Coca Cola Situational Analysis

Keywords: situational analysis of coca cola

We can all happily say for a beverage brand like Coca-Cola that nobody is unacquainted with it in the whole globe as it has surely become a household name for all of us. It would be interesting for all of us to know about its source prior to learn its critical marketing strategies and company's perception to make it up to this stage.

Coca-Cola was observed, we would alternatively say created in 1886, just out of interest to really know what the combination of certain ingredients does indeed. It had been John Pemberton, an Atlanta based mostly pharmacist, who created this amazing combination of fragrant and caramel colored liquid. He then took that mix to the nearest pharmacy to get it carbonated and the thing that came up is currently has become a greatest known brand nowadays.

In the initial stage, Coca-Cola acquired sold just 9 eyeglasses a day for a whole year. But, a century later it offers produced nearly 10 billion gallons of syrup. After just three years of this technology, an Atlanta based businessman Asa Griggs Candler purchased rights of the business and brand in just 1500. He then became the first official chief executive of Coca-Cola venture.

As a natural salesperson Asa Candler began marketing the brand in 1893. He found out various brilliant and ground breaking ideas of promoting the brand. He started out distributing promotional coupons for complimentary tastes of the drink, and fitted distributing pharmacists with clocks, urns, calendars and apothecary scales bearing the Coca-Cola brand. People saw Coca-Cola everywhere, and the hostile promotion worked. That was the beginning it needed and successfully achieved. Further the business grown after its extension to the other parts of US territories and of the planet.

During its journey from 9 glasses per day to over 9 billion portions a day across the world, Coca-Cola Company has battled hard over time to safeguard the business and the brand. It includes mainly focussed on advertising as their main strategy for development. Many brand tags have evolved every once in awhile like "Demand the genuine" and "Accept no Alternative". It was to make customers aware of brand's value and keep them from buying alternative products of Coca-Cola.

Market Share

Being the largest company in the soft drink industry, Coca Cola relishes the largest market share. The corporation controls about 59% of the world market.

Global Market Share

The market of the business is geographically great which is managing it with great success. In 2002, the company grew their carbonated soft-drink business by practically 250 million device cases and made record quantities. Because carbonated carbonated drinks are the largest growth section within the non-alcoholic ready-to-drink beverage category measured by volume, that is why they are concentrating more upon this and they're continually increasing the rate because they know that accelerating this pace is crucial with their future success. Thus they can be increasing their market day by day. The procedure income attained by Coca Cola Company can be illustrated by the next pie chart.

This strategy spent some time working a whole lot and it includes helped them to become the World's leading SODA Company. The global unit deal of the Coca Cola Company is increasing from the previous ten years. The info of the global device sales of the Coca Cola Company can be represented by following chart.

So there is positive growth in the market of the Coca Cola Company. There's a worldwide quantity increase by 4% with strong international progress of 5%. This is merely because of the innovative marketing programmers, which includes deepened the partnership of the customers and Coca Cola. The financial health and success of these bottling companions is a crucial element of The Coca-Cola Company's capacity to generate and deliver leading brands. In 2002, the company had caused their bottlers to carefully turn good intentions into simple fact by improving the machine economics. The ends in 2002 echo this steadily enhancing and mutually constructive romance between your Company and their bottling companions. The primary reason behind this marriage is to continue realizing shared opportunities for progress, with closer coordination of functions including customer interactions, logistics and development.

Market Share by Area:

Coca Cola is the world-renowned soda and the business is currently working throughout the world. The worldwide total is approximately 17. 8 billion.

The operation review based on the segments is really as follows.

Operation Review

The size is least in the Africa & most in the THE UNITED STATES. The data about the market share of this company area wise is given in the following table.

The above stand shows the geographical earning of the Coca Cola Company and from this data; we can find out that the customers of Coca Cola are increasing which is shown by the business's per capita income. Unit case equals 24 eight-ounce servings. The column, which shows the non-alcoholic drinks contain commercially, sold beverages, as predicted by the Company based on available industry resources. The united states column comes from from

The Company's device case volume while the industry column includes non-alcoholic ready-to-drink drinks only, as estimated by the business based on available industry options.

In Asian society, which is the satisfied customer of Coca Cola, is approximately 3. 2 billion and the average consumer enjoys near two servings of our products every month. Through an strong focus on Coca-Cola, creativity and new beverages, the company has achieved size expansion of 10 per cent in 2002. With expanding economies and populations, this region has strong long-term probable, and the company is building an exciting family of beverage brands in addition to broadening the reputation of our main brands, led by Coca-Cola. In China, for example, sales of Coca-Cola increased 6 per cent. The total product case sale of Coca Cola in Asia can be shown by the next pie chart.

