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Coca-Cola expansion in africa

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Jessica Falarski

on 21 May 2011

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Transcript of Coca-Cola expansion in africa

Coke Brand
Profolio Diversificiation
Supply Chain
Employee Engagement
Live positively Room for growth:
Annual consumption of Coca-Cola
Kenya - 39 servings
Mexico - 665 servings
China In 1989 global sales for Coca-Cola hit $2.6 billion
20 years later was only $2.9 billion in 2009
Stock hit high price of $86 in 1998
Currently stock is at $68.

Are there no more world's to conquer?
Has Coca-Cola reached saturation point? Global sales for Coca-Cola hit $2.6 billion in 1998 and $2.9 billion in 2009. Market share in Africa
Coca-Cola - 29%
Pepsi - 15% Problems: The U.S. soda market has declined for five consecutive years Coca-Cola invented in 1886 by pharmacist
John Pembreton in Atlanta, GA.

Operations in over 200 countries
Over 1,000 bottling partners
There are over 500 beverages in their portfolio of brands
Serve 1.7 billion beverages a day around the globe Goals: Opportunities: Problems: 1 billion consumers will come into the middle class during the coming decade, mostly in Africa, China, and India. Background Brand Coke
- Ensure next generation falls in love with Coca-Cola

Portfolio Diversification
- Accelerating sustainable balanced market

Supply Chain
- Overcoming supply challenges of rapidly expanding business

Live Positively
- Provide brand awarness support through Coca-Cola Foundation "From the bustling cities of China to the remote villages of South Africa, I walked away with one overriding impression of The Coca-Cola Company. What I saw and continue to see in the second decade of the 21st century is a company that is steadily and strategically advancing its momentum all around the world." Expansion in Africa is the solution to Coca-Cola's Growth Key Strategies: Of the 36 key countries in Africa, 19 contributed 80% of operating income in 2009.
Goal to have all 36 countries contributing 80% of income by 2020 In 2008, Coca Cola brought in new CEO
Muhtar Kent Opportunities: Building Brand Loyalty in Africa Portfolio Diversification Demographics change - Africa and Eurasia are growing Consumption of Coca-Cola across the globe How are they going to go it? "Ethiopia is one of the poorest countries on earth but with a population of 80 million. Sales have surged fivefold in the past decade to the extent that it now qualifies as a large market for Coke, and one with potential to grow another five-fold, over the next ten years." -Paul Fourie, Coca-Cola
Strategy and Business Planning Director for Eurasea and Africa Group Supply Chain Supporting local "ducas" - small stores to carry Coca-Cola
Aggressive courtship of small stores helped boost per-capita consumption
Supplying them with refrigeration units
Educating store owners on selling techniques Live Positively Coke has been in Africa since 1929
Continent's largest employer, with 65,000 employees and 160 plants.
Market share is 29% in Africa and the Middle East
Adds up to 9.1 billion liters of beverages a year.
Pepsi's market share is 15% Coca Cola current Operations in Africa World Cup in South Africa, 2010
World Cup in Qatar, 2022 Results Sales in one test street in Johannesburg sales rose from 5,000 to 14,000 cases in the first six months of the year.
2011 First-quarter net income climbed 18% as global sales of its sodas and juices grew.Net income rose to $1.9 billion, or 82 cents a share, compared with $1.61 billion year prior Coca-Cola Foundation commit an initial seed funding of $6 million to deliver safe water access for deprived communities in three African Countries.

In South Africa's slum of Alexandra with a population of half million and unemployment of 65%
Coke has sponsored a water well
Residents can pay 3 shillings to fill oil jugs with water
Pay 2 shillings to clean up at a toliet facility In 2009, 59 million African households earned at least $5,000 which is the point when families begin to spend half their income on nonfood items.
That number could reach 106 million households by 2014. Source: Coca-Cola Strategy Group Source: Coca-Cola Strategy Group Source: Coca-Cola Company Website
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