The large nature of the Coca Cola Enterprise


Coca-Cola Enterprises, established in 1986, is a young company by the standards of the Coca-Cola system. Yet each of its franchises has a strong heritage in the traditions of Coca-Cola that is the foundation for this Company. The soft drink first sold to the public of the soda fountain in Jacob's Pharmacy in Atlanta on May 8, 1886. The first year sales of Coca-Cola were a loss at that time. However, John Pemberton never gives up.

Unfortunately, John Pemberton died on August 16, 1888. Before that, he sold part of share to Asa Candler. She put all money and times into Coca-cola it is because she got a headache one day, her servant cooked the hot Coca-cola to her. After she drink the hot Coca-cola, she becomes better. Therefore, she believed it is an opportunity to make more money. After many years, her business is on the up grade.

At 1928, Coca-Cola Company support Olympic first time. This is behalf of Coca-Cola company start throw themselves at Olympic until now. Through Coca-Cola first make a stage pose in Olympic, let the people more keep an eye on the brand.

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Until 1905, the soft drink, marketed as a tonic, contained extracts of cocaine as well as the caffeine-rich kola nut.

In December 1991, a merger between Coca-Cola Enterprises and the Johnston Coca-Cola Bottling Group, Inc. (Johnston) created a larger, stronger Company, again helping accelerate bottler consolidation. As part of the merger, the senior management team of Johnston assumed responsibility for managing the Company, and began a dramatic, successful restructuring in 1992.Unit case sales had climbed to 1.4 billion, and total revenues were $5 billion

However, the social is change and change, the people choice product's taste also changed. Today, the people pay attention to their health life. They eat and drink choice the health food, people choice the herbal tea or fruit soft drink instead of Coca Cola; it is because they are good for people's health. Therefore, Coca Cola must change their product to reach the customer's need and want. For example, the company produced the new product-Coca-Cola with low calories and add vitamin for health benefit. This new product is for the people like to drink Coca-Cola but they worried about their weight. Low calories are keeping the Coca-Cola original taste and there are fewer calories in it, and there is vitamin for health.

Since the Coca-Cola has already been in the market for a long time and there are many customers starting to change their taste, it is an opportunity for the company to have a new market change. Therefore, the company may brainstorm to develop a new market to meet their customers' needs. Although the Coca-Cola has a good image and good sales figures, but the customers' needs are always changing, they need to brainstorm their staff to get some innovative ideas, which are to produce some different taste of the Coca-Cola drinks, such as the strawberry, orange, lemon type of Coca-Cola. The other idea is to improve the taste of the original Coca-Cola.

Key Characteristics of the New Products

Coca-Cola has a long history and everybody knows this brand. This is a big company and its target market is very big. Basically it is based on young generations, so the young generation is the target market of Coca-Cola. The segments are basically those people who take Coca-Cola everyday and the regions that the demands are high. There are many people who take Coca-Cola everyday and the persons who drink periodical and those who take less often are always there as well. So, their basic segments are those people who take this drink regularly. Why this is the basic target, there are some reasons, let's talk about one of it, as youngsters love sports and they need to have drinks after, Coca-Cola is one of the most famous drinks for them to choose.

Pricing Policy

The prices of Coca Cola are always change; it is very elastic as it is according to the season. As summer is hot and it is supposed to sell a higher price, vice versa, winter is cold and so it decreases the prices to maintain the sales.

Promotional tools

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Coca Cola uses a lot of promotion methods for promote the company, for example: TV advertisements, concerts. In addition, the most important one is the joint promotion with the McDonald's, in the whole world, every McDonald will sell Coke instead of Pepsi and this is a good promotion strategy as McDonald is also a big company.

Channels of distribution

Coca Cola Company makes use of two distribution channels; they are direct and indirect selling method. For direct selling, they provide the products to shops by using their own cars. They have many vehicles for transport. On the other hand, the indirect selling, the company has distributors; it is because it is hard to cover the entire world by their own.

On my point of view, there is no reason for Coca Cola to develop a new distribution channel, as the existing methods are so successful.

Level of customer service

-Personal Selling

When the distributor want to purchase the new product made from coca cola, the staff need to provide the suitable information to the distributor to ensure they have the understand on the new products.

-After sales service

When the customers and distributor discover that, there may be some damage on the product after they purchase the product, the company has the responsibility to solve the problem.

-Warranties and guarantees

Coca Cola make sure all machine is in good condition, has been factory tested and cleaned.  Equipment may have some minor cosmetic imperfections but works perfectly and it has 30 day warranty for people who want to change the drinks.

- Refunds and exchanges

There are no refunds or exchange will do by Coca Cola instead of quality problem. As the drink open, only there are problems, Coca Cola Company will make refunds or exchange to the customers.

