The Coca-Cola Company is the largest manufacturer, distributor and marketer of nonalcoholic beverage concentrates and syrups in the world. Coca Cola products bearing the company’s trademark are now being sold in 200 countries around the world. The business of Coca Cola is nonalcoholic beverages – principally sparking beverages, but also a variety of still beverages. The company owns or licence more than 450 brands, including diet and light beverages, waters, enhanced waters, juices and juice drinks, teas, coffees, and energy and sports drinks.
Innovation Focus – Product Innovation
Innovation according to Trott (2008) is about mobilizing knowledge and technological skills and experience to create novelty in an organisation’s offerings and the ways in which it creates and deliver those offerings. The process of generating knowledge is creativity. Improvement involves the use of technology, techniques, strategies, and experiences in order to come up with a better product, service, or system.
Product innovation is an important business process. It aids in sustaining growth and is a possible source of competitive advantage. According to Patterson and Fenoglio (1999) new products and services are the lifeblood of an enterprise that fuels business growth. Product innovation is a critical business process that drives growth in both revenues and profits (p. 13). Product innovation is an essential strategic approach for creating competitive advantages in the dynamic, global business environment. Globalisation and the changes in social, political, economic, and technological arenas topped with turbulent market conditions have resulted in shorter product life cycles. These changes also created demands for better, cheaper, cleaner, safer and more effective products. The process of product innovation is about the development of new solutions that provide positive benefits to customers and stakeholders. Product innovation according to Rainey (2005) is the fundamental management practice used for creating new products, reinvigorating existing products and solving product-related difficulties with customers and stakeholders.
Product innovation is a core process within an organisation associated with renewal – with refreshing what it offers and how it creates and delivers that offering. Innovation is essential in sustaining the prosperity of most organisations. Innovation is the prescription for reinvigorating the organisation to compete more successfully in a demanding world (Tidd et al 2001). Product Innovation concentrates on improving the strategic position and product delivery capabilities of the organisation through creativity and leadership. Product innovation includes several essential aspects:
1. Examining the needs for new products, processes, and services
2. Determining the appropriate direction and for new products
3. Establishing the appropriate game plan of the entire management system for developing and commercialising new products
4. Selecting new-product opportunities for investment
5. Enhancing the organisational capabilities to create successful new products
6. Creating the new product and executing the new-product development program
The primary objectives of product innovation are to create value, to obtain a competitive advantage, and to achieve long-term success through the development and commercialisation of new products and services (Sundbo and Fuglsang 2002).
Coca Cola is a company with rich history and tradition that has build an iconic brand. The company prides itself with being a leading innovator in the soft drinks industry and being able to turn customer demands to products. Being in step with customer trends and being able to anticipate what lies ahead as well as marketing innovation has always been a hallmark of The Coca Cola Company, helping the brand evolve...