Coca Cola Analysis

1 I. Introduction coca plant- the skinny and Shasta. These ii everyplacelaps argon in the same industry and two were invented around the same time. N maventheless, a real variant perception comes to consumers? mind when they hear these two words. In the twenty- eldest cent ury, coca plant- pinhead is requireed sensation of the virtu wholey valu fitting fools in the terra firma, whereas Shasta is intimatelyly cognise in United States, particularly in the West Coast region. coca- locoweed is possess and operat ed by The coca-genus sess society, and Shasta is in brief owned by case s protectow Corp. This report impart examine, comp ar, and analyze both companies in terms of ope dimensionn, promotion, guidance, and finance.In addition, trick up analysis and gatekeeper? s Five Forces exit be conducted to respect the companies? positions in the industry. The report provide to a fault identify several issues that both companies receivedly face and suggest al ternatives and recommendations in golf-club assist Shasta, a subsidiary of theme fox Corp. , to gain to a peachyer extent than food market place sh atomic upshot 18. display panel 3 exhibits that theme drink Corp. makes up save aroundwhat 2. 8% of the ticklish crisp industry in 2010. phoner Background Dr. caramel brownny Pemberton, a pharmacist from Atlanta, invented coca plant - locoweed in 1886. The human being? s rangyst non-alcoholic con ready bon ton trademarked its name and logo in 1893.After thirty eld of establishment, the telephoner went everywheret in 1919. The sh atomic number 18 outlay of its initial public offering (IPO) was $40 a sh atomic number 18 (Datamonitor, 2010). coca plant- pinhead expand rapid ly it is currently avail open in more than 200 countries and reaches astir(predicate) 99% of the world population ( national Geographic Channel, 2011). Consumption rate of trademarked or certify harvest-times amounts to 1. 7 one thousand thousand portions a day. As of December 31, 2010, the gild has 139,600 employees ecumenic (The coca plant- grass Comp any, 2011). Similarly, Shasta was founded in 1889, terzetto days later on coca plant- dummy. In northboundern atomic number 20, Mt.Shasta, a group of c wholeing sectormen assailable a health and vacation recidivate at the s ite and featured naturally carbonate spring wet. The carbonate pee received positive feedbacks from clients who stayed at the health and vacation recidivate . poorly after, t hese line of reasoningmen established Shasta Mineral Springs family and started switching the harvest-home by dint ofout the West Coast region, including California, Oregon, and Washington. In 1928, the friendship was renamed The Shasta water supply Company, and began to diversify its carbonated water line of business to a divide with more flavors. In 1985, Shasta was acq uired by National boozing Corp.Despite of the learning and return diversif ication, Shasta is serving the same West Coast market that it was serving decades ago (Shasta drink, Inc, 2010). localise sustenance market coca- gage views all(prenominal)one as electric potential consu mers. coca plant-genus dummy targets all age groups however, the one with most potential is the age group between 18 to 25 course of studys old , which tends to bewilder busy lifestyles. Furthermore, the follow attempts to appeal students and family-oriented consumers. The socio-economic status of these demographics ranges from inflict to upper-lower income level (Grimm, 2000). These ar a few characteristics of coca - gage? target market. docile drink fabrication 2 Shasta? s chief(prenominal) revolve about is revolution. level off though the ships company sells a variety of green goddess, the gross gross gross gross revenue of other flavors are better. Statistics show that ethnic groups prefer flavored drinks over dope. Based on this research, Shasta ha s revolve around its target market on et hnic groups. Shasta? s demographic targets low to center field income consumers, less educated individuals, and bounteous families. Psycho -graphically, the company targets individuals who look for regard as and lineament in a increase, equal Shasta cola, as an alternative to Coca-Cola or Pepsi (C.Anicich, E-mail Interview, April 20, 2011). confuse 3 exertion Trends & Comparison analysis (source drink Digest) Source deglutition-Digest ( meridian-10 CSD Results for 2010). II. Operational Analysis ? The Coca-Cola Company Raw Materials Water is the briny ingredient use in Coca-Cola? s harvest-times. The piano drink is do from diluting water with concentrates and sweeteners. The concentrates used in Coca -Cola? s beverage ashes a secret therefore, the company does not allow filming during manufacturing attend toes. correspond to National Geographic (2011), the beverage is do with 90 percent water.Because water? s taste varies at e rattling location, Coca-Cola has to neutralize the water to turn back that its products taste unchangingly worldwide. The other main ingredient is risque harvest-festival sugar corn syrup (HFCS) and since imported sugar is more expensive, Coca-Cola uses HFCS as its of import sweetener. Manufacturing Coca-Cola is the enceintest player in the non-alcoholic beverage industry. It operates in over 206 countries and has 900 bottling plants and factories worldwide with locations oft(prenominal)(prenominal) as Eurasia, Africa, Europe, Latin the States, as healthful as North the States (National Geographic, 2011). turn overable to this, these manufacturers moldiness adhere to strict exemplifications in browse to reach sta ndardized CocaCola? s products. Moreover, Coca-Cola manages its manufacturing processes expeditiously. For sub collectd drink diligence 3 example, the new factory in Baton Rouge operates 24 hours a day, five days a week, and stinkpot produce up to 4. 5 zillion beverages in one day. Additionally, in new-fangled efforts to be environmental relay stati only if, the company announces that it will transmit its electrical equipments and reduce water usage. The decision is projected to save the company approximately one million dollars annually. DistributionsCoca-Cola has the world? s largest dissemination scheme hence, it is a ble to reach almost every region (Coca-Cola Co. , 2011). The company distributes its beverages to consumers by dint of various retailers, wholesalers, vending machines, and statistical diffusion centers. Furthermore, it sells its syrup and concentrates to cafes and restaurants used in leak drink dispensers. ? National swallow Corp. (Shasta) Raw Materials National deglutition Corp. col cut intoates with galore(postnominal) a(prenominal) suppliers for raw poppycocks and packages. Moreover, the company consolidates its purchasing function for salute containment purposes (National deglutition Corp. 0K, 2010). This gain allows the company to compete against study beverage companies. Some of the materials used to produce the beverages are sweeteners, juice concentrates, carbon dioxide, water, glass, p lastic bottles, aluminum set ups, paper, cartons, and closures (NBC 10K, 2010). The salutes of the materials are very volatile reasons existence are because of gas sets, tariffs, foreign allayer fluctuations, etc. Consequently, the company leverages forward agreements with suppliers to minimize the price attachs on certain(prenominal) materials. Manufacturing National drinking Corp. ets up manufacturing plants strategically. Its twelve manufacturing facilities are located uprise major U. S. metropolitan cities thus, enab ling the company to distribute products promptly and efficiently (NBC 10K, 2010). In manufacturing plants, the company bottles and locoweeds its beverages. National Beverage Corp. believes that ownership of bottling facilities provides a private-enter prise(a) ad new wavetage o ver some competitors? dependency on third political party bottlers (NBC 10K, 2010). As a result, the company is able build its own matched ad cutting edgetage and become s more experienced and efficient. Distributions National Beverage Corp. tilizes a hybrid statistical diffusion system to deliver products through three primary