Category: Coca-Cola

Introduction

This is a marketing research and planning project for the Coca-Cola Company based in the United Kingdom. It has been prepared by a member of the Companys marketing study group. It focuses on the various aspects of the company.

They include corporate objectives, market overview, marketing audit (internal and external analyses). Apart from this, it provides a marketing strategy for the launch of a new product  Coke super that the Coca-Cola Company is to introduce in the market. Data used in this study has been obtained from secondary sources recorded by reputable scholars.

Corporate Objectives

Regarding its sales targets, Coca-Cola has made three main commitments. First, the clients are to be given the freedom to be able to purchase the carbonated company drinks from a supplier that they choose. Secondly, customers should not be accorded rebates for purchasing same more product than the one they had bought previously.

Thirdly, in cases where the customer only wants the best brand, additional purchases should not be rewarded. Additionally, retailers should be allowed to utilize at least twenty percent of the Companys coolers for a product of their own choice (Joelson, 2006, p. 388).

As far as profit making is concerned, the company has a vision of ensuring that its shareholders receive best returns while it remains financially responsible (The Coca-Cola Company, 2010, p. 1). Coca-Cola has experienced a growth in its global market by about 5% in 2010. This has been due to growth in its market in several regions of the world such as Africa, Europe, Pacific, and North America.

However, Coca-Cola occupies about 33.7% of the market share in the United Kingdom (Anderton, 2000, p. 366).

Although Europe has been experiencing deficit concerns while the Chinese economy has witnessed declining adjustments that has impacted on the consumer confidence, the company is still keen on investing in global operations and in its brands. This plan is likely to redeem back consumer confidence (The Coca-Cola Company, 2010).

Market Overview

The Unique features with the drinking company in the United Kingdom are. Cultural and legal differences are addressed by the Coca Cola Company through the use of dress design. Non-uniformity of customers in diverse geographical markets is also dealt with in the same way. There are two main regions where the company sells its soft drinks. These are North America and Europe.

Whereas Europe accounts for about 25% of Coca-Colas sales North America takes about the remaining 75% of the companys sales (Hellriegel and Slocum, 2007, p. 402). Through the place design, Coca- Cola is able to sell products that suit the tastes and preferences of the clients. For example Appletise, and Five-alive, among others are examples of products that Coca-Cola sells to through its market in Europe but not in the United States.

Coca-Cola and PepsiCo have dominated the soft drink market for a long period. They create brand loyalty by investing lucratively in advertising and promotion. This strategy has made it hard for any other new company to penetrate into the market and take away the market share from the two corporations.

Any attempts by a new company to get into the market are countered by these two companies taking measures that include lowering their prices. Such a move causes the new company to hold back its plans to expand their operations (Hill and Jones, 2009, p. 45).

Several trends have dominated the soft drinks market and some of them are likely to be maintained in future. First, there has been a reported increase of loyal consumers of soft drinks in Europe, and this trend is anticipated to carry on in future. Majority of the soft drinks now promote their naturalness by having information on their labels that describe the natural aspect of their flavor.

Secondly, there have been health concerns regarding drinks. Causes of most chronic diseases have been attributed to the ingredients that are contained in some sugary drinks. Examples of such diseases are obesity, dental decay and many others. Most industries that produce soft drinks have responded to these concerns by carrying out some changes in both drink formulations and flavors (Business Insights, p. 2).

Thirdly, most consumers of soft drinks are becoming more receptive to new flavors when they are selecting food and drinks for consumption. Consumers in non-tropical countries are more inclined to tropical fruits, which is marking a crucial trend in the soft drink industry in such nations.

The development of soft drink flavor centers on flavors that enhance functional benefits and those that are obtained from natural ingredients (Business Insights, p. 3).

Marketing Audit

The Marketing Mix

The marketing mix entails some controllable variables that can be used by a business organization to meet its objectives.

In analyzing the marketing mix of a company, four aspects are key. They include the product, price, place, and promotion.

Product Strategies

With respect to the product aspect, Coca-Cola has about 3300 products in more than 200 nations globally. The brand name of the Company is Coca-Cola and the drink type produced is the soft drink. The products within its market in the United Kingdom are Cola lime, Cola orange, Cola lime, and Cola among many others.

For purposes of enhancing consistent product quality and safety, Coca-Cola Company is supposed to have the highest standards and processes. This should take place right from production through bottling to the delivery of products. To ensure that our products meet company standards and the expectations of customers, we measure important product and package quality features.

Being both consistent and reliable are two key aspects to the quality of our products and to ensuring that both global requirements and the companys standards have been met (The Coca-Cola Company, 2010).

Price Strategies

Price is the only mix that enhances the organizations turn over. In perspective of the price, for three months that ended in July 2010, Coca-Cola had spent about 8.67 million dollars in the sell of its products (The Coca-Cola Company, 2010). Licensed bottling companies in different nations sell Coca-Cola products. Half of the shares in the enterprise will typically be owned by Coca-Cola.

The pricing policies for the companys products apply uniformly in all the countries where it is based. In a local market, there is setting of a fixed price in a local market, which is based on the ability to pay, distribution and production costs. Depending on the situation, the price may be adjusted through special offers. For instance, an offer could be placed when purchasing a multi-pack.

In some cases, the size of the bottle can be increased for a limited time. However, price is used as a marketing strategy to attract more clients to the company. When Coca-Cola is faced with threat from new competitors, it rarely lowers its prices (Anderton, 2000, p. 366).

When it comes to the place strategy, Coca-Cola is a global brand dotted in over 200 countries globally. This enables almost everybody in the world to access its products. Therefore, like other multinational and global markets, the company worries less about time zones and international borders (Ward, 2004, p. 88).

To promote its products, the company utilizes several strategies. First, the company uses advertising. During the advertising process, the advert of for instance Fanta is tailored to suit the needs of different customers in diverse markets (Kaynak and Ghauri, 1994, p. 154).

The company has also been generating revenue after using other promotional methods such as mobile marketing for commerce or direct marketing (Stone and Jacobs, 2007, p. 358).

SWOT Analysis

Coca-Cola Company has various strengths. First, it has a strong brand reputation. It is among the worlds top selling soft drink companies. The Company claims to be the most known trade mark across the world.

It remains to be the largest producer of soft drinks globally. It has a larger market share in the United Kingdom market than its rivals.

Its operations are distributed in over 200 countries in the world implying its establishment that makes it not be engaged in extensive marketing like an upcoming company would do. Moreover, the company produces a wide range of products that give the consumers a wide range to choose from.

One of the main weaknesses that Coca-Cola has encountered is the Dasani launch fiasco in the United Kingdom and Europe. Dasani is the companys water product that is established in the United States and has proved to be a success. Based on this, Coca-Cola saw it fit to introduce the same in the United Kingdom.

However, after investing lucratively in its promotion, the launch turned out to be one of the greatest marketing fiascos ever to be witnessed in Europe. This happened when consumers realized that the product was merely processed tap water that used to be sold at a far much lower cost than Dasani. The product was also proved to contain a cancer-causing chemical. When this took place, the company had to recall all Dasani products.

This was a greater loss given that a lot of money had been invested in promoting and launching it. In 1990s, the company was also reported to have produced contaminated Coke (Lindgreen, Hingley and Vanhamme, 2009, p. 3-5). The company was slow to respond to these claims, making its reputation to be tainted in Europe.

These two scenarios damaged the companys reputation and may have lowered its credibility besides affecting the way consumers perceive its operations.

Coca-Cola has several opportunities. First, given that most consumers in most regions are open to both topical and natural flavors, the company has the privilege of either modifying the current products with the same or launching more products. This also means more demand for the company. Second, the company still has more room for growth to ensure that the remaining world nations access its products.

Coca-Cola has one key threat, and that is its rival  PepsiCo. Although in most markets Coca-Cola is above it, PepsiCo ranks top in the United States market (its home market). Although Coca-Cola can push new brands through its distribution system at a lower cost, rivals in the new markets have refused to let it do this. This is because if allowed, it may dominate the market (Anderton, 2000, p. 366).

PEST Analysis

Political Analysis

The government has designed regulations that govern the operations involving non-alcoholic beverages. There are possibilities of fining those companies that may not operate within the standards of the law. There are some factors that can cause the results of Coca-Cola to be different from the ones contained in its forward statement. First, changes in accounting, taxation or environmental laws.

Second, changes within the environment of the non-alcoholic products. This includes action by rivals that may cause pricing pressures whose impact may reach out to the sales share in the global market. Third, political instability in international markets may results to difficulties in transferring capital across borders (Anon, 2010).

Economic Analysis

The effect of recession in the previous years has caused nations where the company operates to respond differently. For instance, some nations have resorted to lowering the interest rates. This implies that Coca-Cola and other companies will enlarge and increase use of debt as due to low interest rates attached to borrowing. The loans can be used to carry out research on new products and technology.

Study shows that the non-alcoholic industry has greater sales in markets outside the United States and they are likely to continue contributing to the success of the economy in these nations (Anon, 2010).

