The Coca-Cola Company

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TheCoca-Cola Company

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Executivesummary

TheCoca-Cola Company is the largest multinational corporation in thebeverage industry. The company focuses on the sale of soft drinks. Ithas extended its operations in over 200 countries worldwide and about94% of the world recognize this company from it red and whitesignature logo. The company’s primary objectives are to refresh theworld both in body and spirit, to inspire moments of happiness andoptimism and to create value and make a difference through theirquality brands. The organization focuses on becoming globally knownin the future and continue serving their customers with commitmentand truthfulness to ensure sustained growth in the tomorrow’sworld. The company has adopted some product positioning strategiesthat maintain the company’s product in the top position. Thecompany has two major strengths which are its brand awareness andactively developed distribution networks. It also faces two criticalweaknesses which are water management and currency fluctuations. Thecorporation has an opportunity to diversify and extend its reach, butit has always been threatened by the current tendency of shiftingfrom its products to natural and organic products. The companycommands over 30% of the international market.

Contents

Executive summary 2

Introduction 4

Market analysis 4

SWOT analysis 4

Competition analysis 5

The company’s mission and vision 6

Marketing Strategies and product positioning 6

Financials 7

Conclusion 7

References 8

TheCoca Cola Company

Introduction

TheCoca-Cola Company has its headquarters located in Atlanta Georgia. Itis an American multinational beverage corporation that operatesglobally. It dated back in 1886 and was established by JohnPemberton. Currently, the company is run by Muhtar Kent. It is aknown manufacturer, retailer, and distributor of non- alcoholicbeverages and about 94% of the world’s population recognize theirwhite and red logo. The corporation commands the greatest marketshare in the beverage industry and ranks as the biggest beveragecompany in the world. Today the company have expanded its operationsto over 200 countries where it sells over 500 brands. Some of itsproducts include Sprite, Fanta, Diet Coke, Coca- Cola Zero, DasaniMinute Maid, Fresca and Delvalle among many others (Hays, 2004).

Marketanalysis

TheCoca-Cola Company has no particular target group for its products.However, most of its target marketing focus on the young generationwhile some advertising is geared towards the older persons. Thecorporation has put forward some limitations when it targets theyoung people. It has reduced a lot of advertisements that aim at thechildren below the age of 12 years. Instead, it has decided toeducate the parents and guardians on the nutritional value of theirproducts to allow them to make informed decisions on what drinkstheir children should take.

SWOTanalysis

TheCoca-Cola Company enjoys two major strengths. Its brand awareness androbust distribution networks. is among theworld’s recognized corporations. It maintains the top position asthe clear- cut winner. Its active distribution networks enable it tomaintain a competitive advantage. It can adequately make its productsavailable to over 200 countries across the globe. The company hasstable distribution systems with independent bottlers, wholesalers,and retailers. also face two significantweaknesses. Water management and foreign currency fluctuations. Wateris the main ingredient for its products. However, it is a scareresource in the primary parts of the world. Utilizing this resourcehas become a challenge since they face competition from otherindustries where water is widely used as a raw material. The companyhad some foreseen opportunities in the future such as the ability todiversify and extended reach (Hays, 2004. isalready known throughout the globe, and it may not face significantchallenges while entering new industries. It can also extend itsgeographical reach easily since it has an established way of doingactivities that is stable and reliable. The nutritional selection hasbecome a significant threat to the company. In the recent past, manypeople have shifted towards consumption of natural and organicproducts. Some countries have even tried to ban the use of Coca-Colaproducts claiming that they threaten health and increase obesity.

Competitionanalysis

Despite thefact that the Coca-Cola Company serves as the largest company in thebeverage industry. It has consistently faced completion from Pepsi CoNestle S.A, Dr. Pepper Snapple Inc and Monster Beverage Corporationamong others. The beverage industry has been flooded as a result ofcompetitors introducing new soft drinks. Nonetheless, the Coca-ColaCompany has fought against these challenges by introducing new andbetter beverage brands. In the light of problems faced, the companyremains loyal to its commitment to offer quality and satisfyingproducts to its customers. The company maintains its beverage recipesas a secret and ensures properly managed manufacturing processes toensure that its product remains unique and distinguishable across theglobe.

Thecompany’s mission and vision

For anyorganization to compete favorably, there must be laid down objectivesthat it focuses on achieving. Targets give corporations sense ofdirection and their purpose. The Coca- Cola Company has its coremarketing objectives communicated via the company’s missionstatements which indicate where the company is now. It also has itsvision statements which describe how far the company wants to reachin the future. For instance, the company has a vision 2030development plan that contains long-term goals for the enterprise.The company’s mission statement is to refresh the world in bothmind and spirit, inspire moments of happiness and optimism and tocreate value and make a difference through their brands and action.In the future, the company wants to be a globally known and acceptedcorporation which conducts business responsibly and ethically tomaintain a sustained growth rate and remain competitive in thetomorrow’s world (Hays, 2004).

MarketingStrategies and product positioning

TheCoca-Cola Company has employed competitive positioning strategiesthat focus on placing it in a leadership position within the beverageindustry. This kind of product positioning has been used todemonstrate how superior their goods and services are compared tothose of their competitors. It is also a major counterstrategy inaltering the image their opponents wish to portray and put theorganization in that top position. A leadership position has providedthe company with an opportunity to diversify, increase niches for newproducts and services and also ensure global optimization andrelocation of critical functions. The Coca- Cola Company has alsoemployed value positioning strategies to sell their goods andservices at a price lower than the industry average. This approach isgeared towards appealing to consumers who are sensitive to pricechanges. It has placed the company’s products at a superiorposition within the industry which enable them gain stakeholdersconfidence and ensure excellence in investor relations.

Financials

Accordingto the report released this year, the Coca-Cola Company has a totalof 123200 employees stationed everywhere in the world. It has anannual operating cost of about $17.95 billion. This report alsoindicates that the Coca- Cola Company expects its revenue to grow atan average annual growth rate of 5.95% in the next five years. As perthe end of last year, the company had an annual revenue of US $44.294billion. However, the results released for the first quarter of 2016shows that the income has declined by 4%. Sales forecasts for thisyear reveals that there has been a decrease in the demand for soda inboth the international market and the US. Nonetheless, the declinehas been offset by the increased sales of carbonated drinks. Thecompany expects the sales to rise by 3% after having overcome theeffects of currency fluctuations. By the end of last year, thecompany had made profits worth US$7.351 billion which is a 3.16% fromthe previous year. The company foresees that its earnings will haverisen tremendously by 2030 since the international market is expectedto grow by $300 billion and the company commands over 30% of themarket share.

Conclusion

TheCoca-Cola Company is very competitive. In fact, its subsidiaries havedominated in the main parts of Africa and the sub-Saharan region. Itis an organization that has shown commitment and trustfulness in itsoperations. Most likely this company may gain some monopoly powershortly. However, this is possible if only it can fight the threat itis currently facing where people have started shifting from the useof its products to consumption of natural and organic products.

References

Hays,C. (2004). Thereal thing:Truth and power at the Coca-Cola Company.New York: Random House.

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