Coca-Cola’s Strategy & Positioning Analysis
Autor: worthy4213 • October 27, 2016 • Case Study • 1,836 Words (8 Pages) • 1,088 Views
Coca-Cola’s Strategy & Positioning Analysis
Ernesto Orozco, Bridgette Hale, Esperanza Valencia, Kesha Andrews, & Du Juana Collier
Marketing 421
October 24, 2016
Instructor: Maria Keller
Title of Paper
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Overview of Organization
Since the mid 1700’s people developed a liking to bubbly flavored carbonated waters, due to a general belief that it was good for health. Coca-Cola was first marketed as a tonic and it contained extracts of cocaine. The first soft drink was sold at a soda fountain in Jacob’s Pharmacy in Atlanta on May 8, 1886. (History and Origins of your Favorite Beverage, About money) The first year of sales showed a $20K loss. John Pemberton spent over $70K in expenses and sales were about $50K in the first year. It was not until after 1887 when Asa Candler bought Coca Cola for only $2,300, that Coca-Cola began to make true profit. Due to Candler’s aggressive marketing plan and heavy advertising, Coca-Cola became very popular and began selling across the U.S. and then went international. Then on April 23, 1985, Coca-Cola came out with the release of “New Coke”. Since then, Coke has been dominating the soft drink industry with its many products including but not limited to Coke, Diet Coke, Fanta, and Sprite. As well as bottled water, sport drinks, juice drinks, coffees, ready to drink teas, and energy drinks.
Description of Product/Service
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SWOT Analysis
Strengths (Internal) | Weaknesses (Internal) |
Kept up with the times / Innovation Strong advertisement campaigns Recognized globally by brand name | No healthy products Elastic in nature (a slight increase in price of product affects Coke’s bottom line) |
Opportunities (External) Need to target younger generations Need of healthy sugary or carbonated products Need to acquire local bottling plants/local brands Need Buying out the Competition | Threats (External) Elastic in nature, a slight increase in price would be a problem The competition (Nestle S.A., Dr. Pepper Snapple Group Inc., and Pepsico) Marketing, advertising, general labor, and administrative expenses Consumer Income Consumer Taste preferences New government policies and regulations |
Strengths: Coca-Cola has clearly kept up with the changes in technology and knows its customer base very well. Coca-Cola’s aim at its target are its advertisement campaign which have been one of its strongest, such as personalizing the can with a person’s first name. Now you can even request a batch of Coke’s with the names of your group on it. Of course you pay extra for that plus the shipping and handling but what other soft drink company is doing that? The other big hit campaign is its snip bits of lyrics from the most popular songs out there. This opened up a new money making area for them as artists are knocking at their door trying to get their lyrics on their cans. Even before these advertisement campaigns, Coke had already become recognized globally by name alone. These latest advertisement strategies however, have been a big hit with Coca-Cola’s target consumers: Children, adults, younger generation and sports personalities. Coke is already a well-established brand globally. At the present time Coca-Cola has operations in over 200 countries around the world and continues dominating that segment of the market.
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