have rights to distribution
within their respective distributional and geographical areas. The company set up operational
procedures and guidelines to do business in terms of query management and customer

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relationship and these bottles have the freedom to develop other SOPs in terms of fleet
management, delivery and developing credit lines. To determine simply the overview of how the
supply chain of the company works a review of channels flow will enhance the understanding of
how the supply chain works.

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