Analysing the worldwide success of Coca Cola


Coca-Cola is a carbonated soft drink sold in stores, restaurants and vending machines internationally. The coca-cola company head office is situated in Atlanta, Georgia and is often recognised as coke. It was invented by Dr John S Pemberton. Coca-cola enterprise is the world's largest marketer, producer, and distributor of coca-cola products. The company claims that the drink is sold in more than two hundred countries. Coca-cola company has got around seventy two thousand employs in Atlanta.

The company was formed in 1886 and it has produced different flavours and brands which are very popular across the world. The company and its subsidiaries employ nearly thirty one thousand people around the world. The coca-cola company manufactures syrups, concentrates and beverage bases for coca-cola. Thousands of consumers visit fast food restaurants every day and coke feels that it is very important to serve its drink in these outlets such as McDonalds, KFC, Burger king, Dominos Pizza etc.

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The company primarily produces bottles and distributes the coca-cola trademark beverages such as coke, fanta, sprite, Dr Pepper and several other beverage brands. Coca-cola enterprises also consists of regular and zero calorie beverage catagories including energy drinks, still and sparkling waters, juices, sports drinks, milk based products, fruit drinks, coffee based beverages and teas.

Coca-cola enterprises run its business mainly with the agreements of coca-cola company. The company achieved exclusive rights with these agreements to market, produce and distribute beverage products of the coca-cola company in authorized containers in specified territories. Various other useful transactions and agreements with the coca-cola company include arrangements for cooperative marketing, advertising expenditures, purchase of sweeteners and acquisitions of bottling territories from time to time. The company has perpetual bottling rights within the US for products with the name coca-cola.

In North America, coca-cola enterprises deliver most of its product directly to retailers for sale to the ultimate consumers. In Europe, the company's product is principally distributed to its customer's central warehouses and through wholesalers who deliver to retailers.

Environments and impacts of the coca-cola company

As coca-cola operates in more than two hundred countries, the coke is in a position to contribute to the economic vitality of even the most remote communities around the world. During 2006-2008 the major areas of impact were the following sectors in billions. Income taxes were high in the year 2007 with 1.9billion when compared with years 2006 and 2008. It was 1.5billion in 2006 and 1.6billion in 2008.

Goods were purchased more in the year 2008 with 11.4billion. It was 8.2billion in 2006 and 10.4billion in 2007.

Local capital expenditures were high during 2008 with 2billion, however it was 1.6 in 2007 and 1.4billion in 2006 respectively.

With aspects of shareowner dividends it is 2.9billion in the year 2006, 3.1 in 2007 and maximum in 2008 with 3.5billion.

With regards to global salaries and benefits, it was maximum in the year 2008 with 4.3billion, 4.2 in 2007 and just 3.4billion in 2006.

The total indirect economic impacts of the coca-cola system are significantly greater than the figures present in 2008/2009 sustainability. The coca-cola system has more than nine hundred plants around the world with the usage of desirable ingredients and raw materials. It also accommodates employs with different communities and cultures, in addition bottling partners employ hundreds of people around the world and are committed to supporting community investment programs. The global business of coca-cola stimulates job creation through out the value cycle. The company contribute to the economic success of each community by employing local people, paying taxes to the government, paying suppliers for goods, services and capital equipment and supporting community investment programs.

Past independent studies on the economic impact of coca-cola business in Asia, Africa and Eastern Europe have consistently shown that for every job in the coca-cola system, an average of ten more jobs are supported in local communities.


Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchange and satisfy individual and organisational objectives (AMA, 1985).

With its marketing strategy coca-cola secured more than 20million customers around the world. Beverages are sold to the consumers through retailers, convenience stores, theatres, kiosks and vendors. Marketing includes four p's and seven p's which is called as marketing mix. Marketing mix is probably the most crucial stage of marketing planning process.

