An Analysis of Coca Cola Company

AnAnalysis of Coca Cola Company

AnAnalysis of Coca-Cola Company

Sinceits conception, Coca-Cola Company had recorded profound growth anddevelopment in beverage industry. Being a decentralizedmultinational, the enterprise has opted for strategic management ofits regional as well as global distribution system. Hills &amp Jones(2012) held that strategies that a company’s managers pursueusually have very distinct and large effects on the performance ofthe company as compared to that of their competitors in the market.

Inspiredby its mission, it has also developed an excellent global beveragedistribution channel in which it sells its product to bottlecompanies in over 200 countries worldwide.

Thesheer success of this multi-corporation can be attributed to itsstrategic management that champions for strategic product developmentcoupled by strategic marketing of its products that incorporatediverse consumer preferences in different market niches. Theconcept marketing refers to very unique culture and operations of anorganization, significant set of beliefs and values that apply acrossthe organization. These set of beliefs often ensure that the customeris at epicenter of the thinking, as well as, the operations andvarious strategies of the business (Deshpande &amp Webster 1989).

First,it concentrates significant efforts to product marketing. Forinstance, in order to attract and maintain a larger client base, ithas embraced relationship marketing. Dead &amp Live (1998) confirmedthat relationshipmarketing is not just a “fad of the month”. Rather, its effectscut across the entire enterprise and all its stakeholders. It enablesa particular firm to link and align various groups and initiativeswithin the company (technology, people, business processes, andcustomer knowledge) in order to create stronger bonds with thecustomers and consequently create new value within them. In theirworks, Dead &amp Live confirms that relationship marketing ensuresthat a company is able to increase in their level of productivityhence general profits for each customer through a focus on thecustomers or individuals who receive, as well as, return the bestvalue. Relationship marketing gives management more “bang for themarketing buck” by focusing on the ultimate market segment (theindividual customer) effectively and efficiently (Dead &amp Live1998).

Additionally,Coca Cola has capitalized on branding through its trademark. Thetrademark’s global recognition plays a critical role in themarketing of its products. Quelch &amp Hoff (1993) noted that theCoca-Cola’s brand name, concentrate formula, positioning, andadvertising themes are virtually standard across the world however,the artificial sweetener and packaging differ across countries.

Also,Farquhar (1989) argued that branding serves the purpose ofstrengthening the association of a brand with the product. Therefore,companies make effort to both make their product(s) easier for theirconsumer to recall, as well as to distinguish their product fromothers in the market. For example, Marriot estimated that adding itsname to Fairfield Inn raised its rate of occupancy by 15 percent. Hefurther suggests that positive brand evaluation, an accessible brandattitude, and a consistent image are the basic elements for creatinga strong brand.

Throughproduct diversification, the company has successfully penetrateddifferent segments of its market. Its marketing plan is focused on animmense desire to develop products capable of meeting the differentsocio-cultural interests of all their clients and consumers aroundthe world. In an effort to achieve this, it pays all the necessaryattention to eachconsumer`s unique values, beliefs and cultures, as well asconsumption preferences. Typically,international environment is more diverse than the domesticenvironment, because the differences among countries in per capitaincome, language, culture, consumer preferences, and the regulationof businesses are much larger than the differences in theseattributes within a country. The ultimate leaders in the globalindustries are often first movers the first firms to perceive thepossibilities for a global strategy (Quelch &amp Hoff 1993).

Besidesproduct diversification, the firm has largely invested its efforts inproduct variation and adaptation. For instance, the introduction auniqueformulation for Sprite helped the company vary and adapt to itsclients in Japan. Furthermore, it effected the Coca-Cola Zero aneffort to satisfy the 21stcentury health conscious consumer.

Therefore,through its consistent and strategic global management and marketing,Coca Cola Company has become an award-winning organization in thebeverage industry globally.

Nonetheless,there are myriad of things the company might consider to include ontoits marketing plan to maintain its competitive advantage.

Forinstance, it might consider encouraging the transfer of ideas betweenit and its country managers. Quelch &amp Hoff (1993) argued thatsince good ideas are a company’s scarcest resource, headquartersefforts to encourage and reward their creation, dissemination, andapplication in the field will build both relationships and profits.

Also,might allow their country managers to introduce new products. Asglobal marketing grows, so does the need for rapid worldwideintroduction of new products into the market. The decentralizedmultinational permits it to proceed at their speed upon theintroduction of new products maybe at a competitive disadvantage inthis new environmental setup (Quelch &amp Hoff 1993).

Finally,Hills &amp Jones (2012) recommend price, product design, advertisingand promotional spending, direct-selling efforts, and after saleservices and support, strategies which Coca-Cola can embrace toengage and maintain the competitive struggle.


Dead,M., &amp Live, L. (1998). Relationship marketing: new strategies,techniques and technologies to win the customers you want and keepthem forever.Canada: JohnWiley &amp Sons

Deshpande,R., &amp Webster Jr, F. E. (1989). Organizational culture andmarketing: defining the research agenda. TheJournal of Marketing,3-15.

Farquhar,P. H. (1989). Managing brand equity. Marketingresearch,1(3),24-33.

Hill,C., Jones, G., &amp Schilling, M. (2014). StrategicManagement: Theory: An Integrated Approach.Cengage Learning.

Quelch,J. A., &amp Hoff, E. J. (1993). 10 Customizing Global Marketing.Readingsin International Business: A Decision Approach,267.