Cola Wars In China Case Study Dai Dawar

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Cola Wars
...Cola Wars covers four major aspects of the companies ly strategic analysis, financial analysis, human resources analysis, and marketing analysis. Threat of new entrants in the soft drink industry is low. Bottlers have low to moderate buyer power and have limited bargaining power. Suppliers have high bargaining power. Cola’s substitutes are from outside the soft drink industry. There is significant rivalry between the competitors, though the industry is generally dominated by Coca Cola and Pepsi. Coke and PepsiCo have both experienced an increase in ROE over the decades. While the Equity/Assets ratio of PepsiCo has increased over the decades, it has remained nearly the same... Conclusion The analysis of...
Cola Wars
...Cola Wars Task Coca-Cola and Pepsi cola are the leading organizations in the global carbonated soft drinks market. Powerful competition between Pepsi and Coca-Cola has been in the soft-drink industry for a long time, over a century. In this chess game of colossal firms, Coca-Cola was at the top and in power of the carbonated soft-drink industry in the 1950s to the 1970s. It had outsold Pepsi two to one, eventually this war moved geared to another level, global level that ended up being a “soft drink world war”. This war has been fought...
Cola Wars Case Study
...Cola Wars Case Study: Cola Wars Continue: Coke and Pepsi Cola Wars Continue: Coke and Pepsi in 2006 Case Background Case facts traced the historical evolution of the so-called cola wars between Coke and Pepsi since their invention in the late 1800s and up to current times. The economics and profile of the US carbonated soft drinks (CSD) industry was initially presented, prior to delving into the evolution of the US soft drink industry, where the cola wars started and transcended through diverse time periods. With new...
Cola Wars Case Study
...Cola Wars Case Study: Cola Wars Continue: Coke and Pepsi Cola Wars Continue: Coke and Pepsi in 2006 Case Background Case facts traced the historical evolution of the so-called cola wars between Coke and Pepsi since their invention in the late 1800s and up to current times. The economics and profile of the US carbonated soft drinks (CSD) industry was initially presented, prior to delving into the evolution of the US soft drink industry, where the cola wars started and transcended through diverse time periods. With new...
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Cola wars continue:Coke and pepsi in 2010
...Cola Wars Continue: Coke and Pepsi in History of Coke and Pepsi It is evident that soft drinks are an essential component of a human beings daily life. Most of us have been drinking soft drinks since we were young and most of us cannot go for more than two days without drinking a soft drink. However, only a few people understand the history behind Coca-Cola and Pepsi-Cola; the two soft drinks that have defined out lifestyle with Coke being a product of Coca-Cola while Pepsi-Cola is a product of Pepsi. Coca Cola is the older of the two Colas. In 1886, Dr....
Cola wars continue: coke and pepsi in 2010
...HR Analysis As Coke and Pepsi move forward from this point, are there any important human resource issues that should be considered as part of theircorporate and business strategies? Explain answer. Answer One of the key issues to be faced by Coke and Pepsi to manage this change and transition is to train and develop their human resource base to adapt such change easily. With the initiatives of gaining control of bottlers, the challenge to manage human resources will be huge. Both the firms therefore need to focus upon improving the staffing techniques to ensure that cost effective human resources operations can be carried out. Aligning HR with the overall strategic objectives of the firm... Analysis As ...
Branded Product Review: Coca-Cola
...Cola products. It also sponsors HIV/AIDS and environmental programs and generate reports to educate the public on these areas. The major competitor of Coca-Cola is Pepsi-Cola. Many countries are their battlegrounds, although Coca-Cola is still the most popular soft drink in most countries. Virgin Cola and Classic Cola are also Coca-Cola's rivals, but their sales are far behind the two major brands. ("Cola wars", 2006) Apart from Pepsi-Cola, Coca-Cola also faces fierce competition from regional competitors, for example, Mecca-Cola in Europe and Middle East. ("Coca... Branded Product Review: Coca-Cola The Coca-Cola Company targets the nonalcoholic beverage concentrates and syrups market. Apart from the...
