Summary

Strategic Retailing Redesign Group Project

Sample Paper

The Coca-Cola Company

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Executive Summary

The Coca-Cola Company is the largest beverage manufacturer and distributer

worldwide. The vision of the Coca-Cola company is "to craft the brands and choice of drinks

that people love, to refresh them in body and spirit." The first-ever Coca-Cola was served on

May 8, 1886, by Dr. John Pemberton at Jacob's Pharmacy in Atlanta, Georgia, and has evolved

ever since (Cola History: The Coca-Cola Company, 2020). Today, Coca-Cola runs in 200 plus

countries, with 500 plus brands, including Coca-Cola, Diet Coke, Fanta, Sprite,

Powerade, Fuze Tea, and Smart Water.

Coca-Cola is currently restructuring its company to improve efficiency and streamline

communications. They are working to introduce interlinked operating units, portfolio

rationalization, and the reallocation of resources and employees. The company is diligently

working on its restructuring process while responding to the global COVID-19 pandemic and

implementing new safety protocols.

Many environmental forces impact The Coca-Cola Company and such as the political

pressures of the soda tax, tariffs, and trade changes, among others. COVID-19 has impacted the

company on an economic level. Also, the rise of social pressures of a healthy lifestyle has caused

Coca-Cola's sugary drinks to be scrutinized by consumers and other companies. Smart

technology is on the rise in the beverage industry. While Coca-Cola has developed its own Black

Book Model technology, they feel the pressures of technological innovation while monitoring

their impact on the environment. Being a global company comes with many legal challenges,

such as employment, data protection, and health and safety laws.

The Coca-Cola Company's target market is mainly youth and children, and family units.

Many of their advertisements are aimed at youth and teenagers in fun settings such as

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amusement parks or movie theaters—places where people gather to enjoy life with each other.

They evaluate their market strategy by applying three different playbooks based on the brand's

place on the market. Each one takes on critical aspects of the product and expands upon it. The

company's current strategy is using is "pushing to launch more coffee, teas and low-sugar

beverages..." (Reuters, 2020).

One of the Coca-Cola company's strengths is the strong brand recognition and its leading

market share in the non-alcoholic beverage market. Some of their weaknesses are that they are

the leading in the primary source of sugar intake linking with the growing concern of childhood

obesity and diabetes (Sugary Drinks 2019). They face threats and opportunities because the

company has not ventured into any expansion into different markets. The threats include Coca-

Cola had a high-water consumption in regions where there was water scarcity.

Our team believes that our retail strategy suggestions can help The Coca-Cola Company

improve its market share, customer loyalty, and profits. We think reevaluating their marketing

mix (Product, Price, Promotion, and Place) and introducing new products can lead to innovation

and growth for their already established brand. Trends suggest that consumers have become

more conscious and prone to a healthy and sustainable lifestyle; therefore, they need to produce

products to meet that demand. In addition to analyzing customer's interests and launching

innovative projects, it’s crucial for Coca-Cola to reflect on its public image, brand recognition,

and brand reputation while keeping with their current competitive pricing.

We suggest Coca-Cola expand into the American alcohol beverage market by producing

"hard" versions of their other beverages such as Topo-Chico hard seltzers or Fanta cocktail

mixtures. Their current alcoholic brands in the European and Japanese markets have seen some

success, and we believe they will do well in the American market.

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Coca-Cola’s Organizational Overview

History

The Coca-Cola Company's mission statement is, "Our Roadmap starts with our mission,

which is enduring. It declares our purpose as a company and serves as the standard against which

we weigh our actions and decisions. To refresh the world... To inspire moments of optimism and

happiness... To create value and make a difference" (Cola History: The Coca-Cola Company,

2020). Today, the Coca-Cola Company is the largest beverage manufacturer and distributer

worldwide. According to their website, the vision of the Coca-Cola company is "to craft the

brands and choice of drinks that people love, to refresh them in body and spirit. And done in

ways that create a more sustainable business and better-shared future that makes a difference in

people's lives, communities, and our planet." The Coca-Cola Company headquarter is in Atlanta,

Georgia, and the business itself identifies as one of the largest corporations in the United States.

