Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
Coca cola economic issues
Factors affecting coca cola company
Coca-cola economic forces
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: Coca cola economic issues
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
Key success factors in the industry are a strong brand presence, maintaining customer loyalty as exploring new markets and distribution channels as well as offering a diversified product line. Implications of these factors are strong competition and dependency of company’s behavior and marketing strategies on competitors’ behavior. This is especially true for Coca-Cola and PepsiCo since their flagship products are very much alike in look and taste.
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.
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
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.
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,
...argaining power on the price of the soft drink. If Coca-Cola was to increase the prices, customers are highly sensitive to the price of soft drinks and can easily switch to another beverage brand due to many other choices that they are able to choose from.
Coca-Cola is a drink driven market selling over 230 brands of soft drinks, energy drinks, juices, and water.
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.
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.
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.
Coca-Cola’s indirect competitors coffee chains like Starbucks offer healthy competition to Coca-Colas carbonated drinks they may not be big competition for Coke, but they do give a dent to its beverage market and similarly health drinks like Tropicana as well as energy drinks like red bull and Gatorade are stealing away market share indirectly. These chains offer healthy competition to Coca-Colas carbonated drinks they may not be big competition for Coke, but they *******do give a dent to its beverage market. The chains offer customers healthier alternatives unique choices and customer loyalty rewards that are not easily matched by Coke. Industry data suggests potential customers will continue to be pulled away from basic drink selections in favor of customizable options that carry a greater nutrition
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.
This proven track record for the company can be attributed to a number of factors, the first which is relatively crucial is the company's secret formula for Coca-Cola, which comparably tastes better than what competition has to offer in the market. The company's ability to come up with new products while at the same time reinventing the old products has offered them a competitive edge over their peers. The company boasts of having the world's most diverse and comprehensive distribution networks, this offers them accessibility to billions of people in areas that would prove rather difficult for their peers to distribute their products. The African continent has been cited as an excellent example, it is more often than not to see a distribution outlet for coke on a remote location on the continent
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.
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