...Product Strategy – Coca Cola or Coke from the Coca Cola Company Coca Cola Company is the world’s largest beverages company and the No. 1 provider of sparkling beverages, ready-to-drink in the world. It is an American multinational beverage corporation and manufacturer, retailer and marketer of nonalcoholic beverages which is headquartered in Atlanta, Georgia. The company is best known for its flagship product Coca-Cola which invented in 1886 by pharmacist John Stith Pemberton. The famous product of the company is Coca-Cola or often referred to simply as Coke. The name refers to two of its original ingredients which are kola nuts, a source of caffeine and coca leaves. Coca-Cola or Coke is the most popular and biggest selling carbonated soft drink, as well as the best known brand in the world. According to Edinburgh Evening News (2010), Coca-Cola has become the first brand to top 1 billion in annual UK grocery sales. It was a big amount and proved that Coca-Cola has dominates the market of soft-carbonated drinks. The Coca-Cola Company sells beverages product in more than 200 countries as referred to the company 2005 Annual Report. From the report, it was also stated that out of more than 50 billion beverage servings of all types consumed worldwide everyday drinks containing trademark by Coca Cola and as result from that, Coca-Cola accounted more than half of the company’s total sales. In addition, as according to Jim Fink in his article (Investing Daily, 2012), Coke is one of the...
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...Consider all the different means of differentiating products, services and brands which one or two have the most impact and why? • Means of differentiating a Brand, Coca Cola. Rita Soares Dos Santos International Marketing Whitehall - MIB 2013 Traditionally, the factor of differentiating products, services and brands is such a strong force that moves all the market. For example, according to branding, today it represents a huge strength that when is a strong and establish brand hardly anything goes unbranded. When people consider taking a differentiation strategy is important to apply for the development of a product or service that presents unique attributes that are valued by consumers. Moreover, this customers need to perceive this products and services to be superior than or different from others of the competition. In this essay, I will ...
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...Business-Level and Corporate-Level Strategies Shemeika Goodwin Strayer University Professor Dr. Yemer February 15 2015 Abstract This research paper will analyze the business-level strategies for Coca-Cola to determine the business-level strategy that is most important to the long-term success of the firm and whether or not the decision was a good choice. It will also analyze the corporate-level strategies for Coca-Cola and determine the corporate-level strategy this is most important to the long-term success of the firm and whether or not the decision was a good choice. This paper will analyze the competitive environment to determine the corporation’s most significant competitor. Compare their strategies at each level and evaluate which company is most likely to be successful in the long term. It will also discuss the slow-cycle and fast-cycle markets. The Coca-Cola Company was founded in 1892 and was incorporated on September 5, 1919. The Company is currently worth over $168.7 billion. The Coca-Cola Company markets, distributes and sell more than 500 non-alcoholic beverage brands including carbonated beverages such as Coca-Cola, Diet Coke, Fanta and Sprite. The Coca-Cola Company also owns or licenses an array of still beverages that include bottled waters, sport drinks, juice drinks, coffees, ready-to-drink teas and energy drinks. Analyze the business-level strategies for the corporation you chose to determine the business-level strategy you think is most important...
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...Marketplace Companies around the world are fighting for position in their industries. The completive world of alternative beverages is no different. The companies involved in this epic battle for market share all are challenged with the three questions outlined by Arthur A. Thompson “What’s the company’s present situation? What should the company’s future direction be and what performance targets should we set?” (Thompson, 2012) The development of a strategy for the companies involve in the alternative beverage arena is a daunting one. There are pressing internal and external environmental factors that present significant challenges in the gaining and maintaining of market share with in the industry. The obstacles faced by these organizations include global economic slow downs, dynamic distribution channels, negative press and fickle customer tastes. These companies, however, must remain focused and vigilant to attract customers to their brands. The case study presented by John E. Gamble, Competition in Energy drinks, Sport Drinks, and Vitamin-Enhanced Beverages, outlines the boons and challenges faced by the four leading distributers of alternative beverages around the world. The industry leaders (PepsiCo, Coca-Cola, Red Bull and Hansen Natural Company) in the alternative beverage market are what is know as a strategic group. “A strategic group is a cluster of industry rivals that employ similar competitive approaches, have product offerings that appeal...