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...Cola Wars Case Study Cola Wars Begin In 1950, with the start of the cola wars, Coke started a marketing campaign aimed at encouraging bottlers to emphasize on take-home sales by introducing their brands in supermarkets. To cope with this initiative, Pepsi followed suit by introducing its products in various convenience stores and supermarkets. Pepsi later introduced a marketing campaign titled “Pepsi Generation” aimed at targeting the young people. This narrowed Coke’s lead by a margin of 2 to 1. Additionally, it worked together with its bottlers to help it modernize its plants as well as...
Coca Cola Marketing
...Cola satiates the diverse and ever-changing needs of millions of consumers around the world. The company has its distribution channels in over 200 countries of the world and its products cater to consumers of different demographic profiles and to consumers belonging to different socio-economic classes. Historically the company’s brands catered to the youth only. However with the addition of numerous products, sportspersons, health conscious, adults form consumers of the company. Competitive Analysis and Market Share The decades old competition between Coca-Cola and Pepsi has been referred to as the ‘Cola Wars’. These two beverage behemoths have been arc rivals and have indulged in what may... ? Coca-Cola ...
Coca Cola Marketing
...Cola satiates the diverse and ever-changing needs of millions of consumers around the world. The company has its distribution channels in over 200 countries of the world and its products cater to consumers of different demographic profiles and to consumers belonging to different socio-economic classes. Historically the company’s brands catered to the youth only. However with the addition of numerous products, sportspersons, health conscious, adults form consumers of the company. Competitive Analysis and Market Share The decades old competition between Coca-Cola and Pepsi has been referred to as the ‘Cola Wars’. These two beverage behemoths have been arc rivals and have indulged in what may... Coca-Cola...
Strategic management: The Coca-Cola Company
...Cola and Pepsi operating as the major market players with most of the market share. The market share of other players are too small toa create any upheaval of pricing or industry structure. However inter-firm rivalry in the form of product differentiation and price wars are quite imminent in the industry. (Wordpress) In addition to PSTLE and Five Forces analysis "SWOT analysis provides information that is helpful in matching the firm's resources and capabilities to the competitive environment in which it operates" (QuickMBA) References Adbrands.net 'The Coco Cola Company (US) retrieved December 4 2008... Strategic Management - Environmental Analysis Coca Cola Macro Environmental Analysis - PESTLE...
Case analysis -Wars Continue: Coke and Pepsi in 2010
...Cola Vs Pepsi There has been a consistent war between Coca Cola Company and Pepsi one of the world’s known carbonated soft drinks. In 2010, there was a boost in the Coca Cola Company as it managed to outsmart Pepsi. For instance in that year, Coca Cola sold 1.6 billion of its regular sodas and 927 million of its diet soda. On the other hand Pepsi managed to sell only 892 million of its products. The question everyone is asking is what made Cola so competitive and successful. Here is the breakdown of the successful strategy. Every manager is aware that for his business to succeed there must be clear policies and targets. In 2010, Cola Company laid the following successful strategies; Sales... Coca Cola...
Products & product marketing:bubble up cola
...Cola Wars: Coca-Cola vs. Pepsi-Co”. Retrieved April 1, 2011 from http://media.wiley.com/product_data/excerpt/16/04717432/0471743216-3.pdf Reppo, I. & Yan, M. (2010). “PepsiCo Valuation”. Retrieved April 1, 2011 from http://leeds-faculty.colorado.edu/Madigan/4820/Presentations%202010/PepsiCo%20Report.pdf Shrimsley, Robert. (2009). “Place Product Here for Biggest Impact”, Financial Times. September 17, p.14. Retrieved April 1, 2011 from proquest.com. Stroud, Dick. (2009). “50-Plus Marketing: Coca-Cola is Targeting Just about Everybody”. Retrieved April 1, 2011 from...
Coca Cola/Pepsi Case
