Marketing Management Assignment

UNITY UNIVERSITY
ADAMA CAMPUS
DEPARTMENT OF BUSINESS ADMNISTRATION
MBA PROGRAM
Course Title: Strategic Marketing Management

Group Assignment
BY:
Instructor: ______________ (Ph.D)

SUBMISSION DATE: JULY, 2024
ADAMA, ETHIOPIA
July 1, 2024 STRATEGIC MARKETING MANAGEMENT
Table of Contents
1. Introduction ............................................................................................................................. 1
1.1. History and Background Information .............................................................................. 1
1.2. Coca-Cola Target Audience: ............................................................................................ 2
1.2.1. Age: ........................................................................................................................... 2
1.2.2. Income and family size: ............................................................................................ 2
1.2.3. Geographical Division: ............................................................................................. 2
1.2.4. Gender: ...................................................................................................................... 2
1.3. Coca-Cola Marketing Channels: ...................................................................................... 3
1.3.1. Personal Channel: ..................................................................................................... 3
1.3.2. Non-Personal Marketing Channels: .......................................................................... 3
2. Coca-Cola Marketing Strategy: ............................................................................................... 4
2.1. Product strategy: ............................................................................................................... 4
2.2. Pricing strategy:................................................................................................................ 4
2.3. Location Strategy: ............................................................................................................ 5
2.4. Promotion Strategy:.......................................................................................................... 5
2.4.1. Classic Bottle, Font, and Logo:................................................................................. 6
2.4.2. Localized Positioning: Achieving Success through the „Share a Coke‟ Campaign . 7
2.4.3. Sponsorships ............................................................................................................. 7
2.4.4. Social Media ............................................................................................................. 8
3. Marketing Environment Analysis (SWOT analysis) ............................................................... 8
3.1. Strength ............................................................................................................................ 9
3.1.1. Billion-Dollar Brands................................................................................................ 9
3.1.2. Comprehensive Bottling and Distribution System ................................................... 9
3.1.3. Cost Efficiency........................................................................................................ 10
3.2. Weakness ........................................................................................................................ 10
3.2.1. Legal Issues ............................................................................................................. 10
3.2.2. Business Performance: Bottling Investments ......................................................... 11
4. Marketing Strategies Available to the Company ................................................................... 11
4.1. W-O Strategies ............................................................................................................... 11
4.2. W-T Strategies................................................................................................................ 14
5. Conclusion ............................................................................................................................. 16
Reference ...................................................................................................................................... 17
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Group Assignment on Evaluation of Coca-Cola Company Marketing Strategy
1. Introduction
1.1. History and Background Information
The history of Coca-Cola Company as portrayed by Retroplanet (2008) that, it was first invented
by John Stith Pemberton in 1886 as a drink meant to impart good health and stamina. The trade
mark “coca-cola” was registered in the US patent office on January 31, 1893.Candler constantly
grow the business with persuasive advertising and distributing thousands of free drinks coupons.
In 1894 the popular drink was sold in bottles for the first time. Beginning in 1899, independent
bottling companies were licensed to bottle the drink, a practice that is still in use today by US
soft drink industry. Introduced more than 120 years back, Coca-Cola is still the most sipped soda
worldwide, with a staggering 1.9 billion servings daily spanning 200+ countries.
It must be stressed that Coca-Cola is a leading manufacturer, distributor and marketer with a
various valuable and recognizable brands on both sparkling and still beverages. The brand has
always been enthusiastic about engaging customers more effectively. The robust Coca Cola
Marketing Strategy has been able to invigorate the masses over the years, ranking as the world's
largest manufacturer and licensor of 3,500 nonalcoholic beverages. According to Forbes (2017),
Coca-Cola maintained its place at the top of the food and beverage industry, enlisted in place
#86. Furthermore, based on Business Insider (2017), of all beverages consumed every day
around the world, Coca-Cola products preserve the 3.1% not to mention that the logo is
recognizable by 94% of the world‟s population.
Coca-Cola‟s enduring appeal and its steadfast presence as a global beverage leader serve as
testament to the enduring power of its marketing strategy. Briefly, Coca-Cola believes in a high-
level mission with long-term vision implementation focusing on customers‟ needs. It is
important to be told that for several years Coca-Cola inspires consumers through the promotional
phrase “Success is not a destination, but a journey” (Coca-Cola, 2017). Coca Cola created a
famous advertising slogan that is still used in the company‟s advertisements which is „‟the pause
that refreshes”; the slogan first appeared in the year of 1929 (Coca Cola Company, About Us:
Coca-Cola History, 2019). Today Coca-Cola is the largest beverage company in the world,
providing to consumers more than 500 sparkling and nearly 3.900 beverage choices (Coca-Cola,
2017). In order to evaluate the marketing strategy adopted by Coca-Cola Company we used
SWOT analysis and SWOT matrix table to understand available marketing strategies that were
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used by the company. The resources used in this evaluation are duly acknowledged on the
reference part of the paper.
1.2. Coca-Cola Target Audience:

Coca-Cola boasts enormous brand recognition, and one of the key factors in its success is its
careful approach to target audience segmentation.
1.2.1. Age:
Firstly, the company strategically targets youth in the age group of 10 to 35 years. To capture
this demographic, Coca-Cola leverages celebrity endorsements in its advertisements and
conducts promotional campaigns within universities, schools and colleges.
Additionally, Coca-Cola also appeals to middle-aged and older adults who are health-conscious
or suffer from diabetes by offering products such as Diet Coke.
1.2.2. Income and family size:
Coca-Cola adopts a diversified pricing strategy, offering packaging and sizes with different price
points. This approach aims to increase affordability and cater to a wide range of consumers,
including students, middle-class families, and low-income individuals and small families.
Coca-Cola‟s astute understanding of its target audience and ability to tailor its marketing efforts
accordingly has been instrumental in maintaining its enduring global popularity.
1.2.3. Geographical Division:
Coca-Cola‟s global presence is underlined by a deep awareness of the diversity in cultures,
customs and climates in different regions. Brands adapt their marketing strategies to address
these differences. For example, in the United States, Coca-Cola is popular among older
demographics, demonstrating its appeal to different age groups. This adaptability allows the
company to effectively target different sections of the population.
Additionally, Coca-Cola adapts its products to regional preferences. For example, the Asian
version tends to be sweeter than those from other countries, acknowledging different taste
preferences.
1.2.4. Gender:
Coca-Cola also tailors its marketing efforts to gender demographics, recognizing that different
products may appeal more to specific gender groups:
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 Coca-Cola Light is often preferred by women, indicating a lighter, more calorie-

conscious option that meets their preferences.
 On the other hand, Coke Zero and Thums Up are preferred by men due to their stronger
and stronger flavor profiles to suit their taste preferences.
This thoughtful approach to gender-specific marketing ensures that Coca-Cola‟s products
connect effectively with a broad spectrum of consumers, further strengthening its global market
presence.
1.3. Coca-Cola Marketing Channels:
Coca-Cola‟s marketing strategy has evolved over time, transitioning from an undifferentiated
targeting approach to a more localized and personalized approach. Companies effectively
employ two basic categories of marketing channels: personal and non-personal.
1.3.1. Personal Channel:
Coca-Cola leverages personal channels for direct communication with its audience. This
approach allows for a more intimate and one-on-one relationship with consumers, increasing
engagement and brand loyalty.
1.3.2. Non-Personal Marketing Channels:
Coca-Cola also uses non-personal marketing channels, which include both online and offline
media. These channels serve as powerful tools for reaching a wider audience and include:
 Newspaper: Traditional print media to reach a wide readership.
 Publicity Campaign: Marketing campaign customized to generate buzz and attract
consumers.
 Events: Attending or organizing events to engage directly with customers.
 Television: High-impact visual advertising on television networks.
 Posters: Attractive visuals displayed at strategic locations.
 Email: Using email marketing for personal communication.
 Webpages: Maintaining an online presence with informative and interactive websites.
 Leaflet: Printed material distributed to provide information and publicity.
 Billboard: Large scale outdoor advertising for high visibility.
 PR Activities: Public relations efforts to maintain a positive brand image.
 Social Media: Connecting with consumers through popular social media platforms.
 Magazines: Advertising and feature placement in various publications.
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 Radio: The use of audio advertising for auditory engagement.

