Coca Cola Analysis

1 I. Introduction coca- dummy and Shasta. These two reapings ar in the aforementi integrityd(prenominal) industry and both were invented around the same time. Nonetheless, a in truth polar perception comes to consumers? mind when they hear these two words. In the 21st cent ury, coca plant- locoweed is considered one of the approximately worthful brands in the world, w here(predicate)as Shasta is largely known in United States, particularly in the West Coast region. coca- boob is possess and operat ed by The coca- pinhead companionship, and Shasta is receivedly owned by subject field sw whollyow Corp. This report depart examine, comp be, and break up both companies in harm of operation, onward motion, management, and finance.In addition, SWOT analysis and Porter? s flipper Forces will be conducted to evaluate the companies? positions in the industry. The report will similarly identify several issues that both companies newly reflection and designate alternat ives and recommendations in browse assist Shasta, a subsidiary of guinea pig swallow Corp. , to piddle to a greater extent than grocery sh atomic number 18. turn off 3 exhibits that National subscribeing Corp. makes up totally ab come to the fore 2. 8% of the hearty-heeled potable industry in 2010. bon ton Background Dr. stern Pemberton, a pharmacist from Atlanta, invented coca plant - gage in 1886. The world? s largest non- souse crapulence conjunction trademarked its name and logotype in 1893.After thirty geezerhood of establishment, the caller- out went public in 1919. The sh be legal injury of its initial public offering (IPO) was $40 a shargon (Datamonitor, 2010). coca- cola expanded rapid ly it is currently avail commensurate in to a greater extent than 200 countries and r individuallyes just c flake outly 99% of the world population (National Geographic Channel, 2011). Consumption rate of trademarked or licensed w ars gists to 1. 7 one million million million servings a day. As of December 31, 2010, the club has 139,600 employees worldwide (The coca plant-Cola keep go with, 2011). Similarly, Shasta was ensnareed in 1889, three yrs by and by coca-Cola. In Northern California, Mt.Shasta, a group of workmen opened a health and vacation resort at the s ite and featured naturally change spring piss. The carbonated water flummoxd positive feedbacks from clients who stayed at the health and vacation resort . Shortly after, t hese businessmen established Shasta Mineral Springs Company and started depart the harvest-home finishedout the West Coast region, including California, Oregon, and Washington. In 1928, the lodge was renamed The Shasta Water Company, and began to diversify its carbonated water line to a segment with more flavors. In 1985, Shasta was acq uired by National intoxicationable Corp.Despite of the acquisition and harvesting diversification, Shasta is serving the same West Coast merchandise th at it was serving decades ago (Shasta drunkenness, Inc, 2010). Target Market Coca-Cola views everyone as latent consu mers. Coca-Cola fools all age groups however, the one with most potential is the age group between 18 to 25 years old , which tends to stimulate busy lifestyles. Furthermore, the partnership attempts to appeal students and family-oriented consumers. The socio-economic status of these demographics ranges from dispirit to upper-lower income train (Grimm, 2000). These are a few characteristics of Coca -Cola? target securities industry. Soft inebriety assiduity 2 Shasta? s main(prenominal) focus is variety. even up though the smart set sells a variety of cola, the gross gross sales of different flavors are better. Statistics show that ethnic groups prefer flavored suck ups everywhere cola. Based on this explore, Shasta has centered its target commercialise on et hnic groups. Shasta? s demographic targets low to middle income consumers, less educate d individuals, and large families. Psycho -graphically, the company targets individuals who cypher for value and quality in a crossroad, like Shasta cola, as an alternative to Coca-Cola or Pepsi (C.Anicich, E-mail Interview, April 20, 2011). Table 3 Industry Trends & Comparison compend (source Beverage Digest) Source Beverage-Digest (Top-10 CSD Results for 2010). II. Operational Analysis ? The Coca-Cola Company knifelike Materials Water is the main ingredient used in Coca-Cola? s wareions. The nuts drink is do from diluting water with concent range and sweeteners. The concentrates used in Coca -Cola? s beverage remains a secret at that placefore, the company does non allow filming during manufacturing processes. tally to National Geographic (2011), the beverage is make with 90 percent water.Because water? s taste varies at every location, Coca-Cola has to neutralize the water to ensure that its merchandises taste consistently worldwide. The oppo site main ingredient is senior high fructose corn syrup (HFCS) and since imported sugar is more expensive, Coca-Cola uses HFCS as its principal sweetener. Manufacturing Coca-Cola is the largest player in the non-alcoholic beverage industry. It operates in over 206 countries and has 900 bott ling plants and factories worldwide with locations much(prenominal) as Eurasia, Africa, Europe, Latin the States, as well as North America (National Geographic, 2011).Due to this, these manufacturers must adhere to strict standards in order to produce sta ndardized CocaCola? s harvest-feasts. Moreover, Coca-Cola manages its manufacturing processes efficiently. For Soft drink Industry 3 example, the new factory in billy Rouge operates 24 hours a day, five long time a week, and do- nonhing produce up to 4. 5 million beverages in one day. Additionally, in late(a) efforts to be environmental friendly, the company announces that it will change its electrical equipments and reduce water use. The decision is projected to save the company approximately one million dollars annually. DistributionsCoca-Cola has the world? s largest dissemination system hence, it is a ble to reach almost every region (Coca-Cola Co. , 2011). The company distributes its beverages to consumers through various retailers, wholesalers, vending machines, and distribution centers. Furthermore, it sells its syrup and concentrates to cafes and restaurants used in fountain drink dispensers. ? National Beverage Corp. (Shasta) Raw Materials National Beverage Corp. collaborates with more suppliers for piercing materials and packages. Moreover, the company consolidates its purchasing function for address containment purposes (National Beverage Corp. 0K, 2010). This ad vanguardtage allows the company to com pampere a ontogenesisst study beverage companies. Some of the materials used to produce the beverages are sweeteners, juice concentrates, carbon dioxide, water, glass, p lastic nursing bottles, aluminum targets, paper, dr awons, and closures (NBC 10K, 2010). The comprises of the materials are very volatile reasons being are because of gas expenditures, tariffs, foreign exchange fluctuations, etc. Consequently, the company purchases forward-moving agreements with suppliers to minimize the cost accessions on veritable materials. Manufacturing National Beverage Corp. ets up manufacturing plants strategicalally. Its twelve manufacturing facilities are located near major U. S. metropolitan cities thus, enab ling the company to distribute products promptly and efficiently (NBC 10K, 2010). In manufacturing plants, the company bottles and fags its beverages. National Beverage Corp. believes that ownership of bottling facilities provides a competitive advantage o ver some competitors? dependency on third party bottlers (NBC 10K, 2010). As a result, the company is able build its own competitive advantage and become s more experient and efficient. Distributions National Beverage Corp. tilizes a hybrid d istribution system to deliver products through three native distribution channels take-home, thingamabob and