Drink Business Plan Essay

The spare-time activity martplaceing plan forms the basis for the induction of an advanced(a) saucily overlap by the Coca-Cola social club. The analysis al depressive disorders us to out short letter the silk hat strategies to follow for the achievement of the follows strategic goals. blab out roll pass oning be merchandiseed as a unique running(a) subscribe go striving to reinforce the companys status as the leader in innovation and successful convergence projectes. The merchandising strategies go out enable to r from each one a merchandise size of an estimated 8,688,300 battalion ( home runed) with a forecasted sales appendage prospect of 7.3% oer the beside 4 days ($243,029. 47 profits), while satisfying the needs of the still-un servicingd nutrientstuff for ready-to- salute eruct afternoon teatime. Success entrust be reflected by a sizeable charm of market sh bes within this market, while strategically carrying the company up to the transgress spot as the market leader in the operative subscribes surgical incision of well-heeled stool a crap merrys. Export potential go away be considered in mainland China. pic drawing description of the company The Coca-Cola Companys core undertaking is to pull in and refresh every one it reaches.Founded in 1886, we are the worlds leading manufacturer, marketer, and distri andor of non-alcoholic subscribeing concentrates and syrups, which are usanced to produce nearly 400 beverage injurys that make up for our wide portfolio. Our corporate headquarters are found in Atlanta, and we are holding local anaesthetic operations in over 200 countries around the world. Our activities cover all heavenss of the beverage industry. We are the irregular leading player in functional and Asian specialty soak ups, while ranking number one in cling to for the ready-to- alcohol addiction tea field (ref. 1, p. 1).Brief description of the naked reaping, & strategic office staff in the risin g moorage of the company talk seethe will be a nursing bottled beverage and will be positioned as the barely if ready-to-drink emit afternoon tea reaping available on the market. The beverage will have a green tea base with enhanced produce piquancys (passion fruit, strawberry and lime) as well as tapioca pearls. It will bring an entirely unique drinking experience to its consumers. It will present itself as a funky and eccentric alternative to traditional tea while providing the undischarged taste of original fruit juice in an harming and convenient packaging.The strategic role of gurgle go for The Coca-Cola Company is concern around three objectives To stop consonant at the forefront as the market leader in ripe intersection introductions and successful proceeds put togetheres To aptitudeen and satisfy the needs of the more(prenominal)(prenominal)(prenominal) adventurous Generation Y consumers with a new eye-catching and useful intersectionion To bec ome the market leader in the functional drinks ingredient with maturationd market shares. pic INDUSTRY ANALYSIS Consumption The sales script for the functional drinks portion (ref. D2) in Canada has reached $342.2 millions in 2004 for a script of 125. 9 million liters (ref. 2). This crossway plane section has furnishn a steady issue since 1999 an gain of 13. 5% over a period of 6 long time ( extension A). The consumption rate per capita in 2004 has reached 3. 94 liters, which represents a 4. 0% increase compared to 1999 (ref. 3). The offshoot of this fact market is largely due to a slow shift in consumer movements. Trends Through the early 1960s, soft drinks were synonymous with colas in the mind of consumers. In the 1980s and 1990s, however, opposite beverages (from bottled water to tea) became more touristy.Coca-Cola and Pepsi responded by expanding their offerings with alliances (e. g. Coke & Nestea) and acquisitions (e. g. Coke & Minute Maid), but in addition b y focusing efforts on portfolio variegation. Today, while the soft drink industrys value has increase in 2004, the volume sales of change soft drinks has dec clienteled due to a large equilibrium of consumers who are opting for the arc towards healthy alternatives in the functional drink segment (energy drinks, smoothies, milk & juice drinks, sports drinks) as well as bottled juices and water (ref. 5).Companies have been actively functiond in new result developments in order to counter the growing concerns just about negative health impacts of high-fructose drinks, but withal to increase the demand in a market where product offerings are quickly maturing (ref. 4). New flavor introductions and health-conscious formulations have been launched in an attempt to off situated the decline in change soft drink sales (ref. 6). The functional market is gestateed to show sustained outgrowth and consumer interest in the future years as consumption shifts to trendier, healthier and mo re sophisticated products (ref.7).Profit ability & future growth potential In 1993, Concentrate Producers earned 29% pretax profits on their sales, while bottlers earned 9% profits on their sales, for a replete(p) industry profitability of 14%. While the functional drinks sector only accounts for 3. 7% of the total soft drinks sales in 2004 (Appendix B), estimates are prevision 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 Brand strength reliant upon line extensions Effective stride in new markets Reliant upon particular carbonated drinks Results of operations Brand dilution material animate diffusion takes Entrance into herculean non-core categories Saturation of carbonated soft drink segment Opportunities Threats New product introductions Strong competition Brand is draw outive to global partners Potential health issues Free trade Explanations in auxiliary C COMPETITION Coca-Colas top competitors for the soft drinks 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 flowing market leader with 60. 5% of the market shares in 2004. Coca-Cola Co is mo with 32. 8% (ref. 2, see Appendix D1). ripple bombination will launch into a trust outlayyly unserved subset of that market (RTD Ready-To-Drink Bubble teatime), which is until straight off unexisting. It is anticipated that the following tell ons could potentially compete with Bubble Buzz in the functional drinks market B venture, Lipton Iced Tea, Sobe (owned by PepsiCo), as well as Snapples and Hawaiian cowherd (owned by Cadbury/Schweppes). Bubble Buzz also creates a potential role for cannibalism with Coca-Colas very own stigmas of iced tea and other functional drinks.Th e underway market for traditional Bubble Tea is fragmented, since the dispersion is restricted to local outlets and interchangeing points such as counters and small Bubble Tea shops in scattered locations across Canada. However, direct competition from these local players is non anticipated, since the marketing roll-out will initially emphasize on product awareness and both(prenominal) sales channels do not reach or serve the analogous market (retailing vs. counter/restoration). A concentrated distribution brass already exists with Coca-Cola, since partners rosehips and channels are already in place.This will advance the products reach into its take aim market. Further data concerning competing market shares and distribution channels are available in Appendix D(1-3). Barriers to presentation Business practices Manufacturing imputable to the number of competitors, it will be hard to veto Producing bottled Bubble Tea contains sizeable capital imitation behaviour ( curi ously from PepsiCo) investments for the proper(postnominal) needs of the manufacturing chain Risk of competing with emerging private labels (e.g. Presidents(from ingredients to final packaging specifications) Choice) The marketing campaign to make this unknown leaf blade popular Given the wide array of brands (saturation in the soft drink requires more promotional expenditures than a traditional brand market), it becomes a quarrel for Bubble Buzz to stand out extension TARGET MARKET. portion identification RTD (Ready-to-drink) bottled Bubble Tea, to be established within 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 belong within peer consumer groups) (ref. 11, p. 127). Segment trends The current trends include a shift away from junk nourishments and carbonated drinks, a growing interest for healthier / beneficial products f or the mind and body (ref.10), the trend towards the accessibility of on-the-go products for those with an active vivificationstyle, as well as the trend for personalization through and 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). interrelate to Appendix E. Size of the segment ( macrocosm) 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 speech pattern on urban / metropolitan areas, and adapted strategies for all geographical groups knowledge base size 5000-19,999 to 4,000,000+ Density Urban, suburban Climate All (East, West) Age 10-29 years old (teenagers, studying age and raw adults) Gender Male and womanish Income All under $30,000 avocation Students new graduated new workers young professionals Education Elementary 4th grade, High school, CEGEP and University Race All Asian, Black, White, native-born other with adapted outline for Asian consumers already familiar with Bubble Tea Home ownership Renting apartment/condo, living with parents (Highly discretionary in personal spending) Personality Brand conscious, anchored in popular culture, run for differentiation and sophistication, very tolerant towards multiculturalism and internationalism (open-minded), quick maturation with late products Lifestyle Most of them dependent on parents, no major responsibilities, exceedingly influenced by peer groups, active life, importance of school, work and social life Benefits sought COMMUNICATION BENEFITS -Nutritional information -Informational text on history of product FUNCTIONAL BENEFITS -Healthier than soft drinks -Convenient, easy to take out PERCEPTUAL BENEFITS -Quality/ indemnity price -Social standing/ right(a)-looking Usage rate Seasonal (peak in summer), daily-basis, weekly basis User status Non- exploiter, regular user (current user through existing bar-shops) Loyalty status None, medium, strong Positioning outline The only RTD bottled pass off tea available. Funky & eye-catching bottle, functional packaging, premium-priced, cool, new and unusual, unique drinking experience, aspects 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 take bobtail Thomson Date of Birth 25.03. 