Part I. Strategic Auditing Company Background The iconic brand of Coca-Cola dates back to the late 1800’s when a pharmacist from Atlanta created a distinctive soft drink that would take the world by storm. Initially charging five cents per glass out of a soda fountain machine at local convenience stores, Coca-Cola started to grow and expand outside of Atlanta. Once they recognized success as a fountain drink, Coca-Cola then started the production of bottling the beverage. Coca-Cola beverage consumption has since grown and is now around $1.9 billion a day with presence in over 200 differnet countries (Coca-Cola History│World of Coca-Cola, n.d.). Having such global success has lead to the ability of Coca-Cola to acquire other …show more content…
In first world countries like the United States of America, where they originated, Coca-Cola has little need to worry about the risk of political instability. It is when they enter into third world emerging markets the Coca-Cola opens themselves up to instability and corruption risks. The risk faced in these less developed countries could result in a loss of investment if problems were to arise. Economic Factors: Being a dominant brand worldwide, it means that Coca-Cola products are being bought and sold using many different types of currency. Because of this, Coca-Cola is face with foreign exchange risk. Recently, many economies in Europe have been struggling and currencies have become unstable. This is an economic risk faced by Coca-Cola due to their global expansion. Social Factor: One of the major external factors that influence the success and decisions made by Coca-Cola is the sociocultural trend towards healthy alternatives. Because the original Coca-Cola was high in sugar and caffeine, which is unappealing to the current health trend, Coca-Cola needed to adjust products or their success would be a thing of the past. Environmental: Just like that change to a healthier life style, the current societal norms take into consideration the environmental impact of large corporations. Coca-Cola uses a large quantity of water in the production process and has been criticized by their environmental stakeholders. This has caused Coca-Cola to find
The Coca-Cola Company is America’s number one soda brand and has been consumer’s drink of choice for decades. Coca-Cola does not sell just for its great taste, but also for its effective marketing strategies and sustainability. According
cultural factors can influence the way a product is viewed by the consumer. If the government were to release a report regarding one of PepsiCo’s products then the company might see a decline in sales. Environmental factors include issues regarding the environment and what the company does to protect it. PepsiCo believes that water is a basic human right and should be readily available to any consumer. Overall PepsiCo does a great job in assessing all of the general environment factors in order to sustain a positive view in the consumer’s eyes.
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
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
One of the external factors that have an effect on Coca-Cola is the newer technology. People know that Coca-Cola first provide their product in a form of a fountain drink. It has a fixed ingredient ready for people to get some ice and get Coke from their fountain. But with the advances in the technology today, Coke has invented a new Freestyle soda machine that allows people to create a custom beverage for themselves. Their new machine benefits Coca-Cola because it can shake up the market. It gets people to become curious and want to try it out the new machine. This is an opportunity that could boost the sales for coke and their other fountain drink products.
