Coca cola company How would you organize the company to pursue your recommendations? They spend billions of dollars each year in order to promote their product and to attract new customers ,and they develop continuously new product to replace the lost revenue due to the declining of soda sales. In fact ,the two company have adopted their strategy to attract more consumers and to drain more sales.
The biggest competition actually concerns the innovation of new products that have the ability to respond the consumer trend. with the increasing of public awareness of the health. Pepsi launch promotions and big deals with determination to gain the market share. ģ- How does the macroeconomic and competitive context affect management’s margin for manoeuvre? Coca cola operate in an aggressive and fierce concurrence weights. Thus ,the introduction of new products will enable Coca cola to rise its profits and to to keep growing. īecause the industry of soft drink is saturated with competitors and since the consumers prefer healthy product the market share is actually decreasing. and to continue expansion of its product line. The recommendation for Coca Cola is to : 1-stay in touch with costumers and shoppersĢ-to understand and to recognize the needs and wants of each generation :the youger generation demands 3energy drink and sport drink and on the other hand ,the aging boomer focuse more on healthy foods and beverage that avoid problematic ingredinets like sugar and sodium 3- to develop new strategies in order to adjust their product with the changing market 3-to keep innovating (new products services and packages ,supply chain innovations ) ,and creating value. Pepsi co began emphasizing products that are at healthy it invests more in new health conscious brands and more and more its strategy is to move forward with initiative and commitment to contribute to a healthy life style. Health trend represents a major challenge to the global beverage market. Lack of innovation : The innovation and the introduction of new products that have the ability to respond the consumer change and the constumors trend is one of the biggest challenges facing Coca Cola company. īut the problem is that Coke focuses almost exclusively in beverage product while Pepsi don’t concentrat all its resources on one specefic product ,it operates also in non-beverage category such as oats and chips which creat more opportunity for pepsi Co to takes sales advantages of resulting synergy among various products. Both of them have similar strentghs and weaknesses. The competition between the two brand consist on the creation of new variants of carbonated drinks and non-carbonated drinks and increasing revenue and market share. there is others competitors ,but none of them have successfully penetrated in the market like Coke and Pepsi Co. both brand represent the most heated ennemies in the beverage business. PepsiCo competition : Coke main competitor is Pepsi Co. furthermore ,soft drinks contain high-fructose corn syrup that was implicated in the rise of obesity and diabetes.Ģ. According to the European Journal of Cancer Prevention, Regular soft drinks have been linked to elevated the blood sugar and insulin levels in the body. So why this trend is becoming so predominant in the beverage market ? In fact ,a study in the medical journal “The Lancet in 2001’’ revelled that A child’s risk of obesity greatly increases with the amount of sugar -sweetened soft drink that he adds to his diet. A great number of soft drink consumers are shifting their consumption to healthy products and preferring more low-calorie carbonates drink, sports drink ,bottled water ,juice and withe tea. This health trend and consumer awareness of health and obesity problems are considered to be a serious risk to the carbonated drinks company and a significant challenge to the Coca Cola industry. In fact, Nowadays ,societal concerns ,lifestyles, attitudes and behaviour change is enormous ,people are becoming more aware about health problem and more concerned with a healthy lifestyle.
Such publicity can have a serious damage to the company in international and growing markets especially with the increasing of consumer ,public health and government awareness of the health problems. In 2006 ,the Indian government agencies have claimed that Coca Cola products contain pesticides that cause dangerous problem for health. Wellness and health trend : The products of Coca Cola Company are considered to be a high sugar product and harmful for health. Main strategic issues facing Coca Cola company Essay Sampleġ.
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