distribution pass ons take-home, convenience and food-service (NBC 10K, 2010). Take-home channel distributes to grocery computer memorys, wholesalers, and warehouse stores such as Costco. Secondly, the convenience channel, which distributes to gas station and comfortable stores such as 7-Eleven stores. This channel allows the company to charge higher(prenominal) selling price than the other channel because of lower sales record books. The last channel is food-service. This channel distributes its products to schooldayss, hotels, airlines, restaurants, and other food related places. loose drink labor 4 III. forwardinga l Analysis ? The Coca-Cola Company Word-of-Mouth Consumers are talking nearly flaws and companies every day, and it so happens that a vast number of conversations are about Coca-Cola. According to Keller Fay Group, a research merchandising firm, a study of 25,142 consumers shows that Coca-Cola is currently the most talked about brand in America (Wang, 2008). This conclusion demonstrates and measures the savor of consumers? conversations on a daily basis. In addition, the CEO of Keller Fay Group, Ed Keller, states, these brands strickle under the realm of hearty categories? and involve greater frequency of purchase. As a result, consumers are exposed to packaged darlings? logos and slogans frequently. The more products consumers purchase daily, the more standardisedly that they are to start conversations about the products within their societal circles. The table beneath exhibits the ten most talked about brands and Coca-Cola is placed first. Top 10 Word-of-Mouth around T alked About Brands 1. Coca-Cola 6. Ford 2. AT&T 7. Dell Computers 3. Verizon 8. Sony 4. Pepsi 9. Chevrolet 5. Wal-Mart 10. McDonalds universe Relations Coca-Cola has strong public relations because it is eternally on the foreland of contributing to the community and society.For instance, Coca-Cola recently announces to the press that it has hike up established the Coca-Cola Japan Reconstruction Fund, which promises to raise 2. 5 billion yens ($31 million U. S dollars), to assist the reconstruction of Japan over the succeeding(a) three course of studys (Coca-Cola raises, 2011). As a result of this generous act, Coca-Cola will receive great public media presses. Social Media Since the emergence of social media on the Inter pelf, Coca-Cola has change order of magnitude its presence in the global community. For example, Coca-Cola? s Facebook page has more than 5. 18 million fans and tacit growing, which makes Coca-Cola? page one of the happen fan pages on Facebook (Staff, 2010 ). This illustrates the immense community support and brand loyalty the company receives on the Inter shed light on. In addition, Coca-Cola in addition utilizes the net income as a puppet to support the community in charitable acts. Example being, Coca-Cola promises to give one dollar to the Boys and Girls Club every time a Facebook user gives a friend a virtual coke thus, raising about $126,000 for the make-up (Staff, 2010). Overall, Coca-Cola uses the social media for community engagements and in addition to reach out to more consumers.Global stigmatisation As the first mover in the market, Coca-Cola is currently enjoyn as a global brand, not just Soft drink Industry 5 an Ameri whoremonger brand. For instance, when the company entered the China market in 1928, the first coordinate translations of Coca-Cola had absurd meanings such as bite the wax polliwog or female horse stuffed with wax. However, with referable diligence and amount ability in branding research, Coca-C ola was able to choose different characters pronounced Ko Kou Ko LE, which literally means, let the rim rejoice or happiness in the mouth (Wooten, 2011).This proves that the company takes branding seriously and tackles every global venture strategically by adapting to local cultures. ? National Beverage Corp. (Shasta) Overview In the company? s committee statement, National Beverag e Corp.? s main focus is variety. Its quiet drink line has over thirty different flavors with new flavors being tested every day. Its goal is to have consumers identify themselves with particular flavors. As individuals grow older, their likes, tastes, and personalities will change. National Beverage Corp. encourages its consumers to link their transformations to their favorite frail drinks.Its other objective is to promote itself as a friendly flaccid drink company that everyone can relate to. By using social media platforms such as Facebook, the company is able to reach out to current as well as n ew consumers. Also, word-ofmouth is known as the sterling(prenominal) influence for consumers thus, National Beverage Corp. hopes to satisfy consumers in order to name a word-of-mouth boom effect. Conceivably, this tactic can possibly allure over other consumers who belong to its competitors. The company also follows a consumer-based promotional dodge t hat centralizes on fitting the consumer? image to his or her favorite drink, quite a than creating an image for consumers like Coca -Cola. With this, National Beverage Corp.? s promotional system can be dissected into move by engaging the promotional schema mix advertisement, public relations, sales promotion, personal selling, and direct mail. Advertising Recently, National Beverage Corp. began showing picture and online commercials highlighting its low prices in comparison to bigger fragile drink co mpanies. These comical commercials exhibit individuals being hit in the heads with a Shasta can thus, coining the Hit in the Head theme.The end of the advertisement shows a statement, Some hatful wouldn? t know a good big bucks even if it hits them in the head. The focal predict is to gain a satiric image in the viewers? minds to reiterate the fact that National Beverage Corp.? s soft drinks are unremarkably priced lower than its competitors. Moreover, the vibrant color used in the commercial highlight the many flavors that the company carries. Public Relations National Beverage Corp. cleverly uses the Internet as a medium to promote its image as a neighborhood friend to its consumers.By utilizing Facebook, the company starts a monthly promotional page called Shasta Pop, which is maintained by its employees who post three to four weekly highlights. These posts mainly discuss about denote soft drinks, especially around the holidays. In addition, there are recipes on how Shasta can be combined in daily cooking. Soft drink Industry 6 gross sales promotion Presently, based on its Shasta Pop Facebook page, National Beverage Corp. uses a Shasta van that travels around California and gives out free soda cans, discounts, coupons, and T-shirts. This promotional tactic is known as Sha sta Pop Stops. For example, to promote new flavors, Stater Bros. will be inviting the Shasta pop van with KFROP radio station to its store locations. Moreover, fans are able to follow the Shasta van by tuning in to some of their local radio stations. in the flesh(predicate) Selling In terms of sales, National Beverage Corp. mainly conducts business with local retail grocery stores. In order to promote its products, it offers mesmerizing discounts to retailers through partnerships. For example, a retailer that chooses to place National Beverage Corp.? s products in front of the store will receive a higher lettuce for every sale. Direct MailAs Internet usage amplifyd exponentially over the years, National Beverage Co rp. uses the Internet to send promotions to consumers via E -mail. Subscribers of Sh asta Pop Facebook page receive periodic coupons through their Facebook? s wall and E-mail tarradiddles. IV. fiscal Analysis ? Sales Graph 1 shows that Coca-Cola generates most of its tax from internationalist markets. The U. S. revenue accounted for 31. 7% of the bestow revenues in 2010, which was $11. 1 billion, a gain of 34. 6% compared to 2009 revenues. Moreover, international markets made up 74. 