Coca-Cola - Different Brand Analysis in Different Industries

Different Brand Analysis in Different Industries

Class: Drinks

Category: Soft Drink

Form: Carbonated drinks

Brand: Coca-cola

Background

Coca-Cola is a carbonated soft drink sold in stores, restaurants, and vending machines throughout the world. It is produced by The Coca-Cola Company of Atlanta, Georgia, and is often referred to simply as Coke (a registered trademark of The Coca-Cola Company in the United States since March 27, 1944). Originally intended as a patent medicine when it was invented in the late 19th century by John Pemberton, Coca-Cola was bought out by businessman Asa Griggs Candler, whose marketing tactics led Coke to its dominance of the world soft-drink market throughout the 20th century.

Strengths

First of all, Coca-cola owns the No.1 beverage market share in the world. Secondly, Coca-cola is an extremely recognizable company with successful marketing and advertising campaigns. Coca-cola is known very well worldwide. It's branding is obvious and easily recognized. Thirdly, Coca-cola has the most extensive beverage distribution channels. And it is one of the most valuable brand in the world. Fourthly, wide variety of Coca-cola products are sold in the restaurants, stores and vending machines over 200 countries. Another strength that is very important to Coca-cola is customer loyalty. The 80/20 rule comes into effect in this situation. Eighty percent of their profit comes from 20% of their loyal customers. Many people or families are extremely loyal to Coca-cola. It would not be rare to constantly find bottles and cases of a product such as coke in a house. It seems that some people would drink coke religiously like some people would drink water and milk. This is an improbable feat.

Weaknesses

Coca-cola significantly focuses on carbonated drinks. Coca-cola company also has high debt levels. The company is facing with high burden of external debts during last few years. In 2002, the long-term debt of the company was 2700 million dollars. Negative publicity in November 2009, because of a dispute over wholesale prices of Coca-cola products, Costco blocked the replenishment of their shelves with Diet Coke and Coke, which harms Coca-cola's reputation. coke has taken less aggressive market standing in today's changing economic surroundings, and many brands with insignificant amount of revenues.

Opportunities

Coca-cola has a few opportunities in its business. There is increasing demand for healthy food and beverage, and consumers are prefer to drink new smaller beverage products that are not sold on a mass scale. Coca-cola company has many successful brands that it should