1 | P a g e

PROJECT REPORT

A Study on the Coca-Cola Company

Business Environment

Of

Coca-Cola

2 | P a g e

LETTER OF TRANSMITTAL:

Date: 11th August 2014

Asheka Mahboob

Lecturer,

BRAC Business School,

BRAC University

Subject: Submission of term paper on “Coca Cola”

Dear Madam,

We have prepared our final term paper of BUS-203 course on “Coca Cola” a beverage company.

Which we are submitting along with this letter. It was an energizing experience working on

management activity and dealing with corporate personnel. We are confident that, this term paper

will help you to understand the Business environment of “Coca Cola”. We have tried our best to

follow your guidelines in preparing this paper. We have presented what we do believe to be most

important information to make this term paper as specific & coherent as possible.

We expect that this report will fulfill your requirements. Thank you for your kind consideration

and guidance. We hope our effort would satisfy you.

Sincerely Yours,

MD. Amirul Islam Lisan

MD. Istiyak Hossain

MD. Ruhul Amin

MD. Fuad Hasan

MD. Atiq Reza

3 | P a g e

ACKNOWLEDGEMENT

Firstly, we would like to thank Almighty Allah who provided us knowledge, energy & skills to get

opportunities & to increase our knowledge & experience by completing this project.

Secondly, we especially thank our Business Environment Course Instructor Mrs. Aseka Mahboob,

who guided us in every steps & aspects of this report so that we can complete it successfully.

And we are thankful to our classmates and friends who always supported and helped in finding the

information.

Finally, we would like to thank our entire group who gave their time, and effort to make the project

paper finish successfully.

4 | P a g e

EXECUTIVE SUMMARY

The Coca-Cola Company was first established in 1886 by Dr. John Stitch Pemberton. Today the

company is the world’s leading manufacturer in the beverage industry, operating globally in more

than 200 countries with its head office located in Atlanta, USA. It produces more than 300

beverage brands and over 1.06 billion drinks are consumed per day around the world.

As the leading beverages company in the world, Coca Cola almost monopolizes the entire

carbonated beverages segment. Beside it, Coca Cola also maintain their reputation as the leading

company in the world using PESTLE analysis so that Coca Cola can examine the macro-

environment of Coca Cola’s operations.

5 | P a g e

Scope:

It requires reasonably a long time to acquire through knowledge about the activities of any

particular organization. It is not enough to get proper idea about a company through internet.

Because it is very difficult to find proper data only from internet.

Methodology:

To make this report, we need to collect different data. Those data and information were collected

from various sources. Such as Primary and Secondary which is showed below:

Primary data:

We couldn’t collect any data from primary source. We mainly focused on

secondary data.

Secondary data:

We have collected our secondary data from the Internet. The links are given in the

reference part of the report.

6 | P a g e

Table of Contents:

Introduction: ................................................................................................................................................. 7

Organization Profile ...................................................................................................................................... 8

Company Background ................................................................................................................................... 9

Mission ...................................................................................................................................................... 9

Vision:...................................................................................................................................................... 10

SWOT Analysis: ........................................................................................................................................... 12

Strengths ................................................................................................................................................. 13

Weaknesses: ........................................................................................................................................... 13

Opportunities: ......................................................................................................................................... 14

Threats: ................................................................................................................................................... 15

PESTLE Analysis: .......................................................................................................................................... 16

Political Environment: ............................................................................................................................. 17

Economic Environment: .......................................................................................................................... 18

Inflationary Affect: .............................................................................................................................. 19

Social Environment: ................................................................................................................................ 20

Technological Environment: ................................................................................................................... 22

Legal Environment: ................................................................................................................................. 23

Environmental Analysis: .......................................................................................................................... 24

Challenges: .................................................................................................................................................. 26

Recommendations: ..................................................................................................................................... 26

Conclusion ................................................................................................................................................... 27

References: ................................................................................................................................................. 28

7 | P a g e

Introduction:

The Coca-Cola company is the ‘world’s largest beverage company and is the leading producer and

marketer of soft drinks. Today, Coca-Cola is consumed throughout the world at the rate of more

than 600 million times per day and this figure is continuing to rise. However Coca-Cola is not the

sort of company to live in its past glories instead it looks to the future as a challenge and constantly

seeks new markets and ways of increasing its market share in areas where it currently has a strong

presence. It is the world’s largest producer and distributer of syrups and concentrates for soft

drinks.