So the business is emphasizing more in this area and is trying to develop a strategy, which can boost the growth of the consumption of Coca Cola by the people of Asia. On the list of countries of Asia, Japan gets the highest percentage, which is approximately 29%. Among others, Pakistan, India and Bangladesh are those countries where the average consumption is increasing day by day.

PRODUCTS:

There will vary brands of the Coca Cola Company, which are in use through the world. The corporation not only offers in the carbonated drinks but also other refreshments. While launching its product, the marketing team considers the culture of the united states.

Major brands of coca cola

  • Coke
  • Sprite
  • Fanta
  • Diet coke
  • Coke classic

The overall level of this company is really as follows.

The determination of the business is to devote resources to normal water only in market segments where it expects profitable growth. This plan has paid dividends. The business has successfully applied its approach to brands in several key market segments, including Ciel in Mexico, Mori No Mizudayori in Japan, Bonaqua in Russia and Kinley in India. Backed by a solid network of bottling companions through out america, Dasani became the nation's fastest-growing water brand. In Eurasia, the complete Turkuaz brand team proved helpful together to kick off Turkey's first purified drinking water brand. This year, Coca-Cola Company also effectively energized a significant piece of its beverage strategy-water. By the end of 2001, it's bottled water size exceeded 570 million device cases, rendering it the next biggest contributor to the growth of the business after carbonated soft drinks. Three of the water brands, Dasani, Ciel and Bonaqua each achieved sales of over 100 million product cases for the entire year.

In 2001and 2002, the company in addition has made good improvement in coffees and teas. Drink Lovers Worldwide, the restored and strengthened marketing partnership with Nestle S. A. , started businesses in 2001. This partnership combines Nestle's knowledge in life science, research and development with the know-how of Coca Cola Company in brand building and distribution.

At once, the business grew Georgia caffeine in Japan by 3 percent through award-winning marketing in a category that was toned for the entire year. Also in Japan-where The Coca-Cola Company is the first choice in the full total tea category, the second-largest category in the non-alcoholic ready-to-drink segment-it launched Marocha GREEN TEA EXTRACT. With sales of 46 million unit cases for the entire year, Marocha Green Tea is the fastest-growing product in the fastest-growing category: green tea. The popularity of Marocha is also recognized by the industry with a leading trade journal naming Marocha typically the most popular new food and beverage product of the entire year.

STRATEGIC PLANNING

In the year 2002, the company had a great success, as the strategy worked well which led to making Coca Cola Company the world's leading company. In 2001, company accomplished the crust of it's strategy as

Worldwide volume level increased by 4 percent with strong international development of 5 percent and clear signals that our North American business keeps growing solidly and predictable.

Earnings per talk about grew by 82 percent, even as sent on our commitment to create amount expansion while aggressively

Return on common collateral grew from 23 percent in 2000 to 38 percent this season.

Return on capital increased from 16 percent in 2000 to 27 percent in 2001.

The company has generated free cash flow of $3. 1 billion, up from $2. 8 billion in 2000, an obvious sign of its underlying financial power.

The technique for the future of the business is very straightforward. The marketing strategy for the entire year 2002 is really as follows,

Accelerate carbonated soft-drink progress, led by Coca-Cola.

Selectively broaden the category of beverage brands to operate a vehicle profitable development.

Grow system profitability and capability as well as our bottling associates.

Serve customers with creative imagination and consistency to create progress across all stations.

Direct investments to highest potential areas across markets.

Drive efficiency and cost-effectiveness just about everywhere.

MAJOR Rival PEPSI INTERNATIONAL

HISTORY

PepsiCo is a global leader in convenient foods and beverages, with revenues around $27 billion and over 143, 000 employees. The company involves the treat businesses of Frito-Lay North America and Frito-Lay International; the beverage businesses of Pepsi-Cola THE UNITED STATES, Gatorade/Tropicana THE UNITED STATES and PepsiCo Drinks International; and Quaker Foods THE UNITED STATES, manufacturer and marketer of ready-to-eat cereals and other food products. PepsiCo brands can be purchased in almost 200 countries and territories.

Many of PepsiCo's brand names are over 100-years-old, but the corporation is relatively young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana was purchased in 1998 and PepsiCo merged with The Quaker Oats Company, including Gatorade, in 2001. would entertain the listener with the latest musical selections rendered by violin or piano or both. The brand new name, "Pepsi Cola", comes from both of the process substances, Pepsin and Kola Nut products. It had been first used on the August 28. At that time, Bradham's advertising praises his drink as "Exhilarating, invigorating, helps digestion".