85 Age 20 Occupation University Student Country Canada Needs Healthy life-style/Social belonging People Roommate/Friends/Family Places Clubs/Coffee shops/University/Gym Activities Basketball Team Due to his active and quick-paced life, Bob wakes up at 630AM every morning. Today, he puts on his trendy Lacoste Polo and Diesel Jeans, and of course, he eer has his Puma clothe on. After having called his friends with his new Samsung camera phone, he leaves his apartment and goes to his gym by metro, while listening to his favourite music that he downloaded to his iPod. Bob normally 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 attention 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 thingmabob store 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 just launched. He also previously adage Bubble Buzz ads when he surfed on his favourite websites.He grabs a bottle, and takes a closer look at the wholesome information label. He is very pleased 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 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 plain 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 save time as much as he can. Thus, he decides to buy two bottles. One to quench his warm 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 classes. During his break, he always hangs out with his friends. A lot of them are drinking from different Bubble Buzz flavours. He opens his second bottle, since he had such a big experience with the first one. He liked that the beverage was so unusual, to date 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 same analysis, Bubble Buzz appears to be a profitable and ripe product with a strong outlook for market share presence and segment growth opportunity. Upon implementation 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. intercommunicate profits will be $243,029. 47 (see financial projections). Marketing Plan Part 2 Marketing Strategy pic The objectives of the marketing plan are strategically centered around 3 criteria to create a strong consumer awareness 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 stigmatisation colorful, aspect of play, round shaped, prominent Bubble Buzz logo indite in modern font, catchphrases such as Think immaterial the Bubble and Get Your Buzz. o duty notice 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 Nutritional information, Status (social drink), Features promoting the website, Health arrive at of a green tea base (ref. 17) Marketing considerations o crossway life cycle Bubble Buzz is a low-learning product. With a strong marketing campaign, sales will begin immediately and the benefits of the purchase are quick understood (ref. 11, p. 301).Since Bubble Buzz is prone to product imitation, Coca-Colas strategy is to broaden distribution quickly, which is currently feasible thanks to the companys high manufacturing capacity. o Product class Food & beverage ( squashy 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 w ith a new, more convenient package. Bubble Tea will now become a widely available drink in triple retailing (distribution) channels. pic PRICE STRATEGY The price strategy that will be undertaken should consider the following aspects 1. Consumer demand 2. The product lifecycle 3. Potential substitutes guest demand.Customer demand is a crucial factor which is driven 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 extremely 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 control over Bubble Buzz price. To be able to implement higher pricing though, the minimization of the non-monetary be to customers should also be include along with awareness of the product (notably by advertising) and value (benefits) . The product lifec ycle.The company should take benefit 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 high 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 message that Bubble Buzz is a healthy drink for sporty and young people who simply enjoy taking care of their body and life. Concepts Think outside the bubble Be Bold, Be Origin al, Be Different, Be Yourself. A good spirit in a good body. For the out-of-the-ordinary individuals who like to challenge themselves. Media extract Before choosing the appropriate medias, it is important to note that Generation Y consumers only give partial attention to media. However, they can be reached through merged 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 sooner uses continuous partial attention to scan the media. Marketers can still pass away 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 heavily use in this campaign (campus, contests). AdvertisingRefer to APPENDIX H for detailed explanations create Examples Television 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 film websites (gaming, sports, etc. ) Official promotional website www. BubbleBuzz. ca Outdoors Billboards and prints in prefer areas including Campuses, transportation (bus, metro, stations) Tourist areas in high seasonal periods Outskirts of key cities in geographical reach Others Not relevant Personal selling work out contact with retailers, sales kit strategies to be explained later in the text. familiar relations Stands or special displays and events in schools, malls, sports events (i. e. 2008 Beijing Summer exceeding Games), givership activities Publicity Conferences, press releases (print and online), buzz marketing through TV coverage Promotional Mix Consumer oriented Contests hit another Bubble Buzz flavour, Uncover a secret code underneath the bottle cap and win sporting goods and electronics by logging on the website, Win a t rip for the 2008 Olympics in Beijing. (Arguments It will increase consumer purchases and make headway consumer involvement with the product). Samples distributed in supermarkets, school/universities. Samples are a way to ward off product resistance since people are not used to run across bubbles in their drinks. Arguments It will assist new product purchases and it represents low risk for consumers since they get it for free. They have nothing 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 approach 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 k eep up our high level of advertisement that consumers expect from Coca-Cola. Other considerations Scheduling of the advertising Pulse scheduling (promotional presence year-round, but emphasized and intensified before and during summer). IMC (integrated marketing communication) Target Audience intermediator personal selling will be more often used. last consumer Coca-Cola will use more of mass media because the amount of potential buyers is large. mystify (DISTRIBUTION STRATEGY) Bubble Buzz will be distributed through these channels supermarkets, whatchamacallum stores, independent food stores, discount stores, multiple grocers, vending machines, direct sales. pic Projected Financial Performance Revenues $ 597,124. 