Professional Documents
Culture Documents
A case study
for
Coca-Cola Company
Submitted by:
Jennilyn Joy Acosta
Joyce Ann Beltran
Roxsanne Jennyne Cruz
Sedfrey Francisco
Timothy Ramos
Anjelyn Sardillo
Submitted to:
Jamilton Esguerra
I. Time Context: 2007
The time context used and presented in this study is from the end part of 2006 up
to 2007 where the people get conscious of their health diet. During this time, beverage
product such as water, juice drinks, sports drinks, energy drinks, teas and coffees
This business case is taking the viewpoint of a Chief Operating Officer who holds
Coca-Cola Company derives a large part of its profit from the sales of its soft
drink products. Soft drink industry is now facing problems that are significantly affecting
the Coca-Cola Company soft drink products causing sales to decline due to inability to
match up with the current trend. Consumers are now becoming more concerned with
their health and avoiding the intake of some beverages that might be harmful to their
health. Issues are now spreading that soft drinks are unsafe drinks that might cause
problems like obesity. Many states in the USA now ban the selling of some soft drinks in
public schools. The government is now trying to regulate the sale of soft drinks and may
IV. Objectives:
V. Areas of Consideration:
The problem of Coca Cola Company arises from the dilemma that the soft
drink industry is currently facing. The factors that can help in analyzing and
the products they consume. Health turned out to be their major concern
and they become very selective with the products they take. Products,
which are health-friendly are now running the current trend in the
beverage market.
Issues have spread that the Coca Cola Company’s soft drink products are
harmful for those who intake it. Soft drinks are said to have ingredients
obesity.
ACA #1 – Coca Cola Company should enter snack division and bring new
products in the market for a change because the consumer cannot stick
ACA #2 – Coca Cola should maintain and broaden its relationships with their
stage of development.
Strengths Weaknesses
Opportunities Threats
Product diversification in categories
such as juice and juice drinks, Intense competition with PepsiCo
bottled water, teas, energy drinks,
coffee and more.
Coca Cola Company should enter snack division and bring new products in the
market for a change because the consumer cannot stick with the same old
products.
Coca Cola should maintain and broaden its relationships with their bottling
partners and ally companies. In addition, Coca Cola Company should tailor or
invest their business approach to the individual marketplace based on its stage
of development.
Strengths Weaknesses
Sluggish performance in North
World's Leading Brand America
Robust revenue growth in three segment
(Latin America, ‘East, South Asia, and
Pacific Rim)
Opportunities Threats
Growing bottled water market Dependence on bottling partners
Bidding for Cadbury’s carbonated soft Parting ways with Nestle on selling
drink business tea
Competitors may access unreached
parts of the world prior to Coca
Cola
their soft drink products in consistent with health changing attitude of the
Strengths Weaknesses
World’s Leading Brand Negative brand image of their products
Greater recall in the mind of the Sluggish growth of carbonated
customers beverages
Lack of popularity of many other Coca
Health conscious products Cola’s brands
Soft drinks is the most profitable
product of the company
Opportunities Threats
Product differentiation Changing health-consciousness attitude
Introduce soft drink with focus of
“health-friendly soft drink” –
eliminate obesity concept Legal issues
Be recognize as a socially Government policies- for disclosure of
responsible firm health warning
Catering to health consciousness of
people
ACA#4 SWOT Analysis:
Coca Cola Company should focus more on producing and marketing their
Strengths Weaknesses
Health-conscious products Negative brand image
Low profile or non-existent
advertising
Opportunities Threats
Entering into or introducing new sports
events to introduce new sport drinks Key competitors (Pepsi Co)
Catering to health consciousness of
people
VII. Recommendation:
The Coca Cola Company should take the ACA#3 which is to improve and to
innovate their soft drink products to adapt with the health-changing attitude of their
consumers. The Coca Cola Company is globally known as the largest beverage
company, notably, for their brands of soft drinks. People, nowadays, are becoming more
concerned with their health; the company should match such attitude with products that
are health-conscious. Producing a “health-friendly soft drink” is the most effective and
efficient way to increase market share, regain the declining sales and increase profit,
and negate the company’s bad image with regards to their soft drink products. There is
no need for too much marketing effort because there is no other soft drink brand as
immediately recognizable as Coca Cola unlike bringing new products such as snacks,
etc. which is quite unfamiliar with the market regarding Coca Cola Company. Improving
an industry rather than introducing a new product which will need a high degree of
competitive advantage in order to compete with large established competitors. The
Coca Cola Company started and have been recognized with its soft drink products, and
Program Activities:
ensure that the departments will perform in line with the objective.
It is the responsibility of the top management and the allotted time is one week.
2. The finance department will prepare budget for the company and for each
3. A group of expert will be consulted with regards on how to develop and innovate
soft drinks. R&D activities and other related steps have an allotted time of six
months.
7. The packaging department has to make the packaging attractive so that the
product will meet the eyes of the consumers. It works with the companies bottling
8. Global distribution of product through creating strategic alliance with other firms.
9. Construct a marketing plan that will ensure that all communication is consistent in
every market.
10. Execute the marketing plan. Advertise and promote the products in the market
11. Enter into or introduce new health activities to promote health friendly soft drinks.
All these promotional activities will continue until the new product penetrates the
market.
12. Look after the performance of the product in the market and evaluate sales data
in various segments.
Contingency Plans:
improvement.
The company should stop producing these kinds of soft drinks and just
focus on advertising its less popular products. The firm may cater the
health conscious customers thru their products like juice drinks, teas,