Social Analysis

This is an analysis that entails changes in attitudes and lifestyle. Healthier lifestyle has become the priority of most people. Due to this, the non-alcoholic beverage industry is being affected given that most people tend to prefer non-alcoholic beverages and bottled water to alcoholic drinks.

Most consumers are also increasingly concerned about nutrition. All these developments imply an increasing demand for the Coca-Cola products (Anon, 2010).

Technological Analysis

Changes in technology create opportunities for new products and allow modification for the existing products apart from enhancing better marketing strategies. The use of internet and television has made Coca-Cola to improve its marketing and promotion techniques. This is because advertising through them makes products appear attractive to the customers.

The companys sales have improved immensely due to the introduction of cans and plastic bottles. Their portability and ease of disposing makes them popular. Additionally, due to growth in technology, there has been introduction of new machineries. This has led to an improved production in the Coca-Cola industry (Anon, 2010).

Porters 5 Forces Analysis

This is an analysis that fopcuses on the major forces in the business tha affect its operations. Th forces include competitors, suppliers, new entrants, customers and substitutes. PepsiCo is the main rival to Coca-Cola in the United Kingdom martket. In most markets, it ranks second after Coca-Cola. In the formers home market (United States), it is the leading there (Anderton, 2000, p. 366).

The company uses water, and both nutritive and non-nutritive sweeteners as raw materials. In the manufacture of its bottled products, the company uses Thames water and obtains other raw materials from Marietta (Denning, 2009, p. 115; FDS, 2007, p. 10 ). Other suppliers of non-alcoholic products are supremarkets and other companies such as Unilever and PepsiCo (Angwin, Cummings and Smith, 2006, p. 67).

The company is currently placing priority to innovation since in the past new entrants such as Red Bull and Snapple took advantage of the opportunity after realizing that innovation was key to a competitors growth (Meek et al, 2007, p. 257). Both PepsiCo and Coca-Cola have put measures in place to imprdfr new entrants from succeding in their operations.

For instance, when new entrants set in, they respond by lowering prices which causes the new entrants to restrain their expansion plans (Hill and Jones, 2009, p. 45). Due to a wide range of its products, Coca-Cola provides customers with products that suit their varying needs. Given that most people are changing their lifestyles to use non-alcoholi beverages, the companys products are on high demand.

Only Coca-Cola and PepsCo seem to be the main dealers in non-alcoholic beverages. As such, they have a large number of customers to sell their products to. Moreover, there are substitutes to the products that are produced by the company. This is because other companies like credible supermarkets, PepsiCo, Unilever, and Procter also supply non-alcoholic beverages to the customers (Angwin, Cummings and Smith, 2006, p. 67).

The company therefore ought to put mechanisms in place to ensure that the quality of its products will continue to attract customers to its retail stores.

Assumptions

The Coca-Cola Company plans to launch a new product whose name is Coke super. For the launch and use of this new product to be effective, a new marketing plan has to be prepared based on a number of assumptions regarding the future of the United Kingdoms economy. First, it is assumed that the United Kingdom will stay out of the Euro.

This is because though the UK has encountered economic recession, it may not be a problem with its currency. And more so, the Euro currency is getting into recession. Secondly, due to chances of inflation rising, the UK is supposed to have exercise independence in its economy and lower interest rates if possible.

These initiatives are supposed to be put in place because the new product (Coke super) requires investment to introduce it. Lowering interest rates will therefore enable the company to access funds that it can use to carry out some operations in the introduction of the new product.

These include cost of raw materials, promotional costs, and transportation, among others. Joining the Euro may also mean being affected by new regulations with regard to trading in non-alcoholic beverages among member countries. This may affect the operations of the company. Moreover, it is assumed that the energy costs will remain constant, and thus the company will not incur additional costs.

Marketing Objectives and Strategies for new or modified product

First, the Company intends to attain at least 50% profit for the Coke super product. This has to be attained by ensuring that the production costs and other expenses involved in its production are lower than the cost at which Coke super will be sold. Secondly, we plan to ensure that Coke super reaches the already existing 33.3% of the companys market share.

Customers who are acquainted with the existing companys products should be the ones to access it first. However, attempts will be made to ensure that new markets have been reached with the product. Thirdly, Coke super has additional flavors and other non-alcoholic ingredients. It will also come in several attractive colors.

This is to increase on the quality so as to ensure that it is attractive to customers since that will be the best way to keep them satisfied. From our market research, customers tend to be inclined towards more flavored soft drinks and especially those with ingredients from tropical fruits. Since the new product meets these standards, it is anticipated that customers will be receptive to it.

Growth Strategy

The company intends to sell the new product in two different ways. First, Coke super is to be sold in the already existing market for the other products by the company.

This is because it will be easier for the existing customers to purchase the new product since they are loyal to the company and its products. Secondly, like any other new product, Coke super will be introduced in totally new markets where the companys products are yet to reach. This includes the market share occupied by the other companies.

Marketing Mix

First, with regard to the product, apart from Coke super having additional flavors than the existing products thus making it more nutritive, it comes in more attractive colors and is packaged cans and plastic bottles that have unique shapes. Secondly, the pricing of Coke super will be based on the costs incurred in its production, and on the cost of other products from the company and those from rival companies.

Thirdly, with regard to the place, the new product targets both existing and new markets. Like other Coca-Cola products, it is to be distributed either directly to consumers or first to wholesalers who then sell it to customers (Plunkett, 2007).

Fourthly, on promotion, the new product will be promoted through advertising through the media such as television and the internet. Billboards will also be used to advertise the product. Coupons will also be distributed to the potential customers informing them of the new product and its features. Moreover, free samples will also be used.

Identification of Alternative Plans

As the marketing department of Coca-Cola, we are optimistic that the launch of Coke super will be successful since the strategies to be implemented are based on effective marketing research.

However, incase things do not work as anticipated, the company may alter elements in the marketing mix. This may include adjusting the price, using a different distribution method, exploring other markets, and changing some features of the product.

Promotional Programme

Therefore, the entire promotional programme is budgeted to cost about 1.65 million dollars.

Measurement, Review, and Control

To gauge the success of the new product, some parameters should be put in place. First, there is a weekly profit target of 2 million dollars from the sale of Coke super in the target markets. Secondly, research shall be undertaken using questionnaires to measure customer satisfaction. Questions to be used shall be decided by the marketing committee. Based on the customer responses, appropriate action shall be taken.

Reference List

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Angwin, D. Cummings, S. and Smith, C., 2006. The strategy pathfinder: core concepts and micro-cases. Victoria: Australia: Blackwell Publishing. Web.

Business Insights. 2008. Future Flavor trends in Soft Drinks. Web.

Denning, S., 2005. The leaders guide to storytelling: mastering the art and discipline of business narrative. San Francisco: John Wiley and Sons. Web.

FDS. 2007. The Coca-Cola. Web.

Hellriegel, D. and Slocum, J., 2007. Organizational Behavior. Mason: Thomson South Western. Web.

Hill, C. and Jones, G., 2009. Strategic Management Approach: An Integrated Approach. Mason: Cengage Learning. Web.

Joelson, M. R., 2006. An international antitrust primer: a guide to the operation of United States, European Union, and other key competition laws in the global economy. The Netherlands: Kluwer Law International. Web.

Kaynak, E. and Ghauri, P., 1994. Euromarketing: effective strategies for international trade and export. New York: Routledge. Web.

Lindgreen, A., Hingley, M. and Vanhamme, J., 2009. The crisis of food brands: Sustaining safe, innovative and competitive food supply. Farnham: Gower Publishing Limited. Web.

Meek, H. et al. 2007. Managing Marketing Performance 2007-2008. Oxford: Elsevier Limited. Web.

Plunkett, J. W., 2007. Plunketts Food Industry Almanac 2007 (E-Book): Food Industry Market Research, Statistics, Trends and Leading Companies. Texas: Plunkett research. Web.

Stone, B. and Jacobs, R., 2007. Successful Direct Marketing Methods. New York: McGraw-Hill Professional. Web.

The Coca-Cola Company. 2010. The Coca-Cola Financial Report: Second Quarter, 2010. Volume Profit and Earnings Growth ahead of our Long-term Targets. Web.

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Ward, K., 2004. Marketing finance: turning marketing strategies into shareholder value. New York: Butterworth Heinemann. Web.

Introduction

The Coca-Cola Company is the largest firm in the global non-alcoholic beverage industry. It was incorporated in Delaware in 1919, and is currently listed at the New York Stock Exchange (Coca-Cola Company 2011). The core business activities of the firm are production and distribution of soft drinks and concentrates.

The Coca-Cola Company has achieved organic growth since its inception, thereby joining overseas markets in Asia, Latin America, Africa, and China among other regions.

Overall, the company operates in 200 countries in the world. Despite these achievements, the company has also faced challenges in terms of negative publicity due to the quality of its products and its operations in various markets. The objective of this paper is to analyze the Coca-Cola Company.

