Integrated
Strategic Marketing Plan: Section Two
Part
2- SWOT Analysis
A. Strengths
There is no denying that Coca-Cola is a well-known
brand. Even in many other countries, the companies red and white logo is easily
recognizable. Because of this, it is number four on Forbes’ 2016 list of “Most
Valuable Brands” (Forbes, 2016). It is worth noting that their main competitor
Pepsi-Cola, is listed as number 29 on this same list (Forbes, 2016). Brands
that are easily recognizable tend to be more popular and have higher sales
figures. This basically means that their strength is in their stability.
Another strength that the Coca-Cola Company has is its
large distribution network. They are able to meet the needs of customers all
over the world because of their unique system. The main company owns the brand
and is responsible for global marketing efforts, but they actually do not
bottle or distribute the final products. They manufacture the syrups and
concentrates and then send them off to “bottling partners” in local communities.
The bottling partners are in charge of “manufacturing, packaging,
merchandising, and distributing the final branded beverages to our customers
and vending partners, who then sell our products to consumers”. This strategy
allows the bottling partners to distribute based on the specific needs of their
local community. (Coca-Cola, n.d.)
B. Weaknesses
One weakness for Coca- Cola that has been going on for
quite a while is the negative publicity associated with health concerns. Around
the mid-90’s to mid-2000’s era, an uptick of obesity in Americans had
researchers pointing their fingers at fast food and soda companies (Suddath,
2014). Coca-Cola took a lot of the heat, and has seen a decline in sales (along
with many other soda companies) since its peak in the late 80’s (Suddath, 2014).
The problem is that research has made it hard for the company to deny that their
main product is not a possible reason for national health concerns, so they
have had to bite the bullet, admit to their products problems, and try to come
up with healthier alternatives.
Another one of Coca-Cola’s weaknesses is the public’s concern
over the company’s water usage. In 2007, news broke that Coca-Cola was taking
control of the subterranean aquifers in some of the more underdeveloped
countries in which it operated (War on Want, 2007). And considering it takes
three liters of water just to make one liter of the finished products, many social
justice groups and local communities were understandably upset (War on Want,
2007). The biggest issue with overcoming the water sustainability problem is
that the process to make Coca-Cola will always require more water than what is
in the finished product. Even though the company has made steps to lessen the
excessive water usage (down to using 2 liters by 2015), there is still a lot of
public disapproval put on their tapping into natural resources (Coca-Cola,
2017) (War on Want, 2007).
C. Opportunities
While new health trends may have caused headaches for
the Coca-Cola Company, they are also a source of possible growth. The company
will be able to expand their current options in ways that may not have been
accepted by consumers in the past (Suddath, 2014). For instance, with Coca-Cola
Plus, the company can appeal to consumers looking for the newest health trend.
This meshes the ideal of trendiness and the classic Coca-Cola taste, without
going too far into the trends which can sometimes limit the size of consumer
market.
Coca-Cola should also continue taking advantage of the
advertising opportunities for younger markets. Younger generations have grown
up with Coca-Cola and know the brand well, but they have also seen the
tremendous shift in perspective caused by the rise in obesity. This negative
narrative will only grow stronger if the youngest generations are ignored by
the company’s marketing campaigns. However, by tapping into the culture of
e-sports (gaming tournaments with online viewers or audiences in stadiums),
Coca-Cola could become a major player in the minds of younger consumers.
D. Threat
As consumer’s tastes change, Coca-Cola has not been
the only company that has had to change its offerings. The company now has to
deal with incoming products from brands such as Dr. Pepper Snapple Group and
PepsiCo. Dr. Pepper Snapple Group has recently introduced Bai, a fruit water
drink that has little sugar and other artificial ingredients (Dr. Pepper
Snapple Group, 2017). And PepsiCo has been doing well offering its Naked brand
juices as a premium health drink offering (PepsiCo, 2017). It is also worth
noting that Pepsi has recently started offering a new mix of their popular soda
with 30% less sugar and no artificial sweeteners as Pepsi Next (Pepsi Next,
2015). This could be a threat to the success of the new ‘good-for-you’ offering
Coca-Cola Plus.
References
Coca-Cola. (2017). Improving Our Water Efficiency.
Retrieved from http://www.coca-colacompany.com/stories/setting-a-new-goal-for-water-efficiency
Coca-Cola. (n.d.). Our Company. Retrieved from
Coca-Cola: http://www.coca-colacompany.com/our-company/the-coca-cola-system
Dr. Pepper Snapple Group. (2017). Bai. Retrieved from https://www.drpeppersnapplegroup.com/brands/bai
Forbes. (2016). The World’s Most Valuable Brands.
Retrieved from https://www.forbes.com/powerful-brands/list/#tab:rank
Pepsi Next. (2015). Pepsi Next. Retrieved from https://pepsinext.ca/
PepsiCo. (2017). Better for You. Retrieved from http://www.pepsico.com/Brands/BrandExplorer#better-for-you
Suddath, C. (2014). Coke Confronts Its Big Fat
Problem. Retrieved from https://www.bloomberg.com/news/articles/2014-07-31/coca-cola-sales-decline-health-concerns-spur-relaunch
War on Want. (2007). Coca-Cola: Drinking the World
Dry. Retrieved from http://www.waronwant.org/media/coca-cola-drinking-world-dry
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