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The Coca-Cola Company1

COCA-COLA ANALYSIS
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The Coca-Cola Company2
The Coca-Cola Company
Since its incorporation in 1892, the Coca-Cola Company has dominated in the beverage
industry for years. However, competition in this industry is inevitable and fierce rivals like the
Pepsi are always on the move working tirelessly to snatch Coca-Cola’s market share and
dominance in the industry through effective marketing strategies. The company has been using
the sales metric to gauge whether it is becoming better or worse. Of late the company has
realized stagnation and fluctuation of sales which have pulled them behind the rival competitor
Pepsi. The sales Coca-Cola must, therefore, find creative ways through which they can amplify
their passionate followers through better marketing strategies and effective deals. As the firm’s
marketing manager, I have been directed by the top management to use the marketing
department to improve the incorporation’s profitability and performance. As the marketing
manager, I perceive that this vision can be achieved through product diversification, developing
new products, product innovation to penetrate new markets, and creating new markets for the
existing Coca-Cola’s products.
Dealing with a variety line of products is hectic, and the Coca-Cola Company has cash
cows, Star products Question marks, and Dogs. The cash cows bring a significant amount of
income to the company. The products can be able to generate enough sales which are capable of
gaining a significant share in the market that it specializes. The Coca-Cola brand has been
operating as a company’s cash, the reason being this brand is being sold in 200 countries in a
mature beverage industry (Arnett 2016, p. 4). The industry is mature, and the company requires
just little effort to keep sales high. Question marks products have a dubious future market, and
they cannot be easily evaluated and understood. These types of products are already in the
market although they have not established themselves like the star products and therefore they

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aren’t recognizable as stars. Although the market has its growth opportunities, the products in
this category have not yet taken the benefits of these opportunities in an efficient way. Minute
Maid product from the company is one of such products (Arnett 2016, p. 6). Although in some
places it has high sales volumes it is not widely spread like coke.
The Star products have a high market value than the other products produced by the same
company. Star products are in a market that is in the development phase, and further addition of
market share is possible. Bottled water from the Coca-Cola Company is the star because mineral
water industry is evolving all over the world attracting more customers (Arnett 2016, p. 10). The
Dogs product consists of products that are part of the mature industry, but they have a small
feasibility to the company because they generate very minimal revenues. The company is forced
to take minimum efforts towards their sales and Coca-Cola’s product in this category is CocaCola life product. This product has not yet gained the expected market share (Arnett 2016, p.9).
How much to invest in stars, question marks, dogs and cash cows is an important strategic
decision that the company must make to be able to exploit the available market opportunities
using the products and leap maximally.
The Coca-Cola sells over 2, 700 beverage product in the market, ranging from sparkling
beverages like sports drinks, waters, juice drinks, energy drinks, and teas. Also, it produces four
of the top nonalcoholic beverages which include diet Coke, Fanta, Sprite, and coco-cola. The
Coca-Cola Company uses the market analysis strategy to evaluate the external and internal
business environment (Palmer 2012, p.16).These factors are the ones that the firm uses to watch
the internal and external factors which are affecting the business because the factors have an
enormous influence to maintaining its achievements in the beverage industry. The internal
business environment affects the company from within, and this entails the firm’s management

The Coca-Cola Company4
whereas the external environment affects the entire company or economy. The Company uses the
SWOT analysis and the Pestle analysis to evaluate the company’s internal and external
environment.
The Coca-Cola Inc. utilizes the SWOT analysis to keep watch of its threats and
opportunities in the market. It is a culture that the firm has used for a very long time. Overromanticizing is an aspect highly prevalent in Coca-Cola’s products. Over-romanticizing has
been a principal weapon that the firm has been using, and this is because many people are
attracted to such products thus making the company hold out a large market share (Baines and
Page, 2013 p. 14). Also, it is common to find the appearance of Coca-Cola brands in hats and Tshirts to create a memorable experience for the customers. It is a great strength that the firm
possesses over its rival competitors. The Company has vast opportunities which it can explore
and today, the Coca-Cola’s competitive position is being affected by product recognition. It has
an opportunity to use its trademark name as a chance, and this is so because over 90% of world’s
population recognizes the Coca-Cola’s trademark name. Over the past few years, the company’s
primary concern has been to make the brand better accepted by the consumers across the globe.
On the other hand, the company’s positioning, as well as the sales have significantly been
affected by increased variation in packaging although most of the customers have not been
impacted by innovative products. Also, the Coca-Cola’s bottling organization can take many
emerging opportunities across the globe to embrace the opportunity of facilitating a diverse and
extensive environmental region
In the present, upcoming competitors are not a significant threat to the Coca-Cola Inc.
However, replacement of products is the biggest threat that the company faces because, although
the soft drink industry is strong, customers are not necessarily married to it. Probable and endless

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replacements such as milk, coffee, tea, and milk put pressure on the company due to increased
health awareness among the consumers around the globe. Also, numerous fluctuations in the
market pose a significant threat to the firm because it makes the company incur a lot of losses.
The PESTLE analysis is a valuable tool for use by marketers to evaluate the external
environment of a company. The Coca-Cola external environment can be affected by factors
relating to Political, Economic, Social, Technological, Environment and Legal Perspectives.
Evaluating all these factors from different angles help the firm to understand how the factors are
likely to affect the business operations and performance of the company. Also, it contributes to
sustaining the corporation’s competitive advantage because a frequent PESTLE analysis enables
the firm to track down the progress of the competitors to improve the business’s market position
and win the customer loyalty (www.suredividend.com, 2016).
The political environment significantly affects the marketing decisions of the business.
These factors influence the economic conditions of a country which are then reflected in business
operations. These factors include a country’s fiscal policies, pressure groups, and government
agencies, among others. Coca-Cola is on alcoholic beverage company, and therefore all its
ingredients should meet the Food and Drug Administration guidelines. Also, it has to adhere to
rules and regulations relating to import and export and income taxes. Also, the political crisis
like protests makes it difficult for the company to penetrate due to fluctuations in demand.
Economic factors in their part define the sales and price of the product, as well as the purchasing
capacity of the customers (Baines, 2013, p.25). These determinants include economic gro...