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Coca-Cola Company Strategies Case Study


Introduction

Coca cola history started back in time when a remarkable man by the name of John Pemberton, an Atlanta pharmacist, was inspired by simple curiosity when one afternoon he stirred up a fragrant, caramel-colored liquid and, when it was done, he carried a few doors down to Jacobs’ Pharmacy.

Here the mixture was combined with carbonate water and sampled by customers who all agreed that this knew drink that was something special. So Jacobs’ Pharmacy put it on sale for five cents a glass. Pemberton’s bookkeeper, Frank Robinson, named the mixture Coca-Cola, and wrote it out to the district between, 1886-1892 (Steinmetz, 2005).

In the year 1919-1940, Woodruff become, the Company president after his father purchased the Company from Asa Candler. Woodruff could spend 60 years as company leader introducing the beverage to the world beyond. The genius of Wood ruff so opportunities far beyond for led the expansion of Coca-Cola overseas and introduced Coca-Cola into the Olympic Games using his innovative marketing ideas (Ries, 2005).

The Competitors

Through the drastic growth, Coca-Cola is now the largest soft drink company in the world. Every year 800,000,000 servings of just “Coca-Cola” are sold in the United States alone. The company takes pride in being a worldwide business that is always local (Steinmetz, 2005).

Coca-Cola competes in the nonalcoholic beverages segment of the commercial beverages industry. Based on available data and available industry sources, The estimates is that in 2004, world wide sales of the products comprised approximately 10 percent of total world wide sales and that is why Companies search as Pepco and Cad bury Schweppes PLC realized and become the two most biggest threats of Coca-Cola in beverage market segment. Note that PepsiCo has more than doubled the employees. PepsiCo is one of the fierce competitors in the beverage industry. The industry contains a number of water brand, Aquafina and the leading sports drink brand Gatorade. PepsiCo has its own coffee product, Frapuccino, marketed in joined venture with Starbucks (Steinmetz, 2005).

PepsiCo obtains 60 percent of its revenues from its snack division. The division has succeeded in these health-conscious times with a campaign that emphasized” better for you” products. The product meets the food and drug administration and the National academy of Sciences nutritional criteria (Ries, 2005).

Crab and Duck one the successful tailored brands of PepsiCo, which they are available in China and Lentil –based snacks available in India. PepsiCo recently ranked number 19 among the most admired American companies in the same time ranked number 10 as the most worlds admired companies whereby in 2006 it heard revenues of more than $35 billion and employees of about 168,000 (Steinmetz, 2005).

PepsiCo brands have existed for more than 100 years whereby Pepsi Beverages North America, PepsiCo international, Frito-Lay North America and Quaker Foods North America are comprised of PepsiCo (Ries, 2005)

Where else Cadbury Schweppes PLC as the world largest confectionary company, has a strong regional beverage presence in the America and Australia. With 200 years with brands search as Cadbury, Schweppes, Halls, Trident, Dr Pepper and many more and employing approximately 60,000 employees. The Company was the winner of Britain’s most admired award company in 2004 (Steinmetz, 2005).

The Soft Drink Industry

Coca-Cola, Cadbury Schweppes PLC and PepsiCo are primarily consist of soft drink industry. Analysts believe the brand Snapple, which Cadbury sells, would be a good fit for Coke. The benefit of PepsiCo would be benefit from the assets of Cadbury Mexican with brands search as Squirt, Crush, and Canary dry, which are great brands. PepsiCo’s doors may open when Nestle and Coke part ways on selling tea in the United States of which Bottled tea is one of the fastest growing drinks in the industry.

In 2001 Coca-Cola and Nestle established a 50-50 joined venture known as the Beverage Partners World Wide, Coke’s North America segment revenues have been increased from 2004-2006 (Steinmetz, 2005).

In the manufacturing of soft drinks, water is the main substance. Water purifiers are generally the best solutions for the parts of he world that there is limitation of water thus leads to increase to manufacturing costs per unit search examples of a place that is experiencing search problems is the United states where there is high obesity rates. Now many states burn the usage of soft drinks most likely in institutions.

The law value of a dollar is also problematic in a global environment of which Coke derives approximately 72 percent of revenues outside the United States (Ries, 2005).

The Future

Majority of people do not care what they are going to have, in other words; they don’t care before drinking that whether it is “Pepsi” or “Coke”. They do not actually differentiate between these two brands in order to their taste. Generally, availability in brands works like: push availability and pull customers demand Ries, (2005).

So in other words Coca –Cola will have strategies of quality that is after micro and macro analysis brand “coke” is primarily role: In enhance completion moments, through commercialization, when people watch cricket and fun time.

Through these strategies there could better understanding and better connection with the public. These are the “key consumption”.

Therefore, other strategies could be:

  • Expanding target markets.
  • Attractive brand name.
  • Brand Differentiation.
  • Price strategy that is trade promotion.
  • Promotion strategy and partnership.

Coca-Cola must however form a hedge to block its customers and its competitors to retain its trustworthy customers (Ries, 2005).

References

Ries, A. and Trout, J. (2005). Marketing warfare. New York: McGraw-Hill

Steinmetz, L.L. and Brooks, W.T. (2005). How to sell at margins higher than your competitors: winning every sale at full price, rate or fee. New Jersey: John Wiley & Sons.

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IvyPanda. "Coca-Cola Company Strategies." May 7, 2019. https://ivypanda.com/essays/coca-cola/.

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IvyPanda. 2019. "Coca-Cola Company Strategies." May 7, 2019. https://ivypanda.com/essays/coca-cola/.

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IvyPanda. (2019) 'Coca-Cola Company Strategies'. 7 May.

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