As we all know, the Coca is today’s one of the biggest corporation that offers different refreshment

in form of a soft-drink. But aside from their historical success, the Coca Cola Company is still a

typical business that is affected and at the same time affecting the different type of communities.

Coca-Cola has sold more than one billion servings every day. More than 10,450 beverages are

consumed every second. The company achieved earnings of $4,347,000,000 in 2003. It is present

on all seven continents and is recognized by 94% of the world population. How did Coca-Cola

grow from its humble roots as a home-brewed Georgia-based patent medicine to be the

international soft drink powerhouse that it is today? Coca-Cola used numerous technologies to

achieve its rise to the top of the soft drink industry, defining new technologies and establishing

paradigms that popped the status quo like a cap from a soda bottle. Through technology, Coca-

Cola perfected Coke as a beverage and spread it throughout the world. Even today, the US soft

drink industry is organized on this principle. "The Coca-Cola Company" is now the largest soft

drink company in the world. Every year 800,000,000 servings of just "Coca-Cola" are sold in the

U.S alone.

8 | P a g e

Organization Profile

Coca-Cola Enterprises, established in 1986, is a young company by the standards of the Coca-Cola

system. Yet each of its franchises has a strong heritage in the traditions of Coca-Cola that is the

foundation for this Company.

The Coca-Cola Company traces it’s beginning to 1886, when an Atlanta pharmacist, Dr. John

Pemberton, began to produce Coca-Cola syrup for sale in fountain drinks. However the bottling

business began in 1899 when two Chattanooga businessmen, Benjamin F. Thomas and Joseph B.

Whitehead, secured the exclusive rights to bottle and sell Coca-Cola for most of the United States

from The Coca-Cola Company.

The Coca-Cola bottling system continued to operate as independent, local businesses until the

early 1980s when bottling franchises began to consolidate. In 1986, The Coca-Cola Company

merged some of its company-owned operations with two large ownership groups that were for

sale, the John Lupton franchises and BCI Holding Corporation's bottling holdings, to form Coca-

Cola Enterprises Inc. The Company offered its stock to the public on November 21, 1986, at a

split-adjusted price of $5.50 a share. On an annual basis, total unit case sales were 880,000 in 1986.

In December 1991, a merger between Coca-Cola Enterprises and the Johnston Coca-Cola Bottling

Group, Inc. (Johnston) created a larger, stronger Company, again helping accelerate bottler

consolidation. As part of the merger, the senior management team of Johnston assumed

responsibility for managing the Company, and began a dramatic, successful restructuring in

1992.Unit case sales had climbed to 1.4 billion, and total revenues were $5 billion.

9 | P a g e

Company Background The Coca Coola Company is the largest beverage business in the world serving more than 200

countries and offering more than 500 brands.

Name The Coca Cola Company

Industries served Beverages

Geographic areas

served

Worldwide

Headquarters U.S.

Current CEO Muhtar Kent

Revenue $ 48.01 billion (2012)

Profit $ 9.01 billion (2012)

Employees 146,200

Main Competitors PepsiCo Inc., Dr. Pepper Snapple Group, Inc., Unilever, Groupe

Danone, Kraft Foods Inc., Nestlé S.A. and others.

Mission

According To Coca-Cola, “Our mission statement is to maximize shareowner value over time. In

order to achieve this mission, we must create value for all the constraints we serve including our

consumers, our customers, our bottlers, and our communities.”

The Coca Cola Company creates value by executing comprehensive business strategy

guided by six key beliefs:

1. Consumer demand drives everything They do

2. Brand Coca Cola is the core of our business.

10 | P a g e

3. They will serve consumers a broad selection of the nonalcoholic ready-to–drink

beverages they want to drink throughout the day.

