The Influence of Healthy Consumption Trend on Coca-Cola

Marketing Strategy

Yiying Zhang

Business Management, Singapore Institute of Management, Singapore, 999002, Singapore

Keywords: Innovation, Sustainability, Health.

Abstract: The Coca-Cola Company was established in 1886 and it ranks among the leading companies that deal with

the production of brands of beverages which include more than 200 brands that are sold in more than 200

countries. Through such strategies as product differentiation, sustainability, and innovation, the company has

continued to remain relevant in the market.However, the health effects of its tremendously popular sweetened

products have been an issue, hence it has responded with non-sweet products like Coca-Cola Zero Sugar and

Diet Coke. For environmental concerns, the company has focused on programs such as “World without

Waste”, in recycling, and other efforts that have been made towards sustainability. However, the organisation

has some threats such as competition, changing consumer awareness regarding health and obesity, and

regulations. It should grow its products with health benefits, increase focus on sustainability, embrace e-

commerce, and partner with wellness companies. These aspects and the subsequent strategies of Coca-Cola

to enter the emerging markets reveal the corporate intentions to maintain its dominant market position while

adapting to the new-age consumer and ecological imperatives.

1 INTRODUCTION

Coca Cola was founded in Atlanta Georgia in 1886

and has been in existence for 137 years. This mission

states “refreshing the world because it is different”

and has made the company the largest beverage

company globally (Chabrandmanagement, 2013).

Coca Cola Company has over 200 brands available in

over 200 countries and regions and is comprised of

some famous brands like Sprite, Minute Maid, Fanta

and Dasani (Chung et al., 2021). In response to

changing consumer preferences and an increasing

focus on healthy lifestyles, Coca-Cola has expanded

its offerings to include no-sugar options like Coca-

Cola Zero Sugar and Diet Coke, as well as low-

calorie products, aligning with the broader shift

towards healthier consumption choices.

In response to changing consumer preferences and

the growing focus on healthy lifestyles, Coca-Cola

continues to prioritize sustainable development

alongside product innovation. This commitment

reflects the company’s awareness of shifting market

demands while contributing to broader environmental

goals. The company has undertaken social

responsible programs to address some of the

environmental issues, including the “World without

Waste” program, where it is relentlessly working to

eliminate plastic waste, while its beverage bottles are

100% recyclable and made sustainably

(Hafizah Adnan and Sayadi, 2021). The constant

market presence and unchallenged brand voice of

Coca-Cola has placed the company among the most

valuable and recognizable in the world. The latter can

be attributed to constant striving to meet current

consumer needs, develop relevant products and

remain committed to sustainability.

2 SWOT ANALYSIS OF

COCA-COLA

Coca-Cola market position involves evaluation of

internal and external environments that comprise both

the strengths and weaknesses of the company as well

as opportunities and threats which is discussed below:

2.1 Strengths

Coca-Cola’s greatest advantage is the tremendous

brand power it holds in the market. Coca cola has been

of the largest brands known all over the world and it

has its operations in almost all the countries of the

globe (Jamshidifarsani et al., 2019). They are sold

Zhang, Y.

The Inﬂuence of Healthy Consumption Trend on Coca-Cola Marketing Strategy.

DOI: 10.5220/0014074100004942

Paper published under CC license (CC BY-NC-ND 4.0)

In Proceedings of the 2nd International Conference on Applied Psychology and Marketing Management (APMM 2025), pages 68-73

ISBN: 978-989-758-791-7

practically in every country, in effect catering to a

diverse group of customers from all around the globe.

Another major strength is the availability of a large

sales network where products are available through

various outlets (Kottacheruvu, 2023). Coca-Cola

products are sold in supermarkets, restaurants and

through vending machines and any consumer can

easily purchase it. In addition, Coca-Cola has well-

established distribution networks, which enable the

company to offer its products to consumers around the

globe.

Coca cola products are almost available worldwide

and have a presence in many outlets such as stores,

restaurants, and vending machines. For instance,

while Coca-Cola is available in over 200 countries,

more than 3.9 million vending machines which are

distributed worldwide indicate expansion (Lovett et

al., 2020). This immense global network of operations

gives Coca Cola a competitive advantage in that it can

easily expand to new markets thus cementing its

position in the beverage market. The company’s

innovative capabilities also support its strengths,

especially in relation to shifts in consumers’ needs and

preferences (McMaster et al., 2020). For example, the

launch of healthier items such as Coca-Cola Zero

Sugar and Diet Coke show that the business can shift

to meet changing consumer requirements.

