Drink Business Plan Essay

The side cables length nutrientstuffplaceing plan forms the basis for the introduction of an mod innovative crop by the coca-Cola Company. The compend tout ensembleows us to out derivation the best strategies to follow for the effect of the companionships strategic goals. Bubble boil give be tradeed as a comical functional tipsiness while striving to reinforce the societys status as the attractor in designing and prospering growth despatches. The trade strategies go out enable to reach a grocery store size of an estimated 8,688,300 people (tar arrive ated) with a forecasted sales outgrowth prospect of 7.3% everywhere the future(a) 4 years ($243,029. 47 profits), while satisfying the take of the withal-unserved commercialize for ready-to- whoop it up tattle afternoon afternoon tea. Success go out be reflected by a sizeable capture of market sh atomic number 18s inside this market, while strategically carrying the company up to the top spot as th e market draw in the functional imbibings piece of frail drinks. export authority difference will be considered in China. pic Brief description of the company The Coca-Cola Companys internality undertaking is to benefit and refresh everyone it reaches.Founded in 1886, we are the worlds leading manufacturer, marketer, and distri exclusivelyor of non-alcoholic beverage concentrates and syrups, which are used to produce n earlier 400 beverage fools that make up for our wide portfolio. Our incorporate headquarters are realized in Atlanta, and we are holding local operations in everywhere 200 countries nearly the world. Our activities cover all sectors of the beverage industry. We are the second leading player in functional and Asian specialty drinks, while ranking number one in evaluate for the ready-to-drink tea sector (ref. 1, p. 1).Brief description of the new merchandise, & strategic role in the future position of the company Bubble bombinate will be a bottled b everage and will be positioned as the precisely ready-to-drink Bubble Tea output in stock(predicate) on the market. The beverage will guide a cat valium tea base with enhanced fruit flavors (passion fruit, strawberry and lime) as well as tapioca pearls. It will realise an entirely unique inebriety experience to its consumers. It will present itself as a funky and uncommon alternative to traditional tea while providing the great taste of authentic fruit juice in an attractive and well-to-do packaging.The strategic role of Bubble seethe for The Coca-Cola Company is focus on around one-third objectives To stay at the forefront as the market leader in innovative product introductions and thriving product launches To strengthen and satisfy the needs of the to a greater extent adventurous Generation Y consumers with a new eye-catching and FUNctional product To become the market leader in the functional drinks segment with change magnitude market shares. pic INDUSTRY analy sis Consumption The sales volume for the functional drinks segment (ref. D2) in Canada has reached $342.2 millions in 2004 for a volume of 125. 9 million liters (ref. 2). This product segment has shown a steady growth since 1999 an change magnitude of 13. 5% over a period of 6 years ( auxiliary A). The use rate per capita in 2004 has reached 3. 94 liters, which represents a 4. 0% join on compared to 1999 (ref. 3). The growth of this particular market is largely due to a slow shift in consumer bring downs. Trends Through the early 1960s, fleecy drinks were synonymous with colas in the mind of consumers. In the 1980s and 1990s, up to now, other beverages (from bottled water to tea) became more commonplace.Coca-Cola and Pepsi responded by expanding their offerings through alliances (e. g. Coke & Nestea) and acquisitions (e. g. Coke & Minute Maid), moreover also by focusing efforts on portfolio diversification. Today, while the soft drink industrys mensurate has increased in 2004, the volume sales of carbonated soft drinks has declined due to a large similitude of consumers who are opting for the trend towards healthier alternatives in the functional drink segment ( competency drinks, smoothies, milk & juice drinks, sports drinks) as well as bottled juices and water (ref. 5).Companies have been actively engaged in new product developments in ordinate to counter the gro dress out aheadg concerns just about negative health impacts of heights-fructose drinks, only also to increase the get hold of in a market where product offerings are profligately maturing (ref. 4). New flavor introductions and health-conscious formulations have been launched in an attempt to offset the decline in carbonated soft drink sales (ref. 6). The functional market is expected to show sustained growth and consumer interest in the future years as consumption shifts to trendier, healthier and more sophisticated products (ref.7).Profitability & future growth potential In 19 93, Concentrate Producers acquire 29% pretax profits on their sales, while bottlers earned 9% profits on their sales, for a complete industry profitability of 14%. While the functional drinks sector only accounts for 3. 7% of the be soft drinks sales in 2004 (Appendix B), estimates are forecasting a growth of 7. 3% in sales and 11. 