Description
This study empirically examined the marketing strategies in coca-cola. Specifically, this study seeks to investigate the relationship between the marketing approach and international image of the company. The brand development strategy of Coca Cola comprised redesigning of its brand development policies and techniques to keep up with the changing mindset of its consumers.
G.J .C.M.P.,Vol.3(1):153-157 (J anuary–February,2014) ISSN: 2319 – 7285
153
A CONCEPTUAL FRAME WORK OF MARKETING STRATEGIES IN
COCA-COLA
*Mrs.T.Kalakumari & **Dr.M.Sekar
*Assistant Professor, Department of Commerce, Sri Krishna Arts and Science College
Coimbatore, India
**Assistant Professor, Department of Commerce, CBM College
Coimbatore, India.
Abstract
This study empirically examined the marketing strategies in coca-cola. Specifically, this study seeks to investigate
the relationship between the marketing approach and international image of the company. The brand development
strategy of Coca Cola comprised redesigning of its brand development policies and techniques to keep up with the
changing mindset of its consumers. A part of the brand building technique is also to enhance "purchase frequency". The
company has also invested in various advertisement campaigns often engaging the services of celebrities around the
globe. In addition to the consumers, there is another category of consumers, who increase the consumer base and they
constitute the collectors of the brand. At Coca-Cola, they have a long standing belief that everyone who touches their
business should benefit, thereby inducing them to uphold these values, enabling the Company to achieve success,
recognition and loyalty worldwide.
Keywords: -Brand Building, Brand Image, Brand Loyalty, Customer Loyalty, Customer Satisfaction, Marketing Strategy.
1. Introduction
Coca-Cola is a carbonated soft drink sold in the stores, restaurants, and vending machines of more than 200
countries. It is produced by The Coca-Cola Company of Atlanta, Georgia, and is often referred to simply as Coke (a
registered trademark of The Coca-Cola Company in the United States since March 27, 1944). Originally intended as a
patent medicine when it was invented in the late 19th century by John Pemberton, Coca-Cola was bought out by
businessman Asa Griggs Candler, whose marketing tactics led Coke to its dominance of the world soft-drink market
throughout the 20th century. The company produces concentrate, which is then sold to licensed Coca-Cola bottlers
throughout the world. The bottlers, who hold territorially exclusive contracts with the company, produce finished product
in cans and bottles from the concentrate in combination with filtered water and sweeteners. The bottlers then sell,
distribute and merchandise Coca-Cola to retail stores and vending machines. Such bottlers include Coca-Cola
Enterprises, which is the largest single Coca-Cola bottler in North America and Western Europe. The Coca-Cola
Company also sells concentrate for soda fountains to major restaurants and food service distributors.
The Coca-Cola Company has, on occasion, introduced other cola drinks under the Coke brand name. The most
common of these is Diet Coke, with others including Caffeine-Free Coca-Cola, Diet Coke Caffeine-Free, Coca-Cola
Cherry, Coca-Cola Zero, Coca-Cola Vanilla, and special editions with lemon, lime or coffee.
In response to consumer insistence on a more natural product, the company is in the process of phasing out E211, or
sodium benzoate, the controversial additive used in Diet Coke and linked to DNA damage in yeast cells and hyperactivity
in children. The founder of coca cola was John Dock Pemberton in 1886 when he experimenting with cocaine and wine.
The founder of the name coca cola was Frank Robinson. The Coca-Cola Company is the world's largest beverage
company, refreshing consumers with nearly 500 sparkling and still brands. Globally, they are the primary provider of
sparkling beverages, juices and juice drinks and ready-to-drink teas and coffees. Through the world's largest beverage
distribution system, consumers in more than 200 countries enjoy the Company's beverages at a rate of nearly 1.6 billion
servings a day. With an enduring commitment to building sustainable communities, the Company is focused on
initiatives that protect the environment, conserve resources and enhance the economic development of the communities
where they operate.
2. Marketing Strategies
In order to achieve this mission, Coca Cola create value for all the constraints it serve, including consumers,
customers, bottlers, and communities.
The Coca Cola Company creates value by executing comprehensive business strategy guided by six key beliefs:
? Consumer demand drives everything Coca Cola do.
? Brand Coca Cola is the core business.
? Serve consumers a broad selection of the non-alcoholic ready-to-drink beverages they want to drink throughout
the day.
? Be the best marketers in the world.
? Think and act locally.
? Lead as a model corporate citizen.
G.J .C.M.P.,Vol.3(1):153-157 (J anuary–February,2014) ISSN: 2319 – 7285
154
1. Strategic planning:
In past years, the company had a great success, as the strategy worked which resulted in making Coca Cola
Company the world's leading company.
Company accomplished the crust of its strategy as,
• Worldwide volume increased by 4 percent with strong international growth of 5 percent.
• Earnings per share grew by 82 percent.
• Return on common equity grew from 23 percent to 38 percent this year.
• Return on capital increased from 16 percent in 2000 to 27 percent.
• The company has generated free cash flow of $3.1 billion, up from $2.8 billion.
The marketing strategy for the future is as follows:
• Accelerate carbonated soft-drink growth, led by Coca-Cola.
• Selectively broaden the family of beverage brands to drive profitable growth.
• Grow system profitability and capability together with our bottling partners.
• Serve customers with creativity and consistency to generate growth across all channels.
• Direct investments to highest potential areas across markets.
• Drive efficiency and cost-effectiveness everywhere.
2. Strategies of quality
After Micro and macro analysis Brand "coke" is primarily role
1. Enhance competition moments
2. When people watch cricket
3. Through commercialization
4. Fun time
3. Expanding target market
In last 2 years Coke has come back in aggressive manner.
• Consumer has choice
• Attractive brand name
• Brand differentiating
Consumer Has Got Choice:
Now the consumer has got choice. Because now they know the name of another big brand, though coke is the 2nd
best name but it can get a better position after some time
Attractive Brand Name:
Now the consumers know the Name of Coke, because Coke is the name, which is the most popular after the word
"ok". So people can better differentiate brands with each other.
Brand Differentiation:
Now different companies have got different brand names. So, people can distinguish between brands. Two major
brands "coke" and "Pepsi" also have brand names.
4. Strategies of getting goals:
To increase the price is the least thing, which Coke can adopt. There are so many ways through which Coke can
increase the profits. Some major ways are as follows.
• Volume can be increased
• Interest level of consumers
• To take part in energetic festivals
5. Marketing strategy:
What people want in a beverage is a reflection of who they are, where they live, how they work and play, and how
they relax and recharge. Whether you're a student in the United States enjoying a refreshing Coca-Cola, a woman in Italy
taking a tea break, a child in Peru asking for a juice drink, or a couple in Pakistan buying bottled water after a run
together, we're there for you. We are determined not only to make great drinks, but also to contribute to communities
around the world through our commitments to education, health, wellness, and diversity. Coke strives to be a good
neighbor, consistently shaping our business decisions to improve the quality of life in the communities in which we do
business.
6. Price strategy:
Trade Promotion:
Coca cola company gives incentives to middle men or retailers in way a that they offer them free samples and free
empty bottles, by this these retailers and middle man push their product in the market following "Seen as sold"
Different Price in Different Seasons:
Sometimes Coca Cola Company changes their product prices according to the season. Summer is supposed to be a
good season for beverage industry in Pakistan.
So in winter they reduce their prices to maintain their sales and profit.
7. Promotion strategies:
Getting shelves:
They get or purchase shelves in big departmental stores and display their products in those shelves in attractive
style.
Eye Catching Position:
Salesman of the coca cola company positions their freezers and their products in eye-catching positions. Normally
they keep their freezers near the entrance of the stores.
G.J .C.M.P.,Vol.3(1):153-157 (J anuary–February,2014) ISSN: 2319 – 7285
155
Sale Promotion:
Company also do sponsorships with different college and school's cafes and sponsors their sports events and other
extra curriculum activities for getting market share.
Development Strategy of Coca Cola:
Brand development strategy of Coca Cola has been far reaching and has managed to remain in the limelight ever
since it became a favorite with the non alcoholic drinkers. It has been noticed that brand loyalty is an important factor in
maintaining the number one position. The article below suggests the various brand building techniques of the company.
Founded in the year 1886, the Coca Cola company enjoys the status of being one of the biggest non alcoholic
beverage companies of the world. It has a distribution system, which makes it unique from the rest of the non alcoholic
beverage manufacturers. Over the years, Coca Cola has passed several tests of brand enhancement and the company
makes it a point that the products under the banner Coca Cola continue to invade the minds of the consumers.
