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NEW KIM STRATEGIES FOR THE COCA COLA İÇECEK A.Ş

NEW KIM STRATEGIES FOR THE COCA COLA İÇECEK A.Ş. Prepared by Merve SARI Sami KOEN. KIM 508 Course, Dr. Kırmızı – Term Project, Milestone IV. Outline. Brief Info about the Company 2. Additional, Market Info Beverages Positioning in Turkey Market

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NEW KIM STRATEGIES FOR THE COCA COLA İÇECEK A.Ş

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  1. NEW KIM STRATEGIES FOR THE COCA COLA İÇECEK A.Ş Prepared by Merve SARISami KOEN KIM 508 Course, Dr. Kırmızı – Term Project, Milestone IV

  2. Outline • Brief Info about the Company • 2. Additional, Market Info • Beverages Positioning in Turkey Market • Competitor Info (Pepsi, Cola Turka - others do not make sense) • Common Urban Legends & The Company’s Responses, SFAB pg.37 • Global Reporting Initiative's (GRI) Indicators Table, CSRRpg.69-74 • 3. New Strategy in the frames of Business Model Innovation and New Product Development Innovation • Innovaxis – Vending Solutions • Şerbetçi Style • Insulated Bottles (Cold) • 4. New Strategy in Knowledge Management with the focus on customers • Customer Knowledge Management (CKM)

  3. Source: Annual Report, 2009

  4. Source: Annual Report, 2009

  5. Beverage Market in Turkey • Research by AC Nielsen: • Ready-to-drink alcohol free beverages • 3.6 billion TRY (=3.8 bil. Lt) • Sparkling Beverages : 1.9 billion Lt (44.9% share in TRY) • Bottled water : 949 million 609 tho. Lt (26.5%) • Fruit juices and nectar : 491 million 607 tho. Lt (12.7%) • Ayran : (10.9%) • Sparkling water : 157 million 739 tho. Lt ( 4.1%) • Ice tea : (0.7 %) • Iced coffee, energy and sports drinks (0.2%)

  6. Light Cola Market : 81.253 TRY(sugar free beverages increased this amount 30%) • Diet Cola Consumption: Mostly women, Ages 20-35; since men do not consume Light products • Through the differentiation in promotion, they succeeded to increase men’s consumption • Pepsi Max “maximum taste, no sugar” • Coca Cola Zero “sugar free”

  7. Picture slide Comparison 1886 – Coca-Cola formulated, and the company was founded. 1982 Diet Cola 2004 Cola Zero, originated from the USA (2008 in TR) Coke has identified 32 possible beverage occasions each day. In addition, several new types of beverage types emerged: sports, water, teas, health, and the mom and kids categories. Coca-Cola Cherry Zero,Coca-Cola Vanilla Zero,Caffeine Free Coca-Cola Zero... • 1898 - Pepsi-Cola formulated and the company was founded. 1903 first production. • 1964 Diet Pepsi • 1993 Pepsi Max, originated from UK, Italy, Turkey http://www.pepsimax.com.tr/ • Pepsi had beaten Coca-Cola to market with nearly every big product innovation in recent years, from diet cola in the 1980s to cola with a lemon twist in 2001 (with Cherry Coke and Vanilla Coke being the exceptions in Coca-Cola's favor). • Pepsi made the product innovation FIRST, but Coca Cola imitated it BEST.

  8. Pepsi’s Max triggeredCoca Cola’s Zero

  9. To sum up... • Coca-Cola Cherry ZeroSince 1964 in TR... • Coca Cola has the leading share, 63 % in Cola Market • “ “ “ “ , 53 % in Sparkling Bev. Market • Pepsi is the first competitor, as the second player in the Market • Cola Turka • Ülker purchased Çamlıca Gazoz in 2002 and entered into the market. • Through the launch of Cola Turka in 2003, Ülker increased its turnover 60% in beverage segment. • In 2008, Ülker has 18 brands in the sector. • Kristal Kola, Le’Cola are the other little players • RC and Bixi Cola were so during 80s.

  10. As for what CCİ should do more

  11. CCI at Workplace... • Increase performance in the biannual EmployeeEngagement and Satisfaction Survey in Turkey and to usethe result of this study in other regions in our operating geography, • Perform activities stated in the action plan in a timely mannerin order to achieve at least 70 points in the EmployeeEngagement and Satisfaction Survey in Kazakhstan and Jordan, • Increase participation in the internal customer satisfactionsurvey in Turkey by 50% and to ensure a 5% improvementin the services of the Turkey Administrative Affairs department, • Increase Corporate internal employment to 20%, • Prepare backup and individual development plans inKazakhstan and Jordan during the first half of the year,

  12. ...CCI at Workplace • Expand open door meetings, • Provide development training opportunities for employees in technical departments, • Develop CCI’s incident investigation processes throughnew learning tools to increase precautionary exercises, • Set up a functional occupational health and safety programand expand it across our other operating geography, • Expand Incident Management and Crisis Resolutiontraining in CCI’s international operations, • Develop internal communication with online bulletins andpublish the CCI Bulletin for distribution in 10 countries,including the bulletin project in Kazakhstan, • Reduce the ratio of overtime cost in Kazakhstan and Jordan, • Enhance auto control systems by establishing an internal leadership mechanism.

  13. CCI at Marketplace • Focus on the supply chain and on the productivity ofmarketing expenses and investment expenses in areaswhere the impact of the economic crisis was strongest, • Transfer successful productivity applications from the Turkishsupply chain to international operations, • Maintain long term profit distribution policies, • Increase the ratio of procurement from local suppliers throughout all procurement procedures, • Increase the number of audits of suppliers, • Complete the processes for ISO 18001 and • ISO 22000 standards at the Jordan plant, • Respond to consumer inquiries and complaints within the same day, • Continue to distribute the brochure “Straight FactsAbout Beverages" to key stakeholders, • Support the scientific community and opinion leaderswho work with our products

  14. CCI at Environment • Replicate CCI Turkey’s water consumption performance in other regions, • Reduce CO2 emissions in Turkey to 23 g/L, • Promote and accelerate research in fuel-efficient driving techniques, • Increase environmental awareness among suppliers,distributors and customers and initiate new studiesto make long-term performance evaluations, • Supply 5,000 coolers with an energy management deviceinstalled, providing 25% to 30% energy savings in Turkey, • Save an average of 3,500 tons of resin annually through lightweight packaging.

  15. CCI at Community • Build on cooperation with local administrations, • Develop dialogue to better understand social concerns and priorities and evaluate feedback, • Donate 3% of our pre-tax profit to foundations, • Continue the Employee Contribution Fund, • Enhance cooperation with related non-governmentalorganizations to increase public awareness on environmental issues, • Provide internships to 10 students as part of the Koza Project, • Support the INJAZ program by having senior CCBCJmanagers give courses to local students about business life.

  16. As for Innovation

  17. As for Innovation • Insulated termos mugs which enables instant cooling as soon as it is opened.

  18. Source: M.Gibbert, M. Leibold, G.Probst; Five styles of Customer Knowledge Management, and how smart companies put them into action, Pg.3

  19. As for Knowledge Management Source: B. J. Pine II and J. H. Gilmore; Welcome to Experience Economy, HBR, July-August 1998, Pg.98

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