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Importance of communication in crisis
Importance of communication in crisis
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Cocacola crisis: Communicating with the communities
Introduction
The cocacola crisis was triggered by a press release by CSE ( center for science and environment ), “Hard Truths about Soft Drinks,” on August 5, 2003. According to CSE “12 major cold drink brands sold in and around Delhi contain a deadly cocktail of pesticide residues”. The pesticides namely lindane, DDT, malathion and chlorpyrifos were found in the cold drinks. These pesticides were believed to have dire consequences on health causing cancer, damage to the nervous and reproductive systems, birth defects, and severe disruption of the immune system.
Due to these finding, the sales of coke products fell by 30-40% within just two weeks. The India government decided to ban Coke
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He joined Coke in 1997 as Vice President, Marketing and played a major role in company’s success. He played a key role in developing a brand relevant for Indian consumer and tap the unexplored rural market of India. Following his marketing responsibilities, Gupta served as Head of Operations for bottling operations and then later as Deputy President. He was considered as the driving force behind recent successful launch of packaged drinking water and powder drinks. Gupta and his marketing prudence were crucial for the continued growth of the …show more content…
They should have come up with new ways in order to ensure that such situation don’t happen in future. The crisis would not have escalated in such situation. They should have come out with public announcement regarding a breach in the quality process sorry and will be doing its own testing to just verify if this information was correct. After results were found, I would then release it to the public and fix the problem. As the company was fixing the toxic problem release monthly reports on how the company is doing. This would have allowed customers to remain faithful towards Coke and maintain a belief that the company cares about the consumers and is doing everything possible to safeguard their
- this was considered to be a very helpful way to spread the company trade name and mark (Coca Cola) more widely around the world. That will lead to open new markets for them to sell their products, so that will reinforce their reputation in the international market.
People can afford to buy more soft drinks under current economic situation. Recessions do not seem to affect sales of CSD. Although produced by main market players soft carbonated drinks cost more than similar products of local and private label manufacturers, consumers are willing to pay an extra price for the name, particular taste, and image. Fierce competition in CSD industry forces Coca-Cola and PepsiCo to expand into new and emerging markets which present high potential for the company’s development. However, some foreign markets proved to be highly competitive. Coca-Cola Company’s operation in China faced antitrust regulations, advertising restrictions, and foreign exchange control.
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.
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,
The major ethical issue face by Coca Cola in recent year was concerning sale of hazardous product which affected the health of few consumers including school children. This incident took place in Belgium where Coca Cola beverages found themselves in middle of an accusation of selling poorly processed batch of carbonated drinks which made initially 10 people ill and later the number swelled to 100 which also included school children. This was a contamination scare incident that took place in June 1999. This damaged Coca Cola customer base harming their confidence in the product as it was relating to the production and sale of hazardous product. Two main problems that were identified by the company relating to their production and distribution were ‘‘Off-quality’’ carbon dioxide that affected the taste and odor of some bottled drinks, and an offensive unusual odor on the outside of some canned drinks which were later identified as sulphur odor. This odor has an increasing intensity when the cans were placed in vending machines to sell.
PepsiCo attempted to enter the Indian market through a classic strategy, by bringing jobs to the region. During the 1980’s, the per capita consumption of soft drinks in India was only three bottles per year (Saylor, 2011). In May 1985, PepsiCo joined forces with one of the leading business strategists in India, the R.P. Goenka group, to begin operations. The organization planned to import the cola concentrate and sell drinks under the Pepsi label. To make this opportunity attractive to the Indian government, PepsiCo offered to help India export juice concentrate throughout its country. The Indian government rejected this offer from PepsiCo on the grounds that they didn’t like Pepsi importing their cola concentrate, as well as the use of the foreign brand. PepsiCo dropped its assoc...
For the first time in ten years Coca-Cola did not fall into the top ten spots of fortune’s yearly “America’s Most Admired Companies” the company who had leadership problems and also not performing very well in our economy at the time. It did not look good for a company that was used to being on top of the charts. The year 2000 was seen to be a tough and different experience for coke, but some would say it was expected with Coca-Cola doing business unethically and having discrimination allegations. The reasons for channel stuffing was Coke had gained their Global brand recognition by being a brand that was present in so many different countries. That is how Coke was keeping their profits so huge by expanding operations and when all these things started happening to Coke is the year 2000 maybe their operation stopped expanding or slowed dramatically in other countries. Coke started shipping more products to them hoping they would sell more than they were already selling and help Coca-Cola meet goals within the company short term. This leads to distributors returning cases of Coca-Cola products they did not sell or went out of date. This in turn leads to costing Coke money in the long term due to man hours caused by
Jeseph University, S. S. (2006). Evidence of The Coca Cola Company’s Human Rights Abuses and Environmental Violations brought to. Saint Joseph’s University Students for Workers’ Rights, 1, 1-78. Retrieved April 22, 2014, from Evidence of The Coca Cola Company’s Human Rights Abuses and Environmental Violations brought to
Furthermore, the issue with the pesticides in the product, which was tested by the Indian government gave proof of the pesticides in Coca-Cola’s product. Coca-Cola was shut down by the local government but the first video stated, “They used their political power to reopen the plant”. This statement is harsh but if you go by the perception of the people, Coca-Cola does donate to the World Environment Foundation. 2. Do you believe that the Indian government representatives were fully aware of the extent of Coca-Cola's need for water BEFORE they approved Coca-Cola's request to locate there?
Coke Facts The Coca Cola Company Coca Cola India: Key Facts - Coca Cola Business, website: http://www.cokefacts.com/facts/facts_in_keyfacts.shtml
Negative publicity: if you watch the news you would know that obesity is a major problem affecting people now a days carbonated beverages are one of the major reasons for fat intake and coca cola is the largest manufacturer of carbonated beverages. The inference is that consumption of beverages in developed countries might go down as people will prefer a healthy alternative. Harmful ingredients to produce its drinks. Childhood obesity **. Coke has been criticized for aggressive marketing to children and suspected unfavorable health effects. Studies have been conducted coke harmful if consumed excessively.
Coca - Cola : Claims, Values and Polices Coca-Cola is a well-known and cherished brand name. When people think of this name, memories tend to overflow in their heads. Why do you need to be a member? Because, not only does Coke taste great and refresh your own personal memories, it also fills you with memories of the Coca-Cola like "Always Coca-Cola", the antics of the Coke polar bears, and all of the different ads that have represented Coke over the years. Just about every ad you see, as a consumer, has tons of hidden meanings.
The Coca-Cola Company is an American multinational company, which is the world’s leader of the non-alcoholic beverage markets, operating in the beverage industry as manufacturer, retailler, and marketer of nonalcoholic beverage concentrates and syrups (Ravi). The company is based in Atlanta, Georgia. Since 2015, the current CEO is Muhtar Kent. The product was invented by a pharmacian, John S. Pemberton in 1886. In 1889, Asa G. Candler begins to acquire personal control of the Coca-cola formula and patents from John Pemberton and his Partner. He founded the Coca-Cola company in 1892 in Atlanta, Georgia.
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.
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.