The Coca-Cola Company Harvard Case Solution & Analysis

Promotion

            The promotion of the product is very important for any company in terms of targeting customers and developing brand awareness. Similarly, Coca-Cola Company is involved in investing billions of dollars in the advertising and promotion of the product around the world, so that it can maintain its position against its biggest competitor Pepsi. Coca-Cola uses television advertising for promoting its products and also spends a good portion of the budget over advertising.Coca-Cola also marketed its products through Magazine ads, billboards, online and social media. These tools were used efficiently by Coca-Cola Company for marketing its product line.

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Coca-Cola invests billions of dollars a year in advertising and promotions around the world to maintain its position of industry leadership against rival Pepsi. Pepsi increased its TV ad budget by 30 percent in 2011 when it fell behind Diet Coke. Coca-Cola spends a good portion of its ad budget on television advertising. It has used polar bear characters and a message of nostalgia and tradition as part of its branding over time. Magazine ads, online and social media have also been used as a media for Coca-Cola marketing. Sales promotions at the store are used to drive revenue during slow periods.

SWOT Analysis of Coca-Cola Company

Strengths

  • Coca-Cola is one of the world’s largest beverage company
  • It has strong marketing and advertising
  • High rate of loyal customers
  • Bargaining power over suppliers
    • Coca-Cola has a high debt ratio because of acquisitions
    • The product portfolio is undiversified
    • It consists of many brands which do not generate enough revenues
    • High focus on soft drinks
    • Countries having high rate of soft drink consumption
    • Increasing demand of bottled water
    • Increasing demand for healthy food and beverages
    • Decrease in profit margin due to the high cost of water and other raw material
    • Competition from Pepsi
    • Different carbonated drinks in the market

Weaknesses

Opportunities

Threats

Competitor Analysis

                The major competitor of Coca-Cola Company are PepsiCo, Nestle and Dr Pepper Snapple group. The major competitor is PepsiCo. Though share of PepsiCo is lower than Coca-Cola Company, but coke has to continuously keep bringing changes in its products for maintaining its position. Coke has to make huge investments in promotion of its products. The market captured by Coke is 194.13B, PepsiCo market captured is 148.51 in the beverage industry. The competitive advantage of Coke is its strong brand image and leadership, strong brand portfolio, loyal customers, flexible sales and distribution model and good marketing strategies.

Recommendations

            The Coca-Cola Company should emphasize on research and development on new packaging for its product line and product portfolio of the company is one of the way through which it can compete with its competitors and appeal target market. Moreover, it will also help in gaining the brand value and customer satisfaction. Research and Development in products which are good for health of customers and made from healthy materials can change the image of Coke from negative to positive in terms of health. Improvement should be made in the packaging by creative and beautiful design, which can be used to create a new feeling and attract the customer.

            The company should also increase its marketing and advertising of the products which are not generating revenues.  Coke can promote the new semester, year and doing coke as a symbol of friendship between two friends. Coke must also target different events and increase the availability of celebrities in its advertisements to appeal to the target audience. Whereas, the source of water should be identified for providing quality water to the company through low prices...............................

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