External Factor Affecting Mnc Essay

2427 words - 10 pages

The Coca-Cola Company

Coca-Cola is the world’s most recognized drinks brand, as a company they strive to satisfy every individual’s need of refreshment and nutrition. With more than 3,500 different brands of beverages, they are able to cater to a wide range of consumers in almost every target market and consumer category. For example, the health conscious will most probably grab a Coca-Cola Zero or Minute Maid that comes in a few fruity flavours, for others who prefer something tea-based, they would pick up Heaven and Earth. There is something for everyone.

In 1886, a pharmacist named John Pemberto from Atlanta, stirred up a caramel-colored liquid out of simple curiosity. ...view middle of the document...

This trend is not just worldwide but slowly and surely expanding within the Asian region, especially in the more affluent countries. In Singapore, one such indicator is the increase in number of sporting activities that are seeing a quick rise in popularity within the country. One prime example is the Sundown marathon, a signature sporting event in Singapore. Over the past few years the number of participants has been increasing constantly ever since it started. The estimated number of participants in 2011 was 27,000, with an increase of around 1,000 participants to 28,000 this year, signaling Singaporean’s increasing focus on health and healthy living.

As the global population is converging towards a relatively more homogeneous range of consumer preference, Singapore is no exception. Today, one of the most prominent trends, is a converging consumers preference towards healthier drinks. As such Coca-Cola will need to not only start to focus on this consumer category but to place ample emphasis on redefining the proportion of its product offering on ‘healthy drinks.’ This would involve a shift in resource allocation to focus on marketing these products to the right individuals through the appropriate channels, at the same time allowing a more focused allocation of resource for manufacturing, research and marketing cost to push out healthy drinks, while leveraging the converged consumer preference of healthy drinks to be sold locally. Consequently, the company would be able to increase profits through optimizing its resources to match the demand with the appropriate supply, and in so doing, minimizing loss in other product categories.

Secondly, the changing demographics within the local society would also greatly influence the type of product that is best suited for the country. For example, in less develop countries, there is a higher death / birth rate, leading to more children and less elderly persons. In turn translating into less spending power within the country, thus return of investment will take a longer time.

However, in a relatively developed country such as Singapore, the general population has very much evolved into society which is more focused on their career, choosing to get married late and have less children; leading to an ageing population. This on the other hand, has its benefits, giving Singaporeans more spending power with a more matured working population, however, due to an increase in age, these consumer are also more health conscious. Singapore is one such country, thus there is a need for Coca-Cola to prepare themselves for the next generation of products to appeal to these consumer. Research has shown that in reflection to their consumers lifestyle and diet, most wanted healthier choices with increasing demand of lower calories drinks, juice and teas. In recent years, Coca-Cola have been manufacturing more healthier choices like vitamin-water, honest tea, etc with these ranges contributing to approximately...

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