The first-ever Coca-Cola was served on May 8, 1886, by Dr. John Pemberton at Jacob's

Pharmacy in Atlanta, Georgia, and evolved ever since (Cola History: The Coca-Cola Company,

2020). According to the Coca-Cola Company website, today, Coca-Cola runs in 200 plus

countries, with 500 plus brands, including the most popular ones such as Coca-Cola, Diet Coke,

Fanta, Sprite, Powerade, Fuze Tea, or Smart Water. In general, Coca-Cola's beverage categories

range from sparkling soft drinks, waters & hydration, Juices, Dairy and Plant-based, to Coffees

and Teas. On their website, Coca-Cola Company claims to be "as diverse as our communities,

with 700,000 plus employees across company and bottling partners." The company also focuses

on great engagement on social topics such as inclusion, diversity, justice, and sustainability.

The Coca-Cola Company was principally involved in assembling syrup and concentrate

for Coca-Cola. Coca Cola was a carbonated refreshment loaded up with sugar in the United

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States, and a was a worldwide image of what American favored in their desires for drinks. Coca-

Cola additionally makes and disseminates other sodas and citrus refreshments available to be

bought. Coca-Cola has over 2,800 items accessible to more than 200 nations and is the biggest

refreshment producer and wholesaler on the planet. Coca-Cola was initially promoted as a tonic

for most common afflictions, putting it together with respect to cocaine from the coca leaf and

caffeine-rich concentrates of the kola nut; the cocaine was eliminated from Coca-Cola's recipe in

around 1903. Pemberton offered his syrup to nearby soft drink wellsprings, and, with

publicizing, the beverage turned out to be wonderfully useful. By 1891 an Atlanta drug

specialist, Asa Griggs Candler, had complete responsibility for the business and paid $2,300 and

some restrictive rights trading. He combined the Coca-Cola Company the next year. The brand

name "Coca-Cola" was enrolled in the U.S. Patent Office in 1893 (Bellis, 2019).

Under Candler's initiative, deals rose from around 9,000 gallons of syrup in 1890 to

370,877 gallons in 1900. Additionally, during that decade, syrup-production plants were set up in

Dallas, Los Angeles, and Philadelphia. The item came to be sold in each U.S. state and region

just as in Canada. In 1899 the Coca-Cola Company consented to its first arrangement with a free

packaging organization, which could buy the syrup and produce, bottle, and disperse the Coca-

Cola drink. Such licensing agreements framed the premise of a particular appropriation

framework that currently portrays the American soda pop industry's more significant part.

Promoted at $100,000 in 1892 upon fuse, the Coca-Cola Company was sold in 1919 for $25

million to gather speculators drove by Atlanta finance manager Ernest Woodruff. His child,

Robert Winship Woodruff, guided the organization as president and director for over thirty years

(Bellis, 2019).

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The post-World War II years saw broadening in the bundling of Coca-Cola and the turn

of events or obtaining added items. The brand name "Coke," first utilized in publicizing in 1941,

was enrolled in 1945. In 1946 the organization bought rights to Fanta, a soda recently created in

Germany. The shaped Coca-Cola bottle, first presented in quite a while, enrolled in 1960. The

organization introduced the lemon-lime savor Sprite in 1961 and its first eating regimen, cola,

without sugar Tab, in 1963. With its acquisition of Minute Maid Corporation in 1960, the

organization entered the citrus juice market. It included the brand Fresca in 1966. In 1978 Coca-

Cola turned into the leading organization allowed to sell cold bundled drinks in the People's

Republic of China. In 1982 the organization presented its low-calorie sans sugar soda pop Diet

Coke (initially named Diet Coca-Cola). With an end goal to address its decrease in the overall

industry, the organization received another kind of Coca-Cola in April 1985, using an equation it

created through trials. Attributable to the public clamor, Coca-Cola resuscitated its unique flavor

in July, then highlighted as Coca-Cola Classic. From 1982 to 1989, the organization held a

controlling enthusiasm for Columbia Pictures Industries, Inc., a film and amusement

organization (Bellis, 2019).

