What Does It Mean to Be Well Educated Essay Example | Topics and Well Written Essays - 2750 words

What Does It Mean to Be Well Educated - Essay Example According to the report  education happens to be the key of professionalism in the modern society. The modern society is very dependent on education because it depends on ideologies and well organized strategies for its growth and development. This explains why people in the modern society do effort to make sure they are well educated. To be well educated is a very critical topic, the fact is that individuals are only well educated in a certain field but not in all fields. This is where professionalism and division of labor comes in; division of labor is a situation where individuals get involved in doing what they can do at their best. It is not funny to meet individuals who have specialized in medicine and cannot discuss a concept from the field of literature or individuals from the field of literature who cannot solve a simple mathematics problem. From this study it is clear that  the truth is that different education systems in the world have created monsters. This is a situation where individuals fail to perform in their field of specialization in education. There are several myths which have been developed in the field of education and they have been destructive. One myth is where education is seen as the purpose of giving someone the means of upward mobility and success. This is very wrong because it makes people even to cheat in exams because promotion in job is based on class results ending up producing literally unfit individuals who are only interested in high pay and promotion in job.

Barilla Spa A Essay Example for Free

Barilla Spa A Essay Barilla SpA, an Italian pasta manufacturer is experiencing problems in manufacturing and distribution systems caused by fluctuations in demand. To eliminate these difficulties Giorgio Maggiali, the Chief of Barilla’s Logistics Department, has been trying to implement the Just-In-Time-Distribution, further referred as JITD, system proposed by his predecessor Brando Vitali. JITD can be called a remake of popular â€Å"Just-In-Time† manufacturing concept. Although Maggiali has been trying to convince his consumers that the JITD would definitely work, he has not made much progress. The program was met with significant resistance by the distributors and Barilla’s own Sales and Marketing organizations. Now Maggiali is looking for possible solutions of the problem. In the following analysis we will provide recommendations, which will help Barilla to successfully implement the JITD system and thus decrease its costs, increase efficiencies and its profits. Introduction Barilla SpA was founded in 1975 by Pietro Barilla. From a small shop in Palma, Italy, it became a large, vertically integrated corporation with mills, plants and factories located throughout the Italy. Barilla’s success highly depended on its’ quality of product and innovative marketing programs, which created strong brand name. The company was sold to Grace Inc. in 1971, because the building of a huge plant in Perdignano drove the owners â€Å"deeply into debt†. Grace brought additional capital investment and professional manag Barilla SpA Case Study The biggest challenge facing Giorgio Maggiali and Barilla SpA is the mounting burden that fluctuations of demand have placed on Barillas’ manufacturing and distribution methods, and whether or not to implement a Just-in-Time Distribution (JITD) system for their distributers. The implementation of Just in Time Distribution would allow for a more efficient process for getting the products to the end user when and where they are needed. Solution #1: To implement Just in Time Distribution. For this to succeed, Mr. Maggiali as the director of logistics for Barilla will need to be personally and intimately involved and partner with Mr. DiMaria who is in charge of sales for Barilla and to obtain the support from their own sales reps. Barilla will need to pull the sales reps in for training on how implementing JITD would benefit their accounts, Barilla SpA and themselves. The sales reps will need to â€Å"sell† their customers on this idea and to shift the mentality of their distributers away from â€Å"this is the way we have always done it† and for them to be amiable to exploring new and more efficient ways to replenish their stock. Pro: Barilla would more easily be able to control their manufacturing process and greatly reduce production overruns and stock outs thus enable to pass cost savings onto their distributors. Con: Resistance from the distributors to change may continue. Their distributer may ask â€Å"why is that a concern of mine? † I just want the product I want when I want it. Con: Will incur costs to purchase or develop software needed to gather and correlate sales information. Pro: The initial cost for software development will be offset by savings in lost sales opportunity, reductions in buybacks and an overall increase in productivity and sales. Barilla already has much of the needed data pertaining to sales to the distributers. Con: Customers may be resistant to providing their sales and customer base data to Barilla. Pro: Barilla Sp Company Overview Barilla Spa is a large vertically integrated family owned largest pasta producer in Italy. Its operations are divided into seven divisions: three Pasta divisions, the bakery products division, the Fresh Bread division, the Catering division and the International division. Barilla products were sold through three types of retail outlet: small independent grocers, supermarket chains, and independent supermarkets. Products were sold through CDCs and through intermediate distribution channels. Fresh products were sold through a network of brokers. Inventory levels in the supply were high with larger levels of stock held for dry pasta since its shelf life was high as compared to wet pasta. Barilla enjoyed a strong brand image in Italy. Its marketing and sales strategy was based upon a combination of advertising and promotions. Also distributors can buy as much product as they want to for meeting their demand at the discount offered by the company. Barilla produced two major kinds of products:- a) Dry Products- These include dry pasta, cookies, biscuits, flour, bread sticks and dry toasts. These make 75% of the Barilla sales. They had long shelf lives of 18-24 months or medium shelf lives of 10-12 weeks depending on the product type. b) Fresh products- These include fresh pasta products with 21 day shelf life and bread with 1 day shelf life. Issues Faced The company was suffering from the following problems: 1. Variability in demand- This lead to operational inefficiencies on the part of the company. 2. Inventory Management- The company produced over 800 SKUs, most of which had long or medium shelf lives, thus could be easily stored up at the company warehouse or with the distributors. During periods of low demand, high inventory holding costs had to be incurred. 3. Stock outs- This was one of the major problems which Barilla faced. Many of the distributors were not able to cater to the demands of the retailers during times of high demand. This time B Thoughts on Supply Chain Management The JITD program was supposed to tackle the uneven distribution workload Barilla encountered with its distributors. In order to achieve this, better demand forecast was needed with the support of the distributors. Benefits of the program are below. Barilla’s own logistics organization would be allowed to specify the appropriate delivery quantities that would more effectively meet the end consumer’s needs It would also allow Barilla to distribute the workload on manufacturing and logistics systems more evenly Drawbacks of the program are below. Higher investment costs such as training Since JITD is a new concept, and has not tried out before, there is a risk that serious errors may occur during the implementation process, and this would ruin all previous efforts The value chain consists of five major components, and it can be represented as SIPOC, where S is Supplier, I Input, P Production, O Output and C Customer. Between C and P, there are also the distributors, wholesalers and retailers. It is almost impossible to develop an accurate sales forecast because the market is constantly changing. Factors affecting the market situation are also changing. Without an accurate sales forecast, it is difficult to achieve JIT. This is basically a paradox. No enterprise is able to develop an accurate sales forecast, and without an accurate sales forecast, it is not possible to achieve JIT. Is there really no way out? How about Dell? Dell basically builds computers on a BTO (build-to-order) basis, and this makes JIT possible. But how many enterprises can really deliver products on a BTO basis? What are the requirements to produce on a BTO basis? Barilla definitely was not one of them. Communication here is the critical success factor. The supplier, in this case, Barilla, has to collect information from the distributor, and the distributor has to be able to collect information from the wholesaler, and then the wholesaler has to d

Assistive technology for the blind and visually impaired Essay examples

For this research project the topic I have chosen to cover is, â€Å"The impacts of assistive technology for the blind and visually impaired.† I will discuss the benefits and drawbacks to using advanced technology to promote development. I will also look at how assistive technology is being implemented and what effects it has on the visually impaired. There are approximately 10 to 11 million blind and visually impaired people in North America, and their visual abilities vary almost as much as their ethnic, racial, and personal characteristics do. The term "visual impairment" covers a wide range and variety of vision, from blindness and lack of usable sight; to low vision, which cannot be corrected to normal vision with standard eyeglasses or contact lenses; to moderate visual impairment and an inability to read the fine print in a daily newspaper. People who are visually impaired, like everyone else, pursue a great range of interests and careers and participate in the full range of daily activities. They may need to receive training in various adaptive techniques in order to do so, and educational and other services and products are designed and available for this purpose. Federal and state estimates used for planning educational services do not adequately account for the number of children in the United States who are blind or visually impaired. In some cases, only students who are legally blind are reported, ignoring those who have difficulty seeing but do not qualify as "legally" blind. In other instances, children who are visually impaired and have other disabilities such as mental retardation are not counted as visually impaired because they are reported in other federally defined categories, such as multiple disabilities. Tragically, because many 3 professionals lack the specialized skills necessary to recognize and address vision loss, there are also children with visual and multiple impairments whose vision loss remains undiagnosed throughout their school experience. The inadequate count of visually impaired children means that our nation lacks critical information about the need for specialized services for these children, and cannot correctly allocate the specialized resources and ... ...sts despite the fact that education experts agree that for some children, special schools are the best placement option, and that the Individuals with Disabilities Education Act passed by the U.S. Congress makes access to all educational placement options, including special schools, every child's right. As a result of my research I have found that assistive technology is very helpful to blind or visually impaired people when used appropriately. Technology has set new standards and goals for the visually disabled and blind that were never within reach without these new break throughs. The main issues that still need to be dealt with is making sure the new technology is taught correctly to the people who need to use it, and that access to the latest technology is easily attainable. References Van Huijgevoort, Toos. (2002) Coping with a visual impairment through self- investigation. Journal of Visual Impairment & Blindness, 96, Abner, G. H. & Lahm, E. A. (2002) Implementation of assistive technology with students who are visually impaired: Teachers’ readiness. Journal of visual impairment and blindness, 96, Assistive technology for the blind and visually impaired Essay examples For this research project the topic I have chosen to cover is, â€Å"The impacts of assistive technology for the blind and visually impaired.† I will discuss the benefits and drawbacks to using advanced technology to promote development. I will also look at how assistive technology is being implemented and what effects it has on the visually impaired. There are approximately 10 to 11 million blind and visually impaired people in North America, and their visual abilities vary almost as much as their ethnic, racial, and personal characteristics do. The term "visual impairment" covers a wide range and variety of vision, from blindness and lack of usable sight; to low vision, which cannot be corrected to normal vision with standard eyeglasses or contact lenses; to moderate visual impairment and an inability to read the fine print in a daily newspaper. People who are visually impaired, like everyone else, pursue a great range of interests and careers and participate in the full range of daily activities. They may need to receive training in various adaptive techniques in order to do so, and educational and other services and products are designed and available for this purpose. Federal and state estimates used for planning educational services do not adequately account for the number of children in the United States who are blind or visually impaired. In some cases, only students who are legally blind are reported, ignoring those who have difficulty seeing but do not qualify as "legally" blind. In other instances, children who are visually impaired and have other disabilities such as mental retardation are not counted as visually impaired because they are reported in other federally defined categories, such as multiple disabilities. Tragically, because many 3 professionals lack the specialized skills necessary to recognize and address vision loss, there are also children with visual and multiple impairments whose vision loss remains undiagnosed throughout their school experience. The inadequate count of visually impaired children means that our nation lacks critical information about the need for specialized services for these children, and cannot correctly allocate the specialized resources and ... ...sts despite the fact that education experts agree that for some children, special schools are the best placement option, and that the Individuals with Disabilities Education Act passed by the U.S. Congress makes access to all educational placement options, including special schools, every child's right. As a result of my research I have found that assistive technology is very helpful to blind or visually impaired people when used appropriately. Technology has set new standards and goals for the visually disabled and blind that were never within reach without these new break throughs. The main issues that still need to be dealt with is making sure the new technology is taught correctly to the people who need to use it, and that access to the latest technology is easily attainable. References Van Huijgevoort, Toos. (2002) Coping with a visual impairment through self- investigation. Journal of Visual Impairment & Blindness, 96, Abner, G. H. & Lahm, E. A. (2002) Implementation of assistive technology with students who are visually impaired: Teachers’ readiness. Journal of visual impairment and blindness, 96,

Othello †Trust Between Lovers Essay

Our topic is trust between lovers. What is trust? When your friend is spreading some rumor about your lover and your other friend, who would you trust, your lover or your friend? Trust is to believe in someone and give trust to him or her. You put your whole soul and belief to trust them. Trust is like a paper, once it is crumble it will not be perfect again. Trust plays an important role in Othello, because it started as trust and ends with trust. In Othello, the author used handkerchief as a symbol of trust. Every time the owner loses the handkerchief and another lover has the handkerchief, the other couple bonds a strong trust within the circle. Their relationship becomes better and firmer. The trust between Othello and Desdemona collapses when the handkerchief is missing. Meanwhile Emilia and Iago become closer and have a strong trust because of the handkerchief. Othello and Desdemona are the first main couples in the play. They got married at the beginning of the play, which gave rise to the hatred and envy towards Othello. Therefore, their relationship is doomed to be transient. The couple slowly breaks up when their trust slowly collapses. Before their trust slowly collapses, Othello promised Brabantio that he would not harm his daughter. If he does then he will kill himself. â€Å"Look to her, Moor, if thou hast eyes to see. She has deceiv’d her father and may thee. † â€Å"My life upon her faith! † (Act 1, Scene 3, line 289-291). This has proven that Othello trust Desdemona with heart and soul that she would not cheat on him. This scene shows that the couple’s love is starting to collapse because of the handkerchief, and Othello feels suspicious about Desdemona cheating on him. Fetch me the handkerchief. † â€Å"My mind misgives. Come, come; You’ll never meet a more sufficient man† (Act 3, Scene 4, line 85-87). This line also shows that Othello feels anxious because of the lost of the handkerchief that has a magic history involving his parents. The handkerchief proves of lover’s loyalty within each other. Iago and Emilia are the second main couples in the play. Their relationship is not as strong as Othello and Desdemona’s relationship at the beginning. Another big difference is that Iago and Emilia bond a stronger trust when Emilia found the handkerchief. â€Å"To have a foolish wife. † â€Å"O, is that all? What will you give me now for that same handkerchief? † â€Å"What handkerchief? † â€Å"A good wench! † Give it me. † (Act 3, Scene 3, line 306-308) (Act 3, Scene 3, line 316) The trust between Emilia and Iago contribute to this tragedy, because Emilia chose to trust Iago and pretended to know nothing about the handkerchief, which leads to betrayal towards Desdemona. However, if Emilia chose the right way and told the truth to help Desdemona when Othello was questioning her, the tragedy might not happen. Near the end of the play Emilia and Iago’s trust broke when she revealed the truth, everything in the play started with trust and ended with trust. She give it Cassio! No, alas, I found it and i did give’t my husband. † â€Å"Filth, thou liest! † (Act 5, Scene 2, line 227-229) It makes us wonder how can the trust between lovers be broken so easily and rebuilding the trust can be so hard. Sometimes to suspect someone can lead to death, and sometimes to trust someone can also lead to death. It becomes too difficult to decide whether to believe in him or her or not. In conclusion, you cannot just trust your friend or your lover because both your friend and your lover are important to you, and losing either one would be painful.

