THE COCA-COLA COMPANY

Investigating Marketing: The Coca-Cola Company



Investigating Marketing: The Coca-Cola Company

Introduction

For a company to succeed in the global soft drink industry, it needs to achieve critical mass and develop a distribution system that is strategically aligned with its brands. Coke has already met these goals in 90% of the world's soft drink markets, while Pepsi has attained them primarily in the United Kingdom. Cadbury Schweppes' performance is expected to continue to suffer because it is still not aligned with its U.S. bottler network. For Coca-Cola, this means continuing to reinvest its cash flow from developed markets (51% of volume) into emerging markets (43% volume) and new markets (6% volume). For PepsiCo, this means focusing its international soft drink business on the emerging markets of China, India and Russia, the fountain channel opportunity in the U.K., and Olestra fat free snacks in the U.L. For Cadbury Schweppes, one could argue that management has been concentrating on taking the strong cash flows from U.K.

Coca-Cola is a recognizable emblem worldwide. From a chemist trial to an international enterprise, Coca-Cola has made the essential acquisitions and organizational alterations to rendezvous both clientele and employee demands. The organization has been adept to boost its wideness by inspiring the employees to rendezvous the trials with pays, advantages, and recognition. Though Coca-Cola is globally renowned for its beverages, its organizational heritage of evolving its human assets has permitted the company to elaborate its goods and geographical come to, conveying those beverages into the dwellings over the world.

Reason for selecting Coca Cola

Coca - Cola seems already very well known brand in the world. Speaking of soft drinks, we can never neglect the products of this great firm of soda. From a development process, Coca - Cola says its position of primacy over the soft drinks market with a diverse range of products. Yet today, this brand faces stiff competition with other products such as Pepsi - Cola and also other local firms. Moreover, we are in the era of mass consumption, a multitude of consumers are faced with a multitude of products or manufacturers.

Boston Matrix of Coca Cola

Currently, Coca Cola is a cash cow for its company due to its large and increasing sales of soft drinks. At the start, Coca Coal was considered as a star, having high market growth and low relative market share (as it was new in the market). Soon, the product started gaining more and more market share because of the increasing demand of soft drinks and helped it self to become a cash cow for the company, having the highest market share in the soft drink industry.

Competition in the Market

The company has made a sea change recently, realizing it can't compete directly with Coke everywhere: It will aim at becoming a profitable number-two by concentrating on a few select emerging markets. This effort can only be successful if Pepsi reduces its exposure to the bottling business in its subscale and emerging markets, and finds bottling partners that ...