Beverages and Supply Chain: Marketing Analysis of Coca-Cola UK - RAU

This report provides a comprehensive analysis of Coca-Cola UK's beverage supply chain, marketing strategies, and associated sustainability issues. It begins with a company profile, highlighting Coca-Cola's market presence and operational structure in the UK. The report then delves into the specifics of Coca-Cola's supply chain, detailing both information and material flow, and examining the various stages from raw material sourcing to customer consumption and recycling. Key drivers of the supply chain, such as information management, transportation, and sourcing strategies, are discussed. A SWOT analysis identifies the company's strengths, weaknesses, opportunities, and threats across primary production, processing, and distribution. Finally, the report addresses sustainability concerns within the supply chain and offers recommendations for improvement. This document is available on Desklib, a platform offering a wide range of study tools and solved assignments for students.

Running head: BEVERAGES AND SUPPLY CHAIN
Marketing of Coca-Cola, UK
Name of the student:
Name of the university:
Author note:

1
BEVERAGES AND SUPPLY CHAIN
Table of contents
Introduction................................................................................................................................2
Company profile.........................................................................................................................2
Supply chain of Coca-Cola........................................................................................................3
SWOT analysis...........................................................................................................................8
Sustainability issues in supply chain management..................................................................12
Recommendations....................................................................................................................14
References................................................................................................................................18
Bibliography.............................................................................................................................19

2
BEVERAGES AND SUPPLY CHAIN
Introduction
Supply chain management is the act of monitoring and regulating the flow of goods,
storage of the raw materials, dynamics of operations and transmission of the finished
products to the appropriate destination. This management involves the use of effective
channels for establishing contact with the clients and the customers regarding the orders.
Technology upgrades the standards and quality of the supply chain network, enabling
companies and organizations to enjoy competitive advantage over the contemporary brands
(Baldwin & Lopez‐Gonzalez, 2015). This assignment takes the case of Coca-Cola for
shedding light into the dynamics of supply chain management. Within this, the focus would
be on the sustainability issues, which stalls the productivity.
Company profile
Founded in 1886, Coca-Cola has emerged as a popular brand among the customers.
As a matter of specification, the brand deals in non-alcoholic carbonated soft drinks, that is
coke. Different kinds of flavours influence the purchasing power of the customers. Coca-Cola
Britain is entrusted with the responsibility to regulate the operations of 20 brands and the
production of 80 drinks of various flavours. Presence of 134 skilled and efficient workers
helps in conducting the marketing operations in an efficient and effective manner. In case of
Coca-Cola European Partners (CCEP), the drinks are prepared and distributed in the
supermarkets and retail outlets. Hard efforts of 4000 people helps in maintaining the
efficiency in the operations of six manufacturing sites all over the country (Coca-cola.co.uk,
2019).
The company envisions possessing highly effective workplace, transforming the
standards of living of the communities. For this, the mission is to inspire and cherish the
moments of happiness in case of the clients and the customers through the expose of

3
BEVERAGES AND SUPPLY CHAIN
optimistic approach to their needs (Coca-cola.co.uk, 2019). In doing this, the employees bear
in mind the core values, which are leadership, collaboration, integrity, accountability,
passion, diversity and quality.
Figure 1: Market value of soft drinks in UK from 2013-2018
(Source: Coca-cola.co.uk, 2019)
The above diagram depicts the market value of the soft drinks in UK market from
2013-2018. In 2017, the market value was approximately 16.9 million euros. Innovation in
the carbonated flavours increases the market value and experiences for Coca-Cola every year.
Advent of sugar tax has resulted in noticeable decline in the level of consumption. This adds
ambiguity into the future of the soft drink consumption. Sky rising retail prices have
adversely influenced the purchasing power of the clients and the customers.
Supply chain of Coca-Cola
The ingredients are assembled for the production of the drinks. The finished products
are packed and transferred to the manufacturers, who distribute them to the sellers. Once the
seller receives the products, storage is conducted before it is sold to the customers (Coca-

4
BEVERAGES AND SUPPLY CHAIN
cola.co.uk, 2019). After usage by the customers, the bottles are recycled for providing the
communities with the basic needs of survival.
Figure 2: Supply chain of Coca-Cola
(Source: Coca-cola.co.uk, 2019)
Delving deep into the supply chain process, there are two components: information
flow and material flow. Information flow is between the suppliers, manufacturers,
assemblers, retailers and customers. Material flow deals with the supplies, production and
deliveries. The process of information flow is as follows:
Figure 3: Information flow of supply chain in Coca-Cola