Coca Cola Analysis

1 I. Introduction â€Å"Coca-Cola and Shasta. † These two products are in the same industry and both were invented around the same time. Nonetheless, a very different perception comes to consumers? mind when they hear these two words. In the 21st cent ury, Coca-Cola is considered one of the most valuable brands in the world, whereas Shasta is mostly known in United States, particularly in the West Coast region. Coca-Cola is owned and operat ed by The Coca-Cola Company, and Shasta is currently owned by National Beverage Corp. This report will examine, compare, and analyze both companies in terms of operation, promotion, management, and finance.In addition, SWOT analysis and Porter? s Five Forces will be conducted to evaluate the companies? positions in the industry. The report will also identify several issues that both companies currently face and suggest alternatives and recommendations in order assist Shasta, a subsidiary of National Beverage Corp. , to gain more market shar e. Table 3 exhibits that National Beverage Corp. makes up only about 2. 8% of the soft drink industry in 2010. Company Background Dr. John Pemberton, a pharmacist from Atlanta, invented Coca -Cola in 1886. The world? s largest non-alcoholic beverage company trademarked its name and logo in 1893.After thirty years of establishment, the company went public in 1919. The share price of its initial public offering (IPO) was $40 a share (Datamonitor, 2010). Coca-Cola expanded rapid ly; it is currently available in more than 200 countries and reaches about 99% of the world population (National Geographic Channel, 2011). Consumption rate of trademarked or licensed products amounts to 1. 7 billion servings a day. As of December 31, 2010, the company has 139,600 employees worldwide (The Coca-Cola Company, 2011). Similarly, Shasta was founded in 1889, three years after Coca-Cola. In Northern California, Mt.Shasta, â€Å"a group of businessmen opened a health and vacation resort at the s ite a nd featured naturally carbonated spring water. † The carbonated water received positive feedbacks from clients who stayed at the health and vacation resort . Shortly after, t hese businessmen established Shasta Mineral Springs Company and started selling the product throughout the West Coast region, including California, Oregon, and Washington. In 1928, the company was renamed The Shasta Water Company, and began to diversify its carbonated water line to a segment with more flavors. In 1985, Shasta was acq uired by National Beverage Corp.Despite of the acquisition and product diversification, Shasta is serving the same West Coast market that it was serving decades ago (Shasta Beverage, Inc, 2010). Target Market Coca-Cola views everyone as potential consu mers. Coca-Cola targets all age groups; however, the one with most potential is the age group between 18 to 25 years old , which tends to have busy lifestyles. Furthermore, the company attempts to appeal students and family-ori ented consumers. The socio-economic status of these demographics ranges from lower to upper-lower income level (Grimm, 2000). These are a few characteristics of Coca -Cola? target market. Soft drink Industry 2 Shasta? s main focus is variety. Even though the company sells a variety of cola, the sales of other flavors are better. Statistics show that ethnic groups prefer flavored drinks over cola. Based on this research, Shasta has centered its target market on et hnic groups. Shasta? s demographic targets: low to middle income consumers, less educated individuals, and large families. Psycho -graphically, the company targets individuals who look for value and quality in a product, like Shasta cola, as an alternative to Coca-Cola or Pepsi (C.Anicich, E-mail Interview, April 20, 2011). Table 3: Industry Trends & Comparison Analysis (source: Beverage Digest) Source: Beverage-Digest (Top-10 CSD Results for 2010). II. Operational Analysis ? The Coca-Cola Company Raw Materials Water is the main ingredient used in Coca-Cola? s products. The soft drink is made from diluting water with concentrates and sweeteners. The concentrates used in Coca -Cola? s beverage remains a secret; therefore, the company does not allow filming during manufacturing processes. According to National Geographic (2011), the beverage is made with 90 percent water.Because water? s taste varies at every location, Coca-Cola has to neutralize the water to ensure that its products taste consistently worldwide. The other main ingredient is high fructose corn syrup (HFCS) and since imported sugar is more expensive, Coca-Cola uses HFCS as its principal sweetener. Manufacturing Coca-Cola is the largest player in the non-alcoholic beverage industry. It operates in over 206 countries and has 900 bottling plants and factories worldwide with locations such as Eurasia, Africa, Europe, Latin America, as well as North America (National Geographic, 2011).Due to this, these manufacturers must adhere to strict sta ndards in order to produce sta ndardized CocaCola? s products. Moreover, Coca-Cola manages its manufacturing processes efficiently. For Soft drink Industry 3 example, the new factory in Baton Rouge operates 24 hours a day, five days a week, and can produce up to 4. 5 million beverages in one day. Additionally, in recent efforts to be environmental friendly, the company announces that it will change its electrical equipments and reduce water usage. The decision is projected to save the company approximately one million dollars annually. DistributionsCoca-Cola has the world? s largest distribution system; hence, it is a ble to reach almost every region (Coca-Cola Co. , 2011). The company distributes its beverages to consumers through various retailers, wholesalers, vending machines, and distribution centers. Furthermore, it sells its syrup and concentrates to cafes and restaurants used in fountain drink dispensers. ? National Beverage Corp. (Shasta) Raw Materials National Beverage Cor p. collaborates with many suppliers for raw materials and packages. Moreover, the company consolidates its purchasing function for cost containment purposes (National Beverage Corp. 0K, 2010). This advantage allows the company to compete against major beverage companies. Some of the materials used to produce the beverages are sweeteners, juice concentrates, carbon dioxide, water, glass, p lastic bottles, aluminum cans, paper, cartons, and closures (NBC 10K, 2010). The costs of the materials are very volatile; reasons being are because of gas prices, tariffs, foreign exchange fluctuations, etc. Consequently, the company purchases forward agreements with suppliers to minimize the price increases on certain materials. Manufacturing National Beverage Corp. ets up manufacturing plants strategically. Its twelve manufacturing facilities are located near major U. S. metropolitan cities; thus, enab ling the company to distribute products promptly and efficiently (NBC 10K, 2010). In manufactu ring plants, the company bottles and cans its beverages. National Beverage Corp. believes that ownership of bottling facilities provides a competitive advantage o ver some competitors? dependency on third party bottlers (NBC 10K, 2010). As a result, the company is able build its own competitive advantage and become s more experienced and efficient. Distributions National Beverage Corp. tilizes a hybrid distribution system to deliver products through three primary distribution channels: take-home, convenience and food-service (NBC 10K, 2010). Take-home channel distributes to grocery stores, wholesalers, and warehouse stores such as Costco. Secondly, the convenience channel, which distributes to gas station and convenient stores such as 7-Eleven stores. This channel allows the company to charge higher selling price than the other channels because of lower sales volumes. The last channel is food-service. This channel distributes its products to schools, hotels, airlines, restaurants, a nd other food related places.Soft drink Industry 4 III. Promotional Analysis ? The Coca-Cola Company Word-of-Mouth Consumers are talking about brands and companies every day, and it so happens that a vast number of conversations are about Coca-Cola. According to Keller Fay Group, a research marketing firm, a study of 25,142 consumers shows that Coca-Cola is currently the most talked about brand in America (Wang, 2008). This finding demonstrates and measures the sample of consumers? conversations on a daily basis. In addition, the CEO of Keller Fay Group, Ed Keller, states, â€Å"†¦these brands fall under the realm of „social categories? and have greater frequency of purchase. As a result, consumers are exposed to packaged goods? logos and slogans frequently. The more products consumers purchase daily, the more likely that they are to start conversations about the products within their social circles. The table below exhibits the ten most talked about brands and Coca-Cola is placed first. Top 10 Word-of-Mouth Most Talked About Brands: 1. Coca-Cola 6. Ford 2. AT&T 7. Dell Computers 3. Verizon 8. Sony 4. Pepsi 9. Chevrolet 5. Wal-Mart 10. McDonald's Public Relations Coca-Cola has strong public relations because it is always on the forefront of contributing to the community and society.For instance, Coca-Cola recently announces to the press that it has just established the Coca-Cola Japan Reconstruction Fund, which promises to raise 2. 5 billion yens ($31 million U. S dollars), to assist the reconstruction of Japan over the next three years (â€Å"Coca-Cola raises†, 2011). As a result of this generous act, Coca-Cola will receive great public media presses. Social Media Since the emergence of social media on the Internet, Coca-Cola has increased its presence in the global community. For example, Coca-Cola? s Facebook page has more than 5. 