Coke Strategic Analysis

Topics: Coca-Cola, Soft drink, Diet Coke Pages: 10 (3280 words) Published: April 1, 2013
Coca Cola Company
Dina DeFabrizio
Dani Scarmozzino
Erica Henriques
Managerial Marketing

Product Definition:

Coca Cola, stationed in Atlanta, Georgia, is an American multinational beverage corporation and manufacturer, retailer and marketer of non-alcoholic beverage concentrates and syrups. The company offers more than 500 brands in over 200 countries and territories and serves 1.6 billion servings per day. Their mission is to refresh the world, inspire moments of optimism and happiness, and to create value while making a difference.

Internal Analysis:

Coca-Cola is, without a doubt, the largest company in the market of nonalcoholic beverages. Originally founded in the United States in 1886, Coca-Cola has gained an abundance of brand recognition throughout the world. A branding consultation company called Interbred named Coca-Cola at the top of their "best global brands" list in both 2009 and 2010. Obviously, Coca-Cola has a wide variety of other products. Specifically, the company owns and/or licenses more than five hundred brands and sports a portfolio of over 3,500 beverage products. Some of these products include diet soda, sparkling water, fruit juices, fruit drinks, water, sport and energy drinks, tea and coffee, milk, and soy based beverages. Just to boast, Coca-Cola fully owns four out of the top five soft drink brands in the entire world: Coca-Cola, Diet Coke, Fanta, and Sprite.  Coca-Cola sells their products in over two hundred countries. Up until 2011, the company had seven worldwide leadership groups. The groups are as follows: Eurasia and Africa, Europe, Latin America, North America, Pacific, Bottling Investments, and McDonald's Division. With these facts comes the obvious statistic that Coca-Cola's consumers come from very various and diverse areas of the globe. In 2010, the average person consumed 89 of the 8 ounce bottles. There are twenty-three countries (i.e. Australia, Japan, South Africa, Spain, Canada, Argentina, etc.) in which each person drank over one hundred bottles. In the same year, in Mexico, each person drank a whopping six hundred and seventy five bottles.  Also in 2010, the company's net operating revenue reached $35 billion, including a thirteen percent growth rate. In its prime market of North America, Coca-Cola had a volume growth of two percent consistently through the duration of the year, and a worldwide growth of five percent.  However, despite all of this positivity and growth that Coca-Cola was experiencing, they were receiving some negative feedback. There was a scandal in 2003 in which information came to light about many employees rigging a marketing test done three years prior for Frozen Coke at select Burger King establishments in the state of Virginia, this lead to the resignation of the leader of the fountain division of Coca-Cola. Following this was a public apology to Burger King from the company and a payment of $21 million dollars. The next event in the chain of negativity was the cancellation of Dasani water sales in Europe when it was discovered in Britain that some bottles were positively tested for dangerously high levels of a substance called bromate, which over-exposure to the substance causing cancer. Then, in India during the year of 2006, the Center of Science and Environment (CSE) of knowingly selling products that contained residue from various pesticides accused Coca-Cola. These pesticides were also very harmful, potentially causing cancer and damage to the nervous and reproductive systems. The pesticides could also potentially reduce density in bone minerals. Also, in general, the general public because of the high doses of sugar and calories already sees Coca-Cola as “unhealthy”. To add to the stress, many as one of the highest causes of obesity worldwide blame the company. These negative issues could potentially tarnish the brand image of Coca-Cola and decrease the demand of its products.  The biggest downfall these facts may pose...
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