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0 Executive Summary
Coca Cola Company is a fast-moving consumer good products company in the
world. The Coca Cola Company already markets in more than 200 countries worldwide,
it very successfully among the distributor and manufacturer of non-alcoholic beverages.
The SWOT analysis of Coca Cola Company, which is strength, weakness, opportunity,
and threats are determined to make them become the largest winner in the market for all
the time. The strength of Coca Cola Company is popularity, customer loyalty and
fantastic marketing and advertising strategies. Coca Cola companies must maintain their
strength and make them become stronger in the market. Besides, absence in hot
beverages, negative publicity and significant focus on carbonated drinks are the weakness
of Coca Cola. So, they must change their weakness immediately and the weakness will
slowly disappear. Then, an opportunity that Coca Cola is growing beverage consumption
in emerging markets, market the lesser products and growth of acquisitions, The
employee must grab the opportunity to make Coca Cola become more successful in the
market. The threat of Coca Cola faced is the issue of health, the competitor in the market
and the legal issue. Coca Cola must use several effective methods to handle the threat
which they faced. Finally, Coca Cola Company applies the marketing ideas such as hold
the campaign, keep closer communication with their customer with newest technologies
and use a seasonal special method on its products to make sure that they can face the
challenges toward the competitors in the markets.
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2.0 Overview
Background of Coca-Cola Company
On 1886 May, Coca-Cola was invented by Doctor John Pemberton. He was a
pharmacist from Atlanta, and named by Frank Robinson, and he was the bookkeeper of
John Pemberton. And the logo of the Coca-Cola also created by him and become the
famous logo until today. The first Coca-Cola soft drink was sold at the soda fountain in
Jacob;s Pharmacy in Atlanta on May 8, 1886. The sales in the first year only $50 and the
cost were $70, so the sales of first years were a loss. In 1887, Asa Candler another
pharmacist and businessman were bought the formula of Coca-Cola from John
Pemberton for $2300. After buying the formula of Coca-Cola, Asa Candler had
developed the Coca-Cola became a popular soft drink in America. And now, the CocaCola Company is investing in more than 200 countries, one of the largest companies in
the world.
Target Market/Consumers of Coca-Cola Company
The Coca-Cola Company does not target for a specific group, but the mainly
consumers are come teenagers, which the age between 12-30 years old people. But the
consumers out of this range are also purchasing the product from the partner of CocaCola Company like the McDonalds, restaurant, fast food and so on. Although there is no
an occupation target, but most of the consumers are coming from the student and family
when they are eating. And the Coca-Cola is considering that each of the age groups is
also the target of them, but the most potential age group is 18-25. Between the male and
female, both genders are show a 50-50 percent of the sales and prove that both genders
are also loving the Coca-Cola.
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Lastly, Coca Cola has fantastic marketing and advertising strategies. Coca cola
unlike Pepsi always tries to win the peoples heart. Where Pepsis target is continually
changing, and is targeted towards youngsters, Coca Cola targets people of all ages. The
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targeting is also done by celebrities who are well liked. For example: Amitabh Bacchan,
Sachin Tendulkar, Aishwarya Rai, Aamir Khan etc. Coca Cola Company advertising
expenses accounted for more than $3 billion in 2012 and this can increased firms sales
and brand recognition.
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Weaknesses
Weaknesses are the internal factors that place the business or project at a
disadvantage relative to others. The weaknesses can be outdated technologies,
insufficient marketing budget and low reputation.
The first weakness is the absence in health beverages. People nowadays are so
concerned about having a healthy lifestyle. Food and drinks people consumed nowadays
are all in low oil, low sugar, and low calories. Due to the programs which fight obesity
recently, the demand for junk food and carbonated drinks is decreasing and this may
place the Coca Cola company in disadvantage. Unlike Pepsi company, they had
introduced fruit juices such as Tropicana, which high in nutrition and highly demanded in
the market. Thus, absence in health beverages can bring many disadvantages to Coca
Cola company.
Next, negative publicity is also one of the weaknesses of Coca Cola. There are many
news recently which stated that the products of Coca Cola company contain the
substances which are harmful to human health. Some of these are artificial
sweeteners which can cause weight gain, disruption of sleep patterns, sexual dysfunction,
increases in cancer, diabetes, and epidemic degenerative diseases. Besides, there are
many campaigns to fight against carbonated drinks and the products of Coca Cola are in
the list. This may lead to a fall in demand of the products of Coca Cola company and they
may suffer a loss.
The last weakness is the significant focus on carbonated drinks. The coca Cola
company company is still focusing on selling carbonated drinks such as Coke, Fanta and
Sprite. This strategy may work in the short term as consumption of carbonated drinks will
rise in emerging economies, but it will prove weak because the world is fighting obesity
and the people nowadays are consuming healthier food and beverages.
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Opportunities
Opportunities are defined as the external element that the project could exploit to its
advantage. It can be marketed segment analysis, industry and competition analysis,
impact of technology on organization, product analysis, governmental impacts and other
external matters.
Secondly, Coca Cola can market the lesser selling products. There are several
products such as Sprite and Fanta are not having acceptance in the market. Thus, Coca
Cola needs to put more effort and attention on marketing these products too. Although it
may take some time and Coca Cola has to make several expenses to make these products
become popular, but if view in the long run, these less selling products can help the
revenue of Coca Cola if the marketing and subsequent of these products rise in the future.
