Competitive Strategy for Coca-Cola Company- myassignmenthelp

Question: Discuss about theCompetitive Strategy for Coca-Cola Company. Answer: Introduction Established in 1886, the Coca-Cola Company is one of the unique and oldest brands in the sector of carbonated soft drink. Along with the most guarded secret in the history of world business, Coca-cola has grown as a corporation over almost two centuries. Spread over almost all the countries except Cuba and North Korea, Coca-cola has achieved a status, which was unimaginable for a soft drink company before its genesis. Among PepsiCo, Cott, Faygo, Dr. Pepper Snapple Group and Jones Soda; Coca-Cola remains favourite due to its innovative marketing strategies, secret ingredient and most importantly variety of products it offers (De Mooij 2013). Adaptation The key to win over the global market is the ability to adapt according to various economic and geographical boundaries. Coca-cola sells its products in the major cities of US and Europe in one hand, whereas on the other hand it has also set its foot in the interiors of Africa and other third world nations. The soft drink company has implied of strategy of recycling of the packaging material, distribution of dealership to the local dealers and has even deducted the cost of packaging from its sell price in order to allure the consumers in Africa. The sales of a soft drink company depend on four basic factors; availability, visibility, cooling and range in all economies (developed or emerging economies). The per-capita profit of Coca-cola products is low in the third world countries (Company et al., 2017). Coca-cola tries to create a connection between the brands and the consumers through various marketing strategies. The Coca-Cola Company has 900 production units for liquid and bottli ng plants, which explains its strong distribution system around the world. Coca-cola also spends about a 20 percent of their total budget in advertising in order to hold their market share. Aggregation The Coca-Cola Company has one of the best distribution systems across the world. The company had contracts with the food chains like Mc Donalds and Dominos as a part of the selling strategy around the world. As these two restaurant chains are spread over all the major cities around the world, Coca-Cola has used this strategy to reach its consumers and allure new among them. The structure of the company is subdivided into five geographical areas; North America, Latin America, Middle East and South Asia, Eastern and Central Europe and Africa (it contains 50 countries) (The Coca-cola Company 2017). The plants of Coca-cola are located all around the world in order to smoothen the supply chain. The corporation has also sponsored world events like FIFA World cup, Tour de France and Copa America as a global strategy to aggregate and increase the number of customers (Bhasin 2017). Arbitrage After Coke took over Parle in 1994 it took the advantage over Pepsi, as it got access to two hundred thousand of Parles retail outlets and 60 bottlers (Brandwatch 2017). The market shares of Coke reached upto about 60 percent after Parles inclusion in compared to Pepsis 26% in countries like India. . For cheaper labour it has running industrious units in India and China which also addresses and acts as a supply source in the large market of South Asia. This cuts down the cost of these products. Conclusion 75% of Cocacolas sales is dependent on soda in compared to 50% of Pepsi Co. per-capita drink consumption has reportedly decreased over the last decade (NASDAQ.com. 2017). Therefore, this is an alarming situation for Cocacola. Cocacola is building on its strategy of doing well outside US and make their US propositions better whereas Pepsi Co. has an edge over Coca-cola in the US. References De Mooij, M., 2013.Global marketing and advertising: Understanding cultural paradoxes. Sage Publications. Bhasin, H. (2017).Marketing strategy of Coca cola - Coca cola strategy. [online] Marketing91. Available at: https://www.marketing91.com/marketing-strategy-of-coca-cola/ [Accessed 22 May 2017]. Brandwatch. (2017).Coke vs Pepsi: Market Share Analysis on Social. [online] Available at: https://www.brandwatch.com/blog/the-coke-vs-pepsi-social-presence-showdown/ [Accessed 22 May 2017]. NASDAQ.com. (2017).Coke Vs. Pepsi: By The Numbers. [online] Available at: https://www.nasdaq.com/article/coke-vs-pepsi-by-the-numbers-cm337909 [Accessed 22 May 2017]. 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[online] The Coca-Co la Company. Available at: https://www.coca-colacompany.com/our-company/the-coca-cola-system [Accessed 22 May 2017]. The Coca Cola Company. (2017).Distribution and global adaptation. [online] Available at: https://cocacolageoassignment.weebly.com/distribution-and-global-adaptation.html [Accessed 22 May 2017].