Coca-Cola Company Marketing Audit
Coca-Cola Company is the largest beverage company in the world specializing in nonalcoholic beverages. The company was established in 1886. The Coca-Cola idea was born when one John Pemberton mixed fragrant caramel colored syrup that was later to be known as Coca-Cola. That was in Atlanta. However, the company has expanded over the years. Currently, the company has presence in over 200 countries refreshing people with its well-known brands. The company was incorporated in Delaware with its principal offices being in Atlanta, Georgia. The physical address is One Coca Cola Plaza, Atlanta, Georgia, ZIP code 30313.
Mission statement A company’s mission statement states the raison d’etre for its existence. A mission statement basically states the reasons why the company exists in the first place. Coca-cola company mission is to refresh the world in body, mind and spirit. This is achieved through its billion dollar brands as well as a portfolio of over 300 products. The company also aims at inspiring moments of optimism through its products and actions. Apart from that, Coca-Cola also aims to create value and make a difference wherever they transact their business in.
All these basically aims at touching people’s life’s by way of its products coupled with actions. The company’s main goal is to utilize its assets; financial strength, brands, distribution network, global presence, human capital of the company and its associates to enhance the company’s competitiveness in order to speed up growth thus creating value to the stockholders. Coca-cola is determined to be the leading manufacturer, marketer and distributor of quality beverages in the whole world. It is targeting to increase its market to about 60 % and widen its base in terms of collaboration with its bottling partners.
The bottling partners contribute more than 74% of the company’s entire profits. It also plans to strengthen its good relationships with the partners’ the nations they want to venture in as well as harmonize the effects of foreign exchange fluctuations by placing in well determined reserves. Coca-cola is as well in the look for prospective companies which they can buy tem in, or enter into business agreements in order to expand its market the target 60%. (cola) Marketing environment The Coca-Cola company faces diverse marketing environments due to its diversification geographically.
These include:
- Social- Customer preference and health awareness. Many people have been very choosy in what they drink and eat. This is attributable to the concerns of high reported cases of cancer, and obesity in young people. It proves a big challenge to the coca cola company to regain their customer confidence in their products. The company also enjoys a wide preference and support given that their products are the most widely known and preferred by many consumers. Relationship with its bottling partners have also helped coca cola attained quite a number of goals. This is a very important relationship given that most of their treaties are majorly agreements and cannot give coca cola much power to control the partners.
- Political- Coca cola operates in more than 200 countries which run differing political ideologies. The countries especially those in Asia and Africa have been seen to have political differences which even lead to civil wars and arrests. The politics have seen emergence of terrorist groups like the Al Qaeda which is a stumbling block for coca cola and its partners to operate effectively.
- Legal and Regulatory- Coca cola is faced with diverse legal requirements in the different countries. Some laws restrict the company in packaging, labeling and warning requirements. For instance, California requires that any drink which contains any chemical make up believed, or tested to be a causative of cancer and birth defects be indicated so in the label. Accounting and taxation requirements also keep changing and they need adaptations as and when altered. Unfavorable political environments are usually common in the new markets and markets in the developing countries.
- Economic- Recession of the economy in the US and the world over affects Coca-Cola’s operations. The fluctuation of foreign currencies as compared to the US Dollars is also another environment which coca cola has to handle. A time it’s very favorable but a times it’s unfavorable. Scarcity of some economic resources is another environment the coca cola works in. resources such as energy a times face price increments which may force the company to hike its prices for its products. Increased rate of interest a times forces the company to use cheaper sources of capital in order to minimize the cost of capital. This may limit the company’s operations and diversity in emerging markets.
- Competitive environment- Competitors such as PepsiCo inc. , Cadbury Schweppes plc, nestle, Groupe Danone and Kraft food gives the Coca-Cola a competitive environment. It forces the company to be continually innovative, spend substantially in advertising, and regular reviews of the products prices in order to continue being in the market (cola).
