Contents

Chapter 1: Introduction .................................................................................................................................................. 3

Chapter 2: PESTLE ............................................................................................................................................................ 3

2.1 Political Factors..................................................................................................................................................... 3

2.2 Economic Factors ................................................................................................................................................. 4

2.3 Social Factors ......................................................................................................................................................... 4

2.4 Environmental Factors ...................................................................................................................................... 5

Chapter 3: SWOT ............................................................................................................................................................... 6

3.1 Strengths .................................................................................................................................................................. 6

3.2 Weaknesses ............................................................................................................................................................ 6

3.3 Opportunities ......................................................................................................................................................... 7

3.4 Threats...................................................................................................................................................................... 7

Chapter 4: Market Segmentation, Target Market and Positioning ............................................................... 8

4.1 Types of segments present in the market for Coco Cola ........................................................................ 8

4.1.1 Demographics: ............................................................................................................................................. 8

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 4.1.2 Income and Family Size: .......................................................................................................................... 8

4.1.3 Geographic: ................................................................................................................................................... 8

4.1.4 Consumer behavior: .................................................................................................................................. 9

4.2 Market Positioning............................................................................................................................................... 9

4.3 Recommendations ............................................................................................................................................... 9

4.3.1 New Markets................................................................................................................................................. 9

4.3.2 Diversification of Product Portfolio .................................................................................................... 9

4.3.3 Targeting New Segments of the Market .......................................................................................... 10

Chapter 5: Marketing Mix ............................................................................................................................................ 11

5.1 Product Strategy – Health-Conscious Consumers ................................................................................ 11

5.2 Product Strategy - Environmental Issues................................................................................................. 11

5.3 Product Strategy - Stringent Regulations ................................................................................................. 12

5.4 Promotional Strategy - Competition .......................................................................................................... 12

Chapter 6: References ................................................................................................................................................... 14

Chapter 7: Appendix ...................................................................................................................................................... 17

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 Chapter 1: Introduction

Coca-Cola is a global company in the beverage industry that sells its products in more than two
hundred nations worldwide. Its current headquarters is located in Atlanta, Georgia, United States
of America. Coca-Cola, Sprite, Fanta, and other sparkling soft drinks are among their portfolio of
brands. With a global brand worth of over 74 billion dollars, Coca-Cola has constantly been named
as the best soft drink brand in the world as it always had a global and local focus in its marketing
ideas. The second-largest source of revenue for the corporation’s business is it’s bottling
investments. The advertising efforts for Coca-Cola are creative and memorable. The business has
increased its investment in advertising, spending more than $4 billion in recent years, as a means
of maintaining strong revenues. (Coca-Cola Company - statistics & facts | Statista, no date)

The company’s customer target market focuses on young individuals between the ages of 10 and
35. (Coca-Cola Marketing Strategy 2023: A Case Study | Simplilearn, no date).

The report that follows focuses on the Global Market of Coco Cola and provides an insight into
the internal and external environment of the company.

Chapter 2: PESTLE

2.1 Political Factors

 The recent trade war between China and US have highly impacted the production cost of
Coca-Cola canned products as the prices of steel and aluminium went up, resulting in
increasing the products prices. (Coca Cola PESTLE Analysis | MBA Skool, no date)
 Israeli 2014 attacks on Gaza’s territories have created boycott motions in countries like
Malaysia, in addition multiple business and hotels stopped using Coca-Cola products in
Turkey, and India. (Israel’s attacks on Gaza are leading to Coca-Cola boycotts, no date)

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2.2 Economic Factors

 Fluctuation in exchange rate has adversely impacted Coca-Cola's performance in recent

years. For example, Coca-Cola's fourth quarter 2014 profits had to be reduced by 55 % due
to the drop in the Venezuelan currency.
 Due to inflation, Coca-Cola is forced to increase their products’ price. Consequently,
increasing the risk of losing consumers who cannot afford the elevated price. For instance,
a 2-litre Coke bottle double its price from 2002 to 2013 due to inflation []. (Macro Factors
Affecting Coca Cola | Understanding The Market Process, no date)
 After Trump’s increase in aluminium tariffs in March 2018, Coca-Cola was obligated to
increase their products’ price to account for the increased raw material cost. Further, the
dollar depreciates during inflation, thus, Coca-Cola endures losses from importing raw
materials.

