Bargaining Power Of Buyer : Coca Cola

The Coca-Cola Company is one of the best known brands in the world because of their commitment and effective marketing strategies. The company understands their target markets and the logistics required to have their products reach their customers across the world. The Coca-Cola Company uses an efficient, extensive network of distributors to reach retailers, and ultimately, their consumers, making their products available when and where customers want them.

Entry Barriers: Both Coca-Cola and Pepsi have strong entry barriers for new competitors, especially in high-end markets like the US. Because of the two companies’ sizes, market maturity, and good market position, many barriers exist for new entrants.

The market share of soft drink industry actually has to maintain by spending and investing huge amount of money on advertisement and marketing. The advertising cost of Coca-Cola was $3.3 billion in 2012. Such a high cost makes it very hard for a new competitor to survive in the market and expand visibility. Moreover, due to the highly recognized brand name of Coca-Cola, the strong loyal customers’ base would not easy to switch to a new product. Therefore, it is nearly impossible for a new comer to compete in the soft drink industry.

They reposition their brand; develop new products, having access to new, fast-growing markets and solution to challengers impacting the business. Coca-Cola believes in “learn”, doing more with less, moving at maximum speed and eliminating waste. This is the power of Coca-Cola Company.

Large retailers, like Wal-Mart, have bargaining power because of the large order quantity, but the bargaining power is lessened because of the end consumer.

In 1886, the Coca Cola Company was developed but it wasn't until 1898 that the fierce competitor Pepsi-Cola entered into the market. These 2 companies are the two major players that dominate the consumer beverage (soft-drink) industry. Coke and Pepsi have since been competing to rein the global market in consumer beverages. The market of drinks in the United States alone is valued at more than thirty million dollars annually. With the growth of these two companies, PepsiCo has developed and acquired additional products outside the scope of just the consumer beverage industry, these products have helped the company to increase their exposure and position in the global market. This has not been the case for the Coca Cola Company; they

Coca-Cola Company (NYSE: KO) is the world 's largest beverage company, refreshing consumers with more than 500 sparkling and still brands. Coca-Cola Enterprises, also based in Atlanta, bottles & distributes the beverages. It employs approximately 146,200 both local and globally (www.cocacolacompany.com). Coca-Cola, is one of the world 's most valuable and recognizable brands, their Company 's portfolio features 17 billion-dollar brands including Diet Coke, Fanta, Sprite, Coca-Cola Zero, vitaminwater, Powerade, Minute Maid, Globally, they are the No. 1 provider of sparkling beverages, ready-to-drink coffees, and juices and juice drinks. Through the world 's largest beverage distribution system, consumers in more than 200 countries enjoy beverages at a rate of 1.9 billion servings a day.

Current product line of coca cola not only now limited in the soft drink it has more than 25 products in its product line. Some of well-known products are describing bellow-

Coca Cola is an international organization which is operating in more than 400 countries. It deals in the beverage industry and is leading the industry for years. Coca Cola is a competing brand, which has made its place in the market competing against several brands. Coca Cola is considered as the leading brand and is ranked as number 1 international brand, according to the ranking of 2011. Coca Cola deal in the beverage industry and provides people with several products. It is a well-known name and people all around the world knows about it. Headquarters of Coca Cola is in Atlanta, and the company has been operating for more than 126 years (Wise and Baumgartner, 1999). In 1886, the company was formed and since then it has been serving millions of people around the globe. Coca Cola is the lead brand of Coca Cola Company, which is the greatest reason of its recognition. Despite many competitors like Pepsi Co, the company has been able to maintain its position in the

The Coca-Cola organization has made exemplary strides mainly to offer a variety of products to its clients even with the competitive nature of the market. Consumers’ choice gets based on the brand aspect in which the organization wins most customers' heart against its rivals. Even though a significant number of people deny cases to having inclination picking between Coca-Cola items or its rivals', many have a strong desire in some way. Many inclines toward Coca-Cola products since the organization has more than hundred years of history and predictable brand image. This picture is engraved in a lot of people subsequently end up purchasing their beverages. It is out rightly conspicuous in the company’s high market share in the field of soft drinks.

Another important weakness is that the company’s products are seen as a major cause of obesity. (Melser, 2013) The beverage sales are affected by various factors including change in trends and preferences. Recently, beverage sales have fallen because of people’s increased preference for the health drinks. Around the world, obesity is a major problem and the Coca Cola products are seen as a major cause of obesity. As people are getting health conscious they are moving towards low calorie healthy drinks. This affects coca cola’s profitability and popularity. However, the brand can overcome this situation by increasing the number of low calorie products in its brand portfolio. It will need to add more healthy choices for its customers in its product portfolio.

Coca-Cola Company is the world’s largest beverage company with almost 500 different types of brands, such as Coca-Cola, Diet Coke, Fanta, Sprite and etc… Coca-Cola is founded is Georgia 1886 by the pharmacist call Dr. John Smith. Dr John Smith caramel color liquid and carried out to the street with a jug. The drink was accepted by the customers and they commented this drink is special. So they sold it through the pharmacy for 5 cent per glass.

“Coca-Cola brands are available to consumers throughout the world. Today they account for 1.7 billion servings of all beverages consumed worldwide daily. Coca-Cola has the edge in the market and because they are first to capitalize on new consumer trends. They continue to focus on continuous operating improvements, and they are ever changing to meet market demands. Pepsi Co satisfies the needs of its customers with the wide variety of products offered. They also have the different type of beverage or snack and its brands can substitute for each other. Coco-Cola and Pepsi Co is known as the top 100 most valuable brands in the world.

Founded 129 years ago in 1886 by Dr. John Styth Pemberton, the Coca-Cola Company is a multinational corporation and producer, retailer, and distributor of nonalcoholic beverage. For over 20 years, it has been one of the biggest brands and is recognized by 94% of people all over the world. There are many factors that contribute to the success and reputation of Coca-Cola, the following essay will discuss briefly about how Coca-Cola dominates the beverage industry in the 21st Century.

Being active in more than 200 countries, with a 120 years of history, this brand is noticed as the biggest in the world and it has come top of an Interbrand poll of all global brands. It is now estimated that Coca-Cola 's brand is worth £39bn.