Mission Statement

The Coca-Cola Company has to identify and to understand the market trends and industry forces that will influence its future operations in order to remain competitive in the next ten years. The firms management believes in early preparation for future growth and market changes.

Thus, it has formulated a growth blueprint, which is to be achieved by 2020. This blueprint is the roadmap to the desired vision for the company.

Achieving this vision involves implementing the firms mission. In this regard, the firms mission statement is to refresh the world; to inspire moments of optimism and happiness; and to create value and make a difference (Coca-Cola Company 2011).

The firm intends to refresh the world by selling high quality non-alcoholic beverages in every continent. Additionally, it intends to create value by meeting the needs of the shareholders, the customers, and the communities in which it operates.

Products

The Coca-Cola Company sells more than 500 non-alcoholic beverage brands. These brands include products such as enhanced water, sparkling beverages, and various types of juices. Additionally, the company produces and sells energy and sports drinks, as well as, ready-to-drink tea and coffee.

The company sells four of the worlds top five non-alcoholic sparkling beverage brands, which include Coca-Cola, Diet Coke, Fanta and Sprite (Coca-Cola Company 2011). This implies that the firms products are very competitive and visible in both local and overseas markets.

One factor that improves the competitiveness and the visibility of the firms brands is utilization of a strong distribution network. This network consists of multiple distribution channels, which include wholesalers, retailers, independent bottling partners, and company-owned bottling establishments.

Apart from beverages, the company also sells concentrates and syrups to bottling and canning companies. Overall, the company manufactures and sells more than 3,500 products (Coca-Cola Company 2011). In 2011, the company launched new brands and products in response to emerging market needs and high competition in most markets. Some of the new products include Nada and Del Valle Limon.

The Growth of the Company

The Coca-Cola Company is one of the fastest growing firms in the global beverage industry. Its products are available in nearly all countries in the world. In the last three years, the firms sales increased by 9.4% (Coca-Cola Company 2011). The company measures the sales volume of its products in terms of unit cases.

In 2009, the firm sold 24.4 billion unit cases (Coca-Cola Company 2011). However, the sales increased to 25.5 billion and 26.7 billion unit cases in 2010 and 2011 respectively. Figure 1in the appendix indicates the increase in the companys revenue in the last five years.

The figure indicates that the companys revenue increased by 61.3% in the last five years. This rapid growth is attributed to the implementation of effective marketing strategies and the introduction of new products. The increase in revenue has contributed significantly to the expansion of the firms asset base.

In 2011, the firms assets were worth $79,974 million up from $72,921 million in 2010 (Coca-Cola Company 2011). This represents a 9.6% increase in assets. The factors that underpin this growth include acquisition of other firms, construction of new production plants, and improvements in the value of the firms goodwill.

The Competitors of the Company

The global non-alcoholic beverage industry is associated with high competition because it consists of a large number of firms. Most of the firms in the industry compete in both local and international markets (Manuel 2011, pp. 45-67). The competitive products in the industry include sparkling beverages, water products, juices, and fruit drinks.

Other products include coffee, tea, functional beverages, and dairy-based drinks among others. PepsiCo is the main competitor of the Coca-Cola Company in most markets. Other significant competitors of the firm include Unilever, Nestle, Groupe Danone, and Kraft Foods among others (Coca-Cola Company 2011).

The company also competes with retailers who have developed their own beverage brands. The competition focuses on the 4Ps of marketing. Concisely, price, sales promotion, distribution channels, and product quality determine the success of the competitors.

Most companies focus on innovation in order to differentiate their products. Moreover, most firms spend a lot of their resources on sales promotion programs in order to defend their market shares.

The competitive strengths of the Coca-Cola Company include a strong brand image, an effective distribution network, and a team of talented employees who are able to develop products that meet customers expectations (Coca-Cola Company 2011).

These factors enable the firm to overcome competition in the industry. One threat that is likely to reduce the competitiveness of the firm is the high competitive rivalry in major markets.

In addition, the buyers (consumers) are associated with a high bargaining power since they have low switching costs (Nikpartow, Danyliw & Whiting 2011, pp. 43-48). In this regard, consumers can easily switch to alternative brands, thereby reducing the firms sales and profits.

The Suppliers

Water is the main ingredient that the Coca-Cola Company uses to manufacture nearly all its products. Municipal councils are the main suppliers of water in most markets. Historically, the firm has never experienced significant water shortages.

Nonetheless, availability of high quality water remains one of the companys major future challenges. This is because, rapid population growth and industrialization is likely to increase demand for water, thereby reducing its availability.

The primary non-nutritive sweeteners that the firm uses to manufacture its beverages include potassium, acesulfame, cyclamate, and sucralose. The main suppliers of these materials include the NutraSweet Company, as well as, Ajinomoto Company (Coca-Cola Company 2011).

The main supplier of acesulfame potassium is Nurtinova Nutrition Specialties and Food Ingredients. Generally, these sweeteners are readily available in most markets. Thus, the Coca-Cola Company has never had trouble in obtaining them.

Tate & Lyle PLC is the main supplier of sucralose, whereas Cargill mainly supplies Truvia. These companies have been able to meet the Coca-Cola Companys requirements for the sweeteners. Citrus fruit is the main ingredient for the manufacture of juice drink products and concentrates.

Famers from Florida and their counterparts from the Southern Hemisphere are the main suppliers of citrus fruits. The supply of these fruits depends on the variability of weather patterns. For example, very cold weather conditions and hurricanes often lower the production of citric fruits in Florida.

The resulting increase in the price of this fruit leads to a rise in the price of orange juice and concentrates. Numerous firms supply packaging materials such as bottles, cartons, steel cans, and cases. Generally, buyers (beverage manufacturers) have a high bargaining power because they have low switching costs.

In addition, the industry has very many suppliers who are competing for the few non-alcoholic beverage companies. Thus, the Coca-Cola Company can easily negotiate for low prices and high quality for its supplies.

Profitability and Change in Share Price

The Coca-Cola Company has remained profitable in the last five years as shown in figure 1. In 2009, the firms profit was $6.8 billion, whereas in 2010 its profit was $11.9 billion (Coca-Cola Company 2011).

This represents a 72% increase in net profit. However, in 2011, the firms profit declined by 27%. Consequently, its profit was $8.6 billion. Figure 2 in the appendix illustrates the increase in the firms profit margins for each operating segment.

In the last three years, the European subsidiary recorded the highest increase in profit margins (66.8%). The Latin American subsidiary had the second highest average increase in profit margins (63.4%). The bottling investment segment had the lowest increase in profit margin (2.55).

The decline in the firms profit in the 2011 financial year is attributed to the increase in its operating costs. Selling costs, as well as, general and administrative expenses rose by $4.3 billion or 33% (Coca-Cola Company 2011). Exchange rate fluctuations accounted for 3% of the increase in operating costs.

Advertising costs also increased in 2011 due to the firms commitment to build strong brands. The acquisition of CCEs North American business and increased investments in other bottling companies accounts for the sharp rise in bottling and distribution costs. In 2012, the firms operating costs are expected to decline, thereby increasing its profit. For example, staff benefit expenses is expected to reduce by $50 million.

The excellent financial performance has had a positive impact on the firms share price in the New York Stock Exchange. Figure 3 shows the variations in the firms share price in 2011. The third quarter had the highest variation in which the highest price was $71.77, whereas the lowest price was $63.59 (Coca-Cola Company 2011).

The second quarter of the year had the lowest variation. In this quarter, the highest price was $68.77, whereas the lowest price was $64.43.

Figure 4 compares the variation of the companys share price with those of its peer group index and the S&P 500 Index. It shows that the return on investment in the Coca-Cola Companys shares was higher than that of its peers in the last five years.

Timeline of Major News Events

The Coca-Cola Company has had both negative and positive publicity in the print and electronic media due to its operations. In November 2012, the company launched an ambitious corporate social responsibility program that involves empowering five million women entrepreneurs by 2020 (Bloomberg 2012).

The objective of the program is to provide its beneficiaries with access to business skills, peer networks, and financial services. In July 2012, the London Assembly voted in favor of disqualifying the Coca-Cola Company from participating in the Olympic Games (Huff 2012).

This decision was based on the fact that most of the firms products contain ingredients that increase the risk of childhood obesity and other lifestyle-related illnesses. Nonetheless, the company still participated in the 2012 Olympics as one of the main sponsors.

In May 2012, the company was accused of false advertisement (Hayes 2012). In particular, it had labeled one of its soft drinks as pomegranate blueberry. However, 99.7% of the ingredients used to manufacture the product were apple and grape juices.

In November 2011, executives from the company influenced officials from the Grand Canyon National Park to lift the ban on plastic bottles (Huff 2011).

The ban was lifted after officials of the company held a meeting with the parks officials and donated $13 million. In August 2010, the companys lawyers admitted that the firms vitamin water products were not healthy (Adams 2010).

This revelation was made in a lawsuit in which the Coca-Cola Company was accused of misleading the public by advertising its vitamin water as a healthy product. Finally, in May 2010, the company was accused of engaging in anti-union activities in Colombia (Huff 2010).