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
The origin of Coca-Cola was based on a lot of trial and error. It had first started off as soda-water and functioned medicinally. It apparently had the ability to prevent/cure putrid fevers dysentery. As the drink evolved so did the function as well. The addition of coca leaves and kola nuts made the drink more invigorating due to its caffeine. Now its importance and second function came in July 1. 1886. That date marks the start of Prohibition, the drink served as an alternative to alcoholic drinks. Fast forward to 1938 after the changes in its medicinal function, distribution, ingredients, and more importantly its popularity. Coca-Cola’s importance was as a “sublimated essence of all America stands for…” this statement by veteran journalist William Allen White was said based on the fact that Coca-Cola was drank by men and women of all ages and classes, that was the drink’s
The company known as Coca-Cola today was started in September of 1919, but the first Coke brand was served as early as 1886. Since that time it has grown to be one of the most globally recognized brand names with a stock value of $167 billion. Coke’s plan has always been developed with the future in mind. Right away the company realized that it was more profitable to manufacture the concentrate used to make carbonated drinks than to bottle it. From that point on they saw the entire world, not simply the originating country, as their desired market. It seems only practical that the company should pursue this agenda until conquered then focus the effort on expanding into different product lines. This logical
The history of Coca Cola began in 1886 when Dr. John S Pemberton, an Atlanta pharmacist created a tasty soft drink which could sell at soda fountains. Since then, Coca Cola grew to be a global brand and touched great heights. Today, it sells across 200 countries and is just as popular across all the markets and nations. The company today, owns or licenses and markets more than 500 non alcoholic beverage brands. The brand has only few major competitors in the global market. The daily servings of coca cola are estimated to be at 1.9 billion globally. (Coca-Colahellenic, n.d.) This is just another proof of the popularity of the brand which has a very large and diversified
Coca-Cola history started in 1886 when the interest of an Atlanta drug specialist, Dr. John S. Pemberton, drove him to make a unique tasting soda pop that could be sold at pop wellsprings. He made an enhanced syrup, took it to his neighborhood drug store, where it was blended with carbonated water and regarded "fantastic" by the individuals who inspected it. Dr. Pemberton 's accomplice and clerk, Frank M. Robinson, is credited with naming the refreshment "Coca-Cola" and in addition planning the trademarked, unique script, still utilized today. Alternately very nearly 70 years, the main refreshment created and sold by The Coca-Cola Company was the lead Coca-Cola® designed in Atlanta in 1886. It wasn 't until 1955 that Coca-Cola drink offerings began to grow when a bottler in Italy began offering Fanta® Orange. Starting there on, the Company started including a more extensive assortment of refreshment choices and segment sizes for buyers. The Coca-Cola Company trusts in offering an arrangement of drinks for each way of life, life stage and life event. Today, in excess of 500 drink brands are sold in more than 200 nations. This adds up to 3,500+ drinks in various classes, for example, consistent, low- and no-calorie shining refreshments; foods grown from the ground squeezes and products of the soil beverages; filtered water; games and caffeinated beverages and prepared to-drink teas and espresso. ("The Human Resource Issues Faced By Coca Cola")
The Coca Cola Company is a multinational company with more than 140,000 employees, the company is in beverage business and its flagship product Coca Cola is considered one of the best soft drink. Coca Cola soft drink is the real revenue generator of the Coca Cola Company. The company was found in 1892 and by 2010 it was reported that the company has the serving of 1.7 billion per day so the company has only grown since its inception. The company is serving its product in more than 200 countries, and the Coca Cola Company owns more than 500 brands, this shows that the graphs of the company is moving upwards and the Coca Cola Company is growing at an immense rate.
Coca- Cola Company is US multinational beverage corporation, with 129 years of history. Coca Cola was recognized as 4th world’s most valuable brands and most valuable brand in beverage industry in 2014 according to Forbes magazine. Coca-Cola’s international market strategies are the classic example of successful Global Marketing Mix, which uses both standardization-adaptation strategic combinations to achieve bigger market shares all over the world. However in a big game there are always big players, and Coca Cola’s most fierce rivalry is Pepsi. Both of them control around 60% of global nonalcoholic beverages industry as well as they are present in more that 200 countries around the world. Coca Cola as long-term leader in the beverage market owns huge portfolio of 500 brands. So
Coca-Cola suffered a major crisis in June 1999 when children in Belgium became sick after consuming Coke products. The Coca-Cola Company was unable to handle this crisis adequately and because they were unprepared to handle this issue they lost consumer trust and much of the European market. Their slow response time gave people little hope that they were in control and taking care of the problem. The Belgium government had to step in and recall all Coke products, which eventually led to the Netherlands and Luxembourg following suit. If Coca-Cola would have had an effective crisis
The Coca cola company, found in 1886, was first created by an Atlanta pharmacist Dr. John S. Pemberton who started his coca cola selling with syrup. In 1899, the Coca-Cola Company began to produce bottling in the United States and bottling business for Coca-Cola develop across the ocean in 1906. Based on Interbrand’s study of best global brand in 2011, Coca-Cola was the world’s most valuable brand.(1) For now though, Coca-Cola is the world’s greatest brand and the biggest-selling in soft drink in history as well.
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.