The marketing Mix of the individual components

Different promotion activities can attract the public eye sight and their attention. As a result, it can make sure all people know there is the new products lines will be develop by Coca Cola. For example, Salesman of the Coca Cola Company put their freezers and their products in eye-catching positions. In general, they keep their freezers near the entrance of the stores. Also they gets or purchase shelves in big departmental stores and display their products in that shelves in that style which show their product more clear and more attractive for the consumers.

Environmental factors

The marketing mix of Coca-Cola includes the factors that the company pedals to facilitate supply consumer fulfilment in the target market segments. Throughout the strategic merger of these factors, Coca-Cola warrants that it is competent to produce a affirmative response from its target market segments.   


Coca-Cola has been able to branch out its products to include carbonated drinks as well as bottled water. The diversification to other soft drink sectors was influenced by the growing demand for healthy beverages in its targeted market.  


            The diversity of the quantity of demand and the cost of packaging has also affected the products of the company. The companies packaged their products in glass bottles of different sizes and shapes. However, after the development of plastic containers the packaging shifted to plastic containers especially for larger volumes of soda making it lighter when carried. At present, the demand for better convenience resulted to the packaging of sodas in cans. Coca-Cola products are sold in glass bottles, plastic containers and cans.

    7.2.2 Price


The pricing strategy of Coca-Cola is based on the pricing dynamics relative to its competitors as well as the value of its products. In China, as is true in the international market, the fiercest competitor of Coca-Cola is Pepsi so that pricing is in a way influenced by the interplay of these competitors in a given market. However, Coca-Cola holds the advantage in pricing because it had a head start of several years giving the company a stable market share relative to Pepsi, which suffered several bankruptcies. The product price of Coca-Cola became the industry benchmark. The strategy of Pepsi then was to sell its products at half the price of Coca-Cola. The company was able to gain a share in the market. ( 2003).  This pricing dynamics between Coca-Cola and Pepsi continue today. In supermarkets, the price of coke is still higher by 15 to 20 cents when compared to Pepsi.


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The higher price given by Coca-Cola to its products is supported by the value of the brand equity of its different soft drink products. Coca-cola was able to sell at a higher price than its competitors because of its stable share market share due to its marketing communications message linked to brand equity of product stability. This makes Coca-Cola a true leader in the industry due to its ability to determine the industry pricing benchmark. Despite its slightly higher pricing, it is still able to maintain a market share by establishing a high value for its products through associations with consistency and dependability.  

    7.2.3 Promotion


Coca-Cola applies consistency and dependability even in its promotional activities. The company actually makes use of pattern advertising ( 2003). The company develops advertisements containing its determined marketing communications message. The manner of advertising adheres to various specific audiences. However, despite the consistency of its advertising framework for its different markets around the world, Coca-Cola also implements local adjustments. The adjustments cover the 1) translation of words and lyrics in the local dialect of particular markets and delivered in a manner appropriate and acceptable to the local culture, 2) basic adjustments to the advertising format such as the use of locally significant words, phrases, messages and the arrangement of these elements to deliver a cohesive promotional campaign aligned with the basic marketing communications message of the company; 3) audio-visual adjustments made to the advertising format such as colour scheme, character selection, video stream and other audio-visual aspects of the campaign.


Apart from pattern advertising, Coca-Cola also adheres to product differentiation ( 2003) by withdrawing from the explicit cola war with Pepsi. The cola war persisted until the late 1900s with taste-tests and celebrity endorsements of competing personalities. In succeeding years Coca-Cola reverted to its marketing strategy of appealing to the stability and consistency found in the value accorded to family and friendship differentiating the company, product and brand from its competitors.


    7.2.4 Place


All the soda brands are marketed in the common channels of distribution except in the exclusive retail venues that companies bid to have. In supermarkets, these brands are sold side by side in the display shelf not giving a single brand any edge relative to the buyer. The rivalry over the channels of distribution was elevated to obtaining exclusive selling contracts in restaurants, places for vending machines, recreation areas, and popular events.

Coca-Cola has a long history from their organization; however, the society is change and change, and there are many competitors appear in the marketing such as Pepsi is one of the competitors of Coca-Cola. So Coca-Cola manager must think more marketing strategy planning to attractive opportunities and develop profitable marketing strategies to continue their business.

Coca-Cola manager use five-step approach to solving the compete problem. First, the manager should define the problem. That means the manager must know Pepsi celebrity to promo their products and they have many different types of taste of soft drinks. After that, manager should analyze the situation. The manager should know what the Pepsi's target consumers are and what products they have. Third, Coca-Cola manager can through the questionnaire to obtain problem-specific data. And then, they use the bar chart to interpret the data when they get the questionnaire. Finally, when they know the competitor's weakness, I think Coca-Cola is solved competes problem.

