Project Of: Market management

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Comsats institute of Information and Technology

1) Introduction of the organization:

History of Coca Cola:

The first Coca-Cola recipe was invented in a drugstore in Columbus, Georgia by John Pemberton, originally as a coca wine called Pemberton's French Wine Coca in 1885. He may have been inspired by the formidable success of Vin Mariani, a European coca wine. In 1886, when Atlanta and Fulton County passed prohibition legislation, Pemberton responded by developing Coca-Cola, essentially a non-alcoholic version of French Wine Cola. The first sales were at Jacob's Pharmacy in Atlanta, Georgia, on May 8, 1886. It was initially sold as a patent medicine for five cents a glass at soda fountains, which were popular in the United States at the time due to the belief that carbonated water was good for the health. Pemberton claimed Coca-Cola cured many diseases, including morphine addiction, dyspepsia, neurasthenia, headache, and impotence. Pemberton ran the first advertisement for the beverage on May 29 of the same year in the Atlanta Journal. By 1888, three versions of Coca-Cola sold by three separate businesses were on the market. Asa Griggs Candler acquired a stake in Pemberton's company in 1887 and incorporated it as the Coca Cola Company in 1888. The same year, while suffering from an ongoing addiction to morphine, Pemberton sold the rights a second time to four more businessmen: J.C. Mayfield, A.O. Murphey, C.O. Mullahy and E.H. Blood worth. Meanwhile, Pemberton's alcoholic son Charley Pemberton began selling his own version of the product. John Pemberton declared that the name "Coca-Cola" belonged to Charley, but the other two manufacturers could continue to use the formula. So, in the summer of 1888, Candler sold his beverage under the names Yum Yum and Koke. After both failed to catch on, Candler set out to establish a legal claim to Coca-Cola in late 1888, in order to force his two competitors out of the business. Candler purchased exclusive rights to the formula from John Pemberton, Margaret Dozier and Wool folk Walker. However, in 1914,

Dozier came forward to claim her signature on the bill of sale had been forged, and subsequent analysis has indicated John Pemberton's signature was most likely a forgery as well.

Old German Coca-Cola bottle opener In 1892 Candler incorporated a second company, The Coca-Cola Company (the current corporation), and in 1910 Candler had the earliest records of the company burned, further obscuring its legal origins. By the time of its 50th anniversary, the drink had reached the status of a national icon in the USA. In 1935, it was certified kosher by Rabbi Tobias Geffen, after the company made minor changes in the sourcing of some ingredients. Coca-Cola was sold in bottles for the first time on March 12, 1894. The first outdoor wall advertisement was painted in the same year as well in Cartersville, Georgia. Cans of Coke first appeared in 1955. The first bottling of Coca-Cola occurred in Vicksburg, Mississippi, at the Biedenharn Candy Company in 1891. Its proprietor was Joseph A. Biedenharn. The original bottles were Biedenharn bottles, very different from the much later hobble-skirt design that is now so familiar. Asa Candler was tentative about bottling the drink, but two entrepreneurs from Chattanooga, Tennessee, Benjamin F. Thomas and Joseph B. Whitehead, proposed the idea and were so persuasive that Candler signed a contract giving them control of the procedure for only one dollar. Candler never collected his dollar, but in 1899 Chattanooga became the site of the first Coca-Cola bottling company. The loosely termed contract proved to be problematic for the company for decades to come. Legal matters were not helped by the decision of the bottlers to subcontract to other companies, effectively becoming parent bottlers.

Coke concentrate, or Coke syrup, was and is sold separately at pharmacies in small quantities, as an over-the-counter remedy for nausea or mildly upset stomach.

New Coke:
On April 23, 1985, Coca-Cola, amid much publicity, attempted to change the formula of the drink with "New Coke". Follow-up taste tests revealed that most consumers preferred the taste of New Coke to both Coke and Pepsi, but Coca-Cola management was unprepared for the public's nostalgia for the old drink, leading to a backlash. The company gave in to protests and returned to a variation of the old formula, with highfructose replacing cane sugar, under the name Coca-Cola Classic on July 10, 1985.

21st Century:
On February 7, 2005, the Coca-Cola Company announced that in the second quarter of 2005 they planned to launch a Diet Coke product sweetened with the artificial sweetener sucralose ("Splenda"), the same sweetener currently used in Pepsi One. On March 21, 2005, it announced another diet product, Coca-Cola Zero, sweetened partly with a blend of aspartame and acesulfame potassium. In 2007, Coca-Cola began to sell a new "healthy soda": Diet Coke with vitamins B6, B12, magnesium, niacin, and zinc, marketed as "Diet Coke Plus." On July 5, 2005, it was revealed that Coca-Cola would resume operations in Iraq for the first time since the Arab League boycotted the company in 1968. In April 2007, in Canada, the name "Coca-Cola Classic" was changed back to "Coca-Cola." The word "Classic" was truncated because "New Coke" was no longer in production, eliminating the need to differentiate between the two. The formula remained unchanged. In January 2009, Coca-Cola stopped printing the word "Classic" on the labels of 16-ounce bottles sold in parts of the southeastern United States. The change is part of a larger strategy to rejuvenate the product's image.