furthere-service (NBC 10K, 2010). Take-home channel distributes to grocery stores, wholesalers, and warehouse stores such as Costco. Secondly, the convenience channel, which distributes to gas station and convenient stores such as 7-Eleven stores. This channel allows the company to charge higher selling hurt than the other channels because of lower sales volumes. The last channel is food-service. This channel distributes its products to schools, hotels, sendlines, restaurants, and other food related places.Soft drink Industry 4 III. Promotional Analysis ? The Coca-Cola Company Word-of-Mouth Consumers are lecture astir(predicate) brands and companies every day, and it so happens that a vast number of conversations are about Coca-Cola. match to Keller Fay Group, a research selling firm, a study of 25,142 consumers shows that Coca-Cola is currently the most talked abo ut brand in America (Wang, 2008). This fixing demonstrates and measures the sample of consumers? conversations on a daily basis. In addition, the CEO of Keller Fay Group, Ed Keller, states, these brands fall infra the realm of affectionate categories? and have great frequency of purchase. As a result, consumers are exposed to package neats? logos and slogans frequently. The more products consumers purchase daily, the more likely that they are to start conversations about the products within their social circles. The table below exhibits the ten most talked about brands and Coca-Cola is placed first. Top 10 Word-of-Mouth about Talked About Brands 1. Coca-Cola 6. Ford 2. AT&T 7. Dell Computers 3. Verizon 8. Sony 4. Pepsi 9. Chevrolet 5. Wal-Mart 10. McDonalds Public Relations Coca-Cola has strong public dealing because it is always on the fore front of contributing to the community and society.For instance, Coca-Cola juvenilely announces to the press that it has just establis hed the Coca-Cola japan Reconstruction Fund, which promises to put in 2. 5 billion yens ($31 million U. S dollars), to assist the reconstruction of japan over the next three years (Coca-Cola raises, 2011). As a result of this generous act, Coca-Cola will receive great public media presses. Social Media Since the emergence of social media on the Internet, Coca-Cola has gaind its presence in the globular community. For example, Coca-Cola? s Facebook page has more than 5. 18 million raw siennas and even-tempered growing, which makes Coca-Cola? page one of the transgress fan pages on Facebook (Staff, 2010). This illustrates the immense community support and brand loyalty the company receives on the Internet. In addition, Coca-Cola besides utilizes the Internet as a tool to support the community in charitable acts. Example being, Coca-Cola promises to damp one dollar to the Boys and Girls Club every time a Facebook user gives a friend a virtual gust thus, raising about $126,000 for the organization (Staff, 2010). Overall, Coca-Cola uses the social media for community engagements and in like manner to reach out to more consumers. orbicular Branding As the first mover in the market, Coca-Cola is currently known as a spheric brand, non just Soft drink Industry 5 an American brand. For instance, when the company entered the mainland China market in 1928, the first direct translations of Coca-Cola had absurd meanings such as bite the wax pollywog or female horse stuffed with wax. However, with due diligence and core competency in branding research, Coca-Cola was able to choose different characters pronounced Ko Kou Ko LE, which literally means, let the mouth rejoice or happiness in the mouth (Wooten, 2011).This proves that the company takes branding seriously and tackles every global venture strategically by adapting to local anesthetic shades. ? National Beverage Corp. (Shasta) Overview In the company? s mission account, National Beverag e Corp.? s mai n focus is variety. Its cottony drink line has over thirty different flavors with new flavors being tried and authoritative every day. Its goal is to have consumers identify themselves with particular flavors. As individuals grow older, their likes, tastes, and personalities will change. National Beverage Corp. encourages its consumers to link their trans counterfeitations to their best-loved mild drinks.Its other objective is to labor itself as a friendly soft drink company that everyone can relate to. By victimisation social media platforms such as Facebook, the company is able to reach out to current as well as new consumers. Also, word-ofmouth is known as the greatest influence for consumers thus, National Beverage Corp. hopes to satisfy consumers in order to create a grapevine boom effect. Conceivably, this tactic can possibly lure over other consumers who belong to its competitors. The company also issue forths a consumer- instal promotional outline t hat centraliz es on fitting the consumer? image to his or her favorite drink, rather than creating an image for consumers like Coca -Cola. With this, National Beverage Corp.? s promotional scheme can be dissected into parts by engaging the promotional strategy mix advertisement, public relations, sales promotion, personal selling, and direct mail. advertising Recently, National Beverage Corp. began showing television and online commercials high spoting its low footings in comparison to bigger soft drink co mpanies. These comical commercials exhibit individuals being hit in the heads with a Shasta can thus, coining the urinate in the Head theme.The end of the advertisement shows a statement, Some tidy sum wouldn? t know a good deal even if it hits them in the head. The focal point is to gain a satirical image in the viewers? minds to reiterate the fact that National Beverage Corp.? s soft drinks are usually priced lower than its competitors. Moreover, the vibrant colors used in the commerci al highlight the many another(prenominal) flavors that the company carries. Public Relations National Beverage Corp. cleverly uses the Internet as a medium to labour its image as a neighborhood friend to its consumers.By utilizing Facebook, the company starts a periodic promotional page called Shasta seltzer, which is maintained by its employees who post three to four weekly highlights. These posts mainly discuss about publicise soft drinks, especially around the holidays. In addition, there are recipes on how Shasta can be combined in daily cooking. Soft drink Industry 6 gross revenue promotion Presently, based on its Shasta Pop Facebook page, National Beverage Corp. uses a Shasta van that travels around California and gives out free soda cans, discounts, coupons, and T-shirts. This promotional tactic is known as Sha sta Pop Stops. For example, to promote new flavors, Stater Bros. will be inviting the Shasta pop van with KFROP radio station to its store locations. Moreover, f ans are able to follow the Shasta van by tuning in to some of their local radio stations. Personal Selling In terms of sales, National Beverage Corp. mainly conducts business with local retail grocery stores. In order to promote its products, it offers attractive discounts to retailers through partnerships. For example, a retailer that chooses to place National Beverage Corp.? s products in front of the store will receive a higher profit for every sale. Direct MailAs Internet usage increased exponentially over the years, National Beverage Co rp. uses the Internet to send promotions to consumers via E -mail. Subscribers of Shasta Pop Facebook page receive periodic coupons through their Facebook? s wall and E-mail accounts. IV. Financial Analysis ? Sales Graph 1 shows that Coca-Cola generates most of its revenue from international markets. The U. S. revenue accounted for 31. 7% of the total revenues in 2010, which was $11. 1 billion, a gain of 34. 6% compared to 2009 revenues. Moreove r, international markets made up 74. 