Question

coca cola in India? what is your recommendation to achieve a better
1)Economic Factors
2)political Factors
3) Legal factors
4)cultural Factors
5)Educational factors
Briefly Give recommendation to each factors?

Answer 1

1) Economic Factor - 50% of the market share is captured by coca cola as a carbonated beverage. Due to the increase in the tariffs the net revenue has increased by 8%. Customers demand has shifted from sugar contain drinks to low sugar contain drinks. The CEO has launched Coke Zero Sugar in 2018 which had high demand in the market. Therefore, in near future their will be high demand for Coke Zero Sugar.

Recommendation - Coca-Cola should keep producing Zero Sugar Coke and keep supplying it in the market so that the net revenue increase.

2) Political Factor - Coca-Cola can face high political issues due to the ingredients that are being used for making the beverage. Due to its chemical components which are present in the bevarage which can contain effect the health condition of people. Coca-Cola needs to change the chemical components before government takes any strict action against it.

Recommendation - Coca-Cola can improvise the chemical components present in it before it faces in political issues.

3) Legal factors - Legal problem that can be faced by Coca-Cola is by the local law of the country from where the company is operated. Different countries has different laws when it comes to sugar and caffeine. Before selling it into the market the company needs to make sure that they are aware about the rules and regulations of the market.

The another legal problem faced by Coca-Cola was not paying the labour properly and treating them unfairly, which had brought in labour strick

Recommendation - Before launching the product into the market Coca-Cola should run a test to know of customer are happy with the product or not.

Labour should be treated equally and paid accordingly. If labour starts going for strick then it will affect the brand image.

4 ) Cultural Factor - the biggest cultural factor that has affected Coca-Cola was people changing its demand from carbonated drinks to health drinks due to health concern. Very common diseases like obesity if consumed from long run. Many middle East countries has resticted itself from selling Coca Cola just because it is produced in America.

Recommendation - Since the current generation is health concerned Coca-Cola should keep producing Low - sugar or zero - sugar drinks.

Coca-Cola should also try to expand its market in the areas where selling of Coca Cola is restricted by doing friendship with the countries and spread equality.

5) Educational factors - Coca-Cola had brought in program known as Coca-Cola Valued Youth Program. In this program number of 100 students had taken in initiative to teach underprivileged students to change their lives. Coca-Cola has also given scholarship to many students to go ahead with further studies.

Recommendation - Coca-Cola should continue providing education to students who are unable to go school. This will help Coca-Cola to develop its brand image in the public and will know how Coca-Cola is helping the society to move forward by helping the children with free education.