1990-2002

The advertising campaign of the Pepsi changes to, "You have a good choice baby, Uh-Huh!". Along with the extensive use of the celebrities in the ads, the reputation of Pepsi increase. In 1992 Pepsi-Cola created a relationship with Thomas J. Lipton Co. Today Lipton is the largest advertising ready-to-drink tea brand in america. Outside the United States, Pepsi-Cola Company's soft drink operations are the business of Seven-Up International. Pepsi-Cola drinks can be purchased in more than 190 countries and territories.

In Asia, they preferred Lahore to make their regional office. This was done in 1970. This regional office is monitoring all the functions carried out in THE WEST Asia. As with Pakistan, they only inserted beverage industry. They have got eleven bottlers covering complete Pakistan. The flower operating here's Riaz Bottlers (Pvt) LTD. This vegetable was proven at Lahore in 1974. The full total capacity of the vegetable is 30, 000 instances per day. They have got four filling lines in the seed operating on the three transfer bases. Each move is of eight time. They have everlasting work force of 750 people and them employee roughly 1000 people more on short-term basis during summer season.

Pepsi's Products

  • Pepsi
  • Teem
  • Mirinda
  • Pepsi Max
  • Pepsi Lemon
  • Pepsi Blue
  • Mountain Dew
  • 7up

PROMISE OF COKE

The basic proposition of our business is easy, solid and amazing. When we bring refreshment, value, joy and fun to your stakeholders, then we effectively nurture and protect our brands, especially Coca-Cola. That is the key to rewarding our ultimate obligation to provide regularly attractive results to the owners of our own business.

TARGET MARKET

Coke's commercials quite simply based on young generations, So, the young era is the prospective market of Coke because they would like to symbolize Coke with the children and energy nonetheless they also consider about the old people they take then as a co-target market.

MAJOR SEGMENTS

Major sections are basically those individuals who take this drink daily and the ones areas where in fact the requirements is higher then the other areas. You will discover more and more people who take this drink daily and those people who take each week and the ones who take less often are always there as well. So, their basic sections are those individuals who take this drink regularly.

FACTORS AFFECTING SALES

There are so many factors, which influences the sale of coke. Here we are talking about three major factors which effects coke.

  1. Per capita income
  2. Competitors
  3. Weather

Per Capita Income

First we will discuss about "Per capita income". This is major factor that influences the sale of the soft drink. Because which every passing yr budgets have become very stringent and tight in order to acquire things. So the disposable earnings of the folks are coming down. They spend closely on rents, utilities, and education and basic necessities and from then on when they get extra cash they look at this soft drink. Therefore the decreasing per capita income effects badly in selling and production of this soft drink.

And to get through with this difficulty there exists need to increase the degree of per capita income of Pakistan because it is much lesser than all of those other countries.

Competitors

Coke's major competitor is "PEPSI" and there is no hesitation to say this because everyone knows that and the rest of the cold beverages and water, caffeine, tea is the competition.

Weather

Weather is the 3rd major factor in effecting the Coke's advertising. This is underdeveloped market so the coke's consumption in summers is 60% and in winters is 40%.

MAJOR CUSTOMERS NEED

First of all majority don't worry that what they will have. In other words, they don't service before taking in that whether it is "Pepsi" or "coke". They don't really actually differentiate between these two brands to be able to their preferences.

Consumers essentially drink what they get.

They believe that on "WHAT COLD THEY SOLD"

Consumer's supply in brands is actually works like

Push availability

Pull consumer's demand.

For this reason, Coca-Cola has provided their coolers and freezers on the market. They have got maximum quantity of coolers and freezers on the market. They provide this infrastructure free of cost merely to provide child coke with their customer, that they want to be purchase.

Their salesman and technicians regularly visit all the outlets where coke has its infrastructure to check that either it is at proper condition or not, if not they immediately change or repair it.

STRATEGIES OF QUALITY

After Micro and macro examination Brand "coke" is mainly role

  • Enhance competition moments
  • When people watch cricket
  • Through commercialization
  • Fun time

Though these strategies, there may be better understanding and better connection with the public. These are the "key consumption".

THREATS FROM COMPETITORS

Threats are well prepared. Price is the major risk. When price will go certain beyond the exact price whether drop or go higher its effects the consumption of soda.

Because when the purchase price goes higher people go for the substitute of "coke" i. e. Pepsi.

And when price falls they feel that there exists must be something amiss in it.

In short it all depends on customer's understanding.