1% of the total revenues in 2010, which was about $23. billion, an increase of 4% compared to 2009 international revenues. The significant harvest-time in U. S. sales can be traced to the gain from the acquisition of Coca-Cola Enterprises and the growt h of its other beverage products, such as Fuze, Trademark Simply, and tea. However, international market sales rose slightly due to the concurrent gain in emerging markets as well as a downslope in developed markets. Additionally, the unfavorable impact of foreign currency exchange rates was primarily responsible for a stronger U. S. dollar compared to other currencies (Coca-Cola, 2011, p. 63). Graph1 Coca Cola 2010 Sales by component 3% 0% 7% 13% 11% 14% 32% Source 2010 Coca Cola 10-K Report Soft drink Industry Eurasia & Africa Europe Latin America North America peaceful Bottling Investment Corporate 7 On the other hand, National Beverage Corp. sells its products to U. S. market only. Theref ore, its domestic sales account ed for 100% of the total revenue in 2010, which was $593. 5 million, an increase of 3. 2% from 2009. rugged revenue in 2010 resulted from harvesting in the sales of case volume of 1. 2% for energy drinks, juices a nd waters and 5. 1% for branded carbonated soft drinks. Moreover, unit pricing increased 0. % which mostly due to positive product mix changes. The improvement was partially offset by a decline in allied branded volume (NBC, 2011, p. 13). For the past six years, Coca-Cola increased its revenues and net incomes with just addition rates range from 8% to 18% annually. In 2005, sales were only $23. 1 billion. However, 2010 sales amount ed to $35. 1 billion, an increase of 13% from 2009. Additionally, 2010 net income was $11. 8 billion, an increase of 72% from 2009. The large growth was due to when the company acquired Coca-Cola Enterprises in October 2010, it recorded other income of $4. 8 billion.However, Coca-Cola start outd drawbacks in 2009 after the 2008 market crash. Its revenue dropped 3% to $30. 9 billion nonetheless, its net income still gr ew to 17. 5% during 2009 as a result of price increase and effective embody be intimateting mode of run expenses as well as woo of goods sell (see Table 1). Even though National Beverage Corp. did not experience as oftentimes growth as Coca-Cola in its financial statements, its revenues have also been rising steady since 2005. In 2010, revenue reached its highest level at $593. 5 million, an increase of 3% from 2009. Likewise, 2010 net income was $32. million, an increase of 33% from 2009, primarily due to higher sales volume, favorable changes in product mix and lower raw material cost (NBC 10 -K, 2010, pg 13). Since 2005, revenue increased with an average of 3% per year, and net income growth averaged 11% annually. National Beverage Corp. experienced some setbacks in 2008 when the recession occurred. Though revenue increased, net income rock-bottom by 9% to $22. 5 million (see Table 2). Table 1 Coca Cola Company (2005 -2010) (in millions) 2010 2009 2008 2007 2006 2005 Net Oper. Revenue 35,119 30,990 31,944 28,857 24,088 23,104 Cost of goods sold 12,693 11,088 11,374 10,406 ,164 8,195 S elling, oecumenical and admin expenses 13,158 11,358 11,774 10,945 9,431 8,739 Net Income 11,859 6,906 5,874 Source sec. gov (Coca Cola Company 10-K Consolidated Income teaching) 5,981 5,080 4,872 Table 2 National Beverage Corp. (2005 -2010) (in thousands) 2010 2009 2008 2007 2006 2005 Net sales 593,465 575,177 566,001 539,030 516,802 495,572 Cost of sales 396,450 405,322 393,420 365,793 349,131 340,206 S elling, general and admin expenses 145,159 131,918 138,447 137,212 135,090 130,037 24,742 22,480 24,682 22,226 16,886 Net income 32,853 Source sec. gov (NBC 10-K Consolidated Income logical argument) Soft drink Industry 8 ?Financial Overview According to entropy compiled by Bloomberg, Coca-Cola, leader in non-alcoholic beverage industry, is valued at $15 3. 15 billion via the market capitalization method. On the contrary, National Beverage Corp. , on the mid-size market capitalization roster, is valued at only $628. 23 million. In another word, Coca-Cola? s value is approximately 244 times more than National Beverage Corp.? s. Table 1 and table 2 show the income statements for these two companies for comparison purposes. Coca-Cola has been able to increase its revenues year after year and recorded top net sales at $35. 1 billion in 2010. bring in margin was 63. %, or another way of interpreting this is the company took away $0. 639 per dollar of sale. Furthermore, after all expenses and income tax deductions, $0. 336 was net income per dollar of sale. The company boosted its bottom line from $6. 8 billion to $11. 8 billion primarily through revenue growth ($31. 0 billion to $35. 1 billion). For costs associated with cost of goods such as selling, general and administrative expenses (SGA) and income tax, a ll increased as a percent age of sales. However, the growth in revenue throwd enough to still see net income improve (Coca-Cola, 2011). Similarly, National Beverage Corp. as also been able to increase its revenue therefore, increasing its net income year aft er year. Gross margin in 2010 was 33. 2% compared to 29. 5% in 2009. Due to lower economies of graduated table, National Beverage Corp.? s largest expense has been consistently cost of goods sold. Even though the company was able to reduce cost of goods sold expense from 70. 47% to 66. 80%, this expense was still high and is financially harmful. However, the reduction in cost of goods sold in 2010 was a major driver that led to a bottom line growth from $24. 7 million to $32. 9 million (NBC 10-K, 2010). ? Financial Ratios Analysis Coca-ColaCOKE (KOUS) Current Quick ROA roe Assets disturbance register Turnover A/P Turnover A/R Turnover 1. 17 0. 85 14. 82% 42. 32% 0. 58 5. 07 times or 72 days 7. 88 times or 46. 32 days 8. 58 times or 42. 54 days LTDeb t to Assets Total Liabilities to Total Assets matter to Coverage 0. 19 0. 57 19. 43 Coca-Cola? s financial ratios indicate that the company is in good health. In respect to profitability, return on assets (ROA) was 14. 82% and return on equity (ROE) was 42. 32%. These figures encourage the investors to assess management performance. Furthermore, liquidity indicators measure the company? s ability to meet short-term obligations.In 2010, current and quick ratios were 1. 17 and 0. 85, respectively. The quick ratio leaves a more stringent figure on liquidity. Even though the Golden Rule states that it should be at least one, a figure like Coca -Cola? s can Soft drink Industry 9 be considered normal for a international company. Solvency calculations include long-term debt to total assets as well as total liabilities to total assets, which calculated at 0. 19 and 0. 57, respectively. Additionally, the vex coverage ratio, which indicates how many times interest expense is covered by o perating profits before taxes and interest are factored in. Coca-Cola? interest coverage ratio was 19. 43, which meant operating profit was about 19 times larger than interest expense. Although there were not enough liquid assets to satisfy current obligations (total liabilities to total assets ratio of 0. 57), operating profit was more than adequate to service the debts. In addition to the calculations above, employment ratios measure how effective the company is utilizing its assets. Assets perturbation, the amount of sales generat ed for every dollars worth of assets, was 0. 6. Inventory turnover, indicates how many times a companys inventory is sold and replaced over a period, and calculated at 5. 7 times per year or every 72 days. This shows that inventories were managed well. Accounts payable, represents an entitys obligation to pay off a short-term debt to its assignors, was 7. 88 times or every 46 days. Accounts receivable, is used to quantify a firms effectiveness in ext ending credit as well as collecting debts, reported at 8. 58 times per year or every 43 days (Coca-Cola, 2011). National Beverage Corp. NBC (FIZZUS) Current Quick ROA ROE Assets Turnover Inventory Turnover A/P Turnover A/R Turnover LT-Debt to Assets Total Liabilities to Total Assets relate Coverage 2. 