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 …show more content…
However, a sales performance review in the year 2015 of new soft drinks introduced by Coca cola established that in Mount Kenya region, only 15% had succeeded, 55% were performing poorly, 17.5% had failed completely, while another 12.5% exhibited abnormally high artificial growth.(MKBL,2015) Despite the introduction of new products by the Company, its market share in the soft drinks market dropped from a high of 98% in year 2013, to a low of 93% in 2015 in Mount Kenya region, which included Nyahururu town. (Ac Nielsen, 2016). There have been complaints by customers on the products attributes, pricing, distribution and the execution of promotional activities. Still, there is scanty and inconclusive empirical data that would explain this trend of Coca cola products within Nyahururu town. A study by Migwi (2012) researched on Mount Kenya Bottlers response strategies to changes in external environment. However this research did not study the effects of marketing mix variables of new Coca cola soft drink products on sales performance as it was out of scope. This study therefore, aimed at filling this knowledge gap by examining the effects of marketing mix variables of new Coca cola soft drink products on the company’s sales performance in Nyahururu town. It aimed at providing insights towards the application and integration of the marketing mix variables by marketing managers so as to achieve the envisaged goals. By gaining insights into how sales performance is affected by the marketing mix variables, the company is going to design and integrate the marketing mix better, therefore improving sales performance in terms of market share, growth and ultimately,
Coca Cola is more interested in penetrating all markets and is willing to invest heavily in areas that will support distribution to emerging markets like South Africa. Coca Cola does this by establishing bottling plants as close to their consumers as possible. This puts the production and distribution (and jobs) directly in the hands of the local territories; this allows communities to be invested in the success and distribution of Coca Cola. As an example; in South Africa they have the first all-Black managed bottling plant which has won Coca Cola a tremendous amount of respect and continues to perpetuate brand loyalty in that region. This Model has allowed Coca Cola to expand to 56 countries with 160 plants alone on the African
It is difficult to satisfy all the customer needs at once. This calls for a better approach in order to ensure that the marketing success target the specific group of consumers who will be served well. This requires the selection of the best target market that will enable the company to develop a successful marketing strategy. Currently, it appears that there is a great demand for low calorie/fat content foods and drinks. This is a fast growing market segment in the soft drink market. High consumption of fat content may result to heart diseases and diabetes and many customers are beginning to adopt the healthy life style that demands low consumption of sugar contents (Nasdaq, 2014). The popularity of low calorie foods and soft drinks is going
Therefore, the long-term brand of Coca cola and better pricing strategies would help in competing with Pepsi. Unlike, Pepsi, Coca cola had targeted entering into partnership and alliances with local distributors and firms. This helps to develop strong relationship within the domestic firms to reduce the domestic barriers and thus, enhance the company’s competitiveness (Thabet, 2015). Lastly, the Asian markets consist of related and supporting industries to the soft drink industry that helps the companies in gaining a strong competitive position in the markets. Based on the competitive advantage of nation’s model, Coca cola has more home based advantages to develop a competitive advantage in relation to other countries on a global
Over the past thirty days Coca Cola Stock seemed to remain stagnant. While over a long portion of time Coca Cola could be very profitable, as of right now it seems to be a constant range of $40 to $42. The risk with investing in Coca Cola stock is that if one were to be wanting to make money with this stock it would take a very long time. It is more the type of stock someone buys in order to retain their money instead of make money. This is not a bad thing in the long run, but if someone were obtaining their fortune in this way Coca Cola would not be the stock to buy. Something with better fluctuation would suit a person like that. Overall I lost about $1.27, which is not bad at all, considering I bought it at the highest point of the thirty day period. I learned that longevity is not always the best way to go unless someone has a long time to wait it out. Plus this type of stock can remain stagnant for a very long time before skyrocketing or falling off the stock market. Overall, Coca Cola is very risky where it is right now because it is not showing any
introduction to young and old, are Coca Cola and PepsiCo Inc. However, these cola drinks are
The beverage industry is highly competitive and presents many alternative products to satisfy a need from within. The principal areas of competition are in pricing, packaging, product innovation, the development of new products and flavours as well as promotional and marketing strategies. Companies can be grouped into two categories: global operations such as PepsiCo, Coca-Cola Company, Monster Beverage Corp. and Red Bull and regional operations such as Ro...
Introduction: A SWOT analysis for Coke and Pepsi will cover the following: The company’s strengths and competitive advantages over the other; The weaknesses of external and internal factors leading towards a decline in revenue sales; Opportunities to buy into and make risky business decisions of either entering new markets or acquiring another company; Threats to the market and legal cases that each company faces.
One of the Cola-Cola weaknesses is the slow-moving market particularly in China that impact the volume growth of the company. Another weakness is the public perception of soft drinks that raise health concerns and incr...
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.
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
Coca-Cola is a popular carbonated soda created in the 1880's. This beverage has become popular all over the world and can be found in nearly every country, every state, and every store. Since the Coca-Cola company was created, billions of the soda have been sold. The company has grown tremendously over the years.
There are strong factors that influence consumers buying decision making. For example, when consumers choosing between Coca cola after studying different researches concept concerning consumers buying behavior of Coca Cola and Pepsi in the UK.decide to create theoretical framework. The framework will consist of the main characteristics which have an impact on consumers buying decision of beverage in the UK. Customer approach is the main factors that influence consumers buying decision, and those who satisfy with the quality of the product and the price of that brand product will a positive attitude toward that brand for example any customer who have a positive attitude toward Coca Cola will prefer to buy coke. Consumers who, dissatisfied with the Pepsi will have negative attitudes to buying Pepsi. Ward, S., & Robertson, T. S. (1973) this research designed the framework in consideration to main factors which have influence on changing consumers mind when making their buying decision. Perceived value, perceived quality and perceived risk) whereas extrinsic cue are product related characteristics (brand, perceived price, advertise and WOM. Gendel-Guterman, H., & Levy, S. (2013). Considerate these variables are significant for this research since they have a substantial impact on buying
product was sold throughout the U.S., making new outstanding flavors and bringing people together in the community.
The purpose of this report is to compare financial reports from the two largest soft drink manufacturers in the world. The Pepsi Co. and Coca Cola have been the industry's leaders in their market since the early 1900's. I will use relevant figures to determine profitability, and break down key ratios in profitability, liquidity, and solvency. By breaking down financial statements, and converting them to percentages and ratios, comparisons can be made between competitors regardless of size.
As the world 's largest manufacturer and distributor of non-alcoholic beverages, Coca-Cola is certainly no stranger to global marketing. Established in the US, Coca-Cola initiated its global expansion in 1919 and now markets to more than 200 countries worldwide. It is one of the most recognizable brands on the planet and also owns a large portfolio of other soft drink brands including Schweppes, Oasis, 5 alive, Kea Oar, Fanta, Lilt, Dr Pepper, Sprite and PowerAde. Despite this, Coca-Cola often struggles to maintain its market share over its main rival PepsiCo in some overseas markets, particularly Asian countries.