3. Page No:-3
TABLE OF CONTENTS
SL.NO CONTENTS PAGE NO
1 INTRODUCTION 4
2 HISTORY 5 - 7
3 VISION AND MISSION STATEMENTS 8 - 9
4 OBJECTIVES 10 - 11
5 EXECUTIVE SUMMARY 12
6 OWNERSHIP DETAILS 13 - 14
7 PRODUCTS OF COCO COLA 15 - 16
8 ORGANIZATIONAL CHART 17
9 SWOT ANALYSIS 18 - 23
10 MARKETING MIX 24 - 27
11 HUMAN RIGHTS POLICY 28
12 FINANCIAL STATEMENTS 29 - 31
13 CONCLUSION 32
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INTRODUCTION
Coca-Cola, or Coke, is a carbonated soft drink manufactured by the Coca-Cola
Company. In 2013, Coke products were sold in over 200 countries worldwide,
with consumers drinking more than 1.8 billion company beverage servings each
day.[1]
Coca-Cola ranked No. 87 in the 2018 Fortune 500 list of the
largest United States corporations by total revenue.[2]
Based on Interbrand's
"best global brand" study of 2020, Coca-Cola was the world's sixth most
valuable brand.[3]
Originally marketed as a temperance drink and intended as a patent medicine, it
was invented in the late 19th century by John Stith Pemberton in Atlanta,
Georgia. In 1888, Pemberton sold Coca-Cola's ownership rights to Asa Griggs
Candler, a businessman, whose marketing tactics led Coca-Cola to its
dominance of the global soft-drink market throughout the 20th and 21st
century.[4]
The drink's name refers to two of its original ingredients: coca leaves
and kola nuts (a source of caffeine).[5]
The current formula of Coca-
Cola remains a closely guarded trade secret; however, a variety of reported
recipes and experimental recreations have been published. The secrecy around
the formula has been used by Coca-Cola in its marketing as only a handful of
anonymous employees know the formula.[6]
The drink has inspired imitators and
created a whole classification of soft drink: colas.
The Coca-Cola Company produces concentrate, which is then sold to licensed
Coca-Cola bottlers throughout the world. The bottlers, who hold exclusive
territory contracts with the company, produce the finished product in cans and
bottles from the concentrate, in combination with filtered water and sweeteners.
A typical 12-US-fluid-ounce (350 ml) can contains 38 grams (1.3 oz) of sugar
(usually in the form of high-fructose corn syrup in North America). The bottlers
then sell, distribute, and merchandise Coca-Cola to retail stores, restaurants,
and vending machines throughout the world. The Coca-Cola Company also
sells concentrate for soda fountains of major restaurants and foodservice
distributors.
The Coca-Cola Company has on occasion introduced other cola drinks under
the Coke name. The most common of these is Diet Coke, along with others
including Caffeine-Free Coca-Cola, Diet Coke Caffeine-Free, Coca-Cola Zero
Sugar, Coca-Cola Cherry, Coca-Cola Vanilla, and special versions
with lemon, lime, and coffee. Coca-Cola was called Coca-Cola Classic from
July 1985 to 2009, to distinguish it from "New Coke".
5. Page No:-5
HISTORY
19th century historical origins
John Pemberton, the original creator of Coca-Cola
Believed to be the first coupon ever, this ticket for a
free glass of Coca-Cola was first distributed in 1888 to
help promote the drink. By 1913, the company had
redeemed 8.5 million tickets.
This refurbished Coca-Cola advertisement from 1943 is
still displayed in Minden, Louisiana.
Early Coca-Cola vending machine at Biedenharn Museum and
Gardens in Monroe, Louisiana
Confederate Colonel John Pemberton, wounded in the American Civil
War and addicted to morphine, also had a medical degree and began a quest to
find a substitute for the problematic drug. In 1885 at Pemberton's Eagle Drug
and Chemical House, his drugstore in Columbus, Georgia, he
registered Pemberton's French Wine Coca nerve tonic. Pemberton's tonic may
have been inspired by the formidable success of Vin Mariani, a French-
Corsican coca wine, but his recipe additionally included the African kola nut,
the beverage's source of caffeine. A Spanish drink called "Kola Coca" was
presented at a contest in Philadelphia in 1885, a year before the official birth of
Coca-Cola. The rights for this Spanish drink were bought by Coca-Cola in
1953.