Concisely, the firm had hired thugs to kill its employees union leaders in Colombia. Negative publicity has contributed in part to the decline of the firms share prices, especially, in 2011.

Strengths of the Coca-Cola Company

The company has the following strengths. First, it focuses on implementing consumer-oriented marketing strategies. It develops marketing strategies for its brands by conducting adequate market research. Moreover, it solicits consumer feedback through effective market communication channels. The marketing strategy of the company focuses on increasing sales in emerging markets, improving brand value in developing markets and increasing profits in developed markets (Coca-Cola Company 2011). This strength has enabled the firm to penetrate new markets and to defend its existing market share.

Second, the firm is known for commercial leadership in most markets. It has millions of customers who sell its products directly to consumers. The firm supports its customers by developing solutions that promote the growth of their beverage businesses (Coca-Cola Company 2011).

This involves providing the customers with the right products, and promotional tools. These initiatives help the firm to increase the sale of its products at the retail level. Third, the company has a very effective franchise system that enables it to achieve flexibility in production.

By collaborating with independent bottling companies, the firm has been able to achieve scale and efficiency in production; to increase its sales volume and profit margins; and to differentiate its products. Fourth, the firm has remained financially stable in the last decade.

Its financial resources have enabled it to fund expansion plans, product development projects, and marketing strategies. Finally, the company has a strong brand image that is known for high quality. It produces a variety of products that satisfy the tastes and preferences of its customers around the world.

The resulting increase in brand loyalty has enabled the firm to dominate the market. The firm has consistently paid dividends since 1987 and its shares are associated with little volatility (a Beta of 0.51).

The Weaknesses of the Coca-Cola Company

The firm has the following weaknesses. First, it produces drinks that are associated with high health risks such as cancer and obesity. Consequently, the demand for its products is likely to reduce as customers become more cautious about their health (Wycislak 2010, pp. 13-19).

This risk is likely to be exacerbated by the fact that the firm is doing very little to address the negative publicity of its products. Second, the firm produces over 500 brands. Approximately 20% of these brands are extremely popular, whereas the remaining 80% are unpopular and are not available in most markets (Wolburg 2003, pp. 23-34).

Most of the brands are unpopular due to insufficient advertising budget allocations. Finally, the company is involved in numerous lawsuits due to the quality of its products and breach of patent agreements. These ligations not only increase the firms expenses, but also tarnish its image.

Problem Faced in the Press

In June 2012, the press published a report, which indicated that the 4-MI chemical that gives Coca Cola a distinctive color is a major cause of cancer (Poulter 2012). This revelation led to intense anti-Coca-Cola campaigns around the world.

Consumer health activists and public health agencies who believed that the firms products should be banned led the campaigns. These campaigns resulted into a sudden reduction in the firms sales in nearly all markets. The company could have used information systems to solve this problem as follows.

First, it could have used information systems to clarify the level of the health risks associated with its products. Concisely, social media such as twitter could have helped the firm to convince consumers that its products are safe. Emails could have been an effective means of informing distributers about the products quality.

Both email and social media are effective in addressing urgent public relation problems because they facilitate real time and direct communication with the audience.

Second, the firm could have used information systems to access feedback from the public in order to make the right decisions concerning the ingredients to use in its products (Sadler 2003, pp. 121).

For instance, online surveys and social media discussions could have helped the firm to understand the consumers concerns about the products. By incorporating these concerns in its production decisions, the firm could have developed products that meet the expectations of its customers.

Finally, information systems could have been used to enhance research and development initiatives in order to develop new production technologies. Information systems facilitate quick sharing of research findings, as well as, controlling and coordinating the research process.

The resulting increase in efficiency could have enabled the firm to develop an alternative production process in time.

Stock Purchase Decision

I would purchase the companys shares due to the following reasons. First, the company has been able to maintain its financial stability in the last ten years. Besides, it has remained profitable in the last five years.

This trend is likely to be maintained because the firms marketing strategy focuses on market penetration, as well as, increasing sales and profit margins. Financial stability is likely to have a positive impact on the performance of the firms stock (Witcher & Chau 2010, pp. 78).

Second, the price of the firms shares is less volatile. Hence, the risk of losing returns on investment is low. Third, the company has a strong brand image and high customer loyalty.

Thus, negative publicity concerning the quality of its products is not likely to have significant impacts on its sales and the price of its shares (Winer & Dhar 2010, pp. 324).

Finally, the firm has a lot of financial resources that enables it to fund expansion and corporate social responsibility programs. The news about the launch of such programs normally leads to an increase in the value of stocks. In this regard, high returns can be realized by investing in the firms shares.

Working for the Company

The Coca-Cola Company is one of the best employers in the world. This is because its financial strength enables it to offer high compensation packages to its employees. It has established an effective diversification program that enables employees from different cultures to tolerate each other (Coca-Cola Company 2011).

Additionally, the company empowers its employees through training and development programs. Nonetheless, I have two reasons that discourage me from working for the company. First, the firm discourages union activities among its employees.

In the absence of a strong union, the firm can use its influence and financial resources to implement human resource policies that benefit it at the expense of the employees. Second, most of the companys products are associated with serious health risks such as cancer and diabetes.

The company continues to produce these products despite being aware of their health implications. This is a form of unethical behavior that contravenes the principles that guide my professional conduct.

References

Adams, M 2010, Vitamin Water Revealed as Non-healthy Beverage by Coca-Colas Own Lawyers. Web.

Bloomberg 2012, The Coca-Cola Company Expands 5by20 Womens Economic Empowerment Initiative.

Coca-Cola Company 2011, Annual Financial Report: FY 2011. Web.

Heyes, J 2012, Coca-Cola Dodges Federal False Advertising Claim on its so-called Pomegranate Juice. Web.

Huff, E 2012, London Assembly Trying to Ban McDonalds and Coca-Cola from 2012 Olympics. Web.

Huff, E 2011, Coca-Cola Influences Grand Canyon Officials to Scrap Plastic Bottle Ban. Web.

Huff, E 2010, Coca-Colas Murderous Record of Anti-union Activity in Colombia Exposed. Web.

Manuel, E 2011, The Analysis of Five Competitive Forces of Non-alcoholic Beverage Industry and E-commerce Industry Cases at the Global Level, International Journal of Marketing Management, vol. 6 no. 3, pp. 45-67.

Nikpartow, N, Danyliw A & Whiting S 2011, Beverage Consumption Patterns of Canadian Adults Aged 19 to 65 Years, Public Health Nutrition, vol. 2 no. 17, pp. 43-48.

Poulter, S 2012, Calls to Ban Coca-Cola Coloration Linked to Cancer that is Still Available in Britain despite U.S Health Alert. Web.

Sadler, P 2003, Strategic Management, McGraw-Hill, New York.

Winer, R & Dhar, R 2010, Marketing Management, Palgrave, London.

Wolburg, M 2003, Misplaced Marketing Colas Big and Little: Anti-Trust Laws, Non-regulation and the Disabled Marketing of Small Brands, Business Strategy Series, 20 no. 3, pp. 23-34.

Witcher, B & Chau, V 2010, Strategic Management: Principles and Practice, Wiley and Sons, New York.

Wycislak, S 2010, Multinationals Sins Pave the Way to the Expansion of Domestic Companies, Business Strategy series, vol. 11 no. 1, pp. 13-19.

Price Elasticity of Demand for Petrol

Judging by the fact that there are very few alternatives for petrol in the present-day and that for cars which run on petrol no other fuel can be used, it can be considered that the price elasticity of demand for petrol is inelastic. However, as Suneja explains, with the invasion of the diesel-engine cars, the demand for petrol can possibly drop and, therefore, become more elastic.

As for carbonated drinks, such as Coca Cola, it seems that the demand is not quite stable. On the one hand, fizzy drinks have nice flavors and are necessary elements of any children party, or even of a pleasant pastime for adults. However, it is still needed to keep in mind that many fizzy drinks taste much the same, with some recurrent flavors.

Of course, Coca cola stands out with its original formula, but its rival, Pepsi, is always there, which prevents Coca Cola to fix inelastic prices. The final argument in that chain is the fact that carbonated drinks are not indispensable to life. Hence, the price elasticity of demand for carbonated drinks is and will most likely stay elastic.

Income Elasticity of Demand for Carbonated Drink and Petrol

As for the income elasticity of demand, or the ratio between the change in quality of the goods and in the income of the consumer, as Jain and Khanna define this phenomenon (Jain and Khanna 46), it can be considered that the income elasticity of demand for the petrol is considerably lesser than the one for the Coca Cola.

Indeed, if considering the reasons that make people buy petrol and Coca Cola, one must mention that petrol, as it has been mentioned above, is used for a very specific reason, i.e., for using a car. Without a car, the life of an average citizen seems hardly comfortable, since a number of journeys will take considerably more time and will depend on other reasons than the schedule of the given citizen.