4. They will be the best marketers in the world.

5. They will think and act locally.

6. They will lead as a model corporate citizen.

The ultimate objectives of our business strategy are to increase volume, expand our share of

worldwide nonalcoholic ready to drink beverages sales, maximize our long-term cash flows, and

create economic value added by improving economic profit. The Coca Cola system has more than

16 million customers around the world that sells or serves our products directly to consumers.

They keenly focus on enhancing value for these customers and helping them grow their beverage

business. They strive to understand each customer’s business and needs, whether that customer is

a sophisticated retailer in developed market a kiosk owner in an emerging market. There are nearly

6 million people in the world who are potential consumers of the Coca-Cola Company’s products.

Ultimately, our success in achieving our mission depends on our ability to satisfy more of their

beverage consumption demands and our ability to add value for customers. They achieve this when

they place the right products in the right markets at the right time.

Vision:

The vision of Coca-Cola is the framework for their guides of every aspect of its business. It is

presented in 6Ps:

1. People: Be a great place to work where people are inspired to be the best they can be.

2. Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and

satisfy people's desires and needs.

3. Partners: Nurture a winning network of customers and suppliers, together they create

mutual, enduring value.

11 | P a g e

4. Planet: Be a responsible citizen that makes a difference by helping build and support

sustainable communities.

5. Profit: Maximize long-term return to shareowners while being mindful of our overall

responsibilities.

6. Productivity: Be a highly effective, lean and fast-moving organization.

12 | P a g e

SWOT Analysis: Before going to SWOT analysis, first we’ve know what SWOT actually is. The alphabets in

the word SWOT sands for Strength, Weakness, Opportunity and Threats. In SWOT analysis,

we basically going to discuss about the strength, weakness, opportunity and threats of Coca-

Cola Company. So, here goes the SWOT analysis of Coca Cola Company.

13 | P a g e

Now we are going to discuss elaborately on the points given above in SWOT Analysis table.

Strengths

i. The best global brand in the world in terms of value. According to Interbrand, The Coca

Cola Company is the most valued ($77,839 billion) brand in the world.

ii. World’s largest market share in beverage. Coca Cola holds the largest beverage market

share in the world (about 40%).

iii. Strong marketing and advertising. Coca Cola’ advertising expenses accounted for more

than $3 billion in 2012 and increased firm’s sales and brand recognition.

iv. Most extensive beverage distribution channel. Coca Cola serves more than 200 countries

and more than 1.7 billion servings a day.

v. Customer loyalty. The firm enjoys having one of the most loyal consumer groups.

vi. Bargaining power over suppliers. The Coca Cola Company is the largest beverage

producer in the world and exerts significant power over its suppliers to receive the lowest

price available from them.

vii. Corporate Social Responsibility (CSR). Coca Cola is increasingly focusing on CSR

programs, such as recycling/packaging, energy conservation/climate change, active

healthy living, water stewardship and many others, which boosts company’s social image

and result in competitive advantage over competitors.

Weaknesses:

i. Significant focus on carbonated drinks. The business is still focusing on selling Coke,

Fanta, Sprite and other carbonated drinks. This strategy works in short term as consumption

of carbonated drinks will grow in emerging economies but it will prove weak as the world

is fighting obesity and is moving towards consuming healthier food and drinks.

14 | P a g e

ii. Undiversified product portfolio. Unlike most company’s competitors, Coca Cola is still

focusing only on selling beverage, which puts the firm at disadvantage. The overall

consumption of soft drinks is stagnating and Coca Cola Company will find it hard to

penetrate to other markets (selling food or snacks) when it will have to sustain current level

of growth.

iii. High debt level due to acquisitions. Nearly $8 billion of debt acquired from CCE’s

acquisition significantly increased Coca Cola's debt level, interest rates and borrowing

costs.

iv. Negative publicity. The firm is often criticized for high water consumption in water scarce

regions and using harmful ingredients to produce its drinks.

v. Brand failures or many brands with insignificant amount of revenues. Coca Cola

currently sells more than 500 brands but only few of the brands result in more than $1

billion sales. Plus, the firm’s success of introducing new drinks is weak. Many of its

introduction result in failures, for example, C2 drink.

