Macro Economic Analysis of Coca Cola Essay

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Pages: 17

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Research Paper on Coca Cola
Research Paper on Coca Cola Company
The Coca-Cola Company Limited is the world's largest beverage company and is the leading producer and marketer of soft drinks. Due to the facing of highly competition in the market, the Company used more than million dollars in the
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- Vest amount of investment in the marketing campaigns: Coca-Cola has put a huge amount of money in investing the marketing campaigns. However, it rivals are also invested large amount in marketing, thus the result of the campaigns are less effective (Datamonito plc, 2003).

- World wide economic and population growth: this will sustain the growth of the beverage market as the demand of product increase.

- Soft drinks dominate the Australian beverage market: 2/3 of the beverage market is dominated by the soft drinks and fruit juices comprise 13.1%. More of the sales are depending on the carbonate soft drinks.

- Political and economic instability in many developing countries - Coca Cola has recently report sales decline in the region of Indonesia and Thailand because of the economic weaken and lower the consumer purchasing power (Mclean, 1998).

- Competition in national, regional and global soft drink companies - they have a threat on substitutes. As there is only a weak commitment between Cola and consumer, their switching cost is low. It is possibly substitute by others beverage such as coffee, juice, tea, milk and hot chocolate ("Cola Wars", 1991).

- Consumer attitudes changes - Although soft drinks are dominated the Australian beverage market, there is a significant growth in the fruit juices and bottled water market due to the increase awareness of the health concern (Food Australia, 2003).