Coca Cola 2007 Annual Report Download - page 35

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 promote 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 associates 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.
Strategic Priorities
We have five strategic priorities designed to create long-term sustainable growth for our Company and the
Coca-Cola system and value for our shareowners. These strategic priorities are growing sparkling beverage leadership;
rapidly growing still beverages; leveraging a balanced geographic portfolio; accelerating the innovation pipeline; and
strengthening Coca-Cola system capability. To enable the entire Coca-Cola system so that we can deliver on these
strategic priorities, we must further enhance our core capabilities of consumer marketing; commercial leadership; and
franchise leadership.
Core Capabilities
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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