Hence, a car is an integrate element of an average man or womans life. Judging by the above-mentioned, one is likely to buy petrol even if his/her incomes drop. Likewise, even if the quality of petrol decreases, there will be no other substitute. Compared to petrol, Coca Cola is much less important, it has a number of rivals, and, thus, in case of a change in quality, people can simply stop consuming it or choose a different brand.

Cross-Price Elasticity of Demand Between Coke and Pepsi

Since cross price elasticity can be defined as the ratio between the change in quantity of Coca Cola divided into the change in price in Pepsi and vice versa, the cross price elasticity of the two will make 0,7 (McEachern 116).

Cross-Price Elasticity Between Carbonated Drinks and Petrol

As there is no palpable dependency between the two goods, they presumably have zero price elasticity.

Conclusion

As it has been mentioned, there has always been the need in petrol. Even with diesel engines, it seems that there is high demand for the given fuel. Hence, petrol production appears to be the most preferable for stocks investment.

Works Cited

Jain, Rohit and Op Khanna. Business Economics. New Delhi: FK Publications. 2008. Print.

McEachern, William A. Economics: A Contemporary Introduction. Stamford, CN: Cengage Learning. 2011. Print.

Suneja, Vivek. Markets: A Multidimensional Approach to the Market Economy. New York, NY: Routledge. 2000. Print.

Introduction

The issue of corporate social responsibility (CSR), manifested as a firms caring endeavours for its workers, stakeholders and the environment, is of momentous value for academics and contemporary business practitioners (Delios, 2010).

Prevalent external observations that a firm continually engages in socially irresponsible practices often bring undesirable ramifications for the firm in question, since external literature demonstrates that an entitys success  indeed its survival in the harshly competitive business environment  largely depends on satisfying normative demands and expectations arising from the environment (Lange & Washburn, 2012).

When organisational action on social and environmental domains seems ethically untenable to the standards set by stakeholders and other constituents, the firm not only risks losing key members of staff and potential employees, but also its outside endorsement, reputation and support, as well as its customers and investors (Raman, 2007). T

hrough highlighting Coca Colas CSR initiatives, the present paper purposes to demonstrate that social responsibility, rather than economic conquest, provides the needed impetus for modern-day organisations to reach the pinnacle of business success.

Coca Cola: Precursors to its Social Responsibility Initiatives

With a huge and sustained presence in thousands of communities across more than 200 countries worldwide, Coca Cola, headquartered in Atlanta, is undoubtedly the worlds largest multinational corporation interested in the soft drinks and beverage industry (Madhavan, 2012).

In 2010, the corporation was ranked in the 70^th position by Fortune 500, with sales revenue of $35,119 million and profits of $11,809 million (CNNMoney, 2012). The company has a labour force of 71,000 employees, with 83 percent of them working in other countries outside the United States (Dorfman et al., 2012).

Despite Coca Colas huge presence and attractive profits, it can be argued with near certainty that the journey to financial independence and world dominance has not been rosy, especially prior to the corporations realization of the importance of incorporating social responsibility initiatives into its business processes.

Extant literature demonstrate that the global soft drinks giant has come under attack in various countries including the United States, Columbia, Guatemala, Zimbabwe and the Philippines for engaging in socially irresponsible actions, such as discriminating against black employees, poor working conditions for migrant workers, as well as the assassinations of trade union officials and union-affiliated employees (Raman, 2007).

In India, for instance, Coca Colas operations were halted in the 1980s after it became apparent that the company was engaged in thoughtless ecological degradation that laid the land to waste, not mentioning that the poisonous content of the soft drinks received sustained condemnation from villagers, non-governmental organisations and trade activists (Madhavan, 2012).

The corporation was only able to resume operations in the country in 1991 after it demonstrated a sustained imperative to care for society. Recently, Coca Cola has been on the spotlight because its sugary beverages and soft drinks have been implicated in the global obesity crisis (Dorfman et al., 2012).

Coca Cola: Strengths of Corporate Social Responsibility

Coca Cola has been able to rise above the challenges presented above through the employment of elaborate, expensive, multinational CSR initiatives (Dorfman et al., 2012). Extant literature demonstrates that CSR &ensures that a company does business in an ethical manner and is accountable for the social and environmental impacts that the business creates for the society (Madhavan, 2012, p. 94).

Through CSR initiatives such as Live Positively, Coca Cola now sees its sustainability initiatives first and foremost as the right thing to do in a world where populations are growing rapidly, natural resources are stressed beyond limits, societies are increasingly forced to do more with less, and consumer demands and expectations are expanding beyond the reach of most companies (Dorfman et al., 2012).

If these assertions are analyzed using the cost-benefit lens, it becomes obvious that sustainability efforts, rather than the pursuit of financial success, is core to the business continuity of Coca Cola since business and financial success can only be sustainable if the people and communities interacting with the corporation are sustainable and enriched along the way.

Coca Colas past mistakes in countries such as India and the Philippines, as well as the resulting consequences in diminished revenues and tarnished reputation (Raman, 2007), amicably demonstrate that organisations that act in a socially irresponsible manner not only find it challenging to attract key staff, customers and investors, but also risk arming competitors with deadly arsenal that could be used against them in competition (Lange & Washburn, 2012).

The corporations counter-normative overtures in India, for instance, led to undesirable consequences in the form of &lawsuits, financial losses through settlements and sales declines, increases in the cost of capital, market share deterioration, network partner loss, and other costs associated with negative reputation (Large & Washburn, 2012, p. 300).

All these consequences bear a financial underpinning because an organisation cannot purport to be profitable if it loses its key members of staff and customers, or if its market share become obsolete as was the case of Coca Cola in India during the decade of the 1980s. It therefore follows that CSR initiatives, rather than profit concerns, should be the cornerstone for business success and prosperity.

Today, more than ever, it is common knowledge that CSR initiatives &can boost a firms bottom line both directly through sales and indirectly by moderating the risk for regulation and improving the overall business climate (Dorfman et al., 2012, p. 2).

This assertion, more than anything else, attempts to demonstrate that CSR initiatives can indeed be used to trigger organisational performance and competitiveness, with the view to accumulate more profits for the firm as well as its shareholders.

However, a firms financial success cannot be used as a measuring stick for engaging in CSR activities. A case in point is the Coca Colas Live Positively CSR campaign, which is embedded in the firms commitment to trigger a positive difference in the world through focusing in critical spheres of Marketplace, Workplace, Society, and Environment (Banerjee, 2010).

The Live Positively campaign has not only provided tips for the corporations consumers to live active lifestyles and protect the environment, but continues to support charitable projects in underserved communities, with the view to encourage healthy living (Dorfman et al., 2012).

It is needless to say that this campaign has shielded the company from accusations of causing or fuelling obesity among the youth. However, the implication for practice is premised on the fact that the campaign has enabled Coca Cola to drive its profits and market share, and not vice versa.

Another important point, which is intrinsically related to the previous one, is that CSR initiatives help organisations to direct the responsibility for any undesirable consequences from the corporations onto its direct as well as indirect consumers (Large & Washburn, 2012).

Critics may counter this argument by saying that it is ethically inappropriate to do that, but the bottom-line is always premised on image and reputation protection. As postulated by Raman (2007), no organisation can afford to remain profitable when its reputation is at stake, and thus all attempts must be made to ensure that the image and reputation are shielded.

In the Coca Colas case, academics and mainstream commentators have argued that the Live Positively campaign is only a mere tactic that is used by the soft drinks giant to redirect the responsibility for health outcomes from the firm onto its customers, &and externalize the negative effects of increased obesity to the public (Dorfman et al., 2012, p. 3).

This argument may be true depending on the context of analysis; however, the bottom-line as per the requirements of this essay is that Coca Cola has been successful in using the CSR campaign to demonstrate that consumers bad lifestyle habits, rather than the firms sugary soft drinks, are to blame for the increased cases of obesity.

This way, the company is able to maintain its market share and, by extension, drive profitability and competitiveness.

Conclusion

The arguments used in this paper have demonstrated that CSR initiatives, rather than economic or financial conquest, provide the needed impetus for contemporary firms to reach the pinnacle of business success. The major implication is that firms must always have in place comprehensive CSR policies and strategies if they expect to spur economic and financial success.

Of course profitability and performance are important constructs for shareholders since a firms existence can only be justified if it is able to provide financial returns to its owners (Gilbert et al., 2011), but the present paper provides useful insights on how firms can go about strengthening their profit margins by first reinforcing CSR initiatives.

Coca Cola has been able to maintain a huge global presence and an attractive revenue base by following this orientation.

References

Banerjee, S.B. (2010). Governing the global corporation: A critical perspective. Business Ethics Quarterly, 20(2), 265-274.

CNNMoney. (2012). Retrieved from https://money.cnn.com/magazines/fortune/fortune500/2011/snapshots/100.html

Delios, A. (2010). How can Organisations be competitive but dare to care? Academy of Management Perspectives, 24(3), 25-36.

Dorfman, L., Cheyne, A., Friedman, L.C., Wadud, A., & Gottlieb, M. (2012). Soda and tobacco industry corporate social responsibility campaigns: How do they compare? PLoS Medicine, 9(6), 1.7.

