Coca-Cola Philippines Swot Analysis

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Calendar and the Shift of the Easter Holiday

- Price/Mix Grew 3% with Balanced Contribution Across the Operating Segments • Operating Margin and Comparable Currency Neutral Operating Margin (Non-GAAP) Expanded More than 90 Basis Points and More than 220 Basis Points, Respectively

- EPS of $0.27 and Comparable EPS (Non-GAAP) of $0.43

- On Track to Deliver Full Year Organic Revenue (Non-GAAP) and Comparable EPS (Non-GAAP) Targets • Expanding Our Existing $3 Billion Productivity and Reinvestment Program to Capture an Incremental $800 Million in Annualized Savings by 2019

Business Strategy

1.Increasing efficiency and productivity

- “Zero based work” a way of looking at Coca-Cola’s business that starts from the assumption that organizational budgets start at zero and must be justified annually, not simply carried over at levels established in the previous year; cut spending on nonmedia marketing like instore promotions; found new savings in our supply chain around the world

2.Simplification of company line

- reshaped business

- removed a layer of functional management and connected regional business units directly to headquarters

3.Refocus on core business model

- expansive portfolio includes more than 500 brands, including sparkling beverages, juices and juice drinks, coffee, tea, sports drinks, water, valueadded dairy, energy and enhanced hydration drinks

Competitive Advantage

Coca Cola Philippines has competitive advantage over its competitors in terms of Operations, Cost control, Brand portfolio, Channel marketing, Collaborative customer relationship.

Operations – Coca cola has outsourced the bottling operation to the franchisee, FEMSA which is the largest Bottling franchisee of the Coca-Cola trademark beverages in the world. It helps the company in capturing important growth opportunities in under-developed non-carbonated beverage segment and in strategic acquisitions by entering into agreements to jointly acquire companies with The Coca Cola Company.

Cost control – Its diversified product portfolio, outsourcing operations & economies of scale helps it in cutting its operational cost & increase its profitability.

Strong Brand Portfolio – Company offers a powerful and wide portfolio of beverages to its customers, and continuously explores promising beverage categories to capture growth in its different market. Its beverage portfolio consists of carbonated soft drinks, bottled water, juices, orangeades, iso-tonics, teas, energy drinks, milk, coffee and even beer in some markets such as Brazil.

Collaborative customer relationship – Coca Cola strongly believes in participative marketing creating shared values for all stakeholders. Tailoring its extensive portfolio of products and packages for their stores based on the local market’s socioeconomic demographics relevant consumption occasion and the store’s distinctive characteristics.