18 million fans and still growing, which makes Coca-Cola? page one of the top fan pages on Facebook (Staff, 2 010). This illustrates the immense community support and brand loyalty the company receives on the Internet. In addition, Coca-Cola also utilizes the Internet as a tool to support the community in charitable acts. Example being, Coca-Cola promises to give one dollar to the Boys and Girls Club every time a Facebook user gives a friend a â€Å"virtual coke;† thus, raising about $126,000 for the organization (Staff, 2010). Overall, Coca-Cola uses the social media for community engagements and also to reach out to more consumers.Global Branding As the first mover in the market, Coca-Cola is currently known as a global brand, not just Soft drink Industry 5 an American brand. For instance, when the company entered the China market in 1928, the first direct translations of Coca-Cola had absurd meanings; such as â€Å"bite the wax tadpole† or â€Å"female horse stuffed with wax. † However, with due diligence and core competency in branding research, Coca-Cola was able t o choose different characters pronounced â€Å"K'o K'ou K'o LE, † which literally means, â€Å"let the mouth rejoice† or â€Å"happiness in the mouth† (Wooten, 2011).This proves that the company takes branding seriously and tackles every global venture strategically by adapting to local cultures. ? National Beverage Corp. (Shasta) Overview In the company? s mission statement, National Beverag e Corp.? s main focus is variety. Its soft drink line has over thirty different flavors with new flavors being tested every day. Its goal is to have consumers identify themselves with particular flavors. As individuals grow older, their likes, tastes, and personalities will change. National Beverage Corp. encourages its consumers to link their transformations to their favorite soft drinks.Its other objective is to promote itself as a friendly soft drink company that everyone can relate to. By using social media platforms such as Facebook, the company is able to reach out to current as well as new consumers. Also, word-ofmouth is known as the greatest influence for consumers ; thus, National Beverage Corp. hopes to satisfy consumers in order to create a word-of-mouth â€Å"boom† effect. Conceivably, this tactic can possibly lure over other consumers who belong to its competitors. The company also follows a consumer-based promotional strategy t hat centralizes on fitting the consumer? image to his or her favorite drink, rather than creating an image for consumers like Coca -Cola. With this, National Beverage Corp.? s promotional strategy can be dissected into parts by engaging the promotional strategy mix: advertisement, public relations, sales promotion, personal selling, and direct mail. Advertising Recently, National Beverage Corp. began showing television and online commercials highlighting its low prices in comparison to larger soft drink co mpanies. These comical commercials exhibit individuals being hit in the heads with a Shasta can; thus , coining the â€Å"Hit in the Head† theme.The end of the advertisement shows a statement, â€Å"Some people wouldn? t know a good deal even if it hits them in the head. † The focal point is to gain a satirical image in the viewers? minds to reiterate the fact that National Beverage Corp.? s soft drinks are usually priced lower than its competitors. Moreover, the vibrant colors used in the commercial highlight the many flavors that the company carries. Public Relations National Beverage Corp. cleverly uses the Internet as a medium to promote its image as a â€Å"neighborhood friend† to its consumers.By utilizing Facebook, the company starts a monthly promotional page called â€Å"Shasta Pop,† which is maintained by its employees who post three to four weekly highlights. These posts mainly discuss about advertising soft drinks, especially around the holidays. In addition, there are recipes on how Shasta can be combined in daily cooking. Soft drink Industry 6 Sales promotion Presently, based on its â€Å"Shasta Pop† Facebook page, National Beverage Corp. uses a Shasta van that travels around California and gives out free soda cans, discounts, coupons, and T-shirts. This promotional tactic is known as â€Å"Sha sta Pop Stops. For example, to promote new flavors, Stater Bros. will be inviting the Shasta pop van with KFROP radio station to its store locations. Moreover, fans are able to follow the Shasta van by tuning in to some of their local radio stations. Personal Selling In terms of sales, National Beverage Corp. mainly conducts business with local retail grocery stores. In order to promote its products, it offers attractive discounts to retailers through partnerships. For example, a retailer that chooses to place National Beverage Corp.? s products in front of the store will receive a higher profit for every sale. Direct MailAs Internet usage increased exponentially over the years, National Beverage Co rp. uses the Internet to send promotions to consumers via E -mail. Subscribers of â€Å"Shasta Pop† Facebook page receive periodic coupons through their Facebook? s wall and E-mail accounts. IV. Financial Analysis ? Sales Graph 1 shows that Coca-Cola generates most of its revenue from international markets. The U. S. revenue accounted for 31. 7% of the total revenues in 2010, which was $11. 1 billion, a gain of 34. 6% compared to 2009 revenues. Moreover, international markets made up 74. 1% of the total revenues in 2010, which was about $23. billion, an increase of 4% compared to 2009 international revenues. The significant growth in U. S. sales can be traced to the gain from the acquisition of Coca-Cola Enterprises and the growt h of its other beverage products, such as Fuze, Trademark Simply, and tea. However, international market sales rose slightly due to the concurrent growth in emerging markets as well as a decline in developed markets. Additionally, the unfavorable impact of foreign curren cy exchange rates was primarily responsible for a stronger U. S. dollar compared to other currencies (Coca-Cola, 2011, p. 63). Graph1: Coca Cola 2010 Sales by Segment 3% 0% 7% 13% 11% 14% 32% Source: 2010 Coca – Cola 10-K Report Soft drink Industry Eurasia & Africa Europe Latin America North America Pacific Bottling Investment Corporate 7 On the other hand, National Beverage Corp. sells its products to U. S. market only. Therefore, its domestic sales account ed for 100% of the total revenue in 2010, which was $593. 5 million, an increase of 3. 2% from 2009. Robust revenue in 2010 resulted from growth in the sales of case volume of 1. 2% for energy drinks, juices a nd waters; and 5. 1% for branded carbonated soft drinks. Moreover, â€Å"unit pricing increased 0. % which mostly due to positive product mix changes. The improvement was partially offset by a decline in allied branded volume† (NBC, 2011, p. 13). For the past six years, Coca-Cola increased its revenues and ne t incomes with average growth rates range from 8% to 18% annually. In 2005, sales were only $23. 1 billion. However, 2010 sales amount ed to $35. 1 billion, an increase of 13% from 2009. Additionally, 2010 net income was $11. 8 billion, an increase of 72% from 2009. The large growth was due to when the company acquired Coca-Cola Enterprises in October 2010, it recorded other income of $4. 8 billion.However, Coca-Cola experienced drawbacks in 2009 after the 2008 market crash. Its revenue dropped 3% to $30. 9 billion; nonetheless, its net income still gr ew to 17. 5% during 2009 as a result of price increase and effective cost cutting method of operating expenses as well as cost of goods sold (see Table 1). Even though National Beverage Corp. did not experience as much growth as Coca-Cola in its financial statements, its revenues have also been rising steadily since 2005. In 2010, revenue reached its highest level at $593. 5 million, an increase of 3% from 2009. Likewise, 2010 net inc ome was $32. million, an increase of 33% from 2009, primarily due to â€Å"higher sales volume, favorable changes in product mix and lower raw material costs† (NBC 10 -K, 2010, pg 13). Since 2005, revenue increased with an average of 3% per year, and net income growth averaged 11% annually. National Beverage Corp. experienced some setbacks in 2008 when the recession occurred. Though revenue increased, net income decreased by 9% to $22. 5 million (see Table 2). Table 1: Coca Cola Company (2005 -2010) (in millions) 2010 2009 2008 2007 2006 2005 Net Oper. Revenue 35,119 30,990 31,944 28,857 24,088 23,104 Cost of goods sold 12,693 11,088 11,374 10,406 ,164 8,195 S elling, general and admin expenses 13,158 11,358 11,774 10,945 9,431 8,739 Net Income 11,859 6,906 5,874 Source: sec. gov (Coca – Cola Company 10-K Consolidated Income Statement) 5,981 5,080 4,872 Table 2: National Beverage Corp. (2005 -2010) (in thousands) 2010 2009 2008 2007 2006 2005 Net sales 593,465 575,177 566,001 539,030 516,802 495,572 Cost of sales 396,450 405,322 393,420 365,793 349,131 340,206 S elling, general and admin expenses 145,159 131,918 138,447 137,212 135,090 130,037 24,742 22,480 24,682 22,226 16,886 Net income 32,853 Source: sec. gov (NBC 10-K Consolidated Income Statement) Soft drink Industry 8 ?Financial Overview According to data compiled by Bloomberg, Coca-Cola, leader in non-alcoholic beverage industry, is valued at $153. 15 billion via the market capitalization method. On the contrary, National Beverage Corp. , on the mid-size market capitalization roster, is valued at only $628. 23 million. In another word, Coca-Cola? s value is approximately 244 times more than National Beverage Corp.? s. Table 1 and table 2 show the income statements for these two companies for comparison purposes. Coca-Cola has been able to increase its revenues year after year and recorded top net sales at $35. 1 billion in 2010. Gross margin was 63. %, or another way of interpreting this i s the company took away $0. 639 per dollar of sale. Furthermore, after all expenses and income tax deductions, $0. 336 was net income per dollar of sale. The company boosted its bottom line from $6. 8 billion to $11. 8 billion primarily through revenue growth ($31. 0 billion to $35. 1 billion). For costs associated with cost of goods such as selling, general and administrative expenses (SGA) and income tax, a ll increased as a percentage of sales. However, the growth in revenue contributed enough to still see net income improve (Coca-Cola, 2011). Similarly, National Beverage Corp. as also been able to increase its revenue; therefore, increasing its net income year aft er year. Gross margin in 2010 was 33. 2% compared to 29. 5% in 2009. Due to lower economies of scale, National Beverage Corp.? s largest expense has been consistently cost of goods sold. Even though the company was able to reduce cost of goods sold expense from 70. 47% to 66. 80%, this expense was still high and is fin ancially harmful. However, the reduction in cost of goods sold in 2010 was a major driver that led to a bottom line growth from $24. 7 million to $32. 