Macro Economic Analysis of Coca Cola

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Thursday, December 30, 2010
Research Paper on Coca Cola
Research Paper on Coca Cola Company
Introduction
The Coca-Cola Company Limited is the world's largest beverage company and is the leading producer and marketer of soft drinks. Due to the facing of highly competition in the market, the Company used more than million dollars in the R& D, marketing and production, in order to design a new product to gain a higher margin. This report is mainly focusing on how Coca-Cola Company Limited uses strategies in order to competitive in the mature market. Firstly, the issues of the Company will be identified, and then SWOT analysis of the company will be conducted. After that, evaluation of alternative strategies will be stated and finally recommendations and implementation will be given.

Background
Coca-Cola Company Limited is the world largest offerer of non-alcoholic beverages and the most valuable firm in the world. They owned over 300 brands in over 200 countries and serving carbonated soft drink and non-carbonated beverages such as fruit juice, fruit drink, sports drinks, coffees and bottled water. Coca-Cola Co. is operating in their existing brands, and also develops new global and local brands and acquisition of the global or local brands.

In 2002, the company has launched new brand product including Diet Lemon Coke, Vanilla Coke and large varieties of fruit taste Fanta including lime, grape, strawberry and passion fruit in Australia. The company has also acquired many new international water brands such as Danone Waters, Sparklettes, Alhambra and Evian brands in US. They also continued collaboration with the Walt Disney Company to market children's soft drinks.

Coca-Cola Company Limited has invested a huge amount in marketing campaign to support their brands. The aims for these campaigns are to enhance the consumer awareness and consumer preference for a certain brand. As a result, Coca-Cola Co. has maintained a long-term growth in profitable volume and large market share in the worldwide non-alcoholic beverage market.

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Problem or Issue Identification
The non-alcoholic carbonated or non-carbonated drinks have reached the mature market; Coca-Cola Co. has to develop strategies in order to remain in the strong competitive market.

Situation Analysis
Strength
- Global Soft drink industry leader: Coca-Cola Co. is the world largest bottler. Products sell throughout the world. It generates $870 million sales in Australia last year. According to the Business Week Magazine, Coca Cola was listed at NO.1 in the world's 100 most valuable brand in terms of their intangible assets (Business Week Magazine, 2003).

- Brand recognition - Strong brand name over worldwide and leader in the soft drink industry. Its brand new is well known in 90% of the world (Allen, 1995).

- Large varieties of product: Besides the carbonated soft drink, Coca Cola Co. has provided other range of beverages such as water, fruit juices and sport drinks to satisfy different customer's needs. However, different countries customer may have different preferences, Coca Cola has positioned as a worldwide brand but it has different strategies for each market.

- Highly distribution: their products are largely distribute in everywhere, customers in over 200 countries can enjoy the Coca Cola product and consumer 1 billion sales unit globally (PR Newswire, 2003). People could buy the product in supermarket, convenience store, vending machines, food court, fast food...
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