Ch. 4 - The Marketing Environment

Target Market

     Coca-Cola does not have one specific target market. They market to all people, of all backgrounds, in every social class. Since Coke is relatively cheap, it is enjoyed by people of all incomes, and in a multitude of sales environments (Restaurants, grocery stores, Stadiums, Etc.).     

 Regulatory Issues

     Coca-Cola's marketing environment is becoming increasingly hostile. This is mostly due to the threat of government regulations, and to public health awareness about the product. While there are not many state regulations on the soda industry, numerous laws regulating the industry are being debated across the country, in state and local governments.

    Recently, the California state legislature has debated a soda tax, a penny-per-ounce tax on all sugary drinks. It's estimated that this would reduce sales in the state by 10 to 15 percent. Also, a law was passed in New York City last year, banning sugary beverages over 16 ounces. In response to this, coke has under numerous health initiatives, these include:

• Offering low, or no calorie beverages in all markets.
• Providing transparent nutrition information, including calories on the front of all packages.
• Supporting physical activity programs in every country where Coke does business.
• Not adverting to children under the age of 12.

Ch. 3 - Ethics & Social Responsibility

     To combat unethical practices, and to improve their global image, Coca-Cola has taken it upon themselves to give ethics training to all newly hired employees, and to all existing employees every 3 years. In addition to this, they offer online ethics training to all of they're associates, and ask that all managers certify their compliance with the Code of Business Conduct, Human Rights Statement, Workplace Rights Policy and the Company’s anti-bribery requirements

     Yet despite these efforts, Coca-Cola has faced numerous lawsuits in the past decade from Guatemala. They mostly have to deal with unethical collective bargaining practices. Numerous bottling plants owned by the company have been reported to take violent action against union leaders, and against unionized employees. The company was accused of shooting these workers, breaking into they're homes, and threatening them, along with they're families. However, when these cases were tried in court, and none of these charges were upheld. 

     Currently, Coca-Cola has not undertaken any sustainability initiatives, and is not involved in any cause  related marketing. For the most part, Coca-Cola is a very ethical corporation, and at least at the top-level management, has not been involved in any unethical practices.

Ch. 2 - Strategic Planning for Competitive Advantage

Part of  Coca-Cola's mission is to refresh the world, And to do so they plan on investing heavily in large foreign markets. Coke realizes that it needs to heavily invest in these markets, in order to gain a significant market share. Because of this, they plan to invest:

• Five billion in India by 2020
• Three billion in Russia by 2016
• Eight billion in Brazil by 2016
• And 300 million in Vietnam by 2015

SWOT Analysis

Strengths- Coca-Cola's greatest strength is brand recognition. 94% of the world can recognize the Coca-Cola label. When people buy a can of coke, they are getting a good, quality, consistent product. Also, they hold a significant portion of the global market share. Coca-Cola operates in over 200 countries around the world.

Weaknesses- The biggest threat to Coke is that they're beverages are very unhealthy. Recent studies have shown that drinking soda adds 15 pounds per year. In an increasingly health conscience society, this could be a very big problem.

Opportunities- Coca-Cola has a great opportunity to expand it's market share. It's investing heavily in foreign markets, and in healthier soft drinks. It has begun producing various non-carbonated drinks such as, Vitamin Water and Aquafina.

Threats- Health problems is the only thing holding Coke back. Recently, governments have started planning to either; ban the product in certain portions, place an additional tax on it, or both. If these plans are implemented throughout the world, it would significantly reduces Coca-Cola's sales. 

Ch. 1 - Overview of Marketing (Brief History and Mission Statement)

Mission Statement

• To refresh the world...
• To inspire moments of optimism and happiness...
• To create value and make a difference

A Brief History

     The Coca Cola beverage invented by pharmacist John Stith Pemberton in 1886. The formula and brand was bought in 1889 by Asa Candler who incorporated the Coca Cola company in 1892. In 1916, the company began manufacturing its famous bottle, which remains signature shape of Coca Cola today. In 1928, Robert Woodruff, whom were the company's president at that time, led the expansion of Coca Cola overseas when introduced the Coca Cola to the Olympic games for the first time. In the 1960s the company decided to expand with new flavors- Fanta, Sprite and Fresca, In addition it acquired the Minute Maid company, adding an entirely new line of business juices to the company. The 1980s, a time of much change and innovation at the company. The introduction of  Diet Coke, which become the top law-calorie drint in the world. The company's presence worldwide was growing rapidly and year after year Coca Cola found a home in more and more places in the world.  As for today, Coca Cola has grown to be the world's most ubiquitous brand, with more than 1.4 billion beverage servings sold each day.