Coca Cola Company is an American based company and a global leader in the beverage industry. Indeed, the company exists as a multinational beverage company. Besides that the company also concentrates on the production and marketing of non-alcoholic beverage syrups as well as concentrates. The main brand that distinctively sells the company’s product is the Coca Cola product which was invented in the 1886. However, since the inception the brand, Coca Cola has continued to diversify in the production of other products to the current status which stands at 500 differentiated products spread across more than 200 countries. In essence, the company normally operates a franchised system of distribution dating back to 1889. The company therefore produces syrup concentrate which is then sold to globally placed bottlers who captures an exclusive territorial coverage. However, the company also owns a major anchor bottler based in North America.
The coca cola company has been in the market for a long time and has continued to dominate the beverage market industry for a long time despite the stiff competition that has been wavering from its main competitors such as Pepsi. However, the company has had been experiencing various barriers with respect to integrated marketing communications which is an essential of consumers oriented businesses like Coca Cola. This forms an important stronghold for the business in terms of its consistent updates regarding the business and the products therein. Indeed, Coca Cola has been a subject of the breakdown in the integrated marketing communication. This aspect helps the company to reach prospects located in various segments of the market. However, much as the integrated marketing communications accrues some benefits, it contains in itself various impediments that make the business campaigns less effective both in the short-run and in the long-run (Isdell & Beasley, 2011).
In essence, integrated marketing communication costs Coca Cola a huge lump sum that minimizes the intent to invest in this viable venture through minimal incentives to invest. Indeed, the skilled personnel particularly in web marketing, direct marketing and public relations comprises the main composition of an effective integrated marketing communication campaigns. The latter have the knowledge and capability to implement the strategic plan of the company. However, the company experiences a wide range of challenges effectively employing integrated marketing communication due to the high cost involved. The main cause of the failure can also be attributable to the high levels of skills needed for the personnel. Certainly, human resource end up receiving training in certain segments they may not be quite proverbial to enhance success of the campaign (Hays, 2004).
Lack of viability in the integrated marketing down plays the company’s ability to publicize its brands and therefore increases the intensity of competition particularly from its core competitor, Pepsi. Besides training, integrated marketing also calls for high time management and integrated course of planning to ensure the execution of the campaigns within the stipulated time frame. Lack of acuity in timely execution of campaigns, results to a mismatch between the expected results of the campaign and consequential skewed results. This therefore has continued to act as an incredible impediment to the success of the Coca Cola marketing strategy due to relatively poor marketing economy (Hays, 2004). The chart below indicates the global market share of Coke and Pepsi among other global beverage players in 2011 fiscal year.
The active involvement of the Company in integrated marketing has had far reaching adverse effects on the sales volume of the company. Since mode of marketing involves a pool of companies that come together to execute the campaigns together, the Company has continued to experience a perpetual reduction in the market share as compared to its immediate competitors. This results for the diverse corporate cultures of the organizations that it involves itself with. While every firm takes a responsibility a responsibility in the campaigns, for instance, public relation firm may be involved in the pitching of articles, some firms involved rather get a relaxed role leading to the failure of the entire campaigns strategy. This results from disparity in the cultures of different companies therein and has been a great barrier to effective campaigns particularly in the beverage industry. Ineffective communication strategies have been the main barriers too effective execution of the publicizing campaigns and therefore a fall in the corporate image. This has made the sales volume to remain relatively lower than the expected value due to poor publicity within the global precincts (Pendergrast, 1993).
Due to ever rising levels of competition in the beverage market, the financial flow in the company has been on the accelerated fluctuation due to the impeding market instabilities. For instance, the company recorded a total of 11,787,000; 8,584,000 and 9,019,000 US dollars in 2010, 2011 and 2012 fiscal years respectively. This indicated a fluctuation in net income of the company but an upward in sale purchase of stock. However, the capital expenditure of the company experienced the same downward pressure that denoted low capital investment due to worsened marketing economy particularly in global beverage industry. Such market forces caused the sale of coke brand to slip from 57 per cent in the global sales of 2000 to 53 per cent of the global sale in the year 2006 (Enrico & Kornbluth, 1986). In terms of the market share, coke has continued to experience a consistent decline due to various impeding challenges resulting from various market dynamics some of which were mentioned earlier in this paper.
Finally, sales volume of the company has continued to experienced huge decline due to lack of secure limit to maintain a fixed market share. This has been partly because of the perpetual deteriorating external environment and partly because of the internal challenges for the company to hostage the contemporary market dynamics. Therefore, the continuous decline in the market share of the Coca Cola has been an attribution of increased competition and ineffective corporate strategies. Besides that, course of implementation of the Company’s strategic planning has been ineffective due to poor expertise resulting from ineffective integrated marketing strategies.