Besides, innovation is supported by Coca-Cola’s

wide product range, which includes more than 200

brands and appeals to a larger audience. The Coca-

Cola Company has its products as soft drinks, fruit

juices, bottles water, and energy drink among others

to ensure it fulfills the needs of the clients (Meng,

2024). This broad portfolio increases the company’s

market share and establishes Coca-Cola as a key

player in the beverage industry.

2.2 Weaknesses

However, Coca-Cola has some issues that limit its

competitive advantage. One of its major weaknesses

is that it is directly linked to sweetened beverages,

which have been under much scrutiny for being

positively related to obesity and diabetes, among other

ailments (Opait, 2020). This perception has adversely

affected Coca-Cola’s market share in the healthy

beverage segment, where players such as PepsiCo and

Nestlé have seized the opportunity and expanded their

presence. Furthermore, the firm has continued to

heavily focus on traditional products like the cola

beverages, and thus they lack product diversity in new,

health-conscious categories (Rosário et al., 2019).

Although Coca-Cola is trying to diversify its healthy

product offerings, the speed at which it introduces new

products is significantly slower compared to

competitors like PepsiCo, which launched X number

of new health-focused products last year

(Saleem Khasawneh, 2021). This slower pace makes

it difficult for Coca-Cola to capture the growing

market for healthier options. This overreliance on

traditional products may limit the capacity of Coca-

Cola to adapt to new customer needs.

2.3 Opportunities

The change toward increased awareness of healthy

nutrition is a clear positive for Coca-Cola in several

ways. Based on the relevance of the sugar-free and

low-sugar products to the consumers, Coca-Cola

possesses great potential to diversify in this area.

Thus, introducing new products like Diet Coke or

Coca-Cola Zero Sugar, along with successful case

studies from other brands in the low-sugar or sugar-

free segment, shows the prospect of growth in the

health-conscious drink industry (Anukeerthi and

Baranidharan, 2024). Further, governmental policies,

such as those promoting healthier lifestyles, reducing

sugar intake, and encouraging sustainable practices,

along with increasing level of public health

consciousness, provide the right background for

Coca-Cola to develop new products. Strategic

alliances with health organizations and the

introduction of new environmentally and health-

friendly products and services can enhance its

competitive position (Saleem Khasawneh, 2021).

Social media platforms allow Coca-Cola to spread its

influence widely, while the growth of e-commerce

provides new opportunities to engage with consumers

and expand its digital presence.

2.4 Threats

Coca-Cola Industry is one of the most competitive

Industries in the market where it is faced with strong

Competitors like PepsiCo, Dr. Pepper Snapple Group

and Nestle among others. This pressure of

competition has the net effect of prodding Coca-Cola

to look for differentiated products

(Chabrandmanagement, 2013). Other impacts include

increases in operating costs through the effects of

inflation on most important requisites like sugar and

aluminium. For instance, the price of sugar has risen

by 15% over the last five years and the price of

aluminum has risen by 20% for the same period.

These price increases have greatly affected

production and packaging expenses. However, the

social and environmental issue on plastic waste and

recycling still are concern to the sustainability of this

The Inﬂuence of Healthy Consumption Trend on Coca-Cola Marketing Strategy

company (Kottacheruvu, 2023). This means that if the

environmental issues are not addressed then the

image of Coca Cola brand and its consumers may be

negatively influenced.

3 PESTEL ANALYSIS OF

COCA-COLA

3.1 Political Factors

The political structure reflects a challenging political

environment that reacts to government policies across

the globe and affects Coca-Cola. New taxation

measures such as the Ireland and the UK sugar taxes

affect its traditional product portfolio given that it

directly targets Sugar-Sweetened Beverages (SSBs)

(Meng, 2024). Health advocacy movements also

further complicate Coca-Cola’s line of products.

However, its “World without Waste” sustainability

program helps to improve its image as a conscious

business and a part of global legislation to recycle and

preserve the environment. Despite challenges like

sugar taxes and health advocacy movements, Coca-

Cola's proactive initiatives, such as the 'World

without Waste' program, help mitigate these impacts,

keeping the negative effects of political factors within

a manageable range.

3.2 Economic Factors

Fluctuations in the global economy, which determine

inflation levels and increase in the cost of inputs like

sugar, aluminum and water, have a direct impact on

the Coca-Cola Company. The massive global

network reduces localized pressures but competitive

pricing for premium, health-conscious products is

vital (Rosário et al., 2019). However to appeal to the

masses, the company has to make the product

relatively cheap while at the same time ensuring that

it makes adequate profits. Growth in emerging

markets can be attributed to the increasing middle-

income population that demands differentiated prices

and promotion techniques to address their need.

