Coca-Cola to focus on digital strategy to enhance business efficiency

Coca-Cola Company is spending its digital infrastructure after posting 10 percent drop in revenue last year.
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Coca-Cola revenues dropped 6 percent to $7.1 billion in the fourth quarter and fell 10 percent to $31.9 billion in 2018.

Capital expenditures of Coca-Cola will be approximately $2 billion in 2019. One of the focus areas of its Capex will be digital investment. Coca-Cola does not want to reveal more on its digital initiatives in the coming quarters.

“We have a couple of strategic initiatives in the digital arena and in our concentrate business to invest in 2019,” Coca-Cola CEO James Quincey said during an analyst calls.

Barry Simpson is the chief information officer (CIO) of Coca-Cola Company responsible for managing the company’s global information technology strategy, services and operations that improve business efficiency.

Digital focus

Coca Cola has digital infrastructure in place for accepting orders online or via a mobile app, using same-day delivery services. Coca Cola’s subscription-based shopping solutions are popular, especially among time-crunched consumers.

Coke has joined hands with goPuff, an on-demand convenience store delivery start-up catering to college campuses, to deliver cold beverages to students’ doorsteps within a few minutes.

Coca-Cola is using digital technology to create new consumer experiences via innovative programs like sip & scan, which lets consumers unlock experiences and prizes by scanning icons on Coke packages with their mobile phones.

The company’s focus on digitization is delivering value to retail and foodservice customers. MyCoke platform enables stores to replenish their beverage inventories and schedule future orders online. Cloud-based digital signage system lets restaurants make content updates to menu boards based on real-time purchasing data.

Insites Consulting is assisting Coca-Cola Company in the next phase of the re-design of their digital strategy in the coming years.

Insites Consulting has set up two online research communities in 7 European markets such as England, Germany, France, Spain, Italy, Sweden and Poland with 200 parents and 200 teens. Insites Consulting presented the findings to the top team of Coca-Cola to assist in the digital transformation strategy.

Business growth

Coca-Cola CFO Kathy Waller said the company is focusing on innovation that leverages brand edge and retro building, with increased efforts to digitally connect with consumers.

Coca-Cola achieved strongest organic revenue growth in Asia Pacific in over five years. It had a stronger innovation pipeline, solid digital initiatives and steadily improving execution by bottling partners.

Coca-Cola India achieved 25 percent of revenue growth from new products. The consumer goods company said China’s digital initiatives coupled with a robust innovation pipeline resulted in solid performance.

B2C business capitalized on Singles Day, the online shopping holiday. Both digital B2C and B2B businesses grew over 40 percent for the year and now account for over 5 percent of the system revenues in the market.

Rajani Baburajan