CocaCola Report
CocaCola Report
INTERNATIONAL SCHOOL
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2. Current Situation of Coca-Cola Company
2.1 Current situation:
Coca-Cola has seen strong organic revenue growth over the past two years, 16% and
12% respectively. The company is aiming for an estimated 6% to 7% organic growth by
2024. However, to maintain and strengthen its position in the beverage industry, the company
is facing a number of challenges. important knowledge:
a. Fierce competition:
The beverage market in Vietnam is becoming increasingly competitive. Although it is a
highly recognizable brand, with the popularity of other beverage products, especially in the
carbonated beverage line. Soda has gradually been linked to health problems, even among
diet products, which has changed beverage drinking habits in markets such as the US and
other regions. Especially with the younger generation. This will be an obstacle that will
persist in developed markets. Requires companies to maintain differentiation and
continuously innovate to attract and retain customers.
b. Rapid changes in consumer preferences:
Today's consumers tend to change their preferences and habits quickly. This requires
the company to continuously update and respond to new trends, even predicting in advance to
avoid falling behind.
c. Application of Information Technology:
The rapid development of information technology is driving changes in the way
businesses operate. Companies need to take advantage of technology to improve operational
efficiency, from managing customer information to optimizing the supply chain and
conducting online interaction and marketing.
2.2 The specific situation of the company:
a. Ineffective interaction with customers:
The company has difficulty identifying potential targets and engaging with them
effectively. Resources and effort risk being wasted on marketing campaigns that fail to reach
their intended audience due to inaccurate targeting. This can lead to increased customer
acquisition costs. To solve this problem, companies need to adopt a more precise and targeted
approach to connect with prospects and guide them through the sales funnel effectively.
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Building strong relationships with existing customers is critical to driving loyalty and
generating repeat sales. Without a clear strategy to retain customers, businesses will risk
losing valuable customers to competitors. To address this challenge, companies need to shift
their focus to retaining and nurturing their existing customer base to maximize their lifetime
value.
3. Strategy of Coca-Cola Company
a. Enterprise-level strategy:
Coca-Cola's primary goals are to draw in new consumers and boost existing ones'
spending power. Coca-Cola has a chance to grow further since its distinct goods meet the
demands of the majority of today's youth. Furthermore, a wide variety of container styles and
ongoing innovation excite consumers.
b. Strategy at the business unit level:
There are four core tactics in it:
- Cost leadership strategy: This approach lowers costs for each product over time, effectively
recycles soft drink cans, and advances technology to better serve customers. Additionally, by
using this tactic, Coca-Cola is able to locate new raw material suppliers, which improves
operational efficiency and lowers manufacturing costs.
- Growth strategy: A major component of the growth strategy is the product development
plan, which is crucial to Coca-Cola's ability to create a wide range of goods targeted at
various markets. Coca-Cola thus gave each product a unique brand.
- Pricing Plans: Coca-Cola has a pricing strategy known as "meet-the-competition pricing."
Because Coca-Cola has to be seen as unique but also reasonably priced, its product prices are
set at a level similar to those of its rivals.
- Discounts: Coca-Cola penetrates new areas that are particularly price-sensitive by offering
lower price points. To increase brand recognition, they match or outperform the competitors
on pricing. Coca-Cola repositions itself as the “premium” brand in relation to its many
competitors once the brand has gained traction in the market.
c. Marketing strategy:
Coca-Cola focuses on a number of campaigns to develop their own distinctive and
effective marketing strategies. Here are a few specific tactics in detail:
- Unique formula.
- Logo font never changes.
- Use an exclusive bottle model.
- Retail price unchanged for 70 years.
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- Verbal advertising instructions.
- Print the name on the can of Coca-Cola.
d. Analysis of Coca-Cola strategy:
- The launch of name-tags, Coca-Cola's most successful campaign to date, quickly
generated a powerful movement. In an effort to boost sales and encourage "young people,"
"more talk, more consume," the company has raised global consumption as well as public
knowledge of its brand. Coca-Cola became the most well-known beverage company thanks
to a number of factors, including differentiating itself from the competition, personalizing
products, developing creative packaging, analyzing consumer psychology and behavior, and
utilizing social media and electronic media platforms to quickly and cheaply reach a large
number of users. These platforms appeal to a wide age range of consumers, from young
adults to older adults, and are found in small cafeterias, restaurants, and movie theaters.
Everywhere you look, the Coca-Cola brand is there.