New business sectors opened for Coca-Cola in the mid-1990s as they expanded their

sales to East Germany in 1990 and India in 1993. In 1992 the organization presented its first

container made from reused plastic—a significant business development Coca-Cola made many

new refreshments during the 1990s, including the Asia-advertised Qoo kids' natural product

drinks, Powerade sports drink, and Dasani filtered water. Coca-Cola likewise gained Barq's root

lager in the United States, which was sold to more than 120 nations worldwide. In 2005 the

organization presented Coca-Cola Zero, zero-calorie soda pop with the flavor of standard Coca-

Cola. In 2007 the organization procured Energy Brands, Inc., alongside its differently upgraded

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waters. That same year Coca-Cola declared that it would join the Business Leaders Initiative on

Human Rights (BLIHR), a gathering of organizations cooperating to create and execute

corporate reactions to fundamental liberties that influence the business world (Bellis, 2019).

Situational Analysis

Coca-Cola’s Current Climate

The carbonated beverage industry has an estimated revenue of $133,739 million in 2020,

with Coca-Cola owning about 45% of the market segment charging $2.71 per liter of soda

(Statista, 2020). Despite Coca-Cola's massive market share, they are not immune to the impacts

of COVID-19. Soda companies have seen a decline in sales over the last 15 years, but it has been

declining more this year due to the pandemic and restaurant shutdowns. (Ireland, 2016) They did

see a small rise in value sales earlier in the year when people were stockpiling food and drinks at

the beginning of the COVID outbreak, but those sales were not enough to even things out. Coca-

Cola has worked diligently to stay up to date with innovation and utilizing technology to

promote their products. They recently announced their strategic steps to reorganize and better

enable the company to pursue efficiency. The company is working on their “Beverages for Life

strategy, with a portfolio of drinks that are positioned to capture growth in a fast-changing

marketplace” (The Coca-Cola Company, 2020).

Coca- Cola’s approach to organization and efficiency is calling for change to the

company’s operation units. They are calling the project the Platform Services

organization, “which will provide global services and enhanced expertise across a range of

critical capabilities (The Coca-Cola Company, 2020). Their goal is to streamline

organization by replacing their current units. They realize that they lack proper communication.

And plan to interconnect their new units in order to ensure they are working as a cohesive

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unit. “The company’s current model includes 17 business units that sit under four geographical

segments, plus Global Ventures and Bottling Investments” (The Coca-Cola Company, 2020).

Employees will report to Coca-Cola’s President and Chief Operation Officer, Brian Smith. Smith

will play in integral role in this restructuring process. At the same time the company

is rationalizing their portfolio to understand their market in a new and more efficient way. They

want to tailor their products, advertisements, and initiatives to each segment of the market. Coca-

Cola understands that their consumer base is changing, and they need to align more with what

they want. To drive these initiatives and support the operating units, the company is reinforcing

and deepening its leadership in five global categories with the strongest consumer opportunities:

-Coca-Cola

-Sparkling Flavors

-Hydration, Sports, Coffee and Tea

-Nutrition, Juice, Milk and Plant

-Emerging Categories

By focusing on these categories Coca-Cola can maximize their efforts instead of

spreading too many resources into weaker areas of the company. In order to implement these

changes successfully the company is committed to restructuring employees and allocating

resources where they see the biggest benefits will come for the company.

Environmental Forces Analysis

Political

Some of the political forces that face Coca-Cola can make business difficult. One area of

concern that has calmed down in recent years is the soda tax imposed during the Obama

administration. "The soda tax is something like a sales tax specifically aimed at one type of

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product, and it's charged on top of any sales tax that's already being imposed. The tax doesn't

apply just to sodas, at least not in all cities that collect it. The drink doesn't even necessarily have

to contain sugar. Some cities include drinks made with artificial sweeteners" (Bird, 2020). While

some cities have done away with this tax, it still exists in areas. On top of soda taxes, Coca-Cola

has to abide by the FDA regulations and wage regulations that have been put forth (Swot and

Pestle, 2020). Tariffs have been something the company has had their eye on since the Trump

administration has taken great strides towards minimizing their trade interactions with China.

Because there will be a new administration in January, the company will need to pay close

attention to any changes that are put into effect.

