Coca Cola 2013 Annual Report Download - page 34

Strategic Priorities
We have the following five strategic priorities designed to create long-term sustainable growth for our Company and the
Coca-Cola system and value for our shareowners:
• Accelerate sparkling growth, led by brand Coca-Cola
• Strategically expand our profitable still portfolio
• Increase media investments by maximizing productivity
• Win at the point of sale by unlocking the power of the Coca-Cola system
• Invest in our next generation of leaders
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.
Successful marketing investments produce 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 generally at a slower rate than gross profit 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 processes that enable us to quickly achieve scale and efficiencies, and we
share best practices throughout the bottling system. 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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