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The Story Behind the Drink By Julia Casteleiro and Alisha Garfinkel Coca-Cola is constantly trying to increase productivity in its existing operations. They do this by investing in new bottling technology, marketing management, and refining management of their entire system. Not only do they gain more efficient ways of running their business, but they also learn from their investments and see how to better them in the future.
Coca-Cola=s investments are focused around penetrating the smaller developing companies and get them working in cooperation with Coca-Cola itself. The majority of the company=s investments go to further establishing production facilities, distribution networks, sales equipment, and technology. In order to make the investments the company forms business alliances with local bottlers. Then they find people with the expertise to work well with the current resources Coca-Cola provides. The investments they make also go into markets that they do not have a tight hold on, so they can try to create something out of that market in the future.
Coca-Cola has business relationships with three types of bottling companies in order to maximize the strength and efficiency of the company=s production. One type of bottling company that they have a relationship with is independently owned. These bottlers are not owned by Coca-Cola, but work together with Coca-Cola. The second kind is comprised of bottlers that Coca-Cola owns, but does not run themselves. The third bottlers they own and control. The independently owned and run bottlers have produced approximately 37% of the worldwide distribution of Coca-Cola. The ones that are owned by Coca-Cola, but not run by it produce and distribute 50% of the world wide unit case volume. The ones that are owned an operated by Coca-Cola produce only 13% of worldwide unit case volume. Marketing activities have to do with supporting Coca-Cola=s trademarks which is done by creating consumer demand for their brands. Spending on advertisements enhances consumer awareness and preference toward the Coca-Cola brand. By conducting research they establish consumer communications, and by doing this they find out how to improve their company. In order to maximize the impact of the company=s advertising they go to individual advertising agencies. With this strategy they are able to increase global marketing. In order to maintain and refine the culture needed to enhance the Coca-Cola industry, they recruit people to train, and retrain current employees. The Coca-Cola Learning Consortium works with the management to help build the culture, systems, and processes our people need to stay comfortable while working hard and learning more efficient work habits. Due to Coca-Cola=s marketing, bottling, and management strategies, Coca-Cola has been able to enhance their products quality and selling capabilities.
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