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Marketing Principles - Essay Example
Author : konopelskiimoge
Pages 11 (2761 words)
Name Professor Course Date Background information The Coca cola is one of the most successful multinational companies. Invented in 1886, the company recorded a total asset of about $ 86.17 billion in 2012 (August, 2012, p. 12). In the same year, the company’s profits stood at about $48 billion, one of the highest due to increased consumption and aggressive marketing strategies…
The main competitor has however been Pepsi Company. The latter for instance has a market share of about 75% in the Asian market. This is compared to 25% of the coca cola company in the same market. One of the main concerns in the company has been the sharp drop in the consumption of the sugary soft drinks. The drop has been witnessed in the United States, which offers the largest market, and the United Kingdom. The major cause of drop has been health concerns. For instance, majority of people with diabetes cannot drink the normal soft drinks. In addition to that, the increased lifestyle diseases have prompted majority of people to seek more healthy drinks. To achieve this, most consumers have shifted to sugarless drinks and fresh juices. This has put the coca cola company in an awkward situation with no option than begin production of sugar free products to maintain its growth and market control. Despite this, there have been allegations that some of the chemicals used as ingredients in the manufacture of coke may cause people to get cancer. It is this fear that has led to a sharp drop in consumptions. In India for instance, there was a sharp drop of about 11% in 2003 after the ministry of health raised health concern issues (Crowley 2000, p.98). ...