Coca Cola Strategy and Compettitive Advantage

Strategy

Coca-Cola FEMSA seeks to provide its shareholders with an attractive return on their investment by increasing the company’s profitability.

The key factors in achieving profitability are increasing revenues by:

1. implementing multi-segmentation strategies in the company’s major markets to target distinct market clusters divided by competitive intensity and socioeconomic levels;

2. implementing well-planned product, packaging and pricing strategies through channel distribution; and;

3. achieving operational efficiencies throughout the company.

To achieve these goals the company continues its efforts in:

working with the Coca-Cola Company to develop a business model to continue exploring new lines of beverages, extend existing products, participate in new beverage segments and effectively advertise and market the company’s products;

developing and expanding the non-carbonated beverage portfolio organically and through strategic acquisitions together with the Coca-Cola Company;

implementing packaging strategies designed to increase consumer demand for the company’s products and to build a strong returnable base for the Coca-Cola brand selectively;

replicating the company’s successful best practices throughout the whole value chain;

rationalizing and adapting the company’s organizational and asset structure in order to be in a better position to respond to a changing competitive environment;

strengthening the company’s selling capabilities and selectively implementing pre-sale system, in order to get closer to clients and help them satisfy the beverage needs of consumers;

evaluating the company’s bottled water strategy, in conjunction with the Coca-Cola Company, to maximize its profitability across its market territories;

committing to building a strong collaborative team, from top to bottom; and

seeking to expand the company’s geographical footprint.

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