Costs of Production Coca Cola faces many costs when producing their products. These cost are usually categorized into variable costs and fixed costs. Variable costs are costs that vary depending on production output. Some examples of variable costs that Coca Cola incurs include labor, raw materials, packaging, and transportation and deliver cost. Raw materials are a major variable cost for Coca Cola. When production increases more materials are need to product more product therefore the cost for raw materials increases. The main raw material in all Coca Cola products is sugar which includes high fructose corn syrup, sucrose, and sugarcane. The availability of these natural resources often depend on weather conditions making for fluctuations …show more content…
This includes according to Coca Cola’s annual report, PET resin, preforms and bottles, glass and aluminum bottles, aluminum and steel cans, plastic closures, aseptic fiber packaging, labels, cartons; cases, post-mix packaging, and carbon dioxide. (Kent & Waller, 2016). Fixed cost are costs that remain constant regardless of production output. Some examples of fixed cost that Coca Cola incur includes rent expenses for their bottling plants, salary for thousands of employees, the cost to upkeep their plants and equipment, insurance, and advertising expenses. Advertising is a big production cost for Coca Cola that does not change when output changes this is because companies will continue advertising their products whether output is low or high. The cost of advertising includes magazines ads, billboard signs, celebrity endorsements, and …show more content…
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,
With the various things such as mixed cultures quality assurance employee training etc. it can be seen that Coca Cola is determined to be ‘The very best’. As a whole, Coca Cola do not only want to make profit and be the No.1 dinks company, but they also wish to help the community and environment to the best of their ability. With the amount of money that they have put into doing this, they push themselves to become even more successful by gaining more and more trust from customer. BLIOGRAOPHY Advanced Business: Michael Fardon Frank Adcock Ian Birth David Cox Michael Matchan
Coca Cola Company has over 300 different brands across 200 countries. The company offers customers both carbonated and non-carbonated beverages which include fruit drink, fruit juice, sports drinks, bottle water and coffees. To stay ahead of the competition, Coca Cola is always developing new and existing brand locally and globally. The company does a good job investing a lot of money in marketing campaigns. These campaigns are meant to help with spreading awareness so that customers can stay inform of new and existing brands.
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.
Also, to save and recycle the usage of water. To defuse further boycotts or demonstrations against their products, they need to set up specific funds to have people cultivated on certain awareness, help fund agricultural products and set up seminars in schools to make people aware of certain information they need to know. The furor will definitely subside in long-term if Coca-Cola doesn’t talk to the people but the best way is to face the situation directly by giving a statement to the
Coca Cola should focus on growing its supplies to food stores. As noted earlier, the food store buyers are considerably consolidated: with numerous supermarkets and chain stores. Given that they provide shelf spaces that are premium, they command depressed, or lower, prices. Coca should be more aggressive in investing in the production of substitutes such juices, coffee, and water in addition to its core products. It should continue challenging its main competitor, Pepsi, on the advertising and differentiation fronts as opposed to pricing
These costs are usually categorized into variable costs and fixed costs. Variable costs are costs that vary depending on production output. Some examples of variable costs that Coca Cola incurs include labor, raw materials, packaging, and transportation and deliver costs. Raw materials are a major variable cost for Coca Cola. When production increases more materials are needed to product more products, therefore the cost for raw materials increases. The main raw material in all Coca Cola products is sugar which includes high fructose corn syrup, sucrose, and sugarcane. The availability of these natural resources often depends on weather conditions, making for fluctuations in market prices. Another example of raw material costs is the cost of materials used to bottle their products. This includes according to Coca Cola’s annual report, PET resin, preforms and bottles, glass and aluminum bottles, aluminum and steel cans, plastic closures, aseptic fiber packaging, labels, cartons; cases, post-mix packaging, and carbon dioxide. (Kent & Waller, 2016). Fixed cost are costs that remain constant regardless of production output. Some examples of fixed cost that Coca Cola incur includes rent expenses for their bottling plants, salary for thousands of employees, the cost to upkeep their plants and equipment, insurance, and advertising expenses. Advertising is a big production cost for Coca Cola that does not change when output
Coca –Cola (KO) is one of the world’s largest beverage companies. Company was incorporated in September 1919 under the State of Delaware law and headquarters is located in Atlanta Georgia. But from 1886, company established its brand in US (Coca-Cola, 2012, p. 1). Currently company is providing for more than 500 varieties of non-alcoholic sparkles to the customers around the world. Apart from this, company also serve for still beverages that includes enhanced water, water, ready-to-drink, juices, energy drink, sport drinks and so on.
“Consumers no longer want only a great product; they want to buy products from companies that align with their character and values” (Kent, n.d, para. 1). In 1886, Dr. John S. Pemberton was a pharmacist who created a drink consisting of mixing syrup with carbonated water (World of Coca-Cola, n.d). Frank M Robinson, was his bookkeeper and then partner, invented the innovated trademark, logo and script; still used today (World of Coca-Cola, n.d). Pemberton sold portions of the company to new investors who took the product and the brand to the next level. Three years later, the Coca-Cola Company was born making it the biggest and most recognized brand sold internationally. The selected product will examine the customer segment, assessing the
...ke its decision to change the formula of Coke in 1980s but its overall performance has been quite impressive. At present, the company has adopted some new strategies in order to increase its market share in the international market and is rapidly expanding its operations worldwide. It is obvious from the above study, that the management of Coca Cola has been successful enough in devising its marketing and promotional strategy and this is the reason that Coca Cola is one of the well-known brands in the world. However, there are still some areas in which the company needs to bring improvements. For instance, in some countries where Pepsi has a market leadership, Coca Cola needs to improve its promotional strategies and offer more value to the consumers so that it may outperform Pepsi. Works Cited Coke Says Cheers, http://www.fool.com/News/Take/2003/take030320.htm
regional bloc. These brands include Azam energy drink and Lavita soft drink from Uganda which are taking up the market share traditionally controlled by Coca cola company products. Further, Coca cola bottling companies in Uganda and Tanzania enjoy lower taxes in their countries making their products more affordable unlike their counterparts in Kenya, and this has led to transshipments from those countries leading to intra bottler’s competition. Another factor contributing to the proliferation of brands within the local market is the influx of cheap imports from countries in the Asian continent. This has introduced even more brands in an already overcrowded market. Therefore, this means that the soft drink industry is one of the sectors of the
Learning from experience Coca-Cola has had some fierce competition over the years but nothing in the form of an entire health market shift like now. As well as mounting political persecution of its products like they are facing today. They must rely on past experiences to get through but likely will need to start studying the new trends to stay relevant.
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.
Coca-Cola’s name came about due to its two main ingredients, cocaint and caffine, which are extracted respectively from the coca leaf and the kola nut, thus its name Coca-Cola.
Coca-Cola is a company with sustainable competitive advantage. The company is innovative and has an extensive business model with boasts of a sustainable distribution network. The company was incorporated in the late 1800s to commence the production of a sweet fizzy beverage that has become the world's most known brand. Presently, the company is still on an upward trajectory as it remains one of the world's most sought-after stocks. The company's competitive advantage has shown resilience and sustainability over the years.
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