Coca Cola Company Is The Largest Multinational Company Marketing Essay

Coca Cola Company Is The Largest Multinational Company Marketing Essay The Coca-Cola Company is the largest multinational company all over the world, which produces non-alcoholic beverages, including the famous Coca-Cola and Sprite. In 2009, the company revenue has counted $31 billion with $6.8 billion net income. Company is more than 124 years in business, and employs 92.800 people. Coca-Cola Company is one of the small numbers of companies, which sales more than one billion drinks per day. The Coca-Cola Company was established in 1892 when Dr. John Smith Pemberton and Ed Holland formed a company named J. S. Pemberton Medicine Company. The company was established to sell three products: Pembertons French Wine Cola (now is known as Coca-Cola), Pembertons Indian Queen Hair Dye, and Pembertons Globe Flower Cough Syrup. Later on in 1894 company was renamed to Pemberton Chemical Company. Ed Holland became the Vice-president, while D. D. Doe was president of the company. After three years, company again changed name to Pemberton Medicine Company, a co-partnership between Pemberton, A. O. Murphy, E. H. Bloodworth, and J. C. Mayfield. Muthar Kent was elected CEO and Chairman of the Board on July 1, 2008. The economic growth is deliberate: by the Gross Domestic Product (GDP) in the United States prolonged at a yearly rate of 2.50 percent in the third quarter of 2010. The economy of the United States is the largest in the world. The economic system of United States is based on free market economy. It means that sole proprietors and business firms make the majority of the decisions. According to the graph in second quarter of 2008 GDP in of the USA fluctuated among 1%.the picture changed in first half of 2009, when GDP dramatically drop down to -6.8%. This decline GDP the USA effected to the sales of Coca-Cola Company. Company product sale also decline. Income level of population: According to the graph, there was a dramatic decline in GDP growth rate in March 2009. It means that overall income level of population drop down and in this case people do not by Coca-Cola Company products much. Nevertheless, the next year the GDP growth rate began to stabilize and reached a point of 2.5% in March 2009. As a result the income level in USA rose and it goodly affected to sales on company. Interest rate: Interest rate changes do affect the companys ability to borrow and influence businesses that buy KO products Inflation: The inflation rate in United States was last reported at 1.10 percent in November of 2010. The most valuable measures of Inflation are the CPI which measures the GDP deflator and consumer prices, which measures inflation of the domestic economy. Summarizing the data from the graph, he inflation rate was higher in 2008 when in 2010. In the period from 2008-2009 inflation rate was pretty high, that is why Coca-Cola Company raise prices to drinks. In 2010 the inflation rate was not far above the ground, which means that in this time company do not raise products prices much, in order to attract customers. Coca-Cola Company income straightly related to the U.S. dollar (USD). Company is based in the USA, and about 75% of its operating income from outside of United States. That is why company is very sensitive to the strength of dollar. As foreign currencies do not strongly related to the dollar, products which are sold in foreign countries are worth fewer dollars in the US. Another trend affecting Coca-Cola is that higher value of the US dollar the less America goods are sold outside of the United States. Entry 3: Effect of Industry Environment. The soft drink Industry, have the most phenomenon global marketing. The most important part of soft drinks is blended water with sugar, additives and flavors. The success of marketing and advertising such products is that soft drink companies advice to the customers, drink it instead of straight water. The soft drinks have the stale possession in the worldwide market. In 2002, world sales counted $193 billion US dollar. In contrast fruit sales exceeded just US $69 billion. In the U.S., soft drinks of the Coca-Cola Company, mostly sold in two liters bottles and one liter plastic bottles. Coke, Pepsi and Cadbury Schweppes control over than 91% of the U.S. market share. Industry Competition: PepsiCo and Cadbury Schweppes are main competitors of the Coca-Cola Company. There are a lot of smaller beverage companies competing domestically and markets of these non-CSD drinks sometimes possess major shares of their areas. For example Monster energy drink, produced by Hansen Natural (HANS), Red Bull energy drink of the Red Bull GmbHs, or Ferolito iced tea product of the Vultaggio Sons Arizona company. The Coca-Cola Company has competitors