...Cola wars continue: coke and Pepsi in 2010. 2011. Web. 23rd December, 2013.... ? Coca Cola/Pepsi Case Answer Bargaining power of Supplier Bargaining power of supplier is moderate to low. The raw material suppliers to these firms are not too differentiated and the switching cost involved is very low. Water is considered as a limited resource which might cause challenge in this industry in future since it is owned by the national governments of a state which limits the access to it by the firms. Bargaining power of Buyer The bargaining power of the buyer is high since the switching cost associated with such products is very high. Hence differentiation is the main strategy to be followed by the company so...
Marketing Strategy for Coca-Cola
...Cola Marketing Strategy for Coca-Cola Introduction When discussing the dynamics ofmarkets, it is prudent to identify a platform on to which one can implicitly make conclusive judgment. As such, this paper will look into the Coca-Cola Company to answer the questions that have been posed. About 30 years ago, the company was the sole maker of soft drinks worldwide although some small companies existed. However, the company’s competitive advantage has been greatly diminished with the advent of the Cola Wars in which Pepsi-Cola was involved. This means that a rethink of the strategies of yesteryears was the main focus so as to remain strong despite... filter is the conscious and subconscious view...
Coca Cola product life cycle
...Cola was touted as a cure for many illnesses, especially for soldiers returning from war. The product was launched as a patent medicine to encourage potential consumers to try it out, especially driven by the belief at the time that carbonated water helped in maintaining one’s health (Pendergrast, 2013: p55). The first advertisement was in the Atlanta Journal in May of 1886. Growth Stage Dr. Pemberton sold Coca-Cola to Asa Chandler in 1888, after which the new owner created the Coca-Cola Company in 1892. By the year 1895, Coca-Cola was available and was being consumed in all states... Coca-Cola Product Life-Cycle COCACOLA PRODUCT LIFE CYCLE Introduction This paper will seek to conduct a case...
Marketing campaigns of pepsi versus coca cola internationally
...wars. In order to increase sales the competitors try to reduce their gross profit margins. This strategy however mostly leads to suffering of the entire industry. The cola industry has evolved much over the last few decades. There was a time when the cola wars were in their full might. The competition between Coca Cola and Pepsi is an old rivalry. The battle for international dominance is now not being fought in United States or Europe. This was the case during the cola wars. The new turf for this battle is none other than the emerging markets with their large populations and booming economies. The two giants have deployed interesting... ?‘Comparison of the marketing campaigns of Pepsi versus Coca cola...
Marketing Mix: Coca Cola
...Cola Versus Pepsi-Cola (A). Boston: Harvard Business School. Retrieved from csinvesting: http://csinvesting.org/2012/03/08/uncivil-cola-wars-coke-and-pepsi-confront-the-prisoners-dilemma-case-studies/ Hargrave-Silk, A. (2004, April 23). Coke partners DTC to give away diamonds. Media: Asia's Media & Marketing Newspaper, pp. 5-5. Kretchmer, S. B. (2004). The Evolution... Marketing Mix: Coca Cola Introduction Coca Cola boosts of having the highest brand equity in the world. According to surveys, one of the most recognized words in the world is “Coca Cola”. The product Coca Cola continues to dominate the carbonated drinks market despite sturdy headwinds and is well ahead of its competitor Pepsi. This is owi...
Impact of Change on an Organization: Coca-Cola
...cola wars were occurring between Coke and rival Pepsi. The business developed a new marketing strategy and product called New Coke that met with dismal failure in the external buyer market. This was a significant loss for the company considering the change was widespread internally and involved restructuring of production and also quality testing procedures. Change in this situation involved the creation of a new mission related to product offerings in their product line despite the lack of consumer acceptance. The impact of this change was a realization that the company needed... ? Impact of Change on an Organization: Coca-Cola BY YOU YOUR SCHOOL INFO HERE HERE Impact of Change on an Organization:...
Consultancy Report about ( coca cola )