- In order to keep up with the rapidly evolving market, the company has also adopted a
technological plan. In addition to continuously advancing science and technology to improve
production and satisfy the demands of its consumers, Coca-Cola runs marketing campaigns
nonstop. It is evident that Coca-Cola consistently employs sensible marketing tactics,
particularly powerful marketing communications, in every era.
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understanding and promptly reflecting these changes through customer relationships is
essential.
b. Easy Integration with Other Systems:
CRM can easily integrate with other systems within the company such as ERP or
POS. This helps Coca-Cola collect and share data more easily, providing an overview of
customers and business operations.
c. High Customizability:
CRM can be customized to meet the specific needs of each company. This helps
Coca-Cola ensure they are using CRM most effectively.
d. Enhanced Business Performance:
CRM technology has been shown to have a significant positive impact on key
performance indicators in various industries. For example, CRM implementation has been
linked to improved sales performance and customer satisfaction. For Coca-Cola, using CRM
can help increase sales by optimizing marketing strategies and personalized interactions with
customers.
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The information system would struggle with analyzing data to formulate effective
business and marketing strategies. Analyzing data on purchasing behavior, customer
preferences, and market trends without an organized database can become complicated and
inaccurate.
c. Customer Relationship Management:
One of the significant advantages of CRM is the ability to manage customer
interactions, from noting personal information to tracking communication history. Without
this system, maintaining customer relationships can become fragmented and lack continuity.
d. Marketing Strategy Optimization:
An unintegrated information system can make optimizing marketing strategies
difficult. Without the ability to automate customizing marketing messages based on customer
data, reaching and nurturing customers may not be efficient.
e. Sales and Distribution Management:
Without a CRM system, managing relationships with sales partners and distributors
also becomes more complicated. Tracking order history, inventory information, and partner
needs can all become more challenging. Managing Coca-Cola's information system without
using CRM presents challenges in collecting and managing customer data, analyzing data
effectively, maintaining customer relationships, optimizing marketing strategies, and
managing sales and distribution relationships.
3. The benefit of CRM?
A CRM solution helps you focus on your organization’s relationships with individual
people — including customers, service users, colleagues, or suppliers — throughout your
lifecycle with them, including finding new customers, winning their business, and providing
support and additional services throughout the relationship.
- Centralizing customer management:
CRM allows the Company to store its customer information into the customer database in a
concentric way of all types of customer information such as customer list, individual
customer profile, transaction history and debt with every customer
- Improving the organization of customer information:
Like any beverage company out there, the large number of Coca-Cola’s customers has
increased more than ever. Hence, the customer information is as large and large as an
encyclopedia of customers. This information needs to be classified, quantified, and organized
in a database stored in cloud storage technology. Therefore, utilizing an effective CRM will
help the Company handle this issue.
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- Communicating customer information:
The CRM system makes it possible for every employee to have access to the same customer
details. In other words, the CRM system provides customer details to any employee who
needs it.
- Improving customer service:
CRM manages customer requests and contacts, the answers, and the feedback of customer
service staff. CRM also manages and tracks each customer's specific case; and clear and
detailed handling solutions of specialized staff.
- Improving work efficiency:
Since implementing the CRM system, Coca-Cola and its employees find it easier to manage,
store and communicate with tasks. They do not need to spend much time handling customer
information manually, so the work efficiency is improving and becoming more productive.
- Increasing sales:
CRM has a scientific sales process with clear steps, goals, and specific KPIs. Therefore,
Coca-Cola's sales staff can easily work quickly and efficiently, follow the steps of the sales
process, and achieve the goals set by Coca-Cola or themselves.
- Heightening competitiveness:
Because every Company now implements at least a CRM system, it’s no doubt that it boosts
the competitiveness between Coca-Cola and other competitors like Pepsi. The more
competitive they become, the more innovative strategies they’ll come up with.
- Building a sustainable business image:
Customers are more impressed with the Company. They think it’s professional and
competent. They love the Coca-Cola products, services, and business brand itself due to the
brand awareness that Coca-Cola has built for years.
4. Elements of CRM?
The CRM system that Coca-Cola uses is SAP (System Applications and Products)
Strategic Enterprise Management. They began using this CRM tool in 2009 and have
continued to use it to this day.
Key components of Coca-Cola's CRM system include:
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- Marketing Automation: Managing marketing campaigns, sending emails, tracking
performance, and interacting with customers.
- Customer Service and Support: Tracking support requests, resolving issues, and
providing post-sales service.
- Social Media Integration: Linking with social media channels to interact with
customers.