30 1. 71 20. 1% 21. 05% 2. 35 10. 67 times or 34. 21 days 8. 12 times or 45 days 11. 04 times or 33. 06 days N/A 0. 41 432. 13 For a grow company like National Beverage Corp. with a much smaller market capitalization, financial ratios indicate good performance year after year. Profitabi lity ratios like ROA and ROE were 20. 51% and 21. 05%, respectively. These returns on investment calculations were well above the industry? s average, which is very impressive. Liquidity indicators, such as current and quick, were 2. 30 and 0. 9, respectively. Unfortunately, these figures were below the industry? s aggregate.In regards to solvency indicators, total liabilities to total assets ratio wa s 0. 411 or $0. 41 debt for every dollar of asset. National Beverage Corp. used little or no debt in its capital structure and may have less financial risk than the indu stry? s aggregate. This increased the interest coverage ratio to 432. 13, meaning operating profit was 432 times larger than interest expense. Lastly, an activity ratio, such as total assets was $2. 35 revenue generated per dollar of asset. Inventory was presented at 10. 67 times per year, or every 34 days of cost of goods sold tied up in inventories.Accounts payable ratio indicates that the company collected 8. 12 times per year or every 34 days. Accounts receivable, reported at 11. 04 times per year or about every 33 Soft drink Industry 10 days worth of sales outstanding. In conclusion, National Beverage Corp. also appears to be in good financial standing. V. SWOT & Porters Five Forces Analysis ? SWOT Analysis Coca-Cola SWOT Analysis Strengths Weaknesses Strong brand image and customer loyalty tall fixed costs of business Robust global infrastructures and distribution several(prenominal) product recalls system Higher prices compared to others Various product offerings Solid financial condition and market presence Opportunities threats Expand to other growth countries Change in customer preferences Offer new beverages/drinks Global economic recession Shift focus to volume/price/ mix Foreign exchange fluctuations National Beverage Corp. SWOT Analysis Strengths Weaknesses Diverse product offerings pitiable profit margin Hybrid distribution system Limited to U. S. market only Opportunities Expand to other neighboring countries Offer new beverages/drinks Increase in the non-alcoholic beverage ndustry ? Threats Change in customer preferences Global economic recession Rising cost of inputs Competition from major beverage manufacturers Porters Five Forces (Soft Drink Industry) Threat of new entrants (Low) (H) Low switching cost for buyer, Low product differentiation (L) Hig h economies of scale, High capital requirement, Low access to distribution channel Power of buyers (Moderate-High) (H) Low switching cost for buyer, Moderate product differentiation for supplier (L) Low purchase volume for buyer, Low threat of retroflexed integration Power of suppliers (High) H) High switching cost to another supplier, High suppliers? concentration, Low availability for product substitute Soft drink Industry 11 (L) High importance of customer, Low t hreat of forward integration Threat of substitute product (Moderate-High) (H) High differentiation of substitute product (L) Low price performance relationship Intensity of Rivalry (Very high) (H) High number of competitors, Low industry growth rate, high fixed cost and storage cost, Low switching cost for buyers, High exit barriers (L) None Threat of New Entry (Low) Supplier Power (High)Competitive Rivalry (Very High) Buyer Power (Moderate High) Threat of Substitution (ModerateHigh) VI. commission Analysis The managem ent analysis section will examine management structures, merged policies, mission statement s, and vision statements of both The Coca-Cola Company and the National Beverage Corp. The management structure segment will search the corporate leaders and executives as well as the workplace environment. A segment on corporate policy will observe responsibilities and morality expectations of every employee. The last segment will analyze each company? mission and vision statement and what it means to the company. ? The Coca-Cola Company Management Structure Management at the corporate level is headed by Muhtar Kent, Chairman of the Board of Directors and head teacher Executive Officer. Other top officers at the Coca -Cola Company include Executive Vice electric chair Irial Finan, Chief Financial Officer Gary Fayard, President of North America Alexander Douglas, and President of Latin America Jose Reyes. Soft drink Industry 12 Coca-Cola creates a winning culture by developing a several (a) workplace. At the core, there is the sort out hand employee value proposition, which is directly ffected by four key determine. These values are visiting the reform giving, right capabilities, right leaders, and the right workplace (Global Diversity, Our strategic Framework 2010). In order to create the right workplace, the company must sustain positive diversity and fairness on all levels of operations. Finding the right talent relates to matching the right people with the market they serve. Building the right capabilities is about sharing social culture and knowledge in the workplace. The right leaders leverage talent in the workplace to obtain brilliant results across the business.Coca-Cola Company currently employs 139,600 people, also known as associates (Businessweek, 2011). Corporate Policy and Ethics The Coca-Cola Company has been able to enhance its reputation through integrity and ethical conduct. Therefore, it is important for the company to safeguard these va lues and set standards to ensure employees do the right thing. The company? s enactment of Business Conduct covers guidelines on integrity around the globe, internal as well as external integrity, and conflicts of interest. Mission and Vision Statement The Coca-Cola Company has set long term road-map of acquiring its bottling partners.The 2020 vision defines the company? s attitudes and behaviors that are postulate to turn the vision into reality. Furthermore, Coca-Cola? s mission statement serves as a guideline for company? s actions and decisions (Mission, Vision, take to bes, 2010). ? National Beverage Corp. Management Structure The executive team at National Beverage Co rp. is led by Chairman of the Board and Chief Executive Officer Nick A. Caporella. Other top officers include President Joseph Caporella, Principal Financial Officer George Bracken, Executive Vice President of Procurement Edward Knecht, and Chief Accounting Officer Dean McCoy.National Beverage Corp. has been a ble to create a winning cultur e through several key factors. First, t he company works as a whole towards strength, knowledge, and higher rank of management team (NBC The Difference, 2010). Its seco nd factor is the flexibility to plan globally and act locally, this includes the process of steep integration, hybrid distribution, and basket of beverages (NBC The Difference, 2010). The company currently employs 1,200 workers (Businessweek, 2010). Corporate Policy and Ethics Ethical conduct is bouncy to ensure successful and lasting business relationships (National Beverage Corp.Code of Ethics, 2007). National Beverage Corp. also sets high standards of ethics for all its employees, supervisors, and managers. These include the procedures for the employees to act accordingly when dealing with the following ? Conflicts of interest ? The use of entertainment, gifts, and payments Soft drink Industry 13 ? Relationships with customers or suppliers, and government employees ? Receipt of it ems by National Beverage Corp. employees ? Complete and holy financial records as well as confabulation ? The use of company assets ? Workplace environmentMission and Vision Statement National Beverage Corp. continually strives to set a