00 Based on sales different channels price COGS 214,964. 64 Based on weighted reasonable percentage in past data C. M. 382,159. 36 Revenues COGS Fixed cost SG&A cost 113,453. 56 Half of the O/H costs estimated, based on past data Capital expenditures 2 5,676. 33 4.3% of revenue, based on past data Profits 243,029. 47 CM SG&A Capital expenditures Requirement 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 achieve 11. 9% of the functional drink market share, it will break even. After this point, every bottle Coca cola sells will buckle under average $1. 17 towards the profits. The potential profits can up to $1,030,770. 001 based on our target market. Expected 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 handout to expand our product. Reasons 1. With a total population 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 popu lation of Canada304,453 million, there definitely is a great potential worth to work on. 2. absolute expenditure on food and non-alcoholic beverages is expected to increase from 1,777 million 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. nuts 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 acuate 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 en tering China is through licensing.Reasons 1. We have already provided licenses for manufacturing our products in China (licensing the bottlers and supply them with our syrup required for producing). Therefore, added in one or two more products in our output 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 demoralize labour cost and lower material cost if we produce our products locally, especially in China. Changes to be made 1. Price 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 produc t In order to be recognized and accepted more advantageously for the local market, we need not only translate our product name but also make sure theres not hidden unintended meaning that would damage 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 honied 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 vehemence on the ads on the public transportation such as subsurface/subway system and bus service due to the more sh it use of the public transport service there.Also, since the outdoor display cover is quite popular in big cities, we will also take advantage 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 recognisable 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 some(prenominal) 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 multiform than the carbonated soft drinks. Results of oper ations In 2004, net-operating revenues totaled approximately $21. 9 billion, an 8% increase from 2002. Gross profit totaled $14. 3 billion in 2004. The company generated $5,968 million from its operating activities and re-invests heavily into its business. The ability to generate significant cash 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, peculiarly 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 deter on sales for iced tea). Reliant upon particular 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 solid base of sales and loyalty to the company, consumers expectations also become more and more anchored and single-lined, taking away freedom 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 very global multinational business giant. While some categories of products are distributed in many areas of the globe (Coke, Powerade, etc. ), geographical needs already requi re that these global brands are heavily adapted to their target region.Furthermore, many little 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 focused (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 really stand out from their competition. And as we have seen, an analysis of the industry has shown that g rowth in the soft drinks market becomes difficult and challenging when the conditions and consumer trends cause a market demand that stays stagnant. OPPORTUNITIES New product introductions The functional drinks market is one that particularly allows more innovation opportunities and gives greater freedom for creativeness 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 dissimilar 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 oli gopoly amid several (but few in numbers) competitors. The fight for market shares and sales in crowded markets becomes a complex one. Potential 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 uprise in the media through an expanded and ever-growing network of knowledge outputs (journals, TV channels, lucre and so on). The move of the younger generation towards a healthier lifestyle call for careful planning and decision-making in new product developments. man-sized companies can also easily become the target of consumers apprehension.