Opportunities:

i. Bottled water consumption growth. Consumption of bottled water is expected to grow

both in US and the rest of the world.

ii. Increasing demand for healthy food and beverages. Due to many programs to fight

obesity, demand for healthy food and beverages has increased drastically. The Coca Cola

Company has an opportunity to further expand its product range with drinks that have low

amount of sugar and calories.

iii. Growing beverages consumption in emerging markets. Consumption of soft drinks is

still significantly growing in emerging markets, especially BRIC countries, where Coca

Cola could increase and maintain its beverages market share.

iv. Growth through acquisitions. Coca Cola will find it hard to keep current growth levels

and will find it hard to penetrate new markets with its existing product portfolio. All this

can be done more easily through acquiring other companies.

15 | P a g e

Threats:

i. Changes in Consumer Tastes. Consumers around the world become more health

conscious and reduce their consumption of carbonated drinks, drinks that have large

amounts of sugar, calories and fat. This is the most serious threat as Coca Cola is mainly

serving carbonated drinks.

ii. Water Scarcity. Water is becoming scarcer around the world and increases both in cost

and criticism for Coca Cola over the large amounts of water used in production.

iii. Strong Dollar. More than 60% of The Coca Cola Company income is from outside US.

Due to strong dollar performance against other currencies firm’s overall income may fall.

iv. Legal Requirements to Disclose Negative Information on Product Labels. Some Coca

Cola’s carbonated drinks have adverse health consequences. For this reason, many

governments consider to pass legislation that requires disclosing such information on

product labels. Products containing such information may be perceived negatively and lose

its customers.

v. Decreasing Gross Profit and Net Profit Margins. Coca Cola’s gross profit and net profit

margin was decreasing over the past few years and may continue to decrease due to higher

water and other raw material costs.

vi. Competition from PepsiCo. PepsiCo is fiercely competing with Coca Cola over market

share in BRIC countries, especially India.

vii. Saturated Carbonated Drinks Market. The business significantly relies on the

carbonated drinks sales, which is a threat for the Coca Cola as the market of carbonated

drinks is not growing or even declining in the world.

16 | P a g e

PESTLE Analysis: The Coca Cola Company and other organizations have their own weaknesses and strengths that

can both affect the future performance of their respective business. Analyzing the future

constraints is an advantage for the companies since they can identify the possible factors that tend

to leave an impact on their business.

PESTLE analysis is a popular method that focuses in the external factors of the business and the

environment where it operates. PESTLE stands for Political, Economic, Sociological,

Technological, Legal, and Environmental. All of them examine the changes in the marketplace.

17 | P a g e

Political Environment:

Political environment examines the current and potential influences from political pressures. The

non-alcoholic beverages falls in the category under the FDA and the government plays a role

within the operation of manufacturing these products. In terms of regulations, the government has

the power to set potential fines for the companies that did not meet their standard law requirement.

The changes in laws and regulations, such as accounting standards, taxation requirements and

environmental laws and foreign jurisdictions might affect the book of the company as well as their

entry in this country. Other than that, the changes in the nature of business as non-alcoholic

beverages can gain competitive product and pricing pressures and the ability to improve or

maintain the share in sales in global market as a result of action by competitors.

The political conditions of the country are also basis of the study, especially in internal markets

and other governmental changes that affects their ability to penetrate the developing and emerging

markets that involves the political and economic conditions. However, Coca Cola continuously

monitoring the policies and regulations set by the government.

Coca Cola is the leading soft drink brand in Bangladesh. However, the primary barrier for Coca-

Cola’s entry into the Bangladeshi market was its political environment. Despite the liberalization

of the economy in and introduction of the New Industrial Policy to eliminate barriers such as

bureaucracy and regulation, there was still a lot of protectionism. When Coca Cola had decided to

enter in Bangladesh to distribute the products, Coca Cola was monitoring the policies and

regulations of this country. For the example, when entering Muslim country like Bangladesh, Coca

Cola followed the regulation by adding “Halal” stamp in each Coca Cola’s products. In this case,

Coca Cola has no political issues in this matter.

