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Coca-Cola case Economics Auteur: Job de Visser Versie: 2.0 Onderwijs instelling: HZ University of Applied Science Departement: Economie & Management Uitgave: 29 January 2014, Vlissingen Coca-Cola case Economics Auteur: Job de Visser Studentnummer: 65920 Semester: 1 Study year: 1 Lecturer: J. Jessen Group: IBMS 1B Contents Page 4…………………Developments Page 5…………………Porter’s 5 Forces Page 6…………………Porter’s 5 Forces Page 7……………………Conclusions Page 8……………………Annex 1, Sources My focus is on the Coca-Cola Enterprises it is a marketer, producer, and distributor for Western Europe and former bottler of North America Developments If you are a global company, like Coca-Cola and PepsiCo, or a local manufacturer. They all have to develop new soft drinks, to full-fill the changing or new needs for consumers. This development can be done on brand new markets or on the traditional markets. It is a big challenge for the companies to differentiate their product towards the competition. In the more developed markets it is hard to differentiate your product, because there is a lot more competition. The future of the soft drink industry are in the upcoming countries. These upcoming countries are: China, Brazil, India, Indonesia, Nigeria, Venezuela, and Colombia. The current products is the biggest part of the growth in these new markets, but these countries have other lifestyles and that will lead to the obligation to develop new products. The growth of the soft drink industry will be based on staple products, like bottled water and carbonates. In the developed and the new markets is the competition increased, so it is n... ... middle of paper ... ...ry critical. So Coca-Cola have to invest a lot of money in the differentiation in the products. An advantage of this market: the distribution is all via the supermarkets and hypermarkets. The economic crisis hit this market the most, because consumers are more critical. The biggest investments are for every market: Traditional: distribution channels. Modern: marketing. Post-Modern: differentiation. My advice for Coca-Cola is to invest in the modern market. Because I think marketing is the ‘smallest’ investment. They have to invest in marketing because of the competitive small companies. And the other markets have more huge disadvantages. The traditional market have a small bargaining power of consumers, you cannot solve this problem. And the economic crisis has an huge impact on the post-modern market. I agree with the plagiarism control Internet sources
To handle the enormous scope of its business, the Coca-Cola Company has divided into six operating units: Middle and Far East Groups, Europe, The Latin America Group, The North America, The Africa Group and The Minute Maid Company. The head Quarter is in the United States. Methods of Research I will use The method of research which I will use is the secondary research, i.e. I have asked The Coca-Cola Company to send me their history and annual reports. I will also call The Coca-Cola Company office to ask some details, I will also use ask them some relevant questions (questionnaire method), interview the people on the high street and will do some research over the Internet. From those sources I am going to finish my all other tasks.
In terms of promotional activities, the advertising and giving away of free offers and vacations by Coca cola and Basmati rice by Pepsi, the coca cola’s goal in connecting the youth to the market, the different promotional TV campaigns in India using of celebrities, and the Pepsi sponsorship of cricket and soccer sports. In terms of pricing policies, Pepsi got a quicker market share by their belligerent pricing policies and coca cola’s 15-25% price cut down in the market. In terms of distribution arrangement, the bottling and packaging of products for better distribution around
Control of market share is the key issue in this case study. The situation is both Coke and Pepsi are trying to gain market share in this beverage market, which is valued at over $30 billion a year. Just how is this done in such a competitive market is the underlying issue. The facts are that each company is coming up with new products and ideas in order to increase their market share.
In this report, our group selected Coca-Cola which has introduced a new product in the past twelve months. We conduct research on the Coca-Cola company profile and also include an analysis of the products before the launch of the new beverage product. This report also introduces the new product and identifies the circumstances leading to launch of the new product.
Coca-Cola is a drink driven market selling over 230 brands of soft drinks, energy drinks, juices, and water.
Opportunities • Community involvement • Ability to market new products • Growth through merger and acquisitions • Scholarship and research As a global leader in the soft drink, Coca-Cola enjoys significant opportunities that lie with the company’s ability to develop new products based on changes in customer behavior, culture and tastes. Additionally, other opportunities for Coca-Cola arise through mergers and acquisitions. “In the last year, Coca-Cola Company invested a reported $1.25 billion in company mergers and acquisitions, which represented 3.91% of its available cash during this period (The New-York Times, Feb 27, 2014)”. Moreover, the company through the Coca-Cola foundation gave millions of dollars in charitable contribution” to support community improvement, water stewardship, healthy and active lifestyles, community recycling and education (www.coca-cola.community.com)”. Threats • Threat on competing firms (Pepsi, DPS) • Health issues Although Coca Cola has a global competitive advantage in the beverage market, it still has to deal with the threat of competitors like Pepsi and DPS.
Focus on carbonated drinks: Coca-Cola has expanded its soft drink lines, it is still very much dependent on their carbonated beverages. The business is still focused on selling coke, Fanta, sprite and other carbonated drinks. This strategy works short term as consumption of carbonated drinks will grow in emerging economies, but it will prove weak *****as the world if fighting obesity and moving towards consuming healthier food and drinks. Sluggish growth.
Till now Pepsi’s brand strategies, marketing strategies and promotional strategies have been changed so many times. During the period from 1903 to 2014 Pepsi have faced numerous challenges from different soft drinking companies especially from its rival Coca-Cola Company. Pepsi have developed and remanufactured their brand in different times to beat Coca cola. Soft drinking beverage company not only face their generic competitors but also face different complementary drinking companies such as Tea, Coffee and mineral water.
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,
Precisely, this study assesses the impact of the Coca-Cola system on the soft-drink network, globally. Part of the job of designing a plan is deciding specifically what is intended to accomplish. The most striking trend in business today is the growing globalization of markets worldwide for goods and services. In sharp contrast to such market integration is the uncertainty and turmoil of market fragmentation. These changes pose great threat to the marketing strategist, as years of central control have hampered development of the necessary market mechanisms and infrastructure to support the implementation of marketing strategies. Coca-Cola has emerged as a leading brand in the whole world, when we talk of the beverage industry. In case of a tangible product like Coca-Cola, marketers need to focus on several other important issues like establishing a strong distribution network, ensuring the availability of their product at the right place, at the right time and at the right price. In addition to this, Coca-Cola can forecast the future demands for its products and can preplan its production schedules. It can also keep control over the quality of its products through improvements in production processes and strict controls over the quality of inputs. While considering the case of Coca-Cola it can be said that the company is in a position to charge a premium over its original price because of its strong brand recognition globally. However, practically speaking tough competition from rivals, especially from Pepsi has forced the company to reduce its prices to the minimum possible level. In the late 1980s, competition with Pepsi led to a discount war in which the margins of bottlers were abruptly torn away. As a result, many 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.
The Coca-Cola Company has evolved significantly over the years, but it’s history is a relatively
The Coca Cola Company has been among the world’s top companies that have been able to perform well in all the areas of the world. The company follows the latest strategic research and evaluation methods to formulate such strategic policies that helps in not only meeting the customer expectations and desires but also achieving various organizational goals and objectives.
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.
Look SDmart, Retrieved 05/16/07, from http://findarticles.com/p/articles/mi_m1365/is_1_31/ai_63974359/print. Coca-Cola: A Technological View, retrieved 5/18/07, from http://projects.olin.edu/ahs/HOT2004/PolarBears/content.htm. Coca-Cola Our Company- Around The World, retrieved 5/18/07 from http://www.coca-cola http://www.thecoca-colacompany.com/ourcompany/aroundworld.html Nutrition Business Journal. Penton Publishing. October/November 2005.