International Agri-Business Marketing: Coca-Cola Analysis

This report provides a comprehensive market analysis of the Coca-Cola Company, examining its operations within the international agri-business marketing context. The analysis begins with an introduction to marketing principles, followed by an overview of Coca-Cola's business. A PESTLE analysis is conducted to assess the political, economic, social, technological, legal, and environmental factors impacting the company. Furthermore, Porter's Five Forces framework is applied to evaluate the competitive landscape, including competitive rivalry, the bargaining power of buyers and suppliers, the threat of new entrants, and the threat of substitutes. The report highlights key findings from the market analysis, such as challenges related to water consumption, regulatory compliance, and evolving consumer preferences. The analysis concludes with a discussion of implications for Coca-Cola's growth and sustainability. The report uses various sources like journals and company reports.

Running head: MARKETING MANAGEMENT
MARKETING MANAGEMENT
Name of the student
Name of the university
Author note

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Introduction to marketing
The marketing operations of the venture enables an organization in enhancing the rate of
awareness among the customers. In this relation, the organizations conduct market assessments
with the objective of examining the preferences and expectations of the customers. Austin and
Gaither (2016) defined market analysis as an important activity for seeking and identifying the
interests of the customers while making a market growth. The modifications in the product
design and the promotional techniques are greatly influenced by the examination of the interests
of the customers. In this relation, most of the organizations conduct surveys and pilot testing of
the products simultaneously for understanding the level of acceptance of the product or service
that is being proposed by the venture. On the other hand, Nestle (2016) observed market
assessment as a procedure for identifying the market competition that might be encountered by
the organizations while making an expansion in the new markets. The purpose of undertaking
the research is to identify and analyze the market of Coca Cola, a non- alcoholic beverage. The
market assessment would support in delineating the position of the venture.
The concerned organization
The concerned organization, Coca- Cola Company is an American multinational
corporation, which is headquartered in Atlanta, Georgia (Coca-Cola 2019). The organization was
founded in the year 1892 and since then the organization focused on developing a range of
carbonated non- alcoholic beverages (Coca-Cola 2019). The unique carbonated propositions of
the venture and the quality of the offerings supported the venture in gaining a competitive benefit
while expanding in the different developed and developing economies. On the other hand, the
improved marketing operations of the organization ensured the rate of operations while operating
in the different markets. The key changes in the organizational operations are grounded on the

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effective assessment of the needs of the customers and the evaluation of the competition that
would be encountered by the same while expanding in the new regions. The operating income
and the revenue of the organization are recorded as US$8.70 billion and US$31.85 billion
respectively in the year 2018 (Coca-Cola 2019). On the other hand, the net income of the
organization is growing with US$6.43 billion in the year 2018 which supported the sustenance of
the same in the different markets (Coca-Cola 2019). The effective understanding of the market
position enabled the venture in developing a competitive benefit of the same while operating in
the different economies.

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Market analysis of Coca Cola
PESTLE assessment of Coca-Cola
Political  The stable political situations of most
of the economies in which the
organization operates enabled the
venture in developing the rate of
operations in alignment with the needs
of the customers
 The US-China trade wars and the
segregation of the allied economies
affected the rate of expansion of the
venture (Kiseleva et al. 2016). On the
other hand, the US China trade
conflict also affected Coca Cola’s
partnership with government backed
Cofco, which is a Chinese brand
(Harmeling et al. 2017)
 The modifications in the laws and
regulations related to taxation affected
the rate of operations of the venture
while making diversified expansion in
the different markets
Economic  The slowed economic growth in most

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of the nations due to the imposition of
the US-China Trade conflicts and
Brexit might affect the capability of
the venture in making dynamic
expansions (Luchs, Swan and
Creusen 2016).
 The maximization of the disposable
income among most of the target
customers enabled the venture in
targeting a wider range of customers
 The Cost cutting techniques that are
initiated by the organization
emphasized on minimizing the
operational costs that are incurred by
the venture while operating in the
diverse economies (Manser Payne,
Peltier and Barger 2017). It
supported the growth and expansion
of the venture while operating in the
different markets.
Social  The changing preferences of the
customers towards healthy and lower
carbonated drinks might affect the

