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Coke Zero Swot

In: Business and Management

Submitted By Nesscat27
Words 2166
Pages 9
Coke Zero SWOT Analysis
Monessa Catuncan
Trident University International

SLP 1- Segmentation and Targeting
Product/Brand Analyzed/Corporate Background- Since Coke Zero was first introduced to the US market in 2005, the soda drink has brought numerous accolades and profits to its parent company, Coca Cola. Coke Zero is a low-calorie variation of Coca Cola made to have the “real Coke flavor” without any of the adverse ingredients (The Coca-Cola Company.com, n.d.). While Coke Zero had a rough beginning, the product has since boomed into one of the most successful beverages out of the Coke brands. Coke Zero currently markets under the Coca Cola Enterprises NYSE symbol (CCE) and the product is sold in 130 countries around the world with its strongest markets currently being North America and Europe. The beverage’s sales numbers have increased by double-digits every year since 2006 with no signs of slowing (McWilliams, 2010). According to the last two Coca Cola Company Form 10Ks, Coke Zero saw continued success with its sales increasing by 15 percent in 2010 and 11 percent in 2011. The company’s profit margin and market share has also increased through its newest soda beverage. Since 2005, Coca Cola Enterprise’s profit margin has held around sixty-percent, and its market share averaged about $3.00 per share with a spike above $5.00 in 2010. CCE’s cost structure primarily focuses on variable products such as syrup, artificial sweeteners, and metal for its cans, used to create Coke’s various beverages. When the company saw a spike in these variables in 2011, CCE incurred $800 million in incremental cost to keep production at a sustainable rate. Although Coke still has fixed costs, its cost structure relies heavily on variable costs (2011 Annual Report, 2011). Coca Cola Company supports a wide variety of product lines and brands on top...

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