Coca Cola.docx - Background of each Company Coca Cola Co was founded in 1886 by John Pemberton and it has become the global number one soft drinks

Coca Cola.docx - Background of each Company Coca Cola Co...

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Background of each CompanyCoca Cola Co. was founded in 1886 by John Pemberton and it has become the global number one soft drinks manufacturer. The company products available in about 200 countries and these products consists of more than 400 brands which include bottled water, soft drinks, and energy drinks in addition to juice products[ CITATION Bue18 \l 1033 ]. However, the Coca Cola Company is best recognized for its soft beverage, Coke. Since it start, the companyhas invested extensively in diverse advertisement to boost the market share and this has made it the most familiar brands round the globe. In 2018, this company had 42.2% market share[ CITATION Coc19 \l 1033 ], however, despite the dominance, the company has experienced decline in sales of its products because of obesity and other health rated concerns.Because of the challenges in market sustainability and penetration, Coca-Cola has made long-term goals and one of its key objective is “double its revenue by 2020 and to acquire or developscalable, innovative premium brands”[ CITATION Bue18 \l 1033 ]. During the past years, the company revenue has declined for instance in 2014, Coca Cola registered 15.5% net income and this was a big drop compared to 2013 when it made 18.3%. The company is dealing with health related challenges in the market and acquiring healthier drinks such as Vitamin Water.Net sales
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Background on the Industry and MarketCoca-Cola’s brands are the famous Coca-Cola brand, Fanta, Sprite, Minute Maid, Schweppes, and simply. The company have ventured in production of coffee and tea products under Costa brands and Fuze Tea which have received nice grown and popularity. The company makes water brands sold around the world. Despite this diversification efforts, 69% of the company soft drinks, they have lost popularity to healthier drinks. Coca-Cola has been experiencing revenue decline since 2014 when the health awareness and global growth issues started kicking in and hurting the carbonated drink business. In 2015, this company reported $44.2 billion in annual sales, however, this reduced to 41.9% in 2016, it went further down to $35.4 billion in the year 2017 and worse still in 2018, the company registered %31.9 billion insales[ CITATION Coc19 \l 1033 ].The company is expected to achieve a slight increase in 2019 as it transitions into water sales and healthier drinks. Even though Coca-Cola Company is expected to make highersales in 2019, the comparisons from the past years shows disadvantaged firms considering the sharp drop in sales comparing this to Pepsi which experienced a drop only in 2016. It is expected that PepsiCo’s growth rates will increase whereas that of Coca-Cola is expected to drop by 2020.
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