Coca-Cola has outlined key business goals for 2020 including plans to more than double system revenue from $95bn to $200bn.
At an investor and analyst conference in Atlanta yesterday, Coca-Cola management unveiled its vision for the development of the business over the next decade.
Emerging markets, and the expanding middle class, will be key drivers for growth, but the developed markets of the US and Europe are also expected to play a central role.
Coca-Cola presented its strategy for different regions of the world as they emerge from recession.
In China, India, and Brazil, where rapid recovery is anticipated, building consumption is the chosen strategy. But in Russia and the Ukraine, which Coca-Cola describes as volatile markets, the company will aim to maximise flexibility.
As for the core developed markets of Europe and the US, Coca-Cola expects the economies to reset, and therefore plans to achieve its growth targets with segment offerings.
Effective marketing will be crucial to the achievement of these sales targets. Management therefore set out key components of its marketing strategy including emotionally driven consumer engagement, precision marketing, innovation, and productivity.
With the global population continuing to age, Coca-Cola also had a word to say about attracting older consumers. Satisfying their needs with the right brands and marketing was one of the company priorities for the development of its product portfolio.
“To target aging and affluent consumers globally, we are actively exploring new ingredients, new functionality and new occasions,” said Muhtar Kent, Coca-Cola chairman and CEO. Not to neglect other age groups, Coca-Cola also said it would focus on a new generation of younger consumers, with more environmentally friendly products.
As well as targeting the top line growth, Coca-Cola also plans to keep a close eye on maintaining and building productivity. The company plans to expand margins in order to increase system revenue from $95bn to $200bn. This will be achieved through a continued focus on cost management and the creation of further economies of scale.