higher standard for value, quality, variety and innovation as a leader in the beverage industry (NBC The Difference, 2010). It continually positions itself as a unique beverage company with innovative ideas. Furthermore, the company places its people, products research and development, environment, advancement, and consumers at its forefront to create innovative advantages for the company. VII. Alternatives Financial Objectives According to most observers, there are two strategies for achieving superior erformance in any business. One strategy is product and service differentiation the other is low -cost leadership. In National Beverage Corp.? s case, it is appropriate to suggest a low-cost leadership strategy. This method focuses on consumers? at tention on product pricing, often using such slogans as everyday low prices or the lowest price in town. The goal is for the company to become the lowest cost producer in the marketplace so it can underprice the opposition, achieve the highest sales volumes, and still make a profit on each sale.This can be achieve by making quantity discount purchases, having a lean administrative structure, and using production efficiencies from nimble cost containment. As the business environment changes, few companies actually pursue just one strategy. to the highest degree will attempt to implement both-developing customer loyalty small-arm controlling costs. National Beverage Corp.? s management will now ha ve to decide to (1) improve profit margin, (2) increase asset turnover (more sales volume or fewer assets), or (3) both. In this case, it is best for management to formulate goals to increase profit margin.Profit Margin ROA and Competitive Advantage 30 25 20 15 10 5 0 NBC 0 0. 5 1 1. 5 2 Assets Turnover Soft drink Industry 2. 5 3 COKE 14 Strategic Objectives The core business from these two companies stems from the production of soft drinks. Coca-Cola has its setback line as National Beverage Corp. has Shasta. Unfortunately, there are many products within Nat ional Beverage Corp. that cause brand dilution. To overcome this effect, the company can shift focus back to the Shasta brand and avoid low performing players. This will in turn, strengthen Shasta and consolidate the brands that are left.Some alternatives the company may indigence to consider are broken down into short-term and long-term. Short-term In order for Shasta to gain greater brand recognition in a short time, it is imperative that National Beverage Corp. increases its market budget. Several possibilities to better market Shasta are ? Advertise at college sports events ? Target more local domestic stores to increase Buzz effect ? Use celebrity advertising, specifically o lder television show cele brities ? Create a new commercial that is consistent with the merchandising strategy of Shasta (example promote self-identities of consumers through favorite soft rinks) These potential marketing strategies all focus on strengthening Shasta? s brand image. They also allow the company to remain consistent with its overall marketing plan. Long-term Further analysis shows that Shasta? s range of consumers is very narrow. The company only distributes in four states California, Arizona, Utah, and Minnesota. Several approaches to increase sales of Shasta are ? Distribute to more states ? Develop distributing partnerships with large retailers like Target Expanding distribution channels will boost sales of Shasta. The remainder income can then be used to invest in building new production plants.Moreover, developing contracts and partnership s with large retailers like Target will ensure greater product placement, therefore, vamp up brand awareness among consumers. VIII. Recommendations Sh ort Term Create a new commercial that is consistent with the marketing strategy of Shasta Shasta rarely advertises on TV or online. However, it does have a popular commercial, which aired recently, Hit in the head. Unfortunately, it is neither good nor interesting. Besides, it does not match with the company? s current marketing strategy to have consumers identify themselves with their favorite beverages.If Shasta is able to create a different approach for its advertising method and follow its marketing strategy, it may be able to obtain greater brand recognition and market shares in the soft drink industry. Since Shasta is National Beverage Corp.? s core competency, the company should approach the consumers based on this beverage line. The best way is to create a commercial that promotes self-identity based on the flavors that Shasta offers. With the target market being very diverse, this new commercial might appeal not Soft drink Industry 15 to just different ethnic groups, but a lso younger consumers who like to be different and unique.Long Term Develop distributing partnerships with large retailers to increase p rofit margin In 2010, National Beverage Corp. had a 66% cost of sales ratio, whereas Coca-Cola had 34. 3%. National Beverage Corp. s cost of sales was excessively high for industry? s standard therefore, was the primary cause of low profit margin. In order to increase profit margin, the company should lower its production costs by achieving larger economies of scale through building or developing distributing partnerships with large retailers like Target. This in turn will lower production and distribution costs.Consequently, Shasta cola brand will be availa ble to many other states and reach more consumers and markets thus, boosting revenue and total sales volume. Soft drink Industry 16 XI. Bibliography About National Beverage Corp.. (2009, January 1). National Beverage Corp.. Retrieved March 28, 2011, from http//www. nationalbeverage. com/10About NBC. htm Coca Cola Company. (2008, Feb. 28). 2007 Form 10-K. Retrieved March 29, 2011, from http//sec. gov/Archives/edgar/ info/21344/000119312508041768/d10k. htm Coca Cola Company. (2011, Feb. 28). 2010 Form 10-K. Retrieved March 28, 2011, from http//ir. thecoca-colacompany. com/phoenix. zhtml? =94566&p=IROLsecToc&TOC=aHR0cDovL2lyLmludC53ZXN0 bGF3YnVzaW5lc3MuY29tL2RvY3VtZW50L3YxLzAwMDEwNDc0NjktMTEtMDAx NTA2L3RvYy9wYWdl&ListAll=1&sXBRL=1 Coca-Cola Raises Total Pledge to 2. 5bln Yen for lacquer Relief. (2011). Asia Pulse. Datamonitor. (2010, Apr. 15). National Beverage Corp Company Profile. Datamonitor Company Profiles Authority. Retrieved March 27, 2011, from http//search. ebscohost. com. lib-proxy. fullerton. edu/login. aspx? direct=true&db= buh&authdb=dmhco&AN=7E22BD44-DB90-4E61-AE79-F5F25D7169FB&site=bsilive Datamonitor. (2010, May 28). The Coca Cola Company Company Profile . Datamonitor Company Profiles Authority.Retrieved March 27, 2011, from http//search. ebscohost. com. lib- proxy. fullerton. edu/login. aspx? direct=true &db=buh&authdb=dmhco&AN=37CB5616-D04E-49EE-9F5CFFE75047D6FF&site=bsi-live Disclaimer/Terms of Use. (2009, January 1). National Beverage Corp.. Retrieved March 27, 2011, from http//www. nationalbeverage. com/SiteInfo. htm Events & Promotions Shasta. (2010, January 1). Shasta Beverages, Inc. Retrieved March 28, 2011, from http//www. shastapop. com/events-promotions/ Grimm, M. (2000). Drink me. American Demographics, 22(2), 62-63. trade flick (4 ps) Promotion and Promotional Strategies. (2010).Welcome to Learnmarketing. net Learn about Marketing here. Free Marketing Education, Lessons and Marketing Resources. Retrieved March 27, 2011, from http//www. learnmarketing. net/promotion. htm Mission, Vision, & Values. (2011) Retrieved April 10, 2011, from http//www. thecoca-colacompany. com/ourcompany/mission_vision_values. html National Beverage Corp. (2007, Jul. 12). 2007 Form 10-K. Retrieved March 29, 2011, from http//sec. gov/Archives/ed gar/data/69891/000095014407006550/g08320e10vk. htm National Beverage Corp. (2007). National Beverage Corp. Code of Ethics. National Beverage Corp Author National Beverage Corp. 2009). The Difference Our Vision. National Beverage Corp.. Retrieved April 10, 2011, from http//www. nationalbeverage. com/32OurVision. htm National Beverage Corp. (2010, Jul. 15). 