The paper "Economic Issues of Coca-Cola Amatil " is a perfect example of a macro and microeconomic case study. The main issue raised in the media report is to show the attempt made by the Coca-Cola Amatil in making their soft drinks brands affordable. The coca-cola Amatil has launched a 250 millilitre can that will be sold in the supermarket fridges and petrol outlets at a price, not more than $2 (Sue 2014). The CCA and Coca-Cola South Pacific need to increase their sales. They believe that the small cans of Fanta, Sprite, and coca-cola will increase the volume of sales and win the trust of many customers in Australia.
According to Barry O’ Connell, the consumers have increasingly been asking for the smaller sized cans that are more appealing and cost-effective. CCA is the main producer of soft drinks in Australia; it produces over 60% of the soft drink in the Australian market. The company has been faced with the fall in sales volume and earnings in recent years since its prices are very high as compared to that of the competing companies like Schweppes (Sue 2014). Possible impacts The CCA hopes that the 250ml will increase its sales and persuade the owners of different stores and fast-food outlets to purchase from their wholesale divisions.
Jeff Rogut believes the new cans will enable smaller retailers to compete with the supermarkets by selling cheaper products (Sue 2014). The Main Stakeholders Impacted By The Issue The key stakeholders that will be influenced by the issue are the Coca-Cola Amatil Company, the consumer and other Competing companies. The new Coca-Cola cans will cause a significant effect on these stakeholders.
The Coca-Cola Amatil company is the main stakeholder; their primary aim of producing the new brand is to maximize profits. They also want to improve their sales and win the trust of many customers in Australia. The company hopes that the new soft drink will increase their sales and make them compete effectively with the other companies (Sue 2014). The consumers are also stakeholders in the issue. They are the target market. The Coca-Cola Company is targeting the customers in order to sell their products. With the low prices of the soft drink, the consumers are compelled to buy the soft drink.
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