Coke's Downward Trajectory Case Analysis Essay
To: Executive Level Member Full Name From: Your Name and Institution/Department you are representing Re: Case Analysis Date: Date Subject: Analysis of Coke’s Downward Trajectory in Line With Vision 2020 It has come to our attention that soda consumption is in a fall in the US and the main reason being Americans turning away from sugary beverages. As requested, we have therefore, evaluated the causes of the downward trajectory of soda and the desirability of reversing this downward trend in soda sales. Based on our analysis, we have reached the following conclusion: 1. Consumers are substituting beverages with caffeine and bubbles as an option for healthier beverages. 2. The existing advertising strategies have several weaknesses that …show more content…
The first section addresses the analysis of the challenges that has led to downward trajectory of soda sales. The second part addresses the master brand in line with vision 2020. Then the last section explains the recommendation as well as the conclusion. Analysis on Substituting Beverages The coffee chain has proved to be the primary substitute for sugary beverages such as soda. This has affected Coca-Cola directly in terms of soda sales which were the major source of revenue for Coca-Cola. The Coca-Cola revenue was at 75%, with the overall soda sales in the US per capita having dropped to 25% since 1998 as at June 2016. In the past 15 years, non-sugary beverages, such as, single-serve bottled-water sale by 76% while ready to drink tea grew by 91%. This demonstrates clearly why there is drastic reduction in the consumption of sugary beverages. Coca cola also announced a 7% increase in sales of noncarbonated beverages. Also the packaged water volume had a double digit increase in the first quarter of 2016. Consumers perceive sugary beverages as of high risk to health thus branding soda negatively. This makes consumers to shift to non-sugary beverages to fulfill their needs. Coca cola therefore should expand its master brand plan in line with vision 2020 to remain competitive in the current
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