Analyze the Market for Coca-Cola

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Foundations of Economics for Business and Management
Analyze the market for Coca-Cola
04.12.2010

Coca-Cola is perhaps the most popular and well known soft drink worldwide. Almost 98% of people worldwide know the word Coca-Cola and it is available in more than 190 countries. Coca-Cola belongs to the Coca-Cola Company and is only one of the 400 non-alcoholic brands that this company owns. The Coca-Cola Company is one of the largest corporations in the world, with a global workforce of 90,000 and revenues of $31 billion (in 2009). In this analysis I will go into details about the product Coca-Cola, its special characteristics, competition- and position in the market, the role of government, its success and finally give a future insight how this market could possibly develop.

The logo, red background with a rolling white script which says Coca-Cola, was invented in 1886 and has remained unchanged. Remarkable is also the design of the Coca-Cola bottle, which was invented in 1916. The design of the bottle became a registered trademark in the USA in 1960. This is a special characteristic because it gives Coca-Cola a unique look. Coca-Cola is a beverage that can be drink at any time and at any place because it is made for the mass.

In order to control the market, the Coca-Cola Company itself produces only a concentration. Then it grants licenses (also called concessions) to independent entrepreneur (bottling partners), who then manufacture, package, merchandise and distribute the final branded beverages to customers and vending partners, who then sell the products to consumers. The Coca-Cola Company owns all rights for its brands.

The Coca-Cola Company finances itself only through revenues of the sale of the concentration. The aim of the Coca-Cola Company is to provide a drink for everybody worldwide. A drink that is available at any time, is homogenous in quality, taste and packaging. A further aim is to develop their brand, create value and to explore new markets. To make sure that Coca-Cola, as a beverage is available to everybody, the Coca-Cola Company keeps the price down so that everybody can afford it. This product is made for the mass-market. Coca-Cola is not an essential beverage; it is more like a cheap luxury-beverage. The first advertisement for Coca-Cola was in 1886, followed by a constantly elaborated marketing strategy, which Asa Candler, the business owner of the Coca-Cola Company followed. Coca-Cola should not only be known in Atlanta but also in other States of the United States and also in other countries. The Coca-Cola expansion to Europe began in the 1920s and the first country where Coca-Cola was available was Germany. Until this date, Coca-Cola was only available in the United States and Canada.

The marketing department of Coca-Cola first concentrated on standardization of the quality and packaging. There were many bottling partners, so standardization was necessary to promote Coca-Cola. Therefore it should have the same quality and packaging in every country. In 1933 the process to automatically mix Coca-Cola was invented. That was the biggest success in the standardization of Coca-Cola. Soon Coca-Cola was mobile and available at petrol stations, cinemas and amusement parks. The recipe of Coca-Cola was changed in 1903 but since they effectively maintain their market position with the help of this secret blend, it has remained almost the same. Until today the ingredients of Coca-Cola are unknown. To make sure that no one will ever find out what the secret of the Coca-Cola taste is, all books about the Coca-Cola recipe were burned in 1910. The press had major interests to find out the secret about Coca-Cola and its success. The marketing department of Coca-Cola realized that and used this fact to promote their drink. Coca-Cola grew up in a century where marketing had its debut and the marketing department of Coca-Cola used every possible way for...
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