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Analysis Of Coca Cola Inc.

2926 words - 12 pages

Long one of the world's most recognized companies and brands, Coca-Cola continues to prosper by innovating and adapting to the local needs of its customers and consumers throughout the world. Despite ferocious competition, significant currency devaluations in key markets and major acquisition-related write-downs, the company reported first quarter 2002 sales of US$4.08 billion and has predicted long term growth approaching six percent.What is Coca-Cola's formula for success? Is it simply a case of having the right product and brand? Or is it more than that? Just what does it take for a multinational like Coca-Cola to sustain its competitive advantage?"Our flagship Coca-Cola brand empowers us, without a doubt, with a tremendous competitive advantage and a solid foundation for success. But it is just one of many elements that enable Coca-Cola to create increasing levels of value in an ever changing market environment," said Hector Gorosabel '87, vice president, North Latin America Division, The Coca-Cola Company. "I'd have to say that an innovative marketing approach and our unmatched distribution system are important as well, as is our focused, consistent approach to doing business."Exactly what the brand means is a difficult question for Coca-Cola, since the brand has the unique ability to connect with people on a variety of emotional and functional levels. I can tell you that we believe the brand stands for authenticity, for refreshment, and for enjoyment. But I can also tell you that people who drink Coca-Cola often do so because of the enduring, emotional and refreshing connection they have with the brand."Yet Coke is only one of the 230 brands Coca-Cola sells around the world. The company continues to leverage its competitive strengths as it selectively broadens its family of beverage brands to drive profitable growth. "We are committed to meeting the diverse preferences of consumers by offering branded beverage solutions in a variety of beverage categories and consumption occasions," said Gorosabel. Several examples of this diversified focus come in the form of the Minute Maid juice and Dasani water products. These two brands alone now yield a significant portion of the company's revenues."Coke employs a 'Think local. Act local.' market strategy founded on the principal that the company exists to benefit and refresh all those who are touched by its brands," said Gorosabel. Given that the product is so relationship based, the company tries to put locals in charge of operations whenever possible - believing they better understand local consumers, as well as their social, economic and political issues."As for our distribution system, our objective is to ensure that ice cold Coca-Cola is always within an arm's reach of local consumers, whenever and wherever they need the physical or emotional refreshment of the unique Coca-Cola taste sensation."To deliver on that goal, Coca-Cola has constructed an unrivaled worldwide bottling network; consisting...

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