Coca Cola's Annual Sales

The impact sugary sodas have on our bodies is known by everybody. But this didn’t stop people consume large quantities of sugary beverages. This is what the change observed in the consumption of such drinks appears to be curious. In accordance with the report, the average American has cut down on soda consumption by 25 percent in the last 25 years.

This beverage is consumed by 1.7 billion people every day. In terms of “people”, the idea of best friends, moms and dads, business partners, spouses, and even the occasional stranger on the street are granted the opportunity to savor the taste of Coke. Varieties of vibrant food and the company from loved ones appeal to

Coca-Cola is shifting its product strategy to develop healthy beverages. “Minnick’s ambitions, if they hold, would utterly redefine Coca-Cola’s image as a purveyor of sugar-laden junk that you should’ve give your kids” (Carvens & Piercy, 2009). Entering a healthy-beverage market segment can potentially improve as well as expand Coca-Cola image. The new market segment will reel in even more consumers for the company, only

The political situation of a country affects its economic settings and economic environment affect the business performances. Coca-Cola sales are impacted by a set of economic factors that beyond are beyond the company’s control. These factors include the level of economic growth in the country and in the industry, tax rates and currency exchange rates, interest rates, labor costs and others. The global economic and financial crisis of 2007 – 2009 is a relevant example of an economic factor that greatly impacted the majority of businesses around the globe. However, the crisis has impacted Coca-Cola to a lesser extent compared to many other businesses. Its’ operating margin remained at industry-front 22% despite the crisis, although dividend yield was reduced to 2.6 % Quarts. (Timmons, H. (2014). Economic factors relate to goods, services, and money. Despite directly affecting businesses, these variables refer to financial state of the economy on a greater level –whether it be local or global, inflation increases cost of production. Consequently, Coca-Cola had to face the uncontrollable problem of increasing their pricing. With this increase they risk losing customers who cannot afford their products because it is a desired product not a necessity. Due to inflation in 11 years the price of an identical bottle of Coca Cola has doubled in price. Alternatively, Coca Cola could be forced to lower their prices to facilitate an increase in consumption

Over the last century, Coke and Pepsi have been waging war over the $74 billion carbonated soft drink industry in the United States. The degree of this competition has changed over the last decade as carbonated soft drink (CSD) consumption in America decreased to 46 gallons per year per person. To investigate these changes and evaluate the reasons why the industry has been so successful over the years, it is important to do an industry analysis looking at the different forces that affect both Coke and Pepsi as well as the changes in these forces and their effects on the industry competition.

In an industry dominated by two heavyweight contenders, Coke and Pepsi, in fact, between 1996 and 2004 per capita consumption of carbonated soft drinks (CSD) remained between 52 to 54 gallons per year. Consumption grew by an average of 3% per year over the next three decades. Fueling this growth were the increasing availability of CSD, the introduction of diet and flavored varieties, and brand extensions. There is couple of reasons why the industry is so profitable such as market share, availability and diversity and brand name and world class marketing.

Situation Analysis: Soft drinks are a multibillion dollar global commodity in the 21st century Coke alone produces over 400 brands in 250 countries, serving an average of 1.5 billion servings of some type of beverage per day (Warner, 2005). However, in the last decade or so, soft drink sales

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.

Imagine you’re at a graduation party. Everyone is talking and having a good time around you. You suddenly realize that you’re thirsty. So you make your way to the coolers and in it is an ice cold refreshing cola. What did you think of? Pepsi? Coke? These two cola giants have gone from pharmacy sold local drinks into what we know today. The overly sugary, high fructose corn syrup loaded, and acidic drinks have become the frontrunners in a highly fought over competition to be the number one soft drink in America, and through through psychological tactics in their ads has convinced people into thinking that it is okay to only drink their .

The Coca-Cola Company leads the world in manufacturing, marketing and distributing soft drinks. The company is styled as unstoppable due to its universal appeal ranging from Minute Maid orange juice, Dasani purified water to PowerAde sports drinks and Fuze vitamin-enhanced water. Indeed, despite the fact that Coca-Cola has ruled the drink market for the twenty years, however, "the soft-drink giant is struggling as per-capita consumption of soda has hit multi-decade lows."

The producers of the soft drinks continue to face difficulty in the marketplace partly due to factors such as economic recession, the change consumer preference, cost of raw material, public policies over the past decade (Graph 2). Consumer are more health concerned as critics have pointed that the soda industry is a contributing factor to the US obesity epidemic (Reuters) . Thus, the consumer are switching to healthier substitutes such as flavored water and sports drinks. In the United State the CSD Industry which consists three segments regular carbonated soft drinks, diet

Coca-Cola is the number one non-alcoholic beverage in the world and is also the golden standard in the beverage industry. Over the pass decade carbonated beverage sales has decrease which has lead Coca-Cola to seek for new opportunity and investor. Contribution of US soda sales in Coca-Cola’s revenue could decline to less than 15% by 2020. By the end of 2017 Coca-Cola is looking to refranchise two-thirds of its bottling territories in North America. The outcome of Coca-Cola refranchise two-third of its bottling territories will reduce the revenue to Coca-Cola sales of its products, however the operating margin will increase. Also, this could reduce the percentage contribution by the U.S to Coca-Cola overall revenue.

Over 100 years, intense rivalry between the two- Coke and Pepsi has totally shaped the soft drink industry of the world (combined they are 73% of the market share). The most battles of the cola wars were fought over the industry in the USA, where the consumption by an average American is 53 gallons of carbonated soft drinks per year. In a competitive struggle, from 1975 to 1995 both had achieved average annual growth of around 10% because of increase in soft drink consumption consistently in US and worldwide. Then this cozy situation was threatened in the late 1990s, when the consumption dropped for two consecutive years and worldwide shipments slowed for both Coke and Pepsi.

Coca-Cola has been around for generations with the same iconic taste, logo and symbolism. Its brand has represented family and the memories of good times, celebrations and comfort of being with those we love. Unfortunately, the company has not made good marketing decisions in the recent past and has lost relevancy. The purpose of this essay is to assess the conditions that created Coca-Colas marketing problems, evaluate the future of healthy beverages and non-carb drink brand extensions, and provide recommendations to the management.

Coca-Cola spends huge amounts of fund on marketing every year to remain its competitiveness. However, recently, Coca-Cola had a weak global growth. The sales volume of soda is not so satisfactory. Coke is claimed to have too many calories and sugar, thus being bad to health, as a result of which, consumers turn their attention to other drinks (Kell n. pag.).