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As we all know, The Coca-Cola Company is a well-known international company. To achieve that huge success, there must be some systematic management and appropriate financial management. We will compare them with its major competitors, Pepsi Company. The primary financial objectives are to
The Coca-Cola Company is the world's largest beverage company, largest manufacturer, distributor and marketer of non-alcoholic beverage in the world and is one of the largest corporations in the United States. The company is best known for its representative product Coca-Cola, invented by pharmacist John Stith Pemberton in 1886. The Coca-Cola formula and brand was bought in 1889 by Asa Candle who incorporated The Coca-Cola Company in 1892. Besides its namesake Coca-Cola beverage, Coca-Cola currently offers nearly 400 brands in over 200 countries or territories and serves 1.6 billion servings each day. The Coca-Cola Company brands include: Coca-Cola, Coke Zero, Fanta. 
They also set the target market to the group of young people because they think that their product(coke) can reflect the youth and energy for them.
Their basic segments are those people who take this drink frequently. The coke is very famous and popularÂ around the world so many people take this drink daily. They would like to choose the higher demand of this drink as a first priority consideration.
The Coca Cola Company faces intense competition in different markets from regional to global. The major competitor is the PepsiCo. The other considerable competitor includes the Nestle and Spite. Also, instance competition would affect the market share and the growth rate of revenue.
The brand reputation is one of the internal strength of Coca Cola. Coca Cola is known very well worldwide. Coca Cola has the image that many people have taken deeply to heart. Moreover, the one of its superior strengths that the popularity is virtuallyÂ incomparable in the soft drink industry. It helps the company create the brand attitude for the customer. This is the reason that the sales amount of Coca Cola is the highest in the industry and there is still room to grow.
The financial situation also is one of the Coca Cola's strengths. Coca Cola is the highest profit in the industry over many years. Therefore, they can put more recourse for their improvement and development. For example, Coca Cola can use a large amount in their promotion and R&D.
Lastly, the loyalty customer is an important factor for Coca Cola. 80% of the Coca Cola's profit is come from their loyalty customer. It seems that some people would drink coke religiously like people drink water. They will continually purchase these products, and will probably do so for a very long time. It means that the profit of Coca Cola at least can maintain in certain level,
The Coca Cola has many sub-brands under their product line. Most of them are not very popular. Therefore, Coca Cola need to put a large amount of recourse in the marketing for these products. Some of them may also cause the loss for the company. If Coca Cola cannot manage their sub-brands, it may the performance of the company and the growth for the future.
The health issue is also the main concern of the company. The popular product of Coca Cola like coke is not very beneficial to our body and our health. Nowadays, people are more concern their health. Therefore, some products could possibly loose customers.
Coca Cola has the large income each year. This is very beneficial to the company when they sell these minor products. They can put more recourse in the promotion and R&D. The awareness of the new product and less popular product can be increase due to the promotion effort. Also, they can develop various products to meet the different market. It helps the company to maintain a large of market shares in the industry.
Another opportunity is that the Coca Cola can buy out their competition. When Coca Cola see a brand in that may be the potential competitor in the future, they can spend their large amount of money to buy out. Coca Cola has bought out a countless number of drink brands. This is the easy way to turn their profit into your profit. As a result, Coca Cola may have the opportunity to earn more profit in the future. Also, the company need not worry about this product being part of the competition.
The main threat of Coca Cola is their main competitor - Pepsi. Recently, Pepsi has performs very well in their sales especially in the Asian countries. The growth rate of sale is also higher than Coca Cola. Also, the potential growth of Pepsi has more room compare with Coca Cola. Therefore, investors a more prefer to put their money in the Pepsi. As a result, Pepsi may have the same resource to fight with Coca Cola. Therefore, Coca Cola is facing the impact in the market shares from a powerful competitor
Product life cycle
According to the past data shown by Coca -Cola report, it is in the maturity stage due to the profitability is slowing down. And they keep a large loyalty group of stable customers around the world.
The marketing mix is to combine the price, product, promotion and place for constituting the core of business strategy. Coca-cola Company must be designed to satisfy the needs and wants of customer or market and accomplish the ultimate objectives. In order to become a successful business, they must also improve, monitor and change their marketing mix to suit for the right time, right place.
