Coca Cola Business Strategy Paper

With The decline of sales in the CSD highly competitive market and the increased popularity of non CSDs, the two CSD giants Coca Cola and Pepsi are facing challenges to adapt to the new market and maintain their profitability and expansion in the US and worldwide.

Coca-Cola and PepsiCo compete at length with each other among an extensive list of other brands. A key concern for both of these companies in 2011 was their capability to market, produce, and distribute across national boundaries of a single nation. This concern has decreased as both companies were able to push though their limitations and were able to establish manufacturing plants in countries across the globe. (Coca Cola Company, 2011)

Coca-Cola Company has realized significant growth since its establishment to become a global leader in the marketing, manufacturing, and distribution of syrup and soft drinks. Out of the four generic strategies, the company has followed the differentiation strategy to make its products unique in the market. Its interest is to maximize the market share through the development of the most innovative products and the establishment of effective strategies to influence the customer’s decisions. In such a way, the company has integrated various strategies to ensure that desirable results are attained in the market. Its strategic choices align with the differentiation strategy in an attempt to make its products unique and meet diverse market requirements. To reduce its weaknesses, the company should consider exploiting key opportunities in the market including venturing in the packaging of water, promotion of new brands, and launching of healthy products. In particular, the vision and mission statement of Coca-Cola seems to have reconfirmed and changed in this process of company’s strategic analysis.

This case analysis will introduce a brief background of CSD industry and the history of Mountain Dew, give creative advertising strategies, alternatives, and lastly the recommendations and the implementation guidelines.

The ultimate objectives of their business system is to increase volume, expand their share of worldwide non-alcoholic ready to drink beverages sales, maximize their long-term cash flows, and create economic value added by improving economic profit.

Market the lesser selling products: In the large product mix of Coca Cola, there are several products which have not found recognition in the market. Coca Cola needs to focus on these products to increase their market share. Thus, marketing these products will lead to the rise of sale

Coca Cola has settled on numerous pricing choices yet there is doubtlessly their definitive objective to amplify shareholder esteem. Hence, Coca Cola uses lower value point to infiltrate new markets that are particularly delicate to cost. Coca Cola does that to face the opposition and to raise brand mindfulness among the populace. When it is firmly executed, it re positions itself as a premium contrasted with various contenders. The brand has a picture of acquiring impalpable advantage way of life, gathering association, snippet of bliss & satisfaction. However the advertising technique still concentrates on a reasonable pleasure in life (Coca-Cola Company

Coca-Cola has capitalized on the rapidly expanding beverage industry in the United States and has successfully infiltrated the gobal market where 70% of its revenue is reported. This journey into globalization has the company viewed as the largest beverage company in the world. In 2011, Business Insider reported that 3.1% of beverages consumed around the world is a product of Coca-Cola and/or its subsidaries. Currently, Coca-Cola operating segements are North America, Latin America, Europe, Africa, Eurasia, and Asia Pacific. Our team has researched and provided statiscal information to grasp the cultural differences and economic state of each region.

Recently, the Coca-Cola Company laid out its growth plan in its 2020 vision, and it plans to double its system revenue, increase its total servings to three billion per day, and raise its operation margins (Banks, 2016). The company has several reasons relating to its economies of scale and cost reductions that would make it realize its strategy. The Coca-Cola Company owns one of the world 's strongest nonalcoholic beverage brands, and its brand qualifies as a billion-dollar brand in nineteen countries across the world (Foster, 2014). Each of the Coca-Cola’s brands generated about fivehundred million to one billion dollars annually in revenue (Collier, 2014). Currently, the company holds the leadership position in the world 's soda industry with a market share of 41 percent (Banks, 2016). Besides, Coca-Cola enjoys a stable global distribution system in two-hundred countries and owns more vehicles than both FedEx and UPS combined (Elmore, 2016). The company, therefore, has a huge moat with significant economies of scale that none of its competitors can beat or copy.

Coca Cola is the leading manufacturer, marketer and distributor of soft drinks in the world. With domestic market nearing saturation, the potential for growth lies in international markets. In recent years, economic, political and social changes have made the global environment more uncertain, forcing Coke to reevaluate its strategy, structure and culture to maintain a competitive advantage. The following is a dynamic analysis that tracks the evolution of Coke’s strategy from global standardization to a multi-domestic strategy that emphasizes national responsiveness.

In the United States economy, the market experiences the highs and lows of economic patterns. Nature disasters, government intervention and the influences caused by investment trends in the market signal these economic patterns. Many recognize Coca-Cola as an important part of American culture. Coca Cola displays its image on hats, T-Shirts, newspapers, public places, and advertisements. This common recognition proves that Coca-Cola has significant strengths. To enter a market successfully, a company must be aware of the product cycle of items it intends to sell. Today Coca-Cola is the world’s leading manufacturer in the

Coca-Cola and PepsiCo compete at length with each other among an extensive list of other brands. A key concern for both of these companies in 2011 was their capability to market, produce, and distribute across national boundaries of a single nation. This concern has decreased as both companies were able to push though their limitations and were able to establish manufacturing plants in countries across the globe. (Coca Cola Company, 2011)

In the Coca Cola Company, they are applying several components of advancement including advertisement. Coca- Cola has engaged in mass media, in which, has been compromised into sectors of television announcements, outstanding circular media (ex. Magazines, coupons,billboards,etc.), and social media (ex. Twitter, Pintrest, Facebook, Instagram, etc.). Coke’s classical choice of broadcasting its brand has gained productive marketing experiences. Coke’s trademark can be identified all over the globe, and it is an essential to the stamping of it’s representation in the forum.

They have succeeded in focusing on the brand image, customer retention and adding social and ethical benefits to every bottle they sell (Coca-Cola.com, 2014). “In advertising, everything depends on strategy applied on the market, which is adjusted to the positioning” (Moraru, 2010).

When a business creates a new product, they consider the techniques they are going to use carefully, because the techniques will enable them to advertise and market their product to the public. If the techniques are carefully planned, then the product they create is likely to perform well in the market, which will increase the business growth. Coca-Cola puts a lot of effort in marketing their products, and it seems to have paid off as they have obtained very large amount of sales thus leading to high profit margins for the business. Coca-Cola has gradually been increasing the amount of money they spend on advertising each year. Every year, they are trying to improve the reputation of the company by making it recognised more every year, because if they are increasing the amount of money spent on advertising each year, this means more people in the world are getting to know about Coca-Cola’s products. However, they still spend far less than some of its competitors, such as Pepsi which shows that apple budget their expense well, and this will help minimise their losses.