In 1886, when Atlanta and Fulton County passed prohibition legislation,
Pemberton responded by developing Coca-Cola, a nonalcoholic version
of Pemberton's French Wine Coca. It was marketed as "Coca-Cola: The
temperance drink", which appealed to many people as the temperance
movement enjoyed wide support during this time. The first sales were at Jacob's
Pharmacy in Atlanta, Georgia, on May 8, 1886, where it initially sold for
five cents a glass. Drugstore soda fountains were popular in the United States at
the time due to the belief that carbonated water was good for the health, and
Pemberton's new drink was marketed and sold as a patent medicine, Pemberton
claiming it a cure for many diseases, including morphine addiction, indigestion,
nerve disorders, headaches, and impotence. Pemberton ran the first
advertisement for the beverage on May 29 of the same year in the Atlanta
Journal.
6. Page No:-6
By 1888, three versions of Coca-Cola – sold by three separate businesses – were
on the market. A co-partnership had been formed on January 14, 1888, between
Pemberton and four Atlanta businessmen: J.C. Mayfield, A.O. Murphey, C.O.
Mullahy, and E.H. Bloodworth. Not codified by any signed document, a verbal
statement given by Asa Candler years later asserted under testimony that he had
acquired a stake in Pemberton's company as early as 1887. John Pemberton
declared that the name "Coca-Cola" belonged to his son, Charley, but the other
two manufacturers could continue to use the formula.
Charley Pemberton's record of control over the "Coca-Cola" name was the
underlying factor that allowed for him to participate as a major shareholder in
the March 1888 Coca-Cola Company incorporation filing made in his father's
place. Charley's exclusive control over the "Coca-Cola" name became a
continual thorn in Asa Candler's side. Candler's oldest son, Charles Howard
Candler, authored a book in 1950 published by Emory University. In this
definitive biography about his father, Candler specifically states: "on April 14,
1888, the young druggist Asa Griggs Candler purchased a one-third interest in
the formula of an almost completely unknown proprietary elixir known as
Coca-Cola." The deal was actually between John Pemberton's son Charley and
Walker, Candler & Co. – with John Pemberton acting as cosigner for his son.
For $50 down and $500 in 30 days, Walker, Candler & Co. obtained all of the
one-third interest in the Coca-Cola Company that Charley held, all while
Charley still held on to the name. After the April 14 deal, on April 17, 1888,
one-half of the Walker/Dozier interest shares were acquired by Candler for an
additional $750.
Company
In 1892, Candler set out to incorporate a second company, the Coca-Cola
Company (the current corporation). When Candler had the earliest records of
the "Coca-Cola Company" destroyed in 1910, the action was claimed to have
been made during a move to new corporation offices around this time.
After Candler had gained a better foothold on Coca-Cola in April 1888, he
nevertheless was forced to sell the beverage he produced with the recipe he had
under the names "Yum Yum" and "Koke". This was while Charley Pemberton
was selling the elixir, although a cruder mixture, under the name "Coca-Cola",
all with his father's blessing. After both names failed to catch on for Candler, by
the middle of 1888, the Atlanta pharmacist was quite anxious to establish a
firmer legal claim to Coca-Cola, and hoped he could force his two competitors,
Walker and Dozier, completely out of the business, as well.[25]
John Pemberton died suddenly on August 16, 1888. Asa Candler then decided
to move swiftly forward to attain full control of the entire Coca-Cola operation.
