Coca-Cola Value Chain Analysis
I have taken the liberty to select the Coca-Cola Company as my subject of value chain analysis because I have generated some interest from receiving feedbacks from individuals at my reach. They have stated that they have stopped consuming the soda beverage due to health concerns. With this stated, I desire to look upon this subject and discover the reasons why the beverage from one of the most established brands in the world is suddenly declining.
First of all, before I begin, here are the background and general descriptions of the company:
The Coca-Cola Company is an American multinational beverage corporation and manufacturer, retailer and marketer of nonalcoholic beverage concentrates and syrups, best known for its flagship product: Coca-Cola.
According to the article titled “Coca-Cola Confronts its Big Fat Problem”, there has been a cultural shift surfacing against the Coca-Cola company. Health concerns have become a significant matter, which became an incentive for people to pursue healthier alternatives. As one may know, cultural shifts takes course within a long term timeframe; however, the cultural shift is taking a path that is disadvantageous for the beverage company. There are many reasons causing obesity and lack of health, but one thing is for sure within the minds of many: the Coca-Cola drink is definitely one of those reasons. Considering everything this article have stated, the Coca-Cola company is entering a stage of recession. One thing is for certain: The Coke company needs to develop strategies to get consumers to drink Coca-Cola once again.
According to the article titled “How Coca Cola can Improve Sales”, despite numerous campaigns the company is heading towards decline. These are some options the company is going to take, attempting to get out of decline (along with my insight regarding some of the tactics):
- Plastic and aluminum containers to be replaced by more environmentally friendly burlap cans
Environmental friendlier methods of output and production can undoubtedly improve the Coca Cola company’s reputation, as Corporate Social Responsibility is regarded as an essential element in a positive company. This can truly impact consumers to view the beverage company as one who cares for its society, and its environment.
- Introducing no-fizz version to target flat-cola drinkers
Certain customers might refer to the fizz as an unhealthy factor of the drink, while others simply prefer a fizz-less version of cola. This tactic certainly generates a new target market, which will then promote the company’s diversity, and can potentially attract numerous consumers.
- Expanding Coca-Cola distribution beyond four U.S. states where it is currently sold
Expansion remains as one of the most dire strategies in business prosperity. Emphasizing growth can increase the company’s reach towards its customers; moreover, its distribution will be further improved and can reach more markets than its initial grasp.
- Including free can of Coke inside every two-liter bottle of Coca-Cola
This is basically a marketing strategy that can take on the role of an incentive to get consumers to purchase more of their products. Providing more benefits, or at least, an extra can of the beverage can convince potential customers to purchase the whole product as a whole.
- Reducing chunky Cola pulp by 50 percent
Similarly to the fizz concern, reducing pulp by a percentage is a health concern that can reach certain customers that are extremely attached to health concerns; furthermore, it can be a benefactor for customers who enjoy less chunky pulp.
- Growing sales of product by no longer telling consumers to share a Coke, but instead, to buy one of their own
Another marketing strategy similar to the one mentioned before, but this time, with a marketing message contrasting the extra benefit of the tactic before.
In brief, most of the Coca-Cola Company’s value chain derive from its sheer marketing force considering its emphasis on brand messaging, creativity and social impact. There were many notable campaigns that will forever live within the hearts of many, as Coca-Cola’s ads are distinguished for its heart-touching, creative format. Nevertheless, do not just take my word for it, here are some examples of the beverage company’s inspiring digital marketing campaigns:
I hope my readers have enjoyed viewing such awe-inspiring videos!