Coca-Cola's Global Market Strategy

This assignment analyzes Coca-Cola's global marketing strategies. It examines internal strengths and weaknesses using SWOT analysis, as well as external factors like political, economic, social, technological, legal, and environmental influences through PESTLE analysis. The assignment further delves into Coca-Cola's pricing strategies, target market focus, and competitive positioning within the global marketplace.

Running head: Marketing & management
Marketing & management

Marketing & management
Table of Contents
Introduction.................................................................................................................................................3
Description about organization and industry..............................................................................................3
Growth....................................................................................................................................................3
Profitability..............................................................................................................................................4
Environmental analysis (Pestle analysis).................................................................................................5
Market segmentation..................................................................................................................................6
Primary target market.................................................................................................................................6
Secondary market.......................................................................................................................................7
Level of involvement of primary target market in organizational decision making.....................................7
Nature of competition.................................................................................................................................8
Strengths.................................................................................................................................................8
Weaknesses.............................................................................................................................................9
Positioning map of Coca-Cola......................................................................................................................9
Conclusion.................................................................................................................................................10
References.................................................................................................................................................11
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Marketing & management
Introduction
Marketing research and survey play a significant role to examine and evaluate the
environment and challenges of the market. It also helps to assist and guide the firm in promoting
and enhancing the operations and practices. Here is the discussion about the company, which has
been chosen in the previous assessment, i.e. Coca-Cola Company. The paper explains the
growth, pestle analysis, profitability and current trends of the organization. Furthermore, the
report also explains the significance of the primary and secondary market of the company. None
of the firm can survive its business without a target audience. Coca-Cola is one of the biggest
leaders in the beverage sector, but still, some challenges and barriers are faced by the firm. It
depicts that how primary market affects decision-making process in an organization. At the end,
a positioning map is formulated by considering the primary market, competition, and level of
involvement of the target audience.
Description about organization and industry
Coca-Cola Company is an American multinational beverage corporation, marketer, and
retailer of nonalcoholic beverage syrups. The firm is famous for its flagship products and
services. The organization was founded in 1886 with its headquartered is located in the United
States. Coca-Cola franchise is the biggest beverage industry in the world. It dominated a 48% of
the global market share. The firm operates its business activities and operations in more than 200
countries. The company offers a wide range of products such as juices, tea, coffee, sports
beverages, and water. Muhtar Kent is the chairmen of the organization with James Quincey as a
chief executive officer and president. The main objective of the firm is to maximize and increase
the long-term return to shareholders while being attentive to overall roles and responsibilities. In
today’s modern world, Coca-Cola Company is increasing and maximizing returns and revenue of
the firm. The firm is a soft drink empire and serves customers across the world (Coca Cola, 2017).
Growth
Coca-Cola is the biggest seller of non-alcoholic beverages in the world. The company
reported fall in revenue in the third quarter by 14.62% to $ 9, 078,00 million from the same
quarter in 2016. On the other hand, the dividend of the organization has been increased.
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Marketing & management
Approximately, 22,000 Coca-Cola beverages and soft drinks are consumed every second in the
market. Apart from this, the firm uses growth and corporate level strategies to increase the
demand and sale of the products and services.
(Source: Adam Levine, 2017)
Profitability
The statistic indicates the Coca-Cola financial key figures and company’s revenue from
2009 to 2016. In 2016, the firm revenue amounted to 35,12 billion U.S. dollars. The organization
is a producer, manufacturer, marketer and retailer of non-alcoholic beverages and Coca-Cola is
well known and famous for its soft drinks and beverages in the market (Statista, 2017). The
revenue and income of the company have been shown in below diagram.
(Source: Statista, 2018)
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Marketing & management
Environmental analysis (Pestle analysis)
PESTLE analysis is conducted for analyzing and identifying various macro environment
factors in a country that influence progress and success of the firm. It comprises several macro
environment factors such as political factors, economic factors, social factors, technology, legal
and environmental factors (Mashhadi & Ijaz-Ur-Rehman, 2012). The pestle analysis for Coca-
Cola Company has been discussed below.
Political factors: These factors play an integral role to achieve objectives and goals of the firm.
The political factors include tax policy, trade limit, environmental laws and regulations imposed
on the recruiting and appointing workers and services rendered by the government. Coca-Cola
needs to monitor political factors to recognize and measure strengths and weaknesses of the
competitors.
Economic factors: It is significant to consider economic factors in order to gain long-term
profitability and returns. Coca-Cola distributes its products different countries. These countries
follow different cultures, desires, values, and customers. The key economic elements include
disposable income, inflation rate, interest rate, unemployment rate, gross domestic product, retail
price index and exchange rates. All these factors affect demand and supply of the firm. These
factors should be considered by the organization to gain outputs and results.