Coca-Cola‟s use of personal and non-personal marketing channels reflects its adaptability in
engaging with diverse audiences across various platforms, thereby ensuring a broad and
sustainable brand presence.
2. Coca-Cola Marketing Strategy:

A uniquely formulated Coca Cola marketing strategy is behind the company's international reach
and widespread popularity. The strategy can be broken down into the following:
2.1. Product strategy:
Coca-Cola boasts of an extensive product portfolio, comprising approximately 500 distinct
products. These soft drinks are distributed globally and are strategically positioned within a
broad marketing mix. Branded beverages, such as Coca-Cola, Minute Maid, Diet Coke, Coca-
Cola Light, Coca-Cola Life, Coca-Cola Zero, Sprite, Fanta and more, are available in a variety of
sizes and packaging options. , , This wide product range not only achieved a significant market
share, but also generated substantial profits, allowing Coca-Cola to cater to a broad spectrum of
consumer preferences and tastes.
Figure 1: Coca-Cola Products
Source: (https://wafflebytes.com/blog/marketing-strategy-of-coca-cola: Accessed June 2024)

2.2. Pricing strategy:
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Coca-Cola‟s pricing strategy has evolved significantly over the years. While the company
famously maintained a fixed price of five cents for nearly 73 years, it had to adapt to changing
market dynamics and increasing competition, particularly from rivals such as Pepsi. Coca-Cola
now adopts a flexible pricing strategy that strikes a delicate balance. This avoids steep price
drops that could weaken perceptions of product quality, while also avoiding unreasonable price
increases that could push consumers toward alternatives. The goal of this strategy is to ensure
both affordability and perceived value to customers.
2.3. Location Strategy:
Coca-Cola boasts of a wide distribution network that extends its reach to every corner of the
world. The company is organized into six operating regions: North America, Latin America,
Africa, Europe, Pacific and Eurasia. Within this framework, Coca-Cola‟s bottling partners play a
key role in the manufacturing, packaging and shipping of its products to agents. These agents are
responsible for transporting products by road to stockiest, then to distributors and finally to
retailers, thereby ensuring wide availability to consumers.
Figure 2: Coca-Cola‟s Global Marketing
Coca-Cola‟s commitment to sustainability is also evident in its extensive reverse supply chain
network, which facilitates the collection and reuse of glass bottles. This sustainable practice not
only reduces environmental impact but also contributes to cost efficiency and resource
conservation, thereby enhancing the brand‟s reputation and global market presence.
2.4. Promotion Strategy:
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To thrive in the fiercely competitive market, Coca-Cola deploys a diverse range of promotional
and marketing strategies. Annually investing up to $4 million in brand promotion, the company
leverages a combination of traditional and international advertising channels to effectively reach
its target audience. These strategies not only reinforce Coca-Cola‟s brand identity but also help it
maintain a strong market presence amidst intense competition.
2.4.1. Classic Bottle, Font, and Logo:

Coca-Cola‟s iconic bottle, font, and logo have played a pivotal role in establishing its distinctive
brand identity. Here‟s a closer look at this integral aspect of Coca-Cola‟s marketing strategy:
Figure 3: Coca-Cola‟s Gripping Advertisements
 Bottle Design: Coca-Cola organized a global contest to design its now-famous bottle.
The winning design drew inspiration from the cocoa pod‟s shape, and this unique bottle
shape became a focal point in the brand‟s marketing efforts.
 Logo: Coca-Cola‟s logo, written in the elegant Spencerian script, sets it apart from its
competitors. This distinctive typography is not only visually appealing but also deeply
memorable. The brand strategically uses its logo in its marketing strategy to ensure it
leaves a lasting imprint on consumers‟ minds.
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Coca-Cola‟s commitment to maintaining the integrity of its classic bottle, font, and logo serves
as a testament to the enduring power of consistent branding and design in the world of
marketing.
2.4.2. Localized Positioning: Achieving Success through the

‘Share a Coke’ Campaign
Launched in 2018 across nearly fifty countries, the „Share a Coke‟ campaign has emerged as a
resounding success story. By featuring images of local celebrities and crafting messages that
resonate with the local language and culture in each respective region, this campaign effectively
targets and engages with the local market.
Figure 4: Coca-Cola Advertisement Featuring Celebrities