In November 2009, due to a dispute over wholesale prices of Coca-Cola products, Costco stopped restocking its shelves with Coke and Diet Coke.
Logo design

U.S. containers as of 2008. Sizes vary from 8 US fl oz (240 mL) to 2 L (68 US fl oz), shown in cans and glass and plastic bottles. The famous Coca-Cola logo was created by John Pemberton's bookkeeper, Frank Mason Robinson, in 1885. Robinson came up with the name and chose the logo's distinctive cursive script. The type face used, known as Spenserian script, was developed in the mid 19th century and was the dominant form of formal handwriting in the United States during that period. Robinson also played a significant role in early Coca-Cola advertising. His promotional suggestions to Pemberton included giving away thousands of free drink coupons and plastering the city of Atlanta with publicity banners and streetcar signs. Contour bottle design: The equally famous Coca-Cola bottle, called the "contour bottle" within the company, but known to some as the "hobble skirt" bottle, was created in 1915 by bottle designer Earl R. Dean. In 1915, the Coca-Cola Company launched a competition among its bottle suppliers to create a new bottle for the beverage that would distinguish it from other beverage bottles, "a bottle which a person could recognize even if they felt it in the dark, and so shaped that, even if broken, a person could tell at a glance what it was."

Earl R. Dean's original 1915 concept drawing of the contour Coca-Cola bottle Chapman J. Root, president of the Root Glass Company, turned the project over to members of his supervisory staff, including company auditor T. Clyde Edwards, plant super intendent Alexander Samuelsson, and Earl R. Dean, bottle designer and supervisor of the bottle molding room. Root and his subordinates decided to base the bottle's design on one of the soda's two ingredients, the coca leaf or the kola nut, but were unaware of what either ingredient looked like. Dean and Edwards went to the Emeline Fairbanks Memorial Library and were unable to find any information about coca or kola. Instead, Dean was inspired by a picture of the gourd-shaped cocoa pod in the Encyclopedia Britannica. Dean made a rough sketch of the pod and returned back to the plant to show Mr. Root. He explained to Root how he could transform the shape of the pod into a bottle. Chapman Root gave Dean his approval.

Faced with the upcoming scheduled maintenance of the mold-making machinery, over the next 24 hours Dean sketched out a concept drawing which was approved by Root the next morning. Dean then proceeded to create a bottle mold and produced a small number of bottles before the glassmolding machinery was turned off. Chapman Root approved the prototype bottle and a design patent was issued on the bottle in November, 1915. The prototype never made it to production since its middle diameter was larger than its base, making it unstable on conveyor belts. Dean resolved this issue by decreasing the bottle's middle diameter. During the 1916 bottler's convention, Dean's contour bottle was chosen over other entries and was on the market the same year. By 1920, the contour bottle became the standard for the Coca-Cola Company. Today, the contour Coca-Cola bottle is one of the most recognized packages on the planet..."even in the dark!". As a reward for his efforts, Dean was offered a choice between a $500 bonus or a lifetime job at the Root Glass Company. He chose the lifetime job and kept it until the Owens-Illinois Glass Company bought out the Root Glass Company in the mid-1930s. Dean went on to work in other Midwestern glass factories. Although endorsed by some this version of events is not considered authoritative by many who consider it implausible. One alternative depiction has Raymond Loewy as the inventor of the unique design, but, while Loewy did serve as a designer of Coke cans and bottles in later years, he was in the French Army the year the bottle was invented and did not emigrate to the United States until 1919. Others have attributed inspiration for the design not to the cocoa pod, but to a Victorian hooped dress. In 1944, Associate Justice Roger J. Traynor of the Supreme Court of California took advantage of a case involving a waitress injured by an exploding Coca-Cola bottle to articulate the doctrine of strict liability for defective products. Traynor's concurring opinion in Escola v. Coca-Cola Bottling Co. is widely recognized as a landmark case in U.S. law today.

In 1997, Coca-Cola also introduced a "contour can," similar in shape to its famous bottle, on a few test markets, including Terre Haute, Indiana. The new can has never been widely released. A new slim and tall can began to appear in Australia as of December 20, 2006, it cost AU$1.95. The cans have a distinct resemblance to energy drinks that are popular with teenagers. The cans were commissioned by Domino's Pizza and are available exclusively at their restaurants. In January 2007, Coca-Cola Canada changed "Coca-Cola Classic" labeling, removing the "Classic" designation, leaving only "Coca-Cola." Coca-Cola stated this is merely a name change and the product remains the same. The cans still bear the "Classic" logo in the United States. Coca-Cola is a registered trademark in most countries. The U.S. trademark was registered in the United States Patent Office on January 31, 1893. In the UK, Coca-Cola was registered with the UK Patent Office on July 11, 1922, under registration number 427817. In 2007, Coca-Cola introduced an aluminum can designed to look like the original glass Coca-Cola bottles. In 2007, the company's logo on cans and bottles changed. The cans and bottles retained the red color and familiar typeface, but the design was simplified, leaving only the logo and a plain white swirl (the "dynamic ribbon"). In 2008, in some parts of the world, the plastic bottles for all Coke varieties (including the larger 1.25- and 2-liter bottles) was changed to include a new plastic screw cap and a contoured bottle shape designed to evoke the old glass bottles.