2.3 Social Factors

 Given the rise in health-consciousness amongst consumers, Coca-Cola's primary focus on

sugary carbonated drinks may lead to a decrease in their profits. The graph in Figure 1:
Beverage Consumption in the US demonstrates the drop in the American consumption of
soft drinks from 1988 to 2012.

 Studies (Vartanian, Schwartz and Brownell, 2007) have demonstrated that the consumption
of soft drinks is linked to an increase in body weight, as well as a reduction in the intake
of calcium and other vital nutrients, which in turn can result in medical issues such as
diabetes. Another study (Elfhag, Tynelius and Rasmussen, 2007)found that people who
consume soft drinks are more likely to have external eating habits, and a higher body mass
index (BMI). Additionally, articles(Soft Drinks and Tooth Decay | Massachusetts Dental
Society, no date) have revealed that just 20 minutes after drinking a soft drink, the teeth
enamel is damaged, causing decay and cavities.

4
2.4 Environmental Factors

 Coca-Cola's business is affected by a range of environmental factors, including climate

change, water scarcity, and pollution. The company has been criticized for its impact on
the environment, particularly its use of water resources.
o Coca-Cola has set goals to reduce CO2 emission, water usage, and wastage. They
are aiming for a 61% product recycling rate by 2021 and to make all packaging
recyclable by 2025. []. (Sustainable Packaging | The Coca-Cola Company, no date)

5
 Chapter 3: SWOT

3.1 Strengths

1. Global presence, strong brand recognition and financial performance: Coca-Cola is one of
the most recognizable brands in the world. It is available in over 200 countries, has a market
capital of $271.10B (KO $63.27 (▲0.21%) Coca-Cola Co | Google Finance, no date), and
has generated an annual revenue of $38.655B in 2021[](CocaCola Revenue 2010-2022 |
KO | MacroTrends, no date). Moreover, Coca-Cola has the largest market share in the
beverage industry of approximately 46% in the US (Coca-Cola Company’s U.S. market
share 2021 | Statista, no date).
2. Coca-Cola has a diversified product portfolio that includes sparkling and still beverages.
The company's products are available in over 200 countries and its brands are some of the
most valuable in the world. Coca-Cola's has a strong portfolio of over 500 brands and 3,500
products.
3. Coca-Cola spends billions of dollars on marketing and advertising every year. This has
helped it build a strong brand equity and create a loyal customer base.

3.2 Weaknesses

1. The company's reliance on carbonated soft drinks, which accounts for over 60% of the total
revenues, makes it vulnerable to changes in consumer preferences. For instance, Coca-
Cola's products are associated with health concerns, the company's products contain high
levels of sugar and calories which can lead to obesity and other health problems.
2. Coca-Cola's market share in the carbonated soft drink market has been declining in recent
years. The company's market share in the United States declined from 42.3% in 2000 to
39% in 2016. The company's market share in Europe declined from 29.2% in 2000 to
21.3% in 2016.
3. Coca-Cola's market share in the carbonated soft drink market has been declining in recent
years. The company's market share has declined from 42.3% in 2000 to 39% in 2016 and
from 29.2% in 2000 to 21.3% in 2016 in the US and Europe, respectively.
4. Coca-Cola has been embroiled in several controversies, such as water depletion, major
pollution (Coca Cola Competitors Analysis : Are They Still Leading? - Business

6
 Chronicler, no date a), and child labour. These controversies have damaged the company’s
reputation and led to calls for boycotts of its products.

3.3 Opportunities

1. Coca-Cola has a strong presence in established markets, but it has not made much of an
impact in emerging markets yet. These regions have the potential to experience
considerable economic expansion in the coming years, and the increasing middle-class
population presents a beneficial opportunity for the company to grow (Coca Cola
Competitors Analysis : Are They Still Leading? - Business Chronicler, no date b)[].
2. Coca-Cola needs to innovate its products and marketing strategies to appeal to the changing
needs of consumers. This includes offering healthier beverages which have essential
nutrients, minimal-to-zero sugar, and flavour variety for health-conscious and diversified
consumer landscape as well as using digital marketing to reach a wider demographic.

