To low net profit margin: PepsiCo’s net profit margin is 9.7%, Coca Cola Company 18.55% and Nestle 11%. Overdependence on the US market: 52% of PepsiCo’s revenue comes from the US market. This puts PepsiCo in a very vulnerable position in case of changes in economic conditions in the US market e.g. labour strikes. Low productivity: PepsiCo has 198000 workers and makes at least $219 439 per employee.
- Motivation and Innovation for its employees. - Very strong name and brand in the market. Weaknesses: - Retailers dealing with PepsiCo do not get any discount or incentive. - Promotions always targeting the young generation. - Some package like tin pack (Cans) is not strongly available in some areas like rural
The formula changed on 1904 to utilize a cocaine-free cola leaf extract, which remained until 1985. In a bold attempt to change the company direction and revitalize the company, the formula was changed and New Coke was introduced. In a lesson quickly learned, Classic Coke was reintroduced a short three months later, after backlash and extremely low sales and profits dipped. The 80’s were dubbed the era of the cola wars and changing the formula was a failed attempt to win the war. Throughout the years, investments, creative advertising campaigns, diversified product lines and global expansion has created a vast cola empire.
Coca Cola Company used 3 different formulations, which it tested against traditional Coke and Pepsi. Of the 200,000 consumers who took the test, just 40,000 actually was able to taste the new coke formula and preferred it blind which was then introduced, but the consumers did not have an idea of what they were tasting. Consumers did not know that these tests were indicators to Coca Cola to whether they will introduce the new Coke formula or not. As the taste tests took place, a majority of consumers, about 53% versus 47% who tasted both the old and new Coke liked the new Coke formula better than the original formula. This result was apparently influential in the Coca Cola’s decision to use this new formula and replace the old one.
This demonstrate how Americans spend less on diet sodas since they are taking less soda overall as compared to the 1980s. For instance, global revenue for coca cola was $46 billion, which was $2 billion less as compared to 2012. Coca-Cola therefore has been missing the annual growth target by 3% to 4% for 2014 and 2015. Weaknesses of the existing Advertisement Strategies The analysis found out that Coca-Cola’s recent advertisement has neglected the consumers and concentrated on the operational advantages. However, the move by Coca-Cola to advertise the entire range of its products across Europe, rather than advertising each brand separately, has given Coca-Cola some clear advantages.
Coca-Cola is the most famous brand and the largest beverage producer in the world. The company started selling its carbonated soft drinks in the United States but then significantly expanded as a result of entering foreign markets. Currently Coca-Cola operates in 200 countries and owns more than 500 nonalcoholic beverages brands. Such a big success of Coca-Cola is not only caused by its excellent distribution network but also by its strong marketing as the company has made a substantial effort in order to create a positive brand image. Coca-Cola’s mission statement aims to create associations of the brand with happiness and joy as it says: “To refresh the world in mind, body and spirit, to inspire moments of optimism and happiness through our
South Africa has the largest Coca-Cola market in Africa and without fail ranks amongst the greatest performing countries in the empire of Coca-Cola. The focus of this assignment is Coke South Africa. Target Market The Company Coca-Cola is extraordinarily
INTRODUCTION The Coca-Cola Company (Coca-Cola), the worlds leading soft drink maker, operates in more than 200 countries and sells 400 brands of nonalcoholic beverages. Coca-Cola is also the most valuable brand in the world. Coca-Cola is a globally recognised successful company. The Coca-Cola story began in May of 1886 and continues for more than a century through the times of war and peace, prosperity and depression and economic boom and bust. As late as the 1990's, Coca-Cola was one of the most respected companies in the world, a master of brand —building and known as a very successful management team.
1. INTRODUCTION 1.1 Company Overview In 1886, Coca-Cola was invented by a pharmacist named John Pemberton, in the late 19th century. Coca-Cola was bought out by businessman Asa Griggs Candler, whose marketing tactics led Coke to its dominance of the world soft-drink market throughout the 20th century. The Coca-Cola Company is the world 's largest beverage company, refreshing consumers with more than 500 sparkling and still brands. Led by Coca-Cola, one of the world 's most valuable and recognizable brands including, Diet Coke, Fanta, Sprite, Coca-Cola Zero, vitamin water, Powerade, Minute Maid, Simply, Georgia, Dasani, Fuze Tea and Del Valle.