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Analysis Of Coca Cola Co Ltd

2652 words - 11 pages

ANALYSIS OF COCA COLA COMPANY Ltd.

Introduction
Coca-Cola Company Limited is the world’s largest beverage company as well as the leading producer of soft drinks. The company has spent millions of dollars in the research and development as well as marketing and production in order to create a new unique product to gain the advantages in the so-competitive market. This report is basically focused on how Coca-Cola Company Limited can analyze the market situation and use the best strategies in order to compete with other competitors in the global market. This report will also include the SWOT analysis of the company and the problems the company faced. The strategies used, recommendations ...view middle of the document...

The purpose for these campaigns are to enhance the consumer awareness and increase customers’ commitment to the certain brand of the company. As a result, Coca-Cola Co. has maintained a long-term growth and profit as well as large market share in the worldwide non-alcoholic beverage market.
Problem or Issue Identification
Situation Analysis
Strength
* Coca-Cola Co. is global Soft drink industry leader. Their products are sold almost around the world. According to the Business Week Magazine, Coca Cola was listed at NO.1 in the world's 100 most valuable brand in terms of their asset values (Business Week Magazine, 2003).
* Global brand recognition. Its brand is well known in 90% of the world (Allen, 1995).
* Large varieties of product. Coca-Cola Co. Besides the carbonated soft drink, Coca Cola Co. has provided other types of beverages such as water, fruit juices and sport drinks to satisfy different customer's needs and wants.
* Wide area of distribution. Their products are largely distribute in over 200 countries. It has successfully sold 1 billion sales unit globally over the years (PR Newswire, 2003).
* Easy to be purchased. People could buy the product in supermarket, convenience store, vending machines, food court, fast food shop, etc.
* Lots of product innovations. Coca Cola Company keeps creating a new and unique item to satisfy the consumers’ wants. An example of successful innovation is the introduction of Vanilla Coke which was first launched in US on May 2002 and continued to launch in Canada, Australia and Hong Kong and New Zealand as well as around the world (Datamonitor plc, 2003).
* They can use their vast amount of capital and resources to advertise and market their products more intensively to increase the awareness of the consumers
Weaknesses
* Competition within the company; as Coca Cola Co. has a wide range of product line such as Coca Cola Classic, Diet-Coke, Sprite, POWERade, Dr Pepper, Fanta and Aquarius. This will increase the competition between each brand.
* Highly dependent on the carbonated drink: 92% sales of the Coca-Cola Enterprises are come from the Coke product.
* Vast amount of investment in the marketing campaigns. Coca-Cola has spent large amount of money in investing the marketing campaigns. However, it rivals such as Pepsi are also invested large amount in advertising and marketing, thus the result of the campaigns are less effective than expected (Datamonito plc, 2003).
Opportunities
* Global economic and population growth. The sustainable growth of the economy around the world will continue demanding the company’s products.
* Soft drinks dominate the most of the country’s beverage market: In Australia, 2/3 of the Australian beverage market is dominated by the soft drinks and fruit juices. One factor responsible for it is the lifestyle in a country
* Good reputation of the products sold. If the CocaCola Enterprise can maintain the quality of their...

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