2.4.3. Sponsorships
The company is a well-recognized brand for its sponsorships, including American Idol, the
NASCAR, Olympic Games, and many more. Since the 1928 Olympic Games, Coca-Cola has
partnered on each event, helping athletes, officials and fans worldwide.
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Figure 5: Coca-Cola as Official Olympics Partner

2.4.4. Social Media
In line with the ever-evolving technological landscape, social media and online communication
channels have assumed paramount importance within the framework of Coca-Cola‟s marketing
strategy. The company actively leverages various online digital marketing platforms including
Facebook, Twitter, Instagram, YouTube and Snapchat to disseminate a rich array of content
including images, videos and more. Key components of Coca-Cola‟s marketing strategy in the
digital sphere include SEO, email marketing, content marketing and video marketing.
Figure 6: Coca-Cola‟s Instagram Posts

3. Marketing Environment Analysis (SWOT analysis)
How marketing environment factors of SWOT analysis affect Coca-Cola’s 4Ps
An enterprise is like an open system that is constantly influenced by various environmental
factors in order to increase or decrease the quality of strategic decision-making. Thus, these
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factors should be considered in depth for long-term brand reputation by the powerful SWOT
(Strengths, Weaknesses, Opportunities, and Threats) analysis. The Coca-Cola Company (Coca-
Cola) is a global beverage manufacturing company. Billion-dollar brands, a comprehensive
bottling and distribution system, and cost efficiency are the company‟s major strengths, whereas
legal issues and the business performance of bottling investments remain major areas of concern.
In the future, intense competition, stringent regulations and water scarcity could affect the
company‟s business operations. However, growth in soft drinks consumption, tax reform in the
US, responding to socio-cultural trends and the VEB business unit are likely to provide further
growth opportunities.
3.1. Strength
3.1.1. Billion-Dollar Brands
Coca-Cola is a leading beverage company serving consumers worldwide. The company has over
500 brands in its portfolio including 21 billion-dollar brands, which support the launch of new
products and the company's foray into new markets. The company‟s billion-dollar brands
comprise Coca-Cola, Sprite, Fanta, Diet Coke/Coca-Cola Light, Coca-Cola Zero, Minute Maid,
Georgia Coffee, Powerade, Del Valle, Schweppes, Aquarius, Minute Maid Pulpy, Dasani,
Simply, vitaminwater, Gold Peak, Fuze Tea, Ice Dew, smartwater, I LOHAS, and Ayataka. The
Coca-Cola brand was created in 1886 in Atlanta, Georgia. It has a presence in more than 200
countries. Fanta was introduced in 1940, and is the second largest brand outside the US, with
consumption totaling more than 130 million times on a daily basis. Sprite is a lemonlime
flavored soft drink launched in 1961 and ranked as the No. 3 soft drink worldwide. Diet Coke
was introduced in 1982 as Coca-Cola light, and is now available in more than 185 markets
worldwide. Launched in 2005, Coke Zero has presence in more than 150 countries. Georgia
Coffee is the No. 1 ready-to-drink coffee brand in Japan that offers more than 100 varieties of
cold and hot coffees in nine countries.
3.1.2. Comprehensive Bottling and Distribution System
Coca-Cola has one of the most comprehensive bottling and distribution systems in the world.
The company has an operating network, which comprises company-owned or -controlled
bottling and distribution operations, independent bottling partners, distributors, wholesalers and
retailers spread over 200 countries. The company manufactures and sells beverage concentrates
and finished sparkling soft drinks. In FY2017, the company generated 51% of its revenue from
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concentrate operations and remaining 49% from finished products operations. In addition, the
company has five of the largest bottling partners: Coca-Cola FEMSA, Coca-Cola European
Partners, Coca-Cola HBC, Arca Continental, and Swire Beverages. In FY2017, these bottling
partners represented 41% of total unit case volume. As of December 2017, Coca-Cola operated
48 manufacturing facilities worldwide, of which 44 are owned. It also owned 32 principal
beverage concentrate and/or syrup manufacturing plants. In FY2017, Coca-Cola operated 185
principal beverage distribution warehouses.
3.1.3. Cost Efficiency
The company reported improvement in cost efficiency during the review period. Coca-Cola‟s
operating cost as a percentage of sales stood at 78.8% in FY2017 compared to 82.4% in FY2016.
The improvement was due to a decline in operating expense by 19.1% from US$34.5 billion in
FY2016, to US$27.9 billion in FY2017. The decline in operating expenses was due to a decrease
in selling, general and administrative expenses by 18% to US$2.8 billion in FY2017, reflecting
the impact of divestitures. It was also due to a decrease in other operating expenses by 13.1% to
US$5.1 billion, which showcases savings from productivity and reinvestment initiatives, and a
decline in net periodic benefit cost. The improvement in cost to sale ratio resulted in
improvement in operating margin. Operating margin increased to 21.2% in FY2017 from 17.6%
in FY2016. Operating income increased by 1.8% from US$7.4 billion in FY2016, to US$7.5
billion in FY2017.
