Case 1-3 the Coca Cola Co

Case 1-3 Coca Cola Co Coca-Cola is an iconic symbol of Americana that has deep roots in our society and a presence throughout the globe. The blot has permeated into clothing, house go along items, electronics and more, with pock recognition and guest loyalty rivaled by none. Throughout its history until the late mid-nineties the Coca Cola Company, based in Atlanta, Georgia, has put all its eggs into the change beverage basket. With scientific advances and an increasingly health advised public, Coca Cola has been forced to modify their product line to embarrass healthier products and recipes.Ingredients in snow products such as senior high school laevulose give Syrup (HFCS/ corn whiskey sugar) and aspartame are now being sold as a healthy alternative to sugar, when they are as unhealthy as sugar if not worse. Although promoted as healthier, independent health and nutrition experts, through look reviewed research, have scientifically proven otherwise. The Coca Cola Company w ill need to continue to resign short-term high make margins for long term growth by re-examining their ingredients as well as further diversifying their product line to adapt to a more sophisticated and in radiation patterned health conscious consumer.The Coca Cola Company was incorporated in 1892 by Asa Candler after purchasing the brand and reflection from inventor, John Stith Pemberton, in 1889 (The Coca-Cola Company, 2012). Throughout its history the company has focused primarily on carbonated beverages with its flagship product, Coca Cola, developed to become one of the worlds most powerful brands (Abramovitch, 2011). In increment to Coke, the majority of revenues are generated from Diet Coke, Sprite and Fanta. Although they consider themselves the kings of carbonation (Cravens, 2009, p. 4, para. 3), in 1960 they began to diversify by purchasing jiffy Maid and Belmont Spring Water Co. in addition to merging with Duncan Foods (The Coca Cola Company, 2005). Cokes primary bu siness model is to manufacture syrup and sell it at high profit margins to a large network of independent bottlers who in turn sell it to retail outlets. Although this model has helped them to march higher profit margins, it also worked to disguise financial troubles from debt and independent bottler relations (Cravens, 2009).Based on deceitful net profit facilitated by swarthy, yet legal, financial finagling, plus extraordinary income from buying and selling bottlers, Coke was able to mold the exaggerated success of the business as exhibited both internally by a dysfunctional finishing cultivated by a lingering false sense of success stemming from their glory years, and externally as a 3,500% increase of stock (Cravens, 2009) which in-turn stayed in decline between 1998 through 2007 (Coca Cola Historical assembly line Prices, 2012).The profit margins attained during the glory years were predictably unsustainable however the decline was not based whole upon questionable busi ness activities, but also changing consumer attitudes. Although consumer certainness between the diet-disease relationships really began to take hold in the 1980s with efforts by the American Heart Association (Teisl, 1999), due to the advent of the internet, by the mid-to-late nineties consumers began to awaken to the health issues related to consumption of excessive sugar in the form of HFCS, and the dangers of aspartame (Fox, 2012).This has resulted in consumers piteous away from sugary, fizzy drinks in favor of drinks with a healthier image like water, teas and other noncarbonated beverages (Soft Drink, 2010, para. 7) and carbonated beverage gross sales declining for the past six years (Fuhrman, 2011). Although the carbonated beverage industry is in decline the industry would rather divert your attention by telling you the big news is not that the soft drinks categorys sales are downbut that Diet Coke surpassed Pepsi for the No. 2 brand in the category (Fuhrman, 2011 para. 3).Digging further, the only reason Diet Coke took the number two spot is because its sales declined less the Pepsis did, and to add to that, this loss occurred in an overall loss of soda market cover globally (Esterl, 2011). Both Coke and Diet Coke have shown decline sales. Why? The public is argus-eyed up to the dangers of HFCS and Aspartame, two key ingredients in regular and diet soft drinks. High levulose Corn Syrup was invented in 1957 and was developed for mass production in Japan between 1965 to 1970 (High Fructose Corn Syrup Production, n. d. ).HFCS is manufactured by extracting corn starch, processing further to produce corn syrup, because adding enzymes to convert glucose to fructose resulting in a mixture anywhere from 42% to 55% fructose (High Fructose Corn Syrup, n. d. ). The danger of corn syrup is due to increased quantity consumed versus pulmonary tuberculosis through natural means by eating fruit or