MK0272 Essay

PepsiCo has the potential to encourage consumers into drinking water and eating healthier snacks that they promote. Bottled water is rising and it is a healthy substitute to sugared drinks. Restaurants, clubs and venues are using their beverage to make special drinks. This is where alcohol industries gains more profit to their company. However, with the ability to adjust customer’s demands with new and appealing products it can dominate to success.

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).

By connecting to their consumers constantly and effectively through excellent advertising, Coca-Cola was able to provide brand loyalty. With diversification within the company’s products, the brand was able to stay relevant throughout time.

Coca-Cola is the result of a patent medicine formulated in a small southern pharmacy over a hundred years ago. It has grown into a multibillion dollar international company. It also owns one of the most valuable brands in the world. Their Coca-Cola banner has won the world’s top brand 13 times on brand c-consulting firm Interbrand’s annual list (Fraser, 2012). In addition to its main product, Coke, the company owns over 3500 beverages. One of its core competencies is brand building. They have built their brand to have respectability and dependability. Their brand and logo are recognized all around the globe. It has actually become a new known on almost all households worldwide (RNWILKIN, 2009).

Though Coca-cola has "won the war" over PepsiCo. Still some strategies could be taken to enhance the company forward and allow it to sustain its privileged status. To start, it could pay more attention to their numbers by offering further reduction on wholesale prices as well as offer more free products. On the other hand, Coca-cola could expand with other additional products. As trade is expanding on global base

The soft drink industry is facing new challenges. The carbonated drink market has lost pace but there are several opportunities to overcome the situation.

Broadened product lines by adding carbonated drinks, iced teas, diet juices ,seltzers and isotonic sports drink

Coca Cola has been part of popular culture for over 100 years and has been called a “Vision Brand“. Coca Colas “2020” vision is the reason why they continue to be the beverage market goliath. Their 15 year vision shows their commitment to profit growth, innovation, partnerships, the worldwide economy, their shareholders and their employees. Coca Cola’s marketing and communication is deliberate and connects with its audience in a way that makes it stand out from its competitors. Coke’s brand is respected and well known all over the world. For Coke, packaging has been a defining aspect of its essence and a key part of its engagement strategy. The uniquely shaped glass Coca Cola bottle and eye catching red and white colors will forever be the

To be the customer’s first choice, Coca-Cola not only has to worry about their taste. Coca-Cola must focus on availability, affordability, acceptability, activation, and attitude. Being a great company with a great product goes far beyond just the product. I think that the most important attributes that Coca-Cola focuses on outside of the product itself would be availability, affordability, and attitude. Customers today want something easy to access, they want to work smarter, not harder. If prices are unreasonable, that is an automatic turn

The change in the consumers' taste is another key trend in the industry. Many substitutes to carbonated soft drinks gained more popularity among consumers. Exhibit 5 shows an increase in the consumption of bottled water from 11.8 in 1998 to 13.2 gallons/capita in 2000, and that of juices from 10 to 10.4 gallons/capita at the expense of

Also, Coca-Cola has very strong rivalries. The main one is of course PepsiCo, which is very famous all over the world and has a great variety of products. Thus, Coca-cola can’t afford its image to be damaged because if that happens PepsiCo will become the leader of the industry very fast. Right now Coca-Cola needs a new Strategic Communication Plan to try to overcome the issues.

There has been a recent shift in American product demands. As health concerns such as obesity and diabetes have become more apparent in American society, consumers have been demanding healthier options. This trend has led to a rise in sales for water and wellness beverages and a decline in sales of sugary beverages such as soda. Last year, for the first time in history, bottled water sales surpassed pop sales. Beverage companies in response are expanding and changing their options.

Consumers are able to choose from a large variety of soft drinks despite the fact there is a limited number of manufactures. When you consider the industry at a glance it is a very competitive market for the four United State manufactures, and the largest private label manufacture in the world (Chrystalleni Stivaros, 2016). Looking specifically at the Coca-Cola Company it will become clear how their strengths and them capitalizing on various opportunities, makes them the number one soda company in the world. This type of behavior is due to Coke’s strategies and being able to minimize their weaknesses and threats as they deliver 500 different flavors to over 200 countries daily (Chrystalleni Stivaros, 2016). Additionally,

Foremost, Coca-Cola’s first strength is being the best global brand in the world in terms of value. According to Interbrand, the company is the most valued brand, $77,839 billion, in the world. Moreover, they have the world’s largest market share in beverage with around 40%. Their positioning in the market makes it easier to have bargaining power over their suppliers. Coca Cola is the largest beverage producer in the world

The global beverages industry is currently a low-growth market, with an expected compound annual growth rate of 5.7% between 2017 and 2025 (Grand View Research 2017). Additionally, the industry is quite saturated with firms that offer increasingly differentiated products. However, due to this low growth rate, companies have been engaging in price competition to gain competitive advantage and increase their market share. Nevertheless, Coca Cola is a dominant force in this market, controlling 40% of the industry, and is therefore at a low risk of losing its position.