In the essay “Economics of the Coca-Cola Company,” the author discusses some of the major tactics that Coca-Cola uses to better its product positioning. They are through packaging innovation, intense advertising, brand differentiation and flavor variety…
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Within each category there are several product lines for example under Juices there are concentrate, not-from-concentrate, frozen concentrate, pulp-free, fortified and flavored juice blends. The flagship product bears the same name as the company. Coca-Cola is not only the most popular and biggest-selling soft drink in history but also the best-known brand in the world (“Coca-Cola - Brands - Brand Fact Sheets,” 2011). Coca-Cola has got products all across the beverage products’ life cycle. The company has at its disposal immense resources – finance, human capital, distribution channel, and brand – to support research and development to continuously come up with new products and to see them through the resource-draining phases of the product lifecycle (the introduction and growth stages). Whereas on the other end of the product lifecycle, Coca-Cola has also been able to sustain its flagship brand as a cash cow at the maturity stage. Coca-Cola has one of the most effective, if not the best, marketing mix strategies that include: merchandising, product-placement, public relations, endorsements, sponsorships, exhibitions and most of all advertising. However, due to its continuous innovation Coca-Cola has had challenges when it comes to market cannibalization. This is manifested in different ways such as between two Coca-Cola brands or between the old retail distribution channels (shops, supermarkets) and vending machine. Even though the presence of numerous brands has stifled the growth of some of its products, the marginal benefits have been greater than the marginal loss for Coca-Cola in its multi-brand strategy. This strategy is referred to as a single-position strategy and it has worked for Coca-Cola because it is often easier and cheaper to introduce a new brand rather than change the positioning of an existing brand in the eyes of the consumer (Ries & Trout, 1986). 2.0. Market trends In a five-year forecast that uses 2009 as the base year, it is estimated that the global soft drinks market will experience a growth of 16.2% (Datamonitor, 2010). A large part of this growth will be as a result of the rapidly growing functional soft drinks (FSD) market that consists of sports drinks, energy drinks, enriched drinks, smoothies, ready-to-drink (RTD), iced tea and dairy drinks. Not to be left behind, Coca-Cola has actively been engaged in expanding its product offerings in this market. Sports and energy drinks are the two most recognizable and successfully established sub-categories within the overall FSD market. According to Lewis (2009) health, convenience and premiumization are the three leading megatrends driving the global soft drink market forward. This implies that the soft drink market still has a lot of potentials to innovate with truly unique products that offer genuine and proven health benefits across demographics and consumption occasions despite the global economic downturn. Consumer behavior is a function of the product, the consumer, his social environment, the competing products and the brand marketing strategy. Coca-Cola’s strength has been how it communicates its brands and how consumers perceive those brands relative to other competing brands in the marketplace.
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“Economics of the the Coca-Cola Company Essay Example | Topics and Well Written Essays - 3250 Words”, n.d. https://studentshare.org/macro-microeconomics/1392104-describe-coca-cola-company-s-businesssuch-as.
In this campaign the company decided to introduce temporarily a white can for its famous coke brand. The usual red cans were rebranded to white cans with images of white polar bears on them. The company for the first time in history changed its iconic red cans white in order to celebrate the polar bear and commit money to WWF’s conservation efforts (Coca Cola).
The paper will also provide conclusion in which the brief analysis of the strategies of The Coca Cola Company and some suggestions to improve these strategies are given. The Coca Cola Company began serving their delicious and refreshing sparkling beverages 125 years ago.
Coca-Cola has a strong market presence in the soft drink industry and has been continuously introducing various new products to satisfy the needs of their existing customers as well as attract new customers. Through acquisition of local soft drink products and their various marketing strategies, they have been strategically gaining competitive edge and strong local market presence.
Muhtar Kent. The stocks of the company are listed in the New York Stock Exchange .The Company is rated as one of the largest companies in United States of America. It has been in operation for the last 130 years producing over 400 different kinds of brands for its customers.
The company has over 300 bottling partners globally that are responsible for its products and distributions and takes pride in playing an environmentally responsible role.
With the current global economic downturn, we will be looking at how the company has performed based on its results for the First Quarter of 2009.
The paper operates mainly based on research questions which can be stated as follows: What is the benefit to consumers of price increasing in hot weather? Price is being allowed to act as what role? The current prevailing system of machines having a fixed price has what effect on pricing (causes the fixed price to effectively act as a what)?
The Coca-Cola Company has been operating internationally for over a century and has seen rapid growth in its business since it started. The company has introduced many innovative carbonated and non-fizzy drinks to add to their numerous products, which have been well received by consumers, including the Vanilla Coke and Coke Zero.
The markets attending the 2012 London Olympics will be domestic citizens and international citizens of varying demographics and lifestyles. This concept of creating global harmony through Coca-Cola products will be a proper fit for a theme involving ecology and green business as well as diversity found prevalent at the Games.
These, coupled with the recent global recession and increased competition results in low sales. Coca Cola’s unethical behavior encompasses four issues in racial discrimination, health concerns, anticompetitive behavior, and water usage
Further information was about the company was obtained from a book about Coca-Cola company. Coca-Cola's SEC filings were obtained from the US Securities and Exchange Commission official website.The Coca-Cola Company is a corporation that operates as a manufacturer, retailer and marketer of non-alcoholic beverages syrups and concentrates.
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