INTRO There are many factors, internal as well as external that impact the planning function of management within an organization, and Coca-Cola is no exception. More than a billion times every day, thirsty people around the world reach for Coca-Cola products for refreshment. Coca-Cola is the most popular and biggest-selling soft drink in history, as well as the best-known product in the world. The Coca-Cola franchise covers a population of approximately 398 million people. Coca-Cola Enterprises employs approximately 72,000 people who operate 463 facilities, 54,000 vehicles and approximately 2.4 million vending machines, beverage dispensers and coolers.
PepsiCo: The history of a successful business empire PepsiCo is a worldwide corporation that mainly produces refreshments and focuses on the food market. According to PepsiCo “Pepsi was introduced as ‘Brad's Drink’ in New Bern, North Carolina, United States, in 1893 by Caleb Bradham, who made it at his drugstore where the drink was sold. It was renamed Pepsi Cola in 1898” (par. 1). Pepsi is one of the favorite companies of American Citizens because it has merged with other products, it is one of the most profitable organizations in America, and their products are popular amongst the American population.
The Coca-Cola became incorporated in 1919 and is now the largest manufacturer, distributor and marketer of non- alcoholic beverages in the world. Nature of the Business Today Coca-Cola markets and connects with consumers using a portfolio of nearly 400 brands in over 200 different countries. Coca-Cola has five strategic business units: North America, Africa, Asia, Latin America, and Europe, Eurasia and the Middle East. The company adopted their strategies of success using the following strategic priorities: A. Accelerated carbonated soft-drink growth, led by Coca Cola B. selectively broaden the family of beverage brands to drive profitable growths C. grow system profitability and capability together with our bottling partners.
The company markets four of the world’s top five carbonated soft drinks; Coca-Cola “the world most valuable brand”, Diet Coke, Fanta and Sprite. The company also continues to make a difference to excel and retains an international focus, marketing and distributing its products in over 200 countries globally. Coca-Cola makes it products available to consumers thru a supply chain of its network of vertical and horizontal controlled bottling and distribution operations as well as independently bottling partners, distributors, wholesalers and retailers. Coca-Cola operating groups are all over North America, South America, Africa, Europe and Asia, Pacific, Bottling Investments, and Corporate. With a total assets of $ 90.055 billion, Coca-Cola is the dominant leader of the global soft drink and the combination between sales, technology development and marketing have made them one of the most widely recognized and profitable companies in the world.
Why the company did so successful over one hundred years? Besides the reason that the product is very tasty, another important reason is the company’s marketing strategy. The 4 ‘P’s (i.e. product, price, place, promotion) will be talked about as following. PRODUCT The Coca Cola Company has almost 400 brands of beverage.
“In 2003, beverage companies donated roughly $326 million to charities” (The American Beverage Association). These companies not only provide jobs and give to charities, they help promote the biggest events that are to come. For example, Coca-Cola sponsors the biggest event that happens every 4 years The Olympic Games. “The company sponsored the 1928 Olympic Games in Amsterdam, and has supported every Olympic Games since.
PepsiCo also has an extensive distribution channel serving over 10 million stores a week I over 200 countries. (Strategicmanagementinsight.com.) One of the reasons why PepsiCo’s growth has been so successful is its approach to merging and acquisitions of beverage, bottling and snack companies. These merges have lead to the company not having to rely on the sales of a particular brand or product and mean that the company has 22 brands that contribute to its income. PepsiCo spent over $2 billion on advertising in 2012 this lead to an increase in their market share and their competitiveness.
Pepsi Company – An Overview OVERIVEW PepsiCo is a world leader in convenient foods and beverages, with revenues of about $25 billion and over 142,000 employees. The company consists of the snack businesses of Frito-Lay North America and Frito-Lay International; the beverage businesses of Pepsi-Cola North America, Gatorade/Tropicana North America and PepsiCo Beverages International; and Quaker Foods North America, manufacturer and marketer of ready-to-eat cereals and other food products. PepsiCo brands are available in nearly 200 countries and territories. Many of PepsiCo's brand names are over 100-years-old, but the corporation is relatively young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay.
Company Background The Coca Cola Company has served various kinds of drinks from 1866 until present. As expected, Coca Cola Company made $48 billion net operating revenues, $9 billion net income, and $162 billion market capitalization in 2012. These huge amounts of earnings in 2012 proving that the Coca Cola Company makes big profit successfully within a year. Besides profit that is achieved, Coca Cola Company also ranked by Interbrand as World’s Most Valuable Brand with $77.8 billion in 2012. Moreover, the company supports over 280 physical activities or nutrition education programs in more than 115 countries around the world (The Coca Cola Company, 2013).
“We make our branded beverage products available to consumers throughout the world through our network of Company-owned or -controlled bottling and distribution operations as well as independent bottling partners, distributors, wholesalers and retailers — the world’s largest beverage distribution system.” Consumers in more than 200 countries enjoy its beverages at a rate of 1.9 billion servings a day. Thus, people pay close attention to every important decision Coca–Cola Company makes. (2013 10-K) Another reason is that Coca–Cola Company has its unique corporate culture and idea of development. Coca–Cola has a great ... ... middle of paper ... ... and put more energy on their employees’ right and working environment. This way Coca-Cola could keep high quality partners and enhance the auditing of its supplier by reducing the partners.