other foods containing fructose (Mercola, 2010). Fructose is a major contributor to a) insulin exemption diabetes b) elevated blood pressure c) elevated triglycerides and elevated beta-lipoprotein bad cholesterol d) epletion of vitamins and minerals and e) cardiovascular disease, liver disease, cancer, arthritis and gout (Mercola, 2010, para. 3). In addition to previously mentioned health issues a study produce in The American Journal of Clinical Nutrition further makes the connection of fructose to weight gain, and insulin resistance syndrome (Elliot, 2002). The body process different types of sugar in different ways. Glucose, a much healthier form of energy, is processed mostly on a cellular level throughout the body, whereas fructose is processed totally in the liver and converts almost immediately into fat (Mercola, 2010).Although the corn syrup industry claims that at most, HFCS contains 55% fructose, independent researchers upon testing actual cans of soft drinks found they contained as much as 65% fructose (and only 35% glucose) (Ka plan, 2010, para. 6). According to the American Diabetes Association, Americans do spend $116 billion on direct medical examination costs related to diabetes, and with diabetes increasing by 176% between 1980 through 2010 (Crude and, 2011), with fructose playing a major factor in the onset of diabetes someone is bound to take notice.Although HFCS has proven to be mordacious to consume, aspartame is worse (Mercola, 2011). Aspartame was created in 1965 by James Schlatter of the G. D. Searle Company, and took over 15 years to gain a very shady approval by the FDA (Mercola, 2011). Many researchers and top doctors have weighed in on the issue saying aspartame causes headache, repositing loss, seizures, vision loss, coma and cancer worsens or mimics the symptoms of such diseases and conditions as fibromyalgia, MS, lupus, ADD, diabetes, Alzheimers, chronic fatigue and depression. (NWV, 2004, para. 4).Board Certified Neurosurgeon, Russell Blaylock, MD wrote a book documenting the connec tion of aspartame to macular degeneration, diabetic blindness and glaucoma (NWV, 2004). Due to the brands value and customer loyalty the company has been able to rely on its core carbonated products, however as their dedicated customer base ages and dwindles they will find it harder to attract new younger consumers who are more aware of the health concerns of HFCS and aspartame. For coke and the soft drink industry to rebound they will have to diversify and lease away from HFCS and aspartame.First they have to get past Cokes Notorious Board (Cravens, 2009, p. 46). References Abramovitch, S. (May 9, 2011). Apple Overtakes Google as Worlds Most Powerful Brand. Gawker (Online). Retrieved from http//gawker. com/5799830/apple-overtakes-google-as-worlds-most-powerful-brand Coca-Cola Company. (2012). Historical Stock Prices. Yahoo Finance (Online). Retieved from http//finance. yahoo. com/q/hp? s=KO&a=00&b=2&c=1962&d=01&e= 21&f=2012&g=m Cravens, D. W. & Piercy, N. F. (2009). Case 1-3 Coca Cola Co, (A). Strategic Marketing. (9th, ed. New York, NY McGraw-Hill/Irwin Crude and Age-Adjusted Percentage of Civilian, Noninstitutionalized cosmos with Diagnosed Diabetes, United States, 19802010. Department of Health and Human Services Center For Disease Control and Prevention. Retrieved from http//www. cdc. gov/diabetes/statistics/prev/national/figage. htm Elliott, S. S. , Keim, N. L. , staring(a) J. S. , Teff, K. and Havel, P. J. (November 2002). Fructose, weight gain, and the insulin resistance syndrome Special Article. The Journal of Clinical Nutrition. 76. 5, 911-922. Retrieved from http//www. ajcn. org/ content/76/5/911. full Esterl, M. (March 16, 2011).Diet Coke Wins combat in Cola Wars. Wall Street Journal (Online). Retrieved February 20, 2012 from http//search. proquest. com. pegleg. park. edu/docview/857249434/13503185B037A9C16B2/20? accountid=28370 Fox, S. (2012). Using the internet for health training is not the exception. KevinMD. com. Retrieved February 20, 2 012 from http//www. kevinmd. com/blog/2010/10/internet-health-information-exception. html Fuhrman, E. (April, 2011). 2011 Soft Drink Report. Beverage Industry. 102. 4, 22, 24, 26, 28 Kaplan, K. (October 26, 2010). High-fructose corn syrup in soda has much more fructose than advertised, study finds.The Los Angeles Times (Online). Retrieved February 19, 2012 from http//articles. latimes. com/2010/oct/26/news/la-heb-too-much-fructose-in-hfcs-soda-20101026 Mercola, J. (January 2, 2010). lollipop May Be Bad, But This Sweetener is Far More Deadly. Mercola. com. Retrieved February 19, 2012 from http//articles. mercola. com/sites/articles/archive/2010/01/02/highfructose-corn-syrup-alters-human-metabolism. aspx Mercola, J. (November 6, 2011). Aspartame is, by far, the most dangerous substance on the market that is added to foods. Mercola. com. Retrieved February 19, 2012 from