3.3 Social Factors

Regarding social factors, the growing consumer

preference for healthier lifestyles has prompted Coca-

Cola to diversify its product range, offering healthier

options like Coca-Cola Zero Sugar and Diet Coke.

Customers are now more particular with the choice

they make and they are opting for beverages with less

sugar content, natural ingredients and even healthy

boosts. However, Coke has slightly lagged in this

segment compared to its competitors through the

launch of products such as Coca-Cola Zero Sugar and

Diet Coke (Lovett et al., 2020). Furthermore, the

generations in power want to buy and support the

brands that are environment friendly which is why the

environment responsibility of Coca-Cola is very

important for it.

3.4 Technological Factors

Coca-Cola continued to integrate technological

solutions to improve product innovation and

promotion. Advancements in technologies such as in

alternative sweeteners, enhanced packaging methods,

and increased research and development make it

possible to satisfy the needs of the consumers

(Selvaraj and Aziz, 2019). For instance, Coca-Cola's

investment in enhanced packaging methods, such as

lightweight aluminum cans and eco-friendly bottles,

reduces material costs while increasing profit

margins. Additionally, advancements in alternative

sweeteners allow for healthier product innovation.

The expansion of the e-commerce platform presents

opportunities to increase the company’s online

presence and market to a wider range of customers

since data analytics and artificial intelligence help in

targeting different customers.

3.5 Environmental Factors

Concerning corporate social responsibility, more

specifically environmental management, Coca-Cola

continues to invest in recyclable bottles, as well as

decreasing plastic production. However, issues like

water deficiency in critical production areas cannot be

ignored and proper water management should be

practiced (Suswanti, 2021). Government and

community partnerships, such as local water

conservation initiatives and recycling programs, can

address resource shortages. Moreover, Coca-Cola's

use of renewable energy in production processes,

including solar-powered facilities and energy-

efficient transportation, aligns with international

climate goals, reducing emissions and enhancing

environmental sustainability.

3.6 Legal Factors

Soft drinks manufacturers such as Coca-Cola equally

face strict legal restraints concerning health

information, packaging, promotion, and

environmental disposal. Failure to comply with the

APMM 2025 - International Conference on Applied Psychology and Marketing Management

regulation exposes one to penalties or fines and also

harms one’s reputation. To avoid such risks, the

company has to be transparent and adhere to the

changing laws (Anukeerthi and Baranidharan, 2024).

For Coca-Cola, protecting intellectual property is

critical in safeguarding its innovations, trademarks,

and brand assets. This ensures long-term stability and

maintains its competitive edge in a highly dynamic

market.

4 PERCEPTUAL MAP:

COCA-COLA VS.

COMPETITORS

A positioning map or perceptual map is a marketing

tool that can be helpful in an analysis of how

consumers view a certain brand or product compared

to its competitors (Jamshidifarsani et al., 2019). There

are two dimensions for positioning it where it slots

individual attributes such as price, quality, health

orientation, modernity, or taste, in accordance with

the consumers’ preference. Every product or brand is

located on the map based on its performance or

perceived by the consumer on those aspects. From the

map, it is easy to know how the brand is placed in the

market and sees areas where it is well positioned to

offer a point of difference. For instance, firms can

find that some market segments are underserved

while others are oversaturated and adapt their

offerings to fit the new consumer demand.

In the case of Coca-Cola and its competitors in the

soft drink industry, as shown in Fig.1, the positioning

map could have axes such as sugar level (low to high)

and formality (traditional to contemporary). It also

assists in visualizing competition where new product

ideas can be positioned against Coca-Cola and

competitors’ products like Pepsi and Diet Pepsi or

Coca-Cola Classic and Coca-Cola Zero Sugar. The

map highlights Coca-Cola's strong position in

traditional beverage segments and its growing

presence in health-conscious categories. However,

competitors like Pepsi are also strengthening their

footprint in these segments, presenting both

challenges and opportunities for Coca-Cola

(Chabrandmanagement, 2013). Through this

branding, it is easier for the Coca-Cola Company to

gauge market trends and modify its operations to

meet these new trends.

Figure 1. Perceptual Map (Photo/Picture credit: Original).

The Inﬂuence of Healthy Consumption Trend on Coca-Cola Marketing Strategy

5 SUGGESTIONS FOR

COCA-COLA

By aligning its strategies with consumer demands,

adapting to regulatory changes, and innovating its

product portfolio, Coca-Cola can maintain its

leadership in the global beverage industry.

