According to Scott Smith, in the mid-1980s, the Coca-Cola Company made a decision to introduce a new product into their beverage line. They conducted a research and the showed that taste was the most important cause of the product decline in the market. So Coca-Cola decided to introduce a new product to the market that was sweeter than the original Coke drink. Almost 200,000 blind product taste tests were conducted in the United States, and more than one-half of the participants favored New Coke over both the original formula and Pepsi (Smith, 2013). Even though people favored the “New Coke”, product, they still didn’t want the company to completely discontinue the original Coke.
Does business growth and success always acquaint to community growth and success? Bartow J. Elmore explores this question in his book, Citizen Coke: The Making of Coka-Cola Capitalism. Elmore looks at the price that the environment and the public has paid to allow Coke to rise into the power it is in today. With operations in “over two hundred countries and selling more than 1.8 billion beverage servings per day”(7), you simply cannot deny the influence and power that Coke has. Coke is a widely successful business, but their growth has come at a cost.
The main ingredients for carbonated soft drink are carbonated water, sweetener, flavor phosphoric acid and caffeine. The suppliers are not differentiated. The Coca – Cola Company is the largest customer of the suppliers. The Intensity of Rivalry The intensity of rivalry among existing firms has a high pressure on the Carbonated Soft Drinks Sector. Currently, the main competitor for the Coca – Cola Company is the PepsiCo, Inc., which also has a wide range of beverages under its brand.
There are a lot of sellers on this market but a few of these sellers are the leaders. The biggest part of the sellers are just retailers or local companies. In this situation any action of one of the sellers affects the others. Which causes that the competition in this market is not done by changing your price but by promotion actions (advertising, sales promotion programs, product innovation, increased efficiency in production techniques, the introduction of new packaging, new vending and dispensing equipment, and brand and trademark development and protection). The main competitors The main global competitor of The Coca-Cola Company is PepsiCo, Inc.
Carbonated soft drink consumption is known to bear a high correlation with the incidence of obesity, diabetes and other related issues. This is the primary reason behind the consistent decline in carbonated soft drinks volumes seen over the last decade in developed markets. Consumers in the developed markets are not only well-informed,
“THE GREAT TEMPERANCE BEVERAGE”, the slogan in 1906, reflected the United States society when there was a time people veered away from alcoholic beverages and a good alternative provided was coca cola. Meanwhile the other slogans concerned about their sales statistics like “THREE MILLION A DAY” which was in 1917 and “SIX MILLION A DAY” which was in 1925. In 1997, the coca cola company passed in terms of drinks a day, a huge difference from the one billion day mark. As in 1948’s ‘”WHERE THERE’S A COKE THERE’S HOSPITALITY”, this coca cola slogan concentrated regarding the product’s quality, refreshing taste and its role in entertaining. The latest slogan was introduced in January 2003 “COCA-COLA… REAL”.
This is apart from money that company’s franchised bottles spend in upgrading their plants all this has contributed to substantial gains in the market. In Colas, Pepsi is already market leader and in certain cities like Banaras , Pepsi outlets are on one side & all the other Colas put together on the other. While Coke executive scruff at Pepsi’s claims as well as targets, industry observers are of the view that Pepsi has definitely stolen a lot from its competitor
The company’s profit reduced significantly by 43%. Sales suffered a loss of 8% and despite the approximation that there will be 10% growth in the handset market in 2008, there was a fall in the market share from 9.4% to 7.9%. The profit continuously declined and there was 97% reduction in the second quarter of 2008. There was a huge fear that Sony Ericsson was on the verge of decline as it announced that there would be a lay-off of 2000 employees. The launch of ‘C905’ increased profits but the amount was not huge enough to make the company emerge of the crisis.
It is used to evaluate the success of a business. Coca-Cola Amital return on total assets was high in 2012 at 6.8 but dropped significantly in 2013 to 1.2 the dropped happened because of the liquidation of SPC Ardmona (Germany) GmbH (In Germany) and CCKBC Holdings Ltd ( In Cyprus). With the liquidation of these two assets for the year 2013 the return on total assets decreased but in 2014 the company planned the acquisition of Beam Inc. by Suntory Holdings Limited, three production lines to be relocated and the reorganisation of the Australian Beverages Division thus causing better performance and the return on total assets to
Due to demographic, the main market of Coca-Cola Company is teenager and adult. While most of the middle age people do not like to drink coke because they think that soft drink is harmful to the health. Middle age people are more conscious for their health. Youth is the main targeted group of Coca-Cola Company Malaysia because they are the most heavy soft drink consumption group as compared to elderly. Besides that, teenage shopper are the loyal fans for Coca-Cola Company as compared to the elderly.