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...which focuses on a specific market” (Miltenburg, 2009, p.7). The Coca Cola Corporation adopts the multi- domestic strategy. Coca Cola manufactures all products independently in each country depending on the external and internal environments of each country. Coca Cola must develop their strategies based on the nature of the culture, status, and people in each country. The factors that must be identified in order for Coca Cola to realize growth are value disciplines, the generic strategies, and the grand strategy. Value disciplines The value discipline model created by Michael Treacy and Fred Wierruna describes three alternative approaches to the generic strategy. Michael and Fred “believe that strategies must center on delivering superior customer value through one of the three value disciplines” (Pearson & Robinson, 2011, p. 185). The value disciplines are operational excellence, customer intimacy, or product leadership (Pearson & Robinson, 2011). Operational excellence is accomplished by a focus on lean and efficient systems, cost efficiency, and convenience so that consumes are provided with products they require at a minimum cost. Customer intimate corporations focus on establishing a long-term relationship with consumers through a focus on products or services. Product leadership focuses on a commitment to continual development and the eagerness to take risks (Pearson & Robinson, 2011). A company must select one of the three disciplines and execute it consistently...
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...Globalization and the Coca-Cola Company Introduction Today, Coca-Cola is one of most well-known brands in the world. This company has continued to gain momentum and growth, capitalizing on the rapidly expanding beverage industry and ranking as the largest beverage company in the world. With its push for global market share, Coca-Cola now operates in over 200 countries with over 84,000 suppliers. Currently, over 70% of Coca Cola’s business income is generated from non-US sources (Coca-Cola Company, 2012). In over a century, Coca-Cola has grown the company into a multi-million dollar business. However, the road to success has not always been easy for Coca-Cola. Many countries have banned the use of Coca-Cola products, claiming that these products are “threatening public health” and “encouraging obesity.” Many labor practice suits have been filed against the mega beverage company with accusations of “child labor sweatshops” and “discrimination in providing health care benefits to workers.” In addition, the beverage industry has been flooded with competitors introducing new soft drink products, such as Pepsi, along with soft drink alternatives, such as Gatorade, bottled water, fruit juice, and energy drinks. Coca-Cola has faced the challenge by introducing new beverage brands including Sprite, Fanta, Minute Maid, Simply Orange, Fresca, Vitamin Water, Smart Water, Odwalla, and Powerade. In light of the obstacles Coca-Cola has overcome, the company has remained true to its commitment...
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...Financial analysis 11. Recommendations 12. Conclusions 13. Bibliography A brief Walkthrough Coca Cola is a well-known brand and the world’s leading beverage producer. The company is over 100 years old and enjoys patrons in over 200 countries. The company till date remains true to its vision and mission which has permeated through to all levels of the company. Coca Cola has a product of more than 3,500 beverages. These include * Energy drinks and Sports Drinks * Fruit and Fruit juices * Soft Drinks * Tea and coffee * Water * Other drinks The external environment analysis shows that coca cola enjoys a competitive position across the industry due to high capital requirements and exit costs. It has an intense but healthy rivalry with Pepsi. The Pestel analysis shows a growing demand for healthier alternatives to carbonated drinks which Coca-Cola is now addressing. Through the internal analysis of the company, we understand that the company has a competitive advantage in terms of its brand reputation and value chain process which it should continue to further use to its advantage. The value chain is perfectly aligned to ensure maximum efficiency. As the financial analysis, will show, Coca Cola has an extremely competitive share value and performance making it one of the most profitable companies across the world. Overall, the Company easily implants its strategic intent into goals as seen in its HR practices followed in its marketing and...
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...Coca-Cola’s globalization and its main strategies by Olga Skuratovska Management 502 (MGT502) Professor Claudia J.Ford October 15, 2014 Olga Skuratovska Skuratovska1 Professor Claudia J.Ford Management 502 (MGT502) October 15, 2014 Introduction For my business case study research paper I chose the Coca-Cola Company. I went through a lot of information about the company, I learned the company’s history and analyzed their main strategies that made Coca-Cola one of the most successful and recognized beverage company in the world. “The Coca-Cola Company, founded in 1886, is the world leading manufacturer, marketer and distributor of non-alcoholic beverage concentrates and syrups. It currently operates in over 200 countries worldwide and is most famous for the innovative soft drink, ‘Coca-Cola’, but can now boast in the region of 230 different brands (www.coca-cola.com). Its headquarters are in Atlanta, Georgia. Its subsidiaries employ nearly 30,000 people around the world. 70% of the company volume and 80% of the company profit come from outside the United States. It is one of the most visible companies in the world. Their Coca-Cola product is now available all over the world and has resulted in the drink becoming the world’s...
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...The Coca-Cola Company: Basis of Competition As of 2012, Coca-Cola was worth $77.8 billion. It is currently the world’s leading brand according the annual “Brand Value Ranking” from ‘Interbrand’, and now, with ‘3,500 different beverages sold worldwide’ (Interbrand, 2012), Coca-Cola is leading the many emerging markets too. In order to be this successful, Coca-Cola must have an exceedingly strong basis of competition, and that, it does: For starters, Coca-Cola has achieved very high economies of scale since its beginning in 1886. High economies of scale allow businesses to produce more, at a much lower cost, because average costs fall when buying in bulk. This then allows the business to lower its prices, which will obviously instigate an increase in demand and potentially, profits. Then, with more profits, businesses can increase the barriers to entry within a market and deter other companies from entry. Furthermore, within the Soft Drinks Industry, the bargaining power of buyers is extremely high due to low switching costs, and the general ease at which consumers can switch; but due to them amassing a large degree of customer loyalty over the years, Coca-Cola is an exception to the rule as its customers have become increasingly less price sensitive. This is another benefit of having a competitive advantage. Coca-Cola’s competitive advantage comes mainly from its innovation and product differentiation techniques. Coca-Cola ‘spends roughly 20% of its advertising budget...
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...Case study Coca-cola Industry The Competition among companies selling same or substitutes of a product is an important determinant of the performance of the companies. However, firmly established companies enjoy competitive advantages in the market hence leading to their stable existence. Among businesses that enjoy these benefits include the Coca-Cola Company. Coca-Cola took part in securing of its competitive advantages in lots of ways. The company’s history is a huge determinant the space Coca-Cola occupies when you talk of competitive advantages between businesses. It is so since it has created awareness for a long time and still spends heavily in the advertisement procedure. The companies also brand help improved competitive advantages since it has existence and adjusted with the change of taste and presences making it universally accepted hence improving its stakes in the competitive advantages among other companies. Coca-Cola has also implemented strategies that have helped its existence for the more than 120 years of existence. These policies have given the company a comfortable seat in the world of stock exchange. All these strategies are: a) Putting up a flexible structure – Coca-Cola has been able to cut costs so as to deal with hardship times in the market. It is an activity that not all companies can do lead to their dissolution and making Coca-Cola enjoy competitive advantages. It is all made possible since Coca-Cola has a broad scope of capital that would...
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...Coca Cola Report Introduction Coca- Cola is one of the very well known brands operating in FMCG sector. The drink which has quenched the thirst of so many people around the globe was invented by John Pemberton a pharmacist by profession and most commonly called as “Doc”. He was assisted by Frank Robinson in the marketing of the product. The company was totally in mess until Asa Griggs Candler took over the business in 1891. Secret of Coca Cola’s success is the innovative marketing strategies of Grigg which laid the foundation for the success the company is enjoying today. Initially the drink was sold as a medicine for the treatment of fatigue and headaches. Later, with the imposition of tax in 1898 on all medicines, Grigg categorized it into beverage sector after a prolonged court battle. Ever since then, Coca-Cola is operating as one of the well known brands in beverage industry. In 1919 Candler was chosen as mayor of Atlanta which made him excessively busy because of this he decided to sale out the ownership of the company and Ernest Woodruff became the new owner in September 12, 1919. He changed the formula of the drink and labeled it as New Coke. Unfortunately, the drink was rejected by the consumers and with no option left Woodruff had to introduce the old Classic Coke back for meeting customer demands. According to Business Insiders Coca Cola is a brand with which 94% of the world’s population is familiar. The company has marked its presence in more than 200 countries...
