Coca-Cola Co. (a) Case 1-3

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Key Marketing Problem / Opportunity

E. Neville Isdell Coca-Cola Co.’s new CEO discovered firsthand about the struggle of Coca-Cola’s growth declines after his first 100 days in office. Coca-Cola’s inability to adapt to consumer demands, lack of lust marketing, battles with bottlers and little progress gave Pepsi an opportunity to create an impressive portfolio strategy that allowed them to be the second largest revenue generator. Isdell wants to turn Coca-Cola around and create sustainable profit and growth for Coca-Cola.

Strategic Question:

Which corporate growth strategy would offer the BEST opportunity to improve sales in the future for the Coca-Cola Company? Strategic Marketing Alternatives

1.Market Coca-Cola beverages to current market by implementing a market penetration strategy. By adjusting the marketing mix Coca-Cola could see an improvement in sales and profits. Coca-Cola should dedicate more resources to marketing and advertising highlighting the difference between Coke and Pepsi. Similar to the “I am a Mac and I am a PC” program.

2.Coca-Cola could implement a forward integration strategy which will allow Coca-Cola to gain better control. Coca-Cola could acquire bottler companies since the relationships between bottlers and Coca-Cola is strained. If Coca-Cola acquires bottlers they will be less dependent on bottlers. This could increase profit and lower costs.

3.Coca-Cola could implement a horizontal diversification strategy by acquiring a beverage company such as Red Bull or Dr.Pepper Snapple Group. This will allow Coca-Cola to grow and increase market share.

Recommended Strategy

I recommend Alternative #1 that Coca-Cola first adjust the marketing mix by restoring and increasing funds dedicated to marketing and advertising to increase brand differentiate awareness.

Differentiating Coca-Cola against Pepsi (similar to the “I am a Mac and I am a PC” strategy) will help create awareness and brand loyalty. Allocating...
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