The problem of Coca-Cola Company is that their sales of soda products are declining which affects their

overall profitability. The decline in the demand for sodas are linked with the sugar issue of soda and how
it negatively affects the health.

The company utilized their expertise in advertising to mitigate the negative effect of the issue on their
brand. Their advertise, Coming Together, actually draw flaks from critics because according to them the
advertisement is just a marketing strategy to them, but doesn’t really address the problem.

The advertisement did not make a significant effect on the profitability of Coca-Cola.

They also diversified their products because they found out that they are too dependent on sodas. The
consumers’ preference was shifting into healthier beverages like bottled water and fruit juices. Coca-
Cola focused on the production of bottled water and which really helped them to become profitable
eventhough soda demand remain flat

They also undergo restructuring so that they can cut on costs and segments that are cost intensive, but
have low profit margins. This in turn, lower their costs significantly, which helped their profitability.