COCA-COLA BOTTLING COMPANY

Situation and Market Analysis of Coca-Cola Bottling Company and its Impact on Business Performance

Table of Contents

Introduction of the company1

Situation Analysis1

1.Response to Market Changes1

2.Acquisitions2

3.Customer Relationship2

4.Customer Demand and Preferences2

5.Health and stability Concerns3

6.Environmental Concerns3

Issues that are not covered in the Situation Analysis3

SWOT Analysis4

Strengths4

Weaknesses4

Opportunities5

Threats5

Key Performance Issues Related to Strategic and Tactical Marketing Plan6

Product innovation and portfolio expansion6

Price of Raw Materials6

Change in Customer Demand7

Impact on Business Performance7

Observable Results8

Need to Go beyond Observable Results8

Internal and External Performance Metrics9

Financial factors9

Internal factors9

Innovation10

Customers10

Evaluation - How does the above issues relate to the company's performance10

Conclusion11

References12Situation and Market Analysis of Coca-Cola Bottling Company and its Impact on Business Performance

Introduction of the company

Coca-Cola Bottling Company (COKE) is America's largest Coca-Cola Bottler. Its head quarter is located in Charlotte, NC. It distributes and sells Coca-Cola products and other beverages to the intermediaries. The company started its operations in 1980. Initially, the company used to manufacture non-alcoholic beverages, but, later it started “distribution business” in 1902. At the start of 2011, Coca-Cola owned around 35 percent share in the COKE's stock. As a result, the voting power of Coca-Cola was 5.2 percent. Overall, Frank Harrison III owns the 85 percent of the voting power of Coca-Cola Bottling Company.

Situation Analysis

The current situation analysis of the company revels following information:

Response to Market Changes

The company is facing strong competition. The non-alcoholic beverage industry of America is very saturated, and there is a continuous need to change the company's strategies according to the industry and market trends. Due to intense competition, the net prices of the products of the company are expected to reduce. As a result, the profit margin of the company may get adversely affected. Moreover, the company's sales are continuously decreasing due to competition and if the company does not increase the volume of high-margin products, its profitability will be affected. On the other hand, if the company increases its prices then the sales of the company will be adversely affected. Currently the only solution to this problem is to increase sales of high-profit products.

Acquisitions

Currently, the company has acquired the North America's operations of Coca-Cola, which is a very positive sign because the North American franchisers have recently acquired the competitors of the company. Therefore, it is expected that it will have a positive impact on the company's business and financial results.

Customer Relationship

The company generates most of its sales through its VIP customers. Therefore, it has to improve its relationships with them by giving them innovative offers and pricing options. Currently, two of the biggest customers of the company account for around 24% percent of the company's sales. Therefore, it cannot afford to lose any of them. “These customers typically make purchase decisions based on a combination of price, product quality, consumer demand” (Coca-Cola Bottling Company Consolidated, 2010). Therefore, change in any of these factors could adversely affect the sales volume of the company.

Customer Demand and Preferences

The non-alcoholic beverage industry of America is very competitive. Therefore, introduction of new flavors and beverages have a strong impact of consumer choice and ...