3.2. Weakness
3.2.1. Legal Issues
Lawsuits could result in huge penalties thereby increasing the company‟s operating costs. Coca-
Cola has been a defendant in several lawsuits. In January 2017, non-profit firm Praxis Project
filed a lawsuit against the company and the American Beverage Association (ABA) in a district
court of California over deceptive marketing of sugar-based beverages. In its lawsuit, Praxis
alleged that both Coca-Cola and ABA ran advertisements saying that drinking soda can boost the
energy levels. Praxis further alleged that the company and ABA violated the federal Fair
Advertising Law and misled the customers about the health implications of sugary drinks, as
studies found that they could lead to type 2 diabetes and other diseases. In April 2016, Coca-Cola
reached a settlement deal with the Center for Science in the Public Interest (CSPI) in a class
action lawsuit related to marketing of its Glaceau Vitaminwater line of drinks. In its lawsuit,
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originally filed in 2009, CSPI alleged that Coca-Cola and its subsidiary Glaceau made false
claims about health benefits of sugary drinks. As part of the settlement, Coca-Cola should mark
„added sugars‟ to the label of Glaceau Vitaminwater products.
3.2.2. Business Performance: Bottling Investments
The Bottling Investments segment‟s revenue declined from US$19.7 billion in FY2016 to
US$10.5 billion in 2017, representing a decrease of 46.3%. The decline was due to a 41% fall in
unit case volume of Bottling Investments owing to the reduction in refranchising activities in
North America and China. As a result the company‟s total revenue declined by 15% from
US$41.9 billion in FY2016 to US$35.4 billion in FY2017.
4. Marketing Strategies Available to the Company
To develop strategies that take into accounts the SWOT profile, a matrix of these factors can be
constructed the SWOT matrix
Table 1: SWOT matrix
Strength Weaknesses
Opportunities S-O strategies W-O strategies
Threats S-T strategies W-T strategies
 S-O strategies: pursue opportunities that are a good fit to the company‟s strategies
 W-O strategies: overcome weakness to pursue opportunities
 S-T strategies: identify ways that the firm can use its strength to reduce its vulnerability
to external threats
 W-T strategies: establish a defensive plan to prevent the firm‟s weaknesses form making
it highly susceptible to external threats.
4.1. W-O Strategies
There are weaknesses that make the company not to be competitive and have opportunities. In
this section we look in weakness and opportunity that suggest available Marketing strategies to
the company.
Table 2: Weakness and Opportunities (W-O) strategies
Weakness and opportunities of Coca-Cola Company
Weakness Opportunities
 Legal Issues: Tax Reform in the US
The Company faced several  The impact of tax reform in the US is expected to
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Lawsuits issues about its give a fresh boost to the company‟s business. The
products and advertisement that tax reform bill is likely to allow business entities in
could result in huge penalties the country more flexibility in terms of managing
resources, and particularly cash resources around the
thereby increasing the
globe and lower the cost of capital in the US. This
company‟s operating costs as new scenario could attract more investment in
we discussed above. coming years on business in the country. In
December 2017, the US government passed The Tax
Cuts and Jobs Act (Tax Reform Act) bill. The new
bill slashed the corporate tax rate to a flat rate of
21%, a drastic fall from its previous maximum
corporate tax rate of 35%. Furthermore, the new law
eliminates the special corporate tax rate on personal
service corporations (PSCs). It also lowers the 80%
dividends received deduction (for dividends from
20% owned corporations) to 65% and the 70%
dividends received deduction (for dividends from
less than 20% owned corporations) to 50%. The new
rate is effective from January 2018. The new law
also repeals the alternative corporate tax on net
capital gain. According to the Joint Committee on
Taxation‟s (JCT‟s) estimates, the new law reflects a
net tax cut of approximately US$1.456 trillion over
the 10-year budget window. The reduction in
corporate tax rate is intended to make the US tax rate
more competitive other countries, and is likely to
enhance the profitability of companies such as Coca-
Cola. The company intends to use the benefits of tax
reform to repay debt and also return cash to
shareowners. The new tax reform will also provide
Coca-Cola more efficiency and flexibility in cash
management as business decisions are less impacted
by tax considerations.
Responding To Socio-Cultural Trends
 Growing trends surrounding societal concerns,
attitudes, and lifestyles are important to consumers.
For instance, in the US and Europe, people are
becoming more focused on healthy lifestyles. The
trend is causing the industry‟s business environment
to change as firms differentiate their products in
order to increase sales in a stagnant market. Coca-
Cola has already implemented this in several
markets, both through innovation of its own products
and the acquisition of existing brands. This trend is
continuing across emerging markets as well. For
example, the company launched new varieties under
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its Minute Maid brand including Anar, Pulpy

