Coca Cola's classic coke is their cash cow product, having been sold for over 100 years to over 1 billion people globally. Sales of classic coke have risen 15% since 2004 and it remains one of their primary products. Diet Coke is classified as a dog, as its sales have declined 7% in the last quarter and it is being reformulated in an attempt to boost sales. Monster energy drinks, which Coca Cola has a partnership with, are considered a star as sales have risen nearly 10% annually and the energy drink market is forecasted to continue strong growth globally. Minute Maid juice is seen as a question mark as despite $13.88 billion in revenue, it has not achieved strong

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Science and Business Assignment #2- Coca Cola Company
By: Sergio Gallarday
Date: Monday, November 9th, 2015
Cash Cow: Coca Cola Company has successfully established a cash cow with the production of
their classic coke. Being the sole start-up invention it has been around since 1886 and still sells
to this day to over 1billion people globally (World of Coca Cola, 2015). This product has become
world known and has been represented in songs and commercials to this day. Starting off as a
fountain drink only up until 1915, when bottling of the product became available and it has since
then boomed (World of Coca Cola, 2015). Having undergone over 100 years of marketing and
lucrative endorsement the product is now world known and one of the world’s most known brand
because of the drink. This product is still selling and company is simply just redesigning the
bottle to attract more variety and appeal (Coca Cola Journey, 2015). This product has been over
the decade advertised for all people showing no specific consumer market as their slogans are
vague and open for those to associate with family and fun (Richardson, 2013). In the past Coke
spent billions of dollars trying to implement this idea into peoples’ minds but now this
advertising has carried from generation to generation and Coca Cola is at the point of enjoying
their number one product cash in. This product has even been known for being available in
countries without sanitary water and beverages and is sometimes in greater supply of any other
drinks (Richardson, 2013). The classic Coca Cola sales have risen by 15% percent since 2004
and are still continuously high as illustrated in the
chart below (Ferdman, 2014).
This chart has shown how the “original” coke
product of the years has always increased while it’s
main competitors have declined (Ferdman, 2014).
Coke is Coca Cola Company’s cash cow because of the fact that even though it’s been
around for over a decade, it is still the primary selling beverage for the company worldwide.

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Sales have even increased by 2% since last year for the beverage as the company is mainly
enjoying the success of the product (Trefis Team, 2014). This being the reason why Coca Cola is
successful in the first place, the money attained from the sales of the the original Coke have lead
to further ventures that now make the company a multi-billion dollar company. The original
recipe has made the company the millions it needed to expand and buy out other brands and has
been the key piece in the company’s uprising. Advertising of the product has been consistent
throughout as not so much heavy investing is needed to convince the buyer to consume the
product, as the idea just needs to be more refreshed into the consumers mind. Today, Coca Cola’s
advertising of the company name is automatically associated with the original recipe and is
world known for being very successful. Having been constantly rising in sales for over a decade,
the product has yet to pass it’s prime and will remain a symbol of happiness, family and fun
(Richardson, 2013). The product can be seen as a timeless product that has changed the soda
drink industry and will continue to generate Coca Cola company excess revenue in the future.
Dogs: Diet Coke has become one of Coca Cola dying products as it has been on a decline for the
past 5 years and has even recently dropped in sales by 7 % in it’s last quarter this year (O’Reilly,
2015). The product has established a fixed customer base that has kept the product along but
Coca Cola company is now planning to terminate the original recipe for Diet Coke and replace it
with a newer one in order to attempt to reintroduce the product (Schultz, 2015). This product
would be classified as a Dog since the product itself is being altered in ingredients in order to
create a new one. The problem with Diet coke has always been Aspartame, which studies have
shown to have been connected with cancer, the company has been having a declining rate of
sales of this product ever since.
(O’Reilly, 2015)
(O’Reilly, 2015)