Mission, Vision of Coca-Cola:

The world is changing all around us. To continue to thrive as a business over the next ten years and beyond, we must look ahead, understand the trends and forces that will shape our business in the future and move swiftly to prepare for what's to come. We must get ready for tomorrow today. That's

what our 2020 Vision is all about. It creates a long-term destination for our business and provides us with a "Roadmap" for winning together with our bottler partners.

Mission:
Our Roadmap starts with our mission, which is enduring. It declares our purpose as a company and serves as the standard against which we weigh our actions and decisions.

To refresh the world... To inspire moments of optimism and happiness... To create value and make a difference.

Vision:
Our vision serves as the framework for our Roadmap and guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable, quality growth. People: Be a great place to work where people are inspired to be the best they can be. Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs. Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value. Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities. Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities. Productivity: Be a highly effective, lean and fast-moving organization.

Position Statement of Coca-Cola:

The Coca-Cola Company and Coca-Cola Amatil NZ produce a range of beverages suited to different ages, stages, lifestyles and occasions. This includes soft drinks, diet drinks, juices and juice drinks, waters, energy drinks, sports drinks and cordials. As part of a healthy, varied and balanced diet and an active lifestyle, all our products can be enjoyed by the majority of people. We are committed to helping our customers select the product that is best suited to their needs through the provision of detailed product information supported by general advice on healthy eating, drinking and lifestyles. We understand that balancing energy intake with energy output is key to a healthy body weight. We therefore provide choice through range of low or no-kilo joule products that are ideally suited to the needs of people who wish to reduce energy intake through beverage selection. Such products are readily available at a similar cost to an equivalent higher energy product. As one of New Zealand's largest producers and marketers of non-alcoholic beverages we promote physical activity through our active lifestyles programmed and sponsorship of sport. Through new product development we will continue to release a range of new types of drinks, including low or no kilo joule products as we look at ways in which to cater to those people who wish to reduce energy intake through selection of lower energy beverages.

Competitors of Coca-Cola:
Pepsi is usually second to Coke in sales, but outsells Coca-Cola in some markets. Around the world, some local brands compete with Coke. In South and Central America Kola Real, known as Big Cola in Mexico, is a fast-growing competitor to Coca-Cola. On the French island of Corsica, Corsica Cola, made by brewers of the local Pietra beer, is a growing competitor to Coca-Cola. In the French region of Bretagne, Breizh Cola is available. In Peru, Inca Kola outsells Coca-Cola, which lead The Coca-Cola Company to purchase the brand in 1999. In Sweden, Julmust outsells Coca-Cola during the Christmas season. In Scotland, the locally-produced Irn-Bru was more popular than Coca-Cola until 2005, when Coca-Cola and Diet Coke began to outpace its sales. [51] In India, Coca-Cola ranked third behind the leader, Pepsi-Cola, and local drink Thums Up. The Coca-Cola Company purchased Thums Up in 1993. As of 2004, Coca-Cola held a 60.9% market-share in India. Tropicola, a domestic drink, is served in Cuba instead of Coca-Cola, due to a United States embargo. French brand Mecca Cola and British brand Qibla Cola, popular in the Middle East, are competitors to Coca-Cola. In Turkey, Cola Turka is a major competitor to Coca-Cola. In Iran and many countries of Middle East, Zam Zam Cola and Parsi Cola are major competitors to CocaCola. In some parts of China Future cola is a competitor. In Slovenia, the locally-produced Cockta is a major competitor to Coca-Cola, as is the inexpensive Mercator Cola, which is sold only in the country's biggest supermarket chain, Mercator. In Israel, RC Cola is an inexpensive competitor. Classiko Cola, made by Tiko Group, the largest manufacturing company in Madagascar , is a serious competitor to Coca-Cola in many regions. Laranjada is the top-selling soft drink on the Portuguese island of Madeira. Coca-Cola has stated that Pepsi was not its main rival in the UK, but rather Robinsons drinks.

SWOT analysis of Coca Cola Company:

The Coca-Cola Company (Coca-Cola) is a leading manufacturer, distributor and marketer of Non-alcoholic beverage concentrates and syrups, in the world. Coca-Cola has a strong brand name and brand portfolio. BusinessWeek and Inter brand, a branding consultancy, recognize Coca-Cola as one of the leading brands in their top 100 global brands ranking in 2006. The Business Week-Interbred valued Coca-Cola at $67,000 million in 2006. Coca-Cola ranks well ahead of its close competitor Pepsi which has a ranking of 22 having a brand value of $12,690 million The Companys strong brand value facilitates customer recall and allows Coca-Cola to penetrate markets. However, the company is threatened by intense competition which could have an adverse impact on the companys market share.