5. Design
There are 4 main features of the Coca-Cola’s CRM system:
- User Authentication
Register new account: This allows new users to create an account with the CRM
system by providing their credentials, such as name, email address, and password.
Login: Existing users can enter their registered credentials to access the CRM system
and utilize its features.
Logout: This function enables users to safely exit the CRM system, terminating their
active session.
- Customer Information Management
Create new customer: This feature allows for the creation of new customer profiles
within the CRM system. It involves gathering essential customer information, such as
contact details, purchase history, and preferences.
View customer information: CRM users can access and review customer profiles to
gain insights into their demographics, purchase patterns, and interactions with the
company.
Update customer information: This function enables CRM users to modify existing
customer profiles to reflect any changes in their information, ensuring data accuracy.
- Customer Satisfaction Management
Receive and Answer Customer Questions, Issues, and Feedback: CRM users can
receive and respond to customer inquiries, concerns, or feedback promptly and
professionally.
ChatBot: Provide instant assistance and support. Ensure 24/7 availability for customer
inquiries. Answer FAQs and troubleshoot common issues. Offer real-time updates on
order status and tracking. Provide personalized product recommendations. Collect
feedback and address complaints promptly.
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Conduct Surveys: The CRM system facilitates the creation and distribution of surveys
to gather customer feedback on specific topics or areas of interest.
- Analysis Customer
New Product Launch Support: Features to support the launch of new products
including market research, target audience identification, campaign planning, and
coordination of marketing efforts to generate awareness and drive sales.
Conduct Surveys: The CRM system facilitates the creation and distribution of surveys
to gather customer feedback on specific topics or areas of interest.
Consumer Analytics: Advanced analytics capabilities to analyze customer data,
market trends, and product performance to gain insights into consumer behavior and
inform marketing and product development strategies.
PART 3: THE PROJECT
1. Scope
2. Outcome
In order to achieve a win-win situation for both Coca-Cola and its customers, the
Coca-Cola Company successfully implemented the Customer Relationship Management
(CRM) system. This helped the company maintain its commitment to the customer as the
center, develop a devoted customer base, and deliver the highest caliber of service.
Furthermore, the thesis underscored the need of fortifying customer relationship
management. CRM systems, first and foremost, aid in the improvement of customer
knowledge by centralizing data from many sources, enabling more precise customer
segmentation and the development of successful, focused marketing campaigns. The sales
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process has been streamlined to increase transaction value and customer lifetime value while
discovering cross-selling and up-selling opportunities and automating tasks to free up the
sales staff to concentrate more on engagement and sales. Faster response times and a
consistent experience can improve customer service, increasing client loyalty and
satisfaction. The capacity to plan, develop, and carry out targeted marketing campaigns
improves marketing efficiency and increases return on investment. Through proactive
engagement tactics, CRM systems also assist in raising customer retention rates and lowering
customer attrition. Boost interdepartmental cooperation and automate repetitive processes to
increase operational efficiency. Real-time analytics and reporting features, as well as
predictive analytics to forecast consumer demands and industry trends, facilitate data-driven
decision-making. Additionally, the system is scalable and versatile, allowing it to adjust to
changing market conditions and the company's changing demands. In the end, offering a
better and more customized client experience aids Coca-Cola in standing out from its rivals
and maintaining its dominant position in the industry.
1. Context
While maintaining Coca-Cola's dedication to personalized customer interactions,
recent increases in online and omnichannel involvement have exposed limitations within our
current CRM system and hardware. The lack of mobility and digital flexibility has hindered
our ability to provide seamless assistance across various channels such as web chat, virtual
consultations, and emerging platforms. To tackle this issue, it's vital to implement a flexible
Bring Your Own Device (BYOD) policy withn our CRM ecosystem. Empowering our
customer service team to utilize their own smartphones and devices enables them to naturally
interact with customers while accessing crucial information such as product catalogs,
inventory status, order history, and customer preferences. This approach not only promotes
consistent experiences across all channels but also improves the customer journey by
allowing our employees to address inquiries and orders outside of traditional business hours.
3. Benefits
2.1 For the customers
Here are some benefits of implementing BYOD for Coca-Cola's customers:
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- Interaction and participation in marketing programs:
Customers can participate in promotions and events on mobile platforms using their personal
devices, creating an engaging interactive experience.
- Increased productivity:
Employees can work from their own devices, which they are already familiar with and
comfortable using, leading to increased efficiency and productivity.
- Improved collaboration:
Employees can easily share files, communicate, and collaborate with colleagues using their
own devices, fostering teamwork and innovation within the organization.