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interests of the organization. Most of
the health conscious consumers opt for
healthy beverages which might deliver
nutritional value to their diet
(Skarmeas, Zeriti and Baltas 2016).
The change in the preferences of the
customers might affect the rate of
operations of the venture while
operating in the different markets
 GenY or the Millennials prefer
experience over the price of the
commodities (Pansari and Kumar
2017). In this relation, Coca Cola
might face significant issues in
adhering to the interests of the GenY
while developing their new line of
products. On the other hand, the
generation specifically focuses on the
quality of the experience over the
price of the commodities which might
affect the interests of the organization
as it aimed at creating happiness
through minimal investments

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Technological  The wider availability of networks in
the different target markets of the
organization would empower the
promotional activities of the venture
(Kim, Shin and Min 2016). On the
other hand, the wider infrastructural
growth and modern machineries
supported the organization in
minimizing the wastes during the
production process. It would enable
the venture in minimizing the rate of
operational costs while operating in
the different markets. The wider
network connectivity and
developments in the infrastructure
supported the venture in developing its
resources while making dynamic
expansions.
 The improvements in the IT based
systems would enable the venture in
developing the range of operations
while making the customers well
aware of the modifications in the

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processes (Austin and Gaither 2016).
On the other hand, the enhanced IT
related operations of the venture
would contribute to its identification
of the preferences and needs of the
customers while developing the range
of operations.
Environmental  The major environmental
considerations that are encountered by
the organization are reliant on the over
utilization of Water and wastage of the
same while manufacturing the
carbonated drinks (Harmeling et al.
2017). Water replenishment activities
and the utilization of more
constructive mechanisms for reducing
the rate of wastes are mandated by the
regulations that are being enforced by
the organization on different
environmental protection agencies.
The adherence to the water protection
acts in the different global economies
have again restricted the free

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functioning of the venture while
expanding in the global markets.
Legal  The legislations that are enforced by
the FDA (Food and Drug
Administration) is required to be
followed by the organization along
with their compliance with ISO 22000
(Pansari and Kumar 2017). The
regulatory actions might affect the rate
of operations of the venture while
operating in the different markets.
Porter’s five force of Coca-Cola
Competitive rivalry
(Moderate)
The existence of large number of competitors
in the market might affect the market share of
the concerned organization, Coca Cola. The
major competitors of the organization are
Pepsi and Dr. Pepper Snapple Group (Nestle
2016). However, the enhanced loyalty of the
consumers towards the offerings of Coca Cola
has moderated the effect of the competitions
that might be encountered by the same due to
the presence of huge amount of competitors.

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Bargaining power of the buyers
(High)
The switching taste of the consumers and the
availability of large number of competitors
providing similar products or enhanced
different beverage offerings might maximize
the bargaining power of the buyers. Most of
the Millennials prefer experience over loyalty.
Therefore, the organization encounters severe
threat to switches in the preference patterns of
the customers due to lower satisfaction while
consuming Coke (Austin and Gaither 2016).
Bargaining power of the suppliers
(Low)
The bargaining power of the suppliers are low
due to the presence of large number of
suppliers in the different markets where the
organization operates. The enhanced
competition among the suppliers minimizes
the bargaining power of the same while
providing the organization with a better
competitive advantage.
Threat of new entrants
(Low)
The organization holds lower threat of new
entrants as the same operates in more than
200 countries which added to the competitive
edge over the new entrants (Kim, Shin and
Min 2016). On the other hand, the wider

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brand recognition of the organization would
support the venture in overcoming the issues
relating to the new entrants.
Threat of substitutes
(Moderate)
The beverage industry includes organizations
offering different drinks relating to fruit
juices, carbonated drinks and other non-
alcoholic beverages. Therefore, the
organization face significant threats from the
developments made by the substitutes.
However, the unique propositions that are
made by the organization would support the
same in maintaining the efficiency of the
operations in alignment with the needs of the
customers.
Findings from the market analysis
The market assessment of Coca Cola identified that the organization encounters issues
relating to water consumption in the production process and the quality based regulations that are
imposed by FDA. Moreover, the changing tastes and preferences of the Millennials mandated the
organization to refurbish the line of products with the objective of gaining the competitive edge.
However, the loyalty of the consumers and the brand image of the venture ensured the
uninterrupted growth and expansion of the venture.

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Conclusion
Therefore, from the above assessment it might be stated that market assessment of the
Coca Cola Company ensured clear identification of the issues that are being faced by the venture
while operating in the different markets. The assessment of the competition, the market
environment and the expectations of the customers enabled in developing an idea of the future
steps that might be considered by the venture for its growth and sustenance.