I.

Problem

Coca Cola Co. has always been one of the world’s most recognized global brands.

However, even a leading company at its peak can plummet if the company does not allow

itself to grow. In the case of Coca Cola Co., its unwillingness to tamper with the

structures and beliefs formed during its glory years has left it unable to adapt to consumer

demands for new kinds of beverages that have eaten into the cola king’s market share. Its

competitors gradually catch up with Coca Cola Co. through product diversification and if

no action is taken, the company will be completely left behind.

II. Areas of Consideration

A. Strengths

 Global presence

 Created the best-selling brands

 Strong marketing and advertisement

 Largest market share

 Dedicated employees to its value and mission

B. Weaknesses

 Growth is low and slow

 Lack of product innovation

 Friction between Coca Cola Co. and its bottlers

 Supply is restricted

 Resistance to diversification
 C. Opportunities

 Company growth

 Established brand name

 Aggressive acquisition

 Company expansion to countries with no established market

 Will find new generation to continue the business

D. Threats

 Changing consumer taste and preferences

 Competition with other companies, such as Pepsi

 Price pressure from international market

 Coca Cola products considered unhealthy due to high sugar content

 Increased variety in beverage products

III. ALTERNATIVE COURSES OF ACTION

 Brand reinforcement on established products

 Innovative marketing on new products

 Product development on non-carbonated drinks

IV. ANALYSIS

BRAND REINFORCEMENT ON ESTABLISHED PRODUCTS

One of the strategies that Coca Cola, Co. can implement to improve its growth is

brand reinforcement for its soda-pop brands: Coca-Cola, Diet Coke, Sprite, and

Fanta. Coke’s sodas constitute 82% of its worldwide beverage sales, far more than its
 closest competitor, Pepsi, which is gaining on Coke’s lead in the U.S. beverage

market. Brand reinforcement is defined as an activity associated with getting those

consumers who have tried particular brand to become repeat purchasers along with

attracting new users. This strategy will help the company maintain its market share in

its most selling products and protect it. If this strategy proves to be effective, the

company will benefit through increased loyal customers and boost in sales. Brand

reinforcement can be done through reinforcement advertising, which is intended to

reassure customers that they have made a right choice. Coca Cola, Co. shall shift back

its resources from distribution to advertising for such shift proved to be costly.

INNOVATIVE MARKETING ON NEW PRODUCTS

The company has been doing product innovation by itself even though it has

started well behind its competitors which have already conquered several market

shares for other specific beverage-type segments. Improving market shares on new

products will certainly boost sales for the company. To achieve that, the company

shall do innovative marketing on its new product. Innovative marketing is the

implementation of a new marketing method involving significant changes in product

design or packaging, product place, product promotion or pricing. It is aimed at better

addressing customer needs, opening up new markets, or newly positioning a

company’s product on the market, with the objective of increasing the company’s

sales. The difference of such method is that Coca Cola, Co. shall develop a new

marketing method that has never been adopted by the company. The reason that there

is a difficulty on selling new products is that the company might have been using an
 out-dated marketing strategy as the customers, maybe even loyal ones, are not

completely enticed. This strategy proves to be more difficult to implement than the

first alternative for the board of directors are resistant to anything new. However, if

such implementation is successful, overall market share of the company will improve

greatly.

PRODUCT DEVELOPMENT ON NON-CARBONATED DRINKS

Coca Cola, Co.’s closest competitor, Pepsi, Co. has proven itself as a worthy

opponent through courage. Knowing that playing in carbonated soft drinks

competitively would be disadvantageous in many ways. Pepsi made sure that it will

grow on areas where there is growth which is evidenced by its consistent high sales

and earnings growth. Coca Cola, Co. has to step up its game and introduce something

new in the company. One alternative that the company can consider is product

development on non-carbonated drinks. Product development is the creation of

product with new or different characteristics that offer new or additional benefits to

the customer. This may involve modification of an existing product or its

presentation, or formulation of an entirely new product that satisfies a new defined

customer want or market niche. For the company’s case, products other than

carbonated drinks should be created to meet customers’ new tastes and preferences.

In the long run, the company may suffer losses if it continues to believe that a

carbonation drink will keep them ahead in the game. Through continuous

development of new products, the company also gains more information into

providing good customer satisfaction. With the company’s good financial capacity,
 acquisition of other beverage companies would be an addition to the company.

Through product development, the company can gain access and insights on new

markets other than carbonated drinks. This strategy requires more time and money to

make it fully effective.

V. CONCLUSION AND RECOMMENDATION

Coca Cola Co. will eventually fall unless it addresses the issues the company is

currently facing. It will go stagnant if no actions are taken to reach a new peak. An

unwillingness to change will be the demise of the company and no one does want to give

up its crown to others. All three alternatives presented have the same goal of boosting

sales for the company and protecting its big market share. In a marketer’s perspective, a

change in marketing strategy can not only keep its loyal customers but attract new

customers as well. But relying on few products selling themselves will only go so far.

The company should always look beyond. Of the three alternative course of action, the

proponents believe that product development on non-carbonated drinks is the best option

for optimum growth. While maintaining the brand image of its most selling product, the

company should not stop being creative. Addressing the threat of new tastes and

preferences as well as increased variety in beverage products through product

development will make the customers keep coming back.

Although the proponent completely suggests product development, the company

should all refocus in its mission and vision. A company with no goal has no future. It is

crucial that the company be guided with a concise goal so that it can continue to move

forward.