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Coke’s new CEO is using retail’s scapegoat to explain declining sales

(BUSINESS NEWS) Coke’s sales are down and the company’s new CEO has an interesting theory on why that’s so.

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Coca Cola Co. CEO James Quincey has a new job and his company has a new obstacle: online shopping.

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Quincey took the throne May 1, but trouble has been bubbling up for the soda company for quite some time now. According to recent research, customers made 51% of their purchases online last year, up from 48% the year before. It’s safe to say that number will only increase thanks to mobile devices: 63% of Millennials shop on their mobile phones every day.

Customers don’t get out much these days

They spend time scrolling through apps, shopping online for everything from boots to barbeques. Lately the focus has been on the plight of retailers like Sears and Macy’s, but traditional apparel companies are not alone in their suffering. With the growing popularity of grocery delivery, vending machines, food courts and those chilled beverages by the cash register are seeing much less action.

Think about it: you rarely head to the store just to buy a bottle of soda, but you’ve probably grabbed a quick refreshment while strolling around the mall. When you’re sitting on your couch ordering a cute handbag on Amazon, you aren’t faced with the temptation of a chilled beverage standing between you and checkout.

That’s not to say impulse buying is dead.

It’s actually more intense and intelligent than ever. The online shopper is constantly bombarded with carousels of items hand-picked just for them. Enticed by suggestions like “Customers also bought” and “You might also like”, shoppers can end up spending hundreds more than they planned on items they didn’t even set out to buy. Instead of tossing a Sprite in their cart, people are throwing in flat screen televisions and designer sunglasses.

Darn you, healthy habits!

Another behavioral shift threatens Coke’s sales. People care more about what they put into their bodies, and often choose to avoid sugary drinks. This trend will likely only become more pervasive as companies work to make healthy foods more affordable and accessible. While this is great news for people’s physical well-being, it’s essentially a death sentence for soda, which will never be viewed as “healthy.”

Both domestic and overseas soda sales have declined as restaurants have started purchasing less due to lower demand. Food sales for these same restaurants has not suffered — first, pizza and potstickers are much easier to deliver, and second, most of those lazy Millennials are sipping citrus-infused sparkling waters and Yerba Mate when they tap “Order” on their screen. They don’t need soda with all the glamorous alternatives available to quench their thirst.

If you can’t beat ‘em, join ‘em

The combined impact of digital and health trends has taken a toll on Coca-Cola. In the past year, the company’s stock fell by 4.9 percent. However, Quincey is not letting this discourage him: he is determined to help Coke survive the brick and mortar massacre by becoming a digital leader. Attempting to shed negative social stigma, Coke has invested in healthier drinks like Suja Life and Aloe Gloe, and is shutting down bottling plants around the globe.

Quincey is confident in his forward-thinking mission, and it would be wise for other soda companies to take a page from his book. Consumers are rapidly moving away from soda and the commercial ecosystem is doing nothing to hold them back.

Yeah, Coca-Cola is a classic. But even classics must be willing to adapt. Customers still want to “open happiness” like they have for decades. It’s just what makes them happy that’s changed.

#Cocacola

Helen Irias is a Staff Writer at The American Genius with a degree in English Literature from University of California, Santa Barbara. She works in marketing in Silicon Valley and hopes to one day publish a comically self-deprecating memoir that people bring up at dinner parties to make themselves sound interesting.

Business News

The one customer service mistake all businesses should avoid

(BUSINESS) Customer service is paramount for every business, but this one mistake handicaps so many and can be fixed so easily.

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As both an entrepreneur and business coach, I’m cursed with the proclivity to recognize areas for improvement in any businesses that I visit – even as just a customer. I wait in lines, stay on hold and watch mistakes happen, all the while dreaming of how I’d create a better customer service experience.

Case in point: I recently accompanied my girlfriend, Pam, on a trip to a car dealership – and what should have been a simple transaction turned into a nightmare, all because of customer experience.