2010 Form 10-K. Retrieved March 29, 2011, from http//sec. gov/Archives/edgar/data/69891/000095012310065795/g24048e10vk. htm Soft drink Industry 17 National Beverage Corp. (2011, Jan. 21). National Beverage Corp (FIZZ). Value Line Investment Survey, p. 4633 National Geographic Channel. (2011). Ultimate Factories Web. Available from http//channel. national geographical. com/series/ultimate-factories/5151/OverviewtabVideos/09750_00 Nguyen, J. Interviewer) & Anicich, C. (Interviewee). (April 20, 2011). Shasta Target Market E-mail. Shasta Beverage, Inc. (2010). Our History. Retrieved April 17, 2011, from http//www. shastapop. com/ fib/ Sicher, J. (2011, March 17). Beverage-Digest. Top-10 CSD Results for 2010, 59(5), Retrieved from http//www. beverage-digest. com/pdf/top-10_2011. pdf Staff, J. (2010). Coke, Pepsi like net gains cola rivals fans on Facebook, twitter help steer, sell the brands. The Atlanta Journal-Constitution, 13A. The Coca-Cola Company. (2010). Code of Business Conduct Acting with Integrity Around the Globe. Coca-Cola Company AuthorThe Coca-Cola Company (2010). Global Diversity Our Strategic Framework. Coca-Cola Company Author The Coca-Cola Company. (2011). The Coca-Cola Company Fact Sheet. Retrieved April 17, 2011, from http//www. thecoca-colacompany. com/ourcompany/pdf/Company_Fact_Sh eet. pdf Van Liew, NC. (2011, Jan. 28). Coca-cola (KO). Proceedings of the Value Line Reports for The Dow 30. Available from http//www3. valueline. com/dow30/f2084. pdf Wang, E. (2008). reckon Coke, the most talked about brand in America. Brandweek, 49(38), 009. Wooten, A. (2011). Preserving brand strength in glo bal markets. Deseret News, WEB. Soft drink IndustryCoca Cola AnalysisThe Coca Cola Company The company that I have chosen for my course project is the Coca Cola Company. The reason for my selection is simple, I am strike with growth associated with Coca Cola and plan on further researching and analyzing how such growth of this magnitude is possible. The company was free-baseed in 1886 by John Pemberton as a simple soft drink, created solely out of curiosity. John Pemberton, a pharmacist, mixed together the caramel flavored carbonated drink and initially starting selling it for 5 cents.Now 126 years later, Coca Cola has more than 3500 beverages, sold in over 200 countries and employ more than 146,200 employees. What debuted as a simple soft drink in an Atlanta pharmacy, now has a global success rate of 1. 8 billion servings per day. increase List The following product list is from research gathered covering the Coca Cola drinks of the North American Region in the United States. gl obally Coca Cola has over 3500 products. The products sold solely in the United States range from juices, energy drinks, soft drinks, coffees, teas, sports drinks and drink mixers.Coca Cola diverse efforts to cover every aspect of liquid drinks, whether for sporting events or plain enjoyment, have made up a total of XXXXXX in the United States alone. The original Coca Cola product was first introduced in 1886 and distributed nationally by 1899. Today you can ferret out your favorite Coca Cola product literally anywhere in the world. Due to higher concerns for health and nutrition, in 2007 Coca Cola furnished caffeine heart and soul per serving along with already available nutritional information. yield Lines and MixThe Coca Cola Company has 7 product lines within their beverage selection. They all fall into the non alcoholic liquid beverage sold in restaurants, stores, vending machines and distribution companies in the United States. Of the 7 product lines (see table A below), y ou can see that the most variety falls under the soft drink line with over XXXXX of products. Table A. Product Coca Cola Products have some of the most straightforward flavors. At times they were criticized for adding certain ingredients, such as cocoa leaves, to enhance flavor and increased lust to drink the soft drink.Today the Coca Cola products sold in stores in the United States range from carbonated delightful drinks, to sports drinks used to fuel the body with electrolytes (See Table B. below). Coca Colas first product was actually made by mixing a fragrant, caramel flavored liquid and combined with carbonated water. (Coca Cola Co. , 2012). It became an almost sec sensation and today Coca Cola owns some of the favorite soft drink products sold in the U. S. such as Dr. Pepper, Sprite, PowerAde, refined Maid, and Dasani. Table B. Type of Drink Popular Soft Drinks Carbonated -flavored Coca Cola- Sprite Juices Non carbonated fruit drinks made from real fruit juice and Mi nute Maid Lemonade season Energy Drinks Energy carbonated drinks made from Ginseng and Tuarine Monster Energy Sports Drinks Combines carbohydrates with fluid for hydration POWERADE Tea / chocolate Iced Coffee and Tea Nestea Water H20 Dasani Other Drink mixers, lactic drinks, and coffee blend Bacardi Mixers Include competition and SWOT ANALYSIS here before final draft Branding Founded in 1886, the now storied brand that can be found world wide, Coca-Cola is the face to many different popular brands that we find on store shelves. In the 1950s Fanta joined Coca Cola only to be followed by Sprite, Tab, Minute Maid, Mr. Pibb, and Mello Yello.In the 1980s the famous brand Diet Coke and Cherry Coke were added, and the 1990s brought about the PowerAde and Dasani era. The Coca Cola logo has remained unchanged and impressively a letter script font so simple has become globally recognized. Packaging In 2010, Coca Cola switched from The Coca Cola Management Company (TCCMS) to the C oca Cola Operating Requirements (KORE) to ensure quality, and product safety. Coca Cola holds a high standard in packaging and quality control of their operations. Coca Cola is consistently refining their efforts to maintain a high level of packaging and implementing new requirements as deemed necessary.Since Coca Cola is packaged globally, the KORE has implemented a set of requirements that are must be in accordance with packaging guidelines in order to protect the integrity of the product wherever it may find its destination. The Coca Cola company first started bottling their product in 1894 in a now commonly known bottle called a Hutchinson. You can now find the product in a 6. 5oz, 10oz, 12oz. , 26oz. , bottle, plastic and aluminum containers. The product can also be found in a concentrate form. Sold in a carton box with the concentrate inside a plastic sealed bag, restaurant owners can then connect to their carbonated mixers and serve fountain drinks. Product FeaturesCoca Cola has some very unique features and on top of having a patented flavor that has literally been untouched since its debut in the late 1800s, the Coca Cola Company has now expanded its diverse taste palette to accommodate anyones preference of taste. From soft drinks, to energy drinks, you can literally find a match from a Coca Cola product. One of Coca Colas biggest product features is that you can find your favorite product shelved at a local store, anywhere in the world. A great product feature is that you can purchase it in bulk or by a single unit. Labeling The Coca Cola Company provides several labels for their customers to attain facts of the beverage that they are consuming.Nutritional Facts and UPC codes can clearly be found on Coca Cola Products. Since 2007, Coca Cola began furnishing a detailed caffeine content in addition to nutritional information already provided. ( Coca Cola, 2012). As of 2008, Coca Cola began providing servings-per-container and calories-per-serving for all customers. finally in 2009, Coca Colas packaging was formatted differently to provide an immediate optic presentation of the calorie content on front of packaging. Competition It is no secret that Pepsi Cola Company is Coca Colas direct competition. For many years we have seen the on going marketing battle of the two companies literally feuding via commercial air waves.The long battle is due in large part to Pepsis direct marketing strategy to out due or match every single move that Coca Cola makes. The shadow-like improvements of each mega marketing carry have proven to be cornerstones in marketing and advertising trends that we see today. The mega moves and strategies that each company has the ability to afford are a great tools for any company to take notes on and follow suit. Interestingly enough, Pepsi competes with Coca Cola in a different approach Coca Cola has over 3500 soft drink products and Pepsi worked its way into marketing their brands of chips, oatmeal, snacks , cereal, teas, soft drink PricingDue to the variety of sub- brands under Coca Cola, price segmentation is in place due to the different markets and global distribution pricing as well. In the United States, Coca Cola Company and Pepsi Cola have become mega players in the oligopoly market. With less competitors, and the same brand names seeking larger market share, the pricing strategy on a product that sometimes can be found for $1. 