Ch. 7 - Business Marketing

Coca-Cola Company works together with more than 300 bottling partners globally and operates the most extensive beverage distribution system in the world. Electronic commerce had become a preferred method of doing business for the grocery industry and therefore the company developed a high volume site for Business to Business e-commerce (B2B). Internet has made it possible for Coca-Cola Company to build a strong relationship with its bottling partners, to increase collaboration and efficiency, and to better understand the costumers' needs.


Coca Cola Company is based on Business to Business marketing, which means that the company provides goods that bought for a resell rather than personal use. Coca Cola Company first started its bottle agreement on 1899 and today it has 300 bottling partners worldwide. The company manufactures and sells concentrate, beverage bases and syrups to the bottling operation which than manufacture, package, merchandise and distribute the final product to the costumers and vending partners that than sell it to the final costumers. The Coca Cola Company owns the brand and responsible for the marketing initiatives. (More detailed on chapter 15).


Except the bottling partners, Coca Cola Company has strategic alliances with different large companies to leverage their brand. Steven Heyer, the new head of strategic planning, said in FORBES' interview on 2001: "The question we will be asking from here on out is, can we do it faster, smarter or cheaper? If not, we partner."  
Here are few examples from Coca Cola's alliances:
1. Apple and Coca cola made iTunes alliances on 2006; Coca-Cola used this initiative to promote their calorie-free Coke Zero brand along with iTunes.
2. The Walt Disney Company has a 47 years alliance with Coca-Cola Company. On September 2002, DASANI water bottles were featured at the Walt Disney’s parks and resorts. DASANI were also served on the Walt Disney cruise lines, and became the sponsor of the Walt Disney’s World Marathon.

3. McDonald's and Coca Cola have a strong alliance based on trust for more than 60 years, Coca Cola products are being sold in 31,000 restaurants over 100 countries.


4. Nestlé Company, Switzerland, and Coca Cola Company have a joint venture since 1991. The companies took advantage of Nestle's well-known brands of coffee, tea and chocolate beverages and Coke distribution system.

5. Procter & Gamble have a joint venture to develop and market innovative juices and snacks since 2001.

"Strategic alliances are now likely to be the cornerstone of Coke's growth strategy." said FORBES magazine. http://www.forbes.com/best/2001/0521/026_print.html .

Coca Cola Company performs large number of alliances with great size companies to strength its operation and to compete better worldwide.
The company's alliances base on commitment and trust.
"Our customers include large international chains of retailers and restaurants and small independent businesses. We work with them equally to create mutual benefit. Together with our bottling partners, we serve our customers through account management teams, providing services and support tailored to their needs." from the Coca Cola Company