Social factors: Coca-Cola distributes its beverage products in several countries. Therefore,
social factors affect the sustainability of the organization. The social factors include customs,
values, belief, and culture. For example, in Japan, the company creates 30 alternatives flavors to
appeal to Japanese consumers. On the other hand, in America, people focus on their health. The
organization needs to respond to these needs, requirements, and desires by creating healthy
products and services (Anders, 2011).
Technology factors: Coca-Cola focuses on technology development to expand and flourish
business activities and operations globally. The company has factories in Britain with the top of
the name machinery to ensure quality product development and fast delivery items. The firm
uses social media technology to connect with the target audience (Ashurst, 2016).
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Marketing & management
Legal factors: The association maintains and retains all rights and legislation related to their
business, including future and past products developed and built with a patented process.
Environmental factors: Coca-Cola is influenced by water accessibility. Water is essential for
soft drink development. Along with this, climate changes and weather also affect the growth and
development of the firm. Various water accessibility issues are faced by the firm. As a result,
Coca-Cola company will have to suffer loses.
All these are the significant factors that are affecting the business growth of Coca-Cola company
in the United States. Therefore, the organization needs to consider these factors to evaluate and
analyze the plans, policies, and strategies of the competitors (Rothaermel, 2015).
Market segmentation
Market segmentation is the process of segmenting a broad customer or business market
into different sub-groups or consumers on the basis of choices and characteristics of people.
Coca-Cola uses different methods and techniques to divide the market into different customers.
The firm divides its market between primary and secondary market (Wedel & Kamakura, 2012).
The target market for Coca-Cola Company has been stated below.
Primary target market
The primary target market is the target audience of the market that provides better
opportunities to the firm for maximizing the sale of its beverage products. The company is
monitoring needs, requirements, and choices of customers. Coca-Cola divides its primary market
on the basis of demographic and behavioral (Powell & Gard, 2015). The primary target market
of the organization is 12 years older. Along with this, the people who are the between 20 to 30
years also prefer Coca-Cola beverage products. The drink is conveniently packaged to take with
customers on the go anywhere. Coca-Cola drink is considered most successful drink that is
popular in many countries. Furthermore, athletes also prefer soft drink of the firm because it is
healthier for people. These are the target audiences, which help to increase profitability and sales
in the competitive market. In addition, primary target customers are the people who buy its
products to fulfill the basic needs and demands (Weinstein & Cahill, 2014).
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Marketing & management
Secondary market
Secondary target market plays an integral role to attract and retain more consumers in the
global world. In the secondary market, consumers may have fewer needs, requirements, and
demand for the beverage products of the firm. For Coca-Cola, the secondary market is adults and
teenagers (De Mooij, 2013). This target segment involves student from schools, colleges who
require soft drinks to become healthy and well being. In this market segment demand and
requirements of Coca-Cola products and services are less in comparison to the primary target
market. Now it is assumed that the company should focus on the primary and secondary target
audience to increase and enhance the sale of food and beverage products. The firm is also trying
to target health-conscious consumers in the global market. For this purpose, the organization is
enhancing and encouraging advertisement and promotional strategies (Paliwoda & Thomas,
2013).
Level of involvement of primary target market in organizational
decision making
Market segmentation plays is an integral role to make effective and dynamic decisions.
Coca-Cola divides its market on the basis of psychographic, behavioral, demographic and
geographic attributes and features. Primary target market is an essential part of the company to
make unique decisions. When Coca-Cola produces new food and beverage products, enormous
types of marketing research and survey are conducted by the organization to attract the target
audience. The level of involvement of primary target audience is too high to participate in
decision-making process in the organization. After considering the primary target audience,
Coca-Cola is able to make a decision regarding to produce new products. The firm focuses on
the needs, desires, and choices of the target market to introduce new beverage products and
services. After using targeting and segmentation strategies, the company will make decisions
related its positioning of food and beverage products (Coenen, Huitema & O'Toole Jr, 2012).
For example, Coca-Cola is introducing new soft drinks and beverages by dividing the
target market on the basis of age, gender, and caste. The organization launches its products as per
the demands and needs of the primary target market. After segmenting the market, the firm
focuses on the targeting to attain mission and vision of the firm (Oliver, 2014). Various types of
marketing surveys and advertisement campaigns are conducted by the company to reach its
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Marketing & management
target market. In the last phase, Coca Cola determine consumer’s perceptions and wants by using
positioning strategies. The association also focuses on the positions of competitors in the global
market. It also focuses on tastes and preferences of consumers to stand out against the
competitors in the market. Now it can be said that primary target market highly involves in the
decision-making process to make an innovative decision in the organization (Solomon, Russell-
Bennett & Previte, 2012).