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This graph above shows how Diet coke has been in a downward trend for the past 5 years.
Having been selling for 9.4 billion to 8.8 worldwide. This product is past it’s peak but still has a
strong 8.5% control of the soft drink market worldwide. The product is just going to keep
becoming more and more obsolete that Coca Cola will either reintroduce a modified new version
or replace with Coke Zero.
The Diet Coke appears to be the Dog in this company as sales have been on a decline for
a while now (Schultz, 2015). Product is now being re-evaluated to attempt to fix the dietary
option for coke and therefore the product seems to be barely hanging on to customer appeal.
Futile attempt at trying to advertise the product have made the company spend a lot of money on
a product that just isn’t doing as good as it previously was (O’Reilly, 2015). The company has
spent recently over $35.8 million dollars in an attempt to aid the ailing product but have not had
positive results (Schultz, 2015). The company is just realizing that the diet soda business is
dying down for the month by of January by 7% for the Diet Coke and should in future make this
product go away and reintroduce a new diet form of Coke (Schultz, 2015). I would say this
product is more dog than question mark as the product has been invested in and it had it sales,
but the content of the product needs to be re-evaluated and changed in order to be successful
once again. This could be just a trend that makes Diet Coke obsolete while Coke Zero rises. A
form of adaptation to the market as artificial sweeteners like Aspartame aren’t seen as healthy
ideal options (Schulz, 2015). With ongoing obesity and growing awareness of cancer cause
agents, Diet Coke looks like it’s heading towards the end of it’s life span.
Star: Coca cola company does offer it’s variety of energy drinks that are now beginning to sell
in large quantities. From partially owning Monster Beverage energy drinks to NOS and Burn the
company has been venturing into the recently booming energy drink market (Bailey, 2015). In
just 15 years the energy drink industry has grown over 5000% in the U.S and is still predicted to

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increase in the near future (Ferdman 2014). Coca Cola has taken the initiative by purchasing part
of Monster energy in order to captivate the product’s sales since it is the second largest energy
drink company and owns over 30% of the energy drink market. Energy drinks are forecasted to
grow world wide and even in the U.S are project to be selling $21.5 billions worth in 2017
compared to 2012 worth of $12.5 billion (Priyank, 2013). Monster sales have risen last year by
9.7% and with Coca Cola Company distribution and connection the product will continually rise
(Bailey, 2015). As depicted in the graph below Monster Beverage has been on a consistent
increase for the past 5 years and is forecasted for even more (Bailey, 2015). Coca Cola company
has partnered up with Monster Beverage corporation as they now control Coca Cola’s energy
drink sector. The partnership agreement was finalized this year and Coca Cola company can be
expecting energy drink sales to increase gradually.
(Bailey, 2015)
This product, can currently be seen a potential star. The product has shown sales increase
in just a short amount of time. With forecasted sales looking to double, the company sees this
product become one of their new cash cows. With Monster beverage partnership with Coca Cola,
the product will gain more distribution networks and will have a global growth as the product
become available at a large scale, world wide. Once the product has sold all over it will
eventually gain leadership of the energy drink market due to Coca Cola’s expertise. With their
Red bull competitor only being insignificantly bigger right now, Monster beverage has leeway to
become the top leader in energy drinks in the foreseeable future (Bailey, 2015).

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The Monster energy drink has been booming even before Coca Cola Company had
purchased 17% of Monster Energy corporation and gave Monster the leadership in their energy
drink portfolio.This rising star is on pace to soon become Coca Cola’s newest cash cow. Business
has been booming for Monster drinks as had $3.1 billion dollars worth of sales in 2013, and had
established over 39% of the energy drink market (Caffeine Informer, 2015). In comparison to
1999, the market has times by over six hundred and twenty percent (Ferdman, 2014) This all
being before Coca Cola partnered with them, they had been only second to Red Bull Energy
drinks and only had 4% less market control than them (Caffeine Informer, 2015). The energy
drinks key to success appears to have come through major sponsorship effort and now with Coca
Cola’s expertise and wealth they could expand beyond their current state and are slated to
overcome Red bull energy (Caffeine Informer). The star looks like a potential cash cow as they
will gain market dominance and will therefore generate sales over 3 billion dollars, and have
plenty of excess revenue that Coca Cola will gain. Product has yet to peak and is on pace to
continue to expand before growth looks to slow. (Ferdman,2014)
The energy drink industry appears to be scheduled to overcome coffee consumption in
the U.S in the next five years as they are already about only 3 billion dollar difference in the two
market currently (Ferdman, 2014). The energy drink market is trending in the U.S and business
appears to be rising as company is still growing with potential to become the most dominant
caffeine drink. An evident example of more rapid growth due to Coca Cola’s involvement is the
selling of Monster beverages in McDonalds Restaurants (Esterl, 2015). With Mcdonalds being a