Mosambi and Pulpy Santra in the Indian market in
2017. Moreover, its subsidiary Coca-Cola Nigeria
Limited launched new variants to its 5Alive brand
such as the 35cl 5Alive Apple, 35cl 5Alive Tropical
fruit and the 85cl 5Alive Pulpy Orange.
 Business Performance: Acquisitions
Bottling Investments  Strategic acquisitions help the company to expand
As the Bottling Investments its business operations. In October 2017, the
segment‟s revenue declined, the company acquired a 54.5% equity stake in Coca-
company revenues also declined Cola Beverages Africa (CCBA) from Anheuser-
by 15% as of 2018. Busch InBev (AB InBev) for US$3.15 billion. As
part of the transaction, Coca-Cola acquired AB
InBev‟s stake in bottling operations in Zambia,
Zimbabwe, Botswana, Swaziland, Lesotho, El
Salvador and Honduras. In March, the company and
its bottling partners in Latin America, Coca-Cola
FEMSA, acquired Unilever‟s soy drink business,
AdeS, which has extensive presence in Brazil,
Mexico, Argentina, Uruguay, Paraguay, Bolivia,
Chile and Colombia. The acquisition is also
expected to augment the market presence of Coca-
Cola in Latin America. In June 2016, the company‟s
Venturing and Emerging Brands unit acquired a
minority stake in Aloe Gloe, a certified manufacturer
of organic, non-GMO, kosher, and gluten free aloe-
based beverages. The acquisition was part of the
company‟s shift in focus towards entering the
emerging market segment for plant-based beverages.
VEB Business Unit
 Coca-Cola‟s Venturing & Emerging Brands (VEB)
business unit focuses on identifying and nurturing
brands with billion-dollar potential. VEB brands
generate about US$1.8 billion in retail sales for
Coca-Cola. Brands under this unit include Blue Sky,
Core Power, Fair Life, Hansen‟s, Honest Tea,
Hubert‟s, Illy, Peace Tea, Suja, Tum-E Yummies,
Zico and Investments. Each brand under VEB runs
through four phases of growth including
experimentation, proof of concept, pain of growth
and scale to win. The UScentric unit consists of
retailers, bottlers, investors, consumers and
communities as partners, and is created to identify
brands poised for market disruption and innovate at
a faster speed. VEB, which is supported by
consumer agencies like First Beverage Group and
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Ypulse, plays four core roles at Coca-Cola including

