Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Team 40:
Kayla Bright
Michael Cunningham
Madeline McLean
Tim OSullivan
Marissa Oudt
Leslie Owen
Victor J. Piscitello
October 23, 2017
Introduction
Coca-Cola is a large company that has many aspects to it. In solve major marketing issues in the
company, the root of the problem must first be discovered. This document contains a marketing
cycle. Currently, we are seeing less drastic shifts in sales trends which suggests the company is
in the maturity phase of its company life cycle, according to Stivaros (2016).
The Coca-Cola Company and PepsiCo Inc. dominate 58.3% of the market, making the industry
an oligopoly. The breakdown of the other 41.7% of the market share is illustrated on Figure 1 on
the attachments page. Industry growth over the next five years is expected to decrease annually
by 1.3%, caused by the consumer focus on healthier habits, which is depicted in Figure 2.
However, this industry has low revenue volatility and annual profit of $3.7 billion.
NAICS
The Naics code that the Coca-Cola company falls under is 312111a- soft drink manufacturing in
the US. There are 273 businesses operating in this industry with annual growth of -0.9%. With
an increase in our marketing efforts as well as specifying our target markets for our different
products, we can continue to expand our company while overcoming the negative growth from
The Coca-Cola Company was established in 1886. Since then, they have grown to be the largest
global provider of beverages. They have 250 bottling partners and 900 plants to produce their
massive product portfolio, which includes 500 brands and 3,900 different beverages. Coca-Cola
products are sold in 200 countries through 24 million retail customer outlets. Coca-Colas
Unique Selling Proposition is that they are the number one beverage brand in terms of sales with
more than 500 products (Marketline, 2016). This Unique Selling Proposition is a strength that
SWOTT Analysis
Coca-Colas SWOTT Analysis identifies the factors that impact the firm and then describes vital
strengths, correct weaknesses, exploit opportunities, and avoid threats. This SWOTT analysis,
Coca-Colas strengths include their customer loyalty which contributes to their company value of
$79.2 billion. These factors have allowed Coca-Cola to maintain their large market share.
One weakness that the Coca-Cola company faces is their undiversified product portfolio; Coca-
Cola only offers products within the beverage industry. The consumer trend toward healthier
products provide an opportunity for the company to acquire and market additional subsidiaries
One threat to the company is the intense competition between other beverage distributors
(Bhasin, 2017). PepsiCo, the second largest beverage distributor, is Coca-Colas largest direct
competitor and companies like Starbucks and Dunkin Donuts are the largest indirect
Young adults, nonwhites, and low-income are the three most likely groups to drink soda
according to Gallup polling. 63% of Americans ages 19-29 report drinking soda on a regular
basis. 60% of nonwhites drink soda compared to the 55% of whites that drink soda. 64% of
Young Adults
One of Coca-Colas main target markets is young adults. Millennials buy an average of 15
beverages per week, whereas older generations only buy an average of 8 beverages per week
according to Investopedia. However, this does not necessarily mean that this demographic is
always reaching for carbonated drinks. According to Investopedia, carbonated drinks are only
18% of Millennials weekly beverage purchases. Changing product positioning for this
demographic to entice them to purchase our beverages will allow for the opportunity to generate
additional revenue.
Family-oriented People
Bureau, 49% of households that are married couples and 69% have children. This segment
purchases products for their entire household. According to FMIs 2016 US Grocery Shopper
Trends report, 6 out of 10 households report dividing shopping duties. Therefore, it is imperative
Health-conscious Consumers
The newest segment that Coca-Cola is targeting are health-conscious consumers. Based on
marketing data from Mintel, 42% of consumers are interested in healthier options and 34% are
interested in natural options. Adjusting to this consumer trend and the steady decline of the soda
industry, Coca-Cola is offering healthier alternatives through subsidiary brands such as Dasani
Competitive Analysis
Competitive Landscape
The Coca-Cola Company and PepsiCo have similar strengths and weaknesses. Both companies
hold substantial market share, and they are both facing criticism for adverse health and
environmental effects caused by the production and consumption of their beverages. The sugar
and artificial dyes in both Coke and Pepsi sodas has been linked to obesity and cardiovascular
Despite these similarities, the two major industry leaders are also very different. Cokes product
mix is exclusively beverages, whereas PepsiCo derives a big share of revenue from the product
items in their mix that are non-beverage. While this is one advantage for PepsiCo, they put
themselves at a disadvantage through controversial ads. The Coca-Cola Company targets various
market segments and their beverages are enjoyed by people of many ages. Coke products are
seen by a wider range of individuals, which can allow for greater sales, but it also means higher
marketing costs.