2.3 For the company
Implementing BYOD brings several important benefits to Coca-Cola:
- Cost savings:
Coca-Cola can reduce expenses on device procurement and IT infrastructure as they don't
need to purchase as many new devices for employees. This optimizes the budget and
enhances financial efficiency.
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4. Integration
3.1 Integrating BYOD into CRM System
BYOD (Bring Your Own Device) refers to allowing employees to use their personal
devices (such as smartphones, tablets, or laptops) for work-related tasks.
The goal is to provide a seamless and user-friendly experience that supports productivity and
compliance with company policies and data security standards.
- Cross-Platform Compatibility:
- User-Friendly Interface:
Advanced Search Features: Implement robust search capabilities with filters to help
employees quickly locate specific customer data or interactions.
Contextual Customer Profiles: Provide access to recent purchase history, notes, and
other relevant customer information within the customer profile view.
- Security Measures:
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Robust Authentication: Integrate strong authentication methods such as biometric or
multi-factor authentication to secure access to the application.
Data Encryption: Use end-to-end encryption to protect data during transmission and
storage, safeguarding sensitive customer information.
- Performance Optimization:
Load Testing and Scalability: Conduct stress tests to ensure the application can handle
high user loads without performance issues.
Data Efficiency: Optimize data usage to ensure the application operates efficiently
even in areas with limited network connectivity.
By focusing on these key areas, a mobile CRM application can be developed or customized
to meet the needs of employees accessing CRM data from their personal devices.
3.3 Installation:
Installation and training ensuring employees can effectively use the mobile CRM
application on their personal devices.
- User-Friendly Installation:
Provide clear, simple instructions for installing and configuring the CRM app on
personal devices.
Offer multiple installation options (e.g., app store links) and ensure automated
configuration for ease of setup.
- Training:
Interactive Sessions:
o Host live webinars or workshops with CRM specialists to demonstrate app
functionalities and answer questions.
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o Simulate practical scenarios to show real-world use of the app in customer
management.
Resource Library:Provide a library of training resources within the app, including
video tutorials, guides, and FAQs for self-paced learning.
Peer Mentorship: Establish a peer support system where experienced users mentor
newer ones.
- Support:
Set up an internal support channel for employees to ask questions and get quick
responses.
Ensure timely support for resolving technical or operational issues.
Offer regular updates and refresher training on new features and changes to keep
employees informed.
3.4 Integration of Technology and Security
Integrating technology and security for a BYOD CRM system involves providing
employees with convenient access to the CRM system on personal devices while ensuring
data protection and compliance with company security policies.
- Security Measures:
- Technology Integration:
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Software Updates: Regularly update CRM apps and software to address
vulnerabilities and enhance security.
Security Best Practices: Provide training on secure device usage and data protection,
including recognizing phishing attempts.
Ongoing Awareness: Maintain awareness campaigns to keep employees informed
about emerging security threats.
- Policy Development:
BYOD and Data Privacy Policies: Establish clear policies outlining acceptable use
and security requirements for personal devices.
Compliance Monitoring: Review compliance with policies and legal requirements
regularly, and adjust as necessary.
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CONCLUSIONS
Coca-Cola has a great opportunity to improve consumer engagement through the use
of a CRM system, which makes it possible to execute more individualized and focused
marketing campaigns. The organization may improve communication and marketing
strategies by gaining insights into consumer behavior and preferences through the
centralization of customer information. Tailored marketing campaigns and communications
that speak to specific consumer requirements are likely to boost customer satisfaction and
loyalty, which will encourage repeat business and improve brand recognition. Moreover,
Coca-Cola's contacts with clients may be streamlined by automated CRM procedures,
increasing efficiency and reducing mistake rates. Beyond marketing, personalization
permeates every contact a consumer has with Coca-Cola, from customer service to follow-
ups after a purchase. This guarantees a smooth and customized customer experience that
continually upholds the value proposition of the brand. In addition, With its comprehensive
analytics and reporting capabilities, the CRM system has the potential to completely
transform Coca-Cola's sales and marketing tactics. With the use of these technologies, which
provide real-time information about client demographics and sales success, the business can
swiftly modify its plans to satisfy changing market demands. A comprehensive picture of
corporate operations and customer interactions may be obtained by integrating CRM with
other systems like POS and ERP, which can also expedite departmental activities. A feature
of the CRM called Salesforce automation helps managers throughout the whole sales process,
from lead generation to deal closure, making sure that no chances are lost. By doing this,
Coca-Cola may be able to handle more consumers with the same amount of resources,
shorten sales cycles, and enhance sales efficiency—all of which might raise revenue and
profitability. It is essential to be able to quickly adjust to changing customer trends and tastes
in today's competitive beverage industry. Coca-Cola has a considerable competitive
advantage thanks to its CRM system, which enables the business to react quickly to market
developments with data-driven choices. Coca-Cola has the potential to grow into new
markets and demographics while still maintaining its present market share thanks to this
dynamic aptitude. A strategic advantage is provided by the CRM's capacity to increase
customer loyalty and communicate with customers in an efficient manner. Coca-Cola can
keep one step ahead of rivals in terms of innovation and consumer happiness by using
advanced analytics from CRM data to predict market trends and modify its campaigns
correctly.