5
BEVERAGES AND SUPPLY CHAIN
(Source: Coca-cola.co.uk, 2019)
Information is transferred between the suppliers, manufacturers, assemblers, retailers
and customers regarding the production process. This conversation clarifies the doubts
regarding the current status of orders, schedules and forecasts regarding the products and
services. On the other hand, the process of material flow is:
Figure 4: Material flow of Coca-Cola in the supply chain
(Source: Coca-cola.co.uk, 2019)
Material flow involves transmission of information to the clients regarding the
supplies, production and delivery of the drinks.
Supply chain stages
The stages of supply chain process in Coca-Cola are customers, retailers,
wholesalers/distributors, manufacturers/plants and components/raw materials. Inventory and
warehouse systems are important in terms of making estimates about the progress of
production through efficient channels. Along with this, warehouse systems also help in
applying the dynamic inventory models for enhancing the production quality. One of the

6
BEVERAGES AND SUPPLY CHAIN
other uses of the warehouse systems in the workplace of Coca-Cola is determination of the
order quantities, which helps in answering the queries of the clients regarding the delivery of
the orders. Within this, special care is taken of the safety of the stocks (Coca-cola.co.uk,
2019).
As a matter of specification, the supply chain management of Coca-Cola is comprised
of upstream and downstream activities. Upstream activities include the manufacturing of
concentrates. As a matter of specification, upstream activities initiates through the
assemblage of the raw ingredients from the farms and the plants. The actual formula of the
syrup and the other ingredients are kept confidential, which adds ambiguity over its supply
and the expenses behind it. After this, the actual manufacturing process starts, which is
initiates the downstream activities. Once the drinks are manufactured, they are sent to the
warehouse, from where they are distributed to the vendors and customers. As a sequential
step, the drinks are consumed. One of the positive aspects is the collection of the wastes and
recycling for reducing the environmental pollutions. This approach develops community
wellbeing, enhancing the brand image of Coca-Cola (Coca-cola.co.uk, 2019).
The processes in the downstream activities are reversible. Logistic operations in the
process is indicative of automation, which helps the personnel in averting delays in the
supplying the orders at the right time and place.
Drivers of supply chain in Coca-Cola
Information is one of the primary aspects for maintaining the balance between the
operations. Information model is used by the managers of Coca-Cola for involving the other
members in the process of achieving effective solutions for the issues. Social media helps the
managers in establishing contacts with the external clients, which helps in adding innovation
into the supply chain network. Verification of the information is crucial in terms of averting

7
BEVERAGES AND SUPPLY CHAIN
the instances of leakages in the confidential codes and data (Coca-cola.co.uk, 2019). Herein
lays the appropriateness of the security cookies and policies. Meetings are conducted by the
managers of Coca-Cola, involving the stakeholders and shareholders. The meetings project
collaborative output in terms of enhancing the productivity. The aspect of social media
marketing relates with “paperless information flow”. Typical example of this is the electronic
pick slip reports for the warehouse or transportation. Accuracy is crucial within this slip for
getting deliveries properly. Application of record keeping policies in the slips is a wise step
for Coca-Cola in terms of averting the situations of inadequate resources at the time of
delivering the orders. Usage of SAP ERP software helps in extracting relevant information
from the field surveys (Coca-cola.co.uk, 2019).
For making the supplies, Coca-Cola makes use of high quality and flexible transports.
Before loading the bottled drinks, verification is conducted for assessing its appropriateness
in terms of delivering the products at the right place. Within this, special care of taken
towards maintaining the quality of the drink until it reaches the customers. For this, highways
are chosen in terms of avoiding the hassles of the bumpers of the ordinary roads. Joint
ventures with the international airports help in importing and exporting the goods from the
neighbouring countries. Ship cargoes are one of the other means for exporting the drinks to
the other countries.
Sourcing is one of the other aspects, which enhances the supply chain network of
Coca-Cola. The bottling operations are outsourced. Options are provided to the suppliers
regarding the packaging and labelling of the bottles (Coca-cola.co.uk, 2019). For this,
offshore management is conducted by the managers, which helps in gaining an insight into
the prospective clients for increasing the sales revenue and profit margin. Most of the supply
chain activities is handled by the third parties, which involves verification through security
cookies, software and policies. Along with this, pricing is one of the other drivers of supply

