INITIAL COMPANY RESEARCH Name: Kendyl White Date: July 3, 2016

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INITIAL COMPANY RESEARCH Name: Kendyl White Date: July 3, 2016 INITIAL COMPANY RESEARCH Name: Kendyl White Date: July 3, 2016 COMPANY: Company Name: Sprite Parent Company: The Coca-Cola Company The Coca-Cola Company is an American corporation, manufacturer, retailer and marketer of nonalcoholic Beverages founded and headquartered in Atlanta, Georgia. Asa Griggs Candler introduced the Coca-Cola soda, which the company is Best known for, in 1886 and that was the start of a Beverage empire. The Coca-Cola Company now has 26 Brands, over 123,200 employees and Muhtar Kent is the current CEO (The Coca-Cola Company, 2016). • Net Income: Coca-Cola had a $7.35 Billion Net Income for the 2015 Fiscal Year. • Net Profit Margin: Coca-Cola’s Net Income divided By their Total Revenue of just under $44.3 Billion pushed their Net Profit Margin to 16.6% for the 2015 Fiscal Year (Yahoo, 2016). • Debt to Assets Ratio: Coca-Cola’s Total LiaBilities came to $64.5 Billion while their Total assets equaled over $90 Billion to Bring their DeBt to Assets Ratio to 71.6% for the 2015 Fiscal Year (Yahoo, 2016). • Year over Year: In early January of 2012, The Coca-Cola Company had a closed stock of $34.47 and that stocked increased each January until 2015 where it had a closed stock of $43.03. In early January of 2016, the closed stock sat at a decreased value of $41.51, but currently sits at $45.12 at mid-year (Yahoo, 2016). • Compare Stock Performance to Market Index: While The Coca-Cola Company’s stock has risen well in the last five years, aBout midway through 2013, their stock fell Below the market index. Since that time, Coca-Cola has come close to almost getting Back on top, But ultimately has failed to reach that mark to this date. (Yahoo, 2016). Sprite is a lemon-lime soda created By the Coca-Cola Company in Germany in 1959 as part of Coca-Cola’s Fanta Brand. Fanta Klare Zitrone was later introduced in the United States as Sprite in 1961. It’s known for it’s original taste, the green, blue and silver can and the green bottle that it is served in. PRODUCTS: Sprite is a clear in color, lemon-lime flavored, caffeine-free soda that comes in different variants such as diet, tropical, cranberry, cherry and orange to name a few. The Coca-Cola Freestyle machine allows consumers to add up to seven different flavors to Sprite or Sprite Zero such as vanilla, strawBerry, grape, peach and others. 1 2 Product Line A: Soda Product Example A: Sprite Product Line B: Soda Product Example B: Sprite Zero Product Line C: Soda Product Example C: Sprite LeBron's Mix TARGET MARKET: Product Example A: Sprite Geographic: Worldwide Demographic: African American, Male and Female, Ages 12 to 29, Low to Middle Income Psychographic: Enjoys lemon-lime flavors and enjoys mixing drinks. Benefits Sought by Consumer: A true lemon-lime taste. A good base and mixer for any fruit-flavored drink Usage Rate of Consumer: Heavy User Product Example B: Sprite Zero Geographic: Worldwide Demographic: Caucasians, Female, Ages 21 to 36, Middle Income Psychographic: Health conscious soda drinkers Benefits Sought by Consumer: Similar Sprite flavor, But with zero sugar and zero calories, Mentally okay with drinking soda Usage Rate of Consumer: Heavy User Product Example C: Sprite LeBron's Mix Geographic: North America Demographic: African American, Male, Ages 16 to 26, Middle Income Psychographic: Fans of LeBron James, People who enjoy the Coca-Cola Freestyle Benefits Sought by Consumer: The same flavor of Sprite that their favorite BasketBall player enjoys. A different taste than the traditional Sprite, But with the same Sprite flavor. Usage Rate of Consumer: Heavy User 2 COMPETITION: Competitor 1: Jones Soda Co Competitor’s Product: Lemon-Lime Competes with Product A: Sprite Competitor 2: PepsiCo Competitor’s Product: Diet Mist Twst (Diet Sierra Mist) Competes with Product B: Sprite Zero Competitor 3: Dr Pepper Snapple Group Competitor’s Product: Cherry 7 Up Competes with Product C: Sprite LeBron's Mix Company Success Company #1: The Coca-Cola Company, $7.35 Billion Net Income for 2015 Fiscal Year. Company #2: PepsiCo, $5.45 Billion Net Income for 2015 Fiscal Year. Company #3: Dr Pepper Snapple Group, $764 Million Net Income for 2015 Fiscal Year. Company #4: Jones Soda Co, -$1.12 Million Net Income for 2015 Fiscal Year. SUMMARY: Based on my research on Sprite and the Coca-Cola Company, although the drinking of soda has declined in North America and worldwide, Both the company and the parent company are still on top in soft drink Business. Every list you look up on the Best lemon-lime sodas, Sprite sits at top of the list. While the second most successful lemon-lime soda had to reBrand itself from Sierra Mist to Mist Twst, Sprite has remained the same