Coca-Cola Company was created in 1886 by a Pharmacist from Atlanta-Georgia by the name John Pemberton. Pemberton had no intentions of creating a unique beverage such as Coca Cola since he was creating a headache medication. However, after mixing his unique syrup with carbon-rich water, he discovered that he had created an extraordinary beverage especially after customers tasted and approved it. As Bailey (2016) asserts, “The name Coca-Cola was produced by Pemberton’s bookkeeper, Frank Robinson, who also wrote out the new name in the curly script that has become Coca-Cola’s original logo.” During its first year of creation, the owner was selling approximately 9 glasses every day. After 130 years, “Coca-Cola sells approximately 1.8 billion bottles of coke per day” (Connor, 2016). Its mission is “To refresh the world, inspire moments of optimism and happiness, and create values that make a difference” (Elmore, 2013). Its vision is “inspiring people, providing a portfolio of quality beverage brands, partnering with suppliers and other stakeholders to create mutual and enduring values, helping build and support sustainable communities, maximizing long-term returns for shareowners, and become a highly productive organization” (Harper, Bettinger, Dismukes & Kozarsky, 2006).
Considering the external environment, the main competitor to Coca-Cola Company is Pepsi that sells substitute and similarly priced beverages. Despite the competition, Coca-Cola holds the leading place in beverages for years since its inception and thus, there little transition in its market history. It has ventured into health drinks such as coke life that promotes a healthy lifestyle among its customers. Although this strategy did not win all the customers because it also contains some unhealthy ingredients, its taste cannot compare to the competition.
The following is a list of some of the current strategies and objectives of Coca-Cola Company:
- Coca-Cola has established several innovative products to its line of products such as zero-sugar coke, multiple flavors, and diet coke.
- The company makes use of technology to maintain its presence in social media through promotions, publications and advertisements.
- An appealing brand message that arouses family emotions and happiness such as “Taste the feeling.”
- Focusing on the consumers’ needs through provision of a wide variety of beverages
- Insistence on quality of its beverages
- Focusing on environmental and products safety. As Kell (2016) asserts, “Coca-Cola’s biggest environmental issue has been its use of water, both in the bottling of its traditional beverages and in the sale of bottled water itself, mainly its Dasani brand.”
- Focusing on climate protection, energy management, water stewardship, and sustainable packaging.
- The other strategy is engagement in corporate social responsibilities such as sponsorship of sports such as English Football League in 2004 to 2011. Another example of CSR is the special day for people with mental and physical challenges for 38 years.
Where the company will be in 5 years with the present strategies and objectives
By assessing the contribution of these strategies and objectives toward the market share and profitability of Coca-Cola, the company will still be the most competitive beverages produced and seller in the world in 5 years. This assertion is true because the objectives and strategies of Coca-Cola Company are sustainable in long-term. The presence of more products on its product line including zero-sugar coke, multiple flavors, and diet coke that are different from its competitors serves a range of consumers. As such, more consumers feel that they are recognized through provision of their favorite beverages. Also, they can enjoy a variety of beverages over time. For this reason, this strategy is sustainable in long-term and thus will facilitate continuous growth of the company in 5 years.
By use of an appealing brand message that arouses family emotions and happiness, Coca-Cola turns the concern from its activities to the satisfaction of their consumers. As such, they the company will have achieved further growth in five years. Additionally, the company’s strategy that focuses on environmental and products safety is critical in guaranteeing its continuous growth in five years. This assertion is particularly true because in the 21st century, consumers are highly concerned with their health than price when choosing a commodity for consumption. As such, a company that sows a high degree of concern on the safety of the consumers just like Coca-Cola Company is in a position to continuously grow in market share and profitability in five years.
Also, engaging in corporate social responsibilities such as sponsorship of sports like English Football League and holding special day for people with mental and physical challenges is a very strategic move for Coca-Cola Company to win more customers to subscribe to its products. This is true because most people in the 21st century are more likely to buy products from socially responsible companies than from those who don’t give back to the society. Since Coca-Cola has embraced CSR as a strategy for making the society better, its market share and profitability are highly likely to continuously increase in 5 years. However, these strategies must be modified with time as the external environment changes aimed at helping the company adapt to these changes.
Recommended strategies and Justifications
The first strategy that I would recommend is making use of technology to maintain the company’s presence in social media through promotions, publications and advertisements. This strategy is effective in growing the market share and profitability of the company especially because Coca-Cola is a global Company. To ascertain its global position and also inform its consumers of its recent activities and products improvements, the company must overly rely on technology to reach out to more consumers and also woo more people to purchase its products. Also, informing the existing customers of the recent developments and product modifications guarantees continued customer loyalty.
The second strategy that I would recommend is upholding the safety of all products that the company offers. For many years, beverages have been established to be the highest contributor of obesity among its users (Wang, 2015). As such, carrying out a continuous research on how to minimize the contribution of the company’s products to unhealthy lifestyle is mandatory. As Kell (2016) asserts, “The beverage giant, Coca-Cola, reported that it spent $132.8 million on scientific research and partnerships over a five-year period from 2010 through the end of last year.” With such a huge expenditure in research and partnership, the company is able to access valuable information on how to mitigate the unhealthy effects of its products on its consumers. This way, the company attracts more consumers than the competitors and also creates a pool of loyal. The third strategy that I would recommend is the use of appealing brand message that arouses family emotions and happiness. This strategy is particularly unique since it has enabled the company make more sales than competitors especially because of personalization of its products. The fourth strategy that I would recommend is upholding CSR aimed at creating a sustainable society and thus attract more new and loyal customers in long-term.
Competitive strategies used by the competitor (Pepsi)
The first strategy is special focus on emerging markets such as China and Pakistan. The second strategy is focusing on building up of organizational culture that helps in reinforcing important values such as upholding the right workplace ethics and job morale. The third strategy is innovative marketing initiatives such as the use of appealing taglines such as “Live for Now” (Ferguson, 2015). The fourth strategy is cost differentiation where the company minimizes on its production costs to offer its products to its consumers at relatively cheap and affordable prices (Dudovskiy, 2016). The most effective strategies are focusing on emerging markets and use of cost differentiation.
In conclusion, to combat these strategies, Coca-Cola may adopt the following strategies. First, it enjoys a unique dominance of the market with its special formula beverages. As such, the company can use its influence to take over the new markets enjoyed by Pepsi. Second, Coca-Cola has achieved to maintain its prices at their lowest over years. As such, the company can use the same strategy to improve the quality of its beverages, but still keep its prices low. By so doing, the competitor will find it hard to take away loyal customers of Coca-Cola products.
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