Coca Cola 2008 Annual Report Download - page 37

system for growth. 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. Through our relationships with our bottling partners and those who sell
our products in the marketplace, we create and implement integrated marketing programs, both globally and
locally, that are designed to heighten consumer awareness of and product appeal for our brands. 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 marketing activities include,
but are not limited to, advertising, point-of-sale merchandising and sales promotions.
We have disciplined marketing strategies that focus on driving volume in emerging markets, increasing our
brand value in developing markets and growing profit in our most developed markets. In emerging markets, we
are investing in infrastructure programs that drive volume through increased access to consumers. In developing
markets, where consumer access has largely been established, our focus is on differentiating our brands. In our
most developed markets, we continue to invest in brands and infrastructure programs, but at a slower rate than
revenue growth.
We are focused on affordability and ensuring we are communicating the appropriate message based on the
current economic environment.
Commercial Leadership
The Coca-Cola system has millions of customers around the world who sell or serve our products directly to
consumers. We focus on enhancing value for our customers and providing solutions to grow their beverage
businesses. Our approach includes understanding each customer’s business and needs, whether that customer is
a sophisticated retailer in a developed market or a kiosk owner in an emerging market. We focus on ensuring
that our customers have the right product and package offerings and the right promotional tools to deliver
enhanced value to themselves and the Company. We are constantly looking to build new beverage consumption
occasions in our customers’ outlets through unique and innovative consumer experiences, product availability
and delivery systems, and beverage merchandising and displays. We participate in joint brand-building initiatives
with our customers in order to drive customer preference for our brands. Through our commercial leadership
initiatives, we embed ourselves further into our retail customers’ businesses while developing strategies for
better execution at the point-of-sale.
Franchise Leadership
We must continue to improve our franchise leadership capabilities to give our Company and our bottling
partners the ability to grow together through shared values, aligned incentives and a sense of urgency and
flexibility that supports consumers’ always changing needs and tastes. The financial health and success of our
bottling partners are critical components of the Company’s success. We work with our bottling partners to
identify system requirements that enable us to quickly achieve scale and efficiencies, and we share best practices
throughout the bottling system. Our system leadership allows us to leverage recent acquisitions to expand our
volume base and enhance margins. With our bottling partners, we work to produce differentiated beverages and
packages that are appropriate for the right channels and consumers. We also design business models for
sparkling and still beverages in specific markets to ensure that we appropriately share the value created by these
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