0% in volume consumption by 2009 (ref. 4).SWOT ANALYSIS (Strengths and weaknesses, opportunities and threats) Strengths Weaknesses stigmatise strength Reliant upon line extensions force outful stride in new markets Reliant upon particular carbonated drinks Results of operations Brand dilution tough existing dissemination channels door into difficult non-core categories Saturation of carbonated soft drink segment Opportunities Threats New product introductions Strong competition Brand is attractive to global partners Potential health issues guiltless trade Explanations in APPENDIX C COMPETITION Coca-Colas top competitors for the soft d rinks industry are PepsiCo (31. 6%) and Cadbury-Schweppes (15. 8% of market), which combined, represent about 48% of the total market (ref. 9). Coca-Cola is leading with 43. 7% of the total soft drinks market. In the functional drinks sector, PepsiCo is the current market leader with 60. 5% of the market shares in 2004. Coca-Cola Co is second with 32. 8% (ref. 2, see Appendix D1).Bubble boil will launch into a soon unserved subset of that market (RTD Ready-To-Drink Bubble Tea), which is until now unexisting. It is anticipated that the following brands could potentially compete with Bubble bombilation in the functional drinks market Brisk, Lipton Iced Tea, Sobe (owned by PepsiCo), as well as Snapples and Hawaiian Punch (owned by Cadbury/Schweppes). Bubble Buzz also creates a potential situation for crumbnibalism with Coca-Colas very own brands of iced tea and other functional drinks.The current market for traditional Bubble Tea is fragmented, since the distribution is restricted to local outlets and parcel outing points such as counters and small Bubble Tea shops in scattered locations across Canada. However, level competition from these local players is not anticipated, since the trade roll-out will initially emphasize on product sentiency and both sales channels do not reach or serve the same market (retailing vs. counter/restoration). A sacrosanct distribution system already exists with Coca-Cola, since partnerships and channels are already in place.This will facilitate the products reach into its target market. Further data concerning competing market shares and distribution channels are available in Appendix D(1-3). Barriers to entry Business practices Manufacturing Due to the number of competitors, it will be hard to prevent Producing bottled Bubble Tea requires sizeable capital imitation behaviour ( curiously from PepsiCo) investments for the specialized needs of the manufacturing chain Risk of competing with emerging private labels (e.g. Pr esidents(from ingredients to final packaging specifications) Choice) The marketing campaign to make this unknown brand popular Given the wide array of brands (saturation in the soft drink requires more promotional expenditures than a traditional brand market), it becomes a challenge for Bubble Buzz to stand out extension TARGET MARKET. component identification RTD (Ready-to-drink) bottled Bubble Tea, to be constituted inside the Functional Drinks sector Segment needs The product will cater to both physiological needs (hydrating and nutritional value) and social needs (perception of a social, fun drink with a sense of belonging at heart peer consumer groups) (ref. 11, p. 127). Segment trends The current trends include a shift away from junk foods and carbonated drinks, a growing interest for healthier / beneficial products for the mind and body (ref.10), the trend towards the availability of on-the-go products for those with an active lifestyle, as well as the trend for person alization through customization (or for beverages, through variety-seeking in a wide introduction of flavours ref. 6).Segment growth potential Statistical reports anticipate a segment growth of 1. 72% over the next 9 years (2015) for the 10-29 years old subsets (ref. 12). Refer to Appendix E. Size of the segment ( world) 8,688,300 (329,600 L). Refer to Appendix E. Segmentation variables and breakdowns for Canadian consumer market of Bubble Tea MAIN DIMENSIONS VARIABLES BREAKDOWNS Region Nationwide (all provinces and territories) with emphasis on urban / metropolitan areas, and adapted strategies for all geographical groups Area size 5000-19,999 to 4,000,000+ Density Urban, suburban climate All (East, West) Age 10-29 years old (teenagers, studying age and young adults) Gender Male and effeminate Income All under $30,000 Occupation assimilators new graduated new workers young professionals Education Elementary quaternate grade, High school, CEGEP and Universit y Race All Asian, Black, White, Native other with adapted strategy for Asian consumers already old(prenominal) with Bubble Tea Home ownership Renting apartment/condo, living with parents (Highly discretionary in personal spending) Personality Brand conscious, anchored in popular culture, inclined for differentiation and sophistication, very tolerant towards multiculturalism and internationalism (open-minded), quick maturation with modern products Lifestyle Most of them dependent on parents, no major responsibilities, highly influenced by peer groups, active life, importance of school, work and social life Benefits sought COMMUNICATION BENEFITS -Nutritional information -Informational textbook on history of product FUNCTIONAL BENEFITS - healthier than soft drinks -Convenient, easy to take out PERCEPTUAL BENEFITS -Quality/ allowance price -Social standing/good-looking Usage rate Seasonal (peak in summer), daily-basis, weekly basis drug user status Non-user, regular user (current user through existing bar-shops) Loyalty status None, medium, strong side strategy The only RTD bottled bubble tea available. Funky & eye-catching bottle, functional packaging, premium-priced, cool, new and unusual, unique drinking experience, flavors of play (tapioca pearls, oversized colored straw), variety of flavors, sweet, refreshing, for hip & young people, healthier alternative to heavy-sugar drinks. CUSTOMER ANALYSIS Profile Name bobsled Thomson Date of Birth 25.03. 85 Age 20 Occupation University Student Country Canada Needs Healthy lifestyle/Social belonging People Roommate/Friends/Family Places Clubs/Coffee shops/University/ gym Activities Basketball Team Due to his active and quick-paced life, bobfloat wakes up at 630AM every morning. Today, he puts on his trendy Lacoste Polo and Diesel Jeans, and of course, he always has his Puma shoes on. After having called his friends with his new Samsung camera phone, he leave s his apartment and goes to his gym by metro, while listening to his favourite music that he downloaded to his iPod. Bob usually likes to work out before he has to head to University.That way, he feels he has more energy and feels ready to confront his busy day attending courses and getting things done. On his way to school, Bob knows he is thirsty and he feels the need for something very refreshing. He stops at a convenience cut in next to the gym. Standing in front of all the choices in the beverages aisle, one particular bottle catches his sight. And he instantly recognizes the brand. He knows that this is a bottle of Bubble Buzz, because not only does his other friends often drink it, but he also heard them talk about this brand new product that Coca-Cola fitting launched. He also previously saw Bubble Buzz ads when he surfed on his favourite websites.He grabs a bottle, and takes a closer look at the nutritive information label. He is very dexterous to see that the new drink is more nutritive and definitely healthier than the other soft drinks that were available on the shelves next to it. The higher(prenominal) price of the product doesnt bother him, since he perceives Bubble Buzz as a high-quality, functional product, which is manufactured by a well renowned company. Plus, he did not feel like simply buying bottled water, or carbonated soft drinks. Because of his inclination towards more sophisticated tastes, and because he likes to try new products on his own, he thinks this bottle is worth the price.Because of his busy schedule, Bob prefers to restrain time as much as he can. Thus, he decides to buy two bottles. One to crush his immediate thirst, and another one that he wants to save for later in the day. He sees that the packaging is so convenient and easy to carry, and so when he exits the store, he puts the second bottle in his backpack. He attends all of his breakes. During his break, he always hangs out with his friends. A lot of them are d rinking from different Bubble Buzz flavours. He opens his second bottle, since he had such a great experience with the first one. He like that the beverage was so unusual, yet refreshing. The drink surpassed many of his expectations.He has no doubt about it. Bob will continue to buy Bubble Buzz for its good taste, and also because at his age, he sees it is the coolest trend right now. pic Based on the aforementioned analysis, Bubble Buzz appears to be a profitable and innovative product with a strong outlook for market share presence and segment growth opportunity. Upon execution of instrument of the marketing plan, the Coca-Cola Company will regain increased market shares and claim its targeted situational position of market leader in the functional drinks segment as well as keeping its long-standing consumer recognition for innovative and successful product launches in diversified markets.Projected profits will be $243,029. 47 (see financial projections). market Plan Part 2 Mar keting Strategy pic The objectives of the marketing plan are strategically centered around 3 criteria to create a strong consumer cognisance towards a completely new bubble tea product from Coca-Cola, to establish a wide brand recognition through the capture of market shares in the functional drinks segment, and to become the top market leader in that particular segment within the forecasted sales figures. pic PRODUCT STRATEGY The core o Bubble Tea beverage in a pre-bottled, ready-to-drink format.The actual product o Packaging and labeling see figure below o Branding colorful, aspect of play, round shaped, prominent Bubble Buzz logo written in modern font, catchphrases such as Think outside the Bubble and Get Your Buzz. o Trade form Bubble Buzz, a Coca-Cola product o Brand personality energy, funky, cool, functional, original, funny, healthy, etc. o Brand equity Coca-Cola provides a quality, consistent, innovative and accessible soft drink reputation. Augmented product o Nutrition al information, Status (social drink), Features promoting the website, Health benefit of a green tea base (ref. 17) Marketing considerations o Product life roll Bubble Buzz is a low-learning product. With a strong marketing campaign, sales will begin immediately and the benefits of the procure are readily unders alsod (ref. 11, p. 301).Since Bubble Buzz is prone to product imitation, Coca-Colas strategy is to lead distribution quickly, which is currently feasible thanks to the companys high manufacturing capacity. o Product class Food & beverage ( Soft Drinks ( Functional Drinks (refer to Appendix D2 for a break-down of the functional drinks market). o Bubble Buzz follows the practice of product modification (ref. 11, p. 304) Coca-Cola is introducing an existing beverage (bubble tea) but redefines the drink with a new, more convenient package. Bubble Tea will now become a widely available drink in multiple retailing (distribution) channels. pic PRICE STRATEGY The price strategy t hat will be undertaken should consider the following aspects 1. Consumer demand 2. The product lifecycle 3. Potential substitutes Customer demand.Customer demand is a crucial factor which is impelled by tastes, income and availability of others similar products at a different price (mentioned later in the potential substitutes section). For a lot of consumers, value and price are highly related the higher the price, the higher the value. Consequently, Coca-Colas intention to position Bubble Buzz as a unique, innovative and attractive product gives it a certain(p) control over Bubble Buzz price. To be able to implement higher pricing though, the minimization of the non-monetary costs to customers should also be include along with awareness of the product (notably by advertising) and value (benefits) . The product lifecycle.The company should take advantage also to the fact that the newer the product and the earlier in its lifecycle the higher the price can usually be. It ensures a h igh profit margin as the early adopters buy the product and the firm seeks to recoup development costs quickly and it also brings a certain prestige to the product. Potential substitutes Coca-Cola is constrained by the monopolistic market in which it competes.The main characteristic however is product differentiation. Other constraints (See Appendix M) PROMOTION STRATEGY Objectives To initiate strong awareness about the launch of Bubble Buzz throughout Generation Y (10-29 years old) consumers as well as their parents. To win market shares over our top functional drinks competitor, PepsiCo. MessageThe promotional outputs will convey the clear meaning that Bubble Buzz is a healthy drink for sporty and young people who simply hump taking care of their body and life. Concepts Think outside the bubble Be Bold, Be Original, Be Different, Be Yourself. A good spirit in a good body. For the out-of-the-ordinary individuals who like to challenge themselves. Media selection in the beg inning choosing the appropriate medias, it is master(prenominal) to note that Generation Y consumers only give partial precaution to media. However, they can be reached through integrated programs. They are typically using more than one communication media at a time a behaviour that is often called multitasking.This group of consumers doesnt give its full attention to one single message, but rather uses continuous partial attention to scan the media. Marketers can still communicate with Generation Y by using a variety of targeted promotional tools. Another important tactic to reach our target market is through Viral or Buzz marketing, which Coca-Cola will to a great extent use in this campaign (campus, contests). AdvertisingRefer to APPENDIX H for detailed explanations Output Examples video recording MTV, Much Music, VrakTV, YTV Radio MIX96, CKOI 96. 9, 94. 7 FM, Universities Magazines For girls Cosmo, Elle For boys Sports Illustrated (or Kids edition) Internet Banners on select websites (gaming, sports, etc. ) Official promotional website www. BubbleBuzz. ca Outdoors Billboards and prints in select areas including Campuses, transportation systemation (bus, metro, stations) Tourist areas in high seasonal periods Outskirts of key cities in geographical reach Others Not relevant Personal selling Direct contact with retailers, sales kit strategies to be explained later in the text. Public relations Stands or special displays and events in schools, malls, sports events (i. e. 2008 Beijing summertime exceptional Games), sponsorship activities Publicity Conferences, press releases (print and online), buzz marketing through TV coverage Promotional mixing Consumer oriented Contests Win another Bubble Buzz flavour, Uncover a secret label underneath the bottle cap and win sporting goods and electronics by logging on the website, Win a trip for the 2008 Olympics in Beijing. (Arguments It will increase consumer purchases and encourage cons umer involvement with the product). Samples distributed in supermarkets, school/universities. Samples are a way to avoid product resistance since people are not used to muster bubbles in their drinks. Arguments It will encourage new product purchases and it represents low risk for consumers since they get it for free. They have zero point to loose by trying it. Point-of-purchase in supermarkets (to reach the parents of generation Y). Arguments It is also a mean to increase product trial and provides a good product visibility. Others In subsequent years, engage in product placement in TV shows or movies. Trade oriented Allowances and discounts case allowance (Arguments The free goods memory access will be used so it can encourage retailers to buy more of the product to get