3.4 Threats

1. Governments are tightening restrictions on sugary beverages to reduce obesity, which

poses a serious challenge to Coca-Cola. For example, the company is reportedly struggling
to increase revenue due to the sugar tax regulations in the UK [](Is Coca Cola Losing The
Battle In Emerging Markets?, no date).
2. As highlighted in the PEST analysis, there is a greater demand for healthier alternatives to
sugary drinks, this poses a challenge as the company needs to adapt its products. Further,
it is reported that Coca-Cola is struggling as they are facing a fruit-juice preference over
colas in India [](Is Coca Cola Losing The Battle In Emerging Markets?, no date).
3. Intense Competition: Coca-Cola faces intense direct competition from its rivals such as
PepsiCo, Nestle, and Dr Pepper Snapple. The company's rivals are large and well-
established companies with strong brands and distribution networks. Nevertheless, the
company faces indirect competition from Starbucks, Costa Coffee, Tropicana, Lipton
juices, and Nescafe (An Organisation Study On ‘THE COCA-COLA COMPANY’
Submitted to, no date).

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 Chapter 4: Market Segmentation, Target Market and Positioning

Market segmentation divides a larger market into distinct groups of customers with similar needs
or characteristics. This can be done with various factors taken into account, such as age, gender,
income, or location. The aim of market segmentation is to allow companies to target their services
or products more accurately to groups of customers who are more likely to be interested in what
they have to give.

4.1 Types of segments present in the market for Coco Cola

Coco Cola divides their market into different segments based on the customer needs and
preferences:

4.1.1 Demographics:

Coca Cola can segment the market by demographics such as age, gender, income, and education
level. For example, Coca Cola might target young adults with its energy drinks, or target families
with its soda products.

 Age: Young people are being targeted specifically between the ages of 10 – 35 years old.
For instance, a survey carried out by national Library of Medicine concluded that 54.3%
of adolescents consumed soft drinks at least once a day. (Yang et al., 2017)
 Gender: Coco Cola’s market has also been divided between genders. For example, they
target women by promoting Coco Cola light while men usually prefer Coke zero or thumbs
up due to their strong taste.

4.1.2 Income and Family Size:

They use different pricing strategies and sizes to target customers from different income
backgrounds and family sizes. (Yang et al., 2017)

4.1.3 Geographic:

Coca Cola is sold in nearly 200 countries around the world, so the company can segment the market
by region. Hence, they customize their products based on different cultures, customs, and climates.

8
For instance, Mexico is the world’s biggest consumer of Coco Cola consuming over 700 cups per
person in comparison to Kenya who consumes the least soft drinks.

4.1.4 Consumer behavior:

Coca Cola can segment the market by consumer behavior, such as brand loyalty, purchase
frequency, and product usage. For example, Coca Cola might target consumers who are loyal to
the Coca Cola brand or target consumers who purchase its products frequently.

4.2 Market Positioning

Market positioning is the process of creating a unique selling proposition for a product or service
through their offerings that would influence the perception of consumers and would help them
stand out from the competition.

Coca Cola position their drink as a refreshing and thirst-quenching drink which is perfect for those
who are looking for a pick-me-up. They affirm its quality and pleasure for customers while
ensuring it to be of premium quality. (Coca-Cola Segmentation, Targeting and Positioning |
EdrawMind, no date)

4.3 Recommendations

4.3.1 New Markets

Coco Cola should look for new opportunities to increase its market share, diversify its customer
base, and generate more sales. Entering emerging markets such as India, Brazil or Africa can be
an effective way to do this, as there are fewer competitors and potential areas of growth. By
tailoring their products and services to the local tastes and preferences of these markets, Coco Cola
can tap into a new consumer base and expand its reach. Additionally, they can investigate new
product offerings and capitalize on market trends.