Strengths:
Worlds leading brand Coca-Cola has strong brand recognition across the globe. The company has a leading brand value and a strong brand portfolio. Business-Week and Inter brand, a branding consultancy, recognize. Coca-Cola as one of the leading brands in their top 100 global brands ranking in 2006.The Business WeekInterbrand valued Coca-Cola at $67,000 million in 2006. Coca-Cola ranks well ahead of its close competitor Pepsi which has a ranking of 22 having a brand value of $12,690 million Further more, Coca-Cola owns a large portfolio of product brands. The company owns four of the top five soft drink brands in the world: Coca-Cola, Diet Coke, Sprite and Fanta. Strong brands allow the company to introduce brand extensions such as Vanilla Coke, Cherry Coke and Coke with Lemon. Over the years, the company has made large investments in brand promotions. Consequently, Coca-cola is one of the best recognized global brands. The companys strong brand value facilitates customer recall and allows Coca-Cola to penetrate new markets and consolidate existing ones.

Large scale of operations: With revenues in excess of $24 billion Coca-Cola has a large scale of operation. Coca-Cola is the largest manufacturer, distributor and marketer of nonalcoholic beverage concentrates and syrupsin the world. Coco-Cola is selling trademarked beverage products since the year 1886 in the US. The company currently sells its products in more than 200 countries. Of the approximately 52 billion beverage servings of all types consumed worldwide every day, beverages bearing trademarks owned by or licensed to Coca-Cola account for more than 1.4 billion. The companys operations are supported by a strong infrastructure across the world. Coca-Colaowns and operates 32 principal beverage concentrates and/or syrup manufacturing plants located throughout the world. In addition, it owns or has interest in 37 operations with 95 principal beverage bottling and canning plants located outside the US. The company also owns bottled water production and still beverage facilities as well as a facility that manufactures juice concentrates. The companys large scale of operation allows it to feed upcoming markets with relative ease and enhances its revenue generation capacity. Robust revenue growth in three segments: Coca-colas revenues recorded a double digit growth, in three operating segments. These three segments are Latin America, East, South Asia, and Pacific Rim and Bottling investments. Revenues from Latin America grew by 20.4% during fiscal 2006, over 2005. During the same period, revenues from East, South Asia, and Pacific Rim grew by 10.6% while revenues from the bottling investments segment by 19.9%. Together, the three segments of Latin America, East, South Asia, and Pacific Rim and bottling investments, accounted for 34.8% of total revenues during fiscal 2006. Robust revenues growth rates in these segments contributed to top-line growth for Coca-Cola during 2006.

Weaknesses:
Negative publicity: The company received negative publicity in India during September 2006.The company was accused by the Center for Science and Environment

(CSE) of selling products containing pesticide residues. Coca-Cola products sold in and around the Indian national capital region contained a hazardous pesticide residue. These pesticides included chemicals which could cause cancers, damage the nervous and reproductive systems and reduce bone mineral density. Such negative publicity could adversely impact the companys brand image and the demand for Coca-Cola products. This could also have an adverse impact on the companys growth prospects in the international markets. Sluggish performance in North America: Coca-Colas performance in North America was far from robust. North America is Coca-Colas core market generating about 30% of total revenues during fiscal 2006. Therefore, a strong performance in North America is important for the company. In North America the sale of unit cases did not record any growth. Unit case retail volume in North America decreased 1% primarily due to weak sparkling beverage trends in the second half of 2006 and decline in the warehouse-delivered water and juice businesses. Moreover, the company also expects performance in North America to be weak during 2007.Sluggish performance in North America could impact the companys future growth prospects and prevent Coca-Cola from recording a more robust top-line growth. Decline in cash from operating activities: The companys cash flow from operating activities declined during fiscal 2006. Cash flows from operating activities decreased 7% in 2006 compared to 2005. Net cash provided by operating activities reached $5,957 million in 2006, from $6,423 million in 2005. Coca-Colas cash flows from operating activities in 2006 also decreased compared with 2005 as a result of a contribution of approximately $216 million to a tax-qualified trust to fund retiree medical benefits. The decrease was also the result of certain marketing accruals recorded in 2005.Decline in cash from operating activities reduces availability of funds for the companys investing and financing activities, which, in turn, increases the companys exposure to debt markets and fluctuating interest rates.