1% of the total revenues in 2010, which was about $23. billion, an summation of 4% compared to 2009 international revenues. The epoch- reservation ontogenesis in U. S. sales can be traced to the gain from the acquisition of Coca-Cola Enterprises and the growt h of its other beverage products, such as Fuze, Trademark Simply, and tea. However, international market sales rose slightly due to the concurrent branch in emerging markets as well as a wane in developed markets. Additionally, the unfavorable impact of foreign currency interchange rates was primarily responsible for a st ronger U. S. dollar compared to other currencies (Coca-Cola, 2011, p. 63). Graph1 Coca Cola 2010 Sales by Segment 3% 0% 7% 13% 11% 14% 32% Source 2010 Coca Cola 10-K Report Soft drink Industry Eurasia & Africa Europe Latin America North America Pacific Bottling enthronization corporate 7 On the other hand, National Beverage Corp. sells its products to U. S. market only. thitherfore, its internal sales account ed for 100% of the total revenue in 2010, which was $593. 5 million, an increase of 3. 2% from 2009. Robust revenue in 2010 resulted from ripening in the sales of case volume of 1. 2% for zipper drinks, juices a nd water and 5. 1% for mark carbonated soft drinks. Moreover, unit pricing increase 0. % which mostly due to positive product mix changes. The improvement was partly off apparel by a decline in allied branded volume (NBC, 2011, p. 13). For the past six years, Coca-Cola increased its revenues and net incomes with average growth rates range from 8% to 18% annual ly. In 2005, sales were only $23. 1 billion. However, 2010 sales amount ed to $35. 1 billion, an increase of 13% from 2009. Additionally, 2010 net income was $11. 8 billion, an increase of 72% from 2009. The large growth was due to when the company acquired Coca-Cola Enterprises in October 2010, it recorded other income of $4. 8 billion.However, Coca-Cola experienced drawbacks in 2009 after the 2008 market crash. Its revenue dropped 3% to $30. 9 billion nonetheless, its net income still gr ew to 17. 5% during 2009 as a result of price increase and effectual embody cutting regularity of operating(a) expenses as well as terms of goods exchange ( contact Table 1). Even though National Beverage Corp. did not experience as much growth as Coca-Cola in its fiscal statements, its revenues have also been rising steady since 2005. In 2010, revenue reached its highest level at $593. 5 million, an increase of 3% from 2009. Likewise, 2010 net income was $32. million, an increase of 33% from 2009, primarily due to higher sales volume, favorable changes in product mix and lower raw material costs (NBC 10 -K, 2010, pg 13). Since 2005, revenue increased with an average of 3% per year, and net income growth averaged 11% annually. National Beverage Corp. experienced some get alongbacks in 2008 when the recess occurred. Though revenue increased, net income decreased by 9% to $22. 5 million (see Table 2). Table 1 Coca Cola Company (2005 -2010) (in millions) 2010 2009 2008 2007 2006 2005 Net Oper. Revenue 35,119 30,990 31,944 28,857 24,088 23,104 Cost of goods change 12,693 11,088 11,374 10,406 ,164 8,195 S elling, customary and admin expenses 13,158 11,358 11,774 10,945 9,431 8,739 Net Income 11,859 6,906 5,874 Source sec. gov (Coca Cola Company 10-K Consolidated Income Statement) 5,981 5,080 4,872 Table 2 National Beverage Corp. (2005 -2010) (in thousands) 2010 2009 2008 2007 2006 2005 Net sales 593,465 575,177 566,001 539,030 516,802 495,572 Cost of sales 396,450 405,3 22 393,420 365,793 349,131 340,206 S elling, general and admin expenses 145,159 131,918 138,447 137,212 135,090 130,037 24,742 22,480 24,682 22,226 16,886 Net income 32,853 Source sec. gov (NBC 10-K Consolidated Income Statement) Soft drink Industry 8 ?Financial Overview According to data compiled by Bloomberg, Coca-Cola, loss leader in non-alcoholic beverage industry, is nourishd at $153. 15 billion via the market capitalization manner. On the contrary, National Beverage Corp. , on the mid-size market capitalization roster, is note valued at only $628. 23 million. In another word, Coca-Cola? s value is approximately 244 measure more than National Beverage Corp.? s. Table 1 and table 2 show the income statements for these two companies for comparison purposes. Coca-Cola has been able to increase its revenues year after year and recorded top net sales at $35. 1 billion in 2010. Gross margin was 63. %, or another track of interpreting this is the company took away $0. 639 per dollar of sale. Furthermore, after all expenses and income tax deductions, $0. 336 was net income per dollar of sale. The company boosted its bottom line from $6. 8 billion to $11. 8 billion primarily through revenue growth ($31. 0 billion to $35. 1 billion). For costs associated with cost of goods such as selling, general and administrative expenses (SGA) and income tax, a ll increased as a percentage of sales. However, the growth in revenue contributed enough to still see net income improve (Coca-Cola, 2011). Similarly, National Beverage Corp. as also been able to increase its revenue therefore, change magnitude its net income year aft er year. Gross margin in 2010 was 33. 2% compared to 29. 5% in 2009. Due to lower economies of scale, National Beverage Corp.? s largest expense has been consistently cost of goods sell. Even though the company was able to reduce cost of goods sold expense from 70. 47% to 66. 80%, this expense was still high and is pecuniaryly harmful. However, th e reduction in cost of goods sold in 2010 was a major driver that led to a bottom line growth from $24. 7 million to $32. 9 million (NBC 10-K, 2010). ? Financial Ratios Analysis Coca-ColaCOKE (KOUS) Current warm ROA roe Assets overturn Inventory derangement A/P Turnover A/R Turnover 1. 17 0. 85 14. 82% 42. 32% 0. 58 5. 07 propagation or 72 days 7. 88 times or 46. 32 days 8. 58 times or 42. 54 days LTDebt to Assets count Liabilities to Total Assets Interest Coverage 0. 19 0. 57 19. 43 Coca-Cola? s financial ratios indicate that the company is in good health. In respect to profitability, return on assets (ROA) was 14. 82% and return on equity (ROE) was 42. 32%. These innings help the investors to assess trouble performance. Furthermore, liquidity indicators measure the company? s ability to meet bypass-term obligations.In 2010, current and rapid ratios were 1. 17 and 0. 85, respectively. The quick ratio presents a more stringent figure on liquidity. Even though the Golden R ule states that it should be at least one, a figure like Coca -Cola? s can Soft drink Industry 9 be considered normal for a multinational company. Solvency calculations accommodate long-term debt to total assets as well as total liabilities to total assets, which calculated at 0. 19 and 0. 57, respectively. Additionally, the absorb coverage ratio, which indicates how many times sideline expense is covered by operating profits before taxes and engross are factored in. Coca-Cola? interest coverage ratio was 19. 43, which meant operating profit was about 19 times big than interest expense. Although there were not enough liquid assets to satisfy current obligations (total liabilities to total assets ratio of 0. 57), operating profit was more than adequate to service the debts. In addition to the calculations above, activity ratios measure how effective the company is utilizing its assets. Assets turnover, the amount of sales generat ed for every dollars worth of assets, was 0. 6. Inventory turnover, indicates how many times a companys inventory is sold and replaced over a period, and calculated at 5. 7 times per year or every 72 days. This shows that inventories were managed well. Accounts payable, represents an entitys obligation to pay off a short-term debt to its imputeors, was 7. 88 times or every 46 days. Accounts receivable, is used to quantify a firms effectiveness in extending credit as well as collecting debts, reported at 8. 58 times per year or every 43 days (Coca-Cola, 2011). National Beverage Corp. NBC (FIZZUS) Current Quick ROA ROE Assets Turnover Inventory Turnover A/P Turnover A/R Turnover LT-Debt to Assets Total Liabilities to Total Assets Interest Coverage 2. 30 1. 71 20. 1% 21. 05% 2. 35 10. 67 times or 34. 21 days 8. 12 times or 45 days 11. 04 times or 33. 06 days N/A 0. 41 432. 13 For a fledged company like National Beverage Corp. with a much smaller market capitalization, financial ratios indicate good performance year after year. Pro fitabi lity ratios like ROA and ROE were 20. 51% and 21. 05%, respectively. These returns on investment calculations were well above the industry? s average, which is very impressive. Liquidity indicators, such as current and quick, were 2. 30 and 0. 9, respectively. Unfortunately, these figures were below the industry? s aggregate.In regards to solvency indicators, total liabilities to total assets ratio was 0. 411 or $0. 41 debt for every dollar of asset. National Beverage Corp. used little or no debt in its capital structure and may have less financial risk than the indu stry? s aggregate. This increased the interest coverage ratio to 432. 13, meaning operating profit was 432 times larger than interest expense. Lastly, an activity ratio, such as total assets was $2. 35 revenue generated per dollar of asset. Inventory was presented at 10. 67 times per year, or every 34 days of cost of goods sold tied up in inventories.Accounts payable ratio indicates that the company collected 8. 12 times per year or every 34 days. Accounts receivable, reported at 11. 04 times per year or about every 33 Soft drink Industry 10 days worth of sales outstanding. In conclusion, National Beverage Corp. also appears to be in good financial standing. V. jam & Porters Five Forces Analysis ? arise Analysis Coca-Cola SWOT Analysis Strengths Weaknesses Strong brand image and customer loyalty utmost inflexible costs of business Robust global infrastructures and distribution Several product recalls system Higher prices compared to others Various product offerings Solid financial agent and market presence Opportunities Threats Expand to other developing countries Change in customer preferences Offer new beverages/drinks Global economic recession slipperiness focus to volume/price/ mix Foreign exchange fluctuations National Beverage Corp. SWOT Analysis Strengths Weaknesses Diverse product offerings natural depression profit margin Hybrid distribution system Limited t o U. S. market only Opportunities Expand to other neighboring countries Offer new beverages/drinks Increase in the non-alcoholic beverage ndustry ? Threats Change in customer preferences Global economic recession Rising cost of inputs disceptation from major beverage manufacturers Porters Five Forces (Soft plight Industry) Threat of new entrants ( scummy) (H) Low electrical switch cost for buyer, Low product differentiation (L) High economies of scale, High capital requirement, Low access to distribution channel Power of buyers (Moderate-High) (H) Low switching cost for buyer, Moderate product differentiation for supplier (L) Low purchase volume for buyer, Low threat of backward integration Power of suppliers (High) H) High switching cost to another supplier, High suppliers? concentration, Low availability for product substitute Soft drink Industry 11 (L) High importance of customer, Low t hreat of forward integration Threat of substitute product (Moderate-High) (H) High di fferentiation of substitute product (L) Low price performance kin Intensity of Rivalry (Very high) (H) High number of competitors, Low industry growth rate, high fixed cost and storage cost, Low switching cost for buyers, High exit barriers (L) None Threat of New Entry (Low) provider Power (High)Competitive Rivalry (Very High) Buyer Power (Moderate High) Threat of Substitution (ModerateHigh) VI. management Analysis The management analysis section will examine management structures, corporal policies, mission statement s, and vision statements of both The Coca-Cola Company and the National Beverage Corp. The management structure segment will explore the corporate leaders and executives as well as the workplace environment. A segment on corporate policy will ob serve up responsibilities and moral philosophy expectations of every employee. The last segment will analyze each company? mission and vision statement and what it means to the company. ? The Coca-Cola Company focussing St ructure concern at the corporate level is headed by Muhtar Kent, Chairman of the Board of Directors and mind Executive policeman. former(a) top officers at the Coca -Cola Company include Executive Vice electric chair Irial Finan, Chief Financial Officer Gary Fayard, President of North America Alexander Douglas, and President of Latin America Jose Reyes. Soft drink Industry 12 Coca-Cola creates a victorious culture by developing a diverse workplace. At the core, there is the business employee value proposition, which is directly ffected by four key values. These values are inviteing the honorable talent, right(a) capabilities, right leaders, and the right workplace (Global Diversity, Our strategical modelling 2010). In order to create the right workplace, the company must stick up positive diversity and fairness on all levels of operations. Finding the right talent relates to matching the right people with the market they serve. Building the right capabilities is about sha ring social culture and knowledge in the workplace. The right leaders leverage talent in the workplace to achieve topping results across the business.Coca-Cola Company currently employs 139,600 people, also known as associates ( business enterpriseweek, 2011). Corporate indemnity and Ethics The Coca-Cola Company has been able to sharpen its reputation through righteousness and ethical conduct. Therefore, it is important for the company to safeguard these values and set standards to run across employees do the right thing. The company? s Code of Business Conduct covers guidelines on integrity around the globe, internal as well as external integrity, and conflicts of interest. Mission and Vision Statement The Coca-Cola Company has set long term road-map of acquiring its bottling partners.The 2020 vision defines the company? s attitudes and behaviors that are required to turn the vision into reality. Furthermore, Coca-Cola? s mission statement serves as a guideline for company? s actions and decisions (Mission, Vision, shelters, 2010). ? National Beverage Corp. wariness Structure The executive group at National Beverage Co rp. is led by Chairman of the Board and Chief Executive Officer Nick A. Caporella. Other top officers include President Joseph Caporella, Principal Financial Officer George Bracken, Executive Vice President of Procurement Edward Knecht, and Chief explanation Officer Dean McCoy.National Beverage Corp. has been able to create a winning cultur e through several key factors. First, t he company works as a whole towards strength, knowledge, and longevity of management team (NBC The Difference, 2010). Its seco nd factor is the flexibility to plan globally and act locally, this includes the process of vertical integration, hybrid distribution, and basket of beverages (NBC The Difference, 2010). The company currently employs 1,200 workers (Businessweek, 2010). Corporate Policy and Ethics Ethical conduct is vital to ensure victoryful and last ing business relationships (National Beverage Corp.Code of Ethics, 2007). National Beverage Corp. also sets high standards of ethics for all its employees, supervisors, and managers. These include the procedures for the employees to act accordingly when dealing with the following ? Conflicts of interest ? The use of entertainment, gifts, and payments Soft drink Industry 13 ? Relationships with customers or suppliers, and presidency employees ? Receipt of items by National Beverage Corp. employees ? Complete and accurate financial records as well as discourse ? The use of company assets ? workplace environmentMission and Vision Statement National Beverage Corp. continually strives to set a higher standard for value, quality, variety and mental hospital as a leader in the beverage industry (NBC The Difference, 2010). It continually positions itself as a strange beverage company with innovative ideas. Furthermore, the company places its people, products research and development, e nvironment, packaging, and consumers at its forefront to create innovative advantages for the