Coca-Cola has faced many strategic challenges during the past decade. They face challenges like competition from PepsiCo, new consciousness about healthier lifestyles, missed opportunities and weak foreign exchange rates (Mourdoukoutas, 2013). Many accuse Coca-Cola of missing opportunities to grow and enter markets that would bring them success. One such instance is the rural Chinese market. Mourdoukoutas (2013) refers to these markets as” either too small in terms of revenue potential or too costly in terms of the operating expenses required to tap into them” and references that this is the reason that Coca-Cola has failed to capitalize on their potential. Now, that market may be lost forever since a company called Future Cola has set up …show more content…
Coca-Cola has previously been resistant to change but since public figures, like First Lady Michelle Obama, are campaigning to bring obesity and unhealthy lifestyles to the national forefront and to encourage increased consumption of water and healthier alternatives than sugary carbonated beverages, the company has been forced to reevaluate (Stewart, 2014). Consumers are looking for healthier alternatives and Coca-Cola and other beverage companies have had a hard time keeping up with and meeting those needs. According to Stewart (2014), Coca-Cola holds the largest market share of the beverage industry, with over 60% of its sales coming from the sale of soft drinks; therefore, they are obviously taking the biggest hit with all of the scrutiny and criticism. There is also the potential levy of a “fat tax”, “soda tax” or “sugar tax” in some countries which will also pose a huge challenge for Coca-Cola if implemented (Coca-Cola Co., 2013). To combat this problem, Coca-Cola is working diligently to find innovative ways to sweeten their products with healthier options. They have introduced a number of different products with reduced calorie and sugar content or with alternative sweetener content. In 2013, they began testing their most recent product in Argentina and Chile; Coca-Cola Life which is a …show more content…
Each of the two companies was fighting to have the biggest market share of the beverage industry and to be the consumers drink of choice. The competition has waxed and waned throughout the years; heating up at times and allowing things to be calm at others. Parnell (2014) stated that the benefits of company growth do not always outweigh the cost. Approximately 40 years ago, the big thing was the blind taste tests to determine which cola consumers liked best. Both companies spent millions of dollars attempting to secure the largest market share without realizing that they were doing nothing for their bottom line (Parnell, 2014). Today, the challenge has been revamped and taken to new heights. According to Ember & Steel (2015), Pepsi has recruited celebrities, including Usher, Serena Williams and Usain Bolt, to recruit consumers to participate in a series of challenges meant for the social media generation. During this challenge, the so called Pepsi Ambassadors will take to social media monthly and challenge consumers to something that blends social responsibility with pop
Many Americans assume that junk food company giants, like Coca Cola and General Mills, only care about making a profit off the obesity epidemic that is plaguing the United States. These companies are earning millions of dollars in profit from the mostly unhealthy products they sell in stores. In recent years, these same companies have been reducing the amount of fat, salt, and sugar in their products in order to make them ‘healthier’ and appeal to the more health-conscious crowd.
The soft drink industry in the United States is a highly profitably, but competitive market. In 2000 alone, consumers on average drank 53 gallons of soft drinks per person a year. There are three major companies that hold the majority of sales in the carbonated soft drink industry in the United States. They are the Coca Cola Company with 44.1% market share, followed by The Pepsi-Cola Company with 31.4% market share, and Dr. Pepper/Seven Up, Inc. with 14.7% market share. Each company respectively has numerous brands that it sales. These top brands account for almost 73% of soft drink sales in the United States. Dr. Pepper/Seven Up, Inc. owns two of the top ten brands sold. Colas are the dominant flavor in the U.S carbonated soft drink industry; however, popularity for flavored soft drinks has grown in recent years. The changing demographics of the U.S population have been an important factor in the growing popularity of these flavored soft drinks. The possible impact of this factor will be addressed later in the case.
Beverage giant Coca-Cola wants to get a little love for its iconic cola drink from the upscale consumer set, so its decided to create and test-market a sleek set of contoured aluminum bottles for its flagship Coke brand. Yes, we said aluminum bottles.
Analysis of the Coca-Cola Company The Coca-Cola Company is the world's leading manufacturer, marketer and distributor of soft-drink concentrates and syrups. The Coca-Cola Company is the world's leading manufacturer, marketer and distributor of soft-drink concentrates and syrups. The Company markets many of the world's top soft drink brands, including Coca-Cola, Diet Coke, Sprite and Fanta. Through the world's largest and most pervasive distribution system, consumers in nearly 200 countries enjoy the Company's products at a rate of more than one billion serving a day.