Gilbert, D.U., Rasche, A., & Waddock, S. (2011). Accountability in a global economy: The emergence of international accountability standards. Business Ethics Quarterly, 21(1), 23-44.

Lange, D., & Washburn, N.T. (2012). Understanding attributions of corporate social irresponsibility. Academy of Management Review, 37(2), 300-326.

Madhavan, A. (2012). CSR at Coca Cola. Vikalpa: The Journal for Decision Makers, 37(2), 94-98.

Raman, K.R. (2007). Community-Coca-Cola interface: Political-anthropological concerns on corporate social responsibility. Social Analysis, 51(3), 103-120.

Coca Cola South Pacific operates in New Zealand and Australia. The company offers consumers with different products and drinks. The success of Coca Cola Company results from its supply chain and unique brand name. The products of the company are unique and easy to identify.

The consumers are aware of the Coca Cola products (Henry 2008, p. 21). This has made its business successful. However, several factors affect the companys success. These factors include competition, poor transportation network, and declining consumption. The company faces various threats that affect its profitability.

The Porters Five Forces identifies the business environment for Coca Cola South Pacific. The first force is the existence of rivalry in the market. This results from Pepsi and fruit juices from different companies. There are substitute goods that offer a challenge to Coca Colas drinks.

These goods include tea, milk and alcoholic beverages (Kemp 2009, p. 26). The bargaining power of the suppliers affects the production levels of the companys products. The suppliers provide packaging solutions and sugar to the company. The consumers also have their bargaining power. The nature of supply chains and pricing strategies determine the power of the customers.

Strategy of the Major Competitors

The major competitors for Coca Cola Company include Fruit Processing Companies and Pepsi. These companies use an effective strategy to market and distribute their products. The companies use low prices and proper packaging (Hays 2010, p. 74). This makes handling and transportation easier.

Pepsi Company employs a strategic approach to market its drinks. The drinks have unique labels and names. This has made the marketing process successful for the company.

The fruit juice industry uses different pricing strategies to attract more customers (Roy 2011, p. 65). The above approaches have made the competitors profitable. It is necessary for Coca Cola South Pacific to adopt new ideas. This will help the company to overcome the level of competition and become successful.

Coca Cola South Pacific has succeeded in the market because of its unique strategy. The companys brands are unique thus making it possible to target the customers. Coca Cola uses an effective pricing strategy thereby selling its products to the esteemed consumers.

The other strength of Coca Colas strategy is its use of a powerful supply chain. The supply chain has made it possible for the company to meet its targets (Hays 2010, p. 98). The companys brand identity and name is an important aspect of its strategy. However, the strategy faces certain challenges such as reduced consumption and increased competition from Pepsi and the fruit juice industry.

Recommendations for Coca-Cola South Pacific

Coca-Cola South Pacific is a leading player in the Soft Drink industry in the region. It has the best team that promotes its profitability. The major challenge results from the new competition from the companies selling fruit juices and beverages. I would recommend that the current strategy is enhanced by penetrating deeper into the market. As well, the company can reduce the prices of certain drinks (Kemp 2009, p. 26).

This will make its business successful thereby overcoming the current competition. New advertising strategies will inform more consumers about the products offered by Coca-Cola South Pacific.

The company can also produce new products to attract new consumers. This will improve the companys competitive advantage. The above recommendations can be used improve Coca Cola Companys strategy. This will make it the leading player in the market.

Reference List

Hays, C 2010. The Real Thing: truth and power at the Coca-Cola Company, Oxford University Press, Canberra.

Henry, A 2008. Understanding Strategic Management, Longman, New York.

Kemp, K 2009. Gods Capitalist: As a Candler of Coca-Cola, Oxford University Press, Sydney.

Roy, D 2011. Strategic Foresight and Porters Five Forces: Towards a Synthesis, John Wiley and Sons, New York.

The Olympic Games 2012 is a great world-famous sports event. The Olympic Games attract not only sportsmen from the whole world but also the companies who want to be the sponsors of this affair. As the use of the Olympic brand is carefully protected, many companies try to earn the official status of the sponsor of the Olympic Games. The Olympic Games have always been a great financial investment to the sponsors and suppliers.

Sebastian Coe, London 2012 Chairman, said that We are now at the business end of organizing the Games and our Tier Three deals are very important as we source world-class companies to provide goods and services in order to deliver truly memorable Games in 2012 (Airwave named as London 2012 Tier Three Supplier 2009). The same source provides us with the information of the Worldwide Olympic Partners, who has already signed up contracts for the Olympic Games 2012. They are Coca-Cola, Acer, Atos Origin, GE, McDonalds, Omega, Panasonic, Samsung and Visa. (Airwave named as London 2012 Tier Three Supplier 2009).

The Coca-Cola Company has been an official supplier of the Olympics for many years and does not want to miss the Olympic Games 2012. The Coca-Cola Company is the only company that provides the longest and most continuous relationships with the Olympic Games. The Coca-Cola Company is the leading company in distributing the exclusive non-alcoholic beverages in the world. It achieved its reputation as the traditional creator of entertaining programs and creating merry mood and spirit on different events.

The company has been the official supplier of beverages in the Olympic Games since 1928, when Olympic Games were held in Amsterdam. National Olympic Committees and Coca-Cola work closely to support athletes and sports teams in approximately 190 countries. 1986 was the year when Coca-Cola Company became a charter member of the TOP Program as the exclusive product in the category of non-alcoholic beverages (Marketing and Events).

Mr. Isdell, the chairman of soft drinks Coca-Cola, insists that the sponsorship strategy of Coca-Cola has always been based on moral principles. He says that in spite of some negative publishing, the Coca-Cola Company is going to be the sponsor of the Olympic Games as the agreements have already been achieved (Coca-Cola defends Olympics deal 2008). Vice versa, the Coca Cola is proud to be the supplier of the beverages to such great sport event and do not want to lose the opportunity to advertise extensively its products to the whole world.

The official site of Coca Cola announces that relying on our [the Coca Cola Companys] enormous respect for the integrity of the Olympic Movement and the values of Olympism, we have renewed our historic bond with the IOC through 2020, extending this extraordinary relationship to nearly a full century (The Coca Cola Company).

We should be familiar with some statistics which will help us to select suitable target markets, to select a positioning concept. The 70% profit from sales of Coca-Cola products comes from the outside countries (not including the United States of America). The researches showed that the BRIC nations: Brazil, Russia, India and China are the markets which grow fast and they should be our main consideration to the next advertising campaign. The leading markets outside the United States are Mexico and Brazil, the Coca-Cola Company receives from them the biggest income (Coca-Cola: Olympic Sponsorship is a Profitable Tradition 2008).

China has not been the leading consumer of the Coca-Cola products for many years; it should be specified that it was lagging behind. The tendency has changed since the last Olympic Games 2008 in Beijing. The advertising campaign gave its results and our purpose today is to support that market, to consolidate our positions there and to extend it as far as we can.

The target of the Coca-Cola Company is the youth. Of course, we should not reject the huge percentage of the population who are under 25. The advertising campaign should be segmented into parts and as a result the advertising campaigns should be different. We are going to represent the readers with our ideas about these advertising campaigns in the next part of our report.

Our company is not a company that will give the explosive growth, but will take 4%-5% annual volume growth and 6%-8% operating income growth any day if we are talking about stability and long-term performance (Coca-Cola: Olympic Sponsorship is a Profitable Tradition 2008).

The financial situation in the world is not stable now. The world crisis can change some activities. Developing any marketing plan we should be aware that the dollar is weak now. But still a favorable currency exchange, which helps the company deal with the negative effects of high commodity prices, and recent data suggests that Coca Cola is doing well (Coca Cola: Olympic Sponsorship is a Profitable Tradition 2008).

Some sponsors of the Olympic Games 2012 are not sure whether the cost has been worth it. The negotiations continue to persuade the sponsors to finance the event. The Coca-Cola Company does not hesitate in this question as stopping now will break the relationships, which lasted for more than 80 years, and will cause the drop in its global marketing budget. (The British are out in front, but London 2012 is still chasing sponsors 2008).

The changes in prices of the products of The Coca Cola Company in New York Stock Exchange in 2007  2008 may be seen on the diagram (Coca Cola: Olympic Sponsorship is a Profitable Tradition 2008).

The burst is observed at the turn of 2007 and 2008. The Olympic Games 2008 played one of the main parts here. So, the design of the advertising campaign should take into consideration the burst of tourism.

The burst of tourism provides the greatest opportunities for sponsorship. The huge amount of people is eager to see the advertisements and buy our products. As it was mentioned the advertising campaign should be segmented between two age factors: youth and those who are under 25.

The advertising campaign for youth should be oriented on movement and emotions. Open Happiness is the new global integrated marketing campaign that is going to be the leading idea of advertising on the Olympic Games 2012 (New Coca-Cola Ad Campaign 2009). As we have no access to television advertising, our main goals are newspapers, radio and big boards.