Charley Pemberton, an alcoholic and opium addict, unnerved Asa Candler more
than anyone else. Candler is said to have quickly maneuvered to purchase the
7. Page No:-7
exclusive rights to the name "Coca-Cola" from Pemberton's son Charley
immediately after he learned of Dr. Pemberton's death. One of several stories
states that Candler approached Charley's mother at John Pemberton's funeral
and offered her $300 in cash for the title to the name. Charley Pemberton was
found on June 23, 1894, unconscious, with a stick of opium by his side. Ten
days later, Charley died at Atlanta's Grady Hospital at the age of 40.[27]
In Charles Howard Candler's 1950 book about his father, he stated: "On August
30 [1888], he [Asa Candler] became the sole proprietor of Coca-Cola, a fact
which was stated on letterheads, invoice blanks and advertising copy."[24]
With this action on August 30, 1888, Candler's sole control became technically
all true. Candler had negotiated with Margaret Dozier and her brother Woolfolk
Walker a full payment amounting to $1,000, which all agreed Candler could pay
off with a series of notes over a specified time span. By May 1, 1889, Candler
was now claiming full ownership of the Coca-Cola beverage, with a total
investment outlay by Candler for the drink enterprise over the years amounting
to $2,300.[28]
In 1914, Margaret Dozier, as co-owner of the original Coca-Cola Company in
1888, came forward to claim that her signature on the 1888 Coca-Cola
Company bill of sale had been forged. Subsequent analysis of other similar
transfer documents had also indicated John Pemberton's signature had most
likely been forged as well, which some accounts claim was precipitated by his
son Charley.[22]
On September 12, 1919, Coca-Cola Co. was purchased by a group of investors
led by Ernest Woodruff's Trust Company for $25 million and reincorporated
under Delaware General Corporation Law. The company publicly offered
500,000 shares of the company for $40 a share.[29][30]
In 1986, the Coca-Cola Company merged with two of their bottling operators
(owned by JTL Corporation and BCI Holding Corporation) to form Coca-Cola
Enterprises Inc. (CCE).[31]
In December 1991, Coca-Cola Enterprises merged with the Johnston Coca-Cola
Bottling Group, Inc.[
8. Page No:-8
VISION AND MISSION STATEMENTS
Vision Statement
The Coca-Cola vision statement focuses on inspiring people and promoting
excellence to nurture a harmonious environment in the workplace. It reveals the
company's goal for development and change in the industry. And here lies
Coca-Cola's definition of leadership. Also, its vision statement strives to:
Inspire others. Coca-Cola strives to be an organization that practices
harmonious relationships among employees and stakeholders by uplifting
each other. It works with various communities and investors to spread its
benefits through best practices that promote positivity.
To be the best. As Coca-Cola expands its market reach, it needs to keep
its growth trend. Indeed, you can count on Coca-Cola to innovate new
products for its market and, in the process, conduct outreach initiatives
for the community. With all these at hand, Coca-Cola is setting the bar
higher for excellence and its commitment to inspire customers,
communities, stakeholders, employees, and its other companies in the
soda industry.
Nurturing a great workplace. A company can never be successful
without excellence from its employees. The third variable on Coca-Cola's
vision statement reflects the company's uniqueness as an international
brand. It creates an environment that embraces everyone despite their
differences and promotes professional growth and unity. This is one of
Coca-Cola's primary goals, making it an ideal workplace for employees
across the globe
9. Page No:-9
Mission Statement
Coca-Cola ensures to sustain and incorporate its legacy in all its business
processes. The company highly regards making a difference in communities in
their scope and the individuals. In the process, it allows its customers to
experience and enjoy the taste of its products. Looking into the company's
mission statement, you categorize them by the following points below:
Improving lives. The company acknowledges that life's quality also means
quality and brand initiatives of the product. To address this realization, Coca-
Cola created a trend that values a customer's health more than the profits made
from the business. As you explore the hundreds of products by Coca-Cola, you
can see that it uses natural sweeteners and similar extracts to enhance the
naturality of some of its beverages. And by the time the drink reaches the
customer's hands, it nurtures refreshment while keeping one's body healthy.
Make a difference in communities. Profit is always going to be one of the end
goals of a business. However, Coca-Cola ensures that the company goes beyond
gaining billions from its products. It supports its partner communities to nurture
development through infrastructure, healthcare, and education. Coca-Cola also
initiates to gather its partners and stakeholders in donation drives for the
community's growth. It never neglects its social responsibility and the
company's participation in environmental protection initiatives.
Exceeding expectations. Coca-Cola is such a recognizable brand that everyone
patronizes its products. The brand's dynamics have created worldwide
opportunities for making people's lives better.
The Coca-Cola mission statement also focuses on bringing happiness,
positivity, and significant difference through its product portfolio.