Opportunities:
Acquisitions: For the last one year, Coca-Cola has been aggressively adopting the inorganic growth path. During 2006, its acquisitions included Kerry Beverages, (KBL), which was subsequently, reappointed Coca-Cola China Industries (CCCIL). Coca-Cola acquired a controlling shareholding in KBL, its bottling joint venture with the Kerry Group, in Hong Kong. The acquisition extended Coca-Colas control over manufacturing and distribution joint ventures in nine Chinese provinces. In Germany the company acquired Apollinaris which sells sparkling and still mineral water in Germany. Coca-Cola has also acquired a 100% interest in TJC Holdings, a bottling company in South Africa. Coca-Cola also made acquisitions in Australia and New Zealand during 2006. These acquisitions strengthened Coca-Colas international operations. These also give Coca-Cola an opportunity for growth, through new product launch or greater penetration of existing markets. Stronger international operations increase the companys capacity to penetrate international markets and also gives it an opportunity to diversity its revenue stream. Growing bottled water market: Bottled water is one of the fastest-growing segments in the worlds food and beverage market owing to increasing health concerns. The market for bottled water in the US generated revenues of about $15.6 billion in 2006. Market consumption volumes were estimated to be 30 billion liters in 2006. The market's consumption volume is expected to rise to 38.6 billion units by the end of 2010. This represents a CAGR of 6.9% during 2005-2010. In terms of value, the bottled water market is forecast to reach $19.3 billion by the end of 2010. In the bottled water market, the revenue of flavored water (waterbased, slightly sweetened refreshment drink) segment is growing by about $10 billion annually. The companys Dasani brand water is the third bestselling bottled water in the US. Coca-Cola could leverage its strong position in the bottled water segment to take advantage of growing demand for flavored water.

Threats:
Intense competition Coca-Cola competes in the nonalcoholic beverages segment of the commercial beverages industry. The company faces intense competition in various markets from regional as well as global players. Also, the company faces competition from various nonalcoholic sparkling beverages including juices and nectars and fruit drinks. In many of the countries in which Coca-Cola operates, including the US, PepsiCo is one of the companys primary competitors. Other significant competitors include Nestle, Cadbury Schweppes, Grouped DANONE and Kraft Foods. Competitive factors impacting the companys business include pricing, advertising, sales promotion programs, product innovation, and brand and trademark development and protection. Intense competition could impact Coca-Colas market share and revenue growth rates. Dependence on bottling partners: Coca-Cola generates most of its revenues by selling concentrates and syrups to bottlers in whom it doesnt have any ownership interest or in which it has no controlling ownership interest. In 2006, approximately 83% of its worldwide unit case volumes were produced and distributed by bottling partners in which the company did not have any controlling interests. As independent companies, its bottling partners, some of whom are publicly traded companies, make their own business decisions that may not always be in line with the companys interests. In addition, many of its bottling partners have the right to manufacture or distribute their own products or certain products of other beverage companies. If Coca-Cola is unable to provide an appropriate mix of incentives to its bottling partners, then the partners may take actions that, while maximizing their own short-term profits, may be detrimental to Coca-Cola. These bottlers may devote more resources to business opportunities or products other than those beneficial for Coca-Cola. Such actions could, in the long run, have an adverse effect on Coca-Colas profitability. In addition, loss of one or more of its major customers by any one of its major bottling partners could indirectly affect Coca-Colas business results. Such dependence on third parties is a weak link in Coca-Colas operations and increases the companys business risks.

Sluggish growth of carbonated beverages: US consumers have started to look for greater variety in their drinks and are becoming increasingly health conscious. This has led to a decrease in the consumption of carbonated and other sweetened beverages in the US. The US carbonated soft drinks market generated total revenues of $63.9 billion in 2005, this representing a compound annual growth rate (CAGR) of only 0.2% for the five-year period spanning 2001-2005. The performance of the market is forecast to decelerate, with an anticipated compound annual rate of change (CAGR) of -0.3% for the five-year period 2005-2010 expected to drive the market to a value of $62.9 billion by the end of 2010.Moreover in the recent years, beverage companies such as Coca-Cola have been criticized for selling carbonated beverages with high amounts of sugar and unacceptable levels of dangerous chemical content, and have been implicated for facilitating poor diet and increasing childhood obesity. Moreover, the US is the companys core market. Coca-Cola already expects its performance in the region to be sluggish during 2007. Coca-Colas revenues could be adversely affected by a slowdown in the US carbonated beverage market.

Company Corporate statement of Coca-Cola:

The Coca-Cola Company and our bottling partners have conducted business in Colombia for more than 70 years. More than 2,000 Colombians are employed by Coca-Cola bottlers in Colombia. Bottling plants distribute beverages to approximately 500,000 retailers, creating additional jobs in sales, marketing and shipping. The Coca-Cola bottling operations in Colombia make beverages by Colombians and for Colombians; beverages are not exported out of the country to any other market, which is our business practice regardless of where we operate in the world. Over the past several decades, Colombia has experienced much internal conflict, which affects trade union leaders and other people from all walks of life. Despite the volatile environment, The Coca-Cola Company and its

