Coca-Cola: Analysis of Technology, Global Sales, and Market Strategies

This report provides a comprehensive analysis of Coca-Cola's global sales management, focusing on the pivotal role of technology in driving sales growth and expanding brand reach. The study examines how Coca-Cola utilizes technology across various aspects of its business, from production and distribution to marketing and customer engagement, to gain a competitive edge. The report assesses the effectiveness of these technological implementations, supported by sales data and market analysis, including a comparison with PepsiCo. Furthermore, it identifies the channels Coca-Cola leverages for success, such as online platforms, offline mediums, and sponsorships. A PESTEL analysis is conducted to evaluate the external business factors influencing Coca-Cola's global operations, including political, economic, social, and technological challenges. The report concludes with recommendations for future growth opportunities, based on the research and observations made throughout the analysis.

Running head: GLOBAL SALES MANAGEMENT
Global sales management
Name of the student
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Introduction
In the current business scenario, technology plays an important role in determining the
competencies of the organizations. This is due to the reason that technological advancements are
evident in the current time and leveraging on them will only increase the organizational
efficiencies. Moreover, it should also be noted there are diverse challenges for the contemporary
business organizations that are being faced by them and technological leadership can play an
effective role in mitigating these challenges to a certain extent (Pagani and Pardo 2017). The
intensity of these challenges is more for the multinationals as they are facing from the
perspectives of different countries. Thus, it is important for the major multinationals to review
their external business environments and initiate the business strategies accordingly.
Determination of the external challenges will also help the contemporary business organizations
to design their strategies accordingly.
Among the major multinationals across the world, Coca Cola is one of the leading names
with having their presence in majority of the countries across the world. Thus, determination of
the external environments will be more varied in the case of Coca Cola. In addition, they are also
known for their extensive usage of technologies in their business operations. Thus, there is huge
scope evident for analyzing the business factors of Coca Cola (Yadav, Stapleton and Van
Wassenhove 2013). This report will discuss about the different factors in technological
development for Coca Cola, which will include utilization of the technology in driving the sales
growth, channels being used by them and the extent to which the technologies of Coca Cola are
successful in extending the reach of the brand. Furthermore, PESTEL analysis will also be done
in order to review and identify the critical external factors for Coca Cola in terms of their global

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business operations. Based on the identified factors, a few recommendations steps will be
discussed.
Role of technology in sales growth
It is identified that Coca Cola is utilizing the use of technologies in different steps of their
business operation and the core objective is not only to drive sales but also increasing the internal
efficiency. There are few technologies being initiated by them, which are focused on increasing
the sales volume while some others are focused on other areas. However, on the other hand, it is
identified that Coca Cola has initiated the use of technologies across their operational process
involving each steps (Elmore 2014). This is ensuring that the effectiveness and efficiency of the
internal process of Coca Cola is getting enhanced, which is in turn offering favorable outcome
from the market. For instance, Coca Cola is leveraging on the advanced technologies in their
production process by means of automated bottling process. This is helping them to increase the
productivity rate in the production process and increase in the average production. It should also
be noted that with the increase in the production level, economies of scale is being gained by
Coca Cola (Pfizer, Bockstette and Stamp 2013). Hence, the profit margin of Coca Cola is more
compared to their contemporaries. Cost leadership is being gained by them due to this
automation in attracting and retaining the customers.
It is also identified that usage of new technologies by Coca Cola is evident in the value
distribution process also, which is also contributing in increasing their sales revenue and
volumes. For instance, they have introduced greener bottles in the market in order to reduce the
environmental impact from the plastic pet bottles. Technological advancements in developing the
packaging helped Coca Cola to increase the value proposition for the customers. In addition, this

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is also enhancing the sustainable approach of the brand in the market. The above identified
technology in the production process of Coca Cola is enabling them in gaining cost leadership
while the technological advancements in the value distribution process are enabling Coca Cola in
initiating differentiation strategy. Lastly, it is also identified that they are also initiating
technological advancements in capturing value (Alvarez 2015). This is due to the fact that newer
promotional technologies such as automated dispensers are being introduced by them. With the
help of these dispensers, customers can try different combinations of beverages from Coca Cola.
This data is being collected in order to have the understanding about the dominant trends of the
customers along with providing the innovative choice to them. Thus, it is ensuring better brand
recall value for the customers along with offering the future products according to the dominant
taste and preference pattern in the market. All of these usages of technologies are ensuring the
value proposition is maximum for the customers and are contributing in the sales growth.
Effectiveness of the initiated technologies

