Coca-Cola did market research for a period of two years and spent a large amount of funds measure of $4 million to look into the taste of New Coke versus Pepsi and old Coke. After 200,000 blind taste tests, Coca-Cola concluded that individuals favored the taste of New Coke to any other drinks in the market. Therefore, New Coke was introduced with a blast with a whole new packaging and suspending the old Coke. During the press conference of the launch, New Coke was presented however they did not declare about the purpose behind the new launch. Coca-Cola never mention the purposes behind change, Pepsi Challenge and alternate tests done by their innovate work office that demonstrated that the taste of the Coke was the main reason why Coca-Cola was losing to Pepsi in the market share.
It is important for Pepsi to set it self apart from Coca-Cola and generic colas in a market where the end product is essentially the same type of beverage. Rarity: Coca-Cola differentiation strategy is rare considering that when people thinking of drinking cola, Coca-Cola is typically the first soda that comes to mind. Indirectly engraining an idea that your product is “the” product to choose into consumers’ minds has allowed Coca-Cola to sustain a competitive advantage. Pepsi differentiates their product through brand value by pushing its products on the “new generation.” Although this strategy is not necessarily rare, it has defined the brand since the early 90’s and the time investment makes the strategy more rare. Imitability: Coca-Cola experiences imitability, considering in essence it is a standard cola beverage.
Even though the good seems to outweigh the bad, Coke is a big contributor to the health issues we see today. On average an American citizen will consume 4.99 kilograms of sugar from consuming Coca-Cola that is 399 servings of Coke products per year. In third world countries it is cheaper to buy a coke than it is to get access to clean drinking water. Studies have shown that the acidity levels of Coke are very close to those of battery acid. Coca-Cola has been successful for the past 127 years but recently we have been seeing a decline in their shares which is dangerous in terms of their standards.
In fact, there are many off brand sodas that cost relatively less than Coca-Cola’s products (Saving on Soda, 2013). It does what to stand out from competing products by giving customers a unique taste that will get them to buy it even at a premium price. Even if the taste may not be “better” than other sodas, the brand of the company can give it that added value needed to sell at a higher price (Thomas, 2017). The decision to lean towards the differentiation strategy was a smart move as the company has been able to take some of its strengths and align them with the
1. IF COCA-COLA WANTS TO OBTAIN MORE OF INDIAN’S SOFT DRINK MARKET, WHAT CHANGES DOES IT NEEDS TO MAKE? The changes that Coca-Cola needs to make to obtain more of the Indian’s soft drinks are as follow: PRODUCT DIVERSIFICATION - JUICES, TEA, COFFEE Coca-Cola can also gain their respect from the Indian customers if they try to diversify their product by producing different types of drinks such as juices, tea, and coffee. A survey in metropolitan cities of India found that 79% respondent refused carbonated drinks, with this survey they can make their R&D and produce drinks to suit the customers. Also the Indian urban young adults and teenagers are getting more awareness on health, obesity, therefore rejecting carbonated drinks.
In Coca cola – Nestlé’s case, the ideology fact, because of the culture, meant a significant problem. Although the product’s success was pretty effective and the brand recognition hit enormously in the market, there were many aspects that were not the most beneficious for both sides. As I mentioned before, this joint venture meant a union of support and of complementation, where Nestle was looking for a greater brand recognition and also a more extensive distribution of the product created. While Coca Cola was looking for economical earnings and improvements through the creation of a new product based on a Nestlé’s formula and a name given. The case was that at the time of execution, Coca Cola was contributing much more than Nestle and the profit obtained was divided 50% and 50%, agreement that resulted no beneficial for Coca Cola, given all the contribution it gave to the joint.
For this situation, Coca Cola has no political issues in this issue. Economic Coca Cola likewise has low development in the market for carbonated drinks (North America). The market development was 1% out of 2004. For animating the development, Coca Cola had spent high spending plan of notice to support the clients. Social These days, clients tend to change their way of life.
In terms of Coca-Cola Company also some macro environmental factors like demographics, economic, natural, technological, social and political factors can bring some impact in the market of the company. So, every marketer should find out these factors and should bring some changes to their marketing strategies in order to rule in the market and to sustain their business organization. Since the Coca-Cola Company has always focused on adding value to its product, it is standing at the top position in the market. There are very few competitors who can compete Coca-Cola on that
The EMCs enable the faster foreign market entry in term of first recorded sales. EMCs also give better focus on exporting, as most firm such as Cola Delight give priority to their domestic problems. The Cola Delight also using EMCs because they are expertise in dealing with the details of exporting, as well as its strategies. Cola Delight decide on indirect methods of market entry because it also generally want less marketing investment, but could lose considerable control over the marketing process. Other than increase market share, profitability and business stability indirect exporting method also facilitate the company that originated in UK to establish its operation in many foreign
Title A case study on Coca-Cola practices: Use of pesticides in drinks Abstract Globalization paved the path for foreign companies in India and everywhere else in the world. It increased the options availability for the consumers. Few such were availability of carbonated drinks and leading players were Coca-Cola and PepsiCo in India. They offered the cold drinks to the people and that too in affordable cost. It became a lifestyle for people especially in urban society.