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Socio cultural factors that will affect coca cola during the world cup

The Coca-Cola contour bottle, which dates back to 1915, is the most recognized packaging in the world today, and the exact formula is a famous trade secret. Over time the Coca-Cola brand has come to mean more than a drink, achieving celebrity status in many spheres of society. It represents the power of optimism and positive thinking. The Coca Cola corporation is defined to be the most well known trade mark in the world, and it is justly so. Coca Cola owns over 400 brands that appeal to many different people all throughout the world.

They are able to satisfy the needs of all their consumers and make their experiences with Coca Cola better. The Coca Cola products appeal to a wide range of people from all races, genders, and ages. Coca Cola is well known for its worldwide popularity as its products are sold to over 200 counties, while major competitors only sell in several countries, putting Coca Cola ahead of all competition. It is known worldwide and its branding is constantly earned by Coca Cola surpasses all other beverage companies and these funds would over the years, is still growing to this day, and will continue into the future.

Many aspects of Coca Cola prove to be superior to that of competitors, ranging from promotional techniques to corporate structure.

Some of these aspects include, positioning, market mix strategy, and implementation plan. These aspects place Coca Cola superior to competitors, instigating Coca Coal to aspire higher goals and missions.

Coca-Cola is the only brand in the world to have an entire museum that showcases its history, current reality and future possibility. Coca-Cola contains sugar, high carbonation levels and caffeine. Its taste is indescribable. Ariful Hoque Lecturer, Department of Marketing, Jahangirnagar University demand to have an report submitted by us for our course report marks. At his request, we, the members of the group wrote this report 1.

Socio cultural factors that will affect coca cola during the world cup

Information regarding political, economical, social, technological, environmental, and legal forces of the brand are taken account for the creation of PESTEL analysis. As the report is related with business, it is a business research. Hence the report has been prepared based on a research process. To analyze qualitative data we gone through many websites as well as the main website of Coca-Cola, various magazines and journals, many PEST analysis essays.

An Overview of Coca Cola 2. The Coca-Cola Company is an American multinational beverage corporation and manufacturer, retailer and marketer of nonalcoholic beverage concentrates and syrups, which is headquartered in Atlanta, Georgia. The company is best known for its flagship product Coca-Cola, invented in 1886 by pharmacist John Stith Pemberton in Columbus, Georgia.

Socio cultural factors that will affect coca cola during the world cup

The company operates a franchised distribution system dating from 1889 where The Coca-Cola Company only produces syrup concentrate which is then sold to various bottlers throughout the world who hold an exclusive territory. The company has a long history of acquisitions. Nationalism was also thought to be a reason for aborting the deal. Coca-Cola Headquarters - Atlanta, Georgia 2. Coca-Cola is a carbonated soft drink sold in stores, restaurants, and vending machines throughout the world.

Originally intended as a patent medicine when it was invented in the late 19th century by John Pemberton, Coca-Cola was bought out by businessman Asa Griggs Candler, whose marketing tactics led Coke to its dominance of the world soft-drink market throughout the 20th century. The company produces concentrate, which is then sold to licensed Coca-Cola bottlers throughout the world.

The bottlers, who hold territorially exclusive contracts with the company, produce finished product in cans and bottles from the concentrate in combination with filtered water and sweeteners. The bottlers then sell, distribute and merchandise Coca-Cola to retail stores and vending machines. The Coca-Cola Company also sells concentrate for soda fountains to major restaurants and food service distributors.

The Coca-Cola Company has, on occasion, introduced other cola drinks under the Coke brand name. In 2013, Coke products could be found in over 200 countries worldwide, with consumers downing more than 1.

Colonel John Pemberton was wounded in the Civil War, became addicted to morphine, and began a quest to find a substitute for the dangerous opiate. He may have been inspired by the formidable success of Vin Mariani, a European coca wine.

In 1886, when Atlanta and Fulton County passed prohibition legislation, Pemberton responded by developing Coca-Cola, essentially a nonalcoholic version of French Wine Coca. It was initially sold as a patent medicine for five cents a glass at soda fountains, which were popular in the United States at the time due to the belief that carbonated water was good for the health. Pemberton claimed Coca-Cola cured many diseases, including morphine addiction, dyspepsia, neurasthenia, headache, and impotence.

Pemberton ran the first advertisement for the beverage on May 29 of the same year in the Atlanta Journal. By 1888, three versions of Coca-Cola — sold by three separate businesses — were on the market.

  • With this increase they risk losing customers who cannot afford their products because it is a desired product not a necessity;
  • The presence of Coca cola is global but in order to sustain they need to work hard to keep their competitive edge while retaining their consumer base;
  • Thus this would improves sales, delivery and in turn profitability of the company on the whole The changes which are related to the technology would lead to the launch of products which are new in the market or would work towards improvements in the existing product;
  • Another aspect which they need to tackle is the obsession of the present day consumer with health;
  • Coca-Cola is the only brand in the world to have an entire museum that showcases its history, current reality and future possibility;
  • Nope, it's a pencil sharpener, or the perfect rattle for your baby.

