What is the weakness of Coca Cola Company?

September 19, 2022

Business

There is no doubt that Coca Cola, which was born in Atlanta on May 8^th, 1886, is a miracle in world beverage history. Without that mysterious syrup, there wouldn’t be a multinational company that is so brilliant today. From 1892 to now, Coca Cola has grown from a small local company to the world’s largest beverage company, with a market share of 48 percent. However, with beverage products growing in abundance today, Coca-Cola alone cannot guarantee our company’s future revenue.

In general, I think localization should be taken. As is known to all, although the process of globalization is deepening, the peoples of the world still have their own unique food culture. Especially in countries with a long history, it’s hard to force our own American culture into the minds of consumers in those countries. And based on various non-tax barriers, there are serious obstacles to the standardization of marketing strategies, economic level differences lead to different levels of consumer consumption, and infrastructure differences and other issues, the implementation of local marketing strategy is particularly important.

Firstly, Coca Cola needs to do advertising and social publicity with local characteristics.

Coca Cola should be able to accurately target advertising according to different environments, and actively integrate the traditional culture of various countries into advertising. Take China as an example, the Spring Festival is the most important traditional festival in China. Coca Cola can combine China’s national customs, paper-cut, pair, firecrackers and other perfect combinations of advertising, and invite local stars to shoot advertising.

In this way, not only can we enhance Coca-Cola’s popularity in China, but also bring Coca-Cola closer to Chinese. Meanwhile stars can influence the attitude and buying behavior of the target consumer. And increase their loyalty and satisfaction with the product. By the way, Coca Cola can make some changes with our products packaging. Such as the use of Chinese zodiac, pandas. They are so popular with the Chinese.

The second is to raise our image in the eyes of the local people.

Sports events and public welfare are the focus of attention. So Coca Cola can increase product awareness and reputation by sponsoring sports and donating to public goods.

The third is the strategy of local construction.

There is no doubt that locals have a deeper understanding of the local consumer philosophy and sales environment. By hiring local people as employees, it facilitates communication between colleagues and makes it easier to quickly integrate the corporate concept culture with local characteristics even more rapidly and reasonably to management.

The fourth and most important point is the localization of the product. Because what attracts consumers most is the product itself and what I have said earlier just plays an assistant role in selling our products. Therefore, Coca Cola need to make our products more attractive by constantly developing new and improving old products. For example, nowadays people pay more attention to physical and mental health and there is too much sugar in Coke Cola, which is disadvantageous for sales increase.

However, Diet Coke solves the problem well.

And we can also meet the needs of different customers through diversified products. For instance, the same problem can be solved by introducing new tea drinks or fruit juices. What’s more, tailoring our products to local tastes is necessary and vital, too. However, what we should pay attention to is that various kinds of beverage products on the market are emerging in an endless stream. And our new products must have their own unique flavor to separate from other tea drinks and juices.

Finally, Coca Cola’s huge size creates a problem of overlapping existing sub-brands. In the case of Smart and Fanta, they are carbonated drinks that belong to different fruit flavors, and they do not differ significantly in nature. We should update the product brand in a timely manner. And eliminate overlapping brands. So that consumers will have a clearer understanding of each of our company’s sub-brands. And it can facilitate consumer choice, too.

Hao Chen