Coca-Cola Market Analysis Report

Coca-Cola Market Analysis Report

Coca-Cola is one of the world’s leading soft drink maker around the globe. The firm operates in more than 200 countries.it sells various products including beverages. The firm generates 60% of its revenue outside United States. The globe recognizes its strong brands and this has made the company increase its sales over time. Research shows that at least 94% of the global population is aware of the red coca cola logo. This paper will focus on the improved services in marketing which includes segmentation, targeting and positioning of coca cola. The paper will also address the competitive advantage the company has in its marketing strategy, the BCG matrix and the distribution strategy in the marketing strategy.

Growth and market portion

Coca cola is the gold standard in the beverage industry. The firm operates a strong business model which is clearly shown in their dividend history. The firm has been operating with consecutive increase in their dividends. The latter happens because the firm operates. A recession resistant business model which has a competitive advantage and a wide economic moat. The company is still expected to grow by $ 300 billion from 2015 to 2020.the firm begun in Atlanta Georgia and its first product was made a pharmacist John S. Permberton in 1886.its brand name was designed by the company’s accountant Mr. Robinson together with its logo which is still used today. The firm grew rapidly and manage to surpass many other businesses. Today, the firm is a giant in the beverage industry and has more than 130 years of offering service to its customers. Statistics show that at least 22000 coca cola beverages are consumed every second. The products are sold to more than 200 nations around the globe. The company has $44 billion operating revenues and a $ 7.4 billion net income.as per January 2016, the firm had $ 1765 billion market capitalization. Coca-Cola Market Analysis Report

The firm has also many other products which are developed both internally and also through acquisition. The firm has over 20 brands worth over $ 1 billion annual sales. This diversity in portfolio leads to the creation of crucial operational diversification. The firm has fundamentally improved its metrics and that has been abundantly associated to the success of businesses. In the first decade of 21st century, the company grew its earnings per share from $ 0.74 to $ 2.over the years, coca cola has compounded EPS at a CAGR of 10.2% which translates to a very high rate of earnings. The table below shows the total returns versus S& p returns….Show More Content….

The growth prospects of the company are very robust. The growth has been driven by several factors. The three main factors that contributes to the growth of this company include: organic growth which is driven by the expansion of beverage market and the still portfolio that coca cola possesses. The second factor is the businesses restructuring and the third aspect is the penetration in the international markets.

Coca cola also gets competition from various firms which include Pepsi Company (PepsiCo) and Dr. Pepper. By 2010, coke had a total revenue of $ 47.6 billion, a net income of $ 8.8 billion. Pepsi on the other hand recorded $ 65.7 billion and a net income of $ 5.92 billion. Dr. Pepper had a total revenue of $ 5.97 billion and a net income of 625 million. These three firms compete on different brands of drinks meant to serve almost the same purpose.

Customer behavior is influenced both psychologically and socially. The coca cola company has had very successful tactics in production of effects to the consumer behavior. Customer need to have the collect and identify information before making any purchase. The senses that are delivered by the firms lead to the creation of selective attention of the consumers. Consumers acquire information of sound, taste and smell and then make a preference. The senses and information create a sensation and perceptions in the minds of consumers. Receptions and sensation lead to the creation of the acceptance of a brand. Thoughts and decisions of customers in most cases are affected by the psychological factors and this makes the customer behaviors to be different.

Social and ethical issues

The coca cola company obeys different rights regarding to the employees. The firm has more than 90,000 workers from different cultures and…ORDER YOUR PAPER NOW

 

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