A copartnership had been formed on January 14, 1888 between Pemberton and four Atlanta businessmen: Not codified by any signed document, a verbal statement given by Asa Candler years later asserted under testimony that he had acquired a stake in Pemberton's company as early as 1887. John Pemberton declared that the name "Coca-Cola" belonged to his son, Charley, but the other two manufacturers could continue to use the formula.

On July 5, 2005, it was revealed that Coca-Cola would resume operations in Iraq for the first time since the Arab League boycotted the company in 1968. The word "Classic" was removed because "New Coke" was no longer in production, eliminating the need to differentiate between the two.

The formula remained unchanged.

Coca cola cross cultural marketing

It is a part of the external analysis when conducting a strategic analysis or doing market research, and gives an overview of the different macro-environmental socio cultural factors that will affect coca cola during the world cup that the company has to take into consideration.

It is a useful strategic tool for understanding market growth or decline, business position, potential and direction for operations. The growing importance of environmental or ecological factors in the first decade of the 21st century have given rise to green business and encouraged widespread use of an updated version of the PEST framework.

Specifically, political factors include areas such as tax policy, labor law, environmental law, trade restrictions, tariffs, and political stability. Political factors may also include goods and services which the government wants to provide or be provided merit goods and those that the government does not want to be provided goods or bads. Furthermore, governments have great influence on the health, education, and infrastructure of a nation.

These factors have major impacts on how businesses operate and make decisions. Trends in social factors affect the demand for a company's products and how that company operates. They can determine barriers to entry, minimum efficient production level and influence outsourcing decisions. Furthermore, technological shifts can affect costs, quality, and lead to innovation. Furthermore, growing awareness of the potential impacts of climate change is affecting how companies operate and the products they offer, both creating new markets and diminishing or destroying existing ones.

Breakdown on different forms of PEST analysis: The government has control over the manufacturing procedure of these products in terms of regulations. Companies who fail to meet the standards of law, are fined by the government. Following are provided some of the factors that are influencing Coca-Cola's Operations. These are; competitive product and pricing policy pressures, ability to maintain or earn share of sales in worldwide market compared to rivals. This would include any kind of unrest, change in government and the applying of restriction on movement of goods across country boundaries.

This would affect the penetration ability into new markets as well as the old ones. This would also affect the ability to get into alliances which would be advantageous strategically with the local industries as well network related to distribution and also sales.

Economic recession can be one of the most important factors that influence Coca-Cola Company. The behavior of consumers changes during recessions. They have less money to spend and cut back personal spending in response to the overall decline in economic activity. The change which is economic in nature would be aspects like the change in interest rates which would lead to business depression and would cause redundant and low levels of spending.

Like it was seen in the US market despite the fact that it was doing very well it did not take too long for things to take a complete different route as a result of the recession which took place which was because the Gross Domestic Product had been negative for two consecutive years.

The good part was that it was short lived as a result of the actions taken by the Federal Reserve as well as the Congress. This helped the economy take a U turn and get back to reflect growth which was positive.

The cutting down of interest rate by the Federal Reserve helped to promote expansion of companies while increasing the level of debt. As the production and technology costs would go down the products being offered in the market would be at lower prices thus in turn benefiting the consumers.

The economic condition as seen in the United States was very badly affected as a result of the September 11 attacks but the economy has recovered now and going back to normal.

Time is the best healer for a situation like this. The industry related to non alcoholic beverages is flourishing and growing drastically. Many markets have opened up to for the manufacturers of soft drinks as the economic condition have improved there and can promote their growth as well. This growth would be as a result of high level of profitability while sustaining in a stable manner and also coming up with new and more improved products.

Inflation increases cost of production. Consequently, Coca Cola have to face the uncontrollable problem of increasing their pricing. With this increase they risk losing customers who cannot afford their products because it is a desired product not a necessity. Due to inflation in 11 years the price of an identical bottle of Coca Cola has doubled in price.

Socio cultural factors that will affect coca cola during the world cup

Alternatively, Coca Cola could be forced to lower their prices to facilitate an increase in consumption whilst taking a less favorable profit margin. Coca-Cola operates in more than 200 countries.

Because of the local nature of our business, we are in the unique position to contribute to the economic vitality of even the most remote communities around the world. The Coca-Cola system has more than 900 plants around the world. Our ingredients and raw materials are largely sourced locally. And our 92,400 employees represent thousands of communities and many cultures.

In addition, our bottling partners 15 employ hundreds of thousands of people around the world and are committed to supporting community investment programs. Our global business stimulates job creation throughout our value cycle.

We contribute to the economic success of each community by employing local people; paying taxes to governments; paying suppliers for goods, services and capital equipment; and supporting community investment programs. Past independent studies on the economic impact of our business in Asia, Africa and Eastern Europe have consistently shown that for every job in the Coca-Cola system, an average of 10 more jobs are supported in local communities.

The change which is related to lifestyle as well as attitude would be termed as social change. For example now that more women were going for work the need related to products for usage at home which would reduce time usage came up. Due to this shift the users of soft drinks are shifting to water or diet drinks and thus the need to adapt and launch products accordingly have come up.