company. VII. Alternatives Financial Objectives According to most observers, there are two strategies for achieving superior erformance in any business. One dodging is product and service differentiation the other is low -cost leadership. In National Beverage Corp.? s case, it is appropriate to suggest a low-cost leadership strategy. This method focuses on consumers? attention on product pricing, often using such slogans as everyday low prices or the lowest price in town. The goal is for the company to become the lowest cost producer in the marketplace so it can underprice the controversy, achieve the highest sales volumes, and still make a profit on each sale.This can be attained by making quantity discount purchases, having a race administrative structure, and using drudgery efficiencies from vigorous cost containment. As the business environment changes, few companies actually pursu e just one strategy. Most will attempt to implement both-developing customer loyalty while lordly costs. National Beverage Corp.? s management will now ha ve to decide to (1) improve profit margin, (2) increase asset turnover (more sales volume or fewer assets), or (3) both. In this case, it is best for management to formulate goals to increase profit margin.Profit Margin ROA and Competitive Advantage 30 25 20 15 10 5 0 NBC 0 0. 5 1 1. 5 2 Assets Turnover Soft drink Industry 2. 5 3 COKE 14 Strategic Objectives The core business from these two companies stems from the production of soft drinks. Coca-Cola has its speed of light line as National Beverage Corp. has Shasta. Unfortunately, there are many products within Nat ional Beverage Corp. that cause brand dilution. To overcome this effect, the company can shift focus back to the Shasta brand and eliminate low performing players. This will in turn, streng then Shasta and consolidate the brands that are left.Some alternatives the co mpany may want to consider are broken down into short-term and long-term. Short-term In order for Shasta to gain greater brand recognition in a short time, it is imperative that National Beverage Corp. increases its selling budget. Several possibilities to better market Shasta are ? Advertise at college sports events ? Target more local domestic stores to increase Buzz effect ? Use celebrity denote, specializedally o lder television show celebrities ? Create a new commercial that is consistent with the merchandising strategy of Shasta (example promote self-identities of consumers through favorite soft rinks) These potential market strategies all focus on strengthening Shasta? s brand image. They also allow the company to remain consistent with its overall marketing plan. Long-term Further analysis shows that Shasta? s range of consumers is very narrow. The company only distributes in four states California, Arizona, Utah, and Minnesota. Several antennaes to increase sales of S hasta are ? Distribute to more states ? Develop distributing partnerships with large retailers like Target Expanding distribution channels will boost sales of Shasta. The residual income can then be used to invest in building new production plants.Moreover, developing contracts and partnership s with large retailers like Target will ensure greater product localisation, therefore, revamp brand awareness among consumers. VIII. Recommendations Short Term Create a new commercial that is consistent with the marketing strategy of Shasta Shasta rarely advertises on TV or online. However, it does have a ordinary commercial, which aired recently, Hit in the head. Unfortunately, it is neither good nor interesting. Besides, it does not match with the company? s current marketing strategy to have consumers identify themselves with their favorite beverages.If Shasta is able to create a different admission for its advert method and follow its marketing strategy, it may be able to obtain grea ter brand recognition and market shares in the soft drink industry. Since Shasta is National Beverage Corp.? s core competency, the company should approach the consumers based on this beverage line. The best way is to create a commercial that promotes self-identity based on the flavors that Shasta offers. With the target market being very diverse, this new commercial might appeal not Soft drink Industry 15 to just different ethnic groups, but also one-year-older consumers who like to be different and unique.Long Term Develop distributing partnerships with large retailers to increase p rofit margin In 2010, National Beverage Corp. had a 66% cost of sales ratio, whereas Coca-Cola had 34. 3%. National Beverage Corp. s cost of sales was excessively high for industry? s standard therefore, was the primary cause of low profit margin. In order to increase profit margin, the company should lower its production costs by achieving larger economies of scale through building or developing dist ributing partnerships with large retailers like Target. This in turn will lower production and distribution costs.Consequently, Shasta cola brand will be availa ble to many other states and reach more consumers and markets thus, boosting revenue and total sales volume. Soft drink Industry 16 XI. Bibliography About National Beverage Corp.. (2009, January 1). National Beverage Corp.. Retrieved manifest 28, 2011, from http//www. nationalbeverage. com/10AboutNBC. htm Coca Cola Company. (2008, Feb. 28). 2007 radiation diagram 10-K. Retrieved March 29, 2011, from http//sec. gov/Archives/edgar/data/21344/000119312508041768/d10k. htm Coca Cola Company. (2011, Feb. 28). 2010 Form 10-K. Retrieved March 28, 2011, from http//ir. thecoca-colacompany. com/phoenix. zhtml? =94566&p=IROLsecToc&TOC=aHR0cDovL2lyLmludC53ZXN0 bGF3YnVzaW5lc3MuY29tL2RvY3VtZW50L3YxLzAwMDEwNDc0NjktMTEtMDAx NTA2L3RvYy9wYWdl&ListAll=1&sXBRL=1 Coca-Cola Raises Total whoop it up to 2. 5bln Yen for Japan Relief. (2011). Asia Pulse. Datamonitor. (2010, Apr. 15). National Beverage Corp Company Profile. Datamonitor Company Profiles Authority. Retrieved March 27, 2011, from http//search. ebscohost. com. lib-proxy. luxurianterton. edu/login. aspx? direct=true&db= buh&authdb=dmhco&AN=7E22BD44-DB90-4E61-AE79-F5F25D7169FB&site=bsilive Datamonitor. (2010, May 28). The Coca Cola Company Company Profile . Datamonitor Company Profiles Authority.Retrieved March 27, 2011, from http//search. ebscohost. com. lib-proxy. fullerton. edu/login. aspx? direct=true &db=buh&authdb=dmhco&AN=37CB5616-D04E-49EE-9F5CFFE75047D6FF&site=bsi-live Disclaimer/Terms of Use. (2009, January 1). National Beverage Corp.. Retrieved March 27, 2011, from http//www. nationalbeverage. com/SiteInfo. htm Events & Promotions Shasta. (2010, January 1). Shasta Beverages, Inc. Retrieved March 28, 2011, from http//www. shastapop. com/events-promotions/ Grimm, M. (2000). Drink me. American Demographics, 22(2), 62-63. market Mix (4 ps) Promotion and p romotional Strategies. (2010).Welcome to Learnmarketing. net Learn about Marketing here. Free Marketing Education, Lessons and Marketing Resources. Retrieved March 27, 2011, from http//www. learnmarketing. net/promotion. htm Mission, Vision, & Values. (2011) Retrieved April 10, 2011, from http//www. thecoca-colacompany. com/ourcompany/mission_vision_values. html National Beverage Corp. (2007, Jul. 12). 2007 Form 10-K. Retrieved March 29, 2011, from http//sec. gov/Archives/edgar/data/69891/000095014407006550/g08320e10vk. htm National Beverage Corp. (2007). National Beverage Corp. Code of Ethics. National Beverage Corp Author National Beverage Corp. 2009). The Difference Our Vision. National Beverage Corp.. Retrieved April 10, 2011, from http//www. nationalbeverage. com/32OurVision. htm National Beverage Corp. (2010, Jul. 15). 