4.3.2 Diversification of Product Portfolio

Coco Cola should diversify their product lineup to appeal to a wider customer base. They should
also offer a variety of flavors, new products such as energy drinks, teas and dairy-based drinks,

9
and different packaging options like cans, bottles and Tetra Packs. This will increase sales,
improve customer satisfaction, and help the company stay ahead of competitors.

4.3.3 Targeting New Segments of the Market

Coco Cola should focus on new segments of the market to target specific customer segments with
different needs. For example, health-conscious consumers, those seeking convenience, low-calorie
options, teenagers, and millennials. This could help increase their market share and gain a
competitive advantage.

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 Chapter 5: Marketing Mix

5.1 Product Strategy – Health-Conscious Consumers

As discussed in the PEST Analysis, the growing interest in living a healthy lifestyle has had a
major impact on the carbonated beverage industry, as consumers have been observed to shift
towards healthier beverage alternatives, such as water and sport drinks (Figure 1). The desire for
healthy living and increasing public awareness of the dangers of obesity linked to sugary and
carbonated drinks is the most significant social shift that has directly and significantly influenced
Coca-Cola's performance.

Coca-Cola’s current product strategy to overcome the increased health consciousness consists of
reformulating their classic soda into carbonated beverages which have significantly less sugar and
calories (Coke Zero) and into different bottle sizes (Coca Cola Marketing Strategy & Marketing
Mix (4Ps) | MBA Skool, no date). Furthermore, Coca-Cola has introduced a wide variety of
beverages in the recent years that are lower in calories and contain more healthful ingredients.
These include Dasani Sparkling Water, [] (DASANI® Sparkling Lemon, no date); Gold Peak Tea,
[](Gold Peak Tea | Nutrition Facts | Varieties | Coca-Cola Canada, no date); Zico Coconut Water;
and Glaceau Vitamin water, which a low-calorie flavored spring water with added vitamins and
minerals (GLACÉAU vitaminwater | Nutrition Facts & Ingredients | Coca-Cola GB, no date)[].
Hence, this strategy would help Coco Cola to overcome these issues related to health concerns to
an extent.

5.2 Product Strategy - Environmental Issues

Since Coca-Cola is a worldwide company, it faces different environmental factors regarding its
products. A main environmental issue that Coca-Cola causes is the massive number of plastics
used in manufacturing their products where a significant amount of these is not recovered and ends
up in the environment, most often in areas where waste is not gathered and sorted thus change in
climate is caused due to global warming. This issue has been a major problem for Coca-Cola up
to the point where it has been known as the biggest polluter in the world.

Coca-Cola can do some changes in its production to handle these environmental issues. For
instance, they can hire researchers to focus on finding a substitute material for plastic that would

11
be more environmentally friendly and doesn’t require a high energy supply to be manufactured.
Furthermore, they can create a team in each branch they got around the globe that aims on tracking
their used products and collecting them instantly to avoid them from winding up in untraceable
areas. Hence, they can be constantly recycled and reused instead of being lost and result into
harming the environment.

Coca-Cola company took into consideration the seriousness of this issue and since 2017 the Coca-
Cola Foundation has contributed more than 6 million USD to environmental initiatives with an
emphasis on reducing the effects of plastic pollution by recycling, collecting marine debris, and
water replenishment. (How does Coca-Cola help the environment? | Coca-Cola Australia, no date)

5.3 Product Strategy - Stringent Regulations

Concern of obesity, diabetes and other diseases linked to high sugar consumption has led
governments to introduce new laws and regulations on sugary products.

For instance, In 2019, Malaysia imposed a sugar tax of RM0.40/litre on beverages that exceed 5
grams/100ml to combat diet-related diseases. (Introduction To Malaysian Sugar Tax - Tax
Authorities - Malaysia, no date)

Coco Cola was able to reduce the size of their bottles of their high sugar content drinks and charged
higher prices while increasing the quantity of the low sugar content drinks for the same prices. For
instance, they replaced their sugary drink of 1.75L bottle with a 1.5L bottle and increased the price.
On the other hand, they also increased the size of their low sugar content drinks such as Coco Cola
Zero sugar from 1.75L to 2L which provided better value for customers to purchase these drinks.

