Coca-Cola, the world’s leading soda brand, is going through brand related challenges which are unlikely to go away or be resolved when its CEO of eight years, Muhtar Kent, will step down in May in 2017.
It was recently announced that Muhtar Kent, Chairman and CEO of Coca-Cola, is stepping down and will be succeeded by COO and Coke President James Quincey. This news comes amidst Coca-Cola’s struggle with its brand strategy and sales performance, all of which are not going to simply disappear when its CEO leaves.
Fortune’s Jennifer Reingold credits Kent as being famous for exemplifying a universal brand identity; a strategy wherein a brand’s identity is the same all throughout the world, a strategy that is being followed by almost all global brands today such as Apple—a strategy that unfortunately may no longer be relevant in the economy of today.
The giant cola company has reportedly declined by $4 billion in revenues over the past three years and this could be attributed to the age of personalization, wherein objects are customized to suit a buyer’s identity, not to mention the decreasing desire for sugary beverages. According to the former global marketing head at Procter and Gamble and current branding consultancy head of Jim Stengel Co., the challenge is how a global, scale-oriented consumer packaged-goods brand can compete in a post-scale economy.
Coke has already sought too answer the matter by offering consumers more choices through personalizing the packaging design and customizing soda fountains. In addition, it is not just Coca-Cola that is going through this difficulty but other food and drink companies as well.
Business models are being shaken at its foundations and one must find a way to steady it by adapting to the new age. This is what Muhtar Kent will leave James Quincey in May next year and hopefully, he will be up and ready to tackle it, this time at the forefront of the company.
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