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globally accepted company, with over 14, 000 stores in the U.S alone, Monster’s partnership
with Coca Cola has opened doors to distribution with one of the most globally known companies
in the world (Esterl, 2015). With Coca Cola’s distribution networks, and advertising expertise
and funding Monster will be able to exponentially increase sales and become a cash cow in the
future.
Another of the company’s star is the Fuze Tea brand. A ready to drink brand of tea
launched in 2012 and has now expanded to 40 different markets across the world (Moye ,2015).
The brand has recently joined Coca Cola company’s 1 billion dollars worth in sales group of
brands and the company is seeking to make it a well known brand as they plan to expand their
tea portfolio (Sure Dividends, 2015). This product is in the star stage due to the fact that it is
currently at is position after a exponential growth for the past three years only. The brand now
joins the top three ready to drink tea companies with billions in sales (Moye, 2015). Company
will need to invest heavily into it to become a potential cash cow in the near future. Potential
investments are scheduled for 2015. Plans are for the brand to double it’s portfolio plan by next
year (Moye, 2015). The brand is up and coming with over 30 different products with the brand is
on pace to make Coca Cola company a substantial amount of profit (Moye, 2015). Not at the
cash cow point since Coca Cola is planning to do intensive market advertising launch in 2015.
With the intensive investment of advertising on the product the company hopes that the product
will become a potential cash cow. It can be seen as a star due to it’s rapid growth and success
thus far.
Question Mark: Minute Maid being part of Coca Cola company’s non-soda beverage has been
seen as a Question mark in the company line of products. The Minute <aid company was
originally bought out by Coca Cola in 1960 and has since yet to peak (Ryan, 2012). Juice market
has risen 8% in worldwide volume, not as drastic as other venture’s of Coca Cola company, this
product mix has been steady for the past 50 years and is still in question whether it will gain
global dominance (Sure Dividends, 2015). Being known as one of Coca Cola company first
ventures, it was like a stepping stone to make Coca Cola company one of the best non-alcoholic

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beverage companies (Ryan, 2012). This company is a subsidiary of the Coca Cola company.
Having most of it’s success in China the brand has generate revenue of $13.88 billion (Trefis
Team, 2014). With the expectation of middle class to rise in China to 1 billion by 2020, the
company aims to double their revenue in the juice market (Trefis Team, 2014). However this will
need intensive marketing to capture all of the Chinese market. This product isn’t quite a star as it
has taken over 50 years to get to where it is right now. The product mix has had booming success
with a certain product in China but not all over the world. This would be in question as it isn’t
assured this brand is going to become a global presence or it might require a lot more investment
to become more globally acceptable.
This product can be seen as a question mark for the company as it has had slow growth
over the past 50 years. It may be generating $13 billion in sales but the product has not peaked as
the brand has gained global recognition like Coca Cola’s other brands (Trefis Team, 2014). With
most of it’s success coming from China, the company should seek maximizing it’s development
and advertisement into other countries. Not being one of Coca Cola’s main development ideas,
the company has been making decent profits of Minute Maid thus far, but it does have a chance
of becoming either a dog or a star, depending on the company’s involvement. The product has
shown signs of growth over the years, but does not own a large piece of the companies share in
terms of sales generated in order to make anything more than a question mark for the company.
Company is yet to question whether investing in expanding this brand worldwide will be a
needed risk or whether it should let it take it’s course of action and become a Dog.
Upon further review of the company’s history and state, the company appears to be
heading towards the dog stage soon. The had previously been the top selling orange juice
company in the U.S in 1965 but ever since then the company has been second to Tropicana
Product Inc. (Funding Universe, n.d.) For a company to become a star they must have huge
growth and have must have established leadership in the market. The brand isn’t the top selling
brand as it has been behind Tropicana Product Inc since 1965. Minute Maid holds a significant
24% of the market but Tropicana has 33% ( Funding Universe, n.d.). The company has not
maintained leadership and has been shadowing Tropicana’s success as of recently. Therefore, the
company is more likely to become a dog in the near future as it isn’t the top leading brand and

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has taken over 50 years to grow insignificantly overseas. Compared to it’s competitor the Minute
Maid has a lower market share and doesn’t appear like the company is on track to fight back
against their main competitor. The company exited the “orange juice wars” that since 1973,
Tropicana has established dominance and has fought just to survive against them (Funding
Universe, n.d.).The orange juice industry is also facing a decline in the U.S as of recently, with
increasing prices of oranges, lower demand for them and the citrus-greening disease (Trefis
Team, 2015). In just the last decade, orange prices have rose 34% and sales of fruit beverages
have declined for the 5 consecutive year by 3% (Trefis Team, 2015). This increase in cost for the
materials and lack of demand will cause the brand to face and even further decline in the future.
The brand is on track to become a dog as sales begin to decline and prices rise, while company
might try to invest in the brand recovery, which will aid in keeping the brand barely profitable.
The economy is now changing as people are moving from sugar induced fruit juices and are
seeking out sports drinks, ready to drink tea and coffee (Trefis Team 2015). The market is
currently shifting preference and in the future Minute Maid will have to either invent something
new or will eventually fade into the background, therefore the brand is most likely to become a
dog rather than a star in the potential future.

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