Coca Cola 2011 Annual Report Download - page 34

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 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 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.
Bottling and Distribution Operations
Most of our Company beverage products are manufactured, sold and distributed by independently owned and managed bottling
partners. However, over the past several years the amount of Company beverage products that are manufactured, sold and
distributed by consolidated bottling and distribution operations has increased. We often acquire bottlers in underperforming
markets where we believe we can use our resources and expertise to improve performance. Owning such a controlling interest
enables us to compensate for limited local resources; help focus the bottler’s sales and marketing programs; assist in the
development of the bottler’s business and information systems; and establish an appropriate capital structure for the bottler.
Our Company has a long history of providing world-class customer service, demonstrating leadership in the marketplace and
leveraging the talent of our global workforce. In addition, we have an experienced bottler management team. All of these factors
are critical to build upon as we manage our growing bottling and distribution operations.
The Company has a deep commitment to continuously improving our business. This includes our efforts to develop innovative
packaging and merchandising solutions which help drive demand for our beverages and meet the growing needs of our consumers.
As we further transform the way we go to market the Company continues to seek out ways to be more efficient.
32