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The background and situation of Coca - Cola
Coca cola company history and methodology
Background of coca cola company
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Coca-Cola Co. v. Koke Co. of America, 254 U.S. 143 (1920)
Facts: In 1886, John Pemberton invented a caramel-colored soft drink. It was name Coca-Cola after the main two ingredients kola nuts and coca leaves. The problem came when they called the beverage Coke. Coca- Cola Company sued The Koke Company from using the word “Koke” for any of their products. Coca- Cola Company was the plaintiff and The Koke Company was the defendant in this case. Coca- Cola states that the Koke Company is in violation of trademark infringement and it is unfairly making and selling the beverage that use a trademark of Coke. The defendant The Koke Company propose to manufacture and sell as a bottled product soft drink, which the defendant has designated as "Koke-Up"
The Porter’s model of competitive advantage of nations is based on four key elements including factor endowments, demand conditions, related and supporting industries and firm strategy, structure and rivalry. This makes it suitable in understanding the competition existing in the soft drinks industry in the Asian markets. The factor conditions identify the natural resources, climate, location, and demographics. Coca cola and Pepsi enjoy the growing population in the Asian markets (Yoffie, 2002). A higher population guarantees the two companies adequate revenues. Other factors include communication infrastructure and availability of skilled workers. Most of the Asian countries are embracing new technologies that grow much knowledge of the diverse beverage drinks. Secondly, the demand conditions play a significant role in enhancing competitiveness for the firms. Both Coca cola and Pepsi are an
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.
CASE 1-3: Coke and Pepsi Learn To Compete in India The political environment in India proved critical in that their government was unfavorable to foreign investors. They prohibited the import of soft drinks since they felt it could be gotten anywhere. They also prohibited the foreign brand name and wanted the name Lehar Pepsi and Coca-Cola India, an indigenous name. These effects couldn’t have be anticipated prior to entering the market because the trade policies, rules and regulations of India were difficult and unpredictable.
Coca-Cola was formulated by John S.Pemberton, originally as a cocawine called Pemberton's French Wine Coca, and originally sold as a patent medicine for five cents a glass at soda fountains, which were popular in America due to a contemporary view that soda water was good for your health. Coca-Cola is the trademarked name, registered in 1893, for a popular soft drink sold in stores, restaurants and vending machines around the world.
Companies always operate in a certain environment; the formulation and implementation of business strategy are also restricted by the particular environmental factors. In other words, environment decides the enterprises’ strategy, decisions making, organizational structure and management styles. The environmental awareness has become the starting point of the environment analysis. In general, the corporate strategy has two environment factors to consider, internal and external environments. Furthermore, because the influence degrees are different, the outside environments divide into the macro environment and industry environment.
Coca Cola has been around for over a century. The refreshing beverage has become a staple in American culture with its very convincing ads. From its famous hilltop commercial by sending positive message of diversity to being a helping hand with World War 2 by adding political views on their ads to convince the public to help out. During the country’s economic hit from the great depression, their ads still convinced the viewers to buy their products. The company even created a character that will forever become a part of American culture. Aside from creating a piece of Americana, Coca Cola ads are an influence to the younger audience by incorporating celebrities and famous artists that are popular to draw in the viewer. Also by creating ads
with lemon, lime, or coffee. In 2013, Coke products could be found in over 200 countries worldwide, t has a workforce of 55,000 employees with consumers downing more than 1.8 billion company beverage servings each day.(Agarwal, about pepsi and cola in India market, 2013) Controversy in India In 2003 The 2 international brands Pepsi and Coca Cola faced a new challenge when the local governments placed a ban on their products following a report by an environmental group claiming the sodas contained high levels of pesticide. On August 5, 2003, The Centre for Science and the Environment CSE issued a news release which stated that “The soft drinks brands sold contain a deadly cocktail of pesticides residue. The CSE, a New Delhi based research and advocacy group that aims for sustainable growth, based its accusations on tests conducted by the Pollution Monitoring Laboratory in April, 2003.
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
Holistic marketing also incorporates social responsibility marketing and understanding broader concerns and the ethical, environmental, legal, and social context of marketing activities and programs. The business will tend to adopt ethical behavior in its marketing strategy and will ensure that proper and true information will be provided to the concerned parties(Homburg, Stierl & Bornemann 2013).
There are a variety of beverages available to us today with a wide range of differences, some are flavored, carbonated, low calorie, energy boosters, and just plain water. When it comes down to carbonated drinks there are two major rivalry soda companies dominating the market. Coca Cola and Pepsi are two well know cola distributors with very credible history, but the question still remains one is America’s favorite? With the ongoing competition between Coca-Cola and Pepsi, each company is incorporating new strategies for marketing and advertising there brands. When comparing an advertisement from each of the companies, we will review how they appeal to consumers.
Coca-Cola Company and PepsiCo are two of the largest and most profitable corporations of the United States. They both invest tens-of millions of dollars per year in worldwide marketing campaigns. If you go to each of their websites you can see they are both capitalized in unlike products. Both of these companies are trying to target the same market but through their websites they have a very distinctive marketing approach.
In 2011 PepsiCo announced the launch of their Social Vending System. This system featured a full touch interactive screen. A consumer can select a beverage and enter the reciepent's name, mobile number, and personalized message and gift it with a video. PepsiCo uses technology to their advantage for global implementation.The company uses media sites in multiple was as advertisement and marketing tools.
We can define competitive advantage as simply what a given company excels best at. This could be the distinguishing factor as to why consumers purchase from your company and not the competition. This could also be understood from the perspective of quality that a business can create for the consumer.
The case study "Cola Wars Continue: Coke and Pepsi in the Twenty-First Century" focuses on describing Coke and Pepsi within the CSD industry by providing detailed statements about the companies’ accounts and strategies to increase their market share. Furthermore, the case also focuses on the Coke vs. Pepsi goods which target similar groups of costumers, and how these companies have had and still have great reputation and continue to take risks due to their high capital. This analysis of the Cola Wars Continue case study will focus mainly on the profitability of the industry by carefully considering and analyzing the below questions: