Tarp Solutions

The economy has drastically taken a hit in the last 6 years for the worst from the recession changing consumer’s views and effecting sales for businesses. Strategies that once worked for Coca Cola are now obsolete and need to be quickly modified to adjust to the consumer’s new way of thinking. Coca Cola can gain direction to this problem by efficiently taking control of every aspect of their company, and seizing available opportunities in their marketing sector while evaluating new trends. Recently PepsiCo, Coca Cola’s biggest competitor, acquired all of its North American bottling companies to have a more hands on approach toward their manufacturing, rather than allowing a 3rd party to have most of the power (Reuters, 2011). From this course of action, Coca Cola will have an increase in their net revenue by 40%, more than what was anticipated (Reuters, 2011). Also since the price of corn, juice, and plastics have increased this will give Coca Cola a better chance to adjust ingredients or bottling methods to cut costs which dramatically alter profit margins (Reuters, 2011). It would be a wise choice also because Pepsi also saw favor results reporting in a $90 million profit as opposed to last year $270 million loss after the bottling acquisition (Wall Street Journal, 2010).

As the economy continues to decline “consumers that have grown wary of the high-fructose corn syrup that is used in a wide variety of bottled drinks, from soft drinks to bottled teas and energy drinks,” this leads to the conclusion that Coca Cola should reposition some of its non carbonated beverages (Associated Press, 2009). In fact PowerAde, Minute Maid, and Vitamin Water (a few of Coca Cola’s non carbonated brands) have increased in sales by 7% (Reuters, 2011). Recently PepsiCo attempted to redesign one of its biggest brands, Tropicana, and PepsiCo saw a drop of 2.7 points (Crain, 2010). Coca Cola can take advantage of PepsiCo’s weak point and improve its own brand, Minute Maid, since...