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Written Assignment #1
[Name of the Student]
[Course Title: Course Code]
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Written Assignment #1
Factual Information
Student Name:
Company Name: “Coca-Cola Co” or “The Coca-Cola Company”
Industry:
Firm’s Primary Industry: Wholesale Trade
Standard Industrial Classification (SIC) Code: 5149 (“Groceries and Related Products, Not Elsewhere Classified”)
NAICS Code: 424490 (“Other Grocery and Related Products Merchant Wholesalers”)
Market:
Primary Stock Market: “New York Stock Exchange” (NYSE)
Symbol: NYSE: KO
Revenue: $33.558 Billion for the year 2019
Company Profile
The Coca-Cola Company is considered as the no. 1 company in the world selling non-alcoholic beverages. It is world’s one of the best-selling and most well-known brands. It sells more than five hundred beverage brands. The beverages include soft drinks, cold coffees, ice-teas, dairy-based beverages, plant-based beverages, energy drinks, and juice drinks. It has expanded its distribution of products in more than two hundred countries.
Geographically, North America is the largest market for the company's products, accounting for about thirty-five percent of revenues generated worldwide. The EMEA (Europe, the Middle East, and Africa) brings in twenty-five percent of revenues, Asia-Pacific fifteen percent, and Latin America ten percent. The Coca-Cola Company reaches its customers worldwide through the largest distribution system of beverages (Baah & Bohaker, 2015). The system comprises bottling and distribution operations that are either company-owned or controlled by the company. Independently owned retailers, wholesalers, distributors, and bottling partners are also part of the company’s distribution system.
The company spends a large amount of money on marketing campaigns to position its brand as the first buying option in the customers’ minds. Estimates reveal that the company spends more than four billion dollars a year on marketing and promotion activities. Sales and Revenues have experienced a little decrease in recent years due to customers’ changing trends. Trends regarding the soft-drink industry have been changing due to the changes occurring in the preferences of customers (Abbasi, 2017). People have other options these days to quench their thirst, and that is the reason the company has started investing in new ventures and in creating new products for the customers.
Vision & Mission
The Coca-Cola Company's vision and mission are coherent with each other; both cater to the customers' needs so that they may cheer their moments of happiness and optimism. The company intends to bring its customers a variety of beverages that quench their thirst and satisfy their needs and wants. The company runs its business to create value for all its stakeholders that include customers, suppliers, employees, shareholders, and the communities in which it operates. The company aspires to refresh the world with its products and make a difference in the field of soft drinks and refreshing beverages.
Competitors
The company’s major competitors include PepsiCo, Dr Pepper Snapple, Red Bull, Nestle, etc. PepsiCo is the strongest competitor of the company with one of the largest distribution networks in the world (Ling, 2017).
Customer Segments
The Coca-Cola Company has the maximum reach to its customers as compared to its competitors, its target market is also the greatest among the companies falling in its particular industry. It employs a multi-segment targeting strategy, depending upon the types of products it offers to the customers. Further, the company's segmenting strategies are diversified based on geographic, demographic, and psychographic characteristics of customers. For instance, Oasis is a brand of the company that is relatively more popular in the UK. For customers of low-income per capita countries, the company offers products in returnable glass bottles, and for high-income per capita countries, the products come in disposable high-quality packaging. Fanta is more likely to be targeted at female customers. Minute-Maid is preferred by those who are health conscious.
Key Products
The company's major product is the concentrated syrup that it produces to be used by bottlers in making the finished soft-drink products. The concentrate is the basic product that contains the formula specific to each brand of the company (Baah & Bohaker, 2015). For instance, the syrup of ‘Coca-Cola’ drink is produced by the company and distributed to the company-owned, company-controlled or independent bottling companies that further process the bottling and produce finished brand of 'Coca-Cola'. The soft drinks that remain the key products of the company other than the Coca-Cola beverage include Diet-Coke, Fanta, Sprite, etc.
Success to Date
The Coca-Cola brand is the world’s top brand the estimated worth of which equals more than thirty billion US Dollars. The company’s net revenues are increasing at a fast pace of 0.67 percent every year. Since its foundation in the late nineteenth century, the company has shown growth in all of the coming decades, maintaining its leading position as the nonalcoholic beverage producer in the world (Renz & Vogel, 2016). The brand holds no. 3 position among the best global brands all over during several consecutive years recently.
Confronting Issues
Among the hot issues confronted by the company is sustainability and the company is taking effective measures regarding the issue. Recycling of the used packaging whether it is in the form of cans or bottles, the company needs to find an appropriate solution in this regard (Beasley & D Scott Showalter CPA, 2015). The company has made contracts with other companies that are involved in removing wastes from the oceans and cities. They will together make efforts to reduce the waste products. The Coca-Cola Company should focus their efforts on developing certain types of packaging that use easily recyclable raw materials so that the used packaging bottles or cans could be recycled and utilized in the production of new packaging materials. The company is also taking necessary steps to reduce the emission of carbon by-products during the manufacturing processes, to reduce environmental pollution. Other issues facing by the company include consumers’ increased consciousness about the sugary drinks, hygiene of water supplies needed for producing beverages, etc. (Whelan & Fink, 2016)
References
Abbasi, H. (2017). Marketing Strategies of Coke: An Overview. Kaav International Journal of Economics, Commerce & Business Management, 4, 194–199.
Baah, S., & Bohaker, L. (2015). The Coca-Cola Company. Culture, 16, 17.
Beasley, M. S., & D Scott Showalter CPA, C. (2015). Ermand Sustainability: Together On the Road Ahead. Strategic Finance, 96(9), 32.
Ling, X. (2017). Customer Relationship Management: Case study Coca-Cola Company.
Renz, F., & Vogel, J. (2016). Analysis of the Coca-Cola Company.
Whelan, T., & Fink, C. (2016). The comprehensive business case for sustainability. Harvard Business Review, 21, 2012.
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