Financial aspects of the company
The report provides an analysis and evaluation on the key business functions of Coca Cola Amatil. The report gives an in depth investigation into the operations, marketing, employment relations and the financial aspects of the company. Coca-Cola Amatil is an Australian company that bottles and distributes The Coca Cola company soft drink and other beverages in several countries. It is the largest non-alcoholic beverage company in the Pacific Rim.
Coca Cola Amatil’s mission statement is “to become the supplier of choice every time in each category which we operate”. Their values are commitment to each of their customer’s success, urgency to act and take responsibility, always looking for a better way, pride in doing their best over time and developing people and rewarding performance. Background Information In 1904 British Tobacco Company (Australia) Limited formed to take over a group of small tobacco companies including WD and HO Wills Limited.
From there the company went on to establish separate divisions for soft drinks, snack foods and frozen foods with APD in 1964, and then in the following year APD purchased a controlling interest in Coca Cola Bottlers (Perth) Pty Ltd. In 1977 the company name changes to Amatil Limited and in 1989 shareholders
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CCA currently has operations in five countries- Australia, New Zealand, Fiji, Indonesia and Papua New Guinea. Their head office situated in Sydney and in 2006 CCA announced new automated warehouse development in Northmead and Eastern Creek, in Western Sydney. At Northmead the 35 year old existing site was revitalised at a cost of $110 million to accommodate a new automated distribution centre and new manufacturing product line. An Important aspect of the company is the operation layout.
One example is the flow process of Coca Cola cans, which have an intricate step by step layout including careful watch by a human eye to ensure their final result is to maximum standards. CCA chooses to support environmentally friendly programmes such as Clean Up Australia Day and Keep Australia Day giving the company a positive image. Marketing Coco Cola Amatil offers a diversified product portfolio including carbonated soft drinks, water, sports and energy drinks, alcoholic beverages, fruit juice, coffee and packaged ready to eat fruit and vegetable products.
CCA is one of the largest bottlers of non-alcoholic ready to drink beverages in the Asia Pacific region and one of the six major coca-cola bottlers in the world. Coca Cola Amatil spends over $750 million every year on sales, promotion and distribution. The company has a specific number of marketing objectives which include: continuing to grow carbonated soft drink sales through new packaging and increased product availability and broadening the company’s product mix through increasing sales of non-carbonated beverages such a fruit juice and bottled water.
Coca Cola Amatil’s broad product range means the company produces beverages that cater to the tastes of almost all consumer groups. However the company markets products to individual consumer groups on factor such as age, interests and lifestyle. In addition to market segmentation CCA applies the “Four Ps”- Product, Price, Promotion, and Place to its products. Product Coca Cola offers a huge amount of choice to potential customers, with a variety of drinks to suit the needs of individuals. CCA uses product differentiation to tailor its beverages to meet the needs of consumers.
For example, this has led to the introduction of new soft drink flavours such a Diet Coke with Lemon, Vanilla Coke and Cherry Coke. The introduction of new products has also differentiated CCA’s product range from competitors as none of which offer a comprehensive range of flavour choices. Price The soft drink industry is highly competitive and only a relatively small number of businesses account for soft drink sales. In this environment CCA must take into account competitor’s prices when setting their own price.
The strong brand of CCA soft drinks often allows the company to charge a slightly higher price than its competitors for similar products. Promotion Advertising is a key element in any promotional campaign. While advertisements featuring CCA’s products are visible in many forms of media such a television, radio and billboards CCA has little control over these campaigns are these are the sole responsibility of The Coca Cola Company (TCCC). Free samples and product giveaways are another form of promotion that CCA use regularly.
Product giveaways usually coincide with the launch of a new product, this allowing the product to achieve widespread recognition in a short period of time. Place CCA sells its products through a number of distribution channels. Some of these channels involve vending machines which are a direct distribution to consumers. However, the vast majority of sales are generated through intermediaries such as supermarkets, restaurants and convenience stores allowing CCA to further expose its products.