bottlers have maintained operations and have worked to provide safe, stable economic opportunities for the people of Colombia. In a country where violence against union members has deterred all but 4 percent of workers from unionizing, 31 percent of Coca-Cola bottler employees belong to unions. Coca-Cola bottlers enjoy extensive, normal relations with 12 unions in Colombia and currently have collective bargaining agreements in place covering wages, benefits and working conditions. On average, wages for Coca-Cola workers are two to three times higher than the minimum wage. Through both collective bargaining agreements and their own initiative, Coca-Cola bottlers work with unions and the government to provide emergency cell phones, transportation to and from work, secure housing, and a host of other measures to protect employees. Additional security measures are routinely provided to union leaders and special measures are undertaken when a threat against unionized employees is brought to the attention of the bottler's management. We've also established a 24-hour hotline for employees to confidentially report any workplace concerns and/or complaints. We share global concerns regarding the unfavorable labor environment in Colombia. Ed Potter, our director of global labor relations, serves on the Applications of Conventions Committee within the International Labor Organization (ILO), which evaluates country implementation of ratified ILO treaties. In late October, Ed was part of a high-level tripartite visit to Colombia and met with government representatives, organizations representing workers and employers, and those responsible for investigating and supervising labor rights in Colombia. The Committee has made a number of recommendations based on its essential findings that impunity with respect to violence against trade unionists continues to exist and that trade unions face several obstacles in both law and practice regarding the full exercise of freedom of association. The ILO recommendations address some of the core issues contributing to the violence in Colombia. In the spring of 2005, an independent assessment of bottling plants in Colombia by the internationally respected and certified social compliance auditor Cal Safety Compliance Corporation confirmed that workers in Coca-Cola plants enjoy freedom of association, collective bargaining rights, and a work atmosphere free of anti-union intimidation. We are currently facilitating the design and development of an additional credible, objective and impartial independent third party assessment in Colombia during the first quarter of 2006. The assessment will involve

international labor organizations, non-governmental organizations and our most vocal critics. It will be conducted with the cooperation of our Colombian bottling partners. In December 2005, a major Norwegian financial firm, KLP, announced it is now satisfied that The Coca-Cola Company meets the ethical standards required of companies in which it invests. KLP had raised concerns about our system's labor practices in Colombia but specifically cited the audit conducted by Cal Safety Compliance Corporation as a key factor in its satisfaction that our Company abides by high ethical standards. A public statement made by SINALTRAINBEC, a Colombian union representing bottler employees, said that it has "not a single indication" that The Coca-Cola Company or any of its bottling partners have links to anti-union violence. Two different judicial inquiries in Colombia - one in a Colombian Court and one by the Colombian Attorney General - found no evidence to support the allegations that bottler management conspired to intimidate or threaten trade unionists. These allegations were the thrust of a lawsuit filed in 2001 against The Coca-Cola Company in a U.S. District Court in Miami; the Company was dismissed as a defendant. We are confident that as the case proceeds, the court will find no evidence againstCoca-Cola bottlers. Earlier this year, we signed a joint statement with the IUF, the international organization for unions in the food and beverage sectors. In that document, we acknowledge that "Coca-Cola workers are allowed to exercise rights to union membership and collective bargaining without pressure or interference. Such rights are exercised without fear of retaliation, repression or any other form of discrimination." We are committed to ongoing dialogue with the IUF. In July 2003, the IUF posted this statement to its Web site: "Sweeping, unsubstantiated allegations and assertions of the type found in the boycott appeal do nothing to help the cause of the unions that organize and represent Coca-Cola workers around the world, the majority of which are members of the IUF. The call for a boycott of Coca-Cola was unanimously rejected at the recent IUF global meeting that included over 27 IUF-affiliated organizations from 23 countries, representing more than 100 Coca-Cola workers' trade unions around the world." For as long as we've been in Colombia, Coca-Cola has supported programs that aid children, promote education, and bring relief to victims of the country's ongoing conflict. Earlier this year, we provided $10 million to start the Colombian Foundation for Education and Opportunity,

an organization that addresses the needs of victims of violence and is run by a group of well-respected Colombians, including Mr. Carlos Rodriguez (president of the Colombian United Confederation of Workers).

Variety of Coca Cola:

There are 27 different varieties of coke made by Coca-Cola First bottle of Coke was sold 120 years ago on May 8, 1886 in Atlanta, Georgia. Some of the other brands under the Coca-Cola Company are: Sprite Barqs Root beer Dasani Dr. Pepper Fresca Hi-C Minute Maid

Diet Coke:

In 1998 Coke international created its first ad for the celebration of the Muslim holiday of Ramadan. It was run in 20 countries worldwide. Coke is a Kosher drink, so it is sold internationally.