9 million (NBC 10-K, 2010). ? Financial Ratios Analysis Coca-ColaCOKE (KO:US) Current Quick ROA ROE Assets Turnover Inventory Turnover A/P Turnover A/R Turnover 1. 17 0. 85 14. 82% 42. 32% 0. 58 5. 07 times or 72 days 7. 88 times or 46. 32 days 8. 58 times or 42. 54 days LTDebt to Assets Total Liabilities to Total Assets Interest Coverage 0. 19 0. 57 19. 43 Coca-Cola? s financial ratios indicate that the company is in good health. In respect to profitability, return on assets (ROA) was 14. 82% and return on equity (ROE) was 42. 32%. These figures help the investors to assess management performance. Furthermore, liquidity indicators measure the company? s ability to meet short-term obligations.In 2010, current and quick ratios were 1. 17 and 0. 85, respectively. The quick ratio presents a more stringent figure on liquidity. Even though the â€Å"Golden Rule† states that it should be at least one, a figure like Coca -Cola? s can Soft drink Industry 9 be considered normal for a multinational company. Solvency calculations include long-term debt to total assets as well as total liabilities to total assets, which calculated at 0. 19 and 0. 57, respectively. Additionally, the interest coverage ratio, which indicates how many times interest expense is covered by operating profits before taxes and interest are factored in. Coca-Cola? interest coverage ratio was 19. 43, which meant operating profit was about 19 times larger than interest expense. Although there were not enough liquid assets to satisfy current obligations (total liabilities to total assets ratio of 0. 57), operating profit was more than adequate to service the debts. In addition to the calculations above, activity ratios measure how effective the company is utilizing its assets. Assets turnover, the amount of sales generat ed for every dollar's wor th of assets, was 0. 6. Inventory turnover, indicates how many times a company's inventory is sold and replaced over a period, and calculated at 5. 7 times per year or every 72 days. This shows that inventories were managed well. Accounts payable, represents an entity's obligation to pay off a short-term debt to its creditors, was 7. 88 times or every 46 days. Accounts receivable, is used to quantify a firm's effectiveness in extending credit as well as collecting debts, reported at 8. 58 times per year or every 43 days (Coca-Cola, 2011). National Beverage Corp. NBC (FIZZ:US) Current Quick ROA ROE Assets Turnover Inventory Turnover A/P Turnover A/R Turnover LT-Debt to Assets Total Liabilities to Total Assets Interest Coverage 2. 30 1. 71 20. 1% 21. 05% 2. 35 10. 67 times or 34. 21 days 8. 12 times or 45 days 11. 04 times or 33. 06 days N/A 0. 41 432. 13 For a mature company like National Beverage Corp. with a much smaller market capitalization, financial ratios indicate good perform ance year after year. Profitabi lity ratios like ROA and ROE were 20. 51% and 21. 05%, respectively. These returns on investment calculations were well above the industry? s average, which is very impressive. Liquidity indicators, such as current and quick, were 2. 30 and 0. 9, respectively. Unfortunately, these figures were below the industry? s aggregate.In regards to solvency indicators, total liabilities to total assets ratio was 0. 41:1 or $0. 41 debt for every dollar of asset. National Beverage Corp. used little or no debt in its capital structure and may have less financial risk than the indu stry? s aggregate. This increased the interest coverage ratio to 432. 13, meaning operating profit was 432 times larger than interest expense. Lastly, an activity ratio, such as total assets was $2. 35 revenue generated per dollar of asset. Inventory was presented at 10. 67 times per year, or every 34 days of cost of goods sold tied up in inventories.Accounts payable ratio indicates that the company collected 8. 12 times per year or every 34 days. Accounts receivable, reported at 11. 04 times per year or about every 33 Soft drink Industry 10 days worth of sales outstanding. In conclusion, National Beverage Corp. also appears to be in good financial standing. V. SWOT & Porter’s Five Forces Analysis ? SWOT Analysis Coca-Cola SWOT Analysis Strengths: Weaknesses: – Strong brand image and customer loyalty – High fixed costs of business – Robust global infrastructures and distribution – Several product recalls system – Higher prices compared to others Various product offerings – Solid financial condition and market presence Opportunities: Threats: – Expand to other developing countries – Change in customer preferences – Offer new beverages/drinks – Global economic recession – Shift focus to volume/price/ mix – Foreign exchange fluctuations National Beverage Corp. SWOT Analysis Stre ngths: Weaknesses: – Diverse product offerings – Low profit margin – Hybrid distribution system – Limited to U. S. market only Opportunities: – Expand to other neighboring countries – Offer new beverages/drinks – Increase in the non-alcoholic beverage ndustry ? Threats: – Change in customer preferences – Global economic recession – Rising cost of inputs – Competition from major beverage manufacturers Porter’s Five Forces (Soft Drink Industry) Threat of new entrants (Low): (H): Low switching cost for buyer, Low product differentiation (L): High economies of scale, High capital requirement, Low access to distribution channel Power of buyers (Moderate-High): (H): Low switching cost for buyer, Moderate product differentiation for supplier (L): Low purchase volume for buyer, Low threat of backward integration Power of suppliers (High): H): High switching cost to another supplier, High suppliers? concentra tion, Low availability for product substitute Soft drink Industry 11 (L): High importance of customer, Low t hreat of forward integration Threat of substitute product (Moderate-High): (H): High differentiation of substitute product (L): Low price performance relationship Intensity of Rivalry (Very high): (H): High number of competitors, Low industry growth rate, high fixed cost and storage cost, Low switching cost for buyers, High exit barriers (L): None Threat of New Entry (Low) Supplier Power (High)Competitive Rivalry (Very High) Buyer Power (Moderate High) Threat of Substitution (ModerateHigh) VI. Management Analysis The management analysis section will examine management structures, corporate policies, mission statement s, and vision statements of both The Coca-Cola Company and the National Beverage Corp. The management structure segment will explore the corporate leaders and executives as well as the workplace environment. A segment on corporate policy will observe responsibili ties and ethics expectations of every employee. The last segment will analyze each company? mission and vision statement and what it means to the company. ? The Coca-Cola Company Management Structure Management at the corporate level is headed by Muhtar Kent, Chairman of the Board of Directors and Chief Executive Officer. Other top officers at the Coca -Cola Company include Executive Vice President Irial Finan, Chief Financial Officer Gary Fayard, President of North America Alexander Douglas, and President of Latin America Jose Reyes. Soft drink Industry 12 Coca-Cola creates a winning culture by developing a diverse workplace. At the core, there is the â€Å"right employee† value proposition, which is directly ffected by four key values. These values are finding the right talent, right capabilities, right leaders, and the right workplace (Global Diversity, Our Strategic Framework 2010). In order to create the right workplace, the company must sustain positive diversity and fa irness on all levels of operations. Finding the right talent relates to matching the right people with the market they serve. Building the right capabilities is about sharing social culture and knowledge in the workplace. The right leaders leverage talent in the workplace to achieve superior results across the business.Coca-Cola Company currently employs 139,600 people, also known as â€Å"associates† (Businessweek, 2011). Corporate Policy and Ethics The Coca-Cola Company has been able to enhance its reputation through integrity and ethical conduct. Therefore, it is important for the company to safeguard these values and set standards to ensure employees do the right thing. The company? s Code of Business Conduct covers guidelines on integrity around the globe, internal as well as external integrity, and conflicts of interest. Mission and Vision Statement The Coca-Cola Company has set long term road-map of acquiring its bottling partners.The 2020 vision defines the company? s attitudes and behaviors that are required to turn the vision into reality. Furthermore, Coca-Cola? s mission statement serves as a guideline for company? s actions and decisions (Mission, Vision, Values, 2010). ? National Beverage Corp. Management Structure The executive team at National Beverage Co rp. is led by Chairman of the Board and Chief Executive Officer Nick A. Caporella. Other top officers include President Joseph Caporella, Principal Financial Officer George Bracken, Executive Vice President of Procurement Edward Knecht, and Chief Accounting Officer Dean McCoy.National Beverage Corp. has been able to create a winning cultur e through several key factors. First, t he company works as a whole towards strength, knowledge, and longevity of management team ([NBC] The Difference, 2010). Its seco nd factor is the flexibility to plan globally and act locally, this includes the process of vertical integration, hybrid distribution, and basket of beverages ([NBC] The Difference, 20 10). The company currently employs 1,200 workers (Businessweek, 2010). Corporate Policy and Ethics Ethical conduct is vital to ensure successful and lasting business relationships (National Beverage Corp.Code of Ethics, 2007). National Beverage Corp. also sets high standards of ethics for all its employees, supervisors, and managers. These include the procedures for the employees to act accordingly when dealing with the following: ? Conflicts of interest ? The use of entertainment, gifts, and payments Soft drink Industry 13 ? Relationships with customers or suppliers, and government employees ? Receipt of items by National Beverage Corp. employees ? Complete and accurate financial records as well as communication ? The use of company assets ? Workplace environmentMission and Vision Statement National Beverage Corp. continually strives to set a higher standard for