5.1 Expanding Health-Oriented

Product Lines

Coca-Cola has to expand its portfolio of healthy

beverages as consumers increasingly look for

products that support healthy lifestyles. Apart from

Coca-Cola Zero Sugar and Diet Coke, the company

should launch beverages with functional attributes

including vitamins, probiotics, or antioxidants

(Wang, 2019). It can also diversify its offer utilizing

natural sweeteners such as stevia and focusing on

plant based or organic drinks that would attract

consumers interested in healthy diets. These

initiatives will help Coca-Cola to be relevant to the

modern trends and will enhance the company’s status

as an innovative company.

5.2 Strengthening Sustainability

Initiatives

While Coca-Cola has already developed the “World

without Waste” program, more profound initiatives

are needed. Making biodegradable or reusable

materials for packaging and working with

governments to improve the recycling system around

the world can further the environmental mission

(Selvaraj and Aziz, 2019). Strategies like waste

collection partnerships, renewable power utilization,

and consumer sensitization will put Coca-Cola at the

forefront of sustainability besides lowering on carbon

footprint. Such measures not only support

environmental goals but also align with rising

consumer demand for sustainable brands. Initiatives

like waste collection partnerships, renewable energy

adoption, and public awareness campaigns enhance

Coca-Cola's reputation and strengthen consumer

loyalty.

5.3 Enhancing e-Commerce and Digital

Presence

The rise of e-commerce presents opportunities for

Coca-Cola to connect directly with consumers.

Enhancing the organization’s digital presence and

providing subscription services for health beverages

can enhance accessibility for consumers

(Kottacheruvu, 2023). Using data analytic tools for

targeted marketing and product promotions on social

media pages and with the help of celebrities can

create hype among the target consumers and make

them more interested in the new Coca-Cola products

that are rated to be healthier.

5.4 Collaborating with Health and

Wellness Brands

Coca-Cola can seek endorsement from organisations

and companies that may promote health and wellness,

nutritionists, and fitness companies (McMaster et al.,

2020). Organizing events such as marathons and co-

creating products with doctors will show its intent

towards wellness, making Coca-Cola a wellness

company.

5.5 Targeting Emerging Markets with

Tailored Strategies

Emerging markets such as India, Indonesia, and

Nigeria offer significant opportunities due to their

growing middle-class populations and increasing

health consciousness. Coca-Cola can tailor its

strategies by offering affordable healthy options and

fortified beverages to meet nutritional needs in these

regions (Suswanti, 2021). The markets that are

health-conscious and sustainability-oriented will be

targeted through marketing promotional campaigns

that will ensure Coca-Cola captures these markets for

future growth.

6 CONCLUSION

Coca-Cola is a leading beverage company in the

global market, which has faced several issues and

threats and can explore new opportunities that will

help it maintain its dominance in the relevant market.

These factors make Coca Cola stand out in a

competitive and dynamic industry given the

company’s adaptability to customers’ changing needs

and the trend towards sustainability. In the context of

Coca Cola, this research seeks to discover the

strategic management areas that the company can put

its attention on through the application of SWOT

analysis and PESTEL factors. Key findings indicate

that brand power, broad range of products and

corporate social responsibility remain as key factors

that make Coca-Cola Company to stand out.

However, there are some threats like the increased

APMM 2025 - International Conference on Applied Psychology and Marketing Management

concern for health by consumers, competition from

health conscious brands, issues with laws that restrict

the sale of fizzy and sweet drinks. The responsiveness

of the company is evident through adaptation efforts

like offering sugar-free products and recyclable

packaging, but it shows that more can be done.

The recommendations provided in this paper

highlight a number of essential strategic directions for

Coca-Cola. Offering more health-oriented products,

including functional beverages and products with

plant-based ingredients, can help attract dietary

consumers. Expansion of the sustainability agenda

and bolstering of biodegradable packaging, recycling,

and affiliates shall ensure Coca-Cola adheres to

international environmental concerns. Furthermore,

future strategies such as the development of its e-

commerce platform and digitization allow for direct

selling of the products and an increase in consumer

interaction. Partnering with wellness organizations

and bringing focused strategies to fresh markets also

solidifies Coca-Cola in an evolving world.

Stakeholder engagement is central for understanding

and shaping systems where businesses like Coca-

Cola operate and achieve strategic relevance while

adhering to societal expectations. Besides, weaving

innovation with sustainability and adapting to new

consumer consumption tendencies, Coca-Cola

enhances its market leadership and promotes well-

being and sustainability worldwide, making the

company’s practices an example for emulation in

today’s historical context of businesses.

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