...Cola should proceed along this direction, promotion by association rather than through the war of words in the media. Process – The best way a company may convince its market of the worthiness of its product... ?Consultancy Report on Coca Cola UK Market Introduction Trivia has it that there are only two words known in all parts of the world, whatever the language of this locality. One of these utterances is “O.K.,” the universal indication of all things being right with the world. The other word is the world’s most popular sizzling soft drink – Coke. This popularity of this drink makes it not unlike the other word “O.K.” insofar as it does, for many people, makes everything right with the world. From its ...
Investment Decision: Coca-Cola Vs. Pepsi
...Cola performs better than Pepsi. Summary/Overview TTM P/E: Coke looses and PepsiCo wins TTM Net Income: Pepsi looses as Coca-Cola wins TTM Revenue: Pepsi looses at the expense of Coca-Cola Dividend Yield: Coke is outperformed PepsiCo Dividend Growth: Pepsi looses to Coca-Cola Balance Sheet: Pepsi under-performs while Coca-Cola wins Investment Decision (Coca-Cola vs. Pepsi) Notably, the war between Pepsi and Coke goes beyond consumers’ choices on which brand to consume between those produced by Coke or Pepsi. This baffle extends to investor whose main objective is to find value for their investment by maximizing on the returns... Marketing Coke: Why Nobody Does It Better,' Business Week....
Marketing Plan for Coca-Cola Co
...Cola Company 2010a). They use recycled content and encourage recycling post use which has decreased the overall carbon footprint by about 60 percent. 2.6 Competitor analysis The greatest challenge for Coke comes from Pepsi and this resulted in Cola wars. The two colas have been engaged in cyber wars (The Telegraph 13 Sept 2011). Competitors such as Sainsbury’s have been trying to imitate Coke’s packaging in UK to try to distract the consumers. Apart from this, the smoothies and juice drinks market is also strong in UK. However, the consumption is yet to catch up as during 2010, 1180 million liters of smoothies and juice drinks were consumed in UK from an overall 14585... ? Executive Summary Coca-Cola, a...
Mnc's Strategies For A 'New' Egypt - Case Study: Coca Cola
...Cola wars as Coke moves on Baghdad. [Online]. Available at: http://www.jihadwatch.org/2005/07/cola-wars-as-coke-moves-on-baghdad.html. [Accessed on May 5, 2012]. Keegan. (2002). Global Marketing Management. USA: Pearson... ?MNC'S STRATEGIES FOR A 'NEW' EGYPT - CASE STUDY: COCA COLA Table of Contents Table of Contents 2 Introduction 3 Analysis 7 Findings 10 Recommendations 13 Conclusion 14 References: 16 Bibliography 20 Appendix 1: 22 Introduction We stay in one global country. This is said because there is free trade and commerce between all the countries. People staying in any country can use products of another country. Everyone is free to travel around the world with valid passport. Boundaries have...
Porter's five forces
...Cola Wars, 2012. Web. May 12, 2014.... Porter’s Five Forces and the Coca Cola Company Porter’s five forces are applied by different industries to find a position where they can defend themselves against competitors or competitive forces. This study analyses Porter’s five forces in relation to the Coca Cola Company. The company manufactures, markets and sells non-alcoholic soft drink products. One of the companies competing with the Coca Cola Company is Pepsi Company. They both make and sell similar products. The next paragraphs provide analysis of Coca Cola Company using Porter’s five forces (Hill and Jones 43). Low Threat of...
Response Essay
...Cola and PepsiCo (Martin, 1). After the cola wars, the diet cola wars and the mid-calorie cola wars, a vitamin cola war is ahead. Diet sodas will be dueling to entice consumers with the promise of a little healthy extra in their glass. Coca Cola plans to introduce a new brand of diet Coke with vitamins and minerals. The company is preparing... It is hard to imagine that a day will come when Diet Coke and Pepsi would be good for your health. But this day might be coming after all, according to business reviews, marketing researches and advertising campaigns. Coca Cola and PepsiCo are planning to launch a new brand of vitamin fortified soft drinks. Company representatives have confirmed and it is now...
Strategy analysis
...cola wars between the two CSD (carbonated soft drink) giants in the world, supposedly, Coca Cola and Pepsi. Pepsi being younger than its counterpart has been struggling to be in Coke's place since the last 60 years. The companies have struggled with lags in the CSD industry and government regulations and at times Pepsi has managed to beat Coke in a number of aspects through expanding its market from over all beverage markets and also food markets all over the world. But in the end, some way or the other, Coke manages to be one step ahead of Pepsi and due to this Pepsi paid more attention to expanding its market for further... Strategy Analysis and Section # of This case study is about the very popular...