Coca Cola Company must consider their product on three different levels. Firstly, the core product is what the consumer is buying a wide range of soft drinks.
Secondly, the actual product is that Consumers will buy the coke product because of their high quality certification of the Coca Cola products. Lastly, the augmented product is limited to provide the extra service in soft drink. They just only establish a customer service center to deal with the customer who are not satisfy the product or want to give feedback on their service.
According their past report, Coca Cola Company always offers more free samples to the retailers for penetrate into market. Hence, they have a good sale due to their expert analysis. Furthermore, they have different price in different seasons. For example, in summer, it supposed to be a good time to sell more at that time, so the prices up. On the contrary, in winter, the prices will go down to keep their sale/profit.
Coca Cola Company always holds many different form of promotion around the world such as display their product in a big shelve in famous shopping mall and put near the entrance to get the eye catching positioning, sales promotion as sponsorships, direct and indirect selling, different advertisement (TV commercials, billboards and so on). In the long run, they want to build up and keep a good image/impression to customer.
Coca Cola Company must consider the cost and sales level depend on different area. But in Hong Kong, they no need to worry about the cost of the delivery because Hong Kong is an intensive place. That is why we can the Coca Cola product in every supermarket even in the local stores.
Recommendations for improvement
Although Coca-Cola Company has higher profit than Pepsi Company, according to the ratio analyses, we can find that most of the performance of Coca-Cola Company is worse than the performance of Pepsi Company. For instance, Coca-Cola Company did well in the aspect of profitability but did badly in the financial leverage ratio and the asset management. This means that Coca-Cola Company got some problems in managing its finance and management. It is better for the company to not only focus on achieving the profit but also the liability and equity of the company. So it will have more balanced performance for the overall of the company.
Using SWOT to analysis Coca-Cola's performance, we can see its well performance on brand reputation, financial situation and keeping consumer loyalty, which are all its strength. As the first-mover of Cola Industry, Coca-Cola's image is already deeply in consumers' heart; its reputation in the industry is incomparable. Also, it is having the highest profit in the industry, which allows it to further develop and improve the company. Moreover, it is good at keeping customer loyalty as 80% of Coca-Cola's profit is come from the loyal customers.
So, to keep its strength, we recommend Coca-cola to maintain its image keeping in consumers' mind, like red bottle is its sign, when consumers want to buy a bottle of coca-cola, they will search for red bottle. If the color of coca-cola change, consumers' familiarity to the brand will be disappear. Also, Coca-cola should keep its strength by maintaining its relationship with consumer, because keeping old consumers is always easier and less costly than finding new consumers.
However, Coca-cola still has its weakness. Its sub-brands are not as successful as its main product, Coca-cola. If it cannot manage them well, the weak performance of sub-brands may affect the overall performance of the company in the long-term. Also, health issue is also the weaker part of the company, consumers who put more concern on health may resist drinking Coca-cola because of this issue.
To tackle the health problem, Coca-cola had developed Coke-light and Coke-zero, however, some consumers are not satisfied with the taste of these two product, also, some consumers still doubted about the ingredient of these two product, they worry that some other unhealthy ingredients had been added to replace the taste of sugar. So, Coca-cola should make more effort to convince the consumer, otherwise, the health issue will still be a weakness point of the company.
Actually, Coca-cola is having many opportunities thanks to its large income. It can use the money on its promotion and R&D. Also, it can reduce the threat from competitors and increase market share by buying out its competitors. But still, it is facing threats from its most powerful competitor, Pepsi. Pepsi had performed very well in their sales especially in the Asian countries, also, having a higher growth rate than Coca-cola.
To conclude, in order to achieve better brand image, Coca-Cola Company should keep emphasizing on the sustainability, and considering the interests of the business, society and the environment, both in short term and in long term. Besides, those 11 guidelines of corporate governance should be adopted for members of the Coca-Cola Company to achieve huge success. As we mentioned before, the ratio analyses revealed the financial problems of the company. So Coca-Cola has to put more emphasis on it before affecting the operations and performance of the company. Not just the profit should be considered, but also the financial issues, the brand image and the relationship with the society.