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BackgroundThe Coca-Cola Company (NYSE: KO) is the world's largest beverage company, refreshing consumers with more than 500 sparkling and still brands and more than 3,800 beverage choices. Led by Coca-Cola, one of the world's most valuable and recognizable brands, the company’s portfolio features 20 billion-dollar brands, 18 of which are available in reduced-, low- or no-calorie options. Their billion-dollar brands include Diet Coke, Coca-Cola Zero, Fanta, Sprite, Dasani, Vitaminwater, Powerade, Minute Maid, Simply, Del Valle, Georgia and Gold Peak. Through the world's largest beverage distribution system, they are the No. 1 provider of both sparkling (carbonated soft drinks) and still beverages.  More than 1.9 billion servings of their beverages are enjoyed by consumers in more than 200 countries each day. With an enduring commitment to building sustainable communities, the Coca Cola company is focused on initiatives that reduce their environmental footprint, create a safe, inclusive work environment for their associates, and enhance the economic development of the communities where they operate. Together with their bottling partners, they rank among the world's top 10 private employers with more than 700,000 system associates.The Coca Cola Company has remained 100% a beverage company. It controls more than half the global market in carbonated soft drinks as well as substantial chunks of the somewhat larger non-carbonated or still segment. PepsiCo started out as a beverage company like the Coca Cola Company, although PepsiCo’s biggest business now, due to diversification, is snacks with brands like Frito Lay. They still remain #2 in soft drinks and compete aggressively in every other product-market that the Coca Cola Company competes in. Dr. Pepper/Snapple is the 3rd biggest marketer of soft drinks, especially in the United States. There are a larger number of competitors competing in the still beverage product markets.Competitive AnalysisIn the United States, Coca Cola Company brands compete in 5 primary product markets. The largest product market they compete in is still the carbonated soft drink market (CSD) with Coca Cola Classic, Diet Coke, and Sprite selling 4.32 Billion gallons per year in the United States. Trademarked Coca Cola soft drinks account for 44%. The remaining soft drink brands including Coke Zero, Fanta, Barq’s, Caffeine Free Diet Coke, Cherry Coke, Mellow-Yellow, and Pibb combined sell only 1.7 Billion gallons per year. Although demand for carbonated soft drinks continues to decline, the Coca Cola brand still remain their largest product category both in terms of units sales and revenue generation.In addition, in the United States they also compete in four additional primary product markets. The first is the juice and juice drink market with key brands such as Minute Maid and Simply Beverages. The second is the water and water beverage market with brands such as Dasani and Glaceau Vitaminwater. The third is the sports drink market with Powerade, and finally the newest product market they compete in, teas and coffee with the Gold Peak and Illy brands. A number of other smaller brands might be offered in these primary product markets too. For a more detailed overview of products and brands offered only in the United States go to coca-colaproductfacts.com.Total global sales revenue worldwide has been relatively flat in 2016 with the continuing decline worldwide of demand for carbonated soft drinks (sparkling beverages) although sales of still beverages continue to rise. Estimated worldwide company revenue for 2016 has been forecast at $46 billion, a 3% increase over 2015. Coca Cola Company sales for the United States market only is 46% of worldwide non-alcoholic beverage sales and is estimated to be $21.3 billion. Revenue from Coca Cola’s US Carbonated soft drink sales is estimated to be $11 billion or 52% of total U.S. sales. Thus, sales from all other still beverage brands and products sold in the United States in the United States for 2016 is estimated to be $10.3 billion.Core Marketing-related Capabilities and focus as described in the Coca Cola Company’s 2015 Annual ReportConsumer MarketingMarketing investments are designed to enhance consumer awareness of, and increase consumer preference for, our brands. Successful marketing investments produce long-term growth in unit case volume, per capita consumption and our share of worldwide nonalcoholic beverage sales. Through our relationships with our bottling partners and those who sell our products in the marketplace, we create and implement integrated marketing programs, both globally and locally, that are designed to heighten consumer awareness of and product appeal for our brands. In developing a strategy for a Company brand, we conduct product and packaging research, establish brand positioning, develop precise consumer communications and solicit consumer feedback. Our integrated marketing activities include, but are not limited to, advertising, point-of-sale merchandising and sales promotions.We are focusing on marketing strategies to drive volume growth in emerging markets, increasing our brand value in developing markets and growing profit in our developed markets. In emerging markets, we are investing in infrastructure programs that drive volume through increased access to consumers. In developing markets, where consumer access has largely been established, our focus is on differentiating our brands. In our developed markets, we continue to invest in brands and infrastructure programs but generally at a slower rate than gross profit growth.Commercial LeadershipThe Coca-Cola Company sells no products direct to consumers. Thus, our customers are really the millions of customers around the world who sell or serve our products directly to consumers. We focus on enhancing value for our customers and providing solutions to grow