(Soft drinks tax: All the facts | Ingredients, sugar and caffeine | Coca-Cola GB, no date)

5.4 Promotional Strategy - Competition

Coca-Cola is facing fierce competition from its rivals, particularly Pepsi. In recent years, Pepsi has
increased its market share of the global beverage market, while Coke has lost some of its share.
Other competitors in the industry include Dr. Pepper Snapple, Nestle, and Red Bull.

12
Coca-Cola invests heavily in promotional and advertising campaigns through TV, online ads, print
media, and sponsorships of events such as American Idol, BET Network, NASCAR, NBA, NCAA,
Olympic Games, and FIFA World Cup.(Coca Cola Marketing Strategy & Marketing Mix (4Ps) |
MBA Skool, no date)

For instance, In March 2016, Coca Cola launched “Taste the Feeling” Campaign in India, targeting
the youth with Bollywood superstar Sidharth Malhotra, to remind consumers of the joy Coke
brings.(Coca-Cola unveils new ‘Taste The Feeling’ campaign - Exchange4media, no date)

In 2021, Coco Cola spent USD$193 Million on advertising in the US, followed by PepsiCo & Dr
Pepper with USD$114 & USD$86 Million respectively. This high spending helps Coco Cola stand
out from its competitors.(Ad spend of beverage brands in the U.S. 2021 | Statista, no date)

13
 Chapter 6: References

Ad spend of beverage brands in the U.S. 2021 | Statista (no date). Available at:
https://www.statista.com/statistics/264985/ad-spend-of-selected-beverage-brands-in-the-us/
(Accessed: 13 December 2022).

An Organisation Study On ‘THE COCA-COLA COMPANY’ Submitted to (no date).

Coca Cola Competitors Analysis : Are They Still Leading? - Business Chronicler (no date a).
Available at: https://businesschronicler.com/competitors/coca-cola-competitors-analysis/
(Accessed: 13 December 2022).

Coca Cola Competitors Analysis : Are They Still Leading? - Business Chronicler (no date b).
Available at: https://businesschronicler.com/competitors/coca-cola-competitors-analysis/
(Accessed: 13 December 2022).

Coca Cola Marketing Strategy & Marketing Mix (4Ps) | MBA Skool (no date). Available at:
https://www.mbaskool.com/marketing-mix/products/16786-coca-cola.html#product (Accessed:
13 December 2022).

Coca Cola PESTLE Analysis | MBA Skool (no date). Available at:
https://www.mbaskool.com/pestle-analysis/companies/18043-coca-cola.html (Accessed: 13
December 2022).

Coca-Cola and Nike: Product Life-Cycle - 569 Words | Assessment Example (no date). Available
at: https://ivypanda.com/essays/coca-cola-and-nike-product-life-cycle/ (Accessed: 13 December
2022).

Coca-Cola Company - statistics & facts | Statista (no date). Available at:
https://www.statista.com/topics/1392/coca-cola-company/#topicOverview (Accessed: 13
December 2022).

Coca-Cola Company’s U.S. market share 2021 | Statista (no date). Available at:
https://www.statista.com/statistics/225388/us-market-share-of-the-coca-cola-company-since-
2004/ (Accessed: 13 December 2022).

14
Coca-Cola Marketing Strategy 2023: A Case Study | Simplilearn (no date). Available at:
https://www.simplilearn.com/tutorials/marketing-case-studies-tutorial/coca-cola-marketing-
strategy (Accessed: 13 December 2022).

CocaCola Revenue 2010-2022 | KO | MacroTrends (no date). Available at:

https://www.macrotrends.net/stocks/charts/KO/cocacola/revenue (Accessed: 13 December 2022).

Coca-Cola Segmentation, Targeting and Positioning | EdrawMind (no date). Available at:
https://www.edrawmind.com/article/coca-cola-segmentation-targeting-and-positioning.html
(Accessed: 13 December 2022).

Coca-Cola unveils new ‘Taste The Feeling’ campaign - Exchange4media (no date). Available at:
https://www.exchange4media.com/advertising-news/coca-cola-unveils-new-’taste-the-feeling’-
campaign-63751.html (Accessed: 13 December 2022).