Economical

As stated previously in this paper, The Coca-Cola Company has been negatively

impacted by the global pandemic this year. They have begun to recover as people have started

heading back to work, but this pandemic seems to be sticking around for a while, so the company

may continue to face the adverse effects. Inflation rates are continuing to grow despite the

pandemic. “Inflation will end 2020 at 1.1%, far below last year’s 2.3%” (Payne, 2020), and

while inflation rises, disposable income is getting lower. Because consumers have less money to

spend on extra things like a soda here and there, the company continues to readjust accordingly.

Unemployment has gone up to 6.9% (Bureau of Labor, 2020) since the pandemic, which

contributes to the economic struggles that Coca-Cola faces.

Social

In recent years the healthy living trend has been in the mainstream media and doesn't

seem to be going anywhere. People are dedicating more of their time and income to healthy and

sustainable living. Coca-Cola has struggled to keep up with this demand and continue to have

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discussions within the company on adjusting. Coca-Cola is a huge sponsor of the Olympics, and

they have received criticism in the past that they are promoting an unhealthy lifestyle at one of

the world's healthiest events. "Throughout the Olympics, viewers are inundated with ads on TV

and social media platforms, many of which are by McDonald's or Coca-Cola. These ads

sometimes feature athletes, which makes them seem like ambassadors for unhealthy eating"

(Weeks, 2014). Coca-Cola takes great pride in its transparent nutritional facts on their beverages

and produces lower sugar alternatives. Still, this criticism is on the minds of many and becomes

more and more detrimental due to the current healthy lifestyle climate.

The rise of healthy living trends has caused soda companies to reevaluate their product

lines. People are moving towards healthier beverage alternatives and, according to a 2020 report

from beverageindustry.com. "The unhealthy perception of carbonates will only accelerate among

consumers, leading to falling consumption rates." (Beverage Industry, 2020) Consumer

preferences are changing and causing carbonated beverage companies to reevaluate their product

lines. Coke has felt the changes in their consumers, and they are shifting their focus. "Coke is

focusing on its most popular segments that include its main Coca-Cola lines and products like

sports drinks, coffees, and teas. It also wants to expand in growing categories such as sparkling

water and plant-based drinks." (Wallace, 2020) Consumers are concerned with companies

promoting unhealthy living and are quick to question companies for such behavior. Coke and

other companies are currently working to balance these recent changes while promoting their

products. The company is also working to improve its carbon footprint by creating more

efficient

manufacturing procedures that meet the new corporate responsibility standards that consumers

have become passionate about. Corporate social responsibility is at the forefront of consumer's

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minds, and Coca-Cola is not immune to the pressures of being a good corporate citizen. These

pressures go hand in hand with the healthy lifestyle that consumers are showing great interest in.

Technology

Smart technology is on the rise, and the beverage industry is not immune to these

advances. Smart sensors have been introduced to the beverage manufacturing industry to

improve efficiency and timeliness. Smart sensors introduced on packaging lines can make it

easier to fill beverage packs in various sizes and switch formats on the fly. They also collect data

that enables beverage producers to monitor their supplies and track the condition of filling

equipment to facilitate predictive maintenance (Baker, 2019). There are new solutions on the

market to monitor beverages' transportation to make sure they are meeting the safety regulations

and staying in compliance. They are new to the market but excepted to make their way into the

mainstream in the next few years if things continue to develop well (Baker, 2019).

A UK-based company called Everledger uses a "new blockchain technology to create

traceable wine labels. Each tamper-resistant Janela label has a unique serialized online identity

paired with near field communication technology" (Baker, 2019). Customers can scan the label

using their smart device to track the product's journey. A start-up company in Israel, Better Juice

is using sugar reducing technology for natural juices. "Natural enzymatic activity in non-GMO

micro-organisms is used by the tech to convert fructose, glucose, and sucrose in fruit into fibers

and non-digestible natural sugars" (Baker, 2019). Better Juice is still perfecting this technology,

but they see reduced sugars in the range between 30% and 80% (Baker, 2019).