3. c. New product in the new market opportunity

If the company wanted to produce the new products in the new market such as a new target market or export international market, it must make more marketing research. For example, Coca-Cola wanted to produce the soybean milk in the Australia; it must make a research about the location people such as age, income even how many they know the soybean milk. The research will need to be conducts in order to ensure that is a realistic opportunity and that market penetration is likely enough to ensure long-term profit and market growth.

Resources are a key consideration when evaluating the strengths and weakness of an organization, including financial strength; production capability and flexibility and marketing strengths. Financial strength, production capability and flexibility of an organization are vital factors to explore a new market. So resource in one of the vital factors the organization's barriers. For example, if the organization wanted to potential in the new market, it must know there are enough profits to enter new market.

Screening criteria where both partners stand to gain in working together towards shared goals. Developing screening criteria is different but worthwhile, as they summarise what the company wants to accomplish, in quantitative terms, as well as roughly how and where the company wants to accomplish it. Opportunities that pass the screening could be returned into strategies that the company can implement with its resources.

Establish new market is real need for the product in the market. Long-term business success is built on satisfying consumers' needs and wants so it will be necessary to establish long-term demand for the product. For example, Coca-Cola has a long history, it also keep their original taste; however, the people want to try different taste of soft drink. If Coca-Cola not change their product's taste, I think the people would not to buy their product. So Coca-Cola establish a new market to other people to try their new product is not only let the more people know this brand, but also it can keep their market share. In addition, change different taste to customer is a long-term to build on satisfying consumer's need and wants. That is necessary to establish long-term demand for the product.

3. d. A new idea and innovation concept to develop market

Since the Coca-Cola has already been in the market for a long time and there are many customers starting to change their taste, it is an opportunity for the company to have a new market change. Therefore, the company may brainstorm to develop a new market to meet their customers' needs. Although the Coca-Cola has a good image and good sales figures, but the customers' needs are always changing, they need to brainstorm their staff to get some innovative ideas, which are to produce some different taste of the Coca-Cola drinks, such as the strawberry, orange, lemon type of Coca-Cola. The other idea is to improve the taste of the original Coca-Cola.

People in Hong Kong are starting to pay more attention to their health; they may want to have a drink that is good for their health, so they have designed a new product that can meet their needs. The new product of their company is Coca-Cola Zero or Coke Zero. The sale point of this product is that they are made of zero sugar and zero calories. Coke Zero is a drink produced with its focus on the young people and the adults. The objective of this drink is to provide no sugar and no calories, and to provide a healthy drink for its customers. Therefore, it may be good for the young people and the adults to take Coke Zero for good health, but it may not good for the young woman to take Coke Zero for diet purpose.

To promote Coke Zero and explain to the customers that Coke Zero is the new product of the Coca-Cola, the company has made a logo for Coke Zero that is similar to the logo of Coca-Cola. They change the background colour of the logo from red to black and add the word 'Zero' under the words of Coca-Cola. Coca-Cola had made an advertisement on the television, papers and magazines. All advertisements had showed the objective of the product, so it may help the company to tell the customers how good the Coke Zero is. The advertisements can achieve its aim to tell the customers that Coke Zero is good for health and the ladies need not worry that they may gain weight if they take Coke Zero frequently.

3. e. The new market opportunity of the organization

Coca-Cola is to provide their customers drinks that may meet their needs. In the company, there are many kinds of drinks, such as Coca-Cola, Coca-Cola Zero, Qoo, Wilkins etc. A company should have enough capital and human resources, so that they can meet the company's goals and the business activities.

Their Return on Equity (ROE) had increased 2%, and their net assets return ratio has stabilized at a high level. It is because their sales net profit rate is high and the property handling speed is quick, this explains that the special profession characteristic enables Coca-Cola to have a high profit margin and its strong brand effect and the marketing strategy enables it to have a high speed in the property handling. As the report shows that Coca-Cola has the enough financial resources to operate their company, also they have the adequate human resources, so it is fit within their current business practices, and to adequately service the new market for the company.

3. f. SWOT analysis of the opportunity and viability

The Coca-Cola had made an analysis on their SWOT to develop a clear picture of the opportunity and its viability of their company. There are four things they had analyzed, which are strength, weakness, opportunity and threat. Coca-Cola has a great strength; their brand has already been a part of life of the consumers, it is because they are the giant in the soft drink industry and they have potential to expand over the world. They also have a very powerful advertising program to have the world's top superstars to promote their products. As they have a secret formula to make the Coca-Cola, so it helps the company to be the top seller in the market for a long time, these are all the strengths of the Coca-Cola.

