Coca Cola

Essay by vishalitoUniversity, Bachelor'sB-, March 2004

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Market Background

Introduction of Coca Cola Company

The original Coca-Cola Company was established in the US in 1886. The Coca Cola Company is the largest soft drink concentrates and syrups manufacturer in the world which operates world widely in almost all the countries in the world.

Coca-Cola remains the largest single brand in the UK, in value terms, with estimated sales in excess of £600 million in 2000 in the off-trade, outselling brands like Walker's Crisps and Persil. Furthermore, "in 1999 the international branding consultancy, Interbrand, declared Coca-Cola the world's most valuable brand, worth $83.8 billion".

Introduction of the UK Coke and Carbonates Market

The carbonates market in the UK is dominated by relatively few companies. These are, in the main, subsidiaries of global conglomerates such as the Coca-Cola Company and PepsiCo. Indeed, Coca-Cola, BSD and own-label alone account for well over two thirds of the carbonates market volume in the UK.

The proposed sale of BSD, in which PepsiCo already has a 10% share, is likely to make one of these groups even stronger in the UK market.

Coca Cola Company's major brand in the UK and in the world is Coke or simply Coca Cola. Other major brands of the Coca Cola Company in the UK portfolio include Diet Coca-Cola, Cherry Coca-Cola, Fanta, Lilt, Sprite, Dr Pepper and Schweppes. Dr Pepper, which has been on sale in the UK since 1982, is reported to be most popular among younger teenagers in the UK.

In appendix 1, there is a table showing all the major brand soft drink companies in the UK along its brand shares.

Competition

There is a lot of competition in this market as there are several different companies selling different brands of soft drinks. Keeping an eye on competition is becoming one of...