Coca-Cola is staying competitive in the market with its Black Book model. They use an

algorithm to ensure their orange juice has the same tremendous and consistent taste all year long,

even outside of the orange growing season. "It does this by combining weather data, crop yields,

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acidity and sweetness ratings, and satellite images, before identifying the best combination of

factors to optimize juice production for consumers worldwide (Baker, 2019). Innovation is a

constant in today's business world, and the beverage industry is working hard to keep up with

these innovations.

Environmental

As stated above, corporate social responsibility is essential to consumers and many

companies. Many companies have started to incorporate green initiatives into their focus, and

many have created a laid out environmentally safe plan to reduce their carbon footprints. The

Coca-Cola Company has faces issues in the past when it comes to their wasteful manufacturing.

"You can trace Coca-Cola's environmental issues to the early 2000s. These concerns encompass

problems like water scarcity and plastic pollution, which are ecological harms that have only

increased in urgency in recent years (Folk, 2020). They have begun their focus on reducing their

water waste and moving towards renewable energy. The company has responded to the COVID-

19 pandemic to reduce its consumers' spread and keep their employees safe. They have

implemented safety and cleaning protocols to keep everyone safe during this global pandemic.

While the company still has a way to go before meeting the high standards of some other green

companies, Coca-Cola is working towards correcting their concerning past.

Legal

Due to the pandemic, new laws have been introduced for consumers and businesses to

ensure everyone's safety. Health and safety laws are continually changing even outside of a

global pandemic, so Coca-Cola is forced to keep up with these regulations to make sure they

comply. Employment laws differ from state to state and country to country. Because Coca-Cola

is a global company, they face the pressures to abide by numerous employment laws depending

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on where their operations are located. Copyright, patents, and intellectual laws require care and

attention. As companies study their consumer's preferences and demands, they collect essential

and private data. Coca-Cola has a responsibility to its consumers to protect this data and abide by

data-protection laws. (Swot and Pestle, 2020). Data hacking has become an enormous issue

today, and the scandal of company's selling consumer information for a small profit. Trust can

easily be lost between a company and its customers if data is leaked, making this a critical legal

topic to follow as a company.

Target Market Analysis

Customer Profiles

The Coca-Cola Company's target market is mainly youth and children, and family units.

Many of their advertisements are aimed at youth and teenagers in fun settings such as

amusement parks or movie theaters—places where people gather to enjoy life with each other.

The targeted market is not split by gender or race but instead aims to include everyone in the

sense that sharing a Coke brings the world together. With their vast flavor options on just the

coke line alone, they can acquire multiple market segments that were not sold on just the regular

taste.

Strategy

They evaluate their market strategy to treat the other brands as if they were the same size

as the Coke product. They do this by applying three different playbooks categorized based on

what that brand place on the market. The categories are labeled as Leader, Explorers, and

Challengers, and each one takes on critical aspects of the product and expand upon it. For

example, Explorers are the brands that are disrupting the market. Since they are smaller, there is

more experimentation and make the brand more entrepreneurial ahead of the market.

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Events have driven most of their marketing; they have now shifted their focus on more digital

and personal content. They focus on social media sites like Instagram and Twitter, bringing more

brand engagement than regular commercials. They have also gone out of their way to sponsor

some online live-streamers and content creators to reach the younger markets.

A current strategy that Coca-Cola is using is "pushing to launch more coffee, teas and

low-sugar beverages to expand its offer of in-demand products as consumers move away from

sugary drinks" (Reuters, 2020). This strategy is smart because people have become more health-

conscious and drinking less carbonated, sugary drinks. By offering healthier choices, the

company will be able to maintain and even grow its market share. In recent years there has been

a big push to reduce the amount of soda that children drink to curb childhood obesity; offering an

alternative Coca-Cola ensures that they will still earn a profit while providing a safer choice for

those at risk.

S.W.O.T. Analysis

Coca-Cola’s Strengths 

Strong Brand Identity 

Coca-Cola is one of the most well-known brands in the world. Easily one of the most

recognizable soft drinks with a unique flavor, it is difficult to replicate (Team, 2020). 

Global Reach 

Coke is currently sold in over 200 countries and has about 9 million servings sold each

day (Team, 2020). 

Leading Share of the Market 

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With 43.7 percent of the market Coca-Cola is the largest non-alcoholic beverage

company. Pepsi is their closest competitor with only 24.1 percent of the market (Bedford,

2020).  

