Why Coca Cola’s Stock Star Keeps Rising
Coca Cola. We all know the brand. That’s probably part of the reason they’re so successful. The thing is about Coca Cola is that it’s gone from strength to strength even in the last decade. It’s hard to believe that it was once just a small company. Of course, they’ve had over a hundred years to build their business and their brand. Part of their ability to do that is through their strength as a stock market giant.
Coca Cola’s advertising is mostly part of the reason they are as successful as they are. They are working on almost every level of advertising possible. Physical or digital, they are everywhere. Part of the reason their advertising is so successful is the amount you see it. That kind of exposure causes brand recognition from a young age.
When you know a brand, you will default to picking that one over any others. Say you’re looking to buy a cola drink. You’re set with two options, a can of Coca Cola and an unknown brand. The other cola could be incredible, but you’ll reach for the Coca Cola. Part of the brand recognition is knowing what you get. Why trust an unknown when you can have a known quantity? That’s part of why Coca Cola has the sales numbers to keep their stocks strong.
Another reason Coca Cola stocks are so very hot would be their partnerships with sports events around the world. Be it soccer, baseball, or even the Olympics. These kinds of partnerships are just another way to advertise.
Primarily, it increases the exposure of the branding. While everybody in developed countries may know what Coca Cola is, there’s a good chance the developing world does not. There are over one billion people in Africa alone, and not all African countries are developed.
Sports events like the World Cup and the Olympics do their best to bring in these developing nations, and, as a result, there is exposure of the events in these countries. The exposure will include video and press materials featuring the Coca Cola branding. That is Coca Cola’s foot in the door to all these people who haven’t bought their products.
Another reason for Coca Cola’s continued growth would be just how available it is. Now this might be a result of demand and not directly associated with how it reached its growth levels. What it does do is perpetuate the growth instead, simply by just making it so widely available. If a store sells drinks, it sells Coca Cola. It is incredibly rare if that is not the case. Effectively, it keeps the growth ticking over and maintaining itself.
If you are an investor, Coca Cola stocks are rock solid. They are immovable and unshakable. They are the bedrock of the stock market. They’re a bullet train, with no signs of slowing down. It seems the only threat to Coca Cola’s success will be when they’ve advertised to everybody on the planet. Maybe then they’ll start trying to advertise in space.