COCA COLA

Market and Nonmarket Analysis of Coca Cola

Abstract

The purpose of the paper is to discuss the market and nonmarket issues of Coca Cola. The paper highlights the industry comparison with the Coca Cola Company in addressing the nonmarket issues.

Market and Nonmarket Analysis of Coca Cola

Introduction

The Coca Cola Company has been successfully catering to the market and nonmarket environmental factors since its inception. It is due to this that the brand is widely consumed and remains to be one of the leading beverage companies in the industry. The nonmarket factors that affect the company are regulations and informal norms, and forces of competition.

Discussion

Industry Composition

The marketing plan of the Coca Cola Company has taken it to the great heights the company has achieved till date. They have successfully promoted the marketing plan on a global level, as well as in the United States. “The company has used famous musicians like new seekers and hilltop singers for the musical advertising campaign that acquired concentration of people towards the use of coke” (Klein, February, 2008). To draw the attention of target audiences, the company focused over the youthfulness which analyses the demographic factors for instance age, gender, and income and before implementing the marketing plan of coke in peoples' minds.

The company used different broadcasts and print media to promote coke in the U.S. and non-U.S markets. To include music in their advertisements they became to top international brand all over the world. In-depth analysis of market variables and trends had resulted into the successful implementation of marketing plan developed by Coca Cola.

The beverages market will be analyzed taking beverage manufacturers as players. The key buyers will be taken as retailers and on-trade companies, and raw material producers and packaging providers as the key suppliers. The global beverage industry is highly fragmented. The presence of leading incumbents and large numbers of market players boosts rivalry.

Geographic Dispersion and Industry Growth

The Coca Cola Company believes in geographic departmentalization, which is the grouping of activities according to the territory of operation. The consumers of the products of the company are geographically dispersed; therefore, the jobs are grouped on the basis of geography. The organizational structure of the company is divided into two broad geographic areas as per the operations. One category includes the North American sector and the other category is the international sector. The international category includes the European community, the Northeast Europe, the Pacific Rim, Africa and Latin America groups.

The four steps of the external environment analysis process are i) Identify the Market, ii) Identify environment factor (s)/Focus on factor (s) which most impact your business, iii) Classify as threat or opportunity & estimate magnitude of threat/opportunity and iv) Evaluate importance of factor and its impact on product/market. The firm wants to learn to identify attractive markets with the help of this process. Value is the result of giving benefits to customers and subtracting the cost of providing those benefits. It is very important for the firm to create value, because they must satisfy their ...