Internal Competition
Two elements of internal competition in the soft drink industry include price level and variety of
product portfolio. Purchasing behavior depends on consumer income, but Coca-Colas strong
brand loyalty means consumers are willing to pay more for Coke products.
Modern health trends have forced soda producers to include healthier alternatives in their
product mix. The Coca-Cola Company has developed 17 new low sugar products. This
diversified product portfolio allows Coke to differentiate itself from industry competitors.
It enhances brand loyalty and also gives a producer a point of difference when it comes to
External Competition
Producers in the soda industry face external competition with other ready to drink producers. The
growth of the bottled water and juice production industries are a direct result of consumers
seeking healthier products. Even though the Coca-Cola Company has broadened their portfolio
of healthy options, they still face obstacles stomping put their sugary reputation.
Market Challenges
The top three market challenges include changes in consumer preferences, growing awareness
about food/beverage safety, and staying relevant against their competitors. Consumers are
preferring products with less sugar and calories, consumers are becoming concerned about how
exactly the product was made and small companies can pose a threat to large producers.
In summary, Coca-Cola is a strong company but there a few challenges they must overcome. In
order to overcome the challenge with consumer preference towards healthier options we
brands, or market Coca-Cola as a healthy brand, changing the overall narrative of the company.
In order to strengthen digital presence, we recommend more digital ads, customer interaction on
social media, and a more interactive app. Lastly, to stay relevant with competitors, we
recommend more positive ads, more community involvement, and a consumer loyalty program.
Attachments
Strengths Weaknesses
Company value $79.2 billion Undiversified product portfolio
Largest market share in beverages Absence in health beverages
Strong marketing and advertisements Negative publicity
Customer loyalty
Opportunities Threats
Increasing demand for healthy Intense direct competition (PepsiCo) and indirect competition
beverages (Starbucks)
Growth in beverage consumption Legal requirements to disclose negative information on labels
Increased bottled water demand Water scarcity
Growth through acquisitions
New emerging markets in developing
nations
Trends
Growth of health trends
Clean/ healthy packaging
Demand for sparkling water
Millennial market
2016 - Mid - Year Rankings: US Beverages. (2016). Retrieved September 17, 2017, from
http://www.brandindex.com/ranking/us/2016-mid/category/Beverages
Bonnett, M. (2017, April). Carbonated Soft Drinks. Retrieved October 18, 2017, from
http://academic.mintel.com.ezproxy1.library.arizona.edu/homepages/sector_overview/23/
Brown, C. M., Dulloo, A. G., & Montani, J. (2008). Sugary drinks in the pathogenesis of obesity
doi:10.1038/ijo.2008.204
Bureau, U. C. (2016, November 17). The Majority of Children Live With Two Parents, Census
from https://www.census.gov/newsroom/press-releases/2016/cb16-192.html
Coca-Cola At A Glance: KO101 Video and Infographic. (n.d.). Retrieved September 16, 2017,
from http://www.coca-colacompany.com/our-company/infographic-coca-cola-at-a-glance
Gallup, I. (2013, August 15). Regular Soda Popular With Young, Nonwhite, Low-Income.
http://news.gallup.com/poll/163997/regular-soda-popular-young-nonwhite-low-
income.aspx
Hobbs, T. (2016, December 12). Three challenges awaiting Coca-Colas new CEO. Retrieved
challenges-awaiting-coca-colas-new-ceo/
Investopedia. (2016, May 23). Coke, Pepsi Win Millennials with 'Healthier' Sodas. Retrieved
win-millennials-healthier-sodas-ko-pep-cmg.aspx#ixzz4vqJXQcBc
Marketline Coca-Cola Bottling Co. Consolidated SWOT Analysis. (2016). Coca Cola Bottling
Skrovan, S. (2017, January 11). The state of the grocery shopper in 2017. Retrieved October 18,
2017/433815/
The Stevenson Company. (2017, July 26). Genders Role in Purchases: I Dont Mean to Sound
role-in-purchases-i-dont-mean-to-sound-sexist-but/
Stivaros, C. (2016, October). IBISWorld Industry Report 31211a. Soda Production in the US.