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The Coca Cola Company: Soft Drinks

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According to Baah and Bohaker (2015), John S. Pemberton founded the Coca-Cola Company in 1886. It is a retailer, marketer, and one of the world's leading distributors of non-alcoholic soft drinks. With over 500 brands ranging from energy drinks to juice beverages, bottled water, and soft drinks, the company has a global retail presence in over 200 markets. Prospects (2015), on the other hand, claims that the brand is well known for its soft drink Coke. The company's key goal is not only to inspire the world by making happy memories but also to ensure that meaning and distinction are achieved. Moreover, in its vision, the company ensures the existence of constant trends in the external surrounding. Such strategies enable it to survive in the transitional global market.

Management Tools

Baah & Bohaker (2015) affirm that the company’s strategic plan is steered by their mission which is to inspire creativity and create fun. In order to achieve this, the company is divided into hierarchical departments. The departments include: the production director and managers, supervisors, technicians and operatives. Prospects (2015) emphasizes that these employees position is the major source of authority whereas rules and regulations form the major sources of influence. Although the company has successfully adopted a steady growth mechanism, it cannot fully rely on this. Thus it has come up with other master-plans like market development. This enables Coca-Cola to introduce new brands which may be more appealing to a new group of clientele. For instance, health and fitness being some of the most trending topics, it strives to grab the opportunity and dominate the market. Thus the company has introduced other merchandise like coke zero and stevia sweetener. Moreover it has expanded its output investments by joining the fluid milk market. This boosts its goal of attaining new market segment.

Strategies Used to Overcome Competitors

Esteryl (2015) points out that competition in the beverage industry is extremely tight with PepsiCo being Coca-Cola’s main rival. Both companies have managed to monopolize global beverage industry because of their massive investment in brand identity. Hence, Coca-Cola strives to emerge the best by not only spending lump sum on advertisement but also on product differentiation. The significance of product differentiation is because somewhat all the beverage companies have the same products. Thus it is the only option to get competitive advantage over the competitors.

In addition, Esteryl (2015) contends that Coca-Cola has an intensive marketing game plan. It outlays numerous campaigns which entice clients. The organization’s objective in its campaigns is purposely to reach out to people of all ages, races and backgrounds across the globe. The form of diversity in its marketing campaigns boosts Coca-Cola Company’s popularity as opposed to its greatest rivals Pepsi who never invest a lot of commitment in advertisements.

Success in Partnership

According to Esteryl (2015), most companies in the beverage industry can take advantage of opportunities in the emerging markets. The consumption of beverages is tremendously growing in the Asian countries like China. Just as affirmed by there exists nations in which the average consumption per capita remains under 50 servings daily. In this bracket, the countries include the two most populated nations in the world, India and China. There markets give massive growth opportunities for the beverage industry. Coca-Cola has always been cited to grab such opportunities. This helps in increasing the company’s market share through the maintenance and growth of its product presence in such emerging markets, World Bank (2015).

Baah & Bohaker (2015) states that the company also works in partnership with their suppliers. These supplying companies provide the system of Coca Cola Company with materials such as ingredients, machinery and packaging. In order for the two companies to have a common understanding, the supplier’s policies must be in compliance with the applicable laws and regulations. Issues such as child and forced labor, racial discrimination, working conditions, wages, health and the environmental issues have to be looked into. But most importantly, the compliance has to be in line with the Coca Cola’s supplier guiding principles, (SGP). In a bid to achieve these, Coca Cola Company not only takes it upon itself to train the suppliers but also communicate such expectations to the administrative team of the supplying companies. For instance, the suppliers of the Coca Cola bottles so that to curb the emergence of suppliers not covered by Coca Cola program (Prospects, 2015).

Lastly is on the beneficent relationship between the Coca Cola Company and their clients. According to Baah & Bohaker (2015), the company works hand in hand with their customers in addressing the areas of concern. This enables the company to add value that surpasses the beverage products. Groups of clientele include retailers, restaurants and other independent businesses. This kind of association helps in creating mutual benefit.

Conclusion

Coca-Cola has grown consistently to become the largest beverage company in the world. The company has been able maintain the first position because of its ability to satisfy specific markets and customer needs. With this kind of preeminence, the company has set an objective of doubling its revenue by 2020 (Prospects, 2015). Owing to the increasing concerns of health and obesity, it has come up with a strategy of producing sensitive merchandize. This boosts its bid to remain the most accepted beverage company globally. This will enable it achieve its goals thus steering it success.

The strategy of Coca Cola focuses on three specific areas which include: consistence in growth and dominance in the beverage industry; valuable product development and concentric diversification. This enables the company to maintain consistency in both industrial and remote environments. Such factors are backed by strong marketing strategies, agents that help the organization to stand the test of time in defending its top position in the beverage industry.

References

Baah, S., & Bohaker, L. (2015). The Coca-Cola Company. Culture, 16, 17.

Esteryl, Mike,(2015): "Share a Coke' Credited With a Pop in Sales." World Street Journal [New York] : n. pag. Wsj.com. Web. 23 Mar. 2015. .

Prospects, G. E. (2015). Having Fiscal Space and Using It. World Bank [Official website].

November 11, 2021
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