their beverage businesses. Our approach includes understanding each customer’s business and needs — whether that customer is a sophisticated retailer in a developed market or a kiosk owner in an emerging market. We focus on ensuring that our customers have the right product and package offerings and the right promotional tools to deliver enhanced value to themselves and the Company. We are constantly looking to build new beverage consumption occasions in our customers’ outlets through unique and innovative consumer experiences, product availability and delivery systems, and beverage merchandising and displays. We participate in joint brand-building initiatives with our customers in order to drive consumer preference for our brands. Through our commercial leadership initiatives, we embed ourselves further into our retail customers’ businesses while developing strategies for better execution at the point of sale.Franchise LeadershipWe must continue to improve our franchise leadership capabilities to give our Company and our bottling partners the ability to grow together through shared values, aligned incentives and a sense of urgency and flexibility that supports consumers’ always changing needs and tastes. The financial health and success of our bottling partners are critical components of the Company’s success. We work with our bottling partners to identify processes that enable us to quickly achieve scale and efficiencies, and we share best practices throughout the bottling system. With our bottling partners, we work to produce differentiated beverages and packages that are appropriate for the right channels and consumers. We also design business models for sparkling and still beverages in specific markets to ensure that we appropriately share the value created by these beverages with our bottling partners. We will continue to build a supply chain network that leverages the size and scale of the Coca-Cola system to gain a competitive advantage.Bottling and Distribution OperationsMost of our Company beverage products are manufactured, sold and distributed by independent bottling partners. However, from time to time we acquire or take control of bottling operations, often in underperforming markets where we believe we can use our resources and expertise to improve performance. Owning such a controlling interest enables us to compensate for limited local resources; help focus the bottler’s sales and marketing programs; assist in the development of the bottler’s business and information systems; and establish an appropriate capital structure for the bottler.Case Assignment:The focus of this case is on growth strategy alternatives and helping you to understand each of the different growth strategies that businesses can use to pursue their marketing goals and objectives and how you might implement different growth strategy alternatives.In 2016 Coke continued to struggle with growth declines.  Its performance as a company is unacceptable and considered weak compared to its key competitor, Pepsi.  Clearly there is a critical need to consider options for growth, especially as growth continues to decline for its core soft drink brand, Coca Cola.  This is a case which is intended to give you an opportunity to consider using a number of the 9 possible corporate growth strategies.  You will identify a growth strategy you are pursuing for each alternative and give specifics about how you might implement each alternative with your idea for marketing actions. Don’t just pick a growth strategy and explain why without an action plan. After you have described and considered a number of alternatives, make your recommendation for just ONE alternative that you think would contribute the most toward reaching the company revenue objectives in the United States market only. This is your opportunity to use your creative juices to develop a good marketing recommendation for increasing growth at a time when the Coca Cola Company is doing the exact same thing.Strategic objective:  To increase sales by 10%, from $21.5 Billion to $23.4 Billion, in 2017 for the Coca Cola Company in the United States markets only? Since company growth was only about 3% in 2016, this is a rather aggressive growth objective.1) Consider at least 4 different growth strategies. Define each growth strategy alternative with enough details to indicate how you would plan to implement that growth strategy. Be sure to list and describe each of your alternative growth strategies that you are considering.2) From your list of possible alternative growth strategies, select ONE and only one of your alternatives in #1 above that you believe would contribute the MOST to increasing sales by 10% in the United States market only in 2017 AND explain why you think this was your best choice?The best way to submit this written assignment is in memo format to me as an attachment in a Word or PDF file format.Also, your recommended strategy in #2 above is all that is necessary to submit as your first group participation post for next week’s online discussion of the case. You don’t even have to include your reasons for making this choice.11/21/16 rev.
Case Assignment

Case Assignment

Question # 00540783 Posted By: burgerrubio Updated on: 06/05/2017 06:53 PM Due on: 06/09/2017
Subject Marketing Topic Marketing Tutorials:
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Have a Marketing assignment due this Friday. I will upload 2 documents. One has the questions and the other has the possible 9 growth strategies.

Week 1 - Coca Cola (see page Case Assignment) for questions

Week 1 - Lecture Notes see pages 6-16 for (9 growth strategies)

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Week_1_-_Case_1_Coca_Cola.docx (19.11 KB)
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  1. neil2103
    Tutorial # 00537922 Posted By: neil2103 Posted on: 06/05/2017 07:18 PM
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