value, quality, variety and innovation as a leader in the beverage industry ([NBC] The Difference, 2010). It continually positions itself as a unique beverage company with innovative ideas. Furthermore, the company places its people, products research and development, environment, packaging, and consumers at its forefront to create innovative advantages for the company. VII. Alternatives Financial Objectives According to most observers, there are two strategies for achieving superior erformance in any business. One strategy is product and service differentiation; the other is low -cost leadership. In National Beverage Corp.? s case, it is appropriate to suggest a low-cost leadership strategy. This method focuses on consumers? attention on product pricing, often using such slogans as â€Å"everyday low prices† or â€Å"the lowest price in town. † The goal is for the company to become the lowest cost producer in the marketplace so it can underprice the competition, achieve the highest sales volumes, and still make a profit on each sale.This can be attained by making quantity discount purch ases, having a lean administrative structure, and using production efficiencies from vigorous cost containment. As the business environment changes, few companies actually pursue just one strategy. Most will attempt to implement both-developing customer loyalty while controlling costs. National Beverage Corp.? s management will now ha ve to decide to: (1) improve profit margin, (2) increase asset turnover (more sales volume or fewer assets), or (3) both. In this case, it is best for management to formulate goals to increase profit margin.Profit Margin ROA and Competitive Advantage 30 25 20 15 10 5 0 NBC 0 0. 5 1 1. 5 2 Assets Turnover Soft drink Industry 2. 5 3 COKE 14 Strategic Objectives The core business from these two companies stems from the production of soft drinks. Coca-Cola has its Coke line as National Beverage Corp. has Shasta. Unfortunately, there are many products within Nat ional Beverage Corp. that cause brand dilution. To overcome this effect, the company can shift f ocus back to the Shasta brand and eliminate low performing players. This will in turn, strengthen Shasta and consolidate the brands that are left.Some alternatives the company may want to consider are broken down into short-term and long-term. Short-term In order for Shasta to gain greater brand recognition in a short time, it is imperative that National Beverage Corp. increases its marketing budget. Several possibilities to better market Shasta are: ? Advertise at college sports events ? Target more local domestic stores to increase â€Å"Buzz† effect ? Use celebrity advertising, specifically o lder television show celebrities ? Create a new commercial that is consistent with the marketing strategy of Shasta (example: promote self-identities of consumers through favorite soft rinks) These potential marketing strategies all focus on strengthening Shasta? s brand image. They also allow the company to remain consistent with its overall marketing plan. Long-term Further analysis shows that Shasta? s range of consumers is very narrow. The company only distributes in four states: California, Arizona, Utah, and Minnesota. Several approaches to increase sales of Shasta are: ? Distribute to more states ? Develop distributing partnerships with large retailers like Target Expanding distribution channels will boost sales of Shasta. The residual income can then be used to invest in building new production plants.Moreover, developing contracts and partnership s with large retailers like Target will ensure greater product placement, therefore, revamp brand awareness among consumers. VIII. Recommendations Short Term Create a new commercial that is consistent with the marketing strategy of Shasta Shasta rarely advertises on TV or online. However, it does have a popular commercial, which aired recently, â€Å"Hit in the head. † Unfortunately, it is neither good nor interesting. Besides, it does not match with the company? s current marketing strategy to have cons umers identify themselves with their favorite beverages.If Shasta is able to create a different approach for its advertising method and follow its marketing strategy, it may be able to obtain greater brand recognition and market shares in the soft drink industry. Since Shasta is National Beverage Corp.? s core competency, the company should approach the consumers based on this beverage line. The best way is to create a commercial that promotes self-identity based on the flavors that Shasta offers. With the target market being very diverse, this new commercial might appeal not Soft drink Industry 15 to just different ethnic groups, but also younger consumers who like to be different and unique.Long Term Develop distributing partnerships with large retailers to increase p rofit margin In 2010, National Beverage Corp. had a 66% cost of sales ratio, whereas Coca-Cola had 34. 3%. National Beverage Corp. „s cost of sales was excessively high for industry? s standard; therefore, was the primary cause of low profit margin. In order to increase profit margin, the company should lower its production costs by achieving larger economies of scale through building or developing distributing partnerships with large retailers like Target. This in turn will lower production and distribution costs.Consequently, Shasta cola brand will be availa ble to many other states and reach more consumers and markets; thus, boosting revenue and total sales volume. Soft drink Industry 16 XI. Bibliography About National Beverage Corp.. (2009, January 1). National Beverage Corp.. Retrieved March 28, 2011, from http://www. nationalbeverage. com/10AboutNBC. htm Coca Cola Company. (2008, Feb. 28). 2007 Form 10-K. Retrieved March 29, 2011, from http://sec. gov/Archives/edgar/data/21344/000119312508041768/d10k. htm Coca Cola Company. (2011, Feb. 28). 2010 Form 10-K. Retrieved March 28, 2011, from http://ir. thecoca-colacompany. com/phoenix. zhtml? =94566&p=IROLsecToc&TOC=aHR0cDovL2lyLmludC53Z XN0 bGF3YnVzaW5lc3MuY29tL2RvY3VtZW50L3YxLzAwMDEwNDc0NjktMTEtMDAx NTA2L3RvYy9wYWdl&ListAll=1&sXBRL=1 Coca-Cola Raises Total Pledge to 2. 5bln Yen for Japan Relief. (2011). Asia Pulse. Datamonitor. (2010, Apr. 15). National Beverage Corp: Company Profile. Datamonitor Company Profiles Authority. Retrieved March 27, 2011, from http://search. ebscohost. com. lib-proxy. fullerton. edu/login. aspx? direct=true&db= buh&authdb=dmhco&AN=7E22BD44-DB90-4E61-AE79-F5F25D7169FB&site=bsilive Datamonitor. (2010, May 28). The Coca Cola Company: Company Profile . Datamonitor Company Profiles Authority.Retrieved March 27, 2011, from http://search. ebscohost. com. lib-proxy. fullerton. edu/login. aspx? direct=true &db=buh&authdb=dmhco&AN=37CB5616-D04E-49EE-9F5CFFE75047D6FF&site=bsi-live Disclaimer/Terms of Use. (2009, January 1). National Beverage Corp.. Retrieved March 27, 2011, from http://www. nationalbeverage. com/SiteInfo. htm Events & Promotions – Shasta. (2010, January 1). Shasta Beverages , Inc. Retrieved March 28, 2011, from http://www. shastapop. com/events-promotions/ Grimm, M. (2000). Drink me. American Demographics, 22(2), 62-63. Marketing Mix (4 p's) – Promotion and Promotional Strategies. (2010).Welcome to Learnmarketing. net – Learn about Marketing here. Free Marketing Education, Lessons and Marketing Resources. Retrieved March 27, 2011, from http://www. learnmarketing. net/promotion. htm Mission, Vision, & Values. (2011) Retrieved April 10, 2011, from http://www. thecoca-colacompany. com/ourcompany/mission_vision_values. html National Beverage Corp. (2007, Jul. 12). 2007 Form 10-K. Retrieved March 29, 2011, from http://sec. gov/Archives/edgar/data/69891/000095014407006550/g08320e10vk. htm National Beverage Corp. (2007). National Beverage Corp. Code of Ethics. National Beverage Corp: Author National Beverage Corp. 2009). The Difference – Our Vision. National Beverage Corp.. Retrieved April 10, 2011, from http://www. nationalbeverage. com/ 32OurVision. htm National Beverage Corp. (2010, Jul. 15). 2010 Form 10-K. Retrieved March 29, 2011, from http://sec. gov/Archives/edgar/data/69891/000095012310065795/g24048e10vk. htm Soft drink Industry 17 National Beverage Corp. (2011, Jan. 21). National Beverage Corp (FIZZ). Value Line Investment Survey, p. 4633 National Geographic Channel. (2011). Ultimate Factories [Web]. Available from http://channel. nationalgeographic. com/series/ultimate-factories/5151/Overview#tabVideos/09750_00 Nguyen, J. Interviewer) & Anicich, C. (Interviewee). (April 20, 2011). Shasta Target Market [E-mail]. Shasta Beverage, Inc. (2010). Our History. Retrieved April 17, 2011, from http://www. shastapop. com/history/ Sicher, J. (2011, March 17). Beverage-Digest. Top-10 CSD Results for 2010, 59(5), Retrieved from http://www. beverage-digest. com/pdf/top-10_2011. pdf Staff, J. (2010). Coke, Pepsi like ‘net gains; cola rivals' fans on Facebook, twitter help steer, sell the brands. The Atlanta Journal- Constitution, 13A. The Coca-Cola Company. (2010). Code of Business Conduct: Acting with Integrity Around the Globe. Coca-Cola Company: AuthorThe Coca-Cola Company (2010). Global Diversity Our Strategic Framework. Coca-Cola Company: Author The Coca-Cola Company. (2011). The Coca-Cola Company Fact Sheet. Retrieved April 17, 2011, from http://www. thecoca-colacompany. com/ourcompany/pdf/Company_Fact_Sh eet. pdf Van Liew, NC. (2011, Jan. 28). Coca-cola (KO). Proceedings of the Value Line Reports for The Dow 30. Available from http://www3. valueline. com/dow30/f2084. pdf Wang, E. (2008). Study: Coke, the most talked about brand in America. Brandweek, 49(38), 009. Wooten, A. (2011). Preserving brand strength in global markets. Deseret News, WEB. Soft drink Industry Coca Cola Analysis The Coca Cola Company The company that I have chosen for my course project is the Coca Cola Company. The reason for my selection is simple, I am impressed with growth associated with Coca Cola and plan on further researching and analyzing how such growth of this magnitude is possible. The company was founded in 1886 by John Pemberton as a simple soft drink, created solely out of curiosity. John Pemberton, a pharmacist, mixed together the caramel flavored carbonated drink and initially starting selling it for 5 cents.Now 126 years later, Coca Cola has more than 3500 beverages, sold in over 200 countries and employ more than 146,200 employees. What debuted as a simple soft drink in an Atlanta pharmacy, now has a global success rate of 1. 