COCA COLA ANALSYIS1 Case Analysis: Coca Cola Kai Thng John Brown University BUS 7113: Marketing Strategies; Spring A 2023
COCA COLA ANALSYIS2 Introduction On May 1886, Dr. John Stith Pemberton a pharmacist produced and brought as syrup for Coca-Cola to Jacob's Pharmacy where it was appreciated, sampled, then put on sale as a fountain drink. This was accomplished by pairing the syrup with carbonated water to create a drink that would one day become and international success. Originally it was marketing as a cure for most diseases and was made with cocaine from the coca leaf, as well as caffeine extracted from the cola nut, but cocaine was removed from the recipe in 1903. Through advertising and marketing, Pemberton was able to sell this syrup to local soda fountains bringing the drink success. From thee the business was bought over by another pharmacist in 1891 named Asa Griggs Candler, who then incorporated the company the next year. Under his control, sales rose a significant amount from 9,000 gallons in 1890 to eventually 360,877 gallons in 1900. During this time the product was so successful that it was sold in every U.S. state as well as throughout Canada. Another important action that this company took was signing an agreement with another bottling company allowing them to buy and sell the Coca Cola drink themselves. In 1919, the company was again sold for $25 million to Ernest Woodruff. Post World War II the company took several steps to diversify through in-house innovation as well as buying other products as well. This included introducing the contoured Coca-Cola bottle, sprite, diet soda, and the purchase of Fanta, Minute Maid, and Fresca. In the 1990's Coca-Cola expanded by selling its products in places like East Germany and India as well as introducing a bottle made partially from recycled plastic, and finally it also introduced and acquired even more products. The products they introduced were Qoo, Powerade, and Dasani, and in addition they acquired Barq's root beer, Inca Kola, Maaza, Thums Up, and Cadbury Schweppes (Zeidan, 2023).
COCA COLA ANALSYIS3 Currently Coca-Cola is the sole leader in the beverage industry, while its even its strongest competitors have been able to unseat them from this spot. This company has a brand value well over 74 billion U.S. dollars. This company operates in more than 200 countries while selling over 500 brand beverages. Globally its strategy is to differentiate its products in each country in the areas of marketing, packaging, pricing. In order to stay ahead of the competition, Coca-Cola boasts a broad product line, great customer service, and a large advertising budget (Hughes, 2023).Its sales revenue for 2022 were $15.41 for the United States and $27.59 billion internationally, which was up significantly from its previous revenues the year before of $13.01 billion and $25.64 billion respectively. In terms of market share, the company has just under 45% market share in its industry with the next closest competitor being Pepsi 25.9% in 2020. An outstanding fact that puts into perspective the tremendous growth and success of the company is that an estimated 1.9 billion servings of Coca Cola products are sold every day around the world, while only a total of 25 bottles were sold in the company's first year of business (WallstreetZen, 2022). In today's time the beverage industry faces several problems and issues that must be addressed by companies if they want to succeed and be prepared in the future. The COVID-19 pandemic was one of the biggest catalysts for this and it has shaped the way that businesses have had to shift their strategies. Things that happened during this time was an increased emphasis on lean business practices, increased technical integration, working remotely, and sourcing things sustainably. Businesses struggled and many industries were hurt especially hard such as the airline industry whose revenues in 2020 dropped by 60 percent. Healthcare was also affected by the pandemic as the world was strained to meet with the demands and effects that the pandemic wrought among those it afflicted, but a positive was the speed and scale at which humanity