18 | P a g e

Economic Environment:

The economic factors analyze the potential areas where the firm can grow and expand. It includes

the economic growth of the country, interest rates, exchange rates, inflation rates, wage rates and

unemployment in the country.

Economic environment examines the local, national and world economy impact which is also

includes the issue of recession and inflation rates. The non-alcoholic beverage industry like

Bangladesh has high sales in countries outside the U.S because here alcohol is prohibited from

religious perspective. According to the Standard and Poor's Industry surveys, "For major soft drink

companies, there has been economic improvement in many major international markets, such as

Japan, Brazil, and Germany." These markets will continue to play a major role in the success and

stable growth for a majority of the non-alcoholic beverage industry like Bangladesh. There is a

low growth in the market for carbonated drinks, especially in Coca Cola’s main market.

The company first analyzes the economic condition of the country before venturing into that

country. When there is an economic growth in the country, the purchasing power among people

increases. It gives the company or the marketer a good chance to market the product. Coca-Cola,

in the past identified this correctly and rightly started its distribution across the country.

Interest rates are the rate which is imposed on the company for the money they have borrowed

from government. When there is an increase in the interest rates, it may deter the company in

further investment as the cost for borrowing is higher. Coca-Cola uses derivative financial

instruments to cope up with the fluctuating interest rates. Inflation and wage rate go hand in hand,

when there is an increase in the inflation the employee demand for a higher wage rate to cope up

with the cost of living.

19 | P a g e

This comes as additional cost for the company which cannot be reflected in the price of the final

product as the competition and risk in this segment is higher. This is a threat in the external

environment faced by the company. From the above explanation it is clearly seen that the economic

factors involves a major impact in the behavior of the company during various economic situations.

Inflationary Affect:

Inflation is one of the main problems that a country have to face in their economy. Rising prices

in the food and other products doesn’t only effect the consumers it also has an adverse effect on a

company. The inflation rate for the year 2009 was too high. As prices have gone up in Bangladesh

for various products, there has been uncertainty in decision making of almost every company.

Coca cola has also been affected by the same; it has been forced to think about their input costs,

as they have been rising due to inflation. Their expenditure has been rising, with more costs in

salaries, distribution channels and other operating costs. Beverage industry being price competitive

market, they have not revised their product prices.

20 | P a g e

Social Environment:

Social factors are mainly the culture aspects and attitude, health consciousness among people,

population growth with age distribution, emphasis on safety. The company cannot change the

social factors but the company has to adjust itself to the changing society. The company adapts

various management strategies to adapt to these social trends. Coca-Cola which is a B2C company,

is directly related to the customer, so social changes are the most important factors to consider.

Each and every country has a unique culture and attitude among the people. It is very important to

know about the culture before marketing in a particular country. Coca-Cola has about 3300+

products in their stable, when entering into a country it does not introduce all the products. When

they started their business in Bangladesh, it introduces minimum number of products according to

the culture of the country and the attitude of the people.

Consumers and government are becoming increasingly aware of the public health consequences,

mainly obesity which is the second social factor in the soft drinks industry. It inspired the company

to venture into the areas of Diet coke and zero calorie soft drinks. The problem of obesity is taken

seriously among the youngsters who like to maintain a good physique. Hence coke introduced

dietary products for those youngsters who can enjoy coke with zero calories. In one of the study it

is said that “Consumer from the age groups 37 to 55 are also increasingly concerned with

nutrition”. Since many are aware, they are concerned with the longevity of their lives. This will

affect the demand of the company in the existing product and also is an opportunity to venture into

new health and energy drinks industry.

Population growth rate and the age distribution is another social factor to be considered. It is very

important because non-alcoholic markets have most of its share from the children and youngsters.