TARGETS THAT COULD LIKE TO ATTAIN

Every organization runs on the bases of revenue maximization so Coke is also buying high profit percentage.

There are three major means of making money

  1. Overnight profit
  2. Windfall profit
  3. Ethical and un-ethical ways

Over Nighttime Profits

They could be in a single day profit that is for the number 1 brand for the entire year. This may be got my increasing sales volume

Windfall Profit

There can be windfall income. They will be the extras profit. Once the intake is on increase. So, there differs kind of revenue.

Ethical and Unethical Ways

Profit can also complete honest and unethical ways. They believe upon this quote

"Everything is fare in love and war".

Some profits continues to be for some time like "overnight income" plus some just come and go like "wind show up profits". And they can also get profit through different approaches.

EXPANDING Focus on MARKET

In last 2 years Coke has keep coming back in ambitious manner.

Consumer has choice

Attractive brand name

Brand differentiating

Consumer Has Got Choice

Now the consumer offers choice. Because now they know the name of another big brand, though coke is the next best name but it can get a much better position after some time

Attractive Brand Name

Now the consumers know the Name of Coke, because Coke is the name, which is the most popular after the phrase "alright". So people can better differentiate brands with each other.

Brand Differentiation

Now different companies have got different brand names. So, people can differentiate between brands. Two major brands "coke" and "Pepsi" also have brands.

Coca Cola's Brand

Coca cola is "US" brand. Because they have confidence in the togetherness, being people jointly and friends are being alongside one another. Coca Cola firmly thinks that Pakistani temperament is "US" not "Me personally"

Pepsi's Brand

Pepsi's brand is actually is actually "Me personally" brand name. They use the nature of "ME". In contrast to Coke they imagine on individual have difficulty.

THREATS AND OPPORTUNITIES FOR PRICE

Opportunities

If Coke is considered a luxury product. Then you have the taxes rate system

15% - sales tax

20% - excise duty

27% - goes to government

03% - To make Budget

After paying each one of these taxes coke must pay electricity charges. We have to devote to distributions. Right after paying all these expenses Coke's margin squeezed and consumers have to cover increasing tariffs.

These will be the opportunities through which we can raise the price and can get gains.

Threats

There are a lot more dangers in increasing prices. Because same issue of swap. If Coke raise the price let us say 1 rupee. Then people definitely won't go for coke. They have got the best swap of Coke that is Pepsi. So these are the dangers in increasing prices. Coke will lose the margin of its income and can face damage.

STRATEGIES OF GETTING GOALS I. E. "HIGH PROFITS"

To increase the price is minimal thing, which Coke can take up. There are so many ways by which Coke can boost the gains. Some major ways are as follows.

Volume can be increased

Interest degree of consumers

To be a part of energetic festivals

How to increase the volume of consumers?

Coke can improve the volume by extending the industry of coke. Through advertising, offering different interesting things to draw in people towards the product.

How to raise the interest level of consumers?

Coke is increasing the eye degree of consumers by offering different flavors.

For example Coke is increasing the amount of tastes in "Fanta", this is one of the merchandise of coke. Through offering different tastes Coke can raise the Degree of consumers and through this gains can be gained.

How to be a part of energetic celebrations?

Coke has already been getting involved in the celebration like "Basant" since last three years. Coke offers different attractive things in their happening and through this Coke gained high earnings and use of coke increased on these situations.

And this year in this season 2002 individuals were anxiously waiting that what interesting thing coke will offer.

MARKETING STRATEGY

Our local online marketing strategy enables Coke to hear all the voices across the world requesting beverages that span the entire spectrum of tastes and situations. What people want in a beverage is a representation of who they are, where they live, the way they work and play, and exactly how they relax and recharge. Whether you're a student in the United States enjoying a refreshing Coca-Cola, a woman in Italy going for a tea break, a kid in Peru asking for a drink drink, or one or two in Korea buying bottled water following a run alongside one another, we're there for you. We are determined not only to make great beverages, but also to contribute to communities round the world through our commitments to education, health, wellness, and variety. Coke strives to be a good neighbor, regularly shaping our business decisions to increase the standard of living in the areas where we conduct business. It's a special thing to have vast amounts of friends around the world, and we remember it.

MARKET POSITIONING

Product Range

The total range of Coca Cola company in Pakistan includes

Coke.

Sprite.

Fanta.

Diet Coke.

And company offers their products in different bottle sizes these includes

SSRB (standers size returnable container)

LRB (litter returnable bottle)

NRB (no return container) or throw-away bottle

PET 1. 5 (1. 5 litter plastic material bottle)

CANS (tin pack 330 ml)

Packing

Coca cola products can be found in several packing

24 regular bottle shell

6 bottle pack for 1. 5 pets

12 containers in a pack for disposable bottle

24 cans in a single pack.