a certain amount for free). Cooperative advertising to encourage retailers to buy our product and to maintain our high level of advertisement that consumers expect from Coca-Cola. Other considerations Sched uling of the advertising Pulse scheduling (promotional presence year-round, but emphasized and intensified before and during summer). IMC (integrated marketing communication) Target Audience Intermediary personal selling will be more often used. Ultimate consumer Coca-Cola will use more of mass media because the amount of potential buyers is large. PLACE (DISTRIBUTION STRATEGY) Bubble Buzz will be distributed through these channels supermarkets, convenience stores, independent food stores, discount stores, multiple grocers, vending machines, straightaway sales. pic Projected Financial Performance Revenues $ 597,124. 00 Based on sales different channels price COGS 214,964. 64 Based on weighted average ploughshare in past data C. M. 382,159. 36 Revenues COGS Fixed Costs SG&A cost 113,453. 56 one-half of the O/H costs estimated, found on past data Capital expenditures 25,676. 33 4.3% of revenue, based on past data Profits 243,029. 47 CM SG&A Capital expenditures want for success analysis C. M. per bottle = 382,159. 36 / 328,000 = $1. 17 Break-even (113,453. 56+25,676. 33) / 1. 17 = 118,914 (bottles) Market share 118,914 / 1,000,000 = 11. 9% In one year, if Coca-cola can sell 118,914 bottles of Bubble Buzz, or in other words earn 11. 9% of the functional drink market share, it will break even. After this point, every bottle Coca cola sells will generate average $1. 17 towards the profits. The potential profits can up to $1,030,770. 001 based on our target market. judge Costs COGS $597,124 * 36% = $214,964. 64.O/H $597,124* 38% = $226,907. 12 Expected Revenues (total) = $597,124 (refer to Appendix J) pic China is the target country were going to expand our product. Reasons 1. With a total race of 1,313,015,000 in the end of 2005 and 327,714,000 in our target market (age 10 to 25 years old), compared with the total population of Canada304,453 million, there definitely is a great potential worth to work on. 2. absolute expenditure on food an d non-alcoholic beverages is expected to increase from 1,777 billion in 2005 to 2,154 billion in 2010 (though the proportion of consumer expenditure on this part is decreasing from 28. 39% to 25. 75% ) 3.Soft drinks industry is one of the fast growing industries in China, especially fruit/vegetable juice, RTD tea, and Asian speciality drinks and bottled water have shown a sharp increase during 1998 to 2003. 4. Bubble tea was originated in Taiwan. Soon after its introduction in China, it became one of the most popular beverages sold in tea stores on the streets due to the similar taste and similar cultural background. So, it is a good chance for us to enter into this market. 5. Since we are the top sponsor for the upcoming Beijing Olympic in 2008. With more opportunities to expose to the public, it is going to benefit our sale there. Our entry-strategy for entering China is through licensing.Reasons 1. We have already provided licenses for manufacturing our products in China (licensi ng the bottlers and supply them with our syrup required for producing). Therefore, added in one or two more products in our production chain would not be that difficult. 2. It is relatively low risk when compared with direct investment there. It is low cost to export our new products there since we can maintain lower work cost and lower material cost if we produce our products locally, especially in China. Changes to be made 1. terms Price sold in China is going to change to accommodate the local desire. As we set our price sold in Canada $2. 00.Compared to the price sold in the bubble tea store ($ 3. 50), it is about 57. 14%. So, with the information we gathered from the tea store in China2, the price sold there would be 57. 14% of what sold in the tea store$12 Yuen in China currency. Then, it would be around $7 Yuen, about CAD$13. 2. Naming the product In order to be recognized and accredited more easily for the local market, we need not only translate our product name but also make sure theres not hidden unintended meaning that would price our product. 3. Develop other flavours that would attract the local market Since milk based bubble tea sell better in China, we will add in this product line.Also, we will avoid using too many artificial colors as they are not appreciated as much as in Canada. Moreover, people in China are becoming more and more health concerned, especially the amount of sugar and additives added in the drinks. We will make some changes in the ingredients used to appeal the local market, i. e. less sugary drinks. 