StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

The Fundamental Business Success of Coca Cola Company - Case Study Example

Cite this document
Summary
The paper "The Fundamental Business Success of Coca Cola Company" states that the marketing department strategies are being successful in demonstrating the ability to grow and even expand. The management of the company should focus on building strong customer loyalty…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER93.1% of users find it useful
The Fundamental Business Success of Coca Cola Company
Read Text Preview

Extract of sample "The Fundamental Business Success of Coca Cola Company"

Coca Cola Company Case Study Executive summary This paper seeks to establish the sound fundamental business success concepts that will be obtained from the firm under question. With the emergence of globalization, competition in the business world has taken a new direction and therefore redefining of strategies and managerial approaches to achieve any meaningful return in the otherwise crowded market. This paper therefore focuses on Coca Cola Company to take a deeper study on all the economic practices it has instigated over the years to gain a competitive edge against similar firms in similar industry. By taking it as a case study, the business structure of many firms will also be analyzed through what it will reflect concerning the competitive strategies that firms across the globe are lining up to stamp their authority in the local and international market. The company under study is the Coca Cola Company limited (Bowdin et al. 2005: 12-16). This company is one of the largest multinational with numerous subsidiary branches in over two hundred countries. It is known to be boasting of the greatest level of publicity through its appealing promotion mix that includes involvement of entertainment. Use of entertainment like sports, music and drama has put Coca-Cola at the peak of the global firms’ performance. In that regard Coca-Cola Company is one of the best choice for case study for deeper analytical information about other firms. Background information Coca-Cola Company limited is a multinational corporation which its formation dates back to 1886 when a renowned Atlanta pharmacist Dr. John Pemberton started to produce the Coca-Cola syrup in fountain drinks for sale. However meaningful entrepreneurial venture under the Coca-Cola name was taken up by Benjamin F Thomas and Joseph B Whitehead who were the first people to establish a bottling plant through acquisition of patents in 1899 from the Coca-Cola Company. This great company evolved thereafter through various phases characterized by franchising and gained market command to its current global substantial presence. Mission Statement of Coca-Cola The roadmap to success of Coca-Cola lies on its mission which is quite enduring. It do declare the purpose of the company and it serves as the standard of measure for the actions and the decisions of the company. Among these missions are: To refresh the whole world To inspire moments of happiness and optimism in the entire global community To create value to the customer and make a difference Vision of Coca-Cola Company The vision provide the framework of operations and serves as the guide to every aspect of the business by giving a sound description of what need to be accomplished in order to continue achieving a sustainable and quality growth. This will be achieved by considering different aspects which includes; To be a great place to work where people are inspired to actualize their potential Availing beverage brands that will meet and conform to the peoples’ desire and needs (Wesley, 1956: 52). Promoting a long term supplier and consumer relationships that will create mutual benefits and prosperous co-existence Uphold high standards of efficiency and productivity Attain high profit targets while considering the firm’s responsibility to the society. Winning Culture of Coca-Cola This company has established a tradition of positive attitude and behavior that will guide it in realizing its 2020 vision. This culture entails their positive values, focus on the market, working smart, acting with a sense of responsibility and manifesting the brand through action. Strengths of the company Coca-Cola has built a name and consequently brands over a long period of time and it boasts of the greatest globally publicized firm. Due to this long standing branding and superb performance, it commands a relatively lager global market through its internationally dispersed value creation and sales branches. Globalization has opened up flood gates for the multinationals and this is only advantages to companies with large asset bases like Coca-Cola. In this regard, it has dispersed its value creation activities t o different geographical locations thereby enjoying economies of production (Benssoussan & Fleisher, 2003; 45). Coca-Cola has always employed the best promotion mix where it involves the influential power of entertainment to penetrate deeper into the market. The social corporate responsibilities like sponsoring of various sports activities exemplified by Copa