Lastly, the last opportunity is the growth of acquisitions. This opportunity is barely
present in the world of business. However, with Coca Cola companys current power and
success, this task is possible for it. The Coca Cola Company may find it difficult to keep
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current growth levels and will find it hard to penetrate new markets with its existing
product portfolio. But all this can be done easily through acquiring other companies. By
buying other companies, all their profit will turn into Coca Cola Companys profit and
this will give them a large profit in the long run.
Threats
Every company in the world must be has some problem or weakness, even that
company is a strong company, due to the reason of weakness, there will force lead the
company faces some threats from the external factor. And these threats will definitely
affect the companys strategy, planning, operation, profit and other. So now, let us to view
some of the threats that faced by the largest carbonated beverage company which is
Coco-Cola Company.
The first threat that Coca-Cola faced is the issue of health. Nowadays, most of
the consumers are caring the healthy, even the Coca-Cola is very tasty, but the consumers
are more concerned the sugar absorb in each day. And the ingredient of Coca-Cola
consists of high sugar. So, many consumers will think twice before purchasing the CocaCola. Another news relates to the Coca-Cola, a research show that the major problem of
obesity is coming from carbonated beverages, this issue become the largest challenging
of the Coca-Cola Company. These phenomena have already affected the sales and profit
of the company. For solving this problem, the company need to invest more money in the
research and development to create the new products that is more healthy, for example
the Diet Coke, this product are created by Coca-Cola Company and this product are
totally free sugar. In this case, we can see that the health is becoming a major
consideration before consumers purchasing the products and this also the biggest problem
or a threat that faced by the Coca-Cola Company.
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Firstly, Coca Cola Company can hold the campaign around the country to promote
their products. They can make a lucky drawing competition for their customers by buying
their products. Customers can stand a chance to win a great prizes by only buying their
products. This not only can make a profit for the company, but also can introduce the less
popular products to the customers. It also can increase the sales and profit for the Coca
Cola company.
Besides that, Coca Cola Company can keep closer communication with their
customers with new technologies like mobile apps. Technologies are advancing and
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people nowadays oftenly use their headphones to undergo daily operations. By using
mobile apps, Coca Cola Company can have an easier platform to communicate with
customers and even can advertise through it. Customers can receive the latest news about
Coca Cola through the mobile apps from time to time and wont outdated about the latest
information or products of Coca Cola company.
Lastly, Coca Cola Company can use a seasonal special method on its products. For
example, Coca Cola Company can promote different products according to the 4 seasons,
school holiday or festivals like Halloween. Customers can experience different kinds of
products in different period so they will not feel bored by just buying one type of product.
This kind of promotion can attract more customers than just selling some common
products.
5.0 Conclusion
In conclusion, Coca Cola is the fast-moving consumer products company in the
world. It also is a truly global company with the presence in more than 200 countries
worldwide. Coca Cola companys biggest competitive strength comes from their strong
brand that they has been developed over 125 years of consistent marketing efforts. The
network with distributors and suppliers and economies of scale make them to become
successful in the world.
Coca Cola has grown to become the best known and most loved products
throughout the world. Today the Coca Cola company still continues to innovate,
improvement in existing products, creating new products or new ideas, modernization of
production processes, new flavor and new packages to satisfy the consumer need in the
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markets. Coca Cola hold many types of campaign all around the country with the main
objective to promote their products. So, consumers will buy their products through the
campaign and many new customers will attract them to buy Coca Cola and make the
sales and profits of Coca Cola company increase within a short time. Nowadays,
consumers are more focus in the healthy lifestyle. This cause Coca Cola also focus on
maintaining customers' health and their products convenient and health drink such as
Coca Cola, Diet and Coca Cola Zero to suitable any level of customers. Coca Cola, Diet
more suitable for those who health conscious, but still love the cokes great taste because
it is sugarless.
In the assignment, we have learned that our strength must be maintaining it and
better improve it. Coca Cola has used many effective methods to maintain and also
increasing their customer loyalty in the markets. Then, we also have learned that
weakness must solve it immediately. Coca Cola had tried many methods to solve their
weakness such as an absence in hot beverages and negative publicity. Besides that, we
also learned that opportunity we must grab it immediately in any situation. Coca Cola had
used several effective methods to grab the opportunity such as growing beverage
consumption in emerging markets, market the lesser selling products and growth of
acquisitions. We also learned that we must solve the threat immediately because it will
cause difficulty to us. Coca Cola have faced issues of health, so they invest more money
in the research and development to create the new products that are healthier, for example
the Coca Cola Diet that totally free sugar. If this threat not solve, will affect their sales
and profits.
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Reference
Bellis,M. (2014). The History of Coca Cola. Retrieved November 4,2015, from
http://inventors.about.com/od/cstartinventions/a/coca_cola.htm
vendredi (2012, November 16). Coca Cola targeting and positioning. Retrieved
November 4, 2014, from http://softdrinkcolawar.blogspot.com/2012/12/coca-colatargeting-and-positioning.html
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Coca Cola (Feb 15, 2013). SWOT analysis of Coca Cola. Retrieved November 2, 2014,
from http://www.strategicmanagementinsight.com/swot-analyses/coca-cola-swotanalysis.html.
Coca Cola (Dec 6, 2013). Coca Cola Analysis Retrieved November 3, 2014, from
http://coca-cola-remodel.tripod.com/id21.html.
A Case Study of Google Recruiting. (2005). Retrieved 1 November 2014, from
http://www.drjohnsullivan.com/articles-mainmenu-27/recruiting-strategymainmenu-36/80-a-case-study-of-google-recruiting-part-2
Google. (2012). Retrieved 3 November 2014, from
http://en.wikipedia.org/wiki/Google#History
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