Coca Cola 2006 Annual Report Download - page 35

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We make significant marketing expenditures in support of our brands, including expenditures for
advertising, sponsorship fees and special promotional events. As part of our marketing activities, we, at our
discretion, provide retailers and distributors with promotions and point-of-sale displays; our bottling partners
with advertising support and funds designated for the purchase of cold-drink equipment; and our consumers
with coupons, discounts and promotional incentives. These marketing expenditures help to enhance awareness
of and increase consumer preference for our brands. We believe that greater awareness and preference
promotes long-term growth in unit case volume, per capita consumption and our share of worldwide
nonalcoholic beverage sales.
The Nonalcoholic Beverages Segment of the Commercial Beverages Industry
We operate in the highly competitive nonalcoholic beverages segment of the commercial beverages
industry. We face strong competition from numerous other general and specialty beverage companies. We, along
with other beverage companies, are affected by a number of factors, including, but not limited to, cost to
manufacture and distribute products, consumer spending, economic conditions, availability and quality of water,
consumer preferences, inflation, political climate, local and national laws and regulations, foreign currency
exchange fluctuations, fuel prices and weather patterns.
Our Objective
Our objective is to use our formidable assets—brands, financial strength, unrivaled distribution system,
global reach, and a strong commitment by our management and employees worldwide—to achieve long-term
sustainable growth. Our vision for sustainable growth includes the following:
• People: Being a great place to work where people are inspired to be the best they can be.
• Portfolio: Bringing to the world a portfolio of beverage brands that anticipates and satisfies people’s
desires and needs.
• Partners: Nurturing a winning network of partners and building mutual loyalty.
• Planet: Being a responsible global citizen that makes a difference.
• Profit: Maximizing return to shareowners while being mindful of our overall responsibilities.
Areas of Focus
We intend to continue to strengthen our capabilities in consumer marketing, customer and commercial
leadership, and franchise leadership to create long-term sustainable growth for our Company and the Coca-Cola
system and value for our shareowners.
Consumer Marketing
Marketing investments are designed to enhance consumer awareness and increase consumer preference for
our brands. This produces long-term growth in unit case volume, per capita consumption and our share of
worldwide nonalcoholic beverage sales. We heighten consumer awareness of and product appeal for our brands
using integrated marketing programs. Through our relationships with our bottling partners and those who sell
our products in the marketplace, we create and implement marketing programs both globally and locally. In
developing a strategy for a Company brand, we conduct product and packaging research, establish brand
positioning, develop precise consumer communications and solicit consumer feedback. Our integrated global
and local marketing programs include activities such as advertising, point-of-sale merchandising and sales
promotions.
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