CASE STUDY
COCA–COLA AND CHINA MARKET PHAM THI MY HANH
ROLL NUMBER: MJAN17GL27 I. INTRODUCTION :
Coca – Cola is one of the largest non-alcoholic beverages company founded in Atlanta in 1886 with the start of 500 sparkling and 3,800 beverage products. Since 1920’s, Coca – Cola quickly went to the world and propositioned its global brand successfully as today, with the huge amount of outputs up to 1.6 billion products daily all over 200 nations . For over 130 years of conquering all around the world, it has been well-known as the number one soft drink so far. The good operation system is one of the most important factors leading to the success as today and helps Coca-Cola own a huge amount of market share value. The company focuses on satisfying customers’ interests by bringing the value to customers.
China which is one of the most potential emerging markets in Asia has been conquered by Coca-Cola with 15 brands, 150 million servings, and customers’ choices could be up to 50 types. $4 billion has been invested in China for contributing to the future growth since 2015, summing up the total of investment in China market up to $9 billions. Moreover, 99% of labors in the total of 45,000 employees come from the local market .
This case study aims three main following statements. First, Coca – Cola is one of the
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With the rapid increase of the inflation percentage, this could make negative effects on the growth of China economy. A big portion of Coca-cola company operation is in China, so any economic changes will affect strongly to the company. The economic created both benefit and threat to the company. When the inflation increased, the consumer prices rise as well. For example, Chinese inflation rose 3.2 percent last month and 2 percent more than at present, which leads to the customer willing to paying a higher price for
Coca Cola became such a well known American Icon because it was a suitable drink for everyday consumption by people of all ages unlike alcoholic drinks and wasn’t bitter like coffee and tea. Also, Coca Cola was always there during hard times in American like the Depression and the Prohibition period. It became well establish by people that journalist William Allen White declared “it was a sublimed essence of all America stands for…” 31. During World War II and the Vietnam War, wherever the American soldiers landed the Coca Cola Company followed, remained the soldiers of home and boosting their morale. The Coca Cola also made factories wherever they landed establishing themselves in every continent on Earth to every known countries and territories.
The Federal Reserve is one of the most powerful entities we have in the United States. The decisions that are made by the Federal Reserve will have an impact on every person that is living in the country of the United States and will have an impact on the global market. Two ways that the Federal Reserve may impact a person’s life and the global market are by inflation and monetary policies. Inflation is the sustained increase in the general level of prices for goods and services in a county, and is measured as an annual percentage change. (Investopedia)
ECONOMICS PROJECT Name: Saatwic Malhotra Course: BBA.LLB (H) Section: A Enrollment Number: 7058 ACKNOWLEDGEMENT I express my sincere thanks to Mrs. Tanu Sachdeva, my economics teacher who guided me throughout the project and also gave me valuable suggestions and guidance for completing the project. She helped me to understand the issues involved in the project making besides effectively presenting it. My project has been a success because of her. PEPSICO • PepsiCo, Inc. is an American multinational food, snack, and beverage corporation headquartered in Purchase, New York. PepsiCo has interests in the manufacturing, marketing, and distribution of grain-based snack foods, beverages, and other products.
This can be considered a negative impact on both companies as due to the similarity in their products, price wars are often triggered as consumers will tend to purchase the cheap option. With lowering the prices both PepsiCo and Coca-Cola are losing potential sale revenues and thus profits. Once the price wars come to a stand still, the businesses look for alternative marketing strategies to get an upperhand, such as products. To respond to this rivalry, PepsiCo has recently expanded their beverage
The product “The products that The Coca-Cola Company sells are called nonalcoholic beverages which include numerous nonalcoholic sparkling beverages; various water products, including packaged, flavored and enhanced waters; juices and nectars; fruit drinks and dilutables (including syrups and powdered drinks); coffees and teas; energy and sports and other performance-enhancing drinks; dairy-based drinks; functional beverages; and various other nonalcoholic beverages. These competitive beverages are sold to consumers in both ready-to-drink and other than ready-to-drink form.” (Coca-Cola Company 10-K 2015) (4) The competition market The Coca-Cola Company Competes in the non-alcoholic beverages part of the commercial beverages industry.
PEPSICO (Pakistan) Business Policy Final Term Project Submitted to: Professor Fareedy Date: 29/06/2015 Submitted by: Zain Anjum 13P01410 MBA II SEC A LAHORE SCHOOL OF ECONOMICS ACKNOWLEDGEMENT Thanks to my respected professors, parents and friends who always supported me throughout tough times.