Nature of competition
When an organization launches new products and services in the market, various
researchers and surveys are conducted by the firm to evaluate and analyze the nature and level of
competition in the competitive market. It also helps to analyze and identify the risks and
opportunities of the market. There is immense and high competition exists among the soft drink
and beverage companies in the market (Keller & Price, 2011). Pepsico, Red Bull, Fanta, Coke,
and Sprite are the primary competitors of Coca-Cola Company. PepsiCo is the biggest
competitor of the company that affects the trading activities and operations of Coca-Cola. SWOT
analysis and porter five model are used by the firm to identify the strengths and weaknesses of
competitors (Nair & Selover, 2012). The comparison and contrast between strengths and
weaknesses of Coca-Cola and PepsiCo have been discussed below.
Strengths
Coca Cola PepsiCo
 Effective and dynamic brand equity is
maintained by the firm.
 It provides a large market share to expand
and explore the business activities.
 Coca-Cola uses attractive and fantastic
marketing and promotional strategies.
 It provides effective distribution network
and maintains customer’s loyalty.
 It is one of the significant and well-
known brands in the world in the
beverage and food sector.
 It uses effective and unique product
portfolio.
 Employee strength of the firm is approx
300,000 people.
 It uses effective supply chain network
to increase the demand for the products.
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Marketing & management
Weaknesses
Coca-Cola PepsiCo
 There is high competition in the
market.
 Product diversification is poor and low.
 Water management is another issue in
the organization and it does not provide
healthy beverages.
 Many foods and beverage products hurt
image and position of the firm.
 Heavy and strong competition in their
soft drinks category.
From this competitive analysis, it can be assumed that the firm maintains one of the
largest positions in soft drinks and food industry. The comparison and contrasting of strengths
and weaknesses of the firm show that both the organizations are rivalry with their own policies,
plans, strategies and attributes to beat the competitors in the world.
Positioning map of Coca-Cola
After taking consideration to primary target audience, competition, and level of
involvement of primary market, a positioning map is originated for Coca-Cola Company. By this
positioning map, the firm indicates perceptions and wants of its customers in the market. The
positioning map for Coca-Cola is drawn below.
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Marketing & management
High calorie
Good taste Bad taste
Pepsi
Coca Cola Life
Sugar free soft drink
Low calorie
Conclusion
On the above-mentioned analysis, it can be evaluated that Coca-Cola maintains an
effective and dynamic position in food and beverage industry across the world. The trading
activities and operations of the firm are continuously growing with increasing the demand for its
products and services. Pestle analysis and SWOT analysis show strengths and weaknesses of the
competitors in the global world. Apart from this, the firm also focuses on the target market to
promote and enhance its business operations and activities. Competition also influences the
growth rate of the firm adversely. Therefore, the firm set appropriate prices to attract and retain
more consumers in the competitive market. In addition, a positioning map is created by the firm
on the basis of competition and level of involvement of customers.
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Marketing & management
References
Anders, J. (2011). Coca-Cola’s Marketing Strategy: An Analysis of Price, Product and
Communication.
Ashurst, P. R. (2016). Chemistry and technology of soft drinks and fruit juices. John Wiley &
Sons.
Coca Cola., (2017). Our company, retrieved on 5th January 2018,<
http://www.coca-colacompany.com/our-company>
Coenen, F. H. J. M., Huitema, D., & O'Toole Jr, L. J. (Eds.). (2012). Participation and the
quality of environmental decision making (Vol. 14). Springer Science & Business Media.
De Mooij, M. (2013). Global marketing and advertising: Understanding cultural paradoxes.
Sage Publications.
Keller, S., & Price, C. (2011). Beyond performance: How great organizations build ultimate
competitive advantage. John Wiley & Sons.
Mashhadi, A. H., & Ijaz-Ur-Rehman, Q. (2012). Impact of external environment on the
performance of the fast food industry. International Journal of Management, Economics
and Social Sciences, 1(1).
Nair, A., & Selover, D. D. (2012). A study of competitive dynamics. Journal of Business
Research, 65(3), 355-361.
Oliver, R. L. (2014). Satisfaction: A behavioral perspective on the consumer. Routledge.
Paliwoda, S., & Thomas, M. (2013). International marketing. Routledge.
Powell, D., & Gard, M. (2015). The governmentality of childhood obesity: Coca-Cola, public
health and primary schools. Discourse: Studies in the Cultural Politics of
Education, 36(6), 854-867.
Rothaermel, F. T. (2015). Strategic management. McGraw-Hill Education.
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Marketing & management
Solomon, M., Russell-Bennett, R., & Previte, J. (2012). Consumer behaviour. Pearson Higher
Education AU.
Statista., (2017). Coca Cola’s revenue and income from 2009 to 2016(in million U.S dollars), retrieved on
5th January 2018,< https://www.statista.com/statistics/264423/revenue-and-financial-results-of-
coca-cola/>
Wedel, M., & Kamakura, W. A. (2012). Market segmentation: Conceptual and methodological
foundations (Vol. 8). Springer Science & Business Media.
Weinstein, A., & Cahill, D. J. (2014). Lifestyle market segmentation. Routledge.
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