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Product- Products are the finished items that are marketed to the consumers. In marketing means product refers to services such as holidays or movie, where customer can enjoy the benefits without owing the result of the service. Consumers prefer coca-cola because of its high standards and high quality techniques. Coca-cola provides helpline and phone services to the consumers who are not satisfied with product and wishes to give feedback on it.

Price- Price is the important part of the marketing mix as it can effect both the supply and demand for coca-cola. Price plays a vital role in the customer's decision to buy the product. Price strategies are important to coca-cola, because the price determines the amount of sales and profit per unit sold. Businesses have to set a price that is attractive to their customers and provides the business with good levels of profit. Pricing methods include cost based pricing, market based pricing and competition based pricing.

Place- The place refers to the distribution of the product, the steps involved in taking the product to the market. The main step in this process is the respective distribution channels that coca-cola has elected to transport and sell its product. It is apparent from the popularity of coca-cola that the business in the past used the method of intensive distribution as the product is available at every possible outlet.

Promotion- Promotion is the p of the marketing mix designed to inform the marketplace about who you are, how good the product is and where they can buy it. Promotion is also used to convince the customers to try a new product through personal selling; advertising etc. coca-cola has used media as the main form of promotion for extensive range of products.

Remaining 3Ps

People- Appropriate staff and people are very essential for any service provision.

Selecting the suitable people for the jobs and training them effectively in the delivery of their service, so that the organisation can obtain a form of competitive advantage. Consumers make judgements and deliver perceptions of the service based on the employees they interact with.

Process- It is linked with the systems, used to assist the organisation in delivering the service. Process that allows obtaining an efficient service delivery. For ex- Banks that send out credit cards automatically when their customer's old card expires, it needs an efficient process to identify expiry dates and renewal. Thereby it ensures consumer loyalty and confidence in the company.

Physical evidence- Physical evidence is the element of the service mix which allows the consumer again to make judgements on the organisation. Physical evidence is concerned like when we walk into a restaurant we expect clean and friendly environment.

Competitors of Coca-cola:

The major competitors of Coca-Cola are


Asahi Breweries,Ltd.

Cadbury Schweppes plc,

General Mills,Inc.

Nestle S.A.

Unilever and the other

Although coca-cola is very famous for its brand perspectives in the market

environment, it has got number of competitors. One of the global competitors of

coca-cola is the pepsi; it outsells coca-cola in some markets. Pepsi is usually

second to coke in sales. French brand Mecca cola and British brand Qibla cola,

popular in the Middle East, are competitors to coca-cola. In Peru, Inca cola outsells coca-cola, which led the coca-cola company to purchase the brand in 1999. In India coca-cola ranked third behind pepsi and local drink Thumsup. The coca-cola company purchased Thumsup in 1993. In Slovenia, the locally produced cockta is a major competitor to coca-cola. In Israel RC cola is an inexpensive competitor. Classiko cola, made by Tiko group, the largest manufacturing company in Madagascar, is a serious competitor to coca-cola in many regions.

Partners of coca-cola

Coca-cola Company is linked with 300 bottling partners globally, together which is called the coca-cola system. Coca-cola companies business is concerned with creating and marketing the brands and trademarks, while coca-cola bottling companies produce and package the finished beverage products to sell and distribute them to retail and wholesale customers. Management of coca-cola bottling partners are separate from those of the coca-cola company.


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Coca-cola enterprises are one of the largest marketer, distributor, and producer of bottle and can liquid non-alcoholic refreshment.


Strong brand image increases customer base.

Robust distribution and production facilities.

Inorganic growth through acquisition.

Owning Odwalla, natural juice company.


-Customer concentration could impact the bargaining power of the company.

-Most products of the coca-cola are seasonal.

- Sluggish performance in North America.

-Decline in cash from operating activities.


-Growing bottled water market.

-Operational initiative for cost saving.

-By increasing health consciousness, the company would increase demand for its low calorie


- Growing Hispanic population in US.


-Sluggish growth of carbonated beverages.

-Intense competition.

-Volatile economy could impact sales of the company's products.

-Stringent regulations and legislations.