Coca-Cola football fiestas organized across the world further boosts its image above other competitors. Technological advancement is financially demanding and through this Coca-Cola almost experience monopoly through high set up costs to any potential entrant to the industry this has always left it to rule the world beverage market. Weaknesses In the wake of the globalization era, other competing companies like Pepsi can now find their way into the previously Coca-Cola dominated markets. It should also be noted that local upcoming beverages firms offer a substantial competition to Coca-Cola as far as cultural differences do influence. This is as a result of some wines and spirit and beer breweries divesting to other soft drinks as well that will reduce the market share of Coca-Cola. This corporation has also felt the negative side of technology where unsubstantiated rumours go around it especially in its markets in the Arab countries. Current engagements Coca-Cola has pre-dominantly been involved in various corporate responsibility engagements as observed during the 2011/2012 period. It sponsored the tour of the world cup trophy through the continents in the globe besides sponsoring a number of region and local based football tournaments. An example is the Copa Coca-Cola Cup. Future plans Coca-Cola is currently working on new products that will meet the dynamic market and marketing strategy that is set to be in place by 2015.It is also planning to come up with a new beverage vessels that is environmentally friendly in a bid to show its global corporate social responsibility. Marketing Strategy Being a multinational organization, Coke has to develop international marketing strategies aimed at capturing large market share and dominance. Coke has to listen to the changing needs of its customers worldwide. The company specializes in beverages and soft drinks and therefore has to adjust its market products to match changes in consumer tastes and preferences, and span to the occasions. The consumer demand for beverages and soft drinks is normally a reflection of relaxation, recharge and self realization (Benssoussan & Fleisher, 2003; 45). The company takes into consideration all the changing needs of the consumers globally by producing range of products, from bottled water, refreshments, juice drinks, to non-alcoholic drinks. As a company Coke is not only determined to making great drinks but also participating in corporate social responsibilities across the globally through our continued commitment and financial funding to educational, wellness, health, and diversity sectors. In doing so, the company focuses on being a good neighbor, who consistently shape and improve the living standard of the entire community in doing business. Marketing Plan Objectives The marketing objectives of Coca-Cola Company are; Changing the company’s brands to match the global branding standard and meet the dynamic market condition of every local market serves by the company. Investing in product invention and innovations Keep their customers informed about the changes in branding and new products Boosting company sales volume based on the company’s 2015 marketing plan Replacing carbonated drinks and beverages by health drinks come 2015 Increasing its market share and dominance in the soft drink and beverages industry International products standardization to compete other beverages producing companies such as Pepsi. Product Description The company focuses on introducing new products in annually aimed at meeting the changing demand of its consumers. For instance, Coke produces fruit juice to meet her customer demands. The changing product portfolio of the Coca-Cola Company through branding, packing and advertising attracts a lot of interest from new customer base. Bottling of the products is appealing to certain group of customers, hence committing their loyalty to the company brands (Wesley, 1956: 18). These improvements on the company products create the impression of concern about the company’s sensitivity to technological improvements. Features • Sports and fitness design • Use of trademark in bottling which restores customer confidence and acts as a sign of quality. • Ergonomically Designed Benefits • Coke-Cola lifestyle connotations • Health and fitness lifestyle connections • Fair-trade, sustainability, eco-friendly connections. • relatively cheaper product both in the short and long run Pricing Strategy Following stiff competition in the industry, customers are price sensitive, which further affected the volume of sales. Economically customers demonstrate price elasticity of demand for soft products. Since these products are fast moving, the company develops penetration strategy to keep their market dominance. In doing so, Coke practices price discrimination in the three domains. Penetration pricing mechanism adopted by the company implies setting lower prices for the products rather than focusing on profitability. Market dominance of Coke-Cola is attributed to its ability to practice penetration pricing. Since the major competitors are skimmers, Coke uses the alternative which works well for her. The company is