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The Coca-Cola Company: Represents 2019 Revenue Composition

Coca-Cola has operated for 125 years through various market changes. To stay competitive, it diversified its revenue through brand extensions, maintained a strong global presence by tailoring products to local markets, and distributed widely through partnerships. In 1985, it introduced "New Coke" which was widely disliked, but the backlash reinforced Coca-Cola's brand and showed it was willing to change to meet consumer needs.

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55 views

The Coca-Cola Company: Represents 2019 Revenue Composition

Coca-Cola has operated for 125 years through various market changes. To stay competitive, it diversified its revenue through brand extensions, maintained a strong global presence by tailoring products to local markets, and distributed widely through partnerships. In 1985, it introduced "New Coke" which was widely disliked, but the backlash reinforced Coca-Cola's brand and showed it was willing to change to meet consumer needs.

Uploaded by

Tim
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Company Analysis No.

The Coca-Cola Company

The Market Development

Coca-Cola's company is a 125-year-old business operating through numerous


market developments throughout the years. As all business people said there are no
such plans that worked for a company for a very long time and that’s what happened
with the Coca-Cola. The need to adapt with the current market trends, the necessity for
the company to continue its global presence and corporate social activities and lastly to
keep the consumer wanting their product.

Coca-Cola used at least three known strategies to keep up with the competition.

They are as follows:

1. Diversifying Revenue – As seen to numerous advertisements all around


the globe, Coca-Cola wasn’t just about ‘all-sugar-drinks’ the chart below
says otherwise. Coca-Cola has been busy creating sub brands that are
complimenting each other and giving the market command to the global
brand.

Note: Pie chart


represents 2019
revenue composition.

(Photo courtesy of https://investors.coca-colacompany.com/strategy)


2. Strong Global Position – Coca-Cola has been improving its market
share compare to its immediate competitors. Coca-Cola knew how
consumer demands for their product but also is mindful that they can still
cater a bigger portion of the consuming population by targeting markets
and developing and innovating products suitable for the market demand.

NOTE: The leadership


position donut charts
represent the
percentage of markets *Tea & coffee
where we have a includes ready-
leadership position in to-drink
the markets in which we beverages only
play for that category
cluster.

(Photo courtesy of https://investors.coca-colacompany.com/strategy)

3. Pervasive Distribution – Using the franchise business model the


company was able to imprint its brand to the global market with diversified
local touch from each territories. Now with over 225 bottling partners
across the 200 countries and territories that sell Coca-Cola’s products
from more than 20 channels within the 30 million consumer outlets
globally.

*2018 data

(Photo courtesy of
https://investors.coca-colacompany.com/strategy)
The New Coke

Thirty-five years from their infamous Coca-Cola reformulation, was also the
moment that solidifies the brand of Coca-Cola wasn’t just a carbonated drink. It was
coined as the riskiest move ever that any consumer goods ever made in the history.

Coca-Cola introduced the “new Coke” to the public after 99 years of not
reformulating the Coke that people have known and loved. Coca-Cola didn’t actually
intend the turn of events but it made their brand stick better to the mind of the
consumers.

The story of the ‘new Coke’ was often recalled but the context on why the variant
was able to blossom was forgotten. Coca-Cola’s flagship product was slipping for 15
consecutive years so that’s why the variant emerge and made its way publicly. The ‘new
Coke’ which they later called on as Coke II was on distribution for 79 days before the
company brought back the ‘Classic Coke’. The company wasn’t actually trying to
experiment publicly the new product, Coca-Cola firsthandly taste test the incoming
product to over 200,000 people. Little did the company knew, the people’s bond with the
classic Coke was incomparable leading to numerous hoarding of Coke and even
movements to bring back the ‘classic Coke’.

This is one of the moments that the late Roberto Goizueta, former chairman and
chief executive officer of Coca-Cola was able to say these powerful words; “But the
most significant result of 'new Coke' by far was that it sent an incredibly powerful
signal ... a signal that we really were ready to do whatever was necessary to build value
for the owners of our business."

“Marketing blunder of the century” as the people of USA at the year 1985 coined
this move of the Coca-Cola paved the way for the company to think better strategies in
the near future to better served their consumers. Events like that changed the whole
soft-drinks industry and Coca-Cola brand soared higher than before.

References: https://investors.coca-colacompany.com/strategy
https://www.coca-colacompany.com/news/the-story-of-one-of-the-most-
memorable-marketing-blunders-ever

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