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Coca-Cola Company. Strategy and Challenges.

The topic selected here for the research is how Coca-Cola Company overcame the public criticism and business conflict with its main competitor Pepsi in respect of promotion of the so-called “Coca-Cola Stuff”.” The paper will examine the efficiency and the very essence of the new marketing strategy by one of the greatest beverage producers of the world in order to understand the main difficulties of this strategy and recommend possible solutions to these difficulties.

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Executive Summary

The current research was aimed at identifying the basic principles and directions of Coca-Cola marketing policies, difficulties experienced by it and possible ways to overcome them. The research aimed at finding out the similarities and differences of the campaigns by Coca-Cola and Pepsi in order to outline the improvements necessary to the Coca-Cola marketing management system and recommend the way to avoid such situations in future. As the result, the research found out that Coca-Cola carried out the company that was quite similar to the Pepsi’s one but the amount of money invested in it and certain methods of its conduct were different. The recommended solutions of future marketing management problems include better funding of marketing department, employing more creative people and better funding of media promotion of the company (Collins, 1).

Aims and Objectives

  1. To identify the basic challenges that Coca-Cola faces in marketing of its products.
  2. To identify and analyze the competitive position of the competitors of Coca-Cola.
  3. To analyze the pros and cons of the promotion campaign “Coca-Coal Stuff”.
  4. To suggest new marketing strategy that will help the company to solve the challenges (Laudon, 35-46).


Coca-Cola is one of the world’s leading beverage manufacturing company in the world. Recently, Coca-Cola has taken up the practice started by its eternal competitor Pepsi and launched production and promotion of different goods with the company’s logo, like T-shirts, caps, etc. The situation caused a lot of controversial statements from both Coca-Cola Company officials and Pepsi representatives who claimed either that the new campaign launched by Coca-Cola was based on Pepsi campaign techniques or that it was absolutely unique and original. Coca-Cola Company is known as one of the companies that spend great money on advertising and promotion and it was surprising that such a reputable company could use methods created by other companies (Collins, 1).

Literature Review

The topic of marketing, its main theories and basic principles have always been of great interest for the researchers around the world as the sphere of marketing is one of the most important in conducting any kind of business. The scholars studied the ways of optimization of marketing costs, improving the marketing strategies and marketing procedures that allow the companies to avoid difficulties in their business activities, like the market analysis, advertising and promotion. Such authors as Andreasen (2005) and Arcari (2006) dealt with the issues of costs marketing and reduction of costs spent on marketing organization in companies. Basic marketing theories were analyzed by Bell (2004) and Laudon (2007) who deal mainly with the theoretical aspects of marketing and consider such theories as Value Innovation, Market-Oriented Ethnography, Brand Relationship Theories and many others.

Company Background

Nowadays, Coca-Cola is the largest company that deals in the sphere of beverage in the world. It is also one of the greatest corporations on the territory of the United States and its market capital for the eight months of this year has amounted to $141. 463 Billion. The area of activities of the Coca-Cola Company embraces over 200 hundred countries all over the world; that is why the company is regarded to be one of the major players on the international market. The Coca-Cola Company operates with over 400 brands of waters, syrups and non-alcoholic drinks, dominates the domestic and international market in the sphere of beverage and is considered to be a worldwide company (Keyton, pp. 23 – 53).

Research Methodology

The current research is based on secondary data which will be gathered mainly from the internet sources. The information gathered this way will be used to give necessary findings for the research. As far as we need to find out the causes and possible consequences of certain events and see their future development, the most fitting method for the research will be the qualitative method. This method presupposes little attention paid to the numbers and much attention concentrated on the underlying factors that caused this of that event and on their possible consequences. Moreover, qualitative method of research allows the researcher to follow the constantly changing situation and make conclusions about the dynamic phenomena. All the above said, together with the above specified research aims and objectives, allows us to state that the qualitative method will be of great use in this research (Laudon, 21 – 23).


This section of the paper will outline and reveal the basic findings of this research. All the information will be structured according to the research aims and objectives. To start with, the basic challenges faced by the Coca-Cola Company in marketing and promotions of its production are connected with the competition existing on the beverage market (Keyton, 54). Pepsi is the main competitor of Coca-Cola, and this company claimed that Coca-Cola took its idea of promotion in its campaign “Coca-Cola Stuff”, while Pepsi carried out such campaign several months ago. At the same time, Coca-Coal officials claim to invent the idea of the campaign by themselves and prove it with $278 million spent on promotion in this year, while Pepsi’s costs on advertising were much lower. The “Coca-Cola Stuff” campaign itself is the promotion of the brand by selling T-shirts, caps and many other goods with the logo of the company. Among the positive sides of the company the increase in popularity and sales rates can be mentioned, while negative points include the possible similarity to Pepsi’s campaign which can not provide for the development of the company’s positive image (Collins, 1).

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Based on the data obtained during the conduct of the current research, the following recommendations can be given in order to avoid similar problems in marketing in future. Coca-Cola should pay more attention to the image of the company and do not spoil it with taking ideas invented by other firms. To achieve this, employment of young and creative staff will be of help. Finally, the distribution of costs spent on advertising and promotion should be organized better.


Glenn Collins. (1997) N.Y.Times News Service. Journal Record, The (Oklahoma City). 2008. Web.

Jane P. Laudon & Kenneth C. Laudon. (2007). Management Information Systems. Prentice Hall.

Keyton, J. (2004). Communication and Organizational Culture: A Key to Understanding Work Experiences. Sage Publications, Inc.

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