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OBJECTIVES
The main objectives for the Coca-Cola Company are to be globally known as a
business that conducts business responsibility and ethically and to
accelerateВ .According to the Coca-Cola Companys mission statement and
2020 vision, some of its goals include: Increase profit by cutting down costs
through productive В .Per Coca-Cola, the companys aims and objectives are to
refresh the world, to inspire moments of optimism and happiness, and to create
value and make В .Our vision is to craft the brands and choice of drinks that
people love, to refresh them in body and spirit. And done in ways that create a
more sustainable В .Similar to other multi-national companies, Coca-Cola aims
to maximise their profits while maintaining a long-term sustainable growth
within the beverage В .Similar to other multi-national companies, Coca-Cola
aims to maximise their profits while maintaining a long-term sustainable growth
within the В .We are devoted to growing every customer and delighting every
consumer 24/7 by nurturing passionate and empowered teams of people while
enriching our communities В .Our vision is to craft the brands and choice of
drinks that people love, to refresh them in body and spirit. And done in ways
that create a more sustainable В .The main objectives for the Coca-Cola
Company are to be globally known as a business that conducts business
responsibility and ethically and В .Profitable diversification and expansion of
our range of products while advancing our core brands (www.cocacola.com)
This marketing objective ensures that the В .Create consumer products services
and communications customers service and bottling system strategy process and
tools in order to create competitive advantage В .The company aims to augment
its brand and products by conveying emotional experiences to the consumers in
the form of hope, happiness and optimism which is В .Does Coca-Cola
contribute to global warming? What is Coca-Colas mission statement? What are
11. Page No:-11
the marketing objectives of Coca-Cola? What is the main goal of В .Theres
something special about The Coca-Cola Company. Theres a sense of pride that
comes from building brands people love and making the most of ourselve
sВ .Our strategy aims to build a winning consumer-centric portfolio for every
occasion by . To address this, we have set the following strategic
objectives:.Economic Forces. Coca-Cola works to create job opportunity
globally. for every job the Coke industry provides, 10 jobs, В .We aim to help
collect and recycle a bottle or can for every one we sell by 2030. Learn more
about World Without Waste and view other common questions here. Our
Roadmap starts with our mission, which is enduring. It declares our purpose as
a company and serves as the standard against which we weigh our actions
andВ .Free Essay: Executive Summary In this paper the aim is to identify and
later on analyze the Coca Cola Companys mission, vision, values and objectives
and.Learn the purpose of the Share a Coke campaign that was first launched by
Coca- Cola Australia in 2011. Learn more about it here.Essay Sample: PSO, in
their mission statement clearly state that they aim to lead the energy market
through quality products and services.The Coca-Cola Company (TCCC) and its
bottling partners understand the role our entire system plays to ensure a healthy
and sustainable environment.Instead, Coke aims to sell consumers the
experience and lifestyle associated with its brand. For example, Coke recently
unveiled a new packaging campaign whereВ .A major breakthrough took place
in 2015 when Coca Cola developed its first global marketing campaign. The
primary objective was to establish the „one-brand
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EXECUTIVE SUMMARY
The Coca Cola company is perceived to be the most famous trademark on the
globe, and it is equally so. The company claims more than 400 brands that appeal
to a wide range of individuals throughout the world. They are in a position to
fulfill needs of every one of their buyers making their experience with their
beverages a better one. The entity’s drinks entice a lot of people across all races,
age, and gender. Coca Cola is outstanding for its overall popularity as its items
are sold in over four hundred countries in the world, while major contenders like
Pepsi are just available in very few countries. Such a competitive advantage has
placed…show more content…
It is because of it's inexpensive to purchase nature and its availability to the
clients (Noe, 2013). Recent studies indicate that, lately, for one to buy a soft drink
there is an in-depth decision making required.
The Coca-Cola organization has made exemplary strides mainly to offer a variety
of products to its clients even with the competitive nature of the market.
Consumers’ choice gets based on the brand aspect in which the organization wins
most customers' heart against its rivals. Even though a significant number of
people deny cases to having inclination picking between Coca-Cola items or its
rivals', many have a strong desire in some way. Many inclines toward Coca-Cola
products since the organization has more than hundred years of history and
predictable brand image. This picture is engraved in a lot of people subsequently
end up purchasing their beverages. It is out rightly conspicuous in the company’s
high market share in the field of soft drinks.
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Coca-Cola Strengths – Internal Strategic Factors
1. Strong brand identity – Coca-Cola is a highly popular brand with a unique
brand identity. Its soft drinks are the most-selling drinks in history.
2. High brand valuation – Coca-Cola is undoubtedly one of the most
renowned brands with a high brand value. According to Interbrand annual
report, Coca Cola is ranked 6th best global brand in 2021 with a brand
value of $57 Billion. Other top ranking companies on the list are Apple at
#1, Amazon at #2, Microsoft at #3 Google at #4 and Samsung at #5
position. [1]
3. Extended global reach – It is sold in more than 200 countries with 1.9
billion servings per day of Company products. It has introduced more than
500 new products globally. Some of these are variations of Coca-Cola
beverage, like Coco Cola Vanilla and Cherry Coca-Cola. Its brands are
known to touch every lifestyle and demography.
