Coca Cola Marketing Report

Executive Summary

This report accesses and evaluates the company Coca Cola Amatil ltd., and also considers the opportunity for development of a new product.

When considering a new product development for a conglomerate like Coca Coca Amatil ltd. various social and economic factors were analysed, in the current market situation where consumers have become extremely conscious towards their health and the health of their family.

This report begins with information about Coca Cola Amatil ltd. and continues with data about the current market opportunities and also uses the market trends to prepare a justification of launch, which finally concludes with a marketing mix and projected growth of the product.

Purpose of the Report

This report has been prepared with complete understanding of Coca Cola Amatil ltd and how it functions, which market it targets and their product innovation strategy.

A functional water drink is the new product idea for CCA, it will be the answer to all consumer needs for a product which would provide complete nutrition, keep their weight under control and help you rehydrate after a hangover and all this whilst keeping the price within a limit. The product is indigenous and can capture bought markets of the bottled water industry and the functional drink industry as well.

1. OVERVIEW OF COCA COLA AMATIL LTD (CCA)

(Ownership, mission, product lines, size, market capitalization)

Coca-Cola Amatil (CCA) manufactures, distributes and markets carbonated beverages, still and mineral waters, fruit juices, coffee and other alcoholic and non- alcohol beverages, and the processing and marketing of fruit, vegetables and other food products. The company's mission has been to be the supplier of choice every time in each category in which they operate (Source: www.ccamatil.com.au). CCA produces Coca-Cola in Australia; non-sugar colas such as diet Coke and Coca-Cola Zero; bottled water brand, Mount Franklin; and the sports beverage, Powerade. The company mainly operates in Australia, Indonesia, Fiji, Papua New Guinea and New Zealand. It is headquartered in Sydney, Australia and employs about 15,670 people (Source: CCA Annual Report 2007).

1.1 Business Description

CCA is the fourth largest bottler for its flagship company, and was awarded bottler of the year 2008 under their group managing director TERRI Davis. Mr. Davis has been a part of the organization since November 2001 with a background in Global Wine Industry for 14 years, in 2001 the company‘s 95% sales came from carbonated beverages Mr. Davis has promoted product innovation which has resulted in larger product base which we see today. Their CFO Operations is NESSA O' Sullivan who joined the company in 2005 and the group CFO is KEN Mckensie who has been with the company since last 23 years. (Source: www.ccamatil.com.au) (Source: Kaplan, Andrew Beverage World; 9/15/2008,)The Group operates in two business segments, the Beverage and Food & Services . The Beverage business is further divided into non-alcoholic and alcoholic business. Within the non-alcoholic beverage business, the Group manufactures, distributes and markets carbonated soft drinks. CCA's alcoholic business distributes premium beer brands for Pacific Beverages Pty Ltd, the joint venture entity CCA formed with SABMiller plc in August 2006. (Source: BRW; Ferguson, Adele AFERGUSON@BRW.FAIRFAX.COM.AU) From April 2007, Pacific Beverages Pty Ltd began selling and distributing the premium spirit portfolio of global distributor Maxxium. The Food & Services segment comprises the SPC Ardmona (SPCA), Neverfail, Quirks, Grinders and Mt.Franklins businesses. Within the Food & Services segment, the Group processes and markets fruit and other food products, provides cold drink equipment to the Australian Beverage business and third party customers and distributes bulk water and coffee products. The Food & Services segment was established following the outcome of the strategic review announced in April 2007(Source: CCA Annual Report).

Financial Summary

Income Statement 2007 2006 2005

Trading Revenue (in millions) 4393.2 4345.1 4021.5

EBIT (in millions) 653.1 580.5 570.6

Net Profit (in millions) 366.3 323.5 320.5

Key Ratios

Capital Expenditure to Revenue (% ) 6.8 6.5 7.5

Return Average Capital Employed (%) 19.0 16.3 17.5