Coca-Cola is considered one of the most popular brands in the soft-drink industry. It is an American company that manages to spread its product across more than 200 countries. Due to the years dedicated to the industry and the successful marketing strategy, Coca-Cola has been holding the position of the top brand in the soft-drink market. However, despite the size advantage of Coca-Cola over any other brand, its future profits might alter with the changes in its customer’s mindset.
J. S. Pemberton invented the first Coca-Cola drink in the late 19th century. It has been dominating the market for over 130 years, now including around 200 brands to its name (Coca-Cola). Coca-Cola’s slogan “sharing” and “bringing people together” is so effective as to make “Coca-Cola” one of the three most common words in most languages. The company’s logo has not been changed significantly and can be argued to be the easiest logo to recognize in the world. Since the never-changing name and style have been promoting the brand for generations, the old commercials are still viable, reinforcing the concept of a classical and immovable position in the soft-drink industry. Through its marketing all over the globe, Coca-Cola has become the default soft drink in people’s minds, making it easy for people to choose Coca-Cola over other brands.
Coca-Cola’s presence densely fills the market by being sold in almost every bar, restaurant, grocery store, sporting event, and movie theater. Its competitors vary across the world; there are many smaller beverage brands. Pepsi is considered the biggest rival of Coca-Cola in the soft-drink industry. Due to the increasing health awareness in recent years, the demand for soft drinks started declining. More and more people tend to choose healthier options with much less sugar. With these changes in the market’s demands, both companies attempted to widen the range and variety of their products. Pepsi and Coca-Cola launched sugar-free, diet versions of their most popular drinks, as well as tea and coffee. However, Pepsi has been significantly more successful in this campaign. Pepsi’s Lipton tea has far more sales and recognition than Coca-Cola’s Honest Tea. As such, Pepsi has the potential to take over the beverage market if the demand for soft drinks continues to weaken.
With Coca-Cola’s futile attempts to be considered relevant in a healthier beverage market, such as tea, the brand tries to play a part in solving other concerns of its customers. The company claims to support major social and environmental problems arising worldwide. According to Coca-Cola’s website, they aim for sustainability and a better-shared future (Coca-Cola). Besides energy conservation, recycling, and minimization of water consumption, they promote the agenda of diversity, equity, and inclusion (Coca-Cola). The trend of supporting these positive changes is not an exclusive tactic of the Coca-Cola brand and has been used, if not overused, by many other companies. As such, it might not be enough to keep the brand afloat and secure business prosperity in the future.
Today, Coca-Cola stays the largest and most popular soft-drink brand in the world. Nevertheless, with their customer’s growing concerns for their health, Coca-Cola’s profits and recognition might weaken in favor of its main rival, Pepsi. They have been able to secure a place in the market by appropriating and developing a healthier replacement, Lipton tea. At the same time, Coca-Cola is mainly relying on worn-off tactics of portraying an eco-friendly and diverse company.
Coca-Cola. The Coca-Cola Company, www.coca-colacompany.com.