not profit driven but dominance minded. Neutral pricing strategy is also used by the company during fair competition periods. Marketing Communications In the marketing plan for Coke, the company marketing department uses the following methods to communicate relevant information to their customers. Advertising: Coke popularizes its product through advertising in local media, internets, social networks, and newsletters. Personal Selling: the firm has an efficient team of personnel who make sales and build on customers relationships Direct Marketing: This method is commonly by Coke when target a specific group of potential customers and an immediate response is needed Sales Promotion: the company gives short-term incentives in form of promotions, travel tickets, and other incentives to encourage sales of the product especially during low seasons Public Relations: this through building good image of the company among the public by dealing with any rumour, unfavorable events, and through corporate social responsibility i.e. "corporate image" Market Positioning Product Range The range of standardized products of Coca-Cola Company includes Coke, Sprite, Fanta, and Diet Coke. Given income inequality among the consumers, the company packs her products in different sizes to make them affordable to every potential consumer. Among the common bottle sizes are; LRB (litter returnable bottle) SSRB (standers size returnable bottle) NRB (no return bottle) PET 1.5 (1.5 litre plastic bottle) CANS (330 ml) Facilitating Production by Infrastructure In order to promote their products, the company has embarked on Infrastructural service provision to her customers to help in keeping the products cool, safe and in good condition to meet the consumer needs (Pendergrast, 1993: 52). Some of these infrastructures are; Vizi cooler  Display racks Freezers Bottle shells and free empty bottles Sales Promotional Activities Coca-Cola Cricket and sponsorship Coca-Cola Concerts through media Coca-Cola Food Mela Coca-Cola Basant Festival Coca-Cola GO-RED Coca-Cola Party in a Park Coca-Cola Shopping Festival Coca-Cola Ramzan Campaign Conclusion Having conducted thorough research, it noted that Coke Company is increasing their popularity and market dominance over other competitors. The marketing department strategies are being successful in demonstrating the ability to grow and even expand. The management of the company should focus on building strong customers loyalty. Recommendations The company should consider increasing their infrastructural facilities to facilitate its marketability The company should focus on expanding its capital base by raising more capital through listing of its shares in the IPO The local demand factors for different countries should be taken care of The marketing group should capture the marginalized customers such as the older generation The company should reduce the cost of its operations through effective and accountable administration Bibliography Ackerman, F. & Eden, C. 1998. Making Strategy: The Journey of Strategic Management. SAGE Publications, UK. Ahlstrand, B., Lampel, J. & Mintzberg, H. 1998. Strategy Safari: The Complete Guide through the Wilds of Strategic Management. Pearson Education; London. Benssoussan, B.E. & Fleisher, C.S. 2003. Strategic and Competitive Analysis: Methods and Techniques for Analyzing Business Competition. Pearson Education; London. Bowdin G et al. 2001. Events Management. Butterworth Heinemann. Frey, Albert Wesley. 1956. The effective marketing mix; programming for optimum results. Hanover, N.H.: Amos Tuck School of Business Administration. Germain, D. 2009. A Book about Innocent: Our Story and Some Things Weve Learned. Michael Joseph; New York. Getz, D. , 1997.Event Management and Event Tourism. Cognizant Communication Corporation. Hales, C. 2001. Managing Through Organization: The Management Process, Forms of Organization and the Work of Managers. Routledge; New York. Jaffee, D. 2008. Organization Theory; Tension & Change. McGraw-Hill: New York. Simmons, J. 2008. Innocent: Building a brand from nothing but fruit. Marshall Cavendish; London. Pendergrast, Mark. 1993. For God, country, and Coca-Cola: the unauthorized history of the great American soft drink and the company that makes it. Sage: New York. Stacey, R.D. 2003. Strategic Management & Organizational Dynamics:The Challenge of Complexity. Pearson Education; New York. Thompson & Strick. 1998. Strategic Management: Concepts and Cases. McGraw-Hill: New York. Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(Events Strategy Case Study Example | Topics and Well Written Essays - 1750 words, n.d.)
Events Strategy Case Study Example | Topics and Well Written Essays - 1750 words. https://studentshare.org/business/1774502-events-strategy
(Events Strategy Case Study Example | Topics and Well Written Essays - 1750 Words)
Events Strategy Case Study Example | Topics and Well Written Essays - 1750 Words. https://studentshare.org/business/1774502-events-strategy.
“Events Strategy Case Study Example | Topics and Well Written Essays - 1750 Words”. https://studentshare.org/business/1774502-events-strategy.
  • Cited: 0 times