Source of reliable suppliers 

Coca-Cola has a large collective of suppliers which works to give the company an

advantage in tighter markets 

Coca-Cola’s Weaknesses 

Competition with Pepsi 

Starting in the 1980’s and carrying through to today Coca-Cola and PepsiCo. have been

in an “intense marketing battle”. Dubbed the ‘cola wars’, this aggressive marketing served to

shine the light on both companies and raised not only the advertising budget but also consumer

awareness to both companies (The cola wars made Pepsi and Coke "the world's best

marketers" 2020). 

Product Diversification 

Coca-Cola has many products but can grow in by seeking healthier drink alternatives. 

Health Concerns 

Carbonated drinks are a major source of sugar intake and therefore are linked with the

growing concern surrounding childhood obesity and diabetes (Sugary Drinks 2019). 

Water Management. The company has faced harsh criticism in the past due to water

management issues. Groups have brought complaints of vast water usage in areas where there is

little water. There have also been allegations of mixing pesticides with product into water to

clear out toxins (Team, 2020). 

Coca-Cola’s Opportunities and Threats 

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Opportunities for Coca-Cola include new products. To date the Coca-Cola company has

not ventured into any type of food products, this would open the door to a whole new market.

Another opportunity would be to increase its presence in Developing Countries. Improving their

supply chain, updating logistics and figuring out sustainable alternatives before transportation

and fuels costs begin to rise, thereby ensuring that everything needed to manufacture goods is

still readily available, especially during hard times such as we are in. And then, bottled water.

Threats include water usage controversy, as previously stated, there have been issues in past

years that Coca-Cola had a high-water consumption in regions where there was water scarcity.

There was also an allegation against the company that they were polluting water. In 2017 the

company faced criticism over its renewable and recycling issues. Both controversies harm the

reputation if The Coca-Cola company.  and direct and indirect competition, obviously Pepsi

is one of their direct competitors, but some indirect ones are Starbucks, Tropicana, Nescafe, and

Lipton all of which can threaten its market position 

Retailing Strategy

Competitive Advantage

The Coca-Cola Company gained a competitive advantage over the years through its

significant market share and its recognizable brand appearance. However, despite the leading

role of Coca Cola Company in the non-alcoholic beverage industry, the company faces a few

challenges that require creative ideas in meeting evolving customer preferences and expectations.

To deal with and overcome these challenges, it will be critical for the company to evaluate and

strengthen its marketing mix (Product, Price, Promotion, and Place). First, Coca-Cola Company

relies on its brand image and recognition, critical for current and future success. As its core brand

and heart, Coca-Cola can create an emotional tie with customers as a flagship and remain

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significant for Coca-Cola's success. However, as mentioned throughout this paper, trends suggest

that consumers become more conscious and prone to a healthy and sustainable lifestyle.

Therefore, it becomes critical for Coca-Cola Company to approach such market segments and

develop solutions to make existing products healthier or introduce new products based on current

trends. Therefore, one suggestion as part of a retailing strategy is investing time and resources in

market research to endeavor current consumer interests and preferences regarding beverages.

This analysis could happen through various information channels such as surveys, social media,

and testing.

Overall Consumer Value Proposition amd Merchandise Assortment Planning

Strategically referring to the company's three different playbooks (leader, explorer, and

challenger) will be critical in this process to focus on experimenting and testing. According to a

Forbes interview with SVP and chief of growth officer Francisco Crespo, "Explorers are smaller,

disruptive brands that are experimenting in an evolving territory. They must be entrepreneurial,

with clear edge compared to what consumers are currently using." (Talbot, 2019). If explorers

experience a particular success and manage to achieve a double-digit share value in the market,

they become challengers to the current leaders. Following this strategic framework would enable

Coca-Cola Company to dig right into the core of customers' trends or preferences and create new

value for its future.

