Objectives
The primary goal of The Coca-Cola Company is to build a worldwide reputation as an ethical and responsible business, all the while fostering sustainable growth for lasting achievements. These objectives form the foundation for the company’s decision-making process.
Our goal is to create value for our shareholders by maximizing growth and profitability. We focus on two strategies:
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We enhance our commercial models to prioritize customer value potential using a value-based segmentation approach that considers the overall industry potential.
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In key markets, we implement multi-segmentation strategies to target specific market clusters based on factors like consumption occasion, competitive intensity, and socioeconomic levels.
(3) Our plan includes implementing well-planned product, packaging, and pricing strategies through different distribution channels. (4) Additionally, we aim to drive product innovation across our various product categories. (5) Furthermore, we are committed to achieving the full operating potential of our commercial models and processes, thereby driving operational efficiencies company-wide. In order to accomplish these objectives, we will maintain our focus on several initiatives, including: working in collaboration with The Coca-Cola Company to develop a business model that allows us to explore and participate in new beverage lines; expanding our existing product lines; and effectively advertising and marketing our products.
Developing and expanding our still beverage portfolio is a priority for us. We aim to achieve this through innovation, strategic acquisitions, and collaborations with The Coca-Cola Company to jointly acquire companies.
• We aim to maximize profitability across our market territories by expanding our bottled water strategy in partnership with The Coca-Cola Company through innovation and selective acquisitions.
We aim to enhance our selling capabilities and go-to-market strategies, which include pre-sale, conventional selling, and hybrid routes. Our goal is to establish closer relationships with our clients and assist them in meeting the beverage demands of consumers.
Implementing selective packaging strategies is a priority for us, as we aim to both enhance consumer demand for our products and establish a robust returnable base for the Coca-Cola brand. Additionally, our goal is to replicate our most successful approaches throughout the entire value chain.
• Making changes to our organizational and asset structure to better adapt and respond to a changing competitive environment.
• Establishing a commitment to creating a multi-cultural collaborative team at all levels.
Our goals include expanding our geographical presence through both organic growth and strategic acquisitions.
Competitive Advantage
Market Leadership. Coca-Cola FEMSA is the largest bottler of Coca-Cola trademark beverages globally in terms of total sales volume, operating in Mexico, Guatemala, Nicaragua, Costa Rica, Panama, Colombia, Venezuela, Argentina, and Brazil. Business partnerships. Coca-Cola FEMSA collaborates with the Coca-Cola Company to create more advanced joint business models to continuously explore and participate in new beverage lines, extend existing product lines, and effectively advertise and market our products. As partners, we have a shared motivation to seize significant growth opportunities in Latin America’s rapidly expanding but underdeveloped non-carbonated beverage sector. We achieve this through innovation, strategic acquisitions, and by jointly acquiring companies with The Coca-Cola Company to broaden our still beverage portfolio. Strong brand portfolio.
Coca-Cola FEMSA offers a diverse range of beverages and continuously explores new categories to capture growth in its markets. In order to better serve its customers and meet consumer demands, the company has become a one-stop shop by providing a complete beverage portfolio including soft drinks, water, juices, teas, energy drinks, and even beer in certain markets like Brazil. Coca-Cola FEMSA also prioritizes building collaborative customer relationships. By working closely with its largest clients, the organization strives to develop stronger connections. One of the company’s initiatives involves customizing products and packages to suit their stores based on local market demographics, consumption occasions, and unique characteristics.
We partner with our customers on multiple fronts-from knowledge management and capabilities development to go-to-market and point-of-sale execution-to ensure each and every shopper’s trip counts. Channel Marketing. In order to provide more dynamic and specialized marketing of our products, our strategy is to classify our markets and develop targeted efforts for each consumer segment or distribution channel. Our principal channels are small retailers, “on-premise” consumption such as restaurants and bars, supermarkets and third party distributors. Presence in these channels entails a comprehensive and detailed analysis of the purchasing patterns and preferences of various groups of beverage consumers in each of the different types of locations or distribution channels. In response to this analysis, we tailor our product, price, packaging, and distribution strategies to meet the particular needs of and exploit the potential of each channel. Multi-Segmentation. We have been implementing a multi-segmentation strategy in the majority of our markets.
The strategy involves implementing various product/price/package portfolios based on market clusters or groups. These clusters are determined by consumption occasion, competitive intensity, and socio-economic levels, rather than just distribution channel types. Client Value Management is focused on capturing the industry’s potential by transforming commercial models to prioritize customers’ value potential through a value-based segmentation approach. This new model has been introduced in our Mexico, Brazil, Colombia, and Central America operations. To adapt to the local dynamics of the marketplace, we continually assess our distribution model and evaluate our go-to-market strategies. We recognize that different customers have varied service needs, ranging from traditional mom-and-pop retailers to modern hyper and supermarkets. We are implementing various new distribution models across our territories to enhance our distribution network’s efficiency.
Flexible sales and distribution models are essential for Coca-Cola FEMSA. Depending on the market, geographic conditions, and customer’s profile, we utilize various approaches. These include:
(1) A pre-sale system where sales and delivery are separate. Retailers place orders in advance, and the trucks are loaded accordingly, leading to improved sales and distribution efficiency.
(2) Conventional truck routes, where the delivery person makes immediate sales from the inventory available on the truck.
(3) A hybrid distribution system that combines immediate sale products and those ordered through the pre-sale system on the same truck.
(4) The integration of telemarketing with pre-sales visits.
(5) Sales through third-party wholesalers of our products.
To achieve our full operating potential, Coca-Cola FEMSA embraces a “more with less” mindset. Continuously optimizing manufacturing and distribution capacity is crucial for maximizing operational efficiency. Our organizational processes adapt to address changing competitive, economic, and socio-political environments. Additionally, we rely on state-of-the-art market intelligence systems to execute and refine our channel-marketing and multi-segmentation strategies. These strategies are aligned with customers’ and consumers’ purchasing patterns and preferences.
Our managerial expertise completes our overall approach.
Our growth strategy prioritizes the significance of management quality and we are committed to promoting and nurturing this quality at every level. We leverage the managerial expertise of FEMSA and The Coca-Cola Company. Additionally, we offer management training programs to further enhance the skills of our executives and encourage knowledge exchange and talent among multinational executives in our territories. Sustainable development is a vital component of our Company’s strategy, and we continuously develop initiatives to generate social and economic value. This encompasses improving employee well-being, fostering a culture of health, supporting communities, and minimizing environmental impact.