4. Greatest brand association and customer loyalty – Coca-Cola is considered
one of US’s most emotionally-connected brands. This valuable brand is
associated with ‘happiness’ and has strong customer loyalty. Customers
can quickly identify their particular taste. Finding its substitutes is difficult
for them. Moreover, Coca-Cola and Fanta have a huge fan following than
other beverage names in the industry.
5. Dominant market share – Out of Coca-Cola and Pepsi, the only two largest
manufacturers of soft drinks in the beverage segment, Coca-Cola has the
largest market share. Coke, Sprite, Diet Coke, Fanta, Limca, and Maaza
are the highest growth drivers for Coca-Cola.
6. Unparalleled distribution system – Coca-Cola has the most efficient and
most extensive distribution network in the world. The company has
nearly 225 bottling partners and about 900 bottling plants globally.
7. Acquisitions – Coca-Cola has a long list of strategic and profitable
acquisitions including Costa coffee chain, Fairlife (Milk Products), Fuze
Tea, AdeS, and many more. Through these acquisitions, Coca-Cola
expanded its ready-to-drink beverage portfolio. [2]
8. Repositioning portfolio – Coca-Cola Company has repositioned and
reduced the numbers of its global brands from 400 to 200 brands in 5
major categories such as :
o Coca Cola
o Sparkling Flavors
o Nutrition, Juice, Dairy & Plant
20. Page No:-20
o Hydration, Sports, Tea & Coffee
o Emerging
Coca-Cola Weaknesses – Internal Strategic Factors
1. Aggressive competition with Pepsi – Pepsi is the biggest rival of Coca-
Cola. Had it not been Pepsi, Coca-Cola would have been the clear market
leader in the beverage.
2. Product diversification – Coca-Cola has low
product diversification. Where Pepsi has launched many snacks items like
Lays and Kurkure, Coca-Cola is lagging in this segment. It gives Pepsi
leverage over Coca-Cola.
3. Health concerns –Carbonated drinks are one of the major sources of sugar
intake. It results in two grave health issues – obesity and diabetes. Coca-
Cola is the biggest manufacturer of carbonated beverages. Many health
experts have prohibited the use of these soft drinks. It is a controversial
issue for the company. However, Coca-Cola hasn’t devised any health
alternative or solution for this problem yet.
4. Lawsuits – Trust is undermined whenever the company is accused of
wrongdoing. Coca Cola is facing a patent infringement lawsuit for using a
dispenser that can recognize users and customize drinks based on their
preferences. [3]
5. Overdependence on Third-Party Technology Providers – Coca Cola’s
operations rely heavily on the technological expertise of third-parties. The
company signed another five-year deal with Microsoft to supply business
software. [4]
6. Environmentally Destructive Packaging – In the 2020 TearFund report,
Coca Cola was named as one of the four world’s largest consumer brands
that are contributing immensely to global warming and carbon
emissions by using throwaway plastic bottles. [5]
7. CEO of Coca-Cola Aims to Reduce Cherished Coke Products – James
Quincy, the current CEO of Coca-Cola and a renowned businessman, has
recently been bombarded with disgruntled grievances of Coke fans. The
complaints are coming in because of the CEO’s shocking decision
to permanently discontinue some of the most popular products from
Coca-Cola’s diverse product portfolio. Coca-Cola aims to eliminate in-
21. Page No:-21
demand and popular products such as Tab (a diet drink), Odwalla (a
smoothie brand), and the loved coconut water Zico.
Coca-Cola Opportunities – External Strategic Factors
1. Introduce new products and reduce added sugar – Coca-Cola has the
opportunity to introduce new offerings in healthy drinks and food segments
just like Pepsi. It can contribute to their revenue, brand image and they can
branch out from carbonated drinks. According to its recent annual report,
Coca-Cola has been evolving and prioritizing the reduction of sugar in its
beverages and so far 28% of its volume sold was low or no-calorie
beverage.
2. Increase presence in developing nations – Many regions with hot climate
have the highest consumption for cold drinks. Thus, increasing presence in
such emerging markets can be excellent – Middle Eastern and African
countries are a good example.
