Sustainability in marketing coca-cola

Issues in the Beverages Industry 3 2. Sustainability Issues facing Coca-Cola 3 2. Products 3 2. Environmental Issues 4 2. People 5 2. Product 10 3. Price 11 3. Promotion 11 3. Place 11 3. Supporting Pro-environmental consumer behavior 12 3. Key Sustainability Issues in the Beverage Industry and Coca-Cola 2. Issues in the Beverages Industry The Coca-Cola Company operates in the beverages industry. Usually, firms in this industry face sustainability issues associated with various challenges. For instance, the industry faces the issue of creating value chains that display environmental awareness as well as the capability to confront complex and fundamental issues (Coca-Cola, n. d. Coca-Cola is rich in sugar, precisely sucrose, which is understood to lead to dental caries after frequent consumption. In addition, the high caloric value in Coca-Cola products is linked to obesity. They are significant health concerns in different individuals regardless of their identification with developing or developed countries.

According to a research carried out by the Harvard School of Public Health in 2015, individuals who consume one to two cans of sugary beverages daily are 26% more probable to develop type 2 diabetes (Yang et al. Over 184,000 deaths across the world each year are associated with the consumption of sugary drinks. Environmental Issues At the start of 2004, local authorities in Kerala closed a $16 million Coke bottling factory on the basis that it resulted in decline of the volume and quality of water available for the farmers and villagers. Also, it was found out that the plant increased the issue of water scarcity in the region (Gabriel, 2017). In Madhya Pradesh, the company was linked to significant water exploitation activities. It was argued that the project would result in significant shortage of water in the region through the depletion of the water level of River Narmada (Mishra, 2018).

In attempts to stop the project in the region, residents began a signature initiative to obtain support against the firm’s project. Coca-Cola Company, it was alleged that the firm’s partners had helped paramilitaries to murder Sinaltrainal’s trade union members (Verseman, 2017). Similar challenges are faced in Singapore. The Triple Bottom Line At the start of 2006, the University of Michigan suspended the consumption of Coca-Cola products in its company. This was not related to the pricing or product quality, but was associated with the concerns over the firm’s environmental concerns in India as well as labor issues in Colombia (Miller & Pisani, 2018). This aspect outlines sustainability concerns in the firm based on employees (labor) and environmental conservation. From 2015 to 2017, Coca-Cola Singapore emphasized on determining the significant and possible effects on human rights related to its operations and organizational connections with human rights risks.

The firm carried out initiatives with various participants from functions and involved over 180 experts in four different continents (Melton et al. The risk ranks obtained from the workshops were explained in the context of a global stakeholder consultancy aspect. Based on the external and internal input, the firm identified thirteen outstanding human rights concerns related to the firm’s operations and business connections (Singh & Kaur, 2018). They include employee working hours, land rights, product quality and safety, healthy lifestyles, freedom of association, and access to water and environmental pollution (Coca-Cola, n. In case audits identify non-compliance, a corrective action plan is set up to address the issues within a specified duration. The action is tracked and aligned with specific objectives (Kopnina, 2018). Through the EthicsLine, employees working for The Coca-Cola Company are advised to report their issues.

In this context, EthicsLine operates as a global web and reporting service for Coca-Cola (Christy, 2015). Environmental Sustainability Attempts Coca-Cola Singapore’s fundamental target is to minimize environmental impacts across it value chain. It focuses on optimizing the route to market and use of more efficient automobiles, and in some regions, rail transport to minimize emissions from the firm’s fleet. It has formulated a strategy an objective of 25% carbon reduction in its value chain and 50% carbon reduction in its activities by 2020 (Pan et al. As a result of population growth, increasing food security concerns, and climate change, the firm acknowledges that supplies might become challenging obtain. Hence, it is a segment of the firm’s preventive approach to encourage the formation of supportive programs towards sustainable agriculture (Brownlee et al.

Establishing on responsible sourcing requirements include the review of external standards for environmental as well as social performance towards where the suppliers are operating. As a result, in 2005, the firm partnered with other organizations to co-fund a PET bottle to make a recycling facility in Australia. In 2011, the firm expanded its production of bottles based on modern art recycling technology (Rabnawaz et al. Coca-Cola Singapore (2018) points out that since the business depends on cans and bottles, it embraces its share of responsibility to make sure that the world has a sustainable packaging approach in place. Responsible and Sustainable Sourcing In Singapore, Coca-Cola acknowledges that responsible and sustainable sourcing is part of its priority in operations. As a business, Coca-Cola relies on a sustainable supply of agricultural products including sugarcane, sugar beet, pulp and paper, and juices when making its products.

The firm should use environmentally-friendly materials, lean manufacturing methods to reduce its carbon footprint. Price Sustainable pricing for Coca-Cola should embrace environmental, social, and economic costs of the firm while offering value to the consumers and profit for the firm. Hence, the prices should not violate sustainability contexts (Whelan & Fink, 2016). Given that green products might be more costly than other products, the firm should apply effective targeting to reduce the green price gap. Promotion In the course of promoting its products, Coca-Cola should ensure that it informs its consumers about the activities it engages in to enhance sustainability (Spitzeck & Lins, 2018). Environmentally-oriented attitude is not likely to offer immediate individual benefit or satisfaction, but instead a future-based result. This means that the organization should focus on formulating policies that support the client’s pro-environmental behavior (Bhuian et al.

By supporting pro-environmental consumer behavior, firms would support the aspect that consumers are more conscious of the essence of eradicating pollution, leading to ecological awareness and zeal to buy eco-friendly goods and services. Equipping the consumers with environmental knowledge Some consumers might have understand environmental issues. This may prevent them from acting in environmentally responsible approaches. It would play a crucial role in informing the consumers about the need to embrace sustainability in various activities (Porter & Kramer, 2019). This would ensure that the consumers understand that the firm does not include harmful items in its products. Challenges of Implementation Certain challenges can be faced in the course of implementing the proposals. One of them is collaboration. Since the firm cannot single-handedly adopt sustainable approaches on its own, it has to collaborate with other stakeholders in its value chain.

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