coca-cola company

You are currently browsing articles tagged coca-cola company.

Sales of Coca-Cola’s flagship product, the carbonated sugary drink we know a Coke, dropped 3.5% last quarter; proof you can’t go against a cultural tide of healthier living and expect sales to hold forever. Coke’s parent has been doing a great job of diversifying its portfolio the last 10 years by adding juices, milk-based protein drinks, waters and energy drinks. Even with the tide receding for flagship Coke, earnings have been surprisingly okay. Looks like that is not the case anymore.

If you follow the tech sector as I do, you will know that product innovation can completely change markets is 3-5 years. The beverage sector has lots of innovations, according to Beverage Digest, but they are really incremental. Coconut water, craft beer, energy concoctions, and cold pressed juices are nice ways of redistributing marketing wealth, but haven’t fueled the big ass innovations we’ve seen in tech.

Coke needs to think differently. I’ve posted before about how they need to send R&D people into the jungles in search of the next cola nut…something with healthy properties. But Coke also needs to think about pricing and delivery. Why 12 oz. cans? Why cans and bottles? Why not explode the price point for a six pack? How about an annual subscription fee? Coke’s head is so tied up in its bottler arrangements, distribution networks, store detailers, fountain business it can’t think like an agile start-up. Sure they can buy 49% of the next Honest Tea, but can they be the next SnapChat.

My bet is they can. But not if they follow the innovation courses of GM or the financial industry. Follow the tech paradigm. Peace.  

Tags: , , , , , , , , , ,

coke

Sales of the Coca-Cola Company dropped 3.6% this quarter. It seems the tide has turned.  The global sugar water growth that offset the diminished appetite for Coke in the U.S. has brought Coke’s growth back to earth. Pepsi saw this sales ding years ago. Coke has been getting into the healthier-for-you businesses for a while now but it looks as if they must really redouble their efforts. Healthier-for-you is the future.    

Big data will help Coke figure out where lost sales are going. Big data, used by CMS (Center for Medicare Services), will also show where unhealthy eating and drinking habits are happening. And by sharing this information with doctors and insurance companies it will pave the way for incentives for consumers to eat better. Much the way insurance costs go up for smokers. Gonna happen.

When you are Coke and your sales are off 3.6%, you need to “refresh” your thinking. (I smell a cold-pressed juice purchase in the near future.)

Pepsi is holding its own by dialing up salty snacks. What’s the opposite of healthier-for-you?

Now is the time. There should be and will be a marketing investment shake up in Atlanta. And “happiness,” the Wieden+Kennedy campaign?  Not likely to make it in its current form — not in this climate.

Peace.

Tags: , , , , , , , ,

The Coca-Cola Corporation marketing story is simple but has many layers. The latest layer is the Coca-Cola Journey — a website built to engage, entertain and build loyalty among the family of Coca-Cola brand drinkers and enthusiasts. It’s a corporate website so you can find Minute Maid orange juice, Sprite and other family members represented. Coke learned through its Facebook experience that if it could dally with drinkers and they dallied back – the result would be nice lifts in traffic and presumably consumption. So Coke now fancies itself in the content business. Ding dong, Bud TV anyone?  A business goal, one might surmise, would be to draw users back from Facebook to the new Coke Journey site. Normally, I would applaud this activity, but not if it is going to change the business. Not if it promotes non-endemic brand experiences and cross-product ones at that.

You might say Coke is using only 5 or 6 full-time employees as content creators/curators – so how does that change the business?  I say these 5 or 6 may have large reach. And a few altered cells in the DNA can be a problem.

Were I running this show, I’d continue to host sites for each unique brand. I’d add the full-time content creators to each site, but make the content specific to each brand promise. Have them support the “motivation” behind each promise. If AOL and Yahoo! can’t get content creation to run on all cylinders, why would Coke be able to? This is another story of Facebook envy. Mr. Tripodi, I think you went a little bit off-piste with this journey. Peace.   

Tags: , , , , , , , , , , , , , ,

Coke or GM?

Coke is Coke because of its strong, concentrated, unique taste.  It’s refreshing on a hot day, energizing when one needs a jolt, and a drink that almost reflexively makes you smile. Coca-Cola, the company, suffers from a lack of this same “concentration.”

 

The Coca-Cola Company (stock symbol KO) is looking into buying Cadbury Schweppes PLCs Motts and Snapple brands and probably will do so soon, as a way to grow sales in the hot non-carbonated drink areas and maintain shareholder value. 

 

In my opinion, Coke’s growth has been retarded by the broadening of its portfolio over the years.  Juices, waters, teas, and other non-carbonated drinks are the enemy of Coke, not its sisters.  For years Coke has attempted to fend off these competing drink categories by marketing Minute Maid, Nestea, Dasani, etc.  But these separate brands in the Company portfolio are diluting Coke’s manpower, womanpower, fiscal resources and strategic focus. 

 

Coke needs to get Sergio Zyman back…and listen to him.  Now before you say “this doofus  doesn’t know Coke or the beverage category,” know this, I predicted Mary Minnick’s failure, without having ever stepped foot inside the Coke building. 

 

Coke should focus its portfolio on carbonated drinks – albeit healthier drinks – and put its best people on the task.  Right now, Coke is more like General Motors than Coke.

 

Tags: , , , , , , , , , ,

Coke or GM?

Coke is Coke because of its strong, concentrated, unique taste. It’s refreshing on a hot day, energizing when one needs a jolt, and a drink that almost reflexively makes you smile. Coca-Cola, the company, suffers from a lack of this same “concentration.”
 
The Coca-Cola Company (stock symbol KO) is looking into buying Cadbury Schweppes PLCs Motts and Snapple brands and probably will do so soon, as a way to grow sales in the hot non-carbonated drink areas and maintain shareholder value. 
 
In my book, Coke’s growth has been retarded by the broadening of its portfolio over the years.  Juices, waters, teas, and other non-carbonated drinks are the enemy of Coke, not its sisters. For years Coke has attempted to fend off these competing drink categories by marketing Minute Maid, Nestea, Dasani, etc. But these separate brands in the Company portfolio are diluting Coke’s manpower, womanpower, fiscal resources and strategic focus. 
 
Coke needs to get Sergio Zyman back…and listen to him. Now before you say “this doofus doesn’t know Coke or the beverage category,” know this, I predicted Mary Minnick’s failure, without having ever stepped foot inside the Coke building. 
 
Coke should focus its portfolio down to carbonated drinks – albeit healthier drink – and put its best people on the task. Right now, Coke is more like General Motors than Coke.

Tags: , , , , , , , , , ,