A Study Of Coca Cola And Its Strategy Of Progress Business Essay



Coca Cola is the dominant leader in the world of soft- drink and beverage products. It is one product which has successfully been able to set a trademark name for itself called 'Coke'. Today it has such a big name in the market that a number of studies have been made on it and are still continuing. This paper is an attempt to study, research and analyze the marketing and advertising strategy of the Coca Cola company along with studying its strengths, weaknesses, opportunities and threats (SWOT). The use of new technologies, forecasting, advertising, and political environments will all be included while determining what affects the marketing strategies that the company chooses to adopt.

A brief introduction and history of the company will provide a basis for understanding how the company works and what has brought them to the level of where they stand today. The company structure will also be briefly explained to understand in which fashion the management works to further the company's progress.


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Coca-Cola is the biggest competitor in the soft drink industry. It is the choice of millions in this world, especially for the non-alcoholic drinkers. It is popular amongst not only children but also ages surpassing everybody's imagination. It has however been able to imprint such a strong liking amongst its clients because of its unique strategy and planning.


The Coca Cola is a global leader in the business of non alcoholic drinks. It is very famous drink Coca Cola , which is flavored syrup that is been combined with water and carbon dioxide gas. This combination gives it a unique taste. Any one does not know the secret formula for Coca Cola and it has a patent for it. Its global reach is in more than 200 countries and it has acquired rights for several other soft drinks, snacks, fruit drinks, energy drinks, etc…Like these nearly 470 brands are been owned by Coca Cola. The other drinks are Fanta, diet Coca-Cola, Slice and soda water .It is even focusing now on fruit juice markets.

Coca Cola aims to provide great service to the people. It works to retain its number on e position and its main strategy is innovation. It always works in creating new products and keeps on experimenting with newly invented products. It is another strategy for success is to go to several markets rather than sitting in a same place. It is now concentrating more on India, China, Mexican and South African markets where it is earning more amounts.


Choices made by Coca Cola and in what ways it made a difference:

Strategy is nothing but planning efficiently at the right time what to do and when to do. Strategy focuses on choosing the right choice to optimize performance and reach success.

Any organization should have both long term and short-term goals. They should work on reaching the goals and first should study and plan how to reach their goals. Plan how to achieve? Here we will have several choices in both what to achieve and how to achieve.

These choices drive the entire game.

The following are some of the choices and strategies adopted by Coke:

Not staying inside the same box :

The main strategy of Coca Cola is to go global. We can see that it is never dependent on a single market. Therefore, because of this even if one market does not perform well Coca Cola will gain more money on some other market. Coca Cola is more flexible, adapts to the laws, and needs of any country that it enters. Its highly disciplined work culture and very highly skilled employees help Coca Cola to stay over the top.

Coca Cola never gives up:

Initially Coca Cola faced several problems, as it was not allowed to enter country like India because it was an American company.

Then Coca Cola did not give back. It tried so much and entered the Indian market and now it is a big competitor to Pepsi, which entered in Indian market few years before Coca Cola entered.

Adapting to the local market they enter:

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Coca Cola adapts to the market they enter as if they make some changes to their product to suit the tastes of the local crowd. They launch new drinks in every place. They have launched nearly 40 drinks in Asian market. They always give respect to the taste and culture of the local crowd.

Coca Cola always enters first:

Coca Cola always enters any given market first may it be china or Honk Kong, except, few exceptional cases where Pepsi entered had first. Since china is the biggest market after US, Coca Cola predicted that there will be further developments there and its planning is the best of all.

Raw material available in china:

One of the main raw material sugar is abundantly available in China at a very low cost is a main advantage for Coca Cola. An average Chinese drinks only 15 - 16 bottles of drinks a year compared to American who drinks over 600 bottles per year. However, these figures might be very low Coca Cola always thought about the population of China that is very high as compared to America and they predicted this will emerge as a much bigger market than USA and their forecast had not failed. Profit volume increased in China by 29% and then came India by 20%. China became the highest contributor for the net profit.

Partnership with existing firms and more job opportunities for the locals :

It is a good choice because the risk involved to get in to a market is very less and more good to win hearts and support of the locals and the government. Coca Cola also provides work to the people in China. It efficiently uses the local companies for bottling and makes partnership firms. Thus, by involving the local firms, it gets the good will of people and the local existing business people know more about the market and can tackle any issues with government and laws compared to Coca Cola CEO's sitting in US.



Has been a giant in the beverages market for more than a century… It has traveled three centuries since 1886

Highly respected by the people

People in US prefer to drink Coca Cola as a substitute of water

Company is financially very strong

Located round the world- A true global company

High quality products like coca Cola, fanta, sprite, etc…

Adopts to taste of people. Introduces drinks with new tastes in the place that it enters according to the tastes of people.

Diet Coca Cola is specially for diabetic people.

Adopts a very good selling strategy. Its advertisements and brand ambassadors reach people directly. Recent add called " Thanda matlab coca Cola" - meaning that any thing cold think only Coca Cola has, received high reception from people.

Has performed very well even during recession because people are never cutting Coca Cola … Its very cheap and they have it whenever they have food like substitute for water.

It is a market leader and has no threat of new entrants


Invest more in Asian, African, European and Mexican markets which yield more profits than USA or UK

China contributed to 20% of overall net profit

Investing more on innovation to invent new drinks with different tastes.

Have been captured China, Hong-Kong and Mexican market.


Same standards are not maintained everywhere around the world like UK and US because of its unable to control business everywhere and the people who have got license are not maintaining the international standards.

There is no cooperation with in the different levels of organization. Like several killing in Columbia and Guatemala for the gaining the bottling plant power.

Business has reached saturation and a stable growth

Often gets involved in frauds and has to make many compromises with government to come from it. Involves in lot of bribes and frauds.


Drinking more Coca Cola is harmful to health

Causes osteoporosis in women

Caffeine is an addictive substance that is use in Coca Cola.

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Made from fructose and corn syrup, which causes obesity and it contains poisonous mercury.

In India and several places, it was been found that Coca Cola and Fanta contains toxic substance that causes cancer. They didn't have the same standards maintained in the western countries

Heavy competition from Pepsi.

Coca Cola takes all the water resources. It also pollutes them. For manufacturing one liter of Coca Cola they use nearly 10 liter of water.

Banned in France and Belgium because it was not prepared properly and caused vomiting and nausea when people drinking it.

Slowly it has started to loose the reputation


Thus, it is evident that only through efficient decisions, a company can stand in a market and it all depends on the decisions made by it. Coca Cola always takes correct decision like entering first in to Asian, Mexican and African markets. It maintains its standards. Several points were discussing like its choice of different tastes, marketing strategies, Choice of countries, adapting to different cultures, etc… The SWOT analysis done on Coca Cola also shows that it has many threats and it should follow ethics in protecting the environment. It is true that it is not environmentally responsible. More over the same standards of Coca Cola was not been maintained in developing countries like India where people faced more health problems like cancer. In future at least it should be aware that it is playing with human lives and still be more ethical and conscious, as now there are many allegations among the people about the Coca Cola.