Coca-Cola is a brand that has positioned itself as a brand that has a refreshment value, providing refreshment to buyers who want to purchase it in large quantities. The brand has also remained consistent in its marketing strategy, which has helped to give the brand a steady stream of loyal consumers who purchase a Coca-Cola drink every day. Continue reading to learn more about the world’s most famous beverage brand via this Coca-Cola SWOT analysis.
John Pemberton founded Coca-Cola in Atlanta in 1886. Coca-Cola quickly became the world’s most recognized, renowned, and widely distributed brand. This megacorp’s CEO at the moment is James Quincey. According to Business Insider, 94% of the world’s population instantly recognizes the brand by its red and white Coca-Cola logo. Every second of every day, more than 10,000 Coca-Cola soft drinks are consumed.
Coca Cola Swot Analysis Strategic Factors
The Coca-Cola Company is an American multinational corporation headquartered in Atlanta, Georgia, United States, that produces and markets ready-to-drink beverages, primarily under the Coca-Cola and Minute Maid brands. It is the world’s largest manufacturer of nonalcoholic beverages, with a market share of almost 43 percent in 2010.
Here is the Swot Analysis of Coca Cola:
Coca Cola Strength: Internal Strategic Factors
Strong Brand Positioning
The Coca-Cola brand is well-known and widely recognized throughout the world. The brand has a good reputation, which helps it to maintain its position as the number one beverage brand in the world. In addition, the company’s strategy of keeping the product line simple and sticking to its core values has helped to create a strong brand identity for the company.
Brand Equity
The company has invested heavily in the development of its brand. The company has spent billions of dollars on developing the brand and has made sure that it is well known and widely recognized in the market. Coca-Cola received the highest brand equity award from Interbrand in 2011. With its vast global presence and distinct brand identity, Coca-Cola is undoubtedly one of the most expensive brands with the highest brand equity.
Reliable Marketing Strategies
The company’s marketing strategies have been consistent and reliable over the years. The company has successfully used various marketing strategies to develop its brand. These marketing strategies include advertising, packaging, and promotion. The company has used these strategies to ensure that the target audience recognizes its products.
Customer Loyalty
Coca-Cola has been able to create a reputation for being a trustworthy and reliable brand. Customer loyalty has been developed through the company’s marketing strategies. The company has consistently delivered on its promises to its customers. The company has provided its customers with high-quality products, which have helped it gain customer loyalty.
Distribution System
Coca-Cola has a highly efficient distribution system. The company has a network of distributors responsible for distributing the company’s products to retail outlets. The company has also established strategic partnerships with retailers and distributors to help them reach their customers. The company has a good distribution system, which has helped it to gain a competitive advantage in the market. Around 900 bottling plants and nearly 225 bottling partners are part of the company’s global bottling network.
Coca Cola Weakness: Internal Strategic Factors
Product Line Consolidation
The company has been experiencing a decline in its profitability. It is because the company has been losing market share to other competitors. The company’s market share declined from 30 percent in 1999 to 23 percent in 2009. The company’s focus on cost reduction has been detrimental to its profitability.
High Capital Expenditure
Capital expenditure has been high over the years. The company has invested billions of dollars in developing its brand. It has resulted in higher operating costs. The company’s capital expenditure increased from $3.5 billion in 2004 to $4.8 billion in 2009. The company has also been spending a lot of money on research and development. It has been detrimental to its profitability.
Competition with Pepsi
Coca-Cola finds Pepsi to be a pain in the neck. Coca-Cola would have been a clear market leader if it hadn’t been for Pepsi. The competition between these two brands is fierce, and we don’t expect Pepsi to surrender so easily.
Low Product Diversification
Whereas Pepsi has made a smart move by diversifying into the snack segment with products such as Lays and Kurkure, Coca-Cola has remained absent. Pepsi’s segment is also a good revenue driver, and these products would have been a revenue driver for the company if Coca-Cola was already present.
Absence of healthy beverages
Coca-Cola has not been able to make a dent in the health beverage market. The company has not been able to offer any healthy beverages to its consumers. The company’s inability to do so has limited its growth.
Coca-Cola Opportunities: External Strategic Factors
New Product Launches
Coca-Cola launches new products every year. It helps the company to keep its name in the market. It also helps to create a new image for the company. The company has launched several new products in the past few years. These products include Diet Coke, Sprite Zero, and Fanta Zero.
Expansion of Distribution Network
The company is expanding its distribution network to help it reach more consumers. By cross-selling their products, they will be able to increase revenue from existing customers. The same supply chain that distributes their beverages could also distribute these snacks, reducing supply chain costs.
Bottled Drinking Water
Coca-Cola owns several bottled water brands, including Kinley. Coca-Cola has a lot of room for growth in this market segment. To avoid public criticism, there is a chance to expand and introduce more healthy drinks to the market.
Coca-Cola Launches TikTok Challenge in the US
In an attempt to bring back the youth, Coca-Cola launched a social media challenge called the “TikTok Challenge” in the United States. The challenge is open to all students in the US. Students can win prizes such as iPads, laptops, and more. The winners will also be featured on the company’s social media channels.
Coca-Cola Threat: External Strategic Factors
Water controversies
The company has faced many controversies regarding the use of water. The company has been accused of using too much water in its manufacturing process. It has led to accusations of water pollution.
A downturn in the Economy
The company has faced a downturn in the economy. The company’s sales have been affected because of this. Recent events had a negative impact on business operations, supply chains, and revenue for many global companies. Due to the global financial crisis, restaurants, theatres, and other venues that contribute roughly half of Coca-Cola’s revenue will remain closed in 2020.
Increasing Health Awareness
With the growing health awareness among consumers, people are demanding healthier options. Consumers are becoming more aware of the ingredients in the food and beverages they consume. It has forced many companies to start offering more nutritious alternatives to their products. The company should consider introducing more healthy beverages to its portfolio.
Indirect Competitors
Coffee shops such as Starbucks, Café Coffee Day, and Costa Coffee are growing in popularity. These franchises compete with Coca-carbonated Cola’s beverages in a healthy way. They may not be a significant competitor for Coca-Cola, but they do dent the beverage market. Health drinks like Real and Tropicana and energy drinks like Red Bull and Gatorade are indirectly stealing market share.
Final Thoughts
We hope you enjoyed this blog post that provides a Coca-Cola SWOT analysis. If you plan to market your own brand or produce a product that competes with coca-cola, this blog post will provide a great introduction to the company. It is a great way to gain insight into just what makes coca-cola such a successful brand, and we hope you’ll be able to use this information to benefit your business. Thank you for reading. We would love to hear from you!
