Coca-Cola Philippines Swot Analysis

SWOT ANALYSIS OF COCA-COLA PHILIPPINES

STRENGTHS

Brand Equity

Coca-Cola is known for its brand identity. The company’s longevity in the industry supports their ownership of leading brand in the soft drink market. They launched its newest global campaign “Taste the Feeling” reaching brand equity not just here in local market but also all over the world.

Marketing Strategies (emotional branding)

Coca-cola has developed modern strategies in marketing their product. Every endorsement/advertisement targets all ages – be it through life programs, physical marketing collaterals or social media. Its success depends on their ability to connect with consumers by providing them with a wide variety of choices to meet their desires, needs, and lifestyle.

Financial Strength

Even now, Coca-cola is one of the highly valued companies in the world. Its business expansion and transformation of operations continue to generate income as they continue to exist in the industry.

Investments in own brands through product advertising, expansion of beverage portfolio

global marketing campaign generates positive numbers to the company.

WEAKNESSES

Water Management

Scarcity of water is one global issue directly associated with the business. Coca-Cola Philippines have recognized this fact and have long informed their investors that water is a limited natural resource in many parts of the world and its availability is a key challenge facing their businesses. Thus, not only Coca Cola Philippines but also other major multinational companies are actively working to improve water availability, quality and sustainability, for both continuing their operations and for the benefit of the communities where they operate.

Health issues

Coca-Cola is rich in sugar, especially sucrose, which cause dental caries when consumed regularly. Besides this, the high caloric value contributes to obesity. Both are major health issues in the developed world. According to the Harvard School of Public Health in 2015, "...people who drink 1-2 cans of sugary beverages daily are 26% more likely to develop type 2 diabetes, Medical News Today reported on a study claiming 184,000 global deaths each year are down to sugary drink consumption.’’

OPPORTUNITIES

Brand Diversification

Coca-cola may continue to develop their products other than beverages that will fit the need of different market segments here in the Philippines.

Commitment to Transparency

Coca-Cola shares up to date financial status, investment disclosure, efforts to address obesity and activities related to the welfare of the community.Moreover, Filipino citizen were delighted when Coca-cola announced its goal to safely return to communities and nature the same amount of water they use in the production of beverages by 2020 in order to empower lives of its market.

THREATS

Direct competitor offering the same product

Companies like Pepsi Philippines and RC Cola also penetrated Philippine market share for soft drinks and they might offer products better than product line of Coca Cola Philippines

Indirect competitors offering nutritious selection

Coca-cola Philippines’ product includes high amount of sugar making it a threat for this beverage manufacturers since Filipinos start to become health conscious in food/drink intake.

COMPETITIVE POSITION OF COCA COLA PHILIPPINES

Coca Cola’s other main income stream

​Coca-Cola manufactures and sells concentrates, beverage bases and syrups to bottling operations. Its bottling partners manufacture, package, merchandise and distribute the final branded beverages to customers and vending partners, who sell their products to consumers.

Coca-Cola Philippine’s report for the first quarter of 2017 on track to deliver full year targets below:

- Net Revenues declined 11%, reflecting unfavorable impacts from structural changes of 10% and foreign currency of 1%

- Organic Revenues (Non-GAAP) Were Even, Which Included the Impact of Two Fewer Days in the Reporting