Coca-Cola Marketing Analysis

This article provides a marketing analysis of Coca-Cola, including a SWOT analysis, Porter's five forces analysis, and PESTLE analysis. It also discusses the organizational goals, operations, and strategic actions of the company.

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Coca-Cola marketing analysis
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Introduction
The Coca-Cola is an American established international corporation that is involved in
the production, selling and promotion of more than 500 non-alcoholic beverages products. Due
to escalating consumer conscious on the diet intake, it is vital for the emerging and existing
companies to design products according to the prevailing consumer demand and desires
(Andreyeva, Luedicke, Henderson & Tripp, 2012, pp. 412). Therefore, for the company to
extend its brand, surpass it close rivals, and produce brand relevant to the user’s health, the firm
intends to produce the calamansi juicy fruit (Brownell et al., 2012, pp. 1600). Calamansi
fragments are able to reduce the cholesterol level, reduce blood pressure and improve the
digestive system.
The company mission is to refresh the world and inspire the moments of happiness and
optimism. Then, the company will create value and make differences among the competitors.
The vision of the company includes having a great place to work where individuals get
inspired to be the best. Also, the company vision is to bring a portfolio of quality beverage
products that project and fulfill individuals’ needs and desires (Terpstra & Verbeeten, 2014, pp.
501). The firm also aims to nurture a winning web of consumers and suppliers. Similarly,
maximization of long-term returns to stakeholders while being cognizant of the overall
obligation. Finally, be a lean, effective and fast-moving corporation.
The firm values include; collaboration, leadership, integrity, accountability, passion,
diversity and quality (Terpstra & Verbeeten, 2014, pp. 505).

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SWOT analysis
Strengths
Brand equity: the company has a massive worldwide presence and distinctive product identity.
Firm valuation; the firm is one of the prized firms in the sphere, with its value almost $79.2
billion. Largest market share: the main competitors of Coca-Cola are the Pepsi. However, the
company beverages such as Fanta, sprite, coke, diet coke, Maaza, and Limca are the growth
drivers for the firm. Vast international presence has contributed to the creating of the huge brand
name. The company has robust customer loyalty; due to the good taste of the Coca-Cola
products, finding alternatives becomes hard for the users. Fantastic marketing approaches; while
Pepsi target youngsters, Coca-Cola targets all the age group. Distribution network; due to an
effective distribution network, the company has been capable to command a large market
existence.
Weaknesses
The following comprise the company’s weakness; competition with Pepsi, product
diversification, absence in health beverage as the people become health conscious and waste
management where several group have elevated charges in the name of the Coca-Cola.
Opportunities
Divergence in the diet and health trade will advance the offering of Coca-Cola to their
clients. In the developing nations, the states are slowing moving to the healthy beverages. The
supply chain can be primary cost with the transportation charge always escalating. Therefore, the

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company should strictly observe on its supply chain. The company should concentrate on the
lesser selling brand as the company has products with lowered acceptance in the market.
Threats
Indirect competitors such as coffee chains which offer a healthy rivalry to the company
carbonated drinks. Another concern is the raw material sourcing.
Porter’s five forces analysis
New entrants (medium): the entry barriers are moderately low, there is no user switching
cost and zero capital investment. The company has a considerable market share with loyal
consumers.
Substitute’s product (medium to high): numerous energy drinks exist. However, people
can tell the uniqueness of the firm’s product in the market.
Bargaining power of buyers (lower pressure); large retailer such as Wal-Mart have
bargaining influence due to the bulky order capacity but it is reduced because of the end user
brand devotion.
Bargaining command of suppliers (low): the suppliers are not differentiated or
concentrated.
Rivalry among existing firms (High): currently, Pepsi remains strong competitor and also
coffer drinks outlets.