The Olympic Games 2012 is the event where the music and radio advertisements are going to be the main consideration. The signboards should be posted on the stadiums and places where the sports events will take place. The sighs should contain the phrase Open Happiness and the photos of fans that support their countries and are happy when they win. The groups of young people could be shown with the equipment of the Olympic Games 2012 and the bottles of Coca Cola products in their hands. The big boards and signboards should express the happiness. The advertising campaign should be very emotional. People should be occupied with the emotions and happiness and they should want to experience the same emotions. This is going to be the promotional argument for the advertising campaign for youth.

Some different feelings should provoke and arisen the advertising campaign intended for people under 25. The family feelings and nostalgia should be the main consideration here. It may sound primitive today but the first advertising slogan Delicious, Refreshing, Exhilarating was provided by John Styth Pemberton, the Coke inventor. (Jacobs 2006). This may be one of the main ideas: nostalgia. We may show people how everything began. The advertising campaign can be organized in a way that people are reminded about the past, about the very beginning and roots. People are very sensitive and the history subject can be the main consideration here.

The other idea is to use the family connections. The Coca-Cola Company has always been the supporter of family relations and traditions. Let the Coca Cola be a tradition in your family  may be the slogan of our advertising campaign in the Olympic Games 2012.

So, the Coca-Cola Company is one of the main official suppliers in the Olympic Games 2012. The history shows that the Olympics for more than 80 years were organized with the financial support and product supply of the Coca-Cola Company, and the next Olympic Games is not going to be an exception.

Works Cited

Airwave named as London 2012 Tier Three Supplier. 2009. Web.

Coca-Cola defends Olympics deal. BBC News. 2008. Web.

Coca Cola: Olympic Sponsorship is a Profitable Tradition Seeking Alfa. 2008. Web.

Jacobs, Ben. History of Coca-Cola and Their Advertising Campaign Associated Content. 2006. Web.

Marketing and Events. The Association of Police and Public Security Suppliers. Web.

New Coca-Cola Ad Campaign: Open Happiness. 2009. Web.

The British are out in front, but London 2012 is still chasing sponsors. 2008. The Independent. Web.

The Coca Cola Company. Web.

Introduction

Coca-Cola is a soft drink product that is one of the best familiar products available anywhere in the world. Its value may change periodically according to its demand and supply which causes to alter the uneven price of this product. Coca-Cola has begun testing vending machines that could adjust prices of their drinks in vending machines according to any number of factors that cause momentary fluctuations in supply and demand, particularly the weather. (Coca-Colas New Vending Machine: Pricing to Capture Value, or not? Brief Introduction Coca-Cola has begun Resting Vending Machines that could adjust prices of their Drinks in Vending Machines according to any Number). In todays competitive business world, pricing is a key ingredient of a marketing approach; only an effective pricing policy can lead to a successful business.

The pricing policy influences the approach of consumers of Coca-Cola towards its usage. The action towards this is to be initiated by the production and marketing managers keeping their hands together. The discussion will result in the need of varying the price of Coca-Cola according to the change in weather conditions and whether it will affect the production as well as the marketing of the product. Also, they should have help from the finance manager with regard to financial resources.

Background

The vision of the company is to reach maximum consumers. The marketing personnel focuses on implementing the variable price strategy in the market. The weather condition has a great influence on the increase or decrease in the demand for this product. The sale will be at its peak during hot weather conditions; on the other hand, it will be low during winter. So, the price strategy variation implementation is based on the above criteria.

Recommendation

The price alteration may be least entertained. Variation in price strategy should not be implemented. During extreme hot weather conditions, the demand for soft drinks increases. Mostly, workers doing heavy jobs are the major consumers of soft drinks; the increase in price can change their preferences. A slight decrease can result in increased sales of the product. Also, a portion of regular users of the product may refuse to accept the increased cost.

Basis of Recommendation

The recommendation is deduced from the analysis of the various levels of people in society. The marketing and economic factors are also considered for this recommendation. The following can be an adequate basis for this proposal.

• Decrease in sale
• Exposure to a different product
• Loss in share price

Decrease in the sale

During the summer season, the tendency of people to consume soft drinks will increase due to increased exhaustion. The increase in cost may lead to a decrease in the sale because many people cannot afford more consumption of the costlier product.

Exposure to a different product

A change in the price of a product prompts the consumer to make a comparison between various similar products. In the summer season, as people opt for more quantities of soft drinks for the amount of money in hand, they refuse to buy the product having a higher cost. It will also give a chance for the other products to get more market share resulting in loss of market to the product having higher cost, even during off-seasons.

Loss in share price

When the demand for a product decreases, the number of people who prefer this companys shares decreases. This lowering of popularity paves way for depreciation in the companys share price.

Alternatives, Risks, and Assumptions

A number of key assumptions are made while formulating the recommendation. The main assumption made in the study is that the people from all economic levels of the society are consumers of this product, Coca-Cola. It is also assumed that the company will be able to meet the contentment of the consumers of Coca-Cola. In order to get a backup for the analysis, it is supposed that no other companies are decreasing or increasing the price of their products.

The main uncertainties identified in the proposal can be viewed in a proper manner. There is a chance for a mismatch in the number of consumers with the target fixed while planning the pricing strategy. If the product goes behind and beyond the stock kept at the production department, the hope will be a bit diminished. There cannot be any certainty in other companies ideas to decrease or increase the price of their products.

Action Steps

First, an estimate should be prepared on the expected consumption in the summer and winter seasons separately. Next, the annual budget should be prepared, and based on this, strategic planning should be formulated. There should be proper advertisements and enough marketing should be carried out. All these steps should be observed with a keen approach and should be implemented in full swing.

Works Cited

Coca-Colas New Vending Machine: Pricing to Capture Value, or not? Brief Introduction Coca-Cola has begun Resting Vending Machines that could adjust prices of their Drinks in Vending Machines according to any Number: Have s Little Read. Coursework. Info: Inspiration in an Instant. 2009. Web.

The article A catalog of biases in questionnaires by Choi and Pak presents an argument on the importance of avoiding bias while designing questionnaires for the patients which appears to be very important for the results of medical examinations. The article discusses the results of investigations conducted within different medical establishments with the purpose of identifying all the possible forms of bias in questionnaires including bias in the way of designing questions, in the way of designing the questionnaire itself, and the way of administrating the questionnaire. The specialists conducting researches found 48 types of bias in questionnaires.

In their article, Choi and Pak resort to the use of the reviewing study design.

The findings of the article are based on reviewing medical literature on this issue. In general, twenty nine different sources by different specialists on medicine are reviewed in this article in order to develop simple and convenient strategy on excluding all the forms of bias from medical questionnaires. These sources belong to different periods of time beginning form the first part of the twentieth century and ending with the first part of the twenty-first century which presents a considerable basis for conclusions in the area of questionnaire bias.

The authors of the article applied a number of research methods including literature reviews, meta-analyses, and systematic reviews. They checked different types of medical questionnaires applied in practice including personal interviews, mailed questionnaires, telephone interviews, routine data and registries, surveys on the Internet, focus groups, and surveillance systems. Such considerable area of research enabled the authors of the article to understand the main peculiarities of any kind of questionnaires which is important for avoiding bias indicative for particular type of questionnaire.

The results of the researches described in the article can be interpreted as highly convincing. Avoiding typical bias in medical questionnaires is very important for collecting consistent data needed in improving the health care system of the country which is also supported by the findings of the other authors (Mcglynn, Damberg, Ker & Brook, 1998). Among the most significant problems found by the researches in medical questionnaires are ambiguous questions, complex and lengthy questions, questions that are made up of two or more questions, sensitive questions, technical jargon, uncommon and difficult words, and vague words (Choi & Pak, 2005). The other significant problems are connected to the design of the questionnaire itself and the administrating techniques for its use. For example, some difficulties may be presented by the format such as horizontal format which makes it difficult to see the whole concept of the questionnaire. The other problem is too long questionnaires which make it very difficult for the respondents to concentrate and provide the conductor of the research with reliable data.

Concluding on all the above-discussed information, it should be stated that the article A catalog of biases in questionnaires by Bernard Choi and Anita Pak offers a well thought-of argument on the importance of avoiding different types of bias in medical questionnaires. The findings of the articles research present trustworthy facts supporting the importance of avoiding such irrelevant questionnaire techniques as using technical jargon, ambiguous questions, complex and lengthy questions, questions that are made up of two or more questions, sensitive questions, uncommon and difficult words, and vague words, and making too long questionnaires.

References

Choi, B. C. K., & Pak, A. W. P. (2005). A catalog of biases in questionnaires. Preventing Chronic Disease, 2(1), 1-13.

Mcglynn, E. A., Damberg, C. L., Ker, E. A., & Brook, R. H. (1998). Health Information Systems: Design Issues and Analytic Applications. Santa Monica, CA: Rand. Web.