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Figure: 1
Sales growth comparison of Coca Cola and PepsiCo
Source: Yglesias 2013
It is important to understand the effectiveness and utility of implemented technologies of
Coca Cola in order to state their viability. As discussed in the earlier section that the core
objective of the use of technologies by Coca Cola, the sale data is proving the fact. In the above
figure, it is showing that Coca Cola is maintaining a significant higher position in terms of the
market growth. This is mainly due to the reason of effectiveness and advantages of the used
technologies (Gandhi 2014). The added profitability and sales volume being gained by Coca
Cola from the implementation of the new technologies is maintaining the gap with their closest
competitor. In addition, the automation in the production process of Coca Cola is ensuring the
higher production rate, which is further helping in reaching out to newer markets and gaining
higher level of market penetration. Thus, it can be concluded that the initiated technologies by
Coca Cola are successful in extending the reach of the brands.
Identification of the channels for driving success
It is identified that there are different channels being leveraged by Coca Cola in driving
their success. One of the major channels being identified is online mediums. Coca Cola is
involving online mediums for promotion and distribution of the products. For example, social
media and online advertising is being used by Coca Cola in promoting their new products and
gathering the feedback regarding their older products. On the other hand, products of Coca Cola
are also available in the online marketplaces. This is further ensuring better customer
conveniences and larger geographic areas to cater (Danaher and Dagger 2013). Another channel

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being used by Coca Cola is offline medium. Technological advancements such as dispensers and
vending machines are the part of the offline channels of Coca Cola. This medium is majorly
focused due to the reason that Coca Cola is having higher market penetration.
Another medium being used by Coca Cola in terms of drive success is sponsorships.
Coca Cola is following extensive sponsoring activities and is having their presence in different
sporting events across the world. This is helping in targeting huge audiences at once along with
enhancing the brand recall value of the customers. This is due to the reason that target customers
of Coca Cola are majorly the younger generations, which are having preferences for the sporting
events as well. Thus, initiating the sponsorship activities in these events is helping Coca Cola in
getting aligned with the preference pattern of the target customers.
Determination of the external business factors
Political factors
Coca Cola is facing diverse political factors in their global business operations. This is
due to the reason that Coca Cola is having their presence across the world and thus different
political scenarios are being faced by them in different countries. However, one of the major
political issues being faced Coca Cola in entering in the market of India in the late seventies
(Gopinath and Prasad 2013). The then socialistic political norms caused Coca Cola in facing
hindrances in importing their concentrates. This caused exit of them from the India market but
they later made a comeback. Thus, these types of challenges are being faced by Coca Cola in
different countries. United States is the capitalistic country and being Coca Cola based out of the
United States, they are facing problems in doing business in communist countries due to the
larger interference of the government. For example, Coca Cola is still not having their

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operational facilities in Cuba but with the recent improvement of ties between Cuba and the
United States, it is probable that Coca Cola will invest in the country. However, due to the
communist political structure in Cuba, Coca Cola may have to face higher government
interference.
Economical factors
Coca Cola is already having high competition in the market in the forms of PepsiCo.
Moreover, there are number of other regional and country specific brands posing challenges in
the local market. Thus, higher competition for Coca Cola is affecting their profitability and
return in investments in their foreign market operations. Entering in a new foreign country by
Coca Cola will be accompanied by the presence of other global and domestic players in the
market (Kasemset et al. 2014). On the other hand, Coca Cola will face the issue of economic
downturn in entering in a new country. This is due to the reason that emergence of the economic
recession will reduce the purchasing power of the customers and the business viability of Coca
Cola. Thus, the probability of getting the favorable return from the foreign investments will get
reduced.