Failed Products
...Cola in mid-1980s flopped greatly and is taunted as the best example of brand missteps and product flops. It was introduced in the market in an effort to assist the soda company beat competition during the notorious “cola-wars”. However it turned out to be annoying to consumers. This product flopped because of the nasty way in which it was introduced which made regular drinkers of Coke look as if they mattered less to the company and thus a boycott was initiated. This product was abandoned just a few weeks after its launch and the initial version... was resurrected with a new name; Classic Coke” (Robert, 1995). The second product that flopped is Crystal Pepsi which was launched in 1990s as...
Case study- Marketing Plan
...Cola (Hartlaub, 2012). References Bauer Media. (2008). CASE STUDY: Diet Coke Targets Women 16-24 on Heat Radio. Getmedia Retrieved from < http://www.getmemedia.com/ideas/case-study-diet-coke- Targets-women-16-24-on-heat-radio/bauer-media.html> Chapman M., (2011) Coca Cola Target Teenagers with Global Push: Marketing Week Retrieved From http://m.marketingweek.co.uk/3024423.article? Mobilesite=enabled> D’Altorio, T. (2010). Coke Vs Pepsi…Are the Cola wars Finally Over. Investment U Retrieved from < http://www.investmentu.com/2012/February/are-the-coke-vs-pepsi- cola-wars-over.html> Ginger, C... ? Case Study – Marketing Plan Segmentation and Possible Target Markets Geographic, psychographic and behavioral...
Case study- Marketing Plan
...Cola (Hartlaub, 2012). References Bauer Media. (2008). CASE STUDY: Diet Coke Targets Women 16-24 on Heat Radio. Getmedia Retrieved from < http://www.getmemedia.com/ideas/case-study-diet-coke- Targets-women-16-24-on-heat-radio/bauer-media.html> Chapman M., (2011) Coca Cola Target Teenagers with Global Push: Marketing Week Retrieved From http://m.marketingweek.co.uk/3024423.article? Mobilesite=enabled> D’Altorio, T. (2010). Coke Vs Pepsi…Are the Cola wars Finally Over. Investment U Retrieved from < http://www.investmentu.com/2012/February/are-the-coke-vs-pepsi- cola-wars-over.html... Case Study – Marketing Plan Segmentation and Possible Target Markets Geographic, psychographic and behavioral patterns...
Marketing Fundamentals Fall 2012 Midterm Exam
...Cola The Cola Wars are a promotion of mutually-targeted advertisements and marketing campaign via television during the 1980s between soft drink industry Coca-Cola Company and Pepsi Co. Many firms seek for a competitive advantage, but few truly realize what it is or how to accomplish and keep it. Competitive advantage is gain by contribution of consumer a superior value than the competitors, by offering lower prices or provided that best quality services or other benefits that give reason for a higher price. The strongest competitive advantage is policy that cannot be imitated by other competitors. Coca Cola... Marketing Fundamentals Fall Midterm Exam The Coca-Cola Company “Every second of every day,...
Challenges in Global Business Enviroment
...cola and stiff competition from Pepsi For a very long time since the establishment of Coca cola and Pepsi, these companies have been involved in cut-throat competitions in a bid to make and consolidate their market shares in the United States and other countries. It is believed that these wars were intense in the estimated $74 billion CSD (Carbonated soft Drinks) industry in the United States. This was a carefully waged struggle that is said to have begun in 1974, moving all thaw way to the 1990s. As competition in the CSD industry intensified, these two companies registered tremendous growth... Coca-Cola Company Coca-Cola Company Coca-cola is a company that produces a wide range of beverages. The most ...
Coca Cola
...wars or even trigger the wrath of the ACCC. The company will continuously promote its products using the television, radio, print and internet. Advertising is key to sustaining market share in the industry. Schweppes Australia and P& N have increased their advertising budget as they scramble for the soft drink customers in Australia. Therefore, the Coca Cola Amatil must step up its advertising activities to keep up with the pace. This is in order to keep the brand of the company strong and alive as usual. Advertising has also been found to be the most appropriate antidote for bad things that are associated... ?Executive summary There are 22477400 people in Australia living in eight different regions....