Introduction

Today, Coca-Cola is one of the worlds largest and most successful manufacturers of soft drinks. The enterprise licenses and sells more than 500 of its brands of soft drinks, mainly carbonated, and several non-carbonated beverages, such as water, water with additives, juices and juice drinks, ready-to-drink tea and coffee, as well as energy and sports drinks. The corporation actively uses brands, financial strength, unsurpassed sales system, extensive geography of presence, talent, and commitment to its business to become more competitive and accelerate its growth. Coca-Cola is an excellent choice for researching and studying the company from the point of view of the Milestone Project.

Explanation

The authors choice is expressed in the interest of Coca-Cola, its unique products, stylish and corporate design, sequence of strategic actions, excellent branding, positioning, personalization, and diversification. One should note that Coca-Cola is one of the leaders in the supply chain management and logistics processes, focusing on innovative technologies, product specifications, and critical standards for interaction with suppliers and customers (Goldman, 2022). Furthermore, the company concentrates on caring for the environment and nature by recycling plastic waste (Daniel, 2022). Coca-Colas marketing strategy is unusual and unique, especially considering how widely known this brand is. Engagement and interaction with consumers are what the company focuses on. Since Coca-Cola has no stores to direct customers to, its goal is to increase brand awareness, awareness of future advertising campaigns, and credibility.

Conclusion

Summarizing the above, the author should state that Coca-Cola is a unique, special and inimitable firm in the field, ideally suited for analysis within the Milestone Project. Its tactics and strategy of interacting with the client and presenting products to the buyer are among the best. Coca-Cola constantly monitors current trends, takes notes, and improves its business management system. The corporation cares about nature and does everything possible to avoid negative consequences for the environment. Moreover, it has an established supply chain management system considering four management functions.

References

Daniel, E. (2022). Coca-Cola Foundation strengthens plastic waste management. The Guardian. Web.

Goldman, S. (2022). How AI helps Coca-Cola boost supply chain procurement. VentureBeat. Web.

Introduction

The Coca-Cola Company was founded in Atlanta Georgia on May 27^th 1924. Over the years, it has grown to become the worlds largest producer of soft drinks. Initially, the coke chemical formula was intended to be a patent medicine. This was what the inventor, John Pembeton had in mind. However, this 19^th century formula was bought by an entrepreneur by name, Asa Candler and it was because of his prowess in the marketing field that Coca-Cola became a household name by the 20^th century. Today, the company boasts presence of the brand is well over 200 nations of the world (Bell, 2004).

From its Atlanta headquarters, The Coca-Cola Company, otherwise referred to as Coke is has built its brand and established itself as the leading company in soft drinks the world over. Coke brags ownership of the four most consumed soft drink brand in the world. This five are Coca-Cola, which is the drink carrying the name of the company, Diet Coke, which was made as a measure against the debate about the health of their products, Fanta, and Sprite. But the company has a variety of other brands too which include Dasani mineral water and the more recent product, Novida.

Coca-Cola has entered a strategic partnership with Dr Pepper Snapple Group. Under this arrangement, the company also sells their brands in all the countries with an exception of North America, Europe and Australia. The most famous of these products is the Schweppes family of drinks although there is also Crush and Dr. Pepper. We will look at the Company profile in the subsequent pages as we consider the production processes and procedures.

Inputs

Input is a very critical stage in the production stage. This is because the input to a great degree determines the output this explains why inputs are often referred to as resources. Inputs are resources that are harnessed to produce outputs. Experts have observed that Economic growth is usually as a result of increased production which in turn is a result of increased inputs. There are three broad categories of inputs that the Coca-Cola Company uses. They are the human resources or inputs, the material resources or inputs and the intangible resources or inputs of the three; the human resource input is the most important. Without human resource, there would be no way of harnessing the other inputs to end up with the desired products (May, 1988). Productivity of the human resource is what determines the quality and quantity of production. The Coca-Cola Company has an online staffing system on the website to make sure the best personnel are hired for a given job.

The other category of inputs is the material resources. Many tangible inputs are important for the company but since it is in soft drink production, the most important would be those that are directly used in the production process. The Coca-Cola Company in Atlanta Georgia usually produces the concentrate which it then sells to its registered bottlers around the world for processing. Ideally, a bottle of soda will be made up of a concoction of carbonated water, sugar, caffeine, phosphoric acid and some natural sweeteners or flavorings. The chemical engineers usually come up with different flavors to satisfy the taste buds of the consumers.

Lastly, there are those intangible inputs. They are intangible because it is hard to quantify them yet they are very important in the production process. Some good examples are workers morale and the company good will. Employees that are demoralized will produce substandard products which are not desirable.

Process

The Production process of Coca-Cola like that of any other significant organization is what matters the most. For instance, Coke has continued over the years to produce the concentrate which it then sells its various franchises all over the world. The licensed bottlers then produce the soft drinks and circulate them in their region. Production usually entails combining a variety of materials, which we refer to as inputs to end up with something palatable.

The very first part in this process is the part of mixing the relevant ingredients. Coca-Cola Company has one major formula for concentrate syrup that is regarded to be a trade secret. This is usually mixed in various proportions with carbonated water, phosphoric acid, and some natural sweeteners this is the most important part of the production process since the original taste of the soft drink needs to be maintained to keep the customers satisfied (Coca-Cola Company, 2009).

Once the soft drinks have gone through this stage, they will proceed to the next important step of quality control. This is a step where the quality of the drink is controlled to ensure that clean water was used, the ingredients dissolved well and the flavors were not lost in the process. Another reason for this is the need to comply with the regulatory bodies which have been setup to ensure manufacturers produce only high quality products that are fit for human consumption. Once the drinks have passed this stage, the other important stage is the bottling stage. Without bottling, the drinks can not be portable and that will mean that they will not reach to the market. Coca-Cola has different bottles that have been engineered for different occasions. The traditional plastic bottle for instance has been widely accepted as the best option for travelers as there is no risk to breakage involved.

Outputs

Coca-Cola is the company that produces the five most consumed soft drinks in the world. This five are Coca-Cola, which is the drink carrying the name of the company, Diet Coke, which was made for the diabetic people, Fanta, and Sprite. But the company has a variety of other brands too which include Dasani mineral water and the more recent product, Novida. Coca-Cola has entered a strategic partnership with Dr Pepper Snapple Group. Under this arrangement, the company also sells their brands in all the countries with an exception of North America, Europe and Australia. The most famous of these products is the Schweppes family of drinks although there is also Crush and Dr. Pepper.

In addition, the Coca-Cola Company makes or in some cases licenses well over 3,000 soft drinks. These soft drinks are under over 500 different brand names. The outputs are spread in a network of more than 200 nations (Candler, 1998). The firm does not do bottling itself, but it owns 34% of the worlds leading bottler which is called Coca-Cola Enterprises (CCE). The coca-cola company produces and distributes soft drinks concentrates and syrups worldwide. This syrups and concentrates are then further developed by the respective franchises into beverages. The biggest product line for the company is the ready to drink soft drinks. The most famous brand is the Coca-Cola brand although other brands like diet coke, Fanta and sprite equally have a big market share (Yahoo Finance, 2010).

According to the company website, the company has well over 800 low and no calorie drinks (Coca Cola Company, 2009). The firm also produces fountain syrups, flavoring ingredients and sweeteners. It markets the soft drinks primarily under four brand names, diet coke, sprite, Fanta, and coca-cola. The Company usually sells its output products to distributors, retailers, and other vendors. The concentrates and syrups are sold to different franchises that will later produce the drinks and also resale them to retailers.

Conclusion

The Coca-Cola Company has grown from the time of inception in the 19th century to become the worlds leader in soft drinks production and distribution. This success can be traced back to the founder who was well versed in marketing and used the skills to place the company on the cutting edge in business. The differentiation strategy the company has employed also means that the chances of one choosing from their assortment of drinks is very high.

Many have argued that the formula of the coke which is the reason for their success is the reason behind the huge success. This formula is the biggest trade secret ever and it is usually only two executives who are aware of the formula. This has largely helped to maintain the privacy of the product. Coca-Cola is also reputed to be one of the companies that have widely used symbols as a means of effectively communicating to its large base of clients

In addition, the company has been a market leader in sustainable development initiatives. The very first step was seen in the invention of diet coke. This was because researchers found out that one of the biggest contributors of unwanted calories in the diets of people today is the soft drinks. Diet coke was therefore made which was largely marketed as a healthy soft drink. These are some of the salient factors that have enabled the Coca-Cola Company beat competition and remain a market leader in soft drink production the world over (My Green Element, 2010). By and large, the Coca-Cola Company has been a leader in the business field and it has continually been an innovator in many diverse ways as this recent sustainable initiatives are proving.

References

Bell, L. (2004). The Story of Coca-Cola. London: Black Rabbit Books.

Candler, E. (1998). Classic Cooking With Coca-Cola. New York: Everywhere Press.

Coca-Cola Company. (2009). Coca-Cola Products. Web.

May, C., (1988). How Coca-Cola obtains its Coca. New York Times P.3.

My Green Element (2010). A greener Coca-Cola. Web.

Yahoo Finance (2010). The Coca-Cola Company Profile. Web.