PRICE STRATEGY

Trade Promotion

Coca cola company gives bonuses to middle men or merchants in way a that they feature them free examples and free empty containers, by this these suppliers and middle man motivate their product on the market. So in retrospect coca cola seen more in the market. Plus they have a good deal in the market because in line with the expert which product seen more in the market that markets more.

"Seen as sold"

They do agreements with a shop keepers and stores to exclusive deal in that stores. These stores are called as KEY accounts in their local vocabulary.

And coke also make investments heavy budget on these stores and will be offering them free samples and free containers plus some time cash incentives.

Different Price In Different Seasons

Some times Coca Cola Company change their product prices according to the season. Summer is meant to be a good season for beverage industry in Pakistan.

So in winter they reduce their prices to keep their sales and earnings. But normally they reduce the prices of their pet containers or 1 litter a glass bottle.

PROMOTION STRATEGIES

Getting shelves

They gets or purchase shelves in big departmental stores and display their products in that shelves for the reason that style which show their product more clear and more appealing for the consumers.

Eye Getting Position

Salesman of the coca cola company positions their freezers and their products in eye-catching positions. Normally they keep their freezers close to the entry of the stores.

Sale Promotion

Company also do sponsorships with different school and school's cafes and sponsors their sports events and other extra curriculum activities for getting market talk about.

UTC Scheme

UTC mean under the crown structure, coca cola often do that type of program and they feature very handy awards in it. Like once they offer bicycles, caps, tv sets, cash prizes etc. This structure is very much indeed well-liked by children.

DISTRIBUTION CHANNELS

Coca Cola Company makes two types of selling

Direct selling

Indirect selling

Direct Selling

In direct selling they provide their products in shops by utilizing their own transports. They have got almost 450 vehicles to supply their bottles. In this type of reselling company have more profit percentage.

Indirect Selling

They have their complete sellers and firms to repay all area. Because it is very hard for them to cover all section of Pakistan by their own so they have so many complete sellers and firms to make sure their customers for option of coca cola products.

FACILITATING THE PRODUCT BY INFRASTRUCTURE

For providing their product in good manner company has provided infrastructure these includes

Vizi cooler

Freezers

Display racks

Free empty containers and shells for bottles

ADVERTISEMENT

Coca cola company use different mediums

Print media

Pos material

Tv commercial

Billboards and holdings

Print Media

They often use print out media for advertisement. They have a separate department for print out media.

POS Material

Pos materials mean point of deal material this consists of: posters and stickers screen in the stores and in various areas.

TV Commercials

As everybody know that Television set is a most common entertaining medium so Television set advertisements is one of the very most attractive way to do advert. So Coca Cola Company does regular TV advertisements on different programs.

Billboards And Holdings

Coca cola is very much mindful about their billboards and holdings. They have got so many sites in several locations for his or her billboards.

EXPECTATIONS FOR THE Approaching YEAR

Every thing begins from the attitude of consumer's action. And the essential key to attract the consumers is to put the "money away".

And positive sense felling with the brand, that they used to have Coke needs to market their products greatly in the coming year. And it will take the 10% of their profits. And when we take it as a worldwide level it is $ I billion.

Coming calendar year is the challenging season for the industry of Coke. They need to take tons of decisions that how to boost the creation and where they have to spend money.

For getting success in coming year they need to have some considerations like

Loyal consumers are very important to company's success.

Workers ought to be the brand centric not the campaign centric.

They ought to know how much to for the brand activities.

They should also know that how much regarding the promotion activities for brand.

HOW COKE DETERMINE THE YEARLY BUDGET

Coke determines its yearly budget by the

Sales volume

Profitability

Target volume

Sales Volume

Coke can determine its every year budget through the sales volume level. They first concentrate on the truth is "what is the condition of their sales?" if the condition is good of the sales they definitely increase their development and sales amount. Otherwise they concentrate on their old strategies.

Profitability

The second thing by which they decides budget is the "profit". if they r getting income with the high margin, then they definitely want to increase their earnings within the next coming year. Every organization runs on the basis to getting high profits. No organization desires to face Loss in their business. To get profit is the first main concern of the Coke.

Target Volume

To run the business enterprise every industry has some focuses on, which they want to attain in a particular time frame. If industry achieves those goals in that period then for the coming year it increases the volume of the mark.

So Coke Follow the same thing it has additionally some goals and goals to achieve in the given time period. When they be successful for doing that target then they increase their goal volume in the next year.

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