not only in soft drinks industry like PepsiCo, Inc., but in the nutrition companies like Kraft Foods, Groupe Danone, Uniliver, and Nestle. PepsiCo Inc. PepsiCo is the second world largest company all over the world. In 1898 in New Bern, North Carolina, druggist Caleb D Bradham created Pepsi-Cola. PepsiCo Inc. holds about one-third of US soft drinks market, it is about 31%.It means that Pepsi Company make a threat to the Coca-Cola Company. PepsiCo Inc. produces products such as Pepsi, Slice, Diet Pepsi, Mountain Dew and Mug Root Beer. Moreover it owns Frito-lay snacks. Cadbury Schweppes. The second direct competitor is Cadbury Schweppes; it is the number tree worlds soft drink producer. In 2007 revenue of the company was $5.75 billion. In US Schweppes have 18% of market share. Company soft drinks include Squirt, La Casera, TriNa, Wave and Spring Valley. The Total sales in the USA are about $12.9 billion. Entry 4:Effect of Political and Legal Environment. Legal factors which can could masquerade an enviromental threat to Coca-Cola company embrace new legislation of food and beverage products. New laws could threaten the company by creating more overhead expenses and decreasing the profit. Legal Factors: Government: Entry 5: Effect of Socio-Cultural Environment. Production of Coca-Cola Company is known by people of all ages, genders, nationalities, social possessions and religion. Price not very high, it means that practically every low and middle class person. The Coca-Cola Company has a number of unethical dessisions related with human rights. Unethical business decision: Coke can be ware harmfull for especially children and adults. Coca-Cola soft drinks are sold practicaly everywere in scholls, hotels, markets, parks, airports, highways and even rest stops. That is why every child are able to buy bottle of Coca-Cola. Coca-Cola contain a lot of chemicals which can be harmfull for young organizm and not only, because Coke badly eaffect liver work,stomach and work of organizm. Soft drinks include too much sugar, and it also can cause big health problems.It also causes a lot of problems related to dental heath. Cola depleats calcium in the bones, causing poor bone health. Coke full of coffein, which fast heart work and heart work not in proper way. To sum up Coca-Cola drink is very dangerous to peoples health. In 2005 KO introdused Coke Zero, it is most significant inovation of Coca-Cola Company. It is calorie free version of classik Coke. Coke Zero has a low level of sugar and suitable for people who are on a diet. Nowdays Coca-Cola Company produses not only carbonate drinks, it also produses such products like fresh juices( Fruitopia), teas, milk, bottled watter(Dassani) and hot chocolate for those who prefer healthy lifestyle. Such products do not badly affect the human organizm. Moreover it can help people to choose healthy drinks instead of carbonate.Coca-Cola must continue to adapt to the enviromental changes like healthy nutrition. Moreover company should include more healthyproducts. Entry 6: Effect of Ethical Enviroment. Each year Coca-Cola company donate more than 4 million US dollars for children with disable people. About 2 million US dollars company donate to african children.I means that company play role in social life not only it native country but others coutries also. Entry 7: Effect of Technological Environment Nowdays technology is one of the main factor in helping company stay profitable. With the time company should modernize delivery process production. It is true that with time technology prosses is developing, nowdays there are a lot of machines, which work more properly,faster and affectively than humans. All Coca-Cola company fabrics are modified with new equpment.And it plays a big role,because the same product made buy developed machine made faster, without any havy work, than product made buy human. It does not mean that people are do not needable in company fabriques. It is well known that Coca-Cola Company is multinatinational, that is why ofises of the company are state not in one coutry. With the help of internet company workers can meeting, discuss problems, share. They can speak using web cameras or wright reports using web mail. Higher technological prosses is, higher speed of making products. In our country each year truck with Coca-Cola print, drive throug Tashkent streets with new yaer muzik. It is very good advertizing of company. Company has its own website,there are all information about company its products nd delivery. Using Coke website cutomers can give advise what company should do in order to increase sales of production. It is also posibal beein in Uzbekistan buy Coca-Cola products via internet, this posibility make distribution products more comfortable. It is possibale to buy products online.