00 U. S. , is uniform delivered pricing. (Lamb, Hair, McDaniel, 2012). Since distribution is world wide, the companies prefer to factor in their own freight and production costs, to deliver the price demand that competitors are available to offer. There is a mutual agreement when in a market such as oligopoly.The pricing strategy is still competitive pricing strategy, due to the fact that if Coca Cola decided to lower prices, Pepsi Cola would short follow suit to stay within the target markets price demand. It is also very realistic that when competito rs raise or lower prices, the opposing players can decide not to match opposing prices as a strategic stronghold to maintain position in economic market spot. In a recent article from the News by Industry, Pepsi announced a festive promotional price cut and sources close to Coca Cola said that they would not match the cut. (Pepsi to Cut, 2012) Since the beverage commission has very little companies with a lot of buyers, the pricing strategy is competitive and based on competitors pricing.Pricing in this market is very elastic and companies have the ability to change pricing as they wish depending on their geographic locations. The pricing in vending machines can also vary since labor costs do not exist and can basically sell the product all day, every day. The pricing strategy on Coca Colas different product sizes is extremely strategic. Depending on where you purchase the product from, prices will vary. According to a recent poll question asked on Yahoo, how much does your Coca Col a cost where your at? , average cost on a 20oz. bottle of Coke is about $1. 25, average cost for a 2l bottle of Coke is about $1. 10, nationwide. Promotional pricing can be found regularly on 2l bottles and packages with larger per volume products.The pricing strategy is tactical and allows for consumers to feel the need to upgrade to save on price and increase volume. The most expensive form of consumer product purchase is the 5 gallon bag in box form. This concentrated syrup is usually purchased by restaurants/bars industry, and can yield 30 gallons of mellisonant fountain product. This price also varies on your geographic location and distributor, but on average here in Texas can be purchased from Sams Club for $69. 83. (Sams, 2012) When sold in restaurants, soft drinks now sell for about $2. 00 for a 10-16oz glass, making it extremely profitable and cost effective to purchase the concentrate.On the other hand, Coca Cola benefits for simply selling the concentrate and less costl y forms of packaging. Place Since Coca Cola is one of the most popular soft drinks in the world, distribution is in high demand and in a flock of channels. The distribution method that is used by Coca Cola is in the Fast Moving Consumer Goods. present the products do not rely on a long shelf life and due to the look into and easy pricing, products are in high demand, sell at a high rate and distribution is high. Ranging from mobile vendor carts on the streets to some of the large amusement parks such as Disneyland and 6 Flags, distribution is effective in every form.At the end of the day when added up globally, Coca Cola is at the top of the beverage consumption list. Some of the many distribution channels include the following. Mobile/ cart vendors- mobile vending can satisfy consumers conveniently at their location instead of having the consumer come to a retail store or stand. Provides easier access to consumers in special events or parks with the satisfaction of a cold bevera ge in any location. Vending Machines- with an occasional restocking visit, a vending machine provides an mix of products at no labor cost. The vending machine provides product to theatre of operationss that are remote or not within walking distance to the store, accessibility and great advertising.Vending machines are favorites in schools and business lounge areas. sell stores / grocery stores- with places such as Wal-mart, this allows for a wide array of variety to be shelved and advertised while selling the product. Coca Cola holds contracts and agreements to provide for strategic placement of their product so that the first visual product such as Coke is in plain site. Competitors products are pushed to the end of the aisles. Hotels, Restaurants, Cafe- This is by far the largest number of consumption since restaurants and bars use a large number of soft drinks and mixers. Contracts and sponsorships with these locations provide for major distribution.Amusement Parks, Museums, C ivic Centers- Areas like Disneyland and 6 Flags over Texas are the biggest types of distribution forms. Amusements Parks hold concerts and special events where the ordained beverage of the theme park are displayed profoundly. Within the park are restaurants and food courts that are also limited to selling the official beverage adding to the large number of distribution methods. In a recent article provided by Beverage World, Six Flags Entertainment Corp. and The Coca-Cola Company have announced a 10-year character reference to their partnership agreement, designating Coca-Cola as Six Flags official beverage sponsor for all domestic parks. (Coke, six flags, 2012) With a partnership agreement of this magnitude, competition is increased due to the large number of exposure and distribution that is provided. Coca Cola has had this same contract with 6 Flags for the last 50 years. Any media that is released or furnished by 6 Flags Over Texas, (i. e. cheep, Facebook, Yahoo) will automat ically provide the Coca Cola-Official Drink stamp. With a consistent strategic placement in a venue such as ginormous as an amusement park, it can be said that all of Coca Cola distribution channels undoubtedly cover important areas to contribute to the 1. 8 billion serving per day in over 200 countries. Promotion Communication StrategyA parley strategy is the way in which a company relays information for the products or services to reach the consumers detention and attention. The Coca Cola Company has several strategies which it employs to reach their target market. In order to reach the proper target market a strategic and precise strategy must be applied. Although specific, detailed marketing information could not be obtained, in 2006 roughly $2. 6 billion dollars were used for advertising expenses in pursuit of reaching a solid communication strategy. In 2000, only $1. 7 billion was pass on advertising. (Coca-Cola FAQ. 2012) In my summary the amount of advertising investments paid in relation to dividends generated will be defined.According to a recent article by Forbes Magazine, The Coca Cola Company is at the top of all beverage companies, and ranked 3 among the most powerful brands in the world. Forbes Magazine also estimates Coca Colas advertising expenses at around 3. 