2. Future
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With CRM, Coca-Cola hopes to improve its digital and mobile engagement skills as
customer habits move more and more toward digital platforms. By incorporating cutting-edge
digital marketing capabilities into the CRM, Coca-Cola will be able to effectively
communicate with customers on a variety of online platforms. Large-scale customer
interactions might be improved in the future by using AI and machine learning to automate
tailored marketing material and forecast consumer behavior.
Additionally, mobile CRM integration in accordance with the Bring Your Own Device
(BYOD) policy should improve Coca-Cola's employees' flexibility and accessibility to the
company's CRM data. This measure will provide prompt replies and resolutions to client
requirements, irrespective of the customer's location, hence enhancing service quality and
operational efficacy. In the future, Coca-Cola may use big data analytics in conjunction with
CRM to accurately forecast company trends and customer behavior. With this predictive
skill, Coca-Cola would be able to maintain its market leadership by streamlining its supply
chain, anticipating consumer needs, and creatively modifying its product lineup before rivals.
Moreover, by seeing possible churn signs and facilitating proactive client retention through
interaction, predictive analytics may improve customer retention efforts. With tailored ads
based on predictive algorithms, Coca-Cola will be able to attract new customers while
retaining its current client base thanks to this forward-thinking strategy. An innovative way
for Coca-Cola to improve customer relations and operational effectiveness is through the
Internet of Things (IoT) and CRM system integration. Real-time consumer data collection by
IoT devices can yield quick insights into customer preferences and consumption trends. The
CRM system may be enhanced with this data, allowing marketing efforts to be more
appropriately tailored to the target audience. Furthermore, by supplying real-time data that
may foresee problems and simplify operations, IoT can enhance Coca-Cola's operational
procedures, including inventory management, equipment maintenance, and supply chain
logistics. By guaranteeing product availability and prompt service, this high degree of
operational efficiency not only lowers costs but also improves the customer experience.
3. Risk
Data security and privacy are two of the main dangers connected to the use of CRM
systems such as the one Coca-Cola utilizes. The processing and storage of enormous volumes
of private client data increases the danger of data breaches and cyberattacks. Such
occurrences may result in serious harm to one's reputation, a decline in consumer confidence,
and even financial obligations as a result of breaking international data protection regulations.
Coca-Cola needs to make significant investments in strong cybersecurity defenses, abide by
global data protection laws, and regularly review and update its security procedures in order
to reduce these risks. To keep the CRM system credible and reliable, protecting the privacy
and security of client information must be a top focus. Ensuring quality, consistency, and
accessibility across regions is only one of the many data management problems that come
with implementing a CRM system in a multinational corporation like Coca-Cola. It can be
difficult and resource-intensive to integrate CRM with current systems like ERP, supply
chain management, and customer support platforms. There may be major expenses and even
interruptions to business operations. Careful planning, gradual implementation, frequent staff
training, and strong leadership are essential to overcoming these obstacles. Managing the
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human aspects of CRM adoption also requires the adoption of a change management plan.
Vendor lock-in is a problem when relying too much on a CRM system, particularly one that
is offered by a single vendor like SAP. Because of this, Coca-Cola may become more reliant
on the technology, pricing policies, and rate of innovation of the vendor, which might result
in higher expenses and less freedom to adopt new technologies or move suppliers.
Furthermore, any major interruption or outage in the CRM service might have a broad impact
on Coca-Cola's business operations, including marketing, customer service, and sales
initiatives. To reduce these risks, make sure the CRM provider has strong support and service
level agreements. Coca-Cola should think about a multi-vendor approach or make an internal
investment to strengthen its internal skills so it can have greater control over its CRM
systems in order to overcome these obstacles. Maintaining flexibility and control over the
CRM system and the data it manages will also need having backup plans and effective
vendor bargaining techniques.
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