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...Business Analysis Part III: The Coca-Cola Company Karen Mace MGT 521 June 11, 2012 Elaine Nissley Business Analysis Part III: The Coca-Cola Company The Coca-Cola Company is a successful global food and beverage organization. In 2012, The Coca-Cola Company was ranked 59 by Fortune 500 magazine [ (CNNMoney) ]. This was an increase from the previous ranking of 70. DiversityInc magazines ranked the organization as number 12 on the magazine’s top 50 companies for diversity in 2011 [ (The Coca-Cola Company) ]. The Coca-Cola Company has been the dominant leader in the global soft-drink industry through the 20th century [ (The Coca-Cola Company) ]. The Coca-Cola Company has been influenced by different economic trends, such as lower disposable consumer income and the importance of conservation. In a recession, consumers will often reduce their spending on non-essential items such as carbonated beverages so that their disposable income can be used to cover the essential household expenses. Carbonated beverages have been viewed as non-essential items because they lack any nutritional value. Coca-Cola has positioned the company to sustain this economic trend by offering products focused on a nutritional aspect such as flavored waters and reduced sodium sports drinks. Consumers can validate their spending on these items because they are healthy and “good for them”. Coca-Cola has addressed the importance of conservation by reducing the size of the bottle. The reduction in size...
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...head: ENVIRONMENTAL SCANNING Environmental Scanning MGT/498 May 1, 2012 University of Phoenix Environmental Scanning Pepsi and Coca-Cola serve as prime examples of major competitors in the beverage industry and strive to be different although each company produces a similar product. With the popularity of these corporations at the zenith of existence, each one needs to develop and maintain a competitive advantage that will yield results to their favor. For the purpose of gaining a competitive advantage measurement guidelines will need to be implemented to cultivate effective strategic planning and measure the effectiveness of each plan. The intention of this study will be to examine each cola giant in order to describe the internal and external environments of each one and develop an understanding of how each company uses environmental scanning. Furthermore, a discovery of competitive advantages will be uncovered by examining strategies, such as creation of value and sustain, measurement guidelines, and the effectiveness of the measurement guidelines used by each company. Environmental Scan The environmental scan of Pepsi and Coca-Cola will involve monitoring, evaluating, and disseminating of information from the external and internal environments to the key people within the corporations (Wheelen, 2010). An addition, each company will need to evaluate current performance results, review corporate governance, scan and assess the external and internal environment, analyze...
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...The Marketing Review, 2003, 3, 289-309 www.themarketingreview.com Demetris Vrontis1 and Iain Sharp2 Manchester Metropolitan University Business School and Legal and General The Strategic Positioning of Coca-Cola in their Global Marketing Operation Examines how Coca-Cola has strategically positioned it self within the world’s soft drinks market. Given that they operate in over 200 countries, they are faced with a clear choice of whether to standardise their product offerings globally and reap the potential benefits of economies of scale, adapt their offerings to a particular market (which may facilitate increased market specific penetration), or adopt an integrated approach utilising both approaches simultaneously (Vrontis’ AdaptStand approach). There has been much literature written regarding the external and often uncontrollable factors which may impact upon a firms positioning strategy; this paper looks at these externalities and the internal controllables in order to derive a ‘best fit’ strategic and tactical approach. Moreover, this paper looks at the strategic international positioning of Coca-Cola by utilising a number of models. Keywords: Coca-Cola, global, international, strategy, positioning, adaptation, standardisation, AdaptStand, AdaptStandation, international, marketing, Introduction If we consider business to be akin to war, then perhaps there is no better starting point than the writings of Sun Tzu [circa 400-320 B.C.]. ‘The Art of ...
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...Coca-Cola’s Marketing Plan: Phase III Laura Darby, Paula Coletti, Mira Walker, Victor Torres - Rosario, and James Rowan September 6, 2010 MKT/421 Henry Weber Product Life Cycle and Factors All products move through stages called the product life cycle. There are four stages that a product will follow. The stages are market introduction, market growth, market maturity, and sales decline (Cannon, McCarthy, & Perrault, 2009, p. 261). Different products will move through the life cycle at a different pace and there are certain factors that will affect its movement. “Kick’em Back” will begin in the market introduction stage of the product life cycle. Customers do not know about the product and are not looking for the drink. During this stage, Coca-Cola will likely lose money because they are investing in the product and receiving little sales. “Kick’em Back” should move quickly through this stage because Coca-Cola is a large, “well known” company, and they have many resources to advertise to the public. As “Kick’em Back” enters the second stage, market growth, sales will quickly rise. The company should move through the stage slowly because customers will be satisfied with the product and continue to buy it. As competitors begin to enter the market, they will try to copy the product or make it better (Cannon, McCarthy, & Perrault, 2009, p. 262). At the end market growth, sales and profits will decline for Coca-Cola. According to Cannon, McCarthy...
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