3. Bring advanced supply chain system – Coca Cola’s business is entirely
dependent upon logistics and supply chain. Transportation costs and
fuel prices are always on the rise. Thus, coming up with some advanced
and improved systems for distribution can be an opportunity.
4. Packaged drinking water – Coca-Cola owns several packaged drinking
water brands like Kinley. There is a great potential for expansion in this
segment for Coca-Cola. There is an opportunity to expand and bring more
healthy drinks in the market to avoid people’s criticism.
5. Expand through Acquisition – Although different sectors offer lucrative
opportunities for growth, quick entry into these markets can be a challenge.
Recently, Coca-Cola’s growth was driven by some of its recent
acquisitions like Costa Coffee, Aha sparkling water and it can do it again.
It has the financial resources to acquire startups or SMBs in emerging
markets and exploit the numerous opportunities they present. [6]
6. Partners with Constellation Brand – One of the world’s biggest non-
alcoholic beverages brand teams up with Corona
manufacturers Constellation Brands to make alcoholic Fresca cocktails. It
seems like a good maneuver by Coca-Cola in an ecosystem where a
handful of non-alcoholic brands are diversifying their product portfolios.
Moreover, both companies are looking to grab a bigger market share for
the much-in-demand spirits-based cocktail drinks. Following the news of
the partnership, Constellation Brands’ share went up by 1%.
22. Page No:-22
7. Coca-Cola introduces its very First TikTok challenge across the US
– Coca-Cola enters the TikTok stratosphere, announcing the company’s
first-ever TikTok challenge in the US. It’s an excellent move for the
company to enhance its brand recognition further.
TikTok is a huge platform with over 1 billion monthly active users. Debuting its
first TikTok challenge, Coca-Cola has also collaborated with Grammy-
nominated music artist ‘Khalid’ to sing the challenge’s first opening song.
Moreover, Coca-Cola will also collaborate with choreographer Jalaiah Harmon,
the young woman behind the famous Renegade Dance.
Coca-Cola Threats – External Strategic Factors
1. Water usage controversy – Coca-Cola has faced many criticisms over its water
management issue. Many social and environmental groups have claimed that the
company has a vast consumption of water in water-scarce regions. Besides,
people have alleged that Coca-Cola is polluting water and mixing pesticides in
water to clear contaminants.
2. Pollution Lawsuit – Coke and three other companies are being sued by a
California environmental group for contributing to plastic pollution. In the
lawsuit, Coca-Cola is singled out for misleading the public about the
recyclability of its single-use plastic bottles. [7]
Source: Statista
3. Direct and indirect competition – Although direct competition from Pepsi is
clear in the market, however, there are many other companies which are
indirectly competing with Coca-Cola. Starbucks, Costa Coffee, Tropicana,
Lipton juices, and Nescafe, are the indirect competitors of Coca-Cola, which
can threaten its market position.
4. Economic Uncertainty – The recent events have negatively affected business
operations, supply and distribution chains, and devastated revenues of many
global companies. In 2020, Coca Cola’s revenues declined drastically as
restaurants, theaters, and other venues that contribute about half of its revenue
remained closed due to the global crisis. [8]
5. Increasing Health-Consciousness – Consumers are increasingly adopting
healthy lifestyles and avoid products with unhealthy ingredients. The increase
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in health-consciousness can reduce Coca Cola’s sales and profits as customers
migrate to healthier options offered by competitors. [9]
6. Coca-Cola Recalls Sodas and Juices over Possible Contamination
– According to Food Safety News, Coca-Cola announced a recall of its Minute
Maid and Coke products over possible contamination issues. According to
reports, the brands that have been recalled include Maid Berry Punch,
Strawberry Lemonade, and Fruit Punch.
The products were found to contain metal bolts and washers. The company
recalled all 59-oz cartons that were distributed. Moreover, Coca-Cola also
recalled 12-oz coke cans over possible “foreign contaminants.”
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MARKETING MIX
Marketing mix of Coca-Cola (4Ps of Coca-Cola)
This is a detailed analysis of the marketing mix of Coca-Cola. It analyses the
4Ps (Product, Price, Place, and Promotion) of Coca-Cola Company and explains
its business & marketing strategies. The Coca-Cola Company is an American
multinational corporation. It is best known around the world for its flagship
product, Coca-Cola.
Products in the marketing mix of Coca-Cola
The Coca-Cola Company has a wide product range.It has more than 500
sparkling and still brands and sells approximately 1.9 billion servings a day
globally.It offers 80 drinks across 20 different brands in the UK.
