Coca Cola Evaluation
Making as much profit as possible is probably Coca Cola’s main objective. With the profit they make they can use it to widen their portfolio thus achieving their portfolio objective, carry out more research and hire more employees which means they can achieve their people objective. Portfolio – “Bringing to the world a portfolio of beverage brands that anticipate and satisfy peoples’ desires and needs. ” Having a wide range of portfolio means that Coca Cola can attract to a wider audience. It also means that they can meet the different needs of their customers.
People – “Being a great place to work where people are inspired to be the best they can be. ” Having a great place to work means Coca Cola employees can complete their work more efficiently. It also means that Coca Cola can maintain their reputation. Partners – “Nurturing a winning network of partners and building mutual loyalty. ” Having a variety of different partners mean they can attract to more people. It also means that they can advertise their product for example at the World Cup fair. Planet – “Being a responsible global citizen that makes a difference. ”
Coca Cola has to try a do
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Having a wide range of promotion has helped them to attract customers to their products. Promotion is a way of Coca Cola advertising their products, but like every promotion, it will cost them money to start up. One successful way they have promoted their products is by advertising on TV for example, they have advertised on many channels such as ITV, BBC, Channel 4 etc. Advertising on TV has meant they can attract to a wide audience some people may prefer watching one TV channel than another in which they are bound to come across a Coca Cola ad.
As well as TV ads, Coca Cola have also sponsored a variety of shows and events including ‘Wayne Rooney’s Street Striker’ on Sky One and The Olympics. Coca Cola mainly sponsor sporting type events as Coca Cola is seen as sporting drink – a beverage that replenishes the thirst according to their motto: “Adds a refreshing relish to every form of exercise” Although advertising and sponsoring has cost them, it is a risk they took in order to increase sales and to get more customers Another promotion they have promoted and is still carried out today it their website http://cokezone. co. uk.
They have put special codes on their products which the person enters on their website to collect points. These points can then be redeemed for hundred of prizes including concert tickets, video games, footballs etc. This promotion is use by Coca Cola to set it aside from their competitors like Pepsi as they don’t offer it. Another ways in which Coca Cola has successfully met the profit objective is the pricing they set their products at. They don’t want to set the price too high as people won’t be able to afford it. At the same time, they don’t want to set the product too low as their customers may think the product has a low quality.
One pricing method they used was physcholigical pricing. About 2 years ago, Coca Cola had the ’99p’ marked price on their Coca Cola bottle. This was effective as the customers could see the prices on the can itself instead of looking around for it. A way to ensure that Coca Cola makes a profit is by using cost-plus pricing. This is when you set the price after deducting the costs such as packaging, raw materials, labour etc. This method however I feel isn’t the strongest as it means Coca Cola would have to set a higher price which people aren’t willing to pay.
Another pricing they could use it competition pricing. This is setting a cheaper price than your competitors, in Coca Cola’s case, Pepsi. This doesn’t really impact Coca Cola as they’re already the market leaders and there are more people who have brand loyalty towards Coca Cola. The strongest method I think Coca Cola should use is value-based pricing. This is when you base the price based on what the product is worth to the customers. For example, If Coca Cola think highly of their beverages, then they can set a higher price as they would still be likely to buy it.
With this method Coca Cola ensures they are getting the maximum amount of customers whilst at the same time, they are maximising profit. Portfolio Having a wide range of portfolio has meant that they can gain different types of customers. For example, they have introduced they diet and zero range such as diet coke and coke zero to attract to customers who are trying to cut down on sugar level and people who are trying to maintain their weight. There are two ways in which Coca Cola develops their portfolio. The first way is to buy products from other companies.
An example of a product they bought is Glaci?? au Vitaminwater from Darius Bikoff. The advantage of this method is that saves Coca Cola time and money they would have to spend on carrying out market research. Another advantage is that the products are already familiar to consumer therefore they don’t have to spend a lot of money on advertising. However the disadvantage of this method is that it would could them a lot of money buying the products, in Glaci?? au Vitaminwater, it cost them $4 billion. The second method of developing their portfolio is to develop their own products.
There are many examples of this such as Fanta, Sprite, Relentless, Powerade and Minute Maid. The advantage of this method is that they can target to a wider audience. However the disadvantages of this method are that a lot of time and money is spent on research. They also have to get the product aware to the customers which mean it will cost them on advertising. Another way Coca Cola achieves their portfolio objective is by innovative. Being innovative has allowed Coca Cola to come up with ideas of products that would appeal to their customers.
One example of how they did this was the football shaped bottle. They released this at the time of the FIFA world cup as football talked about a lot during that period of time. This product appealed to football fans which as a lot as it was during the world cup. Another innovative idea they released was the orange bottling. This was effective as the customers could recognise the flavour of the drink without actually reading the label. They put these colours on their limited range such as Coca Cola blackcurrant and Coca Cola vanilla.