Throughout the entire experience, I witnessed from the sidelines numerous small mistakes that, if resolved, could widely improve the processes of that car dealership and grow its business. But it wasn’t these small mistakes that did the most damage. Because of just one critical error, they will never know what they did wrong.

With over 180,000 miles on her current car, Pam knew that the time had come to replace her trusty and reliable vehicle of many years. She liked her current car, so she decided to simply replace it with a new version of the same model and brand. The only change would be a new color. To make the transaction even easier, she sold her old car to a friend and she didn’t need financing, opting to use her local bank for financing or pay cash.

Based on the above, I assumed that the car shopping experience would be extremely quick and painless. We contacted several dealers in the area and gave them the exact specifications of her new car and asked them to respond with their best price. Simple, right?

After receiving responses from three dealers in the area, Pam made the decision to go with the dealer closest to her house. They had the exact vehicle she wanted, although it was at another location, so it would take a few days to receive. And their price was almost identical to the lowest price received. They even said they would match a 0% interest financing offer that another dealer had offered to attract her business. Her next step was to head to the dealership and fill out the paperwork. We decided to do it on the way out of town for the weekend, because it was going to be so easy.

Upon arrival, she was told that she had to meet with the financing person and there was one customer in front of her. She was reassured, “It will be a short wait…” It turns out their definition of a “short” wait was several hours.

Multiple times, she asked what could be done to shorten the wait. Surprisingly, even if she decided to pay cash, their process required that she visit with the finance person. As she later found out, that was because the finance person’s goal was to upgrade her on insurance, financing, warranties and other add-ons – despite the fact that she clearly told her salesperson upon arrival that she did not want any of those add-ons.

Her only request was a quick experience, which they failed to deliver.

Upon finishing her paperwork with the finance person, my girlfriend was approached one last time by the salesperson as she headed out the door. He said it was “really important” that he go over one last detail of the transaction in his office. He proceeded to review the survey that she would receive from the manufacturer about her car-buying experience. He handed her a pre-filled out version of the survey with certain areas highlighted with the exact score he wanted her to provide so he could get his “full commission.”

He explained in great detail that his pay was directly related to the score on the survey. He even bribed her with some all-weather floor mats she noticed earlier in the day but decided were too expensive. He said the mats would “magically” be in her car when it was delivered – a small token of his appreciation for filling out the survey per his instructions.

All in all, the customer service experience was less than satisfactory and was riddled with mistakes. But, it was the salesperson’s mistake that most seriously hurt the business. Can you spot it?

As I watched the conversation about the floor mats unfold, that desire to help businesses improve struck me, and I realized that the incentive structure put in place by the dealership was going to prevent them from getting the real information – the true survey results – they needed to improve their business. (Which is too bad, because they really need to improve.)

A lesson that I always share with the businesses and leaders I work with day to day is: Incentives are a powerful tool to motivate team members, but if they get in the way of honest feedback or inspire teams to chase “rewards” instead of true business success, they can also have unintended consequences which put the brakes on the growth of organizations.

After a few additional hiccups in the process, my girlfriend finally received her new car… with the all-weather floor mats. She’s very happy with the car, but disappointed with the car-buying experience.

And unfortunately, because of the dealership’s decision to connect pay incentives to the survey, the dealership and manufacturer will never know the truth.

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Business News

Beware: The biohacking obsession is attracting scammers

(NEWS) Biohacking is finding ways to gain a competitive advantage, while excluding the medical world. It’s great to increase your output, but be cautious when picking your poison…

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Wanna live better or longer? [Insert biohack here] will solve all those pesky problems. In all fairness, it’s human nature to seek improvement, especially in our jobs or academics — you know, the things that demand a constant, high performance.

Of course our ears will prick up at the slightest mention of attaining that elusive edge. Remember Aderall in college?

Biohacking isn’t a new topic. The term refers to a wide range of activities to affect the body’s biological systems.

The objective is to optimize health, well-being, and focus. If we are able to effectively manage what we put into our body, our output can increase. It’s not inherently evil.

But social media influencers are key in promoting the latest products/diets/supplements/oils, often doing so for money, not to improve others’ lives. And, there’s a darker side of drug use, both prescription and illegal, leading to potentially dangerous and abusive situations.