Coca-Cola Classic, Coca-Cola Zero Sugar, Fanta, Fanta Zero, Sprite, Sprite
Zero, Diet Coke, Dr Pepper, Dr Pepper Zero, Powerade, Powerade Zero,
Schweppes Water, Schweppes Mixers, Schweppes Lemonade, and Oasis are
some of the Coca Cola Company’s popular products (Coca-Cola Company,
2023).
Over the years, the world has witnessed a growing awareness of the impact of a
variety of drinks on public health.Unsurprisingly, the Coca-Cola Company’s
response to the public concerns has been prompt.
For example, some of the products are now caffeine-free. The company also has
a reduced or no-sugar, no-calorie option for almost all of its products. This has
been very good to address the consumers’ growing concerns.
The Coca-Cola Company is one of the most valuable brands in the world. Its
products come in different sizes and shapes which help customers choose the
right amount of drink. All of its bottles and cans are 100% recyclable. Its net
revenue for the year 2021 was $38.66 billion (Ridder, 2022).
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Price in the marketing mix of Coca-Cola
There are a number of pricing policies available to business marketers e.g.
competitor pricing, discrimination pricing, value pricing, cost-plus pricing, and,
loss leader pricing. The biggest rival of Coca-Cola worldwide is Pepsi. Both
companies price their products competitively. Therefore, it can be said that
Coca-Cola’s pricing policy is a competitor pricing.
Some analysts would argue that Coca-Cola also uses value pricing as the prices
of its products are not so high that the average customer cannot afford to buy.
However, the prices are not very cheap either which would have given the
customers an impression of low quality. It is worth noting that the prices may
vary from country to country, and city to city.
Place in the marketing mix of Coca-Cola
Place in the marketing mix of Coca-Cola refers to where the company’s
products are available and how they are made available to the customers. Coca-
Cola’s products are sold across the world. It has a wide network of distributors
who take the products to shops, supermarkets, cafes, restaurants, gift shops, and
many other outlets across the globe.
Anyone who travels can see that Coca-Cola is available almost everywhere,
including airports and train stations. They can even find vending machines
selling the products. In fact, Coca-Cola has developed an extensive distribution
network. Its distribution strategy is very intensive as well. Therefore, customers
find its products available almost everywhere across the globe.
While Coke’s ingredients are well-known, the exact recipe of Coca-Cola is a
secret. The company produces syrup concentrate to sell to its licensed bottlers
around the world. The bottlers then add filtered water and sweeteners with the
concentrate to produce the final products in cans and bottles.
The bottlers then sell, distribute, and merchandise the finished products to retail
outlets, restaurants, petrol stations, newsagents, corner shops and many more.It
is not therefore hard to imagine how Coca-Cola products are available even in
remote areas in many countries.
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It is worth mentioning that the shapes and sizes of the bottles are predefined by
the Coca-Cola Company, not by the bottlers. This allows it to keep control of its
operations.
Promotion in the marketing mix of Coca-Cola
Promotion in the marketing mix of Coca-Cola usually refers to how the
company communicates with its customers and stakeholders. The cost of
maintaining the position of the global leader in the beverage industry is not
cheap!
Unsurprisingly, the Coca-Cola Company spends billions of dollars every year in
advertising globally. In fact, its yearly advertising spend is around 4 billion
dollars (Ridder, 2022).
Coca-Cola has famous slogans like ‘Open Happiness’ and ‘Catch the Wave’
that are instantly recognisable, even to people who do not drink soft drinks. Its
advertising is all about making the company seem like a global brand which is
not an exaggeration; it is a global brand indeed.
The ads use languages and images from around the world and are in many
different languages. It is worth mentioning that Coca-Cola has even been seen
in outer space, having been placed on the International Space Station. However,
some of its ads were criticised in the past for various reasons.
The Coca-Cola Company uses a variety of promotional strategies to take its
messages to the customers.It uses different types of media for its advertising
campaigns.Media platforms, e.g. TV, the Internet, newspapers, and social
networking sites have all been used by the company.
It also makes use of different sales promotion techniques. For example, it offers
special incentives and bulk-buying discounts to the distributors and the retailers.
The Coca-Cola Company has a long history of sponsoring major events,
organisations and projects.It is the sponsor of American Idol, Apple iTunes,
BET Network, NASCAR, NBA, NCAA, the Olympic Games, and others.It is
the longest continuous corporate partner of the Olympic Games.Its partnership
with the Olympic Games started long ago (Coca-Cola Company, 2023).