In addition to analyzing customer's interests and launching innovative projects, it will be

crucial for Coca-Cola Company to reflect its public image, brand recognition, and brand

reputation. In today's social media environment, where information, photos, and videos can be

spread within seconds, a company must understand that employees' or officials' statements or

actions can damage the companies' reputation and public image. Therefore, the companies

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culture needs to spread awareness for social and ethical topics. Regarding this aspect, Coca-Cola

must understand the importance of the employees' role within the corporation. Employees are

vital for building a sustainable competitive advantage in the market. Therefore, another

suggestion implies that Coca-Cola Company needs to focus on Human Resources Strategies to

recruit and retain talented employees who enhance creative and sufficient ideas to strengthen the

corporate working environment and philosophy. Additionally, the Coca-Cola company should

focus on strategies for reducing its ecological footprint. This is feasible through advanced

product design, significant production, and sustainable packaging and product design.

Pricing Strategy

The Coca-Cola company's objective is to offer its products to customers of all financial

backgrounds. Therefore, the company has been and will have to continue offering similar prices

to the company's competitors. However, regarding the companies ecological, social, and

packaging (product design) responsibilities, it is crucial to provide fair compensation for

employees and keeping the costs of reducing the environmental footprint in mind. Therefore, it

would be sufficient for the companies to offer their traditional product lines to prices at a level of

the market and new products with healthier ingredients, significant production, and

environmentally friendly packaging at a higher price to compensate for innovating launching

such products. However, the long-term goal should be to level the costs of healthier products to

the traditional product line to guarantee access for the masses.

Location Strategy

The company must understand the impact of location on its customer preferences and

interests—people across the world favor different beverages through religious, cultural, and

social reasons. Therefore, the company cannot assume that a product in one country will be

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equally appreciated in another. It is essential to analyze each counties market individually and

consider introducing different products and prices.

Suppose the Coca-Cola Company implements the above-outlined suggestions. In that

case, it is expected that the Coca-Cola Company can strengthen and expand its market share and

revenue in the long run. The companies' historical reputation and brand recognition in the

nonalcoholic market will help the company explore new areas and channels for being sufficient.

However, the transition of testing and introducing new products might bring some financial

challenges, especially in times of COVID-19.

Retail Customer Communications Strategy

With the rise of social media marketing, Coca-Cola has the opportunity to focus a large

portion of their advertising efforts in this area. Since a large portion of their target market are the

younger generations social media is a smart platform to advertise on. The Coca-Cola company

should focus their efforts on their most lucrative channels as well and communicate with them

their new strategies. Their lucrative channels consist of retail, direct, wholesale, and agent

channels. The company has a particular “feel good” branding strategy that attracts consumers

and retailers to their products (Angelica, 2019).

Store Format or Management Required Change(s)

Because Coca-Cola does not own their storefront, they must continue to create eye-

catching displays and promotions that attract their customers. Luckily for them, since the brand

is so well-known, consumers can pick Coca-Cola quickly among their competitors. The

company’s partnership with retail chains will be crucial in this step of the retail strategy process.

Reallocation of resources and management focus on our new suggestions will allow for a smooth

transition into their new stage. 

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Expected Financial Results

Coca-Cola can expect to gain more loyal customers and more market share by

implementing the suggestions above. As stated before, The Coca-Cola Company is a well-

recognized brand with a substantial market share in the beverage industry. Focusing their efforts

on brand extensions and reduced sugar drinks will help to stay competitive, retain their current

customer base, and obtain new ones. Continuing their focus on their “feel good” advertisements

will strengthen their brand image and recognition, especially on social media. These actions,

along with their competitive pricing strategy, their green initiatives, and their responsible

responses to COVID-19, set the company for a successful chance of increased profitability.

Brand Extension

Alcoholic Beverages

The direction the brand should expand into is the American alcohol beverage market. The

Coca-Cola company does have some success in the European and Japanese markets. With

the Coke signature mixtures in the United Kingdom and some non-Coke branded products in

Kyoto. Now it is time to expand in the domestic market to make Coke more than a family brand.

The company can offer drink recipes using coke products or offer ‘Hard’ versions of other

beverages. For example, the recently acquired Topo-Chico make a hard seltzer version or offer

Fanta cocktail mixtures for those seeking fruitier drinks.

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References

Angelica. (2019, April 2). Marketing Communications Strategy. Retrieved

from https://globalmarketingprofessor.com/coca-cola-current-marketing-

communications-strategy/

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