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PESTLE analysis
Political factors: establishment of soda tax across key towns in the US affect the Coca-
Cola consumption. Also, the chairman Muhtar joined more than 1000 CEOs in accusing Trumps
Muslim travel sanction as it weakens the firm range dogmas.
Economic factors: staggering drops in soda intake in the wider US marketplace and the
low progress of the US economy.
Social factors: user-concentration on the healthy beverages has led to soda consumption
failing in the US (Powell & Gard, 2015, pp. 856).
Technology: growing acceptable of driverless delivery systems, digital bots, and 3-D
printing technologies are having an innovative effect on the method the company has performed
with its users (Freeman et al., 2014, pp.58).
Environmental factors: change to a low carbon and resource efficient future ongoing
upsetting the firm which is needed to comply.
Legal factors: currently, Coca-Cola is under the subject of a complaint filed for
deceptive to the users about the wellbeing perils of drinking sodas. If positive, the company will
be forced to display a public warning on the product just like the cigarette producers (Powell &
Gard, 2015, pp. 860).
Organizational goals
Focused on driving revenue and profit growth; the company will use segmented revenue
growth approaches across the firm business as well as aligning employee incentive accordingly.

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Investing in the company brand and business; healthy business needs continuous
investment. The company has made a choice to invest in more and better marketing of new and
current brands.
Refocusing on the core business model; the company has always created a refreshing
beverage brand. Currently, an expansive portfolio will include more than 500 brands including
the calamansi beverage.
The company will use both the internal and external KPIs
The internal KPIs will include the response, delivery, and open rate, and Return on investment
(Evaluation, n.d). The external KPIs will include the revenue per acquisition, cost per
acquisition, task completion rate, average order value, conversion rate, and goal conversions
(Irwin, 2011).
Operations and strategic action
Organization structure and design: to seize the opportunity, the company will reshape the
business; it will look hard to the function configuration and identify zones where it could be
smoother, fasters and more effective. The company can eliminate a layer of functional
controlling and connect regional corporate divisions directly to its head office (Wedel &
Kamakura, 2012, pp. 27). The company can streamline a number of crucial internal courses and
remove obstacles that prevent it from being responsible and operative.
Organizational culture: the company can embrace a culture where individuals feel
inspired to perform the best they can. This will enable people to truly become dedicated to the
organization values as mentioned above. The company brand represents qualities such as

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connecting, sharing, caring, integrity and excellence. Thus, some of the organization cultures
such as one company, one team and one team mirror those attributes.
Human capital and motivation and rewarding programs: the company should introduce
development programs such as peak performance, functional development, and assessment and
development forum, short-term assignment and introduce learning programs for their
workforces.
Operational technologies and process: the company ought to embrace growing and
acceptable driverless delivery systems, digital bots, and 3-D printing technologies so as to avoid
the revolutionary effect on the method the firm has transacted with its users (Andini &
Simatupang, 2014, pp. 68).

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References
Andini, R. A., & Simatupang, T. M. (2014). A process simulation of inventory planning and
control for Minute Maid Pulpy at Coca-Cola. International Journal of Logistics Systems
and Management, 17(1), 66-82.
Andreyeva, T., Luedicke, J., Henderson, K. E., & Tripp, A. S. (2012). Grocery store beverage
choices by participants in federal food assistance and nutrition programs. American
journal of preventive medicine, 43(4), 411-418.
Brownell, K. D., Farley, T., Willett, W. C., Popkin, B. M., Chaloupka, F. J., Thompson, J. W., &
Ludwig, D. S. (2012). The public health and economic benefits of taxing sugar-
sweetened beverages. New England journal of medicine, 361(16), 1599-1605.
Evaluation, M. a., n.d. [Online] Available
at: http://monitoringevaluation.weebly.com/quantitative--qualitative-indicators.html [Acc
essed 3 June 2018].
Freeman, B., Kelly, B., Baur, L., Chapman, K., Chapman, S., Gill, T., & King, L. (2014). Digital
junk: Food and beverage marketing on Facebook. American journal of public health,
104(12), pp. 56-64.
Irwin, T., 2011. Mondaq Connecting knowledge and people. [Online] Available at
http://www.mondaq.com/x/140520/Operational+Performance+Management/
Key+Performance+Indicators+KPIs+What+They+Are+And+What+They+Do[Accessed
3 June 2018]

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Powell, D., & Gard, M. (2015). The governmentality of childhood obesity: Coca-Cola, public
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Terpstra, M., & Verbeeten, F. H. (2014). Customer satisfaction: cost driver or value driver?
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Wedel, M., & Kamakura, W. A. (2012). Market Segmentation: Conceptual and methodological
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