CHECK THESE SAMPLES OF The Fundamental Business Success of Coca Cola Company

Business Function and Processes. (Coca Cola Company)

(coca cola company).... coca cola company will likely operate at a loss because it is investing the new drink that is bringing in minimal sales.... Sustainability When coca cola is introducing a new product into the market, it means challenges and opportunities.... This new drink can pass through this life cycle stage commonly referred to as “kick them back” with much ease since coca cola is a large, well-known company and has many means of advertising a new product....
16 Pages (4000 words) Research Paper

Internal and External Environment of Coca-Cola Company

Coca-cola company is a company that produces and sells soft drinks to its customers.... It involves the production of syrup concentrates that it packs and later on sells to the franchised bottling plants such as the coca cola enterprises.... The stocks of the company are listed in the New York Stock Exchange .... he company is rated as one of the largest companies in United States of America.... he mission of the company has been that of refreshing the body, mind and spirit; to inspire the moments of optimisms through the brands and actions of the employees and also to create value through making a difference whenever the persons are involved in their business activities....
13 Pages (3250 words) Essay

International Business of Coca Cola Company

This paper explores the coca cola company doing business internationally and identifies a few significant issues related to its international operations.... For numerous reasons, the coca cola company holds the belief that it will maintain its international growth.... Until the 1980s, coca cola's business strategy could be summed up as one of substantial localization as seen in its local operations with high levels of independence.... nbsp;  Currently, coca cola faces competition from other soft drink producers that is not all that substantial but the threat from substitute products is growing....
13 Pages (3250 words) Term Paper

Operations Management: Coca-Cola Company

This paper discusses the strategies and plans of the Coca-cola company to ensure the future of the business remains successful.... The company commands a great and vast market of beverage drinkers all worldwide with many people preferring its products because they are affordable Besides the five major diverse brands that the company is widely known for, it has over 500 brands in all the states.... The administration is the core aspect in keeping the company in check and ensuring they meet its set goals in all the company's endeavors The company has a customer care service that is open and available for all users on a 24-hour basis....
8 Pages (2000 words) Term Paper

Business Analysis of Coca-Cola Company

hellip; The Coca-cola company has gained a reputation as one of the largest companies that engage in the production and retailing of nonalcoholic drinks globally.... While three parts of potters models concern rivalry effects that are felt from the outside, all parts of the model offer a considerable impact on the company thus Coca-cola company is not exclusive.... An illustration of the effects of potter's five forces model to the Coca-cola company is as shown....
10 Pages (2500 words) Case Study

Foundations of Marketing Theory: Marketing Analysis of Coca Cola

The author states that the Coca-cola company uses storytelling marketing as a part of their marketing activities.... nbsp;… coca cola has been able to correctly prove the importance of providing customers with a strong story which attracts the customers to the brand and increases brand awareness immensely.... coca cola has been one of the oldest storytelling efforts at branding and marketing and can clearly be considered to be the most successful attempt....
12 Pages (3000 words) Term Paper

The Coca-Cola Company: An Analysis of Fundamental Marketing Techniques

The "The Coca-cola company: An Analysis of Fundamental Marketing Techniques" paper examines how the Coca-cola company has continued to effectively employ essential marketing techniques that have given them the ability to overcome marketing challenges since the birth of the famous soft drink.... The Coca-cola company, famous for its trademark soft drink Coke, is the epitome, not only of the process of the successful launch of a product but more importantly, of the lasting success a corporation can have by efficiently employing fundamental marketing strategies....
7 Pages (1750 words) Case Study

Coca Cola Marketing Strategies

From this work, it is clear about the marketing mix and its strategies for the international market, and whether the strategies of coca cola are appropriate or not.... Today, Diet Coke/Coca-Cola light is one of the biggest and best brands of The Coca-cola company, accessible in excess of 150 business sectors far and wide (Galician, 2004).... In the augmentations, Coca-Cola Vietnam has kept doing exploration and creating more products to serve Vietnamese shoppers:Coca-cola company recognized that Vietnam is a various market, so Coca-Cola has situated its products into the adolescent section (with advanced style, energy, and eagerness)....
8 Pages (2000 words) Report
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us