8 billion servings per day. Product List The following product list is from research gathered covering the Coca Cola drinks of the North American Region in the United States. Globally Coca Cola has over 3500 products. The products sold solely in the Un ited States range from juices, energy drinks, soft drinks, coffees, teas, sports drinks and drink mixers.Coca Cola diverse efforts to cover every aspect of liquid drinks, whether for sporting events or simply enjoyment, have made up a total of XXXXXX in the United States alone. The original Coca Cola product was first introduced in 1886 and distributed nationally by 1899. Today you can find your favorite Coca Cola product literally anywhere in the world. Due to higher concerns for health and nutrition, in 2007 Coca Cola furnished caffeine content per serving along with already available nutritional information. Product Lines and MixThe Coca Cola Company has 7 product lines within their beverage selection. They all fall into the non alcoholic liquid beverage sold in restaurants, stores, vending machines and distribution companies in the United States. Of the 7 product lines (see table A below), you can see that the most variety falls under the soft drink line with over XXXXX of produ cts. Table A. Product Coca Cola Products have some of the most distinct flavors. At times they were criticized for adding certain ingredients, such as cocoa leaves, to enhance flavor and increased desire to drink the soft drink.Today the Coca Cola products sold in stores in the United States range from carbonated delightful drinks, to sports drinks used to fuel the body with electrolytes (See Table B. below). Coca Cola's first product was actually made by mixing a â€Å"fragrant, caramel flavored liquid and combined with carbonated water. (Coca Cola Co. , 2012). It became an almost instant sensation and today Coca Cola owns some of the favorite soft drink products sold in the U. S. such as Dr. Pepper, Sprite, PowerAde, Minute Maid, and Dasani. Table B. |Type of Drink | Popular | |Soft Drinks |Carbonated -flavored |Coca Cola- Sprite | |Juices |Non carbonated fruit drinks made from real fruit juice and |Minute Maid Lemonade | | |flavoring | | |Energy Drinks |Energy carbonated drink s made from Ginseng and Tuarine |Monster Energy | |Sports Drinks |Combines carbohydrates with fluid for hydration |POWERADE | |Tea / Coffee |Iced Coffee and Tea |Nestea | |Water |H20 |Dasani | |Other |Drink mixers, lactic drinks, and coffee blend |Bacardi Mixers | Include competition and SWOT ANALYSIS here before final draft!!! Branding Founded in 1886, the now famous brand that can be found world wide, Coca-Cola is the face to many different popular brands that we find on store shelves. In the 1950's Fanta joined Coca Cola only to be followed by Sprite, Tab, Minute Maid, Mr. Pibb, and Mello Yello.In the 1980's the famous brand Diet Coke and Cherry Coke were added, and the 1990's brought about the PowerAde and Dasani era. The Coca Cola logo has remained unchanged and impressively a letter script font so simple has become globally recognized. Packaging In 2010, Coca Cola switched from â€Å"The Coca Cola Management Company (TCCMS)† to the â€Å"Coca Cola Operating Requiremen ts (KORE)† to ensure quality, and product safety. Coca Cola holds a high standard in packaging and quality control of their operations. Coca Cola is consistently refining their efforts to maintain a high level of packaging and implementing new requirements as deemed necessary.Since Coca Cola is packaged globally, the â€Å"KORE† has implemented a set of requirements that are must be in accordance with packaging guidelines in order to protect the integrity of the product wherever it may find it's destination. The Coca Cola company first started bottling their product in 1894 in a now commonly known bottle called a â€Å"Hutchinson†. You can now find the product in a 6. 5oz, 10oz, 12oz. , 26oz. , bottle, plastic and aluminum containers. The product can also be found in a concentrate form. Sold in a carton box with the concentrate inside a plastic sealed bag, restaurant owners can then connect to their carbonated mixers and serve fountain drinks. Product FeaturesCoc a Cola has some very unique features and on top of having a patented flavor that has literally been untouched since its' debut in the late 1800's, the Coca Cola Company has now expanded it's diverse taste palette to accommodate anyone’s preference of taste. From soft drinks, to energy drinks, you can literally find a match from a Coca Cola product. One of Coca Cola's biggest product features is that you can find your favorite product shelved at a local store, anywhere in the world. A great product feature is that you can purchase it in bulk or by a single unit. Labeling The Coca Cola Company provides several labels for their customers to attain facts of the beverage that they are consuming.Nutritional Facts and UPC codes can clearly be found on Coca Cola Products. Since 2007, Coca Cola began furnishing a detailed â€Å"caffeine content in addition to nutritional information already provided. † ( Coca Cola, 2012). As of 2008, Coca Cola began providing â€Å"servings-pe r-container† and â€Å"calories-per-serving† for all customer's. Finally in 2009, Coca Cola's packaging was formatted differently to provide an immediate visual presentation of the calorie content on front of packaging. Competition It is no secret that Pepsi Cola Company is Coca Cola's direct competition. For many years we have seen the on going marketing battle of the two companies literally feuding via commercial air waves.The long battle is due in large part to Pepsi's direct marketing strategy to out due or match every single move that Coca Cola makes. The shadow-like improvements of each mega marketing campaign have proven to be cornerstones in marketing and advertising trends that we see today. The mega moves and strategies that each company has the ability to afford are a great tools for any company to take notes on and follow suit. Interestingly enough, Pepsi competes with Coca Cola in a different approach; Coca Cola has over 3500 soft drink products and Pepsi w orked its' way into marketing their brands of chips, oatmeal, snacks, cereal, teas, soft drink PricingDue to the variety of sub- brands under Coca Cola, price segmentation is in place due to the different markets and global distribution pricing as well. In the United States, Coca Cola Company and Pepsi Cola have become mega players in the oligopoly market. With less competitors, and the same brand names seeking larger market share, the pricing strategy on a product that sometimes can be found for $1. 00 U. S. , is uniform delivered pricing. (Lamb, Hair, McDaniel, 2012). Since distribution is world wide, the companies prefer to factor in their own freight and production costs, to deliver the price demand that competitors are available to offer. There is a mutual agreement when in a market such as oligopoly.The pricing strategy is still competitive pricing strategy, due to the fact that if Coca Cola decided to lower prices, Pepsi Cola would soon follow suit to stay within the target m arkets price demand. It is also very realistic that when competitors raise or lower prices, the opposing players can decide not to match opposing prices as a strategic stronghold to maintain position in economic market spot. In a recent article from the â€Å"News by Industry†, Pepsi announced a â€Å"festive promotional price cut† and sources close to Coca Cola said that they would not match the cut. (â€Å"Pepsi to Cut†, 2012) Since the beverage commission has very little companies with a lot of buyers, the pricing strategy is competitive and based on competitors pricing.Pricing in this market is very elastic and companies have the ability to change pricing as they wish depending on their geographic locations. The pricing in vending machines can also vary since labor costs do not exist and can basically sell the product all day, every day. The pricing strategy on Coca Colas different product sizes is extremely strategic. Depending on where you purchase the pro duct from, prices will vary. According to a recent poll question asked on Yahoo, â€Å"how much does your Coca Cola cost where your at? †, average cost on a 20oz. bottle of Coke is about $1. 25, average cost for a 2l bottle of Coke is about $1. 10, nationwide. Promotional pricing can be found regularly on 2l bottles and packages with larger per volume products.The pricing strategy is tactical and allows for consumers to feel the need to upgrade to save on price and increase volume. The most expensive form of consumer product purchase is the 5 gallon â€Å"bag in box† form. This concentrated syrup is usually purchased by restaurants/bars industry, and can yield 30 gallons of fresh fountain product. This price also varies on your geographic location and distributor, but on average here in Texas can be purchased from Sam's Club for $69. 83. (Sams, 2012) When sold in restaurants, soft drinks now sell for about $2. 