Because of these new technologies, Coca-Cola 's production volume has increased sharply compared to that of a few years ago. 2.2.3 Key Strategic Objectives and Challenges • Acquisition targets in developed markets: Coca-Cola already has strong penetration in major soft drinks markets, which typically offers limited acquisition opportunities due to market consolidation. Much of the future volume growth is likely to come from secondary markets such as Vietnam and Indonesia. Coca-cola may be better advised to set its sights on larger acquisition targets in untapped regions such as the Middle East and Africa and some secondary markets. • Diet Products
Coca-Cola strives to utilize every strategy available to become successful whenever it launches its business in overseas markets. Pepsi seemed to have discovered Coca-Cola’s disadvantages and it was using them to check Coke’s dominance. The new market structure brought about cut throat competition between the two cola giants. However, the competition ate into a large chunk of the two companies’
Among them, coca cola’s products are generally made available through intensive distribution. Intensive distribution for the newest product has allowed to maximize contact with customers and become very successful. It usually goes with heavy promotion, lower prices and large target market. Coca cola’s product are mainly distributed in a wide variety of locations including corner stores, convenience stores, restaurants, hotels, shopping mall petrol station and many, many
In the carbonated soft drinks industry, Coke Cola and Pepsi Co are the biggest players in the market for aerated beverages. Both the companies have been competing strongly against each other for decades. The market is dominated by these two industry leaders with a total market share of 72%; Coke’s market share is 42% and Pepsi’s 30%. This is known as an oligopoly market; where there are few large firms competing with each other in the industry. Since both the company’s market share so large, the market is very close to a duopoly (other players having a very small impact on the market).
Coca-Cola will need to find a way to sustainably manufacture that will not pillage the continents already scarce natural resource. The general health is also a critical issue unlike many other markets people do need the extra calories, but critics will argue that they should be getting them through other means of nutrition. Also, there is a great concern about water usage for the production of Coca-Cola’s product and the impact of not having sufficient refrigeration to keep the products cold. Which in turn would result in a waste of the product its self and of the already of the scarce resource. Not everybody will necessarily agree with these criticisms or feel that they are not important enough to oppose Coca-Cola’s focus on moving into Africa, but they do indeed bring up some moral and ethical
Coca-Cola uses those nine elements. They have their existence in any country. Coca-Cola has faith in innovation which they think that is something new that creates value and they have believe that innovation is not a function or a department, but rather an approach that is embraced across their entire company. Coca-Cola is working to execute and maintain programs that aid assure their success in including the similarities and differences of people, cultures and ideas. Coca-Cola tends to make best of opportunities based on their skills.
The main objective of this study lies in understanding the organization and studying and understanding the advertising effectiveness of Coca-Cola product .The methodology used in studying and understanding the perceived views of consumers towards the product was ‘SAMPLING’. The findings of the activity have been drawn out in form of graphs and suggestions have been offered there from the Coca-Cola Company is the world 's largest beverage company, largest manufacturer, distributor and marketer of non-alcoholic beverage concentrates and syrups in the world and is one of the largest corporations in the United States. The company is best known for its flagship product Coca-Cola, invented by pharmacist John Smith Pemberton in 1886. The Coca-Cola formula and brand was bought in 1889 by Asa Candler who incorporated The Coca-Cola Company in 1892.
HISTORY & BACKGROUND OF COCA COLA The Coca Cola company is known as one of the world’s largest carbonated soft drinks company that began before World War II. It is an American-based company found in 1886 by an Atlanta pharmacist. Dr. John S. Pemberton created the formula of French Wine Coca, which is known as Coca Cola now and introduced the carbonated soft drink as a patent medicine at first. The beverage became more noticeable when Frank M. Robison, Dr. Pemberton’s partner changed the product name and created the famous script logo, which he believed that will attract customer in advertising.
Place of consumption: Coca Cola sections the market on the premise of the place of utilization of the refreshment. The greater part of the utilization happens on introduce, for example, films, railroad station, eateries and so forth, while rest of it happens in homes. Product type: Coca Cola sections the market on the premise of the sort of items purchased by clients. The market is isolated into Cola items and non-cola items. Cola items at present give greater part of the incomes, however the extent of non-cola items is expanding.