The brand development strategy of Coca Cola comprised redesigning of its brand development policies and
techniques to keep up with the changing mindset of its consumers. Earlier, this brand believed in the following:
? Afford ability
? Availability
? Acceptability
However, this brand development strategy of Coca Cola was re worked to stress on the following instead:
? Price value
? Preference
? "Pervasive penetration".
The essence of brand building of the company lies in the fact that it wants its consumers accessibility to be "within
an arm's reach of desire". In an attempt to build its brand identity, as many as 20 brand attributes are tested every month
involving as many as 4000 customers. The brand development strategy of Coca Cola is effective as it has been able to
construct, manage as well as maintain its brand image since yesteryears.
Another reason why this brand has gained unanimous acceptance all around the globe is due to the fact that it has
been able to connect very well with its consumers. This implies brand loyalty. Brand loyalty has been instrumental in
keeping up the brand image of Coca Cola. It believes in shelling out the best so that the consumers are retained by
default. A part of the brand building technique is also to enhance "purchase frequency". The company has also invested
in various advertisement campaigns often engaging the services of celebrities around the globe. In addition to the
consumers, there is another category of consumers, who increase the consumer base and they constitute the collectors of
the brand. The collectors usually indulge in collecting old as well as upcoming logos of Coca Cola, bottles and literary
matter. With regard to the brand development of Coca Cola Zero, the company came out with an advertisement, which
was quite different from the conventional ones. In this regard, (no calorie beverage), it has shelled out three types of
products.
? Coca Cola Classic
? Diet Coke
? Coca Cola Zero.
There are few experts who believe that when Coca Cola had the tag line of "The Real Thing", it was really that but
with the invention of various categories of coke, the "real thing" changes to "many things", and the original flavor is
usually lost. Hence, the brand building strategies should be such that it does not confuse people and is able to retain
consumers despite the fact that several new non alcoholic beverage firms are on the anvil.
3. Marketing Approach
Both the Coca-Cola and Pepsi try to market as part of a life-style. Coca-Cola uses phrases such as "Coke side of
life", while Pepsi uses phrases such as "Hot stuff", to promote the idea
that Pepsi is "in sync" with the cool side of life. Pepsi tries to reach out
to the younger generation by appealing to pop culture. Coca-Cola's is
less flashy and uses a classical appeal, most likely because of Coca-
Cola's long history as the standard for cola beverages.
The operation review according to the segments is as follows:
So the volume is least in the Africa and most in the North America.
The data about the market share of this company area wise is given in
the following table.
The above table shows the geographical earning of the Coca
Cola Company and from this data; we can find out that the customers
of Coca Cola are increasing which is shown by the company’s per
capita income. Unit case equals 24 eight-ounce servings. The column,
which shows the non-alcoholic beverages consist of commercially,
sold beverages, as estimated by the Company based on available
industry sources. The country column is derived from the Company's
unit case volume while the industry column includes nonalcoholic
ready-to-drink beverages only, as estimated by the Company based on
available industry sources.
In Asian population, which is the satisfied customer of Coca Cola, is approximately 3.2 billion and the average
consumer enjoys close to two servings of our products each month. Through an intense focus on Coca-Cola, innovation
and new beverages, the company has achieved volume growth of 10 percent in 2002. With developing economies and
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156
populations, this region has strong long-term potential, and the company is building an exciting family of beverage
brands in addition to expanding the popularity of our core brands, led by Coca-Cola. In China, for example, sales of
Coca-Cola increased 6 percent.
Fig.1 Coca cola’s international revenue
4. International image of the company
The founder of coca cola was John Dock Pemberton in 1886 when he experimenting with cocaine and wine. The
founder of the name coca cola was Frank Robinson. The Coca-Cola Company is the world's largest beverage company,
refreshing consumers with nearly 500 sparkling and still brands. Globally, they are the No.1 provider of sparkling
beverages, juices and juice drinks and ready-to-drink teas and coffees. Through the world's largest beverage distribution
system, consumers in more than 200 countries enjoy the Company's beverages at a rate of nearly 1.6 billion servings a
day. With an enduring commitment to building sustainable communities, the Company is focused on initiatives that
protect the environment, conserve resources and enhance the economic development of the communities where they
operate.