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Figure 2: Global soft drink market share
Source: (Isaac Pino 2019)
The above figure shows that Coca Cola is facing intensive competition in the current
market scenario. It is identified that PepsiCo is just trailing behind Coca Cola and the difference
is low. In addition, the market share of the smaller brands such as Dr. Pepper Snapple is
gradually increasing in their existing market. Thus, prior to the entry in a new market, it is
important for Coca Cola to review the existing competitive scenario.
Social factors
Social factors are also having higher sets of influence in the business of Coca Cola. This
is due to the reason that changes in the taste and preference pattern of the customers determine
sales growth of Coca Cola. In this case, Coca Cola is facing the differences in the taste and
preference pattern of the customers from different regions. This is also evident in their diverse

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product portfolio and country specific products such as Thumbs Up in India. However, in
entering in a new market, Coca Cola will face the challenge of managing their word of mouth.
This is due to the reason that Coca Cola is accused for number of unethical practices such as
depletion of ground water levels (Amienyo et al. 2013). In addition, the recent negative publicity
against the health issues of carbonated soft drinks will also prove detrimental for Coca Cola.
Coca Cola is having majority of their products in the carbonated segments. Hence, the market
potentiality in the new market will be affected. They are already facing these challenges in their
existing markets as well. The recent introduction of fruit based drinks such as Minute Maid is
denoting the importance for changing the existing product portfolio of Coca Cola.
Technological factors
In the above sections, the effectiveness if using of technologies is also being discussed.
However, it should be noted that there are few challenges also to be faced by them in terms of
technological development. One of the major challenges will be the improper access to
technological infrastructure in different countries. This is due to the reason that Coca Cola will
not have the same level of technological infrastructure as they are having in developed countries
across the world. Thus, in entering a new market especially in the developing or underdeveloped
market, it will be a major challenge for Coca Cola to get access to the desired technological
infrastructure. On the other hand, Coca Cola is incurring huge cost in developing the
technologies. This is ultimately increasing the average cost of operation. The more will be the
intensity of technology in the internal process of Coca Cola, the more cost they will incur in
transferring them in a new market.
Environmental factors

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Environmental factors will also have influence on the business operation of Coca Cola.
This is a major determining force for Coca Cola due to the reason that Coca Cola was earlier
accused for environmental degradation. In entering in a new market, it is important for them to
identify the potential environmental standards that should be followed. Initiation of the
environmental regulations such as carbon neutrality and managing the social responsibility will
pose challenges for Coca Cola in maintaining the return on investments.
Legal factors
Legal factors will determine the business standards and regulations that should be
followed by Coca Cola in operating in a certain market. Different countries are having
restrictions in the foreign investments while some others are capping the limit of foreign
investments in the particular sector. Thus, in entering in a new market, Coca Cola may face the
issue of partnering with a local brand (Powell et al 2014). In addition, the legislations in relation
to consumers will also pose challenges. This is due to the fact that there already number of
countries introduced tax for junk foods and carbonated drinks. This will be challenging for Coca
Cola in the tapping the customers in the new market.
Recommendations
 It is recommended that Coca Cola should opt product development strategy due to the
reason that with the help of product development strategy, they should come up with
healthier alternatives. This will ensure that challenges being faced by them due to
carbonated drinks will get mitigated. In addition, offering healthier alternatives will also
enable Coca Cola to cope up with the changes in social factors.

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 It is also recommended that the approach of the technological development process for
Coca Cola should get changed from business based to sustainability based. This will
enable Coca Cola to leverage on the development of technology in enhancing the
business sustainability as well as reducing the impact on the environment. This approach
will also ensure proper determination of the ethical factors.
 Lastly, Coca Cola should initiate the market adaptability approach in entering in a new
market over initiating product standardization. This is because of the fact that the
products should be designed in accordance to specific trends and preferences of the target
market. This will ensure higher market penetration for them.
Conclusion
This is concluded that technology plays an important role for Coca Cola in terms of
enhancement of their business and sales growth. In this report, it is identified the different
technologies being initiated by Coca Cola in their business process. Majority of their
technologies are helping Coca Cola on increasing their sales. In addition, the channels in creating
value for Coca Cola are also identified and discussed. The major external environmental factors
relevant for Coca Cola are discussed using the PESTEL framework. There are number of
challenges being faced by Coca Cola in terms of entering a new market and existing market.
Based on the identified challenges, a few recommended steps are also discussed. These steps will
help Coca Cola in ensuring the long term business sustainability.

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