The great taste challenge was a marketing scheme developed by Pepsi Cola to convince consumers to switch from Coca-Cola to Pepsi Cola (Schindler, 1992). The blind taste test was sparking consumers to switch from Coca-Cola to Pepsi Cola in the mid-1970 (Schindler, 1992). By late 1970, Pepsi Cola had succeeded Coca-Cola in product sales in grocery stores (Schindler, 1992). The loss of market shares ignited Coca-Cola to reformulate a new smoother, sweeter cola taste to compete with Pepsi Cola (Schindler, 1992). By mid-1980, Coca-Cola was back to number one again thanks to the success of their diet cola product (Schindler, 1992). However, Coca-Cola decided to launch a newly formulated cola product to replace the old cola regardless (Schindler,
Weaknesses – Coca-Cola is a very successful company with an impeccable social media following. Word of mouth is probably a strength, but only when feedback from consumers is positive, but there are people who are against Coca-Cola and their products. Even though Coca-Cola produces over 200 brand products, Coca-Cola lacks the social media popularity of other brands that they produce (Moth, 2013). Many drinks that they produce are extremely popular such as Coke or Sprite, but there are a lot of Coca-Cola products that are unknown, unseen, and unavailable for
The drink was invented as a medicinal drink to cure headaches by using caffeine, acting as a vasoconstrictor (Gehani, 2016). Moreover, Coca-Cola created a nickname known as Coke, producing ad campaigns publicizing the same trademark drink. Coca-Cola is a valuable brand generating “$72.5 billion in 2000 to $77.8 Billion in 2012 and $78.4 in 2015” (Gehani, 2016, p.13). According to Bashin, principal segmentation goal is to acknowledge the customers, but Coca-Cola focuses in adjusting its advertising strategy by generating innovative products (2017). Furthermore, Coca-Cola targets everyone because it does not discriminate gender, age, ethnicity nor lifestyles since it sells in more than 200
Review the critical external and internal environmental factors that have strategic implications in the future for Coca Cola
Considering individuals are becoming more health conscious it would be beneficial for Coca Cola to continue producing even more healthy products. Producing healthier drinks could potentially get their products back in schools. Researching into cheaper materials as well as environmentally friendly alternatives to plastic would be another recommendation. The main concern for Coca Cola is water supply. Without water Coca Cola would not be able to stay in business. It is recommended for Coca Cola to reduce the amount of water it uses. They have already begun a goal to improve water use. “Our 2020 goal is aggressive and builds on the 21.4% water efficiency improvement we’ve made since 2004. We expect to increasingly assess not just the quantity of the water used to grow our product ingredients, but the impact of that use as well” (Improving,
Experimentation with the new market for carbonated beverages on the decline coke has done experiments in new flavors and healthier alternatives to try to stay competitive. As well as investing in “Keurig Green Mountain is a K-Cup maker but has a new Keurig Cold that can deliver Coca-Cola through the new system.” (Cooper, 2014)
Coca - Cola : Claims, Values and Polices Coca-Cola is a well-known and cherished brand name. When people think of this name, memories tend to overflow in their heads. Why do you need to be a member? Because, not only does Coke taste great and refresh your own personal memories, it also fills you with memories of the Coca-Cola like "Always Coca-Cola", the antics of the Coke polar bears, and all of the different ads that have represented Coke over the years. Just about every ad you see, as a consumer, has tons of hidden meanings.
Cola Wars Environmental Analysis 1. Introduction External environmental analysis of US carbonated soft drink (CSD) industry allows concluding that declining CSD sales call for changes in industry operations whereby market players can benefit from the fundamental shift in the industry development and maintain its leadership positions in beverage market. Analyses of macrolevel, industry, and competitive environments suggest that expansion, strong brand recognition, and changes in value chain will be key success factors in the future industry development. 2. What is the difference between a.. External environmental analysis a. Macrolevel environment (PESTEL analysis) i. Political New federal nutrition guidelines identified CSD as the largest source of obesity-causing sugars in the American diet.
The Coca-Cola company was founded in 1886 by John Pemberton, a Civil War veteran and Atlanta pharmacist. He was inspired by his curiosity as he stirred up a fragrant, caramel-colored liquid that he brought down to a place called Jacobs’ Pharmacy. There he added carbonated water and let several customers sample the new concoction. Jacobs’ Pharmacy put it on sale for five cents a glass and named it Coca-Cola. This “inspired curiosity” has now grown to be the world’s leading manufacturer, marketer, and distributor of nonalcoholic beverage concentrates and syrups. In 1906 Coca-Cola opened bottling plants in Canada, Cuba, and Panama. Today they produce nearly 400 brands in over 200 countries. More than 70% of their income comes from outside the U.S. (1). This paper will focus on an analysis of operations of the statement of cash flow reports and a vertical and horizontal analysis of the consolidated balance sheets. Also an analysis of the global financial condition of the Coca-Cola Company and the value of goodwill and other intangible assets will be discussed.
Thanks to my fascination with PepsiCo and partly because this is an assignment, I went online and search for some of PepsiCo’s most successful and ongoing marketing campaigns and strategies. During my research I noticed several daring marketing strategies Pepsi employed throughout the years. For example, gaining the support of Michael Jackson in the 1980’s and latest gaining the endorsement of global pop star Beyoncé.
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