Besides, there are some weaknesses of the Coca-Cola. First, it is difficult for Coca-Cola to control their company, it is because the company is too large, and there are so many products to focus on. To some consumers, the image of the Coca-Cola is not so good it is because the drinks contain the caffeine, which may affect their health and may make them become fat. On the other hand, there are some opportunities for them to improve their company. People in Hong Kong are starting to pay more attention to their health, so the opportunity of the company is to develop a new market of healthy drink for the Coca-Cola. If the company focuses on the young people's needs, the company may have a high market opportunity, for example to provide some drinks that may be good for their health.

There are some threats of the Coca-Cola, as people are starting to pay more attention to their health, so they may choose the drinks that may be good for their health and take less the soft drink like Coca-Cola, which they think, is not a healthy drink. Coca-Cola may have many competitors, for example Pepsi-Cola has a continuous growth in the recent years while Coca -Cola is not having much growth in the market of the mainland China.

On 12th December, 2005, their competitor's Pepsi-Cola had exceeded the stock market value of Coca-Cola, it is a big harm to Coca-Cola. After that Coca-Cola had evaluated the market of Pepsi-Cola. Pepsi-Cola had focused on the young people's needs to design some healthy drinks for them; also, the multiplex management had helped Pepsi-Cola to succeed. As a result, Pepsi-Cola had made some other products other than Pepsi-Cola, it is a good market for their company. As Pepsi-Cola has different kinds of products which involve watch, clothes, sport products etc, so their sales volume is better than Coca-Cola. As the result shows that Pepsi-Cola has more than a half of its sales income is come from leisure food, and less than twenty per sent of sales income is come form their cola. However Coca-Cola has a completely different picture: Coca-Cola has more than eighty per sent of its sales income comes from soft drinks which includes cola, so it will be a threat to Coca-Cola if consumers refuse to drink cola.

3. g. Overall return on investment and potential market share

Overall, Coca-Cola had made an annual profit of 2.16 US dollars per share, a growth of 6%, the annual profit will be 2.37 US dollars per share, a growth of 9% after taking into consideration the influence of the non-regular items. The total return on investment for the shareholder of Coca-Cola is up to 23%, exceeding the 500 average levels of the Dow Jones average and the Standard & Poor.

Regarding the potential market share, Coca-Cola has surpassed forty per sent market share in USA. They are one of the first five soft drinks of four big brands in the world, and they act as the leader of the drinks product in the market. They have put the soft drinks as their focus production, and so they have a clear position to produce their product in the market for a long time. Other than this, they have a good performance on Carbonic acid drinks. In the international market, they have produced different kinds of drinks, such as they have produced some new orange drink - Oasis etc. this orange drink has the top sales volume in the international market, also the company has the second sales volume in the sports drink market. At last, they have a water drinks product that is Wilkins, and this product has the third sales volume in the water drinks market. Coca-Cola has a good market in China, Brazil, Mexico, Russia etc. in 2008, they had seventy-three per sent of sales came from outside North America area.

3. h. Current operations change of the new marketing opportunity

Coca-Cola is starting to change their operations for their new marketing opportunity; they use market development strategy with the market mix to have a new marketing opportunity, which is to sell the products to other countries. In 2008, Coca-Cola had promoted their product Coca-Cola Zero to China. Coca-Cola Zero is a drink with different component which is focused on the young people. Coca-Cola had focused on their price to sell their drink to China. Since China is a big country which means a big market for Coca-Cola, if their product is successful, it will bring a high income to Coca-Cola. So they would like to sell their Coca-Cola Zero at a lower price to attract more customers to buy. Also they had used an advertisement to promote their new product, the advertisement needs to be interesting and needs to show the objective of the product. The advertisement of the Coca-Cola Zero is to tell the customers that it is good for their health, so the customer may know more about the product and would have a desire to buy the product and try it.

4. Conclusion

To conclude, Coca-Cola is a large company, they have different kinds of drinks, for example, Coca-Cola, Coca-Cola Zero, Qoo, Wilkins etc. which are provided to meet the customers' needs. In this assignment, it have evaluated the current competitive position of Coca-Cola, the products or the services and also the company's product lifecycle.

As the company had already been in the market for a long time, they need to change their current operation so that it may be good for their new market opportunity.

In order to have a new market opportunity, Coca-Cola needs to evaluate the market in order to know more about the current market. On the other hand, they also need to evaluate their competitors, to know more about their operation, their market place and their market environment. Coca-Cola needs to develop the new market opportunity which can match with its current goals and business activities, fit within its current business practices and is in line with its core business. Furthermore, Coca-Cola needs to evaluate itself to see if the company has the enough resources to adequately service the new market.