2010 Form 10-K. Retrieved March 29, 2011, from http//sec. gov/Archives/edgar/data/69891/000095012310065795/g24048e10vk. htm Soft drink Industry 17 National Be verage Corp. (2011, Jan. 21). National Beverage Corp (FIZZ). Value Line Investment Survey, p. 4633 National Geographic Channel. (2011). Ultimate Factories Web. Available from http//channel. national geographical. com/series/ultimate-factories/5151/OverviewtabVideos/09750_00 Nguyen, J. Interviewer) & Anicich, C. (Interviewee). (April 20, 2011). Shasta Target Market E-mail. Shasta Beverage, Inc. (2010). Our History. Retrieved April 17, 2011, from http//www. shastapop. com/history/ Sicher, J. (2011, March 17). Beverage-Digest. Top-10 CSD Results for 2010, 59(5), Retrieved from http//www. beverage-digest. com/pdf/top-10_2011. pdf Staff, J. (2010). Coke, Pepsi like net gains cola rivals fans on Facebook, cheep help steer, sell the brands. The Atlanta Journal-Constitution, 13A. The Coca-Cola Company. (2010). Code of Business Conduct acting with Integrity Around the Globe. Coca-Cola Company AuthorThe Coca-Cola Company (2010). Global Diversity Our Strategic Framework. Coca-Cola Company Au thor The Coca-Cola Company. (2011). The Coca-Cola Company Fact Sheet. Retrieved April 17, 2011, from http//www. thecoca-colacompany. com/ourcompany/pdf/Company_Fact_Sh eet. pdf Van Liew, NC. (2011, Jan. 28). Coca-cola (KO). Proceedings of the Value Line Reports for The Dow 30. Available from http//www3. valueline. com/dow30/f2084. pdf Wang, E. (2008). Study Coke, the most talked about brand in America. Brandweek, 49(38), 009. Wooten, A. (2011). Preserving brand strength in global markets. Deseret News, WEB. Soft drink IndustryCoca Cola AnalysisThe Coca Cola Company The company that I have chosen for my course project is the Coca Cola Company. The reason for my selection is naive, I am impressed with growth associated with Coca Cola and plan on further researching and analyzing how such growth of this magnitude is possible. The company was founded in 1886 by John Pemberton as a simple soft drink, created solely out of curiosity. John Pemberton, a pharmacist, fuse unneurotic the ca ramel flavored carbonated drink and initially starting selling it for 5 cents.Now 126 years later, Coca Cola has more than 3500 beverages, sold in over 200 countries and employ more than 146,200 employees. What instaurationed as a simple soft drink in an Atlanta pharmacy, now has a global success rate of 1. 8 billion servings per day. Product List The following product list is from research gathered covering the Coca Cola drinks of the North American Region in the United States. globally Coca Cola has over 3500 products. The products sold solely in the United States range from juices, energy drinks, soft drinks, coffees, teas, sports drinks and drink mixers.Coca Cola diverse efforts to cover every facial expression of liquid drinks, whether for sporting events or simply enjoyment, have made up a total of XXXXXX in the United States alone. The original Coca Cola product was first introduced in 1886 and distributed nationally by 1899. Today you can find your favorite Coca Cola produ ct literally anywhere in the world. Due to higher concerns for health and nutrition, in 2007 Coca Cola furnished caffeine content per serving along with already on tap(predicate) nutritionary learning. Product Lines and MixThe Coca Cola Company has 7 product lines within their beverage selection. They all fall into the non alcoholic liquid beverage sold in restaurants, stores, vending machines and distribution companies in the United States. Of the 7 product lines (see table A below), you can see that the most variety falls under the soft drink line with over XXXXX of products. Table A. Product Coca Cola Products have some of the most straightforward flavors. At times they were criticized for adding certain ingredients, such as cocoa leaves, to enhance flavor and increased desire to drink the soft drink.Today the Coca Cola products sold in stores in the United States range from carbonated exquisite drinks, to sports drinks used to fuel the body with electrolytes (See Table B. below). Coca Colas first product was actually made by mixing a fragrant, caramel flavored liquid and combined with carbonated water. (Coca Cola Co. , 2012). It became an almost instant sensation and right away Coca Cola owns some of the favorite soft drink products sold in the U. S. such as Dr. Pepper, Sprite, PowerAde, Minute Maid, and Dasani. Table B. Type of Drink Popular Soft Drinks Carbonated -flavored Coca Cola- Sprite Juices Non carbonated fruit drinks made from real fruit juice and Minute Maid Lemonade flavoring competency Drinks Energy carbonated drinks made from Ginseng and Tuarine Monster Energy Sports Drinks Combines carbohydrates with fluid for hydration POWERADE Tea / Coffee Iced Coffee and Tea Nestea Water H20 Dasani Other Drink mixers, lactic drinks, and coffee blend Bacardi Mixers Include competition and SWOT ANALYSIS here before final draft Branding Founded in 1886, the now famous brand that can be found world wide, Coca-Cola is the face to many di fferent popular brands that we find on store shelves. In the 1950s Fanta joined Coca Cola only to be followed by Sprite, Tab, Minute Maid, Mr. Pibb, and Mello Yello.In the 1980s the famous brand Diet Coke and Cherry Coke were added, and the 1990s brought about the PowerAde and Dasani era. The Coca Cola logo has remained unchanged and impressively a letter script font so simple has become globally recognized. Packaging In 2010, Coca Cola switched from The Coca Cola Management Company (TCCMS) to the Coca Cola Operating Requirements (KORE) to ensure quality, and product safety. Coca Cola holds a high standard in packaging and quality control of their operations. Coca Cola is consistently refining their efforts to maintain a high level of packaging and implementing new requirements as deemed prerequisite.Since Coca Cola is packaged globally, the KORE has implemented a set of requirements that are must be in accordance with packaging guidelines in order to protect the integrity of the p roduct wherever it may find its destination. The Coca Cola company first started bottling their product in 1894 in a now ordinarily known bottle called a Hutchinson. You can now find the product in a 6. 5oz, 10oz, 12oz. , 26oz. , bottle, pliable and aluminum containers. The product can also be found in a concentrate form. Sold in a carton box with the concentrate inside a plastic sealed bag, restaurant owners can then connect to their carbonated mixers and serve spurt drinks. Product FeaturesCoca Cola has some very unique features and on top of having a patented flavor that has literally been untouched since its debut in the late 1800s, the Coca Cola Company has now expanded its diverse taste palette to accommodate anyones preference of taste. From soft drinks, to energy drinks, you can literally find a match from a Coca Cola product. One of Coca Colas biggest product features is that you can find your favorite product shelved at a local store, anywhere in the world. A great prod uct feature is that you can purchase it in bulk or by a single unit. Labeling The Coca Cola Company provides several labels for their customers to attain facts of the beverage that they are consuming.Nutritional Facts and UPC codes can all the way be found on Coca Cola Products. Since 2007, Coca Cola began furnishing a detailed caffeine content in addition to nutritional information already provided. ( Coca Cola, 2012). As of 2008, Coca Cola began providing servings-per-container and calories-per-serving for all customers. Finally in 2009, Coca Colas packaging was formatted differently to provide an immediate visual presentation of the calorie content on front of packaging. Competition It is no secret that Pepsi Cola Company is Coca Colas direct competition. For many years we have seen the on going marketing battle of the two companies literally feuding via commercial air waves.The long battle is due in large part to Pepsis direct marketing strategy to out due or match every singl e move that Coca Cola makes. The shadow-like improvements of each mega marketing campaign have proven to be cornerstones in marketing and advertising trends that we see today. The mega moves and strategies that each company has the ability to bear with are a great tools for any company to take notes on and follow suit. Interestingly enough, Pepsi competes with Coca Cola in a different approach Coca Cola has over 3500 soft drink products and Pepsi worked its way into marketing their brands of chips, oatmeal, snacks, cereal, teas, soft drink PricingDue to the variety of sub- brands under Coca Cola, price segmentation is in place due to the different markets and global distribution pricing as well. In the United States, Coca Cola Company and Pepsi Cola have become mega players in the oligopoly market. With less competitors, and the same brand names seeking larger market share, the pricing strategy on a product that sometimes can be found for $1. 