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Coca cola business background
History of coca cola company
Coca cola business background
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The Coca-Cola brand is the leading one in the beverage industry in the world. This company is the biggest producer, seller, and distributor of soft drinks and syrups throughout the globe (Oliver, 1986). In the US, it is the most popular and largest corporation. This firm is widely recognized through its popular product Coca-Cola which was discovered and made by John Smith in the late 1880s (Hays, 2004). Except of this core product, there are a number of other ones. Specifically, one of the major products made by the company is Powerade. This is a sports drink made from a combination of water, syrups, electrolytes and carbohydrates that help active people replenish the water and electrolytes lost after intense physical activity (Coca-Cola, 2014a). …show more content…
In 2009, Coca-Cola re-launched Powerade as Powerade ION4. Powerade ION4 was sold in three different flavors, namely orange, berry tropical, and cherry. This new and enhanced formula integrated four major minerals that are lost by the body through sweat in an isotonic sport drink. These minerals were sodium, calcium, magnesium, and potassium (Coca-Cola, 2014b). Powerade became popular and its sales increased significantly. Subsequently, Powerade ION4 helped to raise the brand’s market share to 22% in 2009, with the effect of reduction of Gatorade’s share to 77% (Blanding, 2010). This increase in market share has continued, with Powerade having a 28.5% market share, while Gatorade had only 70% as of 2011.
To sum up, a very important way in which this form of innovation and product enhancement has helped the company is the competitive edge. After the Powerade ION4 was introduced into the market, the market share of Powerade increased from 14% to the 30% in 2011. The introduction of this new product was a major innovation on the part of Coca-Cola, as it helped the company to compete more successfully with its main rival PepsiCo, resulting in the increase of market
I have chosen to assess Gatorade’s new G Series campaign. It consists of three separate products that are each to be used at a certain point in athletic activity. The first is 01PRIME (Gatorade.com, pictured to the right), it is to be taken 15 minutes prior to activity and has components very similar to an energy drink. It is high in B-vitamins and electrolytes, it’s meant to give a burst of energy right before a workout or competition. The second product is 02PERFORM (Gatorade.com, pictured to the left), which is their original product they’ve been selling for 40 years. It is meant to be consumed during an activity. The only changes are the fancy new name and updated packaging. The third is 03RECOVER (Gatorade.com, pictured below), it is to be taken post-exercise. The product is high in protein and helps the body recover from its exertion. It is comparable to many other post-exercise protein drinks but it also claims to be the first of which that actually quenches your thirst. The audience Gatorade is trying to reach is athletes that want to maximize their effectiveness at their given sport. They are also trying to aggressively penetrate two new markets, energy drinks and post-exercise protein drinks, that they have not previously thrived in, using their flagship beverage as part of the campaign. This campaign is currently running and has been for most of 2010.
Gatorade is a reputable market leader in US sports drinks industry, thus being so broadly recognized is a top strength of the company. Gatorade's strong brand awareness and status amongst the masses and in the area of certified sports solidifies their grip on the market. This helps devalue the existing competitive brands such as Powerade; also restricting the new brands in the industry to flourish. Affiliations with professional athletes and teams is another top strength of Gatorade as a brand. This translates into a powerful value in terms of not only expanding their consumer base but also truly building the 'sporting element' of the brand. While celebrity endorsements help promote the Gatorade
Instead of just sponsoring professional athletes to show the benefits of Gatorade to everyday athletes, Gatorade used the popularity and power of the pros to depict a different, broader social message. Along with spectacular technical aspects and varying settings, Gatorade was able to prove to all people that victory in anything or any place comes from initial defeat and was able to ignite the self-drive that all of humanity contains but struggles to find. This strong emotion that is felt in just 67 seconds changes the perception of Gatorade and all it stands for. By directing their message at such a wide audience, they were able to change its reputation and prove that Gatorade products are not just for athletes, but for everyone. With “The Secret to Victory,” Gatorade has inspired and instilled a new sense of motivation in viewers but has also successfully and ingeniously created a much larger consumer
After PDB acquired Crescent Pure in July of 2013, its management team was faced with a decision when discussing how the product was to be marketed -- some felt that the drink’s energizing ingredients would make it a better fit as an energy drink, while others felt that its hydrating elements would make it a better fit as a sports drink (Quelch, Zalsoh 2014). Crescent Pure was founded in 2008, as founder Peter Hooper wanted “a drink that would refresh, energize and enhance mental focus” (pg 2). However, Crescent Pure will be PDB’s first entry in the U.S., sports and/or energy beverage markets; therefore, in discussing the
In 2003, Palmer Jackson, Inc. created a new line of sports beverage called Green Ox. This beverage has some differences from other similar beverages, as it contains the benefits of antioxidants and it can compete in more than one category, such as sports drinks, vegetable juices, and antioxidant supplements. These are not the only advantages of Green Ox, because some reputable reports argue there is a strong link between using the vitamins and minerals that Green Ox has to reduce the risk of some specific types of cancers, and Green Ox will launch on a type of market that is growing to 15% per year. In order to ensure the success for Green Ox, the company has contracted with Marketing Studies Incorporated (MSI) to study the market and do some important researches. However, Palmer Jackson, Inc. faced one of the challenges that has been common when companies prepare to launch new products on the market. First, the company needed to determine the target audience, especially as we know the large variety of people who deal with this kind of product. Second, the company needed to think thoroughly about how it could position Green Ox with its benefits on consumers’ minds, as Green Ox has the capacity to compete in three different
Powerade and Gatorade are brands of sports vitality drinks, yet all the Despite they impart A large number similarities, for example, the Incorporation about electrolytes, dietary contrasts situated those two brands separated starting with one another(. Seeing the preferences and Hindrances for every mark will help you select the flawless drink to your workout.