5. National image of the company
Coca-Cola was the leading soft drink brand in India until 1977, when it left rather than reveal its formula to the
Government and reduce its equity stake as required under the Foreign Regulation Act (FERA) which governed the
operations of foreign companies in India. Coca-Cola re-entered the Indian market on 26
th
October 1993 after a gap of 16
years, with its launch in Agra. An agreement with the Parle Group gave the Company instant ownership of the top soft
drink brands of the nation. With access to 53 of Parle’s plants and a well set bottling network, an excellent base for rapid
introduction of the Company’s International brands was formed. The Coca-Cola Company acquired soft drink brands like
Thumps Up, Goldspot, Limca, Maaza, which were floated by Parle, as these products had achieved a strong consumer
base and formed a strong brand image in Indian market during the re-entry of Coca-Cola in 1993.Thus these products
became a part of range of products of the Coca-Cola Company.In the new liberalized and deregulated environment in
1993, Coca-Cola made its re-entry into India through its 100% owned subsidiary, HCCBPL, the Indian bottling arm of
the Coca-Cola Company.
However, this was based on numerous commitments and stipulations which the Company agreed to implement in
due course. One such major commitment was that, the Hindustan Coca-Cola Holdings would divest 49% of its
shareholding in favor of resident shareholders by June 2002. Coca-Cola is made up of 7000 local employees, 500
managers, over 60 manufacturing locations, 27 Company Owned Bottling Operations (COBO), 17 Franchisee Owned
Bottling Operations (FOBO) and a network of 29 Contract Packers that facilitate the manufacture process of a range of
products for the company. It also has a supporting distribution network consisting of 700,000 retail outlets and 8000
distributors. Almost all goods and services required to cater to the Indian market are made locally, with help of
technology and skills within the company. The complexity of the Indian market is reflected in the distribution fleet which
includes different modes of distribution, from 10-tonne trucks to open-bay three wheelers that can navigate through
narrow alleyways of Indian cities and trademarked tricycles and pushcarts. “Think local, act local”, is the mantra that
Coca-Cola follows, with punch lines like “Life ho to aisi” for Urban India and “Thanda Matlab Coca-Cola” for Rural
India. This resulted in a 37% growth rate in rural India visa-vie 24% growth seen in urban India. Between 2001 and
2003, the per capita consumption of cold drinks doubled due to the launch of the new packaging of 200 ml returnable
glass bottles which were made available at a price of Rs.5 per bottle. This new market accounted for over 80% of India’s
new Coca-Cola drinkers. At Coca-Cola, they have a long standing belief that everyone who touches their business should
benefit, thereby inducing them to uphold these values, enabling the Company to achieve success, recognition and loyalty
worldwide.
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157
6. Future Prospects
The focus seems to be on ‘mobile marketing services’ in the Indian marketplace. Realizing the significance of this
mode of marketing, marketers are increasingly opting for mobile marketing techniques to connect with their target
audience—directly. And with around 33 million subscribers in the country, the concept of mobile marketing is rapidly
gaining momentum, observe new media analysts.
For instance, Coca-Cola India is planning to launch an aggressive SMS-based campaign to promote its new launch
‘Coke Vanilla’ along with its mass media advertising plans within a few days. Recognizing the potential of this medium,
Coke had in fact initiated a host of SMS-based promotions almost two years ago, informs Coca-Cola India director
(marketing) Mumbai Sharda Agarwal.
7. Conclusion
Recent research shows that Coca-Cola is the largest consumer brand name in the world. The popularity of the
product means that most of the populations globally know about the product. As a result, Coca-Cola is now in a position
where it does not have to spend as heavily on creating a brand image since it is a very established product.Coca Cola has
various methods of packaging such as can, plastic bottles, glass bottles etc. This means that Coke has enough variety
within is product packaging range to meet the various demands of its consumers.Due to the high caffeine level and the
distinct taste and brand image, the customer loyalty for Coke is very high. Coke is perceived as the most premium
product within the cola industry.
8. References
1. Biswas, A., & Sen, A. (1999), Coke vs Pepsi: Local & Global Strategy. Economic & political weakly, 34 (26), 1701-1708.
2. Basu, P.,“Consumer Decision Analysis for purchase of Fruit Drinks”, Symbiosis Institute of Business Management, Pune.
3. Consumer Preference Coca Cola versus Pepsi-Cola © Global Journals Inc © 2012.
4. Funderburg, Anne Cooper (2002), Sundae Best: A History of Soda Fountains. The University of Wisconsin
Popular Press. ISBN 0-87972-853-1.
5. Funderburg, Anne Cooper (1995), Chocolate, Strawberry, and Vanilla: A History of American Ice
Cream. ISBN 0-87972-691-1.
6. Fredrix, Sarah Skidmore & Emily (November 17, 2009), "Costco nixes Coke products over pricing dispute". Associated Press.
7. Leith, Scott (August 16, 2003). Feds pull second firm into probe of Coke. The Atlanta Journal-Constitution.
Retrieved March 28, 2005.
8. "The History of Pepsi-Cola", sodamuseum.bigstep.com paragraph 8.
doc_901962021.pdf
This study empirically examined the marketing strategies in coca-cola. Specifically, this study seeks to investigate the relationship between the marketing approach and international image of the company. The brand development strategy of Coca Cola comprised redesigning of its brand development policies and techniques to keep up with the changing mindset of its consumers.
G.J .C.M.P.,Vol.3(1):153-157 (J anuary–February,2014) ISSN: 2319 – 7285
153
A CONCEPTUAL FRAME WORK OF MARKETING STRATEGIES IN
COCA-COLA
*Mrs.T.Kalakumari & **Dr.M.Sekar
*Assistant Professor, Department of Commerce, Sri Krishna Arts and Science College
Coimbatore, India
**Assistant Professor, Department of Commerce, CBM College
Coimbatore, India.
Abstract
This study empirically examined the marketing strategies in coca-cola. Specifically, this study seeks to investigate
the relationship between the marketing approach and international image of the company. The brand development
strategy of Coca Cola comprised redesigning of its brand development policies and techniques to keep up with the
changing mindset of its consumers. A part of the brand building technique is also to enhance "purchase frequency". The
company has also invested in various advertisement campaigns often engaging the services of celebrities around the
globe. In addition to the consumers, there is another category of consumers, who increase the consumer base and they
constitute the collectors of the brand. At Coca-Cola, they have a long standing belief that everyone who touches their
business should benefit, thereby inducing them to uphold these values, enabling the Company to achieve success,
recognition and loyalty worldwide.
Keywords: -Brand Building, Brand Image, Brand Loyalty, Customer Loyalty, Customer Satisfaction, Marketing Strategy.
1. Introduction
Coca-Cola is a carbonated soft drink sold in the stores, restaurants, and vending machines of more than 200
countries. It is produced by The Coca-Cola Company of Atlanta, Georgia, and is often referred to simply as Coke (a
registered trademark of The Coca-Cola Company in the United States since March 27, 1944). Originally intended as a
patent medicine when it was invented in the late 19th century by John Pemberton, Coca-Cola was bought out by
businessman Asa Griggs Candler, whose marketing tactics led Coke to its dominance of the world soft-drink market
throughout the 20th century. The company produces concentrate, which is then sold to licensed Coca-Cola bottlers
throughout the world. The bottlers, who hold territorially exclusive contracts with the company, produce finished product
in cans and bottles from the concentrate in combination with filtered water and sweeteners. The bottlers then sell,
distribute and merchandise Coca-Cola to retail stores and vending machines. Such bottlers include Coca-Cola
Enterprises, which is the largest single Coca-Cola bottler in North America and Western Europe. The Coca-Cola
Company also sells concentrate for soda fountains to major restaurants and food service distributors.
The Coca-Cola Company has, on occasion, introduced other cola drinks under the Coke brand name. The most
common of these is Diet Coke, with others including Caffeine-Free Coca-Cola, Diet Coke Caffeine-Free, Coca-Cola
Cherry, Coca-Cola Zero, Coca-Cola Vanilla, and special editions with lemon, lime or coffee.
In response to consumer insistence on a more natural product, the company is in the process of phasing out E211, or
sodium benzoate, the controversial additive used in Diet Coke and linked to DNA damage in yeast cells and hyperactivity
in children. The founder of coca cola was John Dock Pemberton in 1886 when he experimenting with cocaine and wine.
The founder of the name coca cola was Frank Robinson. The Coca-Cola Company is the world's largest beverage
company, refreshing consumers with nearly 500 sparkling and still brands. Globally, they are the primary provider of
sparkling beverages, juices and juice drinks and ready-to-drink teas and coffees. Through the world's largest beverage
distribution system, consumers in more than 200 countries enjoy the Company's beverages at a rate of nearly 1.6 billion
servings a day. With an enduring commitment to building sