Indian Institute of Management Rohtak

Batch 2019-21
Marketing Management-I
Term I
Term Paper on Coca Cola - Product

Group No 08
Coca-Cola Company
COMPANY PROFILE
Coca-Cola the product that has given the world its best-known taste was born in Atlanta,
Georgia on May 8th, 1886. Coca-Cola company is the world’s leading manufacturer,
marketer and distributor of non-alcoholic beverage concentrates, syrups used to produce
nearly 400 beverage brands. It sells beverage, concentrates and syrups to bottling and
canning operators, distributors, fountain retailers and fountain wholesalers. The company’s
beverage product comprises of bottled and canned soft drinks as well as concentrates,
syrups and not-ready-to-drink powder products. In addition to this, it also produces and
markets sports drinks, tea and coffee. The Coca-Cola company began building its global
network in the 1920’s. now operating in more than 200 countries and producing nearly 400
brands, the Coca-Cola system has successfully applied a simple formula on a global scale.
The Coca-Cola company and its network of bottlers comprises the most sophisticated and
pervasive production and distribution system in the world more than anything, that system
is dedicated to people working long and hard to sell the products manufactured by the
company. This unique worldwide system has made the coca cola company the world’s
premier soft drink enterprise. From Boston to Beijing, from Montreal to Moscow, Coca-Cola,
more than any other consumer product, has brought pleasure to thirsty consumer around
the globe. For more than 115 years, Coca-Cola has created a special moment a special
moment of pleasure for hundreds of millions of people every day.
The company aims at increasing shareowner value over time. It accomplished thus by
working with its business partners to deliver satisfaction and value to consumers through a
worldwide system of superior brands and services, thus increasing brand equity on am
global basis. They aim at managing their business well with people who are strongly
committed to the company values and culture and providing an appropriately controlled
environment, to meet business goals and objectives. The associates of this company jointly
take responsibility to ensure compliance with the framework of policies and protect the
company’s assets and resources whilst limiting business risks.

The business system of Coca-Cola in India directly employs approximately 6000 people, and
indirectly creates employment for many more related industries to wash procurement,
supply and distribution system.
COMPANY ACQUISTIONS
The company has a long history of acquisitions. Coca-Cola acquired minute maid in 1960 and
in 1982, it acquired the movie studios Columbia pictures for $692 million but Columbia was
sold to Sony for $3 billion in 1989. It acquired the Indian cola brand Thumbs up in 1993, and
Brags in 1995. In 2001, it acquired the odwalla brand of fruit juices, smoothies, and bars for
$181 million. In 2007, it acquired Fuze beverage from founder Lance Collins and Castanea
Partners for an estimated $250 million.
The company's 2009 bid to buy Chinese juice maker Huiyuan juice group ended when China
rejected its $2.4 billion bid, on the grounds the resulting company would be a virtual
monopoly. Nationalism was also thought to be a reason for aborting the deal.
In 2011, it acquired the remaining stake in Honest tea having bought a 40% stake in 2008 for
$43m. In 2013, it finalized its purchase of ZICO, a coconut water company. In August 2014, it
acquired a 16.7% (currently 18.5% due to stock buy backs) stake in Monster beverage for
$2.15 billion with an option to increase it to 25%, as part of a long-term strategic
partnership that includes marketing and distribution alliance, and product line swap. In
2015, the company took a minority stake ownership in the cold pressed juice manufacturer,
Suja Life LLC. In December 2016, it bought many of the former SAB Miller’s Coca-Cola
operations. The Coca-Cola Company owns a 68.3% stake in Coca-Cola Bottlers Africa. Coca-
Cola Bottlers Africa's headquarters located in Port Elizabeth South Africa. In 2017, The Coca-
Cola Company acquired Mexican sparking water brand Topo Chico.
On August 31, 2018, it agreed to acquire costa coffee from Whitbread for £3.9bn. The
acquisition closed on 3 January 2019. The Coca-Cola Company acquired a 40% stake in Chi
Ltd on January 30, 2016. The Coca-Cola Company acquired the remaining 60% stake in Chi
Ltd on January 30, 2019.During August 2018 The Coca-Cola Company acquired Moxie for an
undisclosed amount. On September 19, 2018 The Coca-Cola Company acquired Organic &
Raw Trading Co. Pvt Ltd the manufacturer of MOJO Kombucha in Willunga, Australia.
On August 14, 2018 The Coca-Cola Company announced a minority interest in Body Armor.
On October 5, 2018 The Coca-Cola Company acquired a 22.5% stake in MADE Group from
Luke Market, Matt Dennis and Brad Wilson the company's 3 founders. The Coca-Cola
Company owns a 30.8% stake in Coca-Cola Amatil ltd, therefore The Coca-Cola Company
owns a further 6.93% stake in MADE Group through its ownership stake in Coca-Cola Amatil
ltd.
REVENUE AND SALES
According to The Coca-Cola Company's 2005 annual report, the firm at that time sold
beverage products in more than 200 countries. The 2005 report further states that of the
more than 50 billion beverage servings of all types consumed worldwide, daily, beverages
bearing the trademarks owned by or licensed to Coca-Cola account for approximately
1.5 billion. Of these, beverages bearing the trademark "Coca-Cola" or "Coke" accounted for
approximately 78% of the company's total gallon sales.
In 2010, it was announced that Coca-Cola had become the first brand to top £1 billion in
annual UK grocery sales. In 2017, Coke sales were down 11% from a year earlier due to
consumer tastes shifting away from sugary drinks and health risks associated with artificial
sweeteners in diet drinks.

Price
Revenue Net income per
Year Employees
in mil. USD$ in mil. USD$ Share
in USD$

2000 17,354 2,177 17.11

2001 17,545 3,969 15.24

2002 19,394 3,050 15.82

2003 20,857 4,347 14.28

2004 21,742 4,847 15.34

2005 23,104 4,872 14.47

2006 24,088 5,080 15.26

2007 28,857 5,981 19.24 90,500

2008 31,944 5,807 19.71 92,400

2009 30,990 6,824 18.49 92,800

2010 35,119 11,787 22.12 139,600

2011 46,542 8,584 26.84 146,200

2012 48,017 9,019 30.70 150,900

2013 46,854 8,584 33.78 130,600

2014 45,998 7,098 35.82 129,200

2015 44,294 7,351 37.29 123,200

2016 41,863 6,527 40.63 100,300

2017 35,410 1,248 42.80 61,800

FAMOUS BRANDS AND PRODUCTS OF COCA-COLA
The following list presents notable Coca-Cola subsidiaries, brands and products:
1. Coca-Cola(coke)
2. Diet coke
3. Coca-Cola zero
4. Sprite
5. Fanta
6. Dasani
7. Ciel
8. Smart water
9. Minute maid
10. Simply orange
11. Delvalle
12. Powerade
13. Vitamin water
14. Odwalla
15. Fuze beverage
16. Honest tea
SWOT ANALYSIS:
STRENGTH WEAKNESS
 Strong advertising and marketing  Coca cola is implying all its research
capabilities and development on beverage
 Extensive and diversified product section and is not putting efforts on
portfolio snacks whereas it’s major
 Strong partnerships with bottling competitor while PepsiCo is earning
companies 42% from beverages and other
 Leading player in the global snacks.
beverages industry  Political lobbying often imposes
 Brand recognition and reputation pressure on the manufacturing
 Extensive distribution channels section so the company should
refrain itself from the political
scenario

OPPORTUNITIES THREATS
 Growing alcoholic beverage industry  Obesity concerns may reduce
 Expansion of ready-to-drink (RTD) demand for some of the company’s
coffee products in the U.S. market products
 Growing RTD tea market, with many  Water scarcity and its poor quality
smaller brands that can be easily could negatively impact The Coca-
acquired Cola Company’s production costs
and capacity
 Increased competition and their
capabilities could hurt the
company’s business
 Ansoff Matrix
Existing Product New Product
Market Penetration Product Development

• It refers to selling existing products • It refers to the ‘launch of new

to existing markets. products to existing markets.
• Coca-Cola pursues market • A good example of product
Existing Market

penetration as one of its growth development is the launch of Cherry

strategies. Coke in 1985
• It has been possible for the company • It is considered to be Coca-Cola’s
due to an incredible strength of first extension beyond its original
Coca-Cola’s brand name recipe
• Another example is the development
of Fanta Icy Lemon
Coca-Cola developed this new product to
sell to its existing markets to increase sales
Market Development Penetration
• It is the ‘process by which the firm • It occurs when a company decides to
seeks new markets for its current make new products for new markets
products’ • Coca-Cola has used diversification
• Coca-Cola started its journey in as one of its strategies on a number
USA. It now operates in almost of occasions
every country in the world • For example, it has added Chi Ltd, a
New Market

• This is an example of geographical Nigeria-based leading dairy and

market development. juice company, to its enormous
• Coca-Cola had a successful launch portfolio
of Vanilla Coke in USA • As markets in many parts of the
• The company then decided to launch world are heading less-sugary future,
it in the UK Coca-Cola is focusing on the
growing healthy drink sector
 Environmental Factors
Macro Factors
1. POLITICAL - Changes in regulations such as nutritional info on packaging could result
in a loss when trading overseas and sourcing materials.
2. ECONOMIC – Recession in UK 2010 had positive influence on Coca-Cola’s retail
sales. Sales had reached £1 billion for ‘My Coke’ (Coca-Cola, Diet Coke and Coca-
Cola Zero). This was the first ever time that the combined sales of the three Coke
brands have broken through the above barrier.
3. LEGAL - Changes in income or corporation tax; an increase in such taxes could
negatively affect the financial position of Coca-Cola.
4. ENVIRONMENTAL - Challenged to use more sustainable and environmental friendly
products for their packaging. Bottles/cans which are recycled has a positive effect on
environment.

Micro Factors

1. THE COMPANY - Strong work ethic by treating people well, help them develop and
give them a rewarding life. Coca-Cola also excel in performance, develop skills and
move towards their career goals. They were ranked No.26 in the Great Place to Work
Institute (Coca-Cola, 2010).
2. CUSTOMERS - Coca Cola focuses on “brand love”. Coca Cola believe that in the long-
term that customer loyalty will strengthen their position. They believe that they
would only have sustainable growth if they are able to build relationships with their
consumers, these relationships convert into sales.
3. SUPPLIERS - A ‘sound, stable and ethical supply’ are vital to continued success.
4. COMPETITION - Coca Cola and Pepsi are both competitive with their pricing. Pepsi
had 14% growth in net revenue in 2011 and has their brand distributed in over 200
countries. (PepsiCo, 2011).
 Factors affecting Consumer Behaviour

The following elaborates on the above diagram about the factors that affect the buying
behaviour of consumers:

The main marketing strategy that Coca Cola uses to influence its customer to buy its products
is the fact that it uses the experience and lifestyle associated with its brand. For
example, Coke recently unveiled a new packaging campaign where they individualized 2
million bottle designs.

I. Economic Needs
A. Economic needs: Coca Cola for long has been one of those drinks that has tried itself
to substitute water. This meant that it was priced accordingly too. It comes in various
variants ranging from Rs. 20 to Rs. 79. This makes it seem affordable by people of all
income segments.
B. Convenience: It is available in every convenience and grocery store around us. They
have made their product distribution in such a way that we see that product everywhere
we travel. This has lead to its success as it is conveniently made available for all its
customers.
C. Efficiency in use: It comes in an easy to use open bottle which can be reused too. Also
the bottle is easily potable and its sleek design in the middle adds to the grip of the
person carrying it.

II. Psychological Factors

A. Perception: The perception created by Coca Cola is that of a classy substitute of water
and something that the rich serve to their guests and thus shows status and hospitality.
Thus the perception created is like it is a drink that the rich drink when they need to
 energise or after a hot day. This has increased its purchase especially during summers
or festival times.
B. Attitude: The attitude of the customers is very positive towards coca cola brand and its
products in general due to its long and successful history. It has also been one of the
most innovative brands and has expanded its various other products too.
C. Trust: Coca Cola enjoys the trust of the customers given its long and successful history.
It has also positioned itself as a product of the rich or something that shoes class.
Through various CSR activities it has also created a positive perception in the minds
of the consumers leading to a positive attitude towards it due to the trust they have in
its products.

III. Social Influence

A. Family: By generally advertising the entire family in its advertisements, Coca Cola has
made itself so popular that people within families and at get togethers prefer to have
this drink and also recommend it to their friends and family. And as it is a drink for all
family members, it is widely accepted and encouraged among families.
B. Social Class: Just as mentioned above, by portraying itself as a drink for the elite and
the rich initially, it has symbolised higher class in the social environment of the
customer. This is what has influenced customers to purchase this product and now it
has become into a product for the masses and something that unites us as all of us
consume it.
C. Reference Groups: With family acting as one of the refence groups, it has positioned
as a product for everyone now whereas initially it was something that the rich used.
Also its peculiar taste adds to the influence of customers through such word of mouth.

IV. Purchase Situation

A. Purchase Reason: It was shown itself as a brand that opens when the entire family is
together as its tagline goes “Open Happiness.” Or it is something that shoes hospitality
as it is served to guests. It is also something that quenches the thirst of people after a
hot sunny day. These are the main reasons that have contributed to influencing
customers in buying this product as in Indian Families mainly all these 3 reasons are
important and are a daily affair in each household.
B. Time: The reasons that Coca Cola markets its products for are available at Indian
households almost everyday. And it has also successfully positioned itself in the minds
of the consumers in a way that any of such occasions are now incomplete without a
Coca Cola. This synonymity has played a major reason in the influencing of customers
to buy this product.
 1. SEGMENTATION:
The following are the variables considered by Coca Cola in its segmentation:

The major segmentation variables are geographic, demographic, psychographic, and

behavioral segmentation

A. Geographic segmentation
Geographic segmentation calls for dividing the market into different geographical units such
as regions, cities, or neighbourhood. Coca-Cola has a countrywide network of product
distribution but the company segments more in urban and suburban areas as compared to rural
areas. Globally, Coca Cola has segmented itself into the various countries and has tailor made
products according to the different needs of various countries.

B. Demographic segmentation
(i) Age and Life-Cycle Stage: The main sector in which Coca Cola Company targets is the
youth (12 years to 45 years) because there is a much need of refreshment and energizers to
cope up with their daily activities.

(ii) Gender: Gender is also an issue needed to be given prior by Coca-Cola. Men and women
tend to have different attitudinal and behavioural orientations, based partly on genetic makeup
and partly on socialization practices. Coca Cola targets both genders with its wide variety of
drinks.

C. Psychographic segmentation
In psychographic segmentation, Coca Cola buyers are divided into different groups on the basis
of lifestyle or personality or values. People within the same demographic group can exhibit
very different psychographic profiles, for that reason Coca Cola Company designed and made
product which are suitable for their personality.

(i) Lifestyle: People differ in attitudes, interest, activities, and these affect the goods and
services they consume. Coca-Cola Company presented products which are suitable for modern,
busy life style (shortage of time) and mobile generation.

(ii) Personality: Coca Cola Company is using personality variables to segment markets. They
award Coca-Cola products with a brand personality that corresponds to a target consumer
personality.

D. Behavioural segmentation
(i) Occasions: Coca Cola consumers can be distinguished according to the occasions when
they develop a need, purchase a product, or use a product. Occasions segmentation can help
firms expand product usage. Like on the gathering and uniting of people for any purpose like
festivals, get togethers etc.
(ii) Benefit sought: Sometimes, for the promotion strategy of Coke, Coca-Cola Company
introduces prizes in the top cover. Like to quench the thirst for something cold and tasty after
a workout or a sunny day.
 2. TARGETING:
The brand of Coca Cola follows mass marketing. Coca Cola doesn’t target a specific segment
but adapt its marketing strategy by developing new products.

Age: Coke does not have a specific target and is addressed to everyone. But the main
consumers are 12-30 years old people. So, the core target consumer of Coca Cola is youngster
or youth. Coca Cola considers each costumer as a target and a potential consumer. All age
groups are being targeted but the most potential is the age group from 18-25 that covers around
40% of total age segments.

Lifestyle: The mobile generation (youth) are considered to be the most important part of Cke’s
consumers.
Occupation: Coca Cola targets students and family oriented customers.

3. POSITIONING:
Coca Cola has strategically positioned itself within the world soft drink market. It goes with a
principle of “Glocal- Think global, act local”. Coca Cola is thus willing to keep the same core
product which is coke, but it adapts the offer to local needs.

They use strategic positioning in order to have the same image all around the world, which is
a success because it is perceived today as a part of daily life everywhere. This perception of
consumer leads to a high degree of loyalty and makes purchasing decision more automatic.
Coca Cola has been successful by using Unique Selling preposition as “Live the coke side of
the life”, related to joy and happiness.
Consumers basically associate this brand with these emotions, fun and entertainment.
The brand is positioned as a symbol of happiness which is greater when shared.

OPEN HAPPINESS CAMPAIGN

SHARE A COKE CAMPAIGN

PERCEPTION MAP OF COCA COLA

The brand as a product

Modern

Less Sugar Taste

Coke
Zero
More Sugar Taste

Diet Coke
Coke Classic

Traditional
Product
Coca Cola is a product offered to majorly all age groups, all customers satisfying the need for
a refreshing sweet aerated drink which brings happiness and good times and builds the feeling
of team spirit. It is empathetic, social and punchy and interacts with its customers through
variety of ways building a brand equity which is sought by all.
Coca Cola has taken advantage of its brand equity which it has built over the years and launched
several variations of its regular products in terms of flavors and ingredients. The brand
stretching and Line extension with not only the highest impact in sales but also the oldest
attempt of widening the brand’s portfolio has been diet or light products, that still today
continues to be updated with new versions thanks to the health concerns Coca Cola has
acquired and trying to respond to an ever increasing demand of consumers for healthier
products.

Type of Product:
Convenience Product: Coca Cola has established itself as a routine product with bottles
available for as low as Rs. 10 and requires low involvement, the reach of the product is wide,
you can find it in the depths of the villages, at any retail store, departmental store and shopping
malls or any luxurious restaurant.

Levels of a Product:
 Core Benefit: Basic refreshing drink to quench thirst– Original Coke
 Basic and Expected Product: Different Flavors like Cherry, Lime, Vanilla and
Different kinds like- Diet/Light, Zero in different packaging like Pet bottle, glass
bottles, Can, and Plastic Bottle with different sizes. Quality assurance by Global Food
Safety Initiative (GFSI) certification. Features Quality Design, Packaging and Brand
Name
 Augmented Product: Towards a greener approach, Coca Cola can take a step like
Return 3 Empty bottles and get 1 free Coca cola bottle from all stores. This way they’ll
be doing a greater good and will be recognised as one with a competitive edge.
 Potential Product: With the changing market dynamics to a co create product, Coca
Cola can engage itself with the customers just like Starbucks has where they call for
ideas from the community they have developed online.
Line Extensions:
WIDTH

Depth

 1886
Basic Coca-Cola was invented by Colonel John Pemberton, who has been injured in
the American civil war and developed an addiction to morphine. He decides to invent
a tonic to cure him of his habit and comes up with a coca wine - which uses coca leaves
(the basis of cocaine) and kola nuts (a source of caffeine) - to cure him.
Eventually, Coca-Cola becomes widely available, sold as a medicine at soda fountains
across the US, with Pemberton claiming it could cure ailments including impotence,
headaches and dyspepsia.
The brand’s first-ever ad runs the same year, while two years later Pemberton issues
(probably) the world’s first promotional coupon, offering people a free glass of the
drink.
The recipe has since changed - while caffeine remains a key ingredient, the coca was
removed from the recipe in 1903.

 1982
Coca-Cola created its first brand extension after nearly a century of existence.
Diet Coke was born - a sugar-free version of its flagship product. Diet Coke’s
advertising uses slogans that include its most famous, "Just for the taste of it!", with
TV ads featuring the "Diet Coke hunk". 2001.Coca-Cola Lemon becomes available in
various markets, including the UK, until 2005.
  2002
Coca-Cola Vanilla is launched in the US and UK, among other markets, before being
discontinued in 2005. However, it is brought back by popular demand in 2007, and
renamed Vanilla Coke.
 2005
Coke Zero - a no-calorie variation of Coca-Cola - goes on sale. The branding and
description is deliberately pitched at men, after research shows they are put off by
products bearing the word "diet".
Variants of Coke Zero include vanilla and caffeine-free versions.
In 2014 the brand is relaunched in the UK and Ireland with a campaign called "Just
Add Zero".
 2007
Diet Coke Plus is unleashed on the public - a Diet Coke formulation laden with vitamins
and minerals. It is launched in the UK in October in two variants - one containing
vitamins B and C, and the other, antioxidants with green tea extracts and vitamin C.
However, it fails to catch on and is discontinued.
Meanwhile, Coca-Cola Orange goes on sale in the UK and Gibraltar for a limited time. Since
2009, it has been available in the US at Coca-Cola Freestyle fountain outlets.

 2013
Coca-Cola Life is launched in Chile and Argentina, as a trial ahead of a wider global
roll-out.

 2014
Coca-Cola announces that Coca Cola Life will be the first new cola drink from the firm
to be rolled out for eight years. It is a low-calorie cola, sweetened with a blend of sugar
and stevia, which contains a third less sugar and a third fewer calories than red Coke.
Packaged in a green-coloured cans and bottles, UK consumers will be able to buy Coca-
Cola Life from September.
Eight years ago, Coca-Cola debuted "Zero", a zero sugar extension. The purpose was
not only to improve the taste of ageing Coca-Cola Light, but also to target males with
TV commercials and sponsoring featuring NASCAR racing, basketball and football
stars, not to mention alpha male James Bond. Why? Because men don't drink Coke
Light. Coke Zero for weight-conscious men, Coke Light for weight-conscious
women, and standard Coke for everyone else. But "everyone else" is still a too broad
segment, so here comes Coca-Cola Life.
Product Hierarchy:

Point of Parity / Point of Differentiation:

Coca Cola has strategically positioned itself within the world soft drink market. It faces a
vital question: does it have to keep the same positioning or to adapt according to the 200
countries where the brand sells its products. The brand has understood this principle while
ago: “think global, act local”. Coca is thus willing to keep the same core product which is
coke, but it adapts the offer to local needs. They use strategic positioning in order to have the
same image all around the world, which is a success because it is perceived today as a part of
daily life everywhere. This perception of the brand by the consumer leads to a high degree of
loyalty and makes the purchasing decision more automatic. Coca Cola has been successful by
using Unique Selling preposition as “Live the coke side of life”, related to joy and happiness.
Consumers basically associate this brand with these emotions. When the name of Coke is
mentioned, the first thing that comes into mind is fun and entertainment.
Points of Parity:
 Pepsi is similar to Coke in that the company owns other beverage companies.
 Pepsi is universally known to be Coca-Cola’s number one competitor.
 Their overall image is modern and appealing.
Points of Difference:
 Coca Cola emphasizes the originality of their product to maintain the very important
repeat buyers.
  Coca Cola has many loyal customers that will support the company their entire lives.
 Pepsi is not in a situation like this. They are using high-tech promotion tactics to
obtain customers but it does not have as near as many devoted buyers.
 Pepsi attempts to make Coca-Cola look like an old and stale company while
promoting themselves as the Cola of today.
 The point of difference is the image that they reflect: Pepsi is trendier and cooler with
an image of young people and celebrities while coca cola is an emotional brand. This
is due to the advertising campaigns they both spread.
Another significant difference is the amount of income that the two companies make. Coca
Cola is currently a much more profitable company than Pepsi is. At the end of 2004, Pepsi
had an annual income of $457 million compared to over $4 billion made by Coca Cola.
Since this is true, Coca Cola has a lot more resources that they can use for promotion.
Coke positions itself as the first and original Cola that was created by Dr Pemberton. Coca
Cola would often advertise their product in a vintage traditional manner that would have the
idea of preserving the “Originality” of Coca Cola.
In terms of taste, Pepsi tastes sweeter than Coke. Coke has a unique raising-vanilla taste,
whereas Pepsi is characterized by a citrusy flavour burst. Turning into nutritional content,
Coke has lesser sugar and caffeine as compared to Pepsi of course. Basically, not much
people could tell the differences among these 2 products, according to a study/research Read
Montague and Samuel McClure, “Coca Cola and Pepsi are special in their own ways but they
tend to have similar chemical composition.
The final point of difference for Pepsi is that they put decent promotion efforts into all of
their products whereas Coca Cola focuses on a few popular brands. Since Pepsi only has
about 22 different drinks, they have the ability to do effective advertising for everything.
Since Coca Cola has over 400 products, they have decided to only emphasize a few of them.
Coca Cola – Product Differentiation
• Symbol of Joy and Fun
• Product Line
• Culturally Tailored Products
• Water Purity Standard
• Organic Soda and Beverage line
• Snack Food Line
• Customize Vending Machine
Stage in the Product Life Cycle:

Coca-Cola is definitely making revenue

Coca-Cola is making a fair profit and has been for a while. Lastly, we’ll take a look at Market
Share to see if Coca-Cola is an established player.
According to Investopedia Coca-Cola and Pepsi share about 60% of the global market of
non-alcoholic beverages. So, Coca-Cola is an established company, and it’s making money
and has a large share of the market. So, it no in the Introduction stage.

Maturity
According to Business Dictionary it is the Longest period in the life cycle of a firm, industry,
or product, during which sales peak and start to decline. According to the World of Coca
Cola, Coca-Cola began in 1886. From here Coca-Cola innovated and grew. They ran
countless marketing campaigns. The 1980s featured such memorable slogans as “Coke is It!”,
“Catch the Wave” and “Can’t Beat the Feeling”. Furthermore, they innovated. In 1993,
Coca-Cola experimented with computer animation, and the popular “Always Coca-Cola”
campaign was launched in a series of ads featuring animated polar bears. Each animated ad in
the “Always Coca-Cola” series took 12 weeks to produce from beginning to end. According
to the American Marketing Association from 2006 to 2015 Coca Cola’s brand value
has doubled. So, it’s clear they’re here to stay. The Longest period in the life cycle of a
firm, during which sales peak and start to decline. Let’s take a look at that previous graph
from Statista on the Revenue of Coca-Cola, as well as the table from Nasdaq.
Starting in 2012, the Net Operating Revenue of Coca-Cola has seemingly gone into decline.
We see the same trend if we take a look at the Nasdaq table, except with profit. This brings us
to our conclusion, that Coca-Cola falls into the maturity stage of its life cycle. Coca-Cola has
existed for a long time, and has innovated and grown for a long time as well. However,
possibly due to new competition and indicated by its current decline in gross profit it falls
into the maturity stage.

 Currently Coca-Cola is under the maturity stage due to the solidity and capability of
keeping a large and loyal group of stable customers
 The company is traveling longer period of time in the maturity stage then all other
stages, when it is introduced in western countries
 Coca-Cola still in the growth stage of Asian Countries
ANALYSIS
• Coca-Cola is facing major challenges as revenue drop
• The drop is due to change in consumers’ taste to less sugary drinks and healthy brands
• There has been rise in number of customers who are more concerned about the effect of
products on their health
• There has been increasing competition and also concerns about the water scarcity effect

SUGGESTIONS
• Coca-Cola can capitalize on the change in consumer preference, by expanding its
products portfolio to natural and organic beverages.
• This would be a new source of income for the company.
• Coca-Cola can gain more revenue by investing and expanding offerings to organic teas,
juices, coconut water, and dairy products.
• Reducing sugar in its drinks and offering products in smaller packaged sizes can
transform products.
• Coca-Cola can invest in finding a natural way to source, safe, low- or no-calorie sugar
alternatives
• Coca-Cola can drive revenue by pursuing new innovative ways to meet consumers’
evolving tastes and lifestyles (including more low- and no-sugar options and drinks in
emerging categories)