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Case study the coca cola company struggles

Edward Gitonga Running head: It provides its esteemed customers globally over 500 brands with over 1.

  • Crisis Management in Business - Coca Cola;
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Coca Cola would then initiate a long term partnership with the Olympic Games that runs to date for advertisements. Coca Cola has since been promoted as a brand that is linked to fun and even good time offering not just refreshments but also life enjoyment. This brand has thus gone beyond a drink it is instead considered by many as a lifestyle Bennett, 1998. Coca Cola as a brand has differentiated itself in the world markets through cost leadership.

By doing so the company has managed to extremely lower its cost of production in the industry. Most market segments tend to have an emphasis on the minimization of costs. Once the attained selling case study the coca cola company struggles equals the market average the lowest cost producer is likely to enjoy greater profits.

Coca Cola has employed branding as well as cost leadership in its US and global expansion strategies; In the US it successfully differentiated itself when it positioned itself as an American icon. Combined with its advertising slogan Always Coca Cola these patriotic images that are reinforced with the perception that it has been existing for long has assisted it sustain its brand loyalty from the year 1886 Bell, 2004.

As a matter of fact Coca Cola has been so perfect in its differentiation that people today do collect Coca Cola brands. These include; gracious novelties like bookmarks and toys, merchant products such as coolers and bottles, point purchase items such as calendars and trays as well as print advertisements and signs Doole and Lowe, 2008. In spite of the successes that Coca Cola has had in marketing in the last six decades it is not the dominating brand in the US; however, it is amongst the most powerful brands in the world today.

It has been rated third on Forbes magazine following Apple and Microsoft. In the US people contrastingly prefer Pepsi over Coke. They can only do this through defensive strategies where they retain their current consumer segments as well as their purchasing frequency Kotler, 1991. This is because most specialties in the industry perceive its brand as outdated. This Rockwell branding has as a matter of fact segregated youthful consumers. On the other hand its main rivals Pepsi have been employing young people in their adverts.

Forinstance they have used Britney Spears who has great appeal amongst youthful Americans Wall and Rees, 2010. The company also employs the marketing mix strategy to sell its products globally. Through the 4Ps of marketing mix place, promotion, price and product the company has managed to ensure that their products appeal to different consumer segments.

  1. Assignment 2 the coca-cola company struggles with ethical crises the company faced determine analyze how coca-cola responded to the crisis and determine if.
  2. Warren Buffet a key investor in the company resigned from the board in 2006 after many social responsibility issues were unresolved. Acid Test Ratios According to.
  3. This is because the meaning and sound of the branding can be deeply affected by Chinese linguistics and this is likely to in the end impact consumer perceptions and brand identity. Most market segments tend to have an emphasis on the minimization of costs.
  4. It started out with Coca-Cola generated 9. Problems faced by Coca Cola The company has experienced a lot of challenges in its attempt to brand its various products.

The company makes heavy investments not just in its brands but also in their quality. Apart from that it sponsors charities to ensure the sustainability of its products. The company has been employing cost leadership and branding strategies in most of its new markets Bell, 2004. However, branding has been a challenge to western firms that have chosen to invest in China.

The coca cola company struggles with ethical crises essay

This is because the meaning and sound of the branding can be deeply affected by Chinese linguistics and this is likely to in the end impact consumer perceptions and brand identity. The Company succeeded in Peru when it presented itself as a Peruvian company with headquarters in the US rather than an American multinational. This is what endeared it to Peruvians and earned it their trust for they believed that it was an international company.

In addition the company decided to increase its penetration to all avenues whether they were retail stores or sporting events Doole, 2008.

Social responsibility activities in Peru endeared it to more consumers for it not only created employment for the jobless masses but also started relief programs to fund the less fortunate in society as well as those who were economically disadvantaged. It gave most of its partnering retailers and wholesalers free product supply services, promotional materials, trade equipment, booths and refrigerators as well as general marketing and promotional support Bell, 2004.

Problems faced by Coca Cola The company has experienced a lot of challenges in its attempt to brand its various products.

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In the 80s it attempted to come up with a new recipe for its numerous products. This flavorcompletely transformed the taste that consumers were used to. However, the companymanaged to make the best of the situation. In the recent past the company reported declines in its Thailand and Indonesia markets unit case volumes as a result of decreased purchasing power of its consumers.

In the last decade in spite of the fact that the company has an invaluable brand name and is most visible globally it has encountered numerous ethical crises which has made it unable to obtain its financial objectives.

Warren Buffet a key investor in the company resigned from the board in 2006 after many social responsibility issues were unresolved. Invester did not have the leadership skills to handle a number of ethical issues. Doug Daft who replaced Invester in 2000 had a rocky tenure includingallegations that the company was involved in the disruption of long term contract plans with distributors, racial discrimination, the manipulation of earnings and the misrepresentation of market tests Wall et al.

The worst crisis faced by the company was in 1999 when 30 children fell ill after consuming its soft drink.

Management case study coca cola company

This problem escalated even after the recall of the product. The Belgium govern issued an order for allCoca Cola products to be recalled and this resolution was also passed in other neighboring countries including France, the Netherlands and Luxembourg.

The French government declined to approve its acquisition of its leading beveragecompany Orangina. It was also not allowed to acquire Cadbury. All aspects of this marketing plan should be seriously evaluated and researched. This should entail assessing the current situation, analyzing market research and auditing its business.

In addition the company should cautiously scrutinize the soft drink industry and its market possibilities. Upon analyzing its domestic and global business environment and critically assessed the industry it should then select the most appropriate marketing strategies which should be executed through efficiently and incessantly supervising external threats and opportunities while modifying its internal procedures Wall et al.

To successfully manage and supervise its internal business environment it should conduct progressive assessments of its business operations and act upon emerging issues that are the causes of inefficiencies in the manufacturing and consumer phases Bennett, 1998. The company must also monitor changes in the external environment since they are likely to create either opportunities or setbacks.

The company should diversify into other substitute markets such as milk, tea, hot chocolate, coffee and juices.

Coca cola pest analysis case study

This is because the threat of substitutes in this industry is real. The fact that consumers are becoming health conscious would adversely affect the company if it does not start doing other types of beverages on a large scale basis.

Coca Cola PESTEL Analysis

The company should move into market segments that have the utmost potential. Coca Cola should package its products with incentives and labeling endorsements for this would work well as a promotional strategy in order to increase its sales volumes and revenues. The company should employ the penetration pricing strategy in order to grab a foot hold in new markets and win huge market shares. Upon establishing customer loyalty it shouldthen start increasing the prices gradually.

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  • It was also not allowed to acquire Cadbury;
  • This is what endeared it to Peruvians and earned it their trust for they believed that it was an international company;
  • The company also employs the marketing mix strategy to sell its products globally;
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The company should also ensure it effectively communicates with targeted market segments in order to guarantee the success of its products. This can be done through informed advertisements Bell, 2004. Coca Cola should start considering adopting another brand image.

The Company succeeded in certain countries like Peru when it presented itself as a Peruvian company with headquarters in the US rather than an American multinational. The Belgium govern issued an order for all Coca Cola products to be recalled and this resolution was also passed in other neighboring countries including France, the Netherlands and Luxembourg.

To solve these problems the company should come up with a new marketing plan. References Bennett, R 1998. Second edition Bell, L. The Story of Coca Cola. Smart Apple Media Doole, I. Fifth edition Kotler, P.