The Coca-Cola Company Economic and Business Environment Analysis

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Master of Business Administration (MBA)

                                                Global Marketing in Digital Era

1. Economic and business environment analysis:

Demographics: Population, growth rate, distribution of population (age groups), rural vs. urban, cities vs. villages

The Coca-Cola Company (NYSE: KO) is the world's largest beverage company, refreshing consumers with more than 500 sparkling and still brands and more than 3,800 beverage choices. Our portfolio features 20 billion-dollar brands, 18 of which are available in reduced-, low- or no-calorie options. These brands include Diet Coke, Coca-Cola Zero, Fanta, Sprite, Dasani, Vitamin water, PowerAde, Minute Maid, Simply, Del Valle, Georgia and Gold Peak. Through the world's largest beverage distribution system, we are the No. 1 provider of both sparkling and still beverages. More than 1.9 billion servings of our beverages are enjoyed by consumers in more than 200 countries each day. We are consumed on earth and in space. Dive into the world of The Coca-Cola Company.

 In the month of May in 1886 Coca-Cola is created by John S. Pemberton and served at Jacob’s Pharmacy. When we talk about the first-year distribution of Coca-Cola only 9 drinks a day were sold in his first year. In the year 1891 they fist used calendar for their promotion. In the year 1901 the advertising budget surpasses 100,000 for the first time. In the year 1906 bottling operation begin in Canada, Cuba and panama and become the first three countries outside the United States to bottle the Coca-Cola. In the year 1912 bottling operation are started in the Philippines the company first expansion to Asia. In 1917 a relation between the Red Cross and the Coca-Cola system begins as the company and bottlers begin World War 1 blood drive. In the year 1925 the board of directors passes a resolution placing the secret formula for Coca-Cola in a bank vault at the trust company bank in Atlanta. In the year 1928 the company begins its long-term association with the Olympic Games by supplying drinks from kiosks surrounding the venue in Amsterdam. In 1930 Coca-Cola Export Corporation is created to market Coca-Cola outside the United States. In 1938 Coca-Cola enters Australia, Austria, Norway and South Africa. In the year 1945 coke becomes the registered trade mark of the Coca-Cola company. In another achievement Coca-Cola becomes the first product to appear on the cover of Time magazine in the year of 1950. In the year 1978coca-cola sign an agreement to re-enter the china market after a nearly 40 years of absence. In 1985 the company begin its operation in Russia. The company re-enters India after leaving the country in 1977 rather them reveal the secret formula of Coca-Cola. In year 2000 the Coca-Cola company sponsor the Olympic Games in Sydney, Australia. In 2008n sponsorship of the Beijing 2008 Olympic Games connect with more than 500 million consumers in china.

A. As Coca-Cola enters in India they were well aware about that India has the second largest population in India. The Coca-Cola Company re-entered India through its wholly owned subsidiary, Coca-Cola India Private Limited and re-launched Coca-Cola in 1993 after the opening up of the Indian economy to foreign investments in 1991. Since then its operations have grown rapidly through a model that supports bottling operations, both company owned as well as locally owned and includes over 7,000 Indian distributors and more than 2.2 million retailers. Current population of India is 1,353,889,067 as of Friday June 29 2018 on the latest United Nations estimates. They have seen the large growth rate and population in India, India population is equivalent to 17.74 of the total world population. In which 33.2 of the population is in urban. The median age in India is 27.0 years. Urban population is tends to grow 34% by the year 2020. The age group of India is 0-14 year is 27.34 percent, 15-24 year is 17.9%, 25-54 year is 41.08%, and 55-64 is 7.45, 65 year and above is 6.24%. Which clearly show them the clear future of their expansions. As we can see that India has the largest youngest population in the world which make them a good market for the future for expansions which coca cola already have planned to do. When we talk about the population who lives in rural and urban areas are as follows 67% population lives in rural areas and 33% lives in urban areas as per current status. As we are well aware that the pricing that Coca-Cola have kept for their product is quiet affordable a s per both rural and urban area population which makes them even more bigger market to grow as per the affordability of the product.

B. Men we talk about the per capita income the annual median per capita income in India stood at 616$, you can say it is 99th position among 131 countries. Though India has been ranked among the 10 wealthiest countries globally with total individual worth of 5200 billion dollar, but most of them largely owing to its large population, even if being per capita income is so low but due the product choice and price which is easily affordable and reachable to every person in the country which really give then extra advantage then the other country. When we talk about the wealth distribution in India in the period between 2006 and 2015, ordinary workers saw their income rise by an average of just 2% while the reached people are getting more reached you can say 6 times faster. As we can see in India top 1 % bags 73% of the country wealth while poor are getting more poorer every day. So if we talk about the wealth distribution India has its worse but as company still can see the affordability of the product and the population in the cities and the age group of it make them a promising market for the future.