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Coca-Cola has also been one of the longest-standing corporate partners of FIFA
for a long time. The partnership has been extended until 2030 (FIFA, 2022).
The aim of the partnership is to support many FIFA-organized events around
the globe, including FIFA’s Youth-, Women’s- and Men’s Tournaments which
would surely further increase the visibility of Coca-Cola products.
Coca-Cola sponsors many other sporting events such as baseball matches as
well as cultural gatherings like art shows. It also sponsors many non-sporting
events, such as children’s charities and other organisations.
However, it needs to work more on reducing its impact on the environment so
that better public relations can be secured. It is worth noting that Coca-Cola has
come under growing societal pressure to take responsibility for its share of
plastic pollution around the world.
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HUMAN RIGHTS POLICY
Respect for human rights is a fundamental value of The Coca-Cola Company.
For more than 130 years, the Company has built a reputation on trust and
respect and we are committed to earning that trust with a set of values that
represent the highest standards of integrity and excellence.
We strive to respect and promote human rights in accordance with the UN
Guiding Principles on Business and Human Rights. Our aim is to help increase
the enjoyment of human rights within the communities in which we operate.
Our Human Rights Policy is a cornerstone in these endeavors.
The latest version of our Human Rights Policy was launched on 11 December
2017. It reflects an in-depth global consultation on the salient human rights risks
of the Company, which are the most severe potential impacts associated with
our business. Our Human Rights Policy applies to The Coca-Cola Company, the
entities that we own, the entities in which we hold a majority interest, and the
facilities that we manage. It includes the following twelve components:
Respect for Human Rights
Community and Stakeholder Engagement
Diversity and Inclusion
Freedom of Association and Collective Bargaining
Safe and Healthy Workplace
Workplace Security
Forced Labor and Human Trafficking
Child Labor
Work Hours, Wages and Benefits
Land Rights and Water Resources
Healthy Lifestyles
Guidance and Reporting for Employees
At The Coca-Cola Company, it is every employee’s responsibility to maintain a
work environment that reflects respect for human rights and is free from all
discrimination and harassment, aligned with our Human Rights Policy. If any
employee believes that someone is violating the Human Rights Policy and/or
the law, they are asked to report it immediately to their manager, Human
Resources, Company legal counsel or EthicsLine. We also audit against the
Human Rights Policy to ensure compliance. Our goal is to reach the target of 98
percent compliance by 2020.
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CONCLUSION
The Coca Cola Company is currently one of the biggest and most recognized
soft beverage brands in the world. With over 3000 products in more than 200
countries, the Coca-Cola Company has surely become part of people’s lives.
The Coca-Cola Company owes its success to the people who do their best to
achieve the task at hand. Thus, the Cola-Cola Company takes cares of its
employees in return by creating a good working environment and working
along with unions and government agencies to make sure its employees are
safe. The Coca-Cola Company understands that in today’s business world
technology is very essential to run such a big company like Coca-Cola.
Therefore, the Coca-Cola Company uses different types of technology such as
creating databases and data warehouse about their customers and suppliers,
doing business with consumers and other businesses through the internet. The
Coca-Cola Company even offers merchandise over the internet through its very
own shopping website www.cocacolastore.com.The Coca-Cola Company also
uses search engines such as Google and yahoo to advertise its products and
make sure its brand reaches more people every day. Coca-Cola has spent over
$2 million just on advertising and marketing. This makes Coca-Cola well
known in many countries In addition, keeping up with today's new trends, the
Coca-Cola Company also advertise its products on myspace, facebook and
twitter. The Coca-Cola Company knows that no business can run without a
plan. Because the Coca-Cola Company has been able to the set the entry barrier
in the beverage business very high, new companies are discourage to compete
with Coca-Cola. In addition, the Coca-Cola Company has agreements with
many of its supplier (mostly bottling company) to exclusively provide by their
services to Coca-Cola. Thus, it is almost impossible for new comers to keep up
with Coca-Cola and similar competitors with recognized names in the business
such as Pepsi. The Coca-Cola success isn't something that has been achieved
over night. Many years has passed since John Pemberton created the secret
formula for Coca-Cola in 1886. Who would have thought that after over a
hundred years, his creation would have this much impact in the world and turn
Coca-Cola into a worldwide recognized company.