The soft drink industry has for a long time controlled a large portion of the American diet industry. Coca Cola Company is one of the major players in this sector. The case study shows how the industry’s growth is being threatened by the customer’s attitude towards the beverages. It highlights the issue that is brought about by diabetes, obesity and other weight-related problems to the industry.  This is a significant concern to Americans, and they have become wary of the genesis of these problems. Even though these lifestyle diseases have complicated causes, soft drink industries have suffered a more substantial portion of the blame (Solomon, Marshall & Stuart, 2017). Coca Cola Company is one of the firms affected, and its sales have significantly reduced. Its consumers have raised health concerns on the artificial sweeteners that are used in the drinks, and most of them are now embracing water instead of the soda.

The coca cola company is therefore faced with a major dilemma in their bid to maintain their market share. With the many health concerns that are being raised by public health officials, most of its consumers are now moving away from the use of their soft drinks which is significantly affecting its sales. However, the industry has survived the soda taxes that were proposed by politicians, and the company may be tempted to sit back and wait to see whether the situation may change. Another alternative that the firm may seek is to move away from the soft drink business and focus on something else. By doing this, the company may risk losing its entire customer base and may be hard to establish another brand in the market. If the company decides to stay put and wait for the situation to change, it may also end up losing more of its customers due to the health concern that they are currently facing.

The Triple-Bottom-Line Orientation

The triple-bottom-line orientation is a new way of measuring the success of a company. Initially, firms were more concerned about how much profit a company can make. However, for an institution to grow in an industry, there are three factors from the triple-bottom-line orientation, that needs to be considered. The company should look at the financial profits that its stakeholders are receiving, the social welfare of the community that it operates in and ensuring that their business operations do not damage the environment (Slaper &Hall, 2011).

In a bid to salvage themselves from the drawback in sales, Coca Cola Company needs to employ the triple-bottom-line orientation to ensure that they remain relevant in the market. From the financial bottom line, the firm will, therefore, need to diversify its products and not solely rely on soda (Kline, 2017). This will ensure that they still make sales from a variety of other products despite the sales of sodas going down.

From a social front, the company should ensure that their employees are offered good packages. It should ensure that its workers have a good health cover, a safe working environment and participating in empowerment programs such as organising football tournaments and medical checkups to the community. In doing so, the firm will be able to win the confidence of the public and at the same time grow its brand awareness.

On environmental conservation, the firm should work hand in hand with the community through corporate social responsibility programs to ensure that the environment is conserved through the planting of trees, cleaning of cities and protecting water towers. The company will also need to ensure that their factories treat their wastes and ensure that harmful residues are not released to the environment.

Increasing Coca Cola Market Share

To increase a firm’s market share, a company needs to establish a value proposition that the customers can relate to and something that can help solve their problems. A value proposition is a promise that a company gives to the public to make their products attractive to them. For coca cola company to increase its sales, there needs to be a unique value proposition that will be appealing to the customers and the society at large. One of the value propositions that I would introduce to the company will be to identify a course in the society and incorporate it in the soft drinks. We will partner with the community and brand out packaging materials in such a way that we promise our customers that by buying a bottle of our sodas, they will be contributing to a course that they can relate with.

Another way of the value proposition that the coca cola company can use to increase its profits is by introducing healthier products that have less calories. These will be a substitute for those customers that have concerns over their health from taking the coca cola drinks. The company’s sales are going down because the drinks have raised some public health concerns and thus by introducing a new more healthy drink, the firm will be able to attract their old customers that had shied away.

The drinks can also be redesigned, and its ingredients are reorganised in such a manner that the artificial sweeteners are reduced and therefore significantly reducing the amount of calories in the drinks. The company will then run an awareness campaign to inform their customers of the new changes in its ingredients which will, in turn, win the confidence of their customers.

 
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