Being the inventor of sports drink, Gatorade’s assumption about its customer is very clear. Its aim is to provide rehydration and replenishment to athletes and people with an active lifestyle. Every athlete and sportsperson lose important nutrients while performing physical activities and requires water, electrolytes, carbohydrates and vitamins to keep themselves rehydrated. Gatorade positions itself very well here.
To find the answer we performed an experiment. We decided to put the drinks to the test by exercising, and then seeing how well we shoot 10 free throws. But after we exercised we drank either Powerade or Gatorade. We would then collect data, analyze it, and ultimately find out which drink is more effective. When I finished working out on Day 1, I drank Gatorade. I made 8/10. On Day 2, I drank Powerade after exercising and shot 7/10. And since the results were very similar I decided I would exercise and shoot 10 more on Day 3. But instead of drinking a sports drink I just drank water. I made 7/10. This data was very interesting. It shows Gatorade improved performance more, but nothing really stood out. So unless you plan on running a marathon or other strenuous athletic tasks, it will not really matter if you drink Powerade or Gatorade. Our experiment even showed, no matter how many fancy sports drinks come out, water is always a very reliable option when it comes to regaining lost
1975 heralded the Pepsi Challenge', a landmark marketing strategy, which convinced millions of consumers that the taste of Pepsi was superior to Coke. Simultaneously, Pepsi Light, with a distinctive lemon taste, was introduced as an alternative to traditional diet colas. In 1983 Coke launched aspartame/saccharin blend Diet Coke. In response in 1989 Pepsi-Cola introduced an exciting new flavor, Wild Cherry Pepsi. Thus Diet Pepsi's 'The Other Challenge' campaign was based around a 54-46% lead over Diet Coke in independently researched taste tests in Australia. It was only in 1996 that Pepsi unveiled a revolutionary 'blue' look worldwide 'to transform the image and attitude' of one of the world's best-known brands. 'Pepsi Blue represents a quantum leap into the future and redefines how the Cola Wars will be fought and won in the 21st Century.'
Competition also presents itself in original sports drinks, such as Gatorade (Pepsi) and Powerade (Coca Cola). Furthermore, premixed alcoholic drinks like the Smirnoff range form part of the competition.
Pepsi Company (PepsiCo) owns many brands of beverages, snacks and other foods. Its major product, Pepsi Cola, is one of the most popular carbonated beverages. Besides that, PepsiCo owns the brands Quaker Oats, Gatorade, Frito-Lay, Tropicana, Mountain Dew, Naked, Mirinda and SoBe. In order to maintain, or preferable expand, its market share, PepsiCo constantly introduced new products under its brands. This is a marketing strategy known as Product Development. By modifying the formulas and ingredients, PepsiCo had invented and marketed more than 50 types of carbonated beverages under the brand of Pepsi. To name a few, Pepsi Free introduced in 1982, Pepsi AM introduced in 1989, Pepsi Tropical introduced in 1994, Pepsi Blue introduced in 2003, Pepsi Edge introduce in 2004, Pepsi Lime introduced in 2005, and Pepsi Ice introduced in 2007. Some of the products survive and being accepted by consumers, however large number of the new formula Pepsi had failed and been removed from the market shelves in as short as 6 months.
Coca Cola has improved the market attractiveness and relative business strength, by introducing the Coca-Cola tea product. The light on the pocket segment experienced low market growth and relative market share initially.
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.
For an international company such as Coca-Cola that is required to serve an international market, it would be more convenient to use a capital-intensive mode of production. This ensures that products are manufactured in large quantities and without delay. For this reason, technology is of the essence in production in the company. An upgrade in the technology used in the production of Coca-Cola products would help the company lower the cost of production which would, in turn, increase the supply of the products to the market. I believe that Coca-Cola belongs to the oligopoly type of market structure. In this kind of market structure, the market to be served is vast, but the producers are few. In this case, in the beverage industry, the two most significant producers are The Coca-Cola Company and PepsiCo, both producing Coke and Pepsi. In this type of market, there is limited entry by other producers, which allows the leading producers to compete not only regarding price to increase profits (Leahy, 2013). Additionally, firms in this kind of market have substitute products and the main causes of success include advertisement, packaging and to some point customer loyalty. Undeniably, PepsiCo’s products are not so much different from Coca-Cola’s products, but the latter has continued to succeed due to customer loyalty and the fact that its brand is internationally
Introduction Coca-Cola is the largest cold and soft drink company in the world and it exists in more than 200 countries. The company brand is also much more popular than other brands in the world because they go global in the entire world and everyone can find it almost everywhere. Moreover, in 1993 the company came back to India after the new government policy that required the company to show the formula in 1977, which made Coco-Cola stop working in India at that time (Banerjee, 2009). Coco-Cola came back because they knew that the Indian population is 1 billion people, which is a huge market for soft drinks. The soft drink industry grew 76% from 1998 to 2002, and Coca-Cola invested $1 billion to become the leader in India again.