Adults used to celebrate mostly with alcohol. The age distribution of the country becomes

important for the success of the product in this country.

21 | P a g e

Initially, it struggled to find acceptance as there were already other brands. Coca-Cola had earlier

focused more on the American way of life in their advertising campaigns, which the Bangladeshi

consumers could not identify with. Also, they did not focus on competition from other alternatives.

However, things were brought under control when they gave more attention on their marketing

mix. With the lowering of their prices by almost 15-20%, more investment in market research and

focusing on the target group of 18-24 year olds, they were able to increase their market share and

build brand loyalty.

Coca Cola today, has made significant investments to build its business in Bangladesh. It has also

generated employment for lots of people in related industry through its procurement, supply and

distribution cycles.

The soft drink industry today is growing steadily due to the economy, strengthened middle class

and low per capita consumption. With the increase in health consciousness among the urban

consumers, the company has introduced newer products such as Diet Coke, which contain lesser

calories than ordinary Coca Cola. This is also responsible for the company shifting focus from

carbonated drinks to Fruit Drinks / Juices and bottled water.

The rural market had also been identified by Coca-Cola as an attractive target, with almost 70%

of the country’s population.

22 | P a g e

Technological Environment:

Technology plays a varied role in the soft drinks industry. The manufacturing and distribution of

the products is relatively a Low-Tech business, although the creation of a new product with the

perfect blend and taste is a science (an art in itself).

Technological contributions are most important in packaging. The company rely on their bottling

partners for a significant portion of their business. Nearly 83% of the worldwide unit case volume

is manufactured and distributed by their bottling partners in whom the company does not have

controlling power. Hence it is necessary for the company to maintain a cordial relation with their

bottling partners. If the company do not give ample support in pricing, marketing and advertising

then the bottling industry while increase their short term profits, may become detrimental to the

company.

The advancement in technology in the company has led to: Introduction of new ways for the

availability of Coca-Cola, it introduced general vending machines all over the world. In products

it led to the development of new products like Cherry Coke, Diet Coke etc. The technical

advancement in the bottling industries include, introduction of recyclable and non-refillable

bottles, introduction of cans which are trendy, stylish and popular among the youngsters of the

country.

Technology is the main focus of the analysis where the introduction and the emerging

technological techniques are valued. This creates opportunities for new products and product

improvements in terms of marketing and production. As the technology advances, new products

are introduced into the market. The advancement in technology has led to the creation of cherry

coke in 1985 but consumers still prefers the traditional taste of the original coke.

23 | P a g e

Legal Environment:

The legal factors include discrimination law, customer law, antitrust law, employment law and

health and safety law. In Coca-Cola the business is subjected to various laws and regulation in the

numerous countries in which they do the business, the laws include competition, product safety,

advertising and labelling, container deposits, environment protection, and labor practices.

In Bangladesh, the products of the company is subjected to various acts like Drug and Cosmetic

Act, Occupation Safety and Health Act, various environment related acts and regulations, the

production, distribution, sale and advertising of all the products are subjected to various laws and

regulations. Changes in these laws could result in increased costs and capital expenditures, which

affects the company profitability and also the production and distribution of the products.

Various jurisdictions may adopt significant regulations in the additional product labelling and

warning of certain chemical content or perceived health consequences. These requirements if

become applicable in the future the company must be ready to accept and have necessary changes

in hand for the same.

Legal aspect focuses on the effect of the national and world legislation. The Coca Cola Company

receives all the rights applicable in the nature of their business and every inventions and product

developments are always going into the patented process.

In the present scenario, consumer is the king, if a product is defective, not meeting the stated

standards a consumer can complain against the manufacturer. Coca Cola has to make sure that

24 | P a g e

they have written price, manufacturing date, expiry date, batch no, nutritional facts are written on

the packed product. Ministry of Labor makes the laws for proper employment in the country. They

have stipulated norms on employing people from the country and getting expatriates in the

company as well. Coca Cola has made sure that female employees are treated with respect and

given equal importance at the work place. Every field of work has got its own wage, these are to

meet the norms and laws set by the labor ministry. When employing anyone, Coca Cola doesn’t

discriminate on social, regional or any racists’ basis.

