Coca Cola 2010 Annual Report Download - page 39

Strategic Priorities
We have four 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 driving global beverage leadership; accelerating
innovation; leveraging our balanced geographic portfolio; and leading the Coca-Cola 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; franchise leadership; and bottling and distribution
operations.
Core Capabilities
Consumer Marketing
Marketing investments are designed to enhance consumer awareness of 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 beverages with our bottling partners. We will continue to build a supply
chain network that leverages the size and scale of the Coca-Cola system to gain a competitive advantage.
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