from the Beginning, while just adding different variants throughout time to keep up with today’s generation. Sprite has remained successful throughout time Because it keeps up with the current trends; they’re fortunate to have one of the Best marketers in the world, the Coca-Cola Company. For example, Sprite and the world’s Best BasketBall player, LeBron James have Been in partnership since he came into the NBA in 2003. Since that time, Sprite has used LeBron on numerous advertisements and has even gone on to give him his own signature soda twice, Sprite 6 Mix and Sprite LeBron's Mix. They get outside of sports as well, collaBorating with some of today’s most popular hip-hop artist such as Drake and J.Cole to print their lyrics on the side of their cans. My prediction for Sprite is that they’ll stay on top of the lemon-line soda market in part due Because Both them and the Coca-Cola Company are estaBlished, recognized and the best at what they do. 3 4 REFERENCES: Brands: The Coca-Cola Company. (2016). Retrieved from http://www.coca- colacompany.com/Brands/the-coca-cola-company KO Balance Sheet | Coca-Cola Company (The) Common Stock - Yahoo! Finance. (2016). Retrieved from http://finance.yahoo.com/q/Bs?s=KO Balance Sheet KO Income Statement | Coca-Cola Company (The) Common Stock - Yahoo! Finance. (2016). Retrieved from http://finance.yahoo.com/q/is?s=KO Income Statement KO Interactive Stock Chart | Yahoo! Inc. Stock - Yahoo! Finance. (2016). Retrieved from https://finance.yahoo.com/echarts?s=KO Interactive#{"range":"5y","allowChartStacking":true} Sprite Brings Back Popular Flavor Created With LeBron James. (n.d.). Retrieved from http://www.coca-colacompany.com/press-center/press-releases/sprite-brings-back- popular-flavor-created-with-lebron-james Sprite Consumer Data and Demographics | InfoScout.co. (2016). Retrieved from http://infoscout.co/brand/sprite/ Sprite Ingredients and Nutritional Information. (n.d.). Retrieved from http://www.coca- colaproductfacts.com/en/coca-cola-products/sprite/ Stewart Scott-Curran Explains How To Design For Different Demographics. (2015). Retrieved from http://Blog.creativelive.com/stewart-scott-curran-sprite-design/ Sprite Zero Consumer Data and Demographics | InfoScout.co. (2016). Retrieved from http://infoscout.co/brand/sprite_zero/ The Legacy of Sprite and the Color Green. (n.d.). Retrieved from http://www.coca- colacompany.com/stories/primary-color-why-sprite-has-sported-green-since-1961 4 An Environmental Analysis for Sprite Kendyl White Full Sail University Project & Portfolio II: Business and Marketing July 17, 2016 The STEEPLE Analysis SOCIOLOGICAL: Consumers of all demographics vote Sprite at the best lemon-lime soda on the market, which is who the company cares about the most. Sprite has a variation of is product for everyone from original to the multiple flavors you can create with the Coca- Cola freestyle machine (Ranker.com, 2016). TECHNOLOGICAL: Sprite continues to work with what’s trending today to stay on top and that includes athletes and artists. Sprite has had LeBron James on their team since 2003 and they continue to work with popular artists. Last year, Sprite introduced their Obey Your Verse campaign with Drake, Nas, Biggie and Rakim. This year, they revamped it with more popular artists including J.Cole, Tupac and Missy Elliot (HipHopDX.com, 2016). ECONOMIC: Coming in October, workers who are paid salary and make under $47,500 per year, which is middle income, will either get a raise or get paid for overtime, which will put more money in the pockets of the consumers in Sprite’s target audience. This creates an economical growth that puts Sprite in the position to make more money as well (CNSNews.com, 2016). ECOLOGICAL: Sprite uses 100% natural flavors in their regular version of the product. Even thought it’s still a soda, being able to advertise that is a major selling point to consumers (Coca-ColaProductFacts.com, 2016). POLITICAL: Coca-Cola is headquartered in Atlanta, Georgia and Sprite has partnered with the local NBA team, the Hawks to create Sprite Night in the arena. Fans receive unlimited Sprite with their ticket purchase. It’s a great way to stay on top in your main location (NBA.com, 2015). LEGAL: When it comes to product safety, the Coca-Cola Company uses KORE, Coca-Cola Operating Requirements, to ensure such consistency and reliability in this process. You wouldn’t want to send out a bad product to a consumer in today’s word because it could damage your company (Coca-ColaCompany.com, 2012). ETHICAL: Coca-Cola and Sprite’s three main goals consist of refreshing the world, inspiring moments of optimism and happiness and creating value and making a difference. They also preach team inside of the company to create the best products for consumers (Coca- ColaCompany.com, 2016).
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