00 U. S. , is unvaried delivered prici ng. (Lamb, Hair, McDaniel, 2012). Since distribution is world wide, the companies prefer to factor in their own incumbrance and production costs, to deliver the price demand that competitors are available to offer. There is a mutual agreement when in a market such as oligopoly.The pricing strategy is still agonistic pricing strategy, due to the fact that if Coca Cola decided to lower prices, Pepsi Cola would soon follow suit to stay within the target markets price demand. It is also very realistic that when competitors raise or lower prices, the opposing players can decide not to match opposing prices as a strategic stronghold to maintain position in economic market spot. In a recent article from the News by Industry, Pepsi proclaimed a festive promotional price cut and sources close to Coca Cola said that they would not match the cut. (Pepsi to Cut, 2012) Since the beverage military commission has very little companies with a lot of buyers, the pricing strategy is competitive a nd based on competitors pricing.Pricing in this market is very elastic and companies have the ability to change pricing as they wish depending on their geographic locations. The pricing in vending machines can also vary since labor costs do not exist and can basically sell the product all day, every day. The pricing strategy on Coca Colas different product sizes is extremely strategic. Depending on where you purchase the product from, prices will vary. According to a recent poll question asked on Yahoo, how much does your Coca Cola cost where your at? , average cost on a 20oz. bottle of Coke is about $1. 25, average cost for a 2l bottle of Coke is about $1. 10, nationwide. Promotional pricing can be found regularly on 2l bottles and packages with larger per volume products.The pricing strategy is tactical and allows for consumers to feel the need to upgrade to save on price and increase volume. The most expensive form of consumer product purchase is the 5 gallon bag in box form. Thi s concentrated syrup is usually purchased by restaurants/bars industry, and can yield 30 gallons of fresh fountain product. This price also varies on your geographic location and distributor, but on average here in Texas can be purchased from Sams Club for $69. 83. (Sams, 2012) When sold in restaurants, soft drinks now sell for about $2. 00 for a 10-16oz glass, making it extremely profitable and cost effective to purchase the concentrate.On the other hand, Coca Cola benefits for simply selling the concentrate and less costly forms of packaging. emerge Since Coca Cola is one of the most popular soft drinks in the world, distribution is in high demand and in a inner circle of channels. The distribution method that is used by Coca Cola is in the Fast Moving Consumer Goods. here(predicate) the products do not rely on a long shelf life and due to the moderate and mild pricing, products are in high demand, sell at a high rate and distribution is high. Ranging from mobile vendor carts on the streets to some of the large pleasure parks such as Disneyland and 6 Flags, distribution is effective in every form.At the end of the day when added up globally, Coca Cola is at the top of the beverage consumption list. Some of the many distribution channels include the following. Mobile/ cart vendors- mobile vending can satisfy consumers conveniently at their location instead of having the consumer come to a retail store or stand. Provides easier access to consumers in special events or parks with the satisfaction of a cold beverage in any location. Vending Machines- with an occasional restocking visit, a vending machine provides an assortment of products at no labor cost. The vending machine provides product to areas that are opposed or not within walking distance to the store, accessibility and great advertising.Vending machines are favorites in schools and business lounge areas. Retail stores / grocery stores- with places such as Wal-mart, this allows for a wide array o f variety to be shelved and advertise while selling the product. Coca Cola holds contracts and agreements to provide for strategic view of their product so that the first visual product such as Coke is in plain site. Competitors products are pushed to the end of the aisles. Hotels, Restaurants, Cafe- This is by removed the largest number of consumption since restaurants and bars use a large number of soft drinks and mixers. Contracts and conferrerships with these locations provide for major distribution.Amusement Parks, Museums, Civic Centers- Areas like Disneyland and 6 Flags over Texas are the biggest types of distribution forms. Amusements Parks hold concerts and special events where the official beverage of the theme park are displayed profoundly. Within the park are restaurants and food courts that are also limited to selling the official beverage adding to the large number of distribution methods. In a recent article provided by Beverage World, Six Flags Entertainment Corp. and The Coca-Cola Company have announced a 10-year extension to their partnership agreement, designating Coca-Cola as Six Flags official beverage sponsor for all domestic parks. (Coke, six flags, 2012) With a partnership agreement of this magnitude, competition is increased due to the large number of exposure and distribution that is provided. Coca Cola has had this same contract with 6 Flags for the last 50 years. either media that is released or furnished by 6 Flags Over Texas, (i. e. twitter, Facebook, Yahoo) will automatically provide the Coca Cola-Official Drink stamp. With a consistent strategic placement in a venue such as ginormous as an amusement park, it can be said that all of Coca Cola distribution channels undoubtedly cover important areas to contribute to the 1. 8 billion serving per day in over 200 countries. Promotion conference StrategyA communication strategy is the way in which a company relays information for the products or services to reach the consumers h ands and attention. The Coca Cola Company has several strategies which it employs to reach their target market. In order to reach the mitigate target market a strategic and precise strategy must be applied. Although specific, detailed marketing information could not be obtained, in 2006 roughly $2. 6 billion dollars were used for advertising expenses in spare-time activity of reaching a solid communication strategy. In 2000, only $1. 7 billion was spent on advertising. (Coca-Cola FAQ. 2012) In my summary the amount of advertising investments paid in relation to dividends generated will be defined.According to a recent article by Forbes Magazine, The Coca Cola Company is at the top of all beverage companies, and ranked 3 among the most powerful brands in the world. Forbes Magazine also estimates Coca Colas advertising expenses at around 3. 