futurist, investor, incubator and integrator. VEB‟s
initial investment in Honest Tea, currently a fast-
growing tea brand of Coca-Cola in the US, resulted
in a full-on acquisition. In October 2017, CocaCola
North America acquired Topo Chico, one of the
popular sparkling water brands in the US, especially
in Texas. The fast-growing brand is currently sold in
Northern Mexico and in 35 states across the US.
Source: www.marketline.com\The Coca-Cola Co Aug, 2018 Accessed June 2024)
Note: as it is seen on Table 2 there are weaknesses that the company has and also there are
Opportunities Company faces. By using W-O strategies overcome weaknesses were pursue
opportunities.
4.2. W-T Strategies
There are weaknesses that make the company not to be competitive and have opportunities in
which the company could. In this section we look in weakness and treats of the company
establish a defensive plan to prevent the firm‟s weaknesses.
Table 3 Weakness and Threats (W-T) strategies analysis
Weakness and Threat of Coca-Cola Company
Weakness Threat
Water management Water Scarcity Could Impact Profitability
concerning consumption and  Water is the main ingredient in substantially all of
pesticides the company‟s products. Rapid population growth
and continued pollution of existing freshwater
sources have created water shortages in nearly every
country. According to the United Nations, about 1.2
billion people, or almost one-fifth of the world's
population, live in areas of physical scarcity, and
500 million people are approaching this situation.
Another 1.6 billion people, or almost one quarter of
the world's population, face economic water
shortage. According to the United Nations, by 2030,
the world will face nearly 40% of short fall in water
supply. As a result, the company may incur
increasing production costs or face capacity
constraints, which could adversely affect its
profitability in the long run.
Legal Issues Stringent Regulations
 The company's business operations are subject to the
rules and regulations of the Food and Drug
Administration (FDA) and other federal, state and
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local health agencies regarding production and

marketing of beverages. The FDA also regulates the
labeling of containers under The Nutrition Labeling
and Education Act of 1990. Similarly under one
such law in California, known as Proposition 65, if
the state has determined that a substance causes
cancer or harms human reproduction, a warning
must be provided for any product sold in the state
that exposes consumers to that substance. If the
company is required to add Proposition 65 warnings
on the labels of its beverage products produced for
sale in California, the resulting consumer reaction to
the warnings and possible adverse publicity could
negatively affect the company‟s sales both in
California and in other markets. Thus, significant
additional labeling or warning requirements or
limitations on the marketing or sale of company‟s
products may inhibit performance.
Strong competition with Pepsi Intense Competition
 The non-alcoholic beverage industry is highly
competitive. The competitors of the company
include bottlers and distributors of nationally and
regionally advertised and marketed products, and
bottlers and distributors of private label beverages.
The key factors influencing the competition in the
non-alcoholic beverage industry include point-of-
sale merchandising, new product introductions, new
vending and dispensing equipment, packaging
changes, pricing, price promotions, product quality,
retail space management, customer service, and
frequency of distribution and advertising. Key
competitors include PepsiCo, Inc, Nestle SA,
Danone SA, The Kraft Heinz Co, Mondelez
International, Inc., National Beverage Corp.,
ConAgra Brands, Inc, Unilever PLC and Dr Pepper
Snapple Group. Due to intense competition from
various players, the company may be forced to
increase its spending on advertising and promotions
or reduce prices which may lead to reduced profits.
 The level of competition has been increasing due to
the strategic growth initiatives taken by competitors.
For example: in Jan 2018, PepsiCo signed a
partnership agreement with bottling partner Varun
Beverages LTD (VBL) to sell and distribute the
entire range of Tropicana juices, Gatorade and
Quaker Value-Added Dairy. As part of this
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agreement, PepsiCo along with VBL's contiguous

