As a result, companies are interested to invest in developing these units further to gain a larger market share and attain a stronger position in the market. With an aim to cater to the changing needs of consumers to zero calories and no sugar drinks, Coca-cola company has launched a number of products/brands to cater the same. The industry has high potential to grow hence giving the room to the products to grow as well only if the pertinent issues are managed effectively. First, you'll need data on the market share and growth rate of your products or services. Learn more about the 4ps of Marketing Mix, Your email address will not be published. Coca-Cola: Ansoff Matrix. Coca Cola’s strength, weakness, opportunity, and threat assessment will be beneficial in assisting Coke in developing a grand strategy within the soft drink business. Growing healthier lifestyle trends and emerging markets have prompted the brand to invest a large amount of capital in healthier beverages in order to differentiate itself from competitors and grow brand awareness and market share. Since the industry is mature, the company needs to invest little effort to keep the sales high as the business unit has captured a large market to generate cash. Coca-Cola as a beverage … A larger segment of the operations is based on finished products (including sparkling and still beverages) manufactured by the company, constituting 63% of the operations in 2015 (The Coca-Cola Company, 2015). Estrel, M., 2016. Having a presence in 200+ countries, coke has been the no.1 choice for millions of consumers all these years when it comes to choosing a carbonated soft drink. In Europe and Asian regions, Kinley is being sold while Dasani bottled water is targeting the US and UK market. Let’s see what are these 4 different quadrants of BCG Matrix: These are the products with low growth or market share. Coke brand which is currently regarded as a cash cow for the company will eventually fall in quadrant qaudrant in the future due to all these factors. What is Marketing Mix of Apple and how it’s helping in creating worlds most valuable brand? I. Strong brand identity – Coca-Cola is a highly popular brand with a unique brand identity.Its soft drinks are the most-selling drinks in history. As indicated by Kell (2015) the brand has received relatively favourable response in the past, however recent data shows that the brand is losing its popularity. Therefore, The Boston Consulting Group designed product portfolio matrix (BCG matrix) or growth-share matrix to help business with long-term strategic planning. Kell, J., 2015. Products or Business Units which hold a high market share and are also considered to grow in the future are positioned as Stars. Worlds leading ready-to-drink beverage company, Coca Cola company has more than 500 soft drink brands, from Fuse Tea to Oasis to Lilt to Poweradeorlds, but none of them is anywhere close to coke brand in awareness, revenue, and profit. 2342 2356 Introduction of Coca-Cola. Then, prepare a SWOT Matrix for the Coca-Cola Company. In case of Coca-Cola life, the brand has not been able to gain expected level of market share. Coca-Cola Boosted by Sales of Tea, Bottled Water. When examining market growth, you need to objectively compare yourself to your largest competitor and think in terms of growth over the next three years. It is also referred to as the BCG growth-share matrix. on BCG Matrix on Coca-Cola Names of Group Members. Form 10-K. A slowdown in sales has been a temporary setback for the organization, however adjusting the business strategy has helped the management to regain its firm hold in the industry (Estrel, 2016). The market has growth opportunities, but these products have not been able to take benefit of these opportunities in an effective manner. Coca-Cola as a beverage has been operating as a cash cow for the Coca-Cola Company, as the brand is sold across 200 countries in a mature beverage industry. They operate in a high growth industry and have a high market share and for this reason, they require high cash investment to maintain its market share. The Guardian, [online] February 13. The candy seems have a loyal customer base. With a year-on-year decline in sales of carbonated soft drinks like Coca-Cola, the brand anticipates the drinks market may be heading less-sugary future – so has jumped on board the growing health drink sector. 3 reasons why Diet Coke sales will keep plunging. Cashcows are the products that have a high market share in a market that has low growth. To cater to different customer segments and their needs, coke is looking out at launching different variants of bottled water EG: Apart from just simple bottled water, Coke also offers Kinley and Dasani sparkling water  (just to cater to affluent customers). The market is at a mature stage for these products, nevertheless, these products continue to generate cash for the organization. For carrying out industrial analysis, The Five Force Model presented by Michael Porter in 1979 is being used as the de facto framework since the time of its introduction. The market is still in the phase of development, therefore, the stars have the likelihood of further adding to the existing market share and create a steady source of revenue for a business entity. The beverage industry is at an inflection point and is undergoing a major transformation. Highest brand equity – Coca-Cola is undoubtedly one of the most renowned brands with the highest brand equity. Additionally, when reviewing a grand strategy, there is not just one model to use and by comparing the Boston Consulting Group (BCG). Coca-Cola Marketing Mix The marketing mix of Coca cola has been changing over time with more and more products being added such that today it has 500+ products, and many different ways of advertising all those products. The Boston Consulting Group (BCG) matrix was used to … The BCG Growth-Share Matrix The BCG Growth-Share Matrix is a portfolio planning model developed by Bruce Henderson of the Boston Consulting Group in the early 1970's. It has low growth, but generates good cash flow. BCG Matrix of The Coca Cola Company. Learn the BCG Matrix of Samsung and understand different business units which fall under different quadrants. The Boston Consulting Group (BCG) Matrix is used in analyzing the various products being sold by manufacturers. The bottled water produced by the Coca-Cola Company can be categorized as a star for the organization. These are low growth or low market share products and have very few chances of showing any growth. The company has been around for decades, and its products get consumed worldwide. But because of this Coca cola is … Coca-Cola life is a brand that has been launched with the aim of targeting the market that is seeking low calorie soda. Available at: [Accessed 12 September 2016]. The rising number of people increases the need to produce more bottled water to fulfil the needs of the expanding population. You can now modify the BCG Matrix example below using Visual Paradigm's online BCG Matrix tool. Coke –  Declining demand for carbonated soft drinks due to increasing demand for low calorie and healthy beverages and snacks is what is attributing the diminishing sales of Coke brand. The BCG Matrix for Coca-Cola is as follows: Cash cows are those business products which are a significant source of income for a business entity and generate enough sales to obtain a significant market share in the local or global industry. Let’s check out the BCG Matrix of Coca Cola and what products of the company fall under what Quadrant. This is a simple example of a BCG Matrix application for google. They require less cash investment and generate more cash than required. Coca-Cola is one of the most well-known brands in the world. They are the star products or businesses of the company. Every business needs strategic planning to rule in the industry. For the BCG (Learning Exercise 6C) Use the information in the Learning Exercise in your text to prepare a BCG matrix for the Coca-Cola Company locating each division where you believe it represents its position relative to market share and growth.

bcg matrix beispiel coca cola

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