Informational Report on Coca Cola

Essay add: 30-09-2015, 18:43   /   Views: 223
Informational Report on Coca Cola

The Coca-Cola Company is one of the reigning soft drink manufacturers in the world. Some analysts contend that Coca-Cola is the most widely used and well-known brand name product in the world. The purpose of this report is to provide Coca-Cola stockholders with an understanding of the product development in the company. Since Coca-Cola began its operations in 1902, it has introduced several distinct products and marketing campaigns that have led to its financial stability and market standing. Some of the facts presented are statements of Coca-Cola head officials; therefore, the report contains a degree of bias.

The Coca-Cola Company controls over 45 percent of the global beverage industry. Coca-Cola has been able to maintain this high market share due to innovation in the product development aspect of the company. The income received from product sales has been made Coca-Cola a financially stable company within the industry. Coca-Cola recorded increases in all financial areas in 1994; namely, earnings per share, closing market price of stock, net operating revenue, and income available to stockholders. Coca-Cola will focus on the goal of increasing global market share throughout the 1990s.

Coca-Cola producing consists of a soft drink market and a food market. The food market is involved primarily with the producing of fruit juices. The soft drink market is involved with the distribution of soft drink concentrates and syrups. Over the past few years, Coca-Cola has introduced a variety of highly successful products into its soft drink and food markets. The revenue received from the sale of these products has been a source of financial stability for the Coca-Cola company.

The Coca-Cola Company focuses the majority of its investment opportunities on the soft drink market because the soft drink market offers a low capital requirement and a high rate of return. Coca-Cola has invested in the development of Diet Coke, Decaffeinated Diet Coke, and Cherry Coke. In 1993, the demand for soft drinks such as these increased to where they account for 27 percent of the soft drink market. By 1996, the diet drink segment is forecast to exceed 30 percent of the soft drink industry. Forecasts such as these reflect the concerns consumers have with health and diet. Coca-Cola recognizes these concerns and has altered its soft drink producing to accommodate this change in attitude.

The second major sales generator for the Coca-Cola Company is the producing of fruit juices. Coca-Cola manufactures and distributes Minute Maid products. This line of producing has been profitable for Coca-Cola. Chilled orange juice volume increased by 29 percent in 1994. Sales of fruit juices are increasing due to the high consumer demand for fruit juice. In the future, Coca-Cola expects to capitalize on this significant demand through increased product sales.

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