Today in our session we looked at CSFs for the Coca-Cola Company and placed them in order of their importance. Together we recognised the relationships between the organisation and the different markets in the six market model; we recognised that relationships with multiple groups need to be managed to achieve single CSFs.
The CSF’s we have identified, and they relationships they would have to maintain in order for them to be effective are:
1. Having a stronghold on the market – Coca-Cola would have to have relationships with the customer, referral and influence markets in order to keep their position within the market. The company can keep customers and gain them by having a good relationship with their referral market that will help the company build new customer relationships.
2. Being culturally aware –Good relationships with the customer markets to understand and know what angle to market their product from. A good relationship with the internal market to make sure they can satisfy their employees across all cultures. With their supplier and alliance market to ensure they were able to gain the right materials needed for their production.
3. Being environmentally friendly – It is essential that Coca-Cola adhere to their customer’s needs to maintain a good relationship. A good relationship with suppliers is imperative to ensure the products they receive to meet their customer’s eco-friendly requirements. Having good relationships with recruitment markets helps attract new employees.
4. Helping local economies – Through good relationships with recruitment markets and influence markets, Coca-Cola can provide jobs to help local economies. Good relationships are needed with supplier and alliance markets in order to buy building materials from different countries to support their economies.
5. Using Advanced Technology- It is essiential that they have a good relationship with their customer market. By using advanced technology this allows them to create new products designed from customer research which could potentially bring in new customers and keep existing customers happy. E.g. PET bottle
6. Social Media – Having good relationships with Customer Markets allows Coca-Cola to keep their customers and potential customers up to date with current projects and the latest products they have to offer.
In preparation for next week we are going to observe different info graphics and decide on designs that we want to incorporate into our info graphic
In today’s session we discussed our findings regarding our individual research based on the TOWS matrix of Coca-Cola. We agreed how these points would fit into the matrix and whether or not the Critical Success Factor’s (CSF’s) were relevant as well as coming up with new CSF’s to include in the TOWS matrix.
The CSF’s we agreed upon included things such as:
- By having a strong market hold (Strength), Coca-Cola are able to keep on top of the competition, Pepsi, (Threat) by buying out smaller brands across the competitive market such as Innocent Smoothies. http://www.theguardian.com/business/2013/feb/22/coca-cola-full-control-innocent
- Customers are becoming more environmentally conscious (Threat), in order to keep their customers loyal Coca-Cola are funding projects run by the WWF to help tackle global environmental issues (Strength). http://www.coca-cola.co.uk/environment/arctic-home/protecting-the-polar-bear.html
- Coca-Cola faces a lot of bad publicity (Weakness) in respect of their production methods in different countries. In order to override this they have been able to create and support jobs in developing countries that enhance local economies (Threat). http://www.atimes.com/atimes/South_Asia/FB24Df04.html /http://www.coca-colacompany.com/stories/economic-opportunity#TCCC
- As there is a growing beverage consumption in emerging markets (Opportunity) Coca-Cola is able to capitalise on this over their competitors as they have such a strong hold on the market (Strength). http://assets.coca-colacompany.com/5e/e6/0e30a9d34a82b4febb15b91f61a6/2009_annual_review_Year_in_Review.pdf
- Coca-Cola is able to use social media (Opportunity) to make their consumers aware of the projects they are undertaking to support global environmental issues (Strength). http://www.coca-cola.co.uk/environment/arctic-home/protecting-the-polar-bear.html
In preparation for our next session we are going to agree on our strongest CSF’s to be included in the info graphic and ensure we have included all sources to back up our TOWS matrix.
During today’s workshop we analysed all of our Macro and Micro research, which we’d delegated between ourselves during last week’s session.
Cultural and Public
Customers becoming more health conscious has led to the company having to branch out to making healthier drinks options such as Diet Coke and Coca-Cola Zero to satisfy the customer’s needs.
Coca-Cola’s main competitor is Pepsi; there has been a rivalry battle between the two companies for over a century. Some of Coca-Cola’s other competitors are; Red Bull and Soda Stream.
Coca-Cola bought a stake within Innocent Smoothies in 2009 to compete with Tropicana, they now own over 90% of the business. Coca-Cola also described their soft drinks as sparkling instead of carbonated to denote healthier connotations to compete within their competitive market.
Coca-Cola has used different packaging and flavours to target all consumers e.g. their standard sized bottle is usually aimed at children in school or lower class people, as they are inexpensive.
Kerala state in India showed the Coca-Cola brand as very ethically uncaring. Coca-Cola had been extracting 510,000 litres of water everyday, meaning that local villages were going without.
Coca-Cola has used technology to produce the first recyclable bottle made entirely from plants called the ‘PlantBottle’, reducing their dependence of fossil fuels and other non-renewable resources.
Coca-Cola reward their suppliers who help their company cut their carbon footprint including; reducing packaging weight, using less power and increasing efficiency in logistics.
Coca-cola has a positive effect on the global economy by creating 92, 400 jobs worldwide and supporting 10 times that.
Coca-cola has to do a lot to combat the fact government’s worldwide target them for causing obesity and other health problems.
For next week, the main tasks we will focus on are, individually researching different infographic designs and collectively research TOWS and analyse the critical success factors.