reach can double its distribution network across
north and east India, which account for 80% of the
juice market of the country
Source: www.marketline.com\The Coca-Cola Co Aug, 2018 Accessed June 2024)
Note: as it is seen on Table 3 there are weaknesses that the company has and also there are
threats the company faced. W-T strategies the company established defensive strategies that
prevent the firm‟s weaknesses from making it highly susceptible to external threats.
5. Conclusion
In a conclusion Coca-Cola has a large number of loyal customers, who can quickly identify their
unique tastes and find it difficult to replace them. The brand of Coca-Cola is not only recognized
by the majority of consumers, but also recognized by distributors all over the world. At present,
Coca-Cola has a huge market share in more than 200 countries and regions. There are two major
key enterprises in the Coke industry, and Coca-Cola still maintains its top position as the obvious
winner. According to the SWOT analysis above, the internal advantages of Coca-Cola can be
seen from its unique brand logo, iconic logo, classic red and white color, and world-renowned
advertising slogan. As of the weakness side of the company Water management concerning
consumption and pesticides, legal issues that different organizations filed a lawsuit against the
company and moreover Product diversification that face strong competition from Pepsi-Cola
were the major. For instance, Coca-Cola's non-beverage products are less diversified. Pepsi has
introduced a number of snacks, such as Kool, and Coke has lagged behind in this segment. From
the SWOT analysis above, it can be seen from the external strategic threat factors of Coca-Cola
that carbonated drinks cause two serious health problems -- obesity and diabetes, which have
been criticized for a long time.
With the SWOT matrix we have made on the above table, we have seen that how Coca-Cola
Company overcomes the weakness side and stay competitive enough and the leading company in
beverage industries around the world. Moreover, according to (Cheptegei & Yabs, 2016) Coca-
Cola Company implements various marketing strategies to support its global marketing: R&D
and Innovation: Large investments in research and development to create new products, expand
portfolios, and maintain competitiveness, Market Diversification, Partnerships and Alliances,
Global Promotion: utilizing creative advertising and a strong brand image strategy to reach
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consumers in various parts of the world, Investment in Infrastructure: Building production and
distribution infrastructure in various regions to ensure product availability with high efficiency.
In our evaluation we have understand that those marketing strategies allowed Coca-Cola to
expand its global reach, approach local markets with an adaptive strategy, and strengthen its
brand position globally. Our opinion is supported by Panagiotopoulou, (2020) who stated that
determining the right marketing strategy plays an important role in the implementation of global
marketing, from a marketing plan that effectively generates customer value and establishes
profitable relationships. Also this argument is supported by Cheptegei & Yabs, (2016) through
this marketing strategy, Coca-Cola succeeded in expanding its business operations both in terms
of distribution, product innovation, and building a strong brand image globally.
Reference
Business Insider 2011. 15 Facts About Coca-Cola That Will Blow Your Mind. [ONLINE]
Available at: http://www.businessinsider.com/facts-about-coca-cola-2011- 6.
Cheptegei, D. K., & Yabs, DJ (2016). Foreign Market Entry Strategies Used By Multinational
Corporations in Kenya: a Case of Coca Cola Kenya Ltd. European Journal of Business
and Strategic Management,1(2),71–85.
Coca Cola. (2019). Business resilience and risk management. Retrieved from Coca Cola:
https://coca-colahellenic.com/en/about-us/business-resilience-and-riskmanagement/risk-
management-process/
Coca-Cola. 2017. Coca-Cola At A Glance: Infographic. [ONLINE] Available at:
http://www.coca-colacompany.com/our-company/infographic-coca-cola-at-aglance.
https://wafflebytes.com/blog/marketing-strategy-of-coca-cola: Accessed June (2024)
Panagiotopoulou, V. (2020). Master in Business Administration (MBA) Module: MBA 61 |
Marketing AcademicDirector :ChristinaChristou.January.
Retroplanet(2008). a brief history of the coca cola company (online): available at:
http://zimbio.com/coca-cola/article.
www.marketline.com\The Coca-Cola Co Aug, 2018 Accessed June 2024)
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1.2. Coca-Cola Target Audience:

 Coca-Cola Light is often preferred by women, indicating a lighter, more calorie-

 Radio: The use of audio advertising for auditory engagement.

2. Coca-Cola Marketing Strategy:

Figure 1: Coca-Cola Products

Source: (https://wafflebytes.com/blog/marketing-strategy-of-coca-cola: Accessed June 2024)

Figure 2: Coca-Cola‟s Global Marketing

Source: (https://wafflebytes.com/blog/marketing-strategy-of-coca-cola: Accessed June 2024)

2.4.1. Classic Bottle, Font, and Logo:

Source: (https://wafflebytes.com/blog/marketing-strategy-of-coca-cola: Accessed June 2024)

2.4.2. Localized Positioning: Achieving Success through the

Source: (https://wafflebytes.com/blog/marketing-strategy-of-coca-cola: Accessed June 2024)

Figure 5: Coca-Cola as Official Olympics Partner

Source: (https://wafflebytes.com/blog/marketing-strategy-of-coca-cola: Accessed June 2024)

Source: (https://wafflebytes.com/blog/marketing-strategy-of-coca-cola: Accessed June 2024)

its Minute Maid brand including Anar, Pulpy

Ypulse, plays four core roles at Coca-Cola including

local health agencies regarding production and

agreement, PepsiCo along with VBL's contiguous

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