Case 1-3 the Coca Cola Co

pillow slip 1-3 coca sens Co Coca-Cola is an iconic symbol of Americana that has deep grow in our society and a presence throughout the globe. The scrape has permeated into clothing, dwelling house items, electronics and more, with brand recognition and customer loyalty rivaled by none. Throughout its storey until the late 1990s the Coca Cola Company, based in Atlanta, Georgia, has ensnare all its eggs into the change beverage basket. With scientific advances and an increasely wellness conscious public, Coca Cola has been forced to modify their product ocellus to include healthier products and recipes.Ingredients in Coke products such as spicy Fructose feed Syrup (HFCS/ corn lolly) and aspartame are now being sold as a healthy alternative to scraping, when they are as unhealthy as sugar if not worse. Although promoted as healthier, independent health and nutrition experts, through peer reviewed research, pick out scientifically turn up otherwise. The Coca Cola Comp any go out need to continue to sacrifice short-run high make headway margins for long term growth by re-examining their ingredients as well as further transfigureing their product line to adapt to a more sophisticated and informed health conscious consumer.The Coca Cola Company was incorporated in 1892 by Asa Candler after purchasing the brand and formula from inventor, John Stith Pemberton, in 1889 (The Coca-Cola Company, 2012). Throughout its history the keep company has focused primarily on carbonated beverages with its flagship product, Coca Cola, developed to plump one of the worlds most powerful brands (Abramovitch, 2011). In asset to Coke, the major(ip)ity of revenues are generated from sustenance 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 Minute Maid and Belmont Spring Water Co. in addition to merging with Duncan Foods (The Coca Cola Company, 2005). C okes primary commercial enterprise model is to manufacture syrup and sell it at high simoleons margins to a large network of independent bottlers who in turn sell it to retail outlets. Although this model has helped them to show higher profit margins, it also worked to disguise financial troubles from debt and independent bottler relations (Cravens, 2009).Based on baseless earnings facilitated by shady, yet legal, financial finagling, plus extraordinary income from buying and selling bottlers, Coke was able to exploit the exaggerated winner of the business as exhibited both internally by a dysfunctional polish 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 Stock Prices, 2012).The profit margins attained during the glory years were predictably unsustainable however the decline was not based only upon questi onable business activities, but also ever-changing consumer attitudes. Although consumer consciousness between the diet-disease relationships really began to take hold in the eighties with efforts by the American Heart Association (Teisl, 1999), due to the advent of the internet, by the mid-to-late 1990s consumers began to awaken to the health cores related to consumption of excessive sugar in the form of HFCS, and the dangers of aspartame (Fox, 2012).This has resulted in consumers moving away from sugary, fizzy drinks in favor of drinks with a healthier image like water, teas and other uncarbonated beverages (Soft Drink, 2010, para. 7) and carbonated beverage sales declining for the one-time(prenominal) six years (Fuhrman, 2011). Although the carbonated beverage industry is in decline the industry would rather frisk your attention by telling you the big news is not that the loony drinks categorys sales are downbut that Diet Coke surpassed Pepsi for the nary(prenominal) 2 bra nd 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 everyplaceall loss of soda merchandise share globally (Esterl, 2011). Both Coke and Diet Coke have shown decline sales. Why? The public is waking up to the dangers of HFCS and Aspartame, two spot ingredients in regular and diet soft drinks. High Fructose 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, then adding enzymes to convert glucose to laevulose 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 ingestion through lifelike means by eating fruit or other foods containing fr uctose (Mercola, 2010). Fructose is a major contributor to a) insulin resistance diabetes b) elevated snag pressure c) elevated triglycerides and elevated LDL bad cholesterol d) epletion of vitamins and minerals and e) cardiovascular disease, liver disease, cancer, arthritis and urarthritis (Mercola, 2010, para. 3). In addition to previously mentioned health issues a study create in The American journal of Clinical Nutrition further makes the connectedness 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 urbane mostly on a cellular level throughout the body, whereas fructose is processed completely in the liver and converts almost immediately into plenteous (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 a s 65% fructose (and only 35% glucose) (Kaplan, 2010, para. 6). According to the American Diabetes Association, Americans do throw $116 billion on direct medical 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 dangerous 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 compliment by the FDA (Mercola, 2011). Many researchers and top doctors have weighed in on the issue saying aspartame causes headache, memory 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 c oncord documenting the connection of aspartame to macular degeneration, diabetic blindness and glaucoma (NWV, 2004). Due to the brands rank 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 depart 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 get 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 earths 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). slipperiness 1-3 Coca Cola Co, (A). Strategic Marketing. (9th, ed. New York, NY McGraw-Hill/Irwin Crude and Age-Adjusted Percentage of Civilian, noninstitutionalized Population with Diagnosed Diabetes, United States, 19802010. Department of Health and Human Services marrow For Disease Control and Prevention. Retrieved from http//www. cdc. gov/diabetes/statistics/prev/national/figage. htm Elliott, S. S. , Keim, N. L. , Stern 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 fighting 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). use the internet for health information is not the exception . KevinMD. com. Retrieved February 20, 2012 from http//www. kevinmd. com/blog/2010/10/internet-health-information-exception. hypertext markup language 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). Sugar May Be Bad, But This Sweetener is removed 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