Question

Create a 3-5 page paper about a current business listed on the NYSE and its Economic journey utilizing the economic principles studied in this class. Any ideas on how to start it?

Answer 1

I don't know what you have learned in the class.... still I am trying to help you.

Soft drink COCA COLA pvt. ltd.
The drink Coca-Cola was originated in 1886 by an Atlanta pharmacist, John S. Pemberton (1831–88), at his Pemberton Chemical Company. His bookkeeper, Frank Robinson, chose the name for the drink and penned it in the flowing script that became the Coca-Cola trademark. Pemberton originally touted his drink as a tonic for most common ailments, basing it on cocaine from the coca leaf and caffeine-rich extracts of the kola nut; the cocaine was removed from Coca-Cola’s formula in about 1903. Pemberton sold his syrup to local soda fountains, and, with advertising, the drink became phenomenally successful. By 1891 another Atlanta pharmacist, Asa Griggs Candler (1851–1929), had secured complete ownership of the business (for a total cash outlay of $2,300 and the exchange of some proprietary rights), and he incorporated the Coca-Cola Company the following year. The trademark “Coca-Cola” was registered in the U.S. Patent Office in 1893.

Under Candler’s leadership, sales rose from about 9,000 gallons of syrup in 1890 to 370,877 gallons in 1900. Also during that decade, syrup-making plants were established in Dallas, Los Angeles, and Philadelphia, and the product came to be sold in every U.S. state and territory as well as in Canada. In 1899 the Coca-Cola Company signed its first agreement with an independent bottling company, which was allowed to buy the syrup and produce, bottle, and distribute the Coca-Cola drink. Such licensing agreements formed the basis of a unique distribution system that now characterizes most of the American soft-drink industry. Capitalized at $100,000 in 1892 upon incorporation, the Coca-Cola Company was sold in 1919 for $25 million to a group of investors led by Atlanta businessman Ernest Woodruff. His son, Robert Winship Woodruff, guided the company as president and chairman for more than three decades (1923–55).

The post-World War II years saw diversification in the packaging of Coca-Cola and the development or acquisition of new products. The trademark “Coke,” first used in advertising in 1941, was registered in 1945. In 1946 the company purchased rights to Fanta, a soft drink previously developed in Germany. The contoured Coca-Cola bottle, first introduced in 1916, was registered in 1960. The company also introduced the lemon-lime drink Sprite in 1961 and its first diet cola, sugar-free Tab, in 1963. With its purchase of Minute Maid Corporation in 1960, the company entered the citrus juice market. It added the brand Fresca in 1966.

In 1978 Coca-Cola became the only company allowed to sell cold packaged beverages in the People’s Republic of China. In 1982 the company introduced its low-calorie sugar-free soft drink Diet Coke (originally named Diet Coca-Cola). In 1985 the company changed the flavour of Coca-Cola, which thereafter was commonly referred to as New Coke. However, it was not well received, and, owing to the public outcry, Coca-Cola revived its original flavour, which was then marketed as Coca-Cola Classic. From 1982 to 1989 the company held a controlling interest in Columbia Pictures Industries, Inc., a motion-picture and entertainment company.

New markets opened up for Coca-Cola in the early 1990s; the company began selling products in East Germany in 1990 and in India in 1993. In 1992 the company introduced its first bottle made partially from recycled plastic—a major innovation in the industry at the time. Coca-Cola created many new beverages during the 1990s, including the Asia-marketed Qoo children’s fruit drink, Powerade sports drink, and Dasani bottled water. Coca-Cola also acquired Barq’s root beer in the United States; Inca Kola in Peru; Maaza, Thums Up, and Limca in India; and Cadbury Schweppes beverages, which were sold in more than 120 countries across the globe.

In the early 2000s Coca-Cola faced allegations of illegal soil and water pollution, as well as allegations of severe human rights violations. In 2001 the United Steelworkers of America and the International Labor Rights Fund (ILRF) filed a lawsuit against Coca-Cola and Bebidas y Alimentos and Panamerican Beverages, Inc. (also known as Panamco LLC; the primary bottlers of Coca-Cola’s beverages in Latin America), claiming that the defendants had openly engaged so-called “death squads” to intimidate, torture, kidnap, and even murder union officials in Latin America. The controversy gained worldwide attention and led several American universities to ban the sale of Coca-Cola products on their campuses. The lawsuit was eventually dismissed.

In 2005 the company introduced Coca-Cola Zero, a zero-calorie soft drink with the taste of regular Coca-Cola. In 2007 the company acquired Energy Brands, Inc., along with its variously enhanced waters. That same year Coca-Cola announced that it would join the Business Leaders Initiative on Human Rights (BLIHR), a group of companies working together to develop and implement corporate responses to human rights issues that affect the business world.

Marketing of Coca Cola.

Segmentation helps the brand to define the appropriate products for specific customer group; Coca Cola doesn’t target a specific segment but adapts its marketing strategy by developing new products.

Similarly it uses mix of undifferentiated & mass marketing strategies as well as niche marketing for certain products in order to drive sales in the competitive market. Its Cola is popular worldwide & is liked by people of all age group while the diet coke targets niche segment for people who are more health conscious.

Coca Cola uses competitive positioning strategy to be way ahead of its competitors in the Non-alcoholic beverages market.

Competitive advantage in the Marketing strategy of Coca Cola
Coca Cola has competitive edge over its competitors in terms of Operations, Cost control, Brand portfolio, Channel marketing, Collaborative customer relationship.

Operations – Coca cola has outsourced the bottling operation to the franchisee, FEMSA which is the largest Bottling franchisee of the Coca-Cola trademark beverages in the world. It helps the company in capturing important growth opportunities in under-developed non-carbonated beverage segment and in strategic acquisitions by entering into agreements to jointly acquire companies with The Coca Cola Company.

Cost control – Its diversified product portfolio, Outsourcing operations & economies of scale helps it in cutting its operational cost & increase its profitability.

Strong Brand Portfolio – Company offers a powerful and wide portfolio of beverages to its customers, and continuously explores promising beverage categories to capture growth in its different markets. Its beverage portfolio consist of carbonated soft drinks, bottled water, juices, orangeades, iso-tonics, teas, energy drinks, milk, coffee and even beer in some markets such as Brazil.

Collaborative customer relationship – Coca Cola strongly believes in participative marketing creating shared values for all stakeholders. Tailoring its extensive portfolio of products and packages for their stores based on the local market’s socioeconomic demographics, relevant consumption occasion and the store’s distinctive characteristics.

Distribution strategy of Coca Cola

(1) the pre-sale system, which separates the sales and delivery functions, permitting trucks to be loaded with the mix of products that retailers have previously ordered, thereby increasing both sales and distribution efficiency,

(2) the conventional truck route system, in which the person in charge of the delivery makes immediate sales from inventory available on the truck,

(3) a hybrid distribution system, where the same truck carries product available for immediate sale and product previously ordered through the pre-sale system,

(4) the telemarketing system, which could be combined with pre-sales visits and

(5) sales through third-party wholesalers of the products.

Brand equity in the Marketing strategy of Coca Cola
Coca Cola is the one brand which is recognized by everyone around the globe. When we talk about brand equity then it is its value & it’s about stories, memories, associations, and human connections (although of course, these connections would have been very carefully and deliberately engineered by talented marketers over many years and countless board meetings).

This is something that Coca-Cola has been the master of for over 100 years. This equity is derived from people’s willingness to pay a premium for the brand and an unwillingness to accept substitutes. Coca-Cola’s marketing strategy has always been to associate happiness, positivity and the good life with their products, & that’s how they are able to create high TOMA (Top of mind awareness).

Competitive analysis in the Marketing strategy of Coca Cola
Big Giants in the Non-alcoholic beverages segment have similar strategy & objectives which means innovation & creative marketing campaigns can help the companies to differentiate from each other. Competition from the local players is the other major issue that company is facing now days. Pepsi is the single largest main competitor of Coca-Cola having products across the segments.

Market analysis in the Marketing strategy of Coca Cola
Non-alcoholic beverages market is ever-growing industry & with the advent of growing Asian markets & developing nations the consumption will be higher also due to the changing lifestyle, economic conditions & changing buying habits. In this industry customer have got lots of options ranging from water to tea/coffee to soft drinks, so chances of customer switching to another brand is high. The only way to differentiate products & retain customers is the strong brand building, and creating pull in the market.

Customer analysis in the Marketing strategy of Coca Cola – Coca cola targets a mass market. And the customer expectation is low price, great taste, convenience & accessibility and various options to choose from.

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