Coca-Cola's Acquisition of Costa Coffee and Marketing Effectiveness vs Efficiency

Running head: REPORT 0
Article 1: Marketing News
STUDENT NAME:
NUMBER:
CAMPUS:
TUTOR:

P a g e | 1
The article is related to the acquisition of Costa coffee by the coca cola. Now the whole world
is thinking that the CEO James Quincy of the Coco-Cola is heading to acquire the Starbucks
now. But in a real scenario, it is not the case. From the article, it has been analyzed that the
Coco-Cola has purchased the Costa chain by paying $5.1. This is directly done with the aim
to have the scope in the coffee industry also by merging or acquiring the big brand name. It is
analyzed that company focuses on entering into the market and less inclined towards the
intention to increase its market share (Marketing Week, 2018). These articles reveal how
Coca-Cola has been using its marketing strategies and facts to implement the effective
strategic planning and procedure (Sauerbronn, Barros, & Faria, 2018).
From the research, it has been analyzed that the coffee has the addressable market of more
than $500 bn. It could be inferred by seeing this as an opportunity; Coca-cola entered the
market and could easily strengthen its business in the upcoming years. As this market has
full of success and expansion. The coca cola uses the marketing strategy of selling at low in
the initial years and can grab the large market without any heavy investment. Another
strategy used by the Coca-cola is that the company will be providing the coffee at many
locations which are convenient for customers to get. Coca-Cola is planning to set the outlets
at the petrol pumps and other convenience stores so that the mass public can reach out to it
and have coffee (CNBC, 2018). This has shown the core competency and marketing strategic
planning which company used to strengthen its business functioning (Endrini, et al. 2011).
The coca cola has found with using the perfect match of the marketing theories in which
utilization of the price done right by the company in launching and acquiring the Costa coffee
Another strategy used by the coca cola is that the channels used by the company. The biggest
piece that the coca cola will enjoy is the immediate consumption channels and the satisfaction
consumers get from the coffee due to his brand which is available in low cost. This is
considered to be a big opportunity for the people and customers that they have stores nearby
(Marketing Week, 2018).
The important stakeholders found in the article include the shareholders, consumers,
investors, government and other institutions which are related to the merger. From the article,
it has been analyzed that many people get benefited from this. The major benefit will be
enjoyed by the investors and consumers at large (CNBC, 2018).

P a g e | 2
The major issue in this is related to the article to decide whether the ingredients are legal,
consumable, and safe or not (CNBC, 2018).This has been the major issue faced by the
company in launching the product. But company stuck to their consumers and trust that their
beverages are indisputably safe and therefore want to see the consensus science behind any
ingredient. Coco-Cola is now focusing to have the drink which consumers can drink each one
day. Ultimately, coca cola proved it right and hit a new 52 week high in Friday’s trading
session and ultimately closed with 0.86 percent at $50.17 share. This article has shown the
deep understanding on the marketing factors and clients choices which may be considered to
analysis the company (Cheptegei, 2016).