00 for a 10-16oz glass, making it extremely profitable and cost effective to purchase the concentrate.On the other hand, Coca Cola benefits for simply selling the concentrate and less costly forms of packaging. Place Since Coca Cola is one of the most popular soft drinks in the world, distribution is in high demand and in a multitude of channels. The distribution method that is used by Coca Cola is in the Fast Moving Consumer Goods. Here the products do not rely on a long shelf life and due to the moderate and easy pricing, products are in high demand, sell at a high rate and distribution is high. Ranging from mobile vendor carts on the streets to some of the large amusement parks such as Disneyland and 6 Flags, distribution is effective in every form.At the end of the day when added up globally, Coca Cola is at the top of the beverage consumption list. Some of the many distribution channels include the following. Mobile/ cart vendors- mobile vending can satisfy consumers conveniently at their location instead of having the consumer come to a retail store or stand. Provides easier access to consumers in special events or parks with the satisfaction of a cold beverage in any location. Vending Machines- with an occasional restocking visit, a vending machine provides an assortment of products at no labor cost. The vending machine provides product to areas that are remote or not within walking distance to the store, accessibility and great advertising.Vending machines are favorites in schools and business lounge areas. Retail stores / grocery stores- with places such as Wal-mart, this allows for a wide array of variety to be shelved and advertised while selling the product. Coca Cola holds contracts and agreements to provide for strategic placement of their product so that the first visual product such as Coke is in plain site. Competitors products are pushed to the end of the aisles. Hotels, Restaurants, Cafe- This is by far the largest number of consumption since restaurants and bars use a large number of soft drinks an d mixers. Contracts and sponsorships with these locations provide for major distribution.Amusement Parks, Museums, Civic Centers- Areas like Disneyland and 6 Flags over Texas are the biggest types of distribution forms. Amusements Parks hold concerts and special events where the â€Å"official beverage† of the theme park are displayed profoundly. Within the park are restaurants and food courts that are also limited to selling the â€Å"official beverage† adding to the large number of distribution methods. In a recent article provided by Beverage World, â€Å"Six Flags Entertainment Corp. and The Coca-Cola Company have announced a 10-year extension to their partnership agreement, designating Coca-Cola as Six Flags' official beverage sponsor for all domestic parks. (â€Å"Coke, six flags,† 2012) With a partnership agreement of this magnitude, competition is increased due to the large number of exposure and distribution that is provided. Coca Cola has had this sam e contract with 6 Flags for the last 50 years. Any media that is released or furnished by 6 Flags Over Texas, (i. e. Twitter, Facebook, Yahoo) will automatically provide the â€Å"Coca Cola-Official Drink† stamp. With a consistent strategic placement in a venue such as ginormous as an amusement park, it can be said that all of Coca Cola distribution channels undoubtedly cover important areas to contribute to the 1. 8 billion serving per day in over 200 countries. Promotion Communication StrategyA communication strategy is the way in which a company relays information for the products or services to reach the consumers hands and attention. The Coca Cola Company has several strategies which it employs to reach their target market. In order to reach the correct target market a strategic and precise strategy must be applied. Although specific, detailed marketing information could not be obtained, in 2006 roughly $2. 6 billion dollars were used for advertising expenses in pursuit of reaching a solid communication strategy. In 2000, only $1. 7 billion was spent on advertising. (Coca-Cola FAQ. 2012) In my summary the amount of advertising investments paid in relation to dividends generated will be defined.According to a recent article by Forbes Magazine, The Coca Cola Company is at the top of all beverage companies, and ranked #3 among the most powerful brands in the world. Forbes Magazine also estimates Coca Cola's advertising expenses at around 3. 2 billion (Badenhausen, 2012) In order to form a powerful communication strategy, the target audience must be defined. The following target market is what Coca Cola has found to be beneficial for the companies growth. . Young athletes- young athletes are a good source to start with. By increasing product awareness at a young age, you inspire taste bud recollection and a higher return. Young athletes are easier to inspire with promotional ads, billboards and endorsements from professional athletes. More of the sport s drinks and water fits into this category.High School Athletes- High school athletes are constantly looking up to professional collegiate athletes. Adding the endorsement incentive to these young athletes is a primary step in increasing product consumption. Sponsorships Collegiate Athletes- here athletes are influenced by professional figures and the hopes of the Olympics. Endorsement deals are larger here since the competition is fierce with hungry rising, mature individuals. Sponsorships Pro Athletes- Endorsements are the main source of advertising. Professional athletes are the main element of advertising and sports drinks are seen everywhere. Young Adults- Non Athletes- Clubs, bars, and nightclubs are the focal point in order to attract this demographic.Professionals- very open form of market. Basically all elements of the previous demographics factor into the professionals. This is an ongoing form of demographic that derive from the adolescent to present day professional. Larg e Audience- there is no specific market here as it applies to the whole general consumer base as a whole. It is the maximum exposure that creates a large audience base. Olympians- The entire universe participates in these events and are a great source of advertising. Here endorsements here are extremely valuable as athletes are in a world wide arena and competition is extremely fierce. Other- made up of all elements comprisedSales Strategies Coca Cola has several different sales strategies that have actually worked for them numbers wise. According to an article posted by â€Å"The Packaging Digest† in 2011, a recent sales strategy boosted sales by 8% to 2. 2. billion world wide, and actually increased the product price by 3%. (Crocker, 2011) This is a proven method that has given results. The placement of products is strategic. When shopping for health foods, one of the most popular fruits being the bright yellow bananas, you will find â€Å"Dasani† , eco friendly recy cled water bottles right under them. Pairing items like this is a tactic that has proven effective since 2011.Another strategy is one that Coke Zero uses to place their products in the beer section, to encourage the designated driver to consume their products. Finally, the 2 liter coke that is found in the grocery stores near the pre-cooked chicken is also a strategy to make it easier for you to â€Å"grab and go†. Making it easier for people to shop faster is key. Vending machines and coolers with the product before check out are some of the sales strategies that Coca Cola uses to increase sales in a market of $1 products. â€Å"The competition is actually pretty fierce for the overall beverage dollar,†¦ It requires a lot of marketing and promotional support. â€Å"(Crocker, 2011) Sales ApproachIn order for a product to remain within the realm of competition it is necessary for your product to remain as fresh as it was as when you opened it. Coca Cola claims that thei r approach is quite simple in this aspect according to a recent article in the Forbes Magazine. Jeff Tripodi, CMO of Coca Cola, claims that their strategy is innovation. (Dan, 2012) Having a state of the art dispensing machine will increase sales, further connecting with your consumers will also increase your chances at success. One of the recent forms of innovation are the â€Å"Freestyle† dispensing machines that can pour 125 different beverages with a perfect pour each time. Building a strong cultural connection with your geographic area you plan on promoting to is a huge plus in improving overall sales.In order to promote sales a great promotional mix is required to ensure that all advertising expenses are maximized and yield awesome results. The following is promotional mix that includes all of the avenues thru which sales are promoted. Promotional Mix Advertising- commercials, billboards, visual advertisments, vending machines Sales Promotion- Battle of Bands, My Coke R ewards Personal Selling- Coca Cola Representatives Social Media- Facebook, Twitter Communication Channels / Media A recent article on Coca Cola's webpage, March 27, 2012, announced the acceptance speech of the companies induction to the â€Å"Advertising Hall of Fame†. With over 120 years in the beverage business, there is no doubt that Coca Cola has held some very important marketing campaigns.Their first campaign came in the 1920's, with â€Å"The Pause That Refreshes†, then with â€Å"Things Go Better With a Coke† in the 1960's, and present day â€Å"Open Happiness†. Today over 845 million people are connected to Coca Cola via Facebook, 6 billion cell phone subscriptions, and 2. 5 million connected regularly via the webpage. (â€Å"Remarks in acceptance,† 2012) In order for these communication channels and effective marketing efforts to be maximized, a diverse array of marketing efforts are taken into account in the following channels. Promotion al Tasks: Internet Sporting Events Billboards TV Advertising Press Concerts Sales Promos Promotional SWOT Analysis SWOT |Positive |Negative | | |Strengths |Weakness | |Internal |Globally recognized |Product shipment could be damaged | | |Established distribution |Recalled products costly | | |Established Market shares |Endorsements could cost face of the company with a | | |Brand identity |simple mistake | | |Opportunity |Threats | | |unlimited partnerships |Pepsi is the biggest competitor | |External |unlimited new product offerings |the product is inexpensive and easily lose consumers to | | |globally recognized brand |competitors | | |offer beverages for all carbonated or â€Å"un†. |the caffeine and diet craze could prove costly. | Conclusion to Promotional Analysis The Coca Cola Company deals with promotional aspect of their business on a mass communication level. The company usually doesn't know the type of people with whom they are trying to communicate with but rather who their target market is.Careful management of this delicate area can ensure that messages are being met and no clutter of message or mixed signals occurs. The promotional campaigns that the Coca Cola Company is operating grew 20% to 10. 2 billion dollar in the year 2011 so that you can say that it is extremely effective and does work. The Coca Cola Company is represented by everyone who drinks it and when they do, they are literally providing advertising with a profit rather than at an expense. Coca Cola originated in the U. S. A. and has built a brand that has represented many countries during the Olympics. For that reason Coca Cola has had a successful and prosperous lifespan.They have allowed the people that drink the product the opportunity to share in many of its' triumphs during the Olympics and built a brand that is represented by the people who enjoy Coca Cola. 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