1. General Information on Coca Cola
1.1 Description of Coca-Cola Co. and its history
Coca-Cola started as a cure for the addiction to morphine. After Colonel John Pemberton was injured in war and addicted to morphine, he looked into ways to find a cure for the addiction and finally in 1886, the first non-alcoholic version of a French Coco Wine called Coca-Cola was made. Today the Coca-Cola Company is a conglomerate focused on beverage manufacture, retail and marketing. It produces non-alcoholic concentrates and syrups and is headquartered in Atlanta, Georgia (Bell, 2004). Today the company manufactures over 500 refreshments in more than 200 countries or territories with an estimated 1.7billion servings per day. The turnover (net operating revenue) for Coca-Cola Co. was USD 35.119 Billion in 2010; bringing the company far from its roots as a small pharmacy outfit.
1.2 Background information about Coca-Cola
Coca-Cola (Coke) is the main product of Coca-Cola Co. constituting nearly 78% of the sales revenue by volume. It was the initial product sold by the company when it incorporated in 1892 under Asa Griggs Candler. In earlier production, due to lax FDA rules, Coke contained cocaine in addition to the caffeine found in it. To combat caffeine addiction Coca-Cola Company increased the Coke range of products and offered a caffeine free variant in 1983 (Teece, 1986). Ever since then, the Coke lineup has expanded to include Cherry Coke, Vanilla Coke, Lemon Coke, Diet Coke, etc. The drink itself had risen to fame near its 50th anniversary. During the outbreak of war, Coca-Cola was the drink sent to the American and Allied soldiers, and at times small bottling plants were set-up to manufacture Coke for the troops stationed in the region. This gave Coke much needed publicity, making it an iconic brand in USA.
1.3 Coca Cola's Target customers
Coca-Cola takes every thirst quenching person as a potential target market. Though all age groups are being targeted, the main potential lies between the ages of 18-25, which covers around 40% of the market share. Coca-Cola’s overall target market is towards the youth, its range varies from the age of 12-40+. Coca-Cola does not only target based on age, but also on other roles such as gender, with 58% of the market being female and 42% being male. Other market segments that Coca-Cola has penetrated include customers who are living the fast paced life, dependant on their family, who are either students or family oriented people, fun loving in nature and, belong to the middle to bourgeois class.
2. Marketing Environment
2.1 An analysis of three environmental factors that affect the business of Coca Cola
All organizations must always be cautious when analysing the environmental factors that probably could make an affect to their marketing both domestically and globally. Coca-Cola's company and subsidiaries have many environmental factors that may possibly affect their domestic and global marketing decisions. These factors are comprising the organization’s external environment and are split into three different categories of industry environment, remote environment and operational environment (Mentzer, 2001). Companies display their weaknesses and strengths in an effort to focus on the opportunities shown in these external environments. Factors that may affect the decisions includes, interdependence on global economic, along with trades and demographics, agreements and their importance on top of cultural differences, physical infrastructure, ethics vs. legal obligations, social responsibilities, international relations, political systems, and technology when analysing the influences of the (FCPA) Foreign Corrupt Practices Act also as for the local, international, and national legislation. Have a successful marketing business and plan, the most important thing is that the company or organization must always look into how these factors...
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