As we all know, the incident that happened a few days earlier and gained a lot of popularity, promoting water by Cristiano Ronaldo makes Coca-Cola a huge beverage company to bear a lot of losses. Also, the share price of Coca-Cola dropped by a whopping 1.6%(approx.). As Coca-Cola is a huge company and uses advertisement as its prominent promotion, every year Coca-Cola spends around US$4 Billion on advertisement all over the world, and a small act of the great football player Cristiano Ronaldo has made Coca-Cola run into US$4 billion loss. Now we will discuss the factors due to which such a small act by Ronaldo destroys the reputation of the company:
The first factor is the enormous fan following of Cristiano Ronaldo, as he is a well-renowned football player people from all over the world follow Cristiano Ronaldo. Thus this fan base in support of Cristiano Ronaldo has prevented themselves from drinking Coca-Cola, and hence the company got a loss.
Another factor that contributes to the loss of Coca-Cola is that the investors in this company have a portion of the great businessman to lower-middle-class people and middle-class people don't like to have any loss of their wealth, or we can say that they are scared if even a little bit of their money is lost, so these middle-class people to prevent themselves from losses took their money out of the share market. Hence, the share price also got down rapidly.
Now we have discussed the primary factor contributing to the loss of the Coca-Cola company, and we know the actual reason behind the hype of the matter. We shall also discuss how Coca-Cola was able to withstand its position in the market.
As Coca-Cola is a massive company, this loss does not have a significant impact on this company as the amount is not that big as per the company's market cap. However still, Coca-Cola was worried due to the effect on the company's image, and hence they needed a plan of action to again gain the reputation in the beverage market. So Coca-Cola created a new advertisement for the company to regain its position. As we know, earning importance is a continuous work of years, but destroying the reputation takes only one wrong step, resulting in a loss of wealth and the hard work of many years grouped. Now the company is looking forward to the branding and promotion, and it will take a little more time to regain its position. Still, we know that the fan base of Coca-Cola is also scattered all around the world, and soon it will regain its popularity and market share, and everything will become standard as usual.
The last thing that we need to discuss is why Cristiano Ronaldo did so. The reason is straightforward. Being a sports player, he knows the value of water and the harmful effects of carbonated drinks, so he just gave a message that water is an essential need for everybody and that we should keep our bodies hydrated to live a healthy life.
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