Coca-Cola: From 5-Cents Per Glass to World-Leading Company - Essay Sample

Introduction

Coca-Cola is one of the leading companies in the world. It was established in 1886 by Dr. John S. Pemberton. Pemberton introduced a distinctive taste in soft drinks which was then sold as soda. In the beginning, soft drinks were sold as low as five cents per glass. After the death of Pemberton, some parts of the company was sold to other stakeholders and this enhanced the growth of the company. As a way of improving its services, more machinery systems such as bottling technology was introduced to help in activities such as packaging. This technology made it possible for the establishment of large scale bottling services. Lack of effective packaging materials made it hard for the company to spread to other parts of the world. As such, competitors took advantage of the situation to dominate various parts which were already taken by Coca-Cola. However, in 1916, the company introduced more advanced bottlers which was so unique, especially when presented on the counter. In order to enhance its services, the company started promoting its products by giving free samples of soft-drinks. More adverts on newspapers and television were deployed so as to enhance products awareness. This was a key process that enhanced the demand and supply of the Coca-Cola Company. The unique taste of Cola-Cola products has made it to be the leading company producing soft-drinks. Currently, the management system of the company has ventured in various ways such as a partnership with football clubs to enhance selling. As such, more deports and sub-branches have been established in different parts of the world.

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In 1919, the company was bought at $25 million by several stakeholders. After this period, the company started selling its shares at $40 per share. If a person had bought shares by that period, one could have made about $9.8 million profit. In 2018, the net profit of the company was $1.248 billion which was about 19.22 decrease from the previous year.

Typically, the market segment is an essential factor that defines an effective target market. This technique is highly used by companies to determine appropriate products for various kind of clients (Belz and Julia, 10). Coca-Cola is one of the leading company does not target specific customers. However, the company targets all people in the world. As such, it used various market segments to remind its customers, who are all over the world, to purchase the many products it is producing. Although people from a different age can consume the company's products, most of its target market ranges between 12-30 years old. At this age, the demand rate for these products is so high. In most restaurants and fast foods, most customers who range at this age highly consume soft-drinks. Nature is an essential factor that influences the target market. In this case, the company aims at occasions where there is fun, joy, entertainment, and much more. Using these products on fun occasions make it looks so loving and enjoyable (Michelini and Daniela, 560).

Cola-cola has effective plans for market entry. Due to the high recognition rate, the company can freely enter the market. In most coolers and vending in the global, coca cola products have dominated. Due to market domination, the new entry of the product is much easier. Most customers recognize Coca-Cola products using its logo. Due to its unique style that is used to formulate the logo, it is much easier to identity Coca-Cola products. When a new product is introduced, the company integrate promotions and advertisement. This technique creates awareness and informs customers about the advantage associated with the new product. Additionally, for many years, Coca-Cola products are known for their quality. As such, it is much easier for customers to accept a new product. Most of the products which are produced in the company abide with most cultures. This action makes it easier for a product to be accepted and thus, creating a platform that makes it easy for entry. When a product does not match with a certain culture, the company produces a wide number of products so that customers can choose products that match with their needs. Finally, the effective application of market segment is an essential technique which makes it easier for products entry.

The company has a good market segment due to effective management technique. Geographic segmentation which makes it easier to dominate a wide part of the world. Other essential segments are products, place, and demographics. Currently, the company is looking for more opportunities as a way of enhancing its growth. Continuous introduction of new products has been a key that the company uses to increase its opportunities. In this case, more sophisticated flavors are regularly being introduced in the company to maintain its customers. In this case, customers are given a chance to select a wide number of products from the same company. Application of effective marketing strategies makes it easier for the company to dominate wide customers in the world. This is a technique which is used to compete with other companies such as Pepsi which are producing the same product (Belz and Julia, 10).

Coca Cola has several critical areas of growth which are influenced by customers' needs. At first, the company critically pay a lot of attention to the nature of products. The company ensures that all products which are produced serve customers' needs. As such, they effectively focus on customers' experience after taking a product. Additionally, the company focuses on technology which is an essential component which influences growth rate. If a company has well-developed technology, the output will be high, and thus, more customers will enjoy the service.

Coca Cola Company has been using AdWords a way of improving customers' awareness. In order to enhance its services, the company should create ads which are displayed on the right individuals. As such, the company should use techniques such as higher click-through rate to measure the number of customers who have seen the ad. Additionally, the company may also deploy cost per click and paid search engine which ensures that the advertising company is only paid based on the number of customers who clicks the ad.

Value spectrum analysis is an essential component that helps a company to measure magnitude related to energy sources. In Coca Cola Company, the management may deploy descriptive, diagnostic, predictive, and prescriptive analysis when creating value spectrum. This concept may help to analyze how a product in a clear and easier manner.

Key performance indicators (KIP) is an assessable value that show if a company has the ability to achieve its goals. In coca cola, KIP is an essential factor that helps management to understand how other components are working (Gattorna, 49). This is done by establishing a tracking system which helps to determine how departments and sub-branches are performing. Brand health is a significant KIP indicator which is used by the management to assess its performance. Additionally, the company uses the distribution volume to measure its values performance.

Works Cited

Michelini, Laura, and Daniela Fiorentino. "New business models for creating shared value." Social Responsibility Journal 8.4 (2012): 561-577.

Belz, Frank Martin, and Julia Katharina Binder. "Sustainable entrepreneurship: A convergent process model." Business Strategy and the Environment 26.1 (2017): 1-17.

Gattorna, John. "Strategic supply chain management Creating shareholder value by aligning supply chain strategy with business strategy." Strategic Supply Chain Alignment. Routledge, 2017. 32-52.