Coca Cola: Dominance & Discrimination
Coca Cola dominance in the market is one of the greatest ways its marketing skills are used. Coke tried to dominate the European market by moving in and placing their products in various locations and they also started to buy out the local competition.
In 1999, the European Commission investigated Coke, the commission was concerned that coke was abusing its dominant position. On October 19, 2004, the investigation was over and coke came to a settlement. The agreement, if coke ever breached it a fine would be imposed. The agreement lays out that coke could only move in to locations where Coke’s market share is more then forty percent and were coke sales are more than twice of its closest competition. This led to a completion across Europe for the carbonated soft drinks and which led to consumers’ choice of which product they prefer. Coke could no longer dominate a market in which Coca-Cola made coke the only product available.
Coke also had to stop rewarding their customers on how many cases they ordered the previous year and having a certain area within the store where it was just coke products. The retailers were also free to put whatever they desired in coolers provided by coke, as long as eighty percent of the cooler includes coke products.
Coca Cola is know through out the world for its great one of a kind taste, many don’t know the corporation itself can taste bad sometimes. In 1999, Coca Cola reputation was headed down hill when 1,500 African American employed sued for racial discriminations. Current and former African American employees hit the giant carbonated soft drink maker with a class-action lawsuit. The company was being accused of discriminating in the areas of pay, promotion, and performance evaluation. According to the salary reports that Coca Cola pretend in court shows that in 1995, the average African American employee was paid $19,000 less then the whites. In 1998, it showed that average black was being paid $27,000 less than the average
In 1999, the European Commission investigated Coke, the commission was concerned that coke was abusing its dominant position. On October 19, 2004, the investigation was over and coke came to a settlement. The agreement, if coke ever breached it a fine would be imposed. The agreement lays out that coke could only move in to locations where Coke’s market share is more then forty percent and were coke sales are more than twice of its closest competition. This led to a completion across Europe for the carbonated soft drinks and which led to consumers’ choice of which product they prefer. Coke could no longer dominate a market in which Coca-Cola made coke the only product available.
Coke also had to stop rewarding their customers on how many cases they ordered the previous year and having a certain area within the store where it was just coke products. The retailers were also free to put whatever they desired in coolers provided by coke, as long as eighty percent of the cooler includes coke products.
Coca Cola is know through out the world for its great one of a kind taste, many don’t know the corporation itself can taste bad sometimes. In 1999, Coca Cola reputation was headed down hill when 1,500 African American employed sued for racial discriminations. Current and former African American employees hit the giant carbonated soft drink maker with a class-action lawsuit. The company was being accused of discriminating in the areas of pay, promotion, and performance evaluation. According to the salary reports that Coca Cola pretend in court shows that in 1995, the average African American employee was paid $19,000 less then the whites. In 1998, it showed that average black was being paid $27,000 less than the average