Coca Cola Financial Analysis

For instance, to run a success business, a firm must know how to dissolve in different culture. Coca-Cola knows people from different culture, so they use their innovation to mix different cultures. Coca-cola came out with cans of Coca-Cola drinks with design of Chinese New Year during festive seasons to boost up their sales and celebrating festives with their customers. Coca-Cola focus more on market and work smart. Generally, comparing with old generation, Coca-Cola seems more popular in the younger groups.

1.2. Product Differentiation This refers to differentiation that aspires to make a product more attractive by contrasting its unique qualities with other competing products (Investopedia, 2015:1), as in the case of Coca-Cola, other soft drink brands. Successfully adopting this strategy would have a company gaining a competitive advantage, as the customer would then view the product as unique or superior. This is what coca cola has managed to do, and has managed to do it on a scale that is globally unique, and globally recognized. Much proof would indicate that Coca-Cola has definitely chosen a differentiation strategy since its early days.

The goal of the MMT is to ensure that AllStar Brands’, Allround has the highest stock price and income in the industry. To be successful in the area, the team will work to introduce new products and improve existing ones in order to remain competitive in the industry. Key Success Factors In order for Allround to successfully execute is marketing strategy. The MMT team will work towards the following key success factors: • Utilizing one or both of two reformulation opportunities: The MMT will carefully consider its two options either to remove the cough suppressant or the alcohol for its formulas. Although both formulas provide relief and rest to consumers, the team will look into the concerns that the consumers view alcohol as a negative attribute.

The Coca-Cola commercial ‘Brotherly Love’ has does a wonderful job to induce consumers by using the emotional story that is relatable to many audiences’ lives. The use of ‘Coca-Cola’ brand name minimizes the need for huge marketing initiatives for its new product- Coca –Cola Zero, as the consumers already have the understanding of reliability and quality of the older product. The design used in the Packaging and presenting communicates its brand, its contain and the benefits very well. The colors used in the commercial conveys lot about its giant competitor Pepsi, revealing its loyalty and superiority over Pepsi. Through this Ad, Coca-Cola provides enough reasons to buy their products rathe r than going to their rivals.

In their constant battle with Pepsi over market share, Coca Cola puts a lot of emphasis on brand recognition in and attempt to increase the sales of existing products in existing markets. Finally, the use of the market development model is evident by the fact that Coca Cola is the world’s most recognized brand. Coca Cola, unlike Ruth’s Chris, enters into markets that are undeveloped. They provide a highly commoditized product for a very low price. This allows them to have a larger geographical footprint than Ruth’s Chris.

Recommendations • Since there are older people and Pepsi has been traditionally a young people’s drink, Pepsi will have to stimulate consumption by older members of society • Pepsi uses Plastic bottles and cans which can be harmful for society. So Pepsi should be produced more in recyclable bottle • Need to improve PR activities in urban areas • In our country, with brand name people prefer Pepsi 23% but without brand name it is 51%. So need to improve its brand value. • Should increase promotion strategy to introduce new product line like Pepsi next, Pepsi zero etc.

Later on Pepsi introduced the Pepsi Challenge where the consumers were blinded to taste between Coca-Cola and Pepsi and everyone seems to prefer the taste of Pepsi to Coca-Cola. Since, the market share of Pepsi was increasing fast, Coca-Cola decided to come out with something new. After taking into considerations that the taste was the key factor that led to the success of Pepsi. Therefore, in 1985 Coca-Cola introduced a new product called New Coke replacing the old Coke. After the introduction of New Coke, people started going against the New Coke as many felt that Coca-Cola was considered part of their lives and felt that something was taken away from them.

• Many successful brands to pursue. • Advertise its less popular products. • Buy out competition. • More Brand recognition Advantages of coca –cola Market Leadership: Coca-Cola FEMSA is one of the biggest franchise bottler of Coca-Cola trademark beverages in the world, with operations in Mexico, Guatemala, Nicaragua, Costa Rica, Panama, Colombia, Venezuela, Argentina, Brazil and the Philippines. Business partnerships: Coca-Cola FEMSA is cooperating with The Coca-Cola Company to grow more propelled joint plans of action to keep investigating and taking part in new lines of refreshments, expanding existing product offerings and successfully publicizing and advertising our items.

• Diet Products Cannibalising standard variants: Rising awareness of soft drinks-related health issues, in particular sugar levels, has sparked a trend for “better for you” beverages globally. As for Coca-colas’ carbonates, some countries saw standard cola are being cannibalised by low calorie colas and this represents a challenge. Coca-cola must continue to sustain growth in standard cola and expand low calorie

In 2007, the unemployment rate was 5 per cent. However, it dramatically rose in June 2009 reaching 9.5 percent and 10 per cent in October 2009. Furthermore, gross domestic product (GDP) and houses prices were also affected by the Great Recession. In the year 2009, the largest decline in the postwar era happened, when the GDP fell 4.3 percent from its peak in 2007 to its lowest in 2009. House prices also fell 30