Business and Marketing strategy (case Study)
...Cola Wars: Pepsi is Number Three and That’s a Good Thing, The Atlantic, viewed 28 June 2011, < http://www.theatlantic.com/life/archive/2011/03/cola-wars-pepsi-is-number-three-and-thats-a-good-thing/73155/ > Czinkota, Michael R. & Ronkainen, Ilkka A. 2007, International Marketing, 8th edn, Thomson South Western, USA. Deresky, Helen 2008, International Management – Managing Across Borders and Cultures Text and Cases, 6th edn, Dorling Kindersley India Pvt. Ltd., New... ? Global Marketing - Standardization vs. Adaptation by Coca Cola By Inserts His/her Inserts Grade (29, June, 2011) Introduction The days are over when ‘survival’ was the mainstream goal of every company. The technology has revolutionized...
Competitive Strategies
...Cola Light Plus. Copenhagen: Copenhagen Business School Press. Moses, C. T., and Vest, D. (2010). ‘Coca-Cola and PepsiCo in South Africa: A Landmark Case in Corporate Social Responsibility, Ethical Dilemmas, And The Challenges Of International Business.’ Journal of African Business, 11(2), 235-251. Thompson, A. (2012). Strategy: core concepts and analytical approaches. Tuscaloosa: University of Alabama.Yoffie, D. B., and Wang, Y. (2006). Cola Wars continue: Coke and Pepsi in 2006. Boston, MA: Harvard Business School Pub.... ? Competitive Strategies Competitive Strategies Introduction Over the years, people have engaged in contests, strove hard and employed different tactics in order to achieve...
Bard, M. G. The complete idiot's guide to Middle East conflict
...Cola War had on Middle Eastern politics, and how coke emerged victorious in Israel and Pepsi in Arab countries. Even though this book is about the conflict of Middle-East, it is still a good enough reference about Cola Wars. This book was much more about Middle Eastern politics but given the huge popularity and authenticity of “An Idiot’s guide to….” series this book is extremely credible in its application here. Bennett, A. G. (2009... Bibliography Bard, M. G. (2005). The complete idiots guide to Middle East conflict. New York: Penguin Group Ltd. This book was written by Mitchell Geoffrey Bard. It was taken into reference because of the history that it contained regarding the impact Pepsi and Coca Cola ...
Marketing 3000
...Cola wars between Coke and Pepsi had also undergone some price wars in the past. I remember being a Coke enthusiast ever since I can remember being allowed to drink carbonated drinks. Pegged... Marketing Concepts as Related to Personal Experience One of the most applicable concepts discussed by Kotler and Armstrong (2012) was focused on Pricing Strategies (Chapter 11) (Kotler and Armstrong). As indicated, organizations design pricing strategies depending on the profile of consumers and the demand for the product, such as the market penetration pricing strategies implemented by organizations that aim to attract a large market share at the soonest possible time. One’s personal experience parallels those...
Corporate Project (Coca Cola)
...Cola Company Background John Pemberton was the founder of the Coca-Cola Company back in 1986. He was a Civil War veteran and Atlanta pharmacist and he discovered the first soft drink out of curiosity. The new drink was sold at five cent per cup in Jacob’s Pharmacy after gaining praise from his customers on the wonderfulness of the drink’s taste. During this time, little people would have thought that the company would grow to become one of the biggest and the most profitable global company it is today since at the time John only sold nine cups a day for that year. Frank Robinson named the drink Coca-Cola and up to date the company still uses the name (Kemp, 2002). Pemberton who was more... ...
Marketing Approaches
...Cola’ Brand & Sponsorship. The Irish Times. [Online] Available at: http://www.business2000.ie/pdf/pdf_5/coca-cola_5th_ed.pdf [Accessed November 26, 2011]. Wiley, 2005. Cola Wars: Coca-Cola vs. PepsiCo. Hartley. [Online] Available at: http://media.wiley.com/product_data/excerpt/16/04717432/0471743216-3.pdf [Accessed November 26, 2011]. Bibliography Golan, A. & Et. Al., 2000. Estimating Coke’s and Pepsi’s Price and Advertising Strategies. Journal of Business & Economic Statistic, 18(4).... ?Marketing Approaches Table of Contents Table of Contents 2 Introduction 3 Market Segmentation 4 Market Segmentation of Coca-Cola & Pepsi 4 Brand Positioning of Coca-Cola and...
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Coca-Cola India no. 1-0000