Environmental Analysis:

Environmental analysis examines the local, national and world environmental issues. According

to the data of the Coca Cola Company, all of the facilities are strictly monitored according to the

environmental laws imposed by the government.

Coca Cola has earned a title of environment friendly company and Coca Cola Bangladesh too has

followed in the footsteps. Coca Cola’s Corporate Social Responsibility (CSR), is an initiative that

prioritizes many social and environmental issues; one of them being ‘water conservation’. They

support many community based rainwater harvesting projects and help lending conservation

education.

The company has made sure that the following ideas are considered during their operations:

I. Environmental due diligence before acquiring land

II. Environmental impact assessment before commencing project

III. Ground water and environment survey before selecting the site

IV. Ban on purchasing CFC emitting refrigerating equipment

V. Waste water treatment facilities

25 | P a g e

VI. Compliance with all regulatory environmental requirements

VII. Energy conservation programs

VIII. By following these guidelines Coca-Cola has helped the environment with

consistent profits and success. They seek to provide leadership in three different

areas, these are as follows:

IX. Water efficiency and water quality

X. Energy efficiency

XI. Eliminating or minimizing solid waste.

Though being an environmental friendly company, Coca Cola had to face its share of

controversies. On 4th February, 2007, Centre of Science and Environment in Bangladesh, released

a report based on experiment done by Pollution Monitoring Laboratory. In the experiment, they

tested 17 packaged drinking water brands and found that, Coca Cola’s Kinley has 15 times more

pesticide residual levels than the stipulated norms, Bisleri had 59 times and Aquaplus had 109

times.

The main law governing the food safety is the Prevention of food alteration act, which stated that

pesticides should not be present in any food item but did not have law against pesticides being

present in soft drinks. However, the Food Processing Order stated that the main ingredient used in

soft drinks must be ‘potable water’ but the Bureau of standards had no prescribed standards for

pesticides in water.

But later it was found that BIS had stated that pesticides should not be present or it should not

exceed 0.001 part per million. Further, the health ministry of Bangladesh admitted that ‘there were

lapses in PFA regarding carbonated drinks’.

26 | P a g e

Challenges:

From our analysis, we have found some challenges that Coca-Cola Company is facing here in

Bangladesh. The Challenges are as follows-

I. In rural areas especially in remote areas, Coke is not available but there is a

demand.

II. In Bangladesh, Coke Diet and Zero is not that much available. They are having

production and problem.

Recommendations:

After completing our project we have concluded some recommendation for the Coca-Cola

Company, which are following.

I. Coca Cola Company should try to emphasis more on providing

their infrastructure in the market to facilitate their customers.

II. According to the survey conducted by an international firm, Bangladeshi people

like little bit sweeter cola drink. So for this coca cola company should produce

their product according to the local demand.

III. Marketing team should try to increase the availability of Coke in rural areas.

IV. They should also focus on the old people.

V. Now young generation has a trend to drink a coke 2 regular bottle at same time, so

providing more satisfaction to them company should introduce ½

liter disposable bottle.

VI. As, in Bangladesh, having a good number of demand, Coke Diet and Zero is

not that much available, so they should emphasize on the supply of these two

brands.

27 | P a g e

Conclusion After thorough research, we come to the conclusion that the marketing strategy of Coca

Cola is working for them and the product is gaining popularity among youth day by day.

28 | P a g e

References:

1) http://www.coca-colacompany.com/

2) http://en.wikipedia.org/wiki/The_Coca-Cola_Company

3) http://ivythesis.typepad.com/term_paper_topics/2009/12/pestle-analysis-on-coca-

cola.html

4) http://annasurname.hubpages.com/hub/PEST-Analysis-Coca-Cola

5) http://smallbecomesgiant.wordpress.com/2013/04/04/pest-analysis-of-coca-cola-

company/

6) http://www.strategicmanagementinsight.com/swot-analyses/coca-cola-swot-

analysis.html