The misleading aspect of biohacking is that every body is different.

Regardless of social media promises, people should be wary of ingesting additional products.

Despite the fancy names one can give it, biohacking has the same objective of medicine, but product development typically excludes medical practitioners.

Legitimate medical practices take huge amounts of funding and research to figure out and insure safety, and they’re heavily regulated by the federal government.

A random word of mouth promise about some obscure herbal supplement is not the same thing.

There are no shortcuts to improving one’s health.

And biohacking doesn’t necessarily mean making life more complex. It’s important to start with the basics before jumping to elaborate diet regimens, powders, pills, etc. Simple steps like routine exercise, 7-8 hours of sleep, and healthier meal choices may help get you on track.

It’s amazing to realize what you can change about yourself before joining some random Thought Cult you found on Instagram. And in the case that your health needs a modern, helping hand, do the proper research before falling into the dark internet hole.

Or better yet, consult your doctor.

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Business News

Did Ohio *really* just accidentally legalize marijuana?

(BUSINESS NEWS) Should cannabusiness investors rush to Ohio, or are the headlines about legalized marijuana in the state misleading? The situation is pretty complex.

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Hemp growers and pot smokers alike may benefit from a recently passed Ohio law intended to legalize hemp, but which has also made prosecuting marijuana charges significantly more difficult, if not impossible.

Although many news sources are blasting the headline that Ohio has “accidentally legalized weed,” the truth is slightly more complicated.

On July 30, Ohio legislators signed into law a bill that legalizes the growth and sale of hemp, but not marijuana. Hemp and marijuana are the same species of plant, but while hemp is mostly used for its super strong fibers, marijuana is cultivated to contain high levels of the psychoactive compound THC.

It’s not easy to detect the difference between hemp and marijuana with the naked eye. Connoisseurs might argue that if the bud looks dry, green, and hairless, it’s probably hemp.

But there’s no way to prove it definitively during a police stop or search. Sure, an officer could take a toke and see if it makes him feel funny, but that would hardly be appropriate; the typical protocol is to test the plant material in a lab to determine the percentage of THC.

Green with less than 0.3 percent THC is considered hemp; more than that is considered marijuana.

The problem is that none of Ohio’s city or state level crime labs have the technology to make this determination. The current lab equipment available can detect the presence of THC but can’t tell the amount.

Louis Tobin, the executive director for Ohio’s Prosecuting Attorney Association, calls this recent law “the de facto legalization of marijuana,” not because the bill explicitly make marijuana legal, but because “there’s no way for law enforcement to tell what’s legal and what’s not legal.”

Apparently Tobin and other prosecutors had raised this concern while the bill was being debated, to no avail.

Now police officers and prosecutors are getting mixed signals about how to proceed.

Says Tobin, “There are statues on the books that say you should enforce marijuana possession but another law takes away your tools to do it.”

Ohio’s Attorney General, Dave Yost, sent a letter to prosecutors encouraging them to postpone marijuana indictments. The Office of the Attorney General in Ohio’s capitol city of Columbus announced that they will temporarily cease prosecuting marijuana misdemeanors and will drop all pending cases.

Meanwhile, in Hamilton County, prosecutor Joe Deter is encouraging police officers to go ahead and investigate marijuana-related crimes, and to confiscate anything that looks like it could be either hemp or marijuana. The state Bureau of Criminal Investigation has already been allotted funds to purchase and set up the testing equipment needed to measure percentages of THC. Prosecutors who wish to follow up on marijuana crime cases will just have to cross their fingers and hope that the equipment becomes available before the statute of limitations kicks in.

Even when the right testing equipment gets set up, some suspect that the recent legal change could have a long-lasting effect on how the city prosecutes marijuana misdemeanors. It may prove to be inefficient and costly to prosecute small-time dealers and individuals possessing small amounts of the drug.

Nonetheless, it’s probably too soon for cannabusiness to start investing heavily in Ohio – but it’s a state worth keeping an eye on.

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