4. Promotion In contrast to the radio ads in Canada, we will use more TV and Web advertisement there due to the highly exposed environment in China. Also, we will put more emphasis on the ads on the public transportation such as tubing/subway system and bus service due to the more frequent use of the public transport service there.Also, since the outdoor display screen is quite popular in big cities, we will also take advant age of it. pic pic APPENDIX A (ref. 2) pic APPENDIX B (ref. 4) pic APPENDIX C (ref. 1 & 8) STRENGHTS Brand strength (see Appendix F for brand rankings) The Coca-Cola Company is the largest manufacturer, distributor and marketer of nonalcoholic beverage concentrates and syrups in the world. The Coca-Cola brand is unarguably one of the most recognizable brands in the 200 countries where it sells its products. The strong brand name is one of the basis for the companys competitive advantage on several of its core markets. Effective strides in new markets.Coca-Cola has partnered with several companies (such as the joint venture with Nestle) in order to increase the ability to react to demands and changes in the markets of iced tea, coffee and juices. The developing markets are more complex than the carbonated soft drinks. Results of operations In 2004, net-operating revenues totaled approximately $21. 9 billion, an 8% increase from 2002. Gross profit totaled $14. 3 billion in 2004. The c ompany generated $5,968 million from its operating activities and re-invests heavily into its business. The ability to generate significant notes flows is one of the its key strengths (ref. 16). Strong existing distribution channels Coca-Cola has operations worldwide and is well established in its distribution channels (such as store retailers or vending machines).Therefore, a new product launch can typically rely on the existing distribution system in order to reach the majority of its target market while requiring no major supply / delivery developments. WEAKNESSES Relying upon line extensions Coca-Cola is relying on brand extensions increase sales in specific lines, particularly its long-time carbonated soft drink products (i. e. the introduction of Vanilla Coke helped maintain sales for the core Cola beverages). However, there is a strong risk of cannibalizing existing sales in the long term (for example, Bubble Tea might admonish on sales for iced tea). Reliant upon particula r carbonated drinks The long-time presence of Coca-Colas Coke beverage has established this particular line as a flagship product.While the core Coke products bring a upstanding base of sales and loyalty to the company, consumers expectations also become more and more anchored and single-lined, taking away exemption in the areas of line diversification and product modifications (taste, packaging, price). Brand dilution The tremendous amount of existing brands and new product being introduced by the company could diminish the value and differentiating strength of each product that is being manufactured. Entrance into difficult non-core categories The Coca-Cola Company is a truly global multinational business giant. While some categories of products are distributed in many areas of the globe (Coke, Powerade, etc. ), geographical needs already require that these global brands are heavily adapted to their target region.Furthermore, many smaller and diversified product lines are more or less popular in one particular region over another. Therefore, the process of diversifying the production and marketing each product involves costly investments. These capital requirements typically increase as the product becomes heavily center (for example, since the Coca-Cola brand is highly recognizable worldwide, marketing a bottle of Coke in Japan would be less difficult than marketing a bottle of Qoo in that same country Qoo being a lesser-known non-carbonated drink which was one of Coca-Colas newest brand introduction in 1999). Saturation of carbonated soft drink segmentDue to the countless number of brands available on the market, it becomes increasingly difficult in the soft drinks segment to innovate and create new products that genuinely stand out from their competition. And as we have seen, an analysis of the industry has shown that growth in the soft drinks market becomes difficult and challenging when the conditions and consumer trends cause a market demand that st ays stagnant. OPPORTUNITIES New product introductions The functional drinks market is one that particularly allows more innovation opportunities and gives greater freedom for creativity in the design, production, manufacturing, distribution, promotion and retailing choices and processes. Brand is attractive to global partners.Because of the companys size (including value, brand name and operating revenues) and wide portfolio base, Coca-Cola enjoys a strong purchasing power over its suppliers, and also attracts large partnerships with various levels of consumer reach (e. g. Burger King, movie studio promotions, sponsorship agreements, etc. ). Existing brand awareness also provides an international playing field for powerful marketing strategies. THREATS Strong competition Coca-Cola is competing in a global market that is characterized by an oligopoly between several (but few in numbers) competitors. The fight for market shares and sales in crowded markets becomes a complex one. Poten tial health issues.The current trend of consumer and consumers groups awareness towards goods and services is both beneficial and threatening for companies in the food and beverages industry. Over the last few years, concerns over health issues have risen in the media through an expanded and ever-growing network of knowledge outputs (journals, TV channels, net and so on). The move of the younger generation towards a healthier lifestyle call for careful training and decision-making in new product developments. Large companies can also easily become the target of consumers apprehension.