2 billion (Badenhausen, 2012) In order to form a powerful communication strategy, the target audience must be defined. The following target market is what Coca Cola has found to be beneficial for the companies growth. . Young athletes- young athletes are a good source to start with. By increasing product awareness at a young age, you inspire taste bud memory and a higher return. Young athletes are easier to inspire with promotional ads, billboards and endorsements from professional athletes. More of the sports drinks and water fits into this category.High indoctrinate Athletes- High school athletes are constantly looking up to professional collegiate athletes. Adding the endorsement inducement to these young athletes is a primary step in increasing product consumption. Sponsorships Collegiate Athletes- here athletes are influenced by professional figures and the hopes of the Olympics. Endorsement deals are larger here since the competition is fierce with hungry rising, mature individuals. Sponsorships Pro Athletes- Endorsements are the main source of advertising. Professional athletes are the main element of advertising and sports drinks are seen everywhere. Young Adults- Non Athletes- Clubs, bars, and nightclubs are the focal point in order to attract this demographic.Professionals- very open form of market. Basically all elements of the previous demographics factor into the professionals. This is an ongoing form of demographic that derive from the adolescent to present day professional. Large Audience- there is no specific market here as it applies to the whole general consumer base as a whole. It is the maximum exposure that creates a large audience base. Olympians- The entire universe of discourse participates in these events and are a great source of advertising. Here endorsements here are extremely precious as athletes are in a world wide arena and competition is extremely fierce. Other- made up of all elements comprisedSales Strategies Coca Cola has several different sales strategies that have actually worked for them poetry wise. According to an article posted by The Packaging Digest in 2011, a recent sales strategy boosted sales by 8% to 2. 2. billion world wide, and actually increased the product price by 3%. (Crocker, 2011) This is a proven method that has given results. The placement of products is strategic. When shopping for health foods, one of the most popular fruits being the bright yellow bananas, you will find Dasani , eco friendly recycled water bottles right under them. Pairing items like this is a tactic that has proven effective since 2011.Another strategy is one that Coke Zero uses to place their products in t he beer section, to encourage the designated driver to consume their products. Finally, the 2 liter coke that is found in the grocery stores near the pre-cooked chicken is also a strategy to make it easier for you to grab and go. Making it easier for people to shop faster is key. Vending machines and coolers with the product before check out are some of the sales strategies that Coca Cola uses to increase sales in a market of $1 products. The competition is actually pretty fierce for the overall beverage dollar, It requires a lot of marketing and promotional support. (Crocker, 2011) Sales ApproachIn order for a product to remain within the realm of competition it is necessary for your product to remain as fresh as it was as when you opened it. Coca Cola claims that their approach is kind of simple in this aspect according to a recent article in the Forbes Magazine. Jeff Tripodi, CMO of Coca Cola, claims that their strategy is innovation. (Dan, 2012) Having a state of the art dispen sing machine will increase sales, further connecting with your consumers will also increase your chances at success. One of the recent forms of innovation are the Freestyle dispensing machines that can pour 125 different beverages with a perfect pour each time. Building a strong cultural connection with your geographic area you plan on promoting to is a huge plus in improving overall sales.In order to promote sales a great promotional mix is required to ensure that all advertising expenses are maximized and yield awesome results. The following is promotional mix that includes all of the avenues thru which sales are promoted. Promotional Mix Advertising- commercials, billboards, visual advertisments, vending machines Sales Promotion- Battle of Bands, My Coke Rewards Personal Selling- Coca Cola Representatives Social Media- Facebook, Twitter Communication Channels / Media A recent article on Coca Colas webpage, March 27, 2012, announced the adoption speech of the companies induction to the Advertising Hall of Fame. With over 120 years in the beverage business, there is no doubt that Coca Cola has held some very important marketing campaigns.Their first campaign came in the 1920s, with The Pause That Refreshes, then with Things Go Better With a Coke in the 1960s, and present day Open Happiness. Today over 845 million people are connected to Coca Cola via Facebook, 6 billion cell phone subscriptions, and 2. 5 million connected regularly via the webpage. (Remarks in acceptance, 2012) In order for these communication channels and effective marketing efforts to be maximized, a diverse array of marketing efforts are taken into account in the following channels. Promotional Tasks Internet Sporting Events Billboards TV Advertising Press Concerts Sales Promos Promotional SWOT Analysis SWOT Positive Negative Strengths Weakness upcountry Globally recognized Product shipment could be damaged formal distribution Recalled products costly Established Market shares En dorsements could cost face of the company with a Brand identity simple mistake prospect Threats unlimited partnerships Pepsi is the biggest competitor External unlimited new product offerings the product is inexpensive and easily lose consumers to globally recognized brand competitors offer beverages for all carbonated or un. the caffeine and diet furor could prove costly. Conclusion to Promotional Analysis The Coca Cola Company deals with promotional aspect of their business on a mass communication level. The company usually doesnt know the type of people with whom they are trying to communicate with but rather who their target market is.Careful management of this delicate area can ensure that messages are being met and no clutter of message or mixed signals occurs. The promotional campaigns that the Coca Cola Company is operating grew 20% to 10. 2 billion dollar in the year 2011 so that you can say that it is extremely effective and does work. The Coca Cola Company i s represented by everyone who drinks it and when they do, they are literally providing advertising with a profit rather than at an expense. Coca Cola originated in the U. S. A. and has reinforced a brand that has represented many countries during the Olympics. For that reason Coca Cola has had a successful and well-disposed lifespan.They have allowed the people that drink the product the opportunity to share in many of its triumphs during the Olympics and built a brand that is represented by the people who enjoy Coca Cola. References (2012). Coke, six flags extend partnership. Beverage world-Intelligence for the global drinks business, Retrieved from http//www. beverageworld. com/articles/full/15193/coke-six-flags-extend-partnership concentrate-5-gal/185511. ipdesc (2012). how to get your customers to like price segmentation. Upstream commerce, Retrieved from http//upstreamcommerce. com/blog/2012/08/15/customers-price-segmentation 2012). Pepsi to cut 600ml pet bottle price. News by industry, Retrieved from http//articles. economictimes. indiatimes. om/2012-10-05/news/34279675_1_returnable-glass-bottles-coca-cola-cola-category (2012). Remarks in acceptance of the coca cola companys induction into the advertising hall of fame. (2012). 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