The business performance of 2007 has shown positive development to the satisfaction of the company. Yet they have to be very vigilant to sustain the up trend in the coming years also. The company needs innovative planning and strategies to sustain the gain of last year to enable them to keep floating always ahead.
Coco Cola is an old and established brand worldwide backed by a strong team of manpower. Internally they are very stable and strong to provide strong pillars to the edifice of marketing. They enjoy 94% brand recognition and more than 60% market share in the world. They need to be vigilant all the times to keep on appraising the performance and finding the underperformance if any at any level. With the type of expertise and skill they have it is sure to overcome the weakness that might creep in by active communication and crackdown.
Coco Cola is spread to a large domain all over the world market, which is full of complexities. Different people with different tastes, culture, psychology, different lifestyles live in different countries. This is always a challenge to the marketers to satisfy everyone. In India the company faced challenge from the very start and also when Coca Cola entered into this country second time. After Coco Cola had established its foothold in India the change in government gave a fatal blow to the company when the changed government ordered it to wind up and leave India on the ground that the country could not permit an ordinary product which is not high tech and which the country could produce itself. Second time when Coco Cola entered India again with a new government the local brand 'Thumbs Up' was thriving in the market that was favourite brand for the local countrymen (Basu, 2006). Coca Cola had to take over that brand and nourish it to claim the large market share it had enjoyed. Even today the brand holds command and contributes sizeable market share to the parent company. The stark competitor Pepsi had entry into the country and with better manipulation of the market and competed coca Cola to be the second in many markets (Rugman, et al., 2006, pg 20). The marketing strategy of the competitor must be better than coca cola or the company might be facing declining cyclical phase. This is a phase that cannot be tackled easily. The company will have to be more aggressive to fight the problem out. The business environment of emerging economies today is very congenial as everyone there is confident of all-round growth and wish to achieve in time. The willing contribution and cooperation to the growth prospectus is guaranteed. The government of the emerging economies are also highly conscious about the growing business cycle and are ready to provide full co-operation toward growth.
SWOT Analysis: Strategic situation
Strength: The extremely recognisable brand Coca Cola has for centuries created elitist image on the youths who brag of exhibiting the brand on their hearts and taking it, as their romantic partner on the street. The product is known for quality that attracts about 700 million people daily to enjoy with. The large network of bottlers of Coca Cola all over the world is the added strength of the company.
Weakness: The brand faced problems in certain markets such as Indonesia, Thailand on account of reduced