8
BEVERAGES AND SUPPLY CHAIN
chain in the workplace of Coca-Cola. As the competition is intensified in the soft drinks
industry, price attained a crucial position in terms of securing the market share and retaining
the customers.
SWOT analysis
Primary production
Strengths
 Skilled and efficient workers
 Natural ingredients from the farms
 Various flavours
Weakness
 Controversies regarding the use of
vegetable oil in the drinks
 Absence of the ingredients on the
packing labels
 Restrictions regarding access to the
formulas of the ingredients
Opportunities
 Use of stimulants in the formula for
preparing the drinks
Threats
 Incorrect formula for preparing the
syrups
 Lack of proper equipment for
preparing the drinks
Hard efforts of the skilled and efficient workers results in the production of high
quality drinks. Usage of natural ingredients from the farms and various products offers choice
to the customers regarding enhancing their purchasing power. Controversies in the use of the
ingredients aggravate the complexities of the Coca Cola personnel in terms of catering to the
specific needs, demands and requirements of the clients and the customers. Not displaying
the ingredients in the labels for packaging is a conspiracy with the business operations (Coca-
cola.co.uk, 2019). Moreover, it is interplay with the purchasing power of the customers. Not

9
BEVERAGES AND SUPPLY CHAIN
all of the manufacturers have the access to the formulas of preparing the syrups and the
drinks.
Using stimulants in the manufacturing process is an initiative towards catering to the
health needs of the customers belonging to the old age. However, using incorrect formulas
worsen the health condition. Lack of proper equipment is an addition to the issues in the
production process.
Processing
Strengths
 Monitoring and regulation
 Quality control and assurance
 Technological assistance for
packaging
 Water treatment for preventing the
cans from accumulating germs and
bacteria
Weakness
 Lack of efficient software
 Absence of security cookies and
policies
 Inspection of the systems and
software
 Proper regulation and control of
the water treatment devices
Opportunities
 Regular meetings
 Hiring foreign quality control
experts
 Preparing budgets for the water
treatment and quality control
devices
 Market research
Threats
 Not involving the stakeholders and
shareholders in the meetings
 Negligence in maintaining the
systems and software

10
BEVERAGES AND SUPPLY CHAIN
Monitoring and regulating is one of the primary strengths of Coco-cola. Hiring
experts from foreign helps in upgrading the standards and quality of the processing of drinks
(Coca-cola.co.uk, 2019). Conducting lab tests of the produced drinks helps the managers in
averting the instances of substitute products, which contradicts the aspect of possessing
quality and branded products in case of the customers. Water treatment for the processed
drinks removes the bacteria and germs, adding to its quality. Preparing budgets prove
assistance for the personnel in terms of gaining an insight into the expenses, which they need
to bear for carrying out the activities. On the contrary, lack of efficient software stalls the
process of quality control and monitoring the processing of the drinks. Along with this,
absence of security cookies and policies compels the personnel to encounter leakage of the
confidential data.
Not involving the stakeholders and shareholders in the meetings results in the
development of ineffective policies and practices fir manufacturing the bottled drinks (Coca-
cola.co.uk, 2019). Along with this, lackadaisical approach in management of the systems and
software is indicative of disruptions within the production process. This negligence
aggravates the complexities towards performing the tasks in an efficient and effective
manner.
Distribution
Strengths
 Flexible modes of transport
 GPRS sensors for tracking whether
the orders are going in the right place
 Stable relation with the suppliers
Weakness
 Lack of proper planning in terms of
the promotional schemes
 Absence of mapping
 Non-compliance to the franchise
rules and regulations

11
BEVERAGES AND SUPPLY CHAIN
Opportunities
 Segmenting the orders according to
the geography
Threats
 Non-compliance and misutilization
to the franchise rules and
regulations
Using flexible modes of transport helps Coca-Cola in distributing the drinks to the
right place. Installation of GPRS in the transports is assistance in terms of regulating the
distributions on duty. Stable relationship with the suppliers is productive for getting the
supply of raw materials as per the instructions (Coca-cola.co.uk, 2019). On the contrary, lack
of proper planning towards the promotional schemes is a weakness in terms of advertising the
drinks. Not conducting journey mapping would compel the personnel to encounter difficulties
in developing strategies towards enhancing the standards and quality of distribution facilities.
Segmenting the orders according to the geographical proximity would be beneficial in terms
of avoiding unnecessary rides in case of the trucks. Within this, non-compliance to the
franchise rules and regulations would compel the clients to encounter delays in receiving the
orders properly.
Retail
Strengths
 Flexible working staffs
Weakness
 Lack of consciousness towards close
proximity to the customers
Opportunities
 Online retail stores
 Extra-curricular activities
Threats
 Lackadaisical approach towards
proper maintenance of the stores
Flexible working shifts are one of the greatest strengths of Coca-Cola in terms of
catering to the individual needs of the employees. This flexibility is assistance in terms of
unleashing the talents of the employees. On the contrary, lack of consciousness towards the