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History of Coke

The Early Days

Coca-Cola was created in 1886 by John Pemberton, a pharmacist in Atlanta, Georgia, whosold the syrup mixed with fountain water as a potion for mental and physical disorders. Theformula changed hands three more times before Asa D. Candler added carbonation and by2003, Coca-Cola was the world’s largest manufacturer, marketer, and distributor of nonalcoholic beverage concentrates and syrups, with more than 400 widely recognizedbeverage brands in its portfolio.With the bubbles making the difference, Coca-Cola was registered as a trademark in 1887and by 1895, was being sold in every state and territory in the United States. In 1899, itfranchised its bottling operations in the U.S., growing quickly to reach 370 franchisees by1910.

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Headquartered in Atlanta with divisions and local operations in over 200 countriesworldwide, Coca-Cola generated more than 70% of its income outside the United States by2003 (See Exhibit 3).

International expansion

Coke’s first international bottling plants opened in 1906 in Canada, Cuba, and Panama.

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Bythe end of the 1920’s Coca-Cola was bottled in twenty-seven countries throughout the worldand available in fifty-one more. In spite of this reach, volume was low, quality inconsistent,and effective advertising a challenge with language, culture, and government regulation allserving as barriers. Former CEO Robert Woodruff’s insistence that Coca-Cola wouldn’t“suffer the stigma of being an intrusive American product,” and instead would use localbottles, caps, machinery, trucks, and personnel contributed to Coke’s challenges as well witha lack of standard processes and training degrading quality.

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Coca-Cola continued working for over 80 years on Woodruff’s goal: to make Coke availablewherever and whenever consumers wanted it, “in arm’s reach of desire.”

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The SecondWorld War proved to be the stimulus Coca-Cola needed to build effective capabilitiesaround the world and achieve dominant global market share. Woodruff’s patrioticcommitment “that every man in uniform gets a bottle of Coca-Cola for five cents, whereverhe is and at whatever cost to our company”

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was more than just great public relations. As aresult of Coke’s status as a military supplier, Coca-Cola was exempt from sugar rationingand also received government subsidies to build bottling plants around the world to serveWWII troops.

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Turn of the Century Growth Imperative

The 1990’s brought a slowdown in sales growth for the Carbonated Soft Drink (CSD)industry in the United States, achieving only 0.2% growth by 2000 (just under 10 billioncases) in contrast to the 5-7% annual growth experienced during the 1980’s. While per capitaconsumption throughout the world was a fraction of the United States’, major beveragecompanies clearly had to look elsewhere for the growth their shareholders demanded. The

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