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Coca cola issues and problems
Issues faced by coca cola
Coca cola issues and problems
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Weaknesses
1. Limited range; no diet alternatives
In this time of changing social attitudes towards health, it is a huge weakness to not offer diet alternatives such as Coca-Cola Amatil has done with Sprite Zero and Diet Sprite.
2. Poor product placement means less availability
Frucor does not have deals with many fast food restaurants (frequented by the target market) in the same way Coca-Cola Amatil does (with McDonalds and Burger King) which hinders its product availability and sales potential.
3. No longer New Zealand owned
The “buy New Zealand made” attitude can damage Frucor sales now it is owned by Suntory; patriots are more likely to purchase local alternatives such as Six-Barrel Soda (a Wellington owned and operated company).
4. Branding confusion
As a soft-drink marketed as an energy drink, it is
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Their consumer decisions are strongly influenced by this desire. They tend to be competitive, individualist and ambitious people who are seeking more out of their life. Having other people look up to them and consider them successful is important to the Something Better Segment, so they are very concerned about image - wearing the right clothes, driving the right car, living in the right area etc. The key issue with this segment is that everything is a comparative. The group only has something better when it is compared to something or someone else. As a consequence they tend to be concerned about what other people are doing” (Levine, 1997). This means the Mountain Dew brand has to be better; more environmentally friendly, healthier, and, more convenient. These are This is in close link with the Look at Me’s who are also vastly concerned with image, and an easy segment to expand the target market into for this reason. Mountain Dew can offer value to this
Pepsi needed a strong regional partner. Pepsi had been falling behind to Coke in Mexican market. However, changes in the regulatory environment had cut Coke’...
Abelli, H. (2007). Mountain Man Brewing Company: Bringing the brand to light. (2069) Boston, MA: Harvard Business School Publishing.
The industry is concentrated, with a few major companies owning the majority of brands. The Coke vs Pepsi rivalry itself is very intense. Market growth is not as high as it once was, and the market appears to be fragmenting because of obesity concerns and the need to develop more nutritious offerings
As stated in the case, “the market for energy drinks was growing; between 2010 and 2012, the market for energy drinks had grown by 40%. It was estimated to be $8.5 billion in the United States in 2013 [and] forecasts projected that figure to reach $13.5 billion by 2018” (pg 5). However, much of this market’s revenue -- 85% in fact -- is dominated by five major brands, while the remaining 15% is split between approximately 30 regional and national companies. (pg. 5). With this saturated market, it might not be best for Crescent Pure to enter as a completely new product to the industry, as there is the possibility that it will be squeezed out of the profit shares by more established brands -- especially if it is not properly secure in its identity. In addition, while the market for energy drinks appeared to be growing at an exponential rate compared to the market for sports drinks -- which increased only 9% in five years and would be at approximately 60% of the rate for energy drinks in 2017 (pg 6) -- the consumers appeared to be wary of partaking in the market for several reasons, which would potentially harm the reach of Crescent Pure. These concerns included rising news reports discussing the safety of energy drinks (pg. 5). Taking into consideration the data provided in the case that concerns reasonings of why consumers choose specific drinks over others, there
Beverage giant Coca-Cola wants to get a little love for its iconic cola drink from the upscale consumer set, so its decided to create and test-market a sleek set of contoured aluminum bottles for its flagship Coke brand. Yes, we said aluminum bottles.
Frito-Lay controlled 40% of the USA-market assuring high volume production by increasing internal coordination with PepsiCo developing the Power of One strategy consisting in mixing snacks with beverages and sauces produced by Peps...
Brand Image / Loyalty: Coke and Pepsi have a long history of heavy advertising and this has earned them huge amount of...
... a cola option that is “guilt free”. They also push the fact that it tastes the same as regular Pepsi telling them they don’t have to sacrifice taste for lower calories like most diet products. The target women is in her 20’s and 30’s single, dating age so she watches her weight. Diet Pepsi is a great option for her at the bar as well. She is middle class to upper middle class in a city, and she has no children. She dates a lot and is outgoing, she drinks and eats diet products because like all women her age she wants to look good and dreads going up a pants size.
1975 heralded the Pepsi Challenge', a landmark marketing strategy, which convinced millions of consumers that the taste of Pepsi was superior to Coke. Simultaneously, Pepsi Light, with a distinctive lemon taste, was introduced as an alternative to traditional diet colas. In 1983 Coke launched aspartame/saccharin blend Diet Coke. In response in 1989 Pepsi-Cola introduced an exciting new flavor, Wild Cherry Pepsi. Thus Diet Pepsi's 'The Other Challenge' campaign was based around a 54-46% lead over Diet Coke in independently researched taste tests in Australia. It was only in 1996 that Pepsi unveiled a revolutionary 'blue' look worldwide 'to transform the image and attitude' of one of the world's best-known brands. 'Pepsi Blue represents a quantum leap into the future and redefines how the Cola Wars will be fought and won in the 21st Century.'
Useem, M. (2008). New Ideas for This Pepsi Generation. (cover story). U.S. News & World Report, 145(12), 49.
Bibliography Associated Press. "Coca-Cola Recalls More Tainted Drinks." Boston Globe [CD-ROM], 3 July 1999, National/Foreign Section, p. A4. Available: BOSTON GLOBE File: 631. Coca-Cola Enterprises, Inc. "Facts 1999." Atlanta: Coca-Cola Enterprises, Inc., 1999. "Coca-Cola's Global Dominance." https://www.wiley.com:8082/schermerhorn/ oc/page01.htm (13 Oct. 1999). "Coke Insider." Investors Business Daily. Mahoney, Ed. Distribution Manager for Coca-Cola Enterprises. Group Interview. 4 November 1999. Pendergrast, Mark. For God, Country, and Coca-Cola. New York, N.Y.: Charles Scribner's Son Publishing Co., 1993. The Coca-Cola Company. "Facts, Figures, and Features." Atlanta: The Coca-Cola Company, 1996. "The Coca-Cola Company Overview." Hoover's Company Profiles. wysiwyg:// bodyframe.14/http://ehostweb14.epnet.com/fulltext.asp (23 Sept. 1999). "The Coca-Cola Company." Profiles. http://www.coca-colacompany.com/ world/world.html (10 Nov. 1999). The Coca-Cola Company. "The Chronicle of Coca-Cola: Since 1886." Atlanta: The Coca-Cola Company, 1950.
in this segment are often brand conscious and enjoy the latest fads and trends. They...
This competitive advantage has been rendered sustainable as other players have found it difficult to catch up with the company's competitive strategy. In spite of this clear advantage, it was noted that the company faces some challenges being the world leader in soft drink distribution. The canning and bottling of the product which is done in many countries have now fallen into the hands of independent companies, thus it becomes hard for a given company to control the quality of the packaging
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 10 major products of the soft drink industry are produced by Pepsi and Coca-Cola in America. According, to a news post on NBC from research from 2010, of no surprise number one is Coca-Cola. Most Americans prefer Coke products over Pepsi. Number two is Diet Coke. Many people look to drink Diet Coke because it is the “healthier” version of the loved Coca-Cola. Number three is Pepsi. Next is also by PepsiCo which is Mountain Dew at number four. Dr.Pepper is number five and this is very surprising because I don’t see many people drinking it as much as all the other drinks. Sprite is number six in the ten major products. Number seven is Diet Pepsi with Diet Mountain Dew being number eight. I don’t remember seeing many stores selling Diet Mountain