DASANI® Sparkling Lemon (no date). Available at:

https://www.cokesolutions.com/products/brands/dasani-sparkling/lemon.html (Accessed: 13
December 2022).

Elfhag, K., Tynelius, P. and Rasmussen, F. (2007) ‘Sugar-sweetened and artificially sweetened
soft drinks in association to restrained, external and emotional eating’, Physiology and Behavior,
91(2–3), pp. 191–195. Available at: https://doi.org/10.1016/j.physbeh.2007.02.005.

GLACÉAU vitaminwater | Nutrition Facts & Ingredients | Coca-Cola GB (no date). Available at:
https://www.coca-cola.co.uk/brands/glaceau-vitaminwater (Accessed: 13 December 2022).

Gold Peak Tea | Nutrition Facts | Varieties | Coca-Cola Canada (no date). Available at:
https://www.coca-cola.ca/brands/gold-peak-tea (Accessed: 13 December 2022).

How does Coca-Cola help the environment? | Coca-Cola Australia (no date). Available at:
https://www.coca-colacompany.com/au/faqs/how-does-coca-cola-help-the-environment
(Accessed: 13 December 2022).

Introduction To Malaysian Sugar Tax - Tax Authorities - Malaysia (no date). Available at:
https://www.mondaq.com/tax-authorities/1088530/introduction-to-malaysian-sugar-tax
(Accessed: 13 December 2022).

15
Is Coca Cola Losing The Battle In Emerging Markets? (no date). Available at:
https://www.forbes.com/sites/greatspeculations/2016/08/04/is-coca-cola-losing-the-battle-in-
emerging-markets/?sh=4c7a4ba36526 (Accessed: 13 December 2022).

Israel’s attacks on Gaza are leading to Coca-Cola boycotts (no date). Available at:
https://qz.com/239722/israels-attacks-on-gaza-are-causing-coca-cola-boycotts (Accessed: 13
December 2022).

KO $63.27 (▲0.21%) Coca-Cola Co | Google Finance (no date). Available at:

https://www.google.com/finance/quote/KO:NYSE?sa=X&ved=2ahUKEwjn0snozMz7AhUVxT
gGHdrmDKYQ3ecFegQIJRAi (Accessed: 13 December 2022).

Macro Factors Affecting Coca Cola | Understanding The Market Process (no date). Available at:
https://understandingthemarketprocess.wordpress.com/macro-factors-affecting-coca-cola-2/
(Accessed: 13 December 2022).

Soft Drinks and Tooth Decay | Massachusetts Dental Society (no date). Available at:
https://www.massdental.org/Public/Oral-Health-Topics/Soft-Drinks-and-Tooth-Decay
(Accessed: 13 December 2022).

Soft drinks tax: All the facts | Ingredients, sugar and caffeine | Coca-Cola GB (no date). Available
at: https://www.coca-cola.co.uk/ingredients/reducing-sugar/lets-talk-about-soft-drinks-tax
(Accessed: 13 December 2022).

Sustainable Packaging | The Coca-Cola Company (no date). Available at: https://www.coca-
colacompany.com/sustainability/packaging-sustainability (Accessed: 13 December 2022).

Vartanian, L.R., Schwartz, M.B. and Brownell, K.D. (2007) ‘Effects of soft drink consumption on
nutrition and health: A systematic review and meta-analysis’, American Journal of Public Health,
pp. 667–675. Available at: https://doi.org/10.2105/AJPH.2005.083782.

Yang, L. et al. (2017) ‘Consumption of Carbonated Soft Drinks Among Young Adolescents Aged
12 to 15 Years in 53 Low- and Middle-Income Countries’, American Journal of Public Health,
107(7), p. 1095. Available at: https://doi.org/10.2105/AJPH.2017.303762.

16
 Chapter 7: Appendix

Figure 1: Beverage Consumption in the US

Figure 2: Coco Cola's Brand Value from 2006 to 2021

17
Figure 3: Revenues and Volume for the 3 months, Sept 30th 2022

Figure 4: Operating Income and EPS

Figure 5: Percentage Change

Source: https://www.coca-colacompany.com/

18