Securing Coca-Cola’s position in the marketplace

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Create 5 to 6 PPT slides based on following information. The slides should be created with using company’s logo and sign so, it specifies that which company we are talking about. Do not mix both companies information together into one slide. The slides should be specific based on following information: –

“A timeline of the salient information, transactions, products and circumstances that have been instrumental in securing Coca-Cola’s position in the marketplace.”

 

“Coca-Cola”

 

Strategies Coca-Cola uses to retain Company’s position in the market

Coca-Cola has been a world winning beverage company for decades. This has been achieved due to their ability to push decision rights close to the consumer as possible. Attaining such kind of authority in the market is due to the Company’s drive to allow local users have a variety of choices to choose from, despite the competition from rival companies.

With the rise in Technology, the Coca-Cola Company needed a despicable way at which they would attract clients digitally, thus giving rise to the Salient Solution. Through this method, a vast amount of information could be collected and managed digitally allowing Coca-Cola to manipulate data and learn clients’ preferences.

The Salient information has ensured that Coca-Cola has achieved progressive growth in the industry. Most vendors have, through this approach, excelled despicably as Coca-Cola has provided all the required tools and methodologies required in their operational growth.

Coca-Cola has also been generously partnering with other companies in various industries in order to ensure that they keep on hitting extreme records. Most of the major transactions that Coca-Cola has signed over the years include a truce with Netflix with an aim to reintroduce its brands that hit the market over three decades ago. They have also partnered with companies across the globe to introduce energy drinks and ready to drink coffee cans to the market.

Tapping the beverage industry worldwide has been Coca-Cola’s main strategy of growth. This has seen rise to new products dedicated to enticing clients across their regions. Most of the famous products include Coca-Cola Zero, Diet Coke, Dasani, Minute Maid, Monster, Fanta, Sprite, Powerade, Georgia, Vitamin water among many others. These products range from different varieties dedicated almost all kinds of beverage consumers. Statistically, there are over 100 samples of Coca-Cola Beverages around the world. In Atlanta, the world of Coca-Cola allows visitors to try all these flavors and even mix them to invent new tastes.

However, just as many other companies in today’s world, Coca Cola has suffered common organizational, technological and cultural barriers which have made their success a slow process. Having the good enough mentality has caused the company greatly leading to slower rate of growth since the rise in new products can easily lure clients to deviate to a different product. Nevertheless, the company has embraced these failures to be a turning point in their success due to their unending marketing strategies across the globe.

Coca-Cola maintains a five-strategy rule by which it succeeds in maintaining its position in the market. Revenue growth and employee incentives are aligned to ensure tremendous growth in profits. With affordable pricing, they are sure to maintain clients’ numbers. Brand investment is a key strategy in Coca-Cola to ensure a strong business connection and partnership. Productivity and efficiency have been the driving factors over the years. Using strategies that cut spending on non-media markets, the company has saved huge amount of revenue for reasonable brand Awareness. Coca-Cola thrives at a simplified company structure by pinpointing the key factors to consider improving on the functionality of the company. Also, the company occasionally revisits their previous actions in order to ensure they have room for improvement.

 

“A section highlighting the key ratios that are important for Coke & Pepsi (Financial Analysis)”

The key ratios that are important for Coca-Cola (“Coca-Cola Financial Ratios for Analysis 2005-2019 | KO,”2019)

Financial analysis is conducted to determine the past, present, and future financial conditions of a particular firm. The primary types of ratios include financial ratios such as liquidity ratios, operational ratios such as turnover ratios, debt ratios, and profitability ratios. Some of the important ratios for the Coca-Cola company include the following:

  1.     Current ratio

It is given by current assets over current liabilities.

Years 2017 2018
Current ratio 1.3439 1.0483

 

In 2017, the current was 1.3439. In 2018, the ratio decreased up to 1.0483. That indicates that the liquidity and efficiency of the firm deteriorated because their current ratio declined.

  1.     Total asset turnover ratio
Years 2017 2018
Total asset turnover ratio 0.4029 0.3828

 

It is obtained by dividing sales with total assets. For the Coca-Cola Company, it was 0.4029 in 2017, which implies that the investments of the company were profitable. The ratio decreased slightly in 2012.

  1. Debt ratios

The debt ratio is found by dividing total liabilities with total assets.

Years 2017 2018
Debt ratio 2.5128 2.2854

 

The ratio implies that the company could cover its debt, especially with a decrease in the ratio. The ratio was 2.5128 in 2017 and went down to 2.2854 in 2018. As such, the risk of the firm decreased in 2018 since the ratio was lower.

  1. Gross profit margin
Years 2017 2018
Gross profit margin % 62.5671 63.0525

 

The ratio should give a high value. That is because a higher ratio implies that the firm can achieve massive production at a lower cost.

The key ratios that are important for Pepsi (“Pepsico Financial Ratios for Analysis 2005-2019 | PEP,”2019)

  1. Current ratio

It is given by current assets over current liabilities.

Years 2017 2018
Current ratio 1.5134 0.9889

 

In 2018, the ratio decreased up to 0.9889 from 1.5134 of 2017. That indicates that the liquidity and efficiency of the firm deteriorated because their current ratio declined.

  1. Total asset turnover ratio
Years 2017 2018
Total asset turnover ratio 0.796 0.8327

 

It is obtained by dividing sales with total assets. For the Pepsi Company, it was 0.796 in 2017, which increased to 0.8327 in 2018. That implies that the investments of the company produce colossal revenue.

  1.     Debt ratios
Years 2017 2018
Debt ratio 3.5772 2.2135

 

The ratio implies that the company could cover its debt, especially with a decrease in the ratio. The ratio was 3.5772 in 2017 and went down to 2.2135 in 2018. As such, the risk of the firm decreased in 2018 since the ratio was more moderate.

  1.     Gross profit margin
Years 2017 2018
Gross profit margin % 54.6698 54.5615

 

The ratio should give a high value. That is because a higher ratio implies that the firm can achieve massive production at a lower cost. As its ability to high output decreased slightly in 2018.

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