The Coca-Cola Company is one of the largest soft drink concentrate and syrup manufacturers which operate in almost all the countries in the world. During the first few months of 2000, Coca-Cola's market capitalization was almost three times that of its chief competitor, PepsiCo and at the end of the year 2005, PepsiCo was able to surpass Coca-Cola by $.5 bn. This was the first time in the history of the companies that Coca-Cola was valued less than its rival enemy. Coca-cola's relegation means that the company should do a thorough study and investigation, i.e. a marketing audit and recommending a plan of action to improve the company's marketing performance.SWOT ANALYSIS
Brand name reputation
Great variety of products
Consistent powerful logo display.
Lack of understanding of cultural differences and consumer behaviour
Lack of financial resources by regional bottlers.
Increased brand recognisability and global strategy
Increase product line in less developed countries
Increasing product diversification.
New and viable competitors, PepsiCo
Changing attitudes of consumer towards health consciousness
Consumer buying power
Political and economic instability.
INTERNAL ENVIRONMENT:Seven P's of Marketing- ProductThe objectives of the Coca Cola Company are to ensure customer satisfaction. They are in business with products and therefore they need to sell it and consequently, customers are necessary.Coca Cola has a very good global market.The market is growing everyday.The Coca Cola Company is an established product but a few of their other products such as their energy drink and sugar free drinks, juice products, health products and bottled water are fairly new. These products will need a lot of promotion and explanation on its contents.New products came later than PepsiCo.Their main competitor is PepsiCo and people prefer Coca Cola products although it is more expensive.Its products are a household name and its commitments to the likes of people from different cultures and backgrounds make its selling capabilities unique.Coca Cola complacent in its ability to spot consumer trends.PriceCoca Cola products sell at a premium price but affordable.Not influenced by the lower prices of its competitor, PepsiCo.PromotionThe absence of brand-building iconic advertising.Creating credibility as a world class company by sponsoring big events, e.g.: the Olympics, Fifa World Cup, and International Film Festivals.Plans to introduce new products for France initially and later to other parts of the world.Plans to offer a new advertising slogan"Welcome To The Coke Side Of Life".PepsiCo uses television frequently for promotion of its non-carbonated drinks.Coca Cola not making full use of promotion by television, radio and the internet.PlaceThe emergency of markets such as China and India as new markets needs more vigorous marketing.Coca Cola's unique distribution by...