Roughly_Done

Part A How coke become an Aussie brand: Like most amazing stories, it started with a small idea. A delicious and refreshing idea, as described by Coca-Cola inventor Dr John Stith Pemberton in his first advertising campaign. The year was 1886, and Dr Pemberton, a chemist from Atlanta, USA, needed to test the theory. With jug in hand, he walked down the street from his premises to Jacob’s Pharmacy where staff tasted the syrup and soda mix. It went on sale for five cents a glass. Dr Pemberton’s bookkeeper, Frank M. Robinson, also had an idea. He thought two ‘C’s would look good on a label, and came up with the new product’s name. He handwrote it on a label, and with a stroke of the pen created an icon that would last more than a hundred years. * Early Days in Australia Fast forward to 1917, and an accountant in Perth sought the rights to produce Coca-Cola in Australia. But it wasn’t until 21 years later, in 1937, that The Coca-Cola Company sent a team to Australia to set up a production facility. The first bottle rolled off the line in a small building on the corner of Crescent and Dowling Streets in Waterloo, Sydney. It all rested on the shoulders of just ten staff and a fleet of four trucks. The early days for Coca-Cola in Australia were not easy. The capital city markets were small by international standards, and geographically separated. It was also an unknown product, initially sold to indifferent shopkeepers by the bottle – literally. A former Coca-Cola salesman from Adelaide, Bob Jemison, recalled vigorously persuading a shopkeeper to take a single bottle. The following week, he talked the shopkeeper into taking two bottles. By 1939 plants were operating all across Australia – just in time for the outbreak of war. In 1943, a turning point arrived when President of The Coca-Cola Company, R. W. Woodruff decided to make Coca-Cola available to all US service men and women, wherever they were, whatever the cost. Australian plants supplied not only Americans but Australian service men and women as well, from urban bases to ‘jungle units’ stationed in the Pacific theatre. During the war the small Coca-Cola plant in Brisbane became the focus of this operation, with manufacturing often running 24 hours a day to service the United States South Pacific headquarters, also located in Brisbane. * Post World War Two By 1950 the post-war economy had stabilised, and The Coca-Cola Company began to grant franchises across Australia. At one stage, Coca-Cola was bottled in 30 different locations throughout Australia from small, single-town bottler serviced country towns such as Inverell and Cairns, to large conglomerate bottlers spanning regional areas. Ultimately these bottling companies and franchise territories where consolidated into the single territory held by Coca-Cola Amatil today. Innovation in computerised bottling systems, new delivery methods, and the introduction of high-speed packaging technology has helped grow the reach of Coca-Cola across the Australian market since the heady days of the 1950s. * Today Today Coca-Cola Australia together with its bottling partner, Coca-Cola Amatil offer more than 240 products including regular and low kilojoule soft drinks as well as waters, sports drinks, energy drinks, teas and flavoured milk. Its leading brands include Coca-Cola, Diet Coke, Coca-Cola Zero, Sprite, Powerade, Goulburn Valley and Pump to name a few. This part consists of macro environmental factors and their impact on industry: As industry we discuss Soft Drink Industry: Industry Structure The Soft Drink Manufacturing industry has lost its fizz. During the five years through 2012-13, industry revenue has grown at a weak annualized rate of 0.9% as deteriorating economic conditions, inclement weather and changing consumer trends weighed against the industry. Since the global financial crisis in late 2008, the economy has gradually weakened under the weight of escalating domestic and global uncertainty. Consumers have generally become less confident, choosing to pay down debt rather than spend on discretionary purchases. Demand for carbonated beverages has been affected by changing social trends, with more health-conscious consumers moving away from sugary, high-calorie beverages. This has prompted a shift to low and no-sugar carbonated soft drinks. Sports and energy drinks have proved an opportunity for producers, with both products recording stellar growth over the period. Another modest year is expected in 2012-13. The weak retail environment has been the major impediment to growth. IBISWorld estimates industry revenue to grow 2.0% over the year to reach $3.5 billion. Industry conditions are forecast to improve over the five years through 2017-18, underpinned by strengthening demand and ongoing marketing initiatives and product innovation. Rising health awareness and concern at the high sugar content of some carbonated beverages will mean diet varieties continue to increase their share of the market. Asahi is expected to stimulate innovation in the industry as the company implements products and strategies from its home market. Sports and energy drinks are expected to sell well, although growth is forecast to slow from the robust rates registered earlier as the market for the products matures. Producers are anticipated to introduce more environmentally friendly packaging and products in response to changing consumer tastes. The rise of input prices and the continual growth of private labels, although at a slow rate, will put pressure on profit margins. IBISWorld forecasts industry revenue to grow at compound annual rate of 2.7% over the next five years to reach $4.1 billion in 2017-18, including growth of 2.8% over 2013-14. The set of fundamental information that affects a business or an investment's value. Various economic factors need to be taken into account when determining the current and expected future value of a business or investment portfolio. For a business, key economic factors include labor costs, interest rates, government policy, taxes and management. Demographics: Specific demographic factors which identify and distinguish a target population or market. Legal Political Social conditions Technological; changes: External Environmental Forces When it comes to technology, in recent years there are many emerging trends that I feel that Coca-Cola could use to their advantage. The popularity of services such as Twitter and Facebook may give Coca-Cola the opportunity to spread the word about their products to territories that haven’t yet been reached by their competitors. Since the majority of people use these services all over the world, we feel that it is a great place for them to advertise. While it is still very important to have advertisements on television, more and more people are using the internet, and we feel that by collaborating with internet companies, they would be able to increase their profits. In addition to the increased use of the internet, another technology trend that Coca-Cola should be aware of is the production of bio-degradable bottles. Today’s plastic bottles are very bad for the environment and people are aware of this. Until recently, there was only technology to produce plastic that was made from petroleum. Now though, in the year 2010, there is technology to produce plastic that is made from plants. This plastic, also known as PLA or polylactide, emits fewer greenhouse gases, uses less energy than other plastic bottles and is also recyclable and compostable. Natural forces On top of this, sales have been constrained by wetter and colder than average weather across much of the country, particularly with the Queensland floods in 2010-11 and the wet summer of 2011-12 in eastern Australia. Product The major product segment within the industry is cola-flavoured carbonated soft drinks (CSDs). This product segment includes diet cola and cola CSDs with flavours such as cherry and lime. Over the five years through 2012-13, rising health awareness has driven an increase in low-sugar and diet cola varieties. IBISWorld estimates that about 22% of cola CSD sales are low in sugar content. Cola soft drinks have performed well despite weaker economic conditions, as consumers turned to familiar brands and traded down from high-value fruit juice and smoothies. Coca-Cola has remained the highest selling brand of soft drink in Australia. Other flavoured CSDs account for a further 28.1% of industry revenue. Flavours include lemonade, orange, cherry, lime, blackcurrant, apple, pineapple, grapefruit, lemon, tropical and other mixed fruit flavours. Lemonade is the most popular of these, followed by orange flavoured. Due to rising health concerns and the rising popularity of functional beverages, carbonated soft drinks are expected to lose out slightly against functional beverages as a proportion of the total share of industry products. Reference: Read more: http://www.businessdictionary.com/definition/macro-environment.html#ixzz2cr6yB8uw Read more: http://www.businessdictionary.com/definition/economic-factors.html#ixzz2cr7vOpkX Read more: http://www.businessdictionary.com/definition/demographics.html#ixzz2cr8HXWQV