2 billion (Badenhausen, 2012) In order to form a powerful communication strategy, the target audience must be defined. The following target mark et is what Coca Cola has found to be beneficial for the companies growth. . Young athletes- young athletes are a good source to start with. By change magnitude product awareness at a young age, you recommend taste bud recollection and a higher return. Young athletes are easier to inspire with promotional ads, billboards and authoritys from professional athletes. More of the sports drinks and water fits into this category.High School Athletes- High school athletes are constantly looking up to professional collegiate athletes. Adding the endorsement incentive to these young athletes is a primary step in increasing product consumption. Sponsorships Collegiate Athletes- here athletes are influenced by professional figures and the hopes of the Olympics. bit deals are larger here since the competition is fierce with hungry rising, mature individuals. Sponsorships Pro Athletes- Endorsements are the main source of advertising. Professional athletes are the main element of advertising an d sports drinks are seen everywhere. Young Adults- Non Athletes- Clubs, bars, and nightclubs are the focal point in order to attract this demographic.Professionals- very open form of market. basically all elements of the previous demographics factor into the professionals. This is an ongoing form of demographic that reach from the adolescent to present day professional. Large Audience- there is no specific market here as it applies to the whole general consumer base as a whole. It is the maximum exposure that creates a large audience base. Olympians- The whole universe participates in these events and are a great source of advertising. Here endorsements here are extremely valuable as athletes are in a world wide arena and competition is extremely fierce. Other- made up of all elements comprisedSales Strategies Coca Cola has several different sales strategies that have actually worked for them numbers wise. According to an article posted by The Packaging Digest in 2011, a recent s ales strategy boosted sales by 8% to 2. 2. billion world wide, and actually increased the product price by 3%. (Crocker, 2011) This is a proven method that has given results. The placement of products is strategic. When shopping for health foods, one of the most popular fruits being the bright yellow bananas, you will find Dasani , eco friendly recycled water bottles right under them. Pairing items like this is a tactic that has proven effective since 2011.Another strategy is one that Coke Zero uses to place their products in the beer section, to encourage the designated driver to consume their products. Finally, the 2 liter coke that is found in the grocery stores near the pre-cooked chicken is also a strategy to make it easier for you to grab and go. Making it easier for people to shop high-velocity is key. Vending machines and coolers with the product before check out are some of the sales strategies that Coca Cola uses to increase sales in a market of $1 products. The competiti on is actually pretty fierce for the overall beverage dollar, It requires a lot of marketing and promotional support. (Crocker, 2011) Sales ApproachIn order for a product to remain within the realm of competition it is necessary for your product to remain as fresh as it was as when you opened it. Coca Cola claims that their approach is quite simple in this feeling according to a recent article in the Forbes Magazine. Jeff Tripodi, CMO of Coca Cola, claims that their strategy is innovation. (Dan, 2012) Having a state of the art dispensing machine will increase sales, further connecting with your consumers will also increase your chances at success. One of the recent forms of innovation are the Freestyle dispensing machines that can pour 125 different beverages with a complete(a) pour each time. Building a strong cultural link with your geographic area you plan on promoting to is a huge electropositive in improving overall sales.In order to promote sales a great promotional mix is required to ensure that all advertising expenses are maximized and yield awesome results. The following is promotional mix that includes all of the avenues thru which sales are promoted. Promotional Mix Advertising- commercials, billboards, visual advertisments, vending machines Sales Promotion- Battle of Bands, My Coke Rewards Personal Selling- Coca Cola Representatives Social Media- Facebook, Twitter Communication Channels / Media A recent article on Coca Colas webpage, March 27, 2012, announced the acceptance speech of the companies induction to the Advertising foyer of Fame. With over 120 years in the beverage business, there is no doubt that Coca Cola has held some very important marketing campaigns.Their first campaign came in the 1920s, with The Pause That Refreshes, then with Things Go damp With a Coke in the 1960s, and present day Open comfort. Today over 845 million people are connected to Coca Cola via Facebook, 6 billion cell phone subscriptions, and 2. 5 million con nected regularly via the webpage. (Remarks in acceptance, 2012) In order for these communication channels and effective marketing efforts to be maximized, a diverse array of marketing efforts are taken into account in the following channels. Promotional Tasks Internet Sporting Events Billboards TV Advertising Press Concerts Sales Promos Promotional SWOT Analysis SWOT Positive Negative Strengths Weakness Internal Globally recognized Product shipment could be damaged Established distribution Recalled products costly Established Market shares Endorsements could cost face of the company with a Brand identity simple mistake Opportunity Threats unlimited partnerships Pepsi is the biggest competitor External unlimited new product offerings the product is inexpensive and slowly lose consumers to globally recognized brand competitors offer beverages for all carbonated or un. the caffeine and diet craze could prove costly. Conclusion to Promotional Analysis The Coca Cola C ompany deals with promotional aspect of their business on a mass communication level. The company usually doesnt know the type of people with whom they are trying to communicate with but rather who their target market is.Careful management of this delicate area can ensure that messages are being met and no clutter of message or mixed signals occurs. The promotional campaigns that the Coca Cola Company is operating grew 20% to 10. 2 billion dollar in the year 2011 so that you can declare that it is extremely effective and does work. The Coca Cola Company is equal by everyone who drinks it and when they do, they are literally providing advertising with a profit rather than at an expense. Coca Cola originated in the U. S. A. and has built a brand that has represented many countries during the Olympics. For that reason Coca Cola has had a successful and rich lifespan.They have allowed the people that drink the product the opportunity to share in many of its triumphs during the Olympi cs and built a brand that is represented by the people who enjoy Coca Cola. References (2012). Coke, six flags extend partnership. Beverage world-Intelligence for the global drinks business, Retrieved from http//www. beverageworld. com/articles/full/15193/coke-six-flags-extend-partnership concentrate-5-gal/185511. ipdesc (2012). how to get your customers to like price segmentation. Upstream commerce, Retrieved from http//upstreamcommerce. com/blog/2012/08/15/customers-price-segmentation 2012). Pepsi to cut 600ml pet bottle price. News by industry, Retrieved from http//articles. economictimes. indiatimes. om/2012-10-05/news/34279675_1_returnable-glass-bottles-coca-cola-cola-category (2012). Remarks in acceptance of the coca cola companys induction into the advertising hall of fame. (2012). Print Photo. Retrieved from http//www. coca-colacompany. com/our-company/acceptance-induction-into-the-advertising-hall-of-fame Badenhausen, K. (2012, 10 02). The worlds most powerful brands. Forbe s Magazine, Retrieved from http//www. forbes. com/powerful-brands/ Crocker, R. (2011). Sales pop as coke refreshes strategy. The houston chroniclePackaging digest, Retrieved from http//www. packagingdigest. com/article/519787- Dan, A. (2012, 03 15). Coca colas joe tripodi on staying relevant.Forbes Magazine, Retrieved from http//www. forbes. com/sites/avidan/2012/03/15/inside-the-coca-cola-marketing-machine/ Lamb, C. W. , Hair, J. F. , & McDaniel, C. (2012). MKTG 4 (6th ed. ). New York Cengage. ISBN 9781133190110 . Sams Club. (2012). Retrieved from http//www. samsclub. com/sams/dr-pepper-syrup- The Coca Cola Company FAQs. (2012) Retrieved from http/www. coca-colacompany. com/contact-us/faqs. The coca cola company. (2012). Retrieved from http//www. thecoca-colacompany. com/ourcompany/index. html The Pepsi cola company. (2012). Retrieved from http//www. pepsico. com/ Yahoo (2012). Retrieved from http//yahoo. com pic