Coca-Cola Classic:

Coca-Cola Classic is recognized by 94% of the worlds population Approximately 10,450 Coca-Cola brand drinks are consumed around the world each second of every day

Coca-Cola Coke:

It is very popular among many Countries Most drinkable drick from coca cola side

Innovation of Coca-Cola In the Market place:

The foodservice industry is an evolving world. Every day new restaurant concepts open, new items appear on the menu, and new consumers walk through the door with their own individual wants and expectations. As the leading beverage supplier for the foodservice industry, our customers turn to us to provide the products, programs, packaging and marketing support that are in tune with the ever-changing playing field of foodservice. As a result, we've become an organization where innovation is paramount to our success. Through innovation, we have helped, and will continue to help, our customers maintain and grow their businesses, especially in uncertain economic times. Some of these innovations offer consumers more beverage

choices; some tap into growing categories like tea, coffee and smoothies; and some provide custom beverages and food/beverage pairings. Let's look at some recent examples:

Our new Bevariety beverage dispenser allows consumers to choose from 12 brands and multiple flavor shot options, totaling more than 50 different drink combinations, in the same footprint as the existing legacy dispenser. Gold Peak variety tea dispenser is a self-service urn that offers four different tea flavors, offering choice and variety in the growing tea category. Juan Valdez caf REALE system enables foodservice operators to serve hot, fresh cups of Colombian coffee on demand (no brewing required). Our Minute Maid two- and four-valve juice dispenser delivers healthy beverage choices throughout the day, such as orange juice at breakfast and lemonade in the afternoon. The Coca-Cola Brands with Meals website provides customers with suggested food and beverage pairings, and a tool to develop specialty beverages with chefs from the Culinary Institute of America.

In addition, we continue to develop beverages, programs and promotions to meet specific customer needs, such as the successful custom milkshake, crew training and marketing materials we recently created for one of our customers. But innovation, like any change, comes with some inherent risk. As an organization, we've been able to learn from innovations that worked as well as those that didn't. Fortunately, many of our innovations have met with business success. But on the occasions they haven't, we've used that knowledge to do things a better way. We've learned from past experiences to introduce an innovation only when it's ready. Those experiences, and the lessons learned, have helped guide the launch of Bevariety and other innovations still in development. If you think about it, a fountain innovation is what started this great Company. A simple combination of syrup mixed with sparkling water created what is now the No. 1 beverage company in the world. We know firsthand that innovation is critical to our -- and our customers'-- continued growth and success. That's why innovation will keep our Company moving toward undisputed beverage leadership and our customers ahead of the competition. There are

so many new things to offer our consumers and customers and revolutionary innovations still to come.

Hierarchy of Coca Cola:

Coca-Cola started life in 1886 as a soda fountain beverage. A typical local or store brand, it spread to other outlets rapidly. Bottling was not an initial priority. In fact, two attorney bought the bottling rights for most of the US for a handsome $ 1. Nokia was originally a brand of paper and cardboard. It pre-dates Coke, tracing its origins back to 1865. Today it is the world's eighth most valuable brand worth $24 billion (Coke No.1 at $67 billion). The company was in paper; it is still in the communications business. All brands have small beginnings. Even in these days of simultaneous global launches, there is an enormous amount of test marketing earlier. In India, cities like Hyderabad, Vijayawada, and areas like Lokhand wala in Mumbai are happy hunting grounds for the test marketing fraternity. Sometimes new brands spend as much as a year out there before they are taken regional or national. So is there a hierarchy in brands? At the bottom is the store brand or the private label (a very localized brand). Then comes the regional brand, followed by the national brand and the global brand. The store brand needs the least investment and the global brand the highest. Given the same core product, the global brand cost the most. An obvious corollary: the margins on store brands are the least. Is there also a natural progression from a store (local) brand to regional, national and finally global? What does it take to move from one orbit to the other? It is an increase in energy level and really need three inputs. First is the communication input, which means advertising, promotions, etc. Then is the availability input, which is essentially distribution. Finally, it is the unpredictability input. Unpredictability is what will make a new brand successful against the already entrenched. The P&G s of the world are prepared for the ordinary and the common place. They take a hard knock when they don't know what hit them. The surprise could be in price. It could be in distribution. Would you think of getting salt with your morning newspaper? The Dainik Bhaskar group, which has launched the highly successful Bhaskar salt, can do that because it owns the No.1 Hindi daily in India. It could be in advertising. French Connection United Kingdom was a tired old fashion house. Then it started advertising under its acronym FCUK, and turned a loss of 5 million pound in 1992 into a profit of almost 39 million pound last year. Progress never comes overnight.

Everyone has to climb the ladder step by step. There are several Indian brands that are doing it. Anchor is going global. Bajaj Auto, Tata motors and Raymond are already there, albeit in a small way. The challenge for India today is to turn from an outsourcing center to a producer of India-owned branded goods.

Management style of Coca-Cola:

The success that the management team has in motivating its employees to meet their objectives is based on the management style they adopt. There are three main management styles; autocratic, democratic and a laissez-faire style.

The North London Coca-Cola branch has an ethos or culture than is run in a laissez-faire style, meaning hands off approach. If the workers are meeting their KBI, Key Business Indicators, then the managers and directors of the company take this relaxed style of coordinating their business. They have a vision to refresh everyone everyday and values to take pride in their work, to be honest, fair and determined to win and have a passion for action. With the same spirited investment as the world's premier marketer and beverage industry leader for more than 118 years, Coca-Cola are focused on strategic workplace programs that help assure the success of our commitment to embracing the similarities and differences of people, cultures and ideas. Diversity Advisory Council - the Companys corporate Diversity Advisory Council consists of a representative group of employees from all levels, functions and business units of the organization. The Council develops recommendations for senior management on advancing the company's efforts towards achieving our diversity objectives. Employee Forums Coca-Cola believe that a sense of community enhances their ability to attract, retain, and develop diverse talent and ideas as a source of competitive business advantage In the United States, through employee forums, employees can connect with colleagues who share similar interests and backgrounds. In those

forums and elsewhere, employees support each other's personal and professional growth and enhance their individual and collective ability to contribute to the company. The success at Coca Cola is due to their laissez-faire culture and culture is important because it can affect many people and things to do with the business. If the culture of the business is not clear, it can affect the presence and punctuality. This means that if Coca Cola had a firm and unfriendly culture it could result in their staff not coming to work because of a poor working atmosphere, or they might not like the work they are given so they either come in late or take a day of work. This would result in the business losing out on work, and have less time to call in for a replacement. The culture of Coca Cola could have an affect on industrial relations, between managers and workers. So i Coca Cola didn't have a warm and genial culture it would cause more disagreements between staff and managers and staff would not be motivated to work. For example, staff may have to cut down on rest days, this could cause arguments as all staff would be tired from working everyday and would not have time to recover or time to relax. However, if the company had a inviting culture then the managers and staff would get very well as staff would have less stress to compete with and would have a friendly environment to work in, and work could be done more efficiently. Coca-Cola also has a hierarchy of visions and values for their company, as follows; Team working is a sub culture within the Coca-Cola Company. Teams are accountable for activates, for example: Quality Utilization Yield Within this system, there needs to be a balance of Utilisation, the speed the factory works at, and the Yield. The Yield is the amount

of raw materials lost or wasted. Teams also vary in number and are lead by a team leader. * Safety * Housekeeping * Continuous Improvements * Recruitment, training and resource planning * Budgetary planning and control. A part of the culture and management style in the Coca-Cola Company in Edmonton, is its Employee Engagement. This consists of five points; * Realizations, delivery of hard stuff is simply not enough. * Openly acknowledge this to workforce * Do what it takes to engage every employee in the space of 16 days * Involved everyone in the design of the management style consistent with our vision and values * Identified talented individuals across the operation act as internal facilitators to train out the new behavioral standards On the factory floor at Coca-Cola, there is an autocratic system of management where are controlled by managers and follow procedures. There are also elements of democracy, by teamwork and uniform. Employees of the company all wear the same uniform, even if they are a manager, director or team leader. This means there is no demarcation and there is the same uniform for each level of the hierarchy so nobody feels intimidated. The CCE have also adopted a Quality Culture and to maintain quality within their products they have a TQM department. This means Total

Quality Management where they have staff who deal with the quality of the Coca-Cola.

Criticism of Coca-Cola:
The Coca-Cola Company and its products have been criticized by various sources for various reasons including negative health effects resulting from consumption of its products, exploitative labor practices, high levels of pesticides in its products, building plants in Nazi Germany which employed slave labor, environmental destruction, monopolistic business practices, hiring paramilitary units to murder trade union leaders, and marketing unhealthy products to children.

Baycotts: The boycott example which started in Ireland has continued to spread across the world, with the National Union of Students in Britain voting to support the boycott in April 2005. UNISON, the largest trade union in the UK, also voted to support the boycott at its 2004 National Delegate Conference. ECOSY, the European Young Socialists, a federation of youth wings of all the mainstream socialist and social democratic parties in the EU, voted to support the boycott in March 2005 following a motion from the Irish Labour Youth delegation. Campuses and labor and trade unions in the United States, Italy, France and Canada, amongst others, are also campaigning for the boycott to spread. The University of Michigan and New York University banned Coke products from their campuses, bringing the number to over 23. Several US universities have switched to Pepsi in school-run facilities (not including vending machines, but including eateries and sports arenas) in support of the boycott.

Suggestions about Coca cola:

I'd like to suggest that you take the aspartame out of your diet pop and start using splenda instead. I would also like to suggest that you stop using phosphoric acid and use citric acid in your Coca-Cola beverages, just like you do in Sprite as itis very bad for major calcium depletion to the bones. I would like to suggest that you make non diet forms. Lastly, I would like to suggest that you make non diet Caffeine Free forms of Vanilla Coke, Cherry Coke, and Lime Coke just like you have with Coca Cola Classic. I especially like the idea of caffeine free versions of different flavors. I am a soda junkie but gave up most caffeine a few years ago, which makes my choices rather limited. Regular Coke has always been my favorite, but I do occasionally like a different flavored soda. It would be nice if I could have a vanilla coke or cream soda once in a while without ricocheting off the walls all night!