Cola Wars Continues - Solutions

Only available on StudyMode
  • Download(s) : 266
  • Published : February 28, 2011
Open Document
Text Preview
Alternative solutions:

1. Coca Cola can start using healthy sweeteners like Stevia, Agava juice or honey. There is a growing trend of getting closer to nature all around the world. This is in accordance with lifestyle strategy: “Cola is good for you and makes you feel better”. This would make people realize that company cares about their health and way of living. Advantages:

* trend of healthy living
* lower price sensitivity of the market for healthy or bio food * relatively low investment needs
Disadvantages:
* Need for establishing connections with suppliers and checking their quality

2. Higher level of geographical expansion, with special focus on fast growing markets in Asia Pacific. Consumption of CSD in China is 22, India 6 and USA 874 (8 oz per capita). These figures tell us that there is a lot of potential in these markets. TO achieve that Cola/Pepsi would have to invest more in marketing activities and intensify offshore of production in these countries. Crisis did not hit all the world, but mostly Europe and USA. Advantages:

* market with high potential of development
* rising buying power of potential customers
Disadvantages:
* investment in production lines
* different laws in foreign countries
* lack of needed infrastructure in some of the countries

3. Green Strategy that can include building of environmentally friendly factories, recycle of the bottles, water cleaning systems,....creates a positive attitude towards a brand. The green companies will have always bigger importance to the consumers, especially in Europe, but soon in the whole world. Advantages:

* positive effect on the customer loyalty
* following eco trend
* saving in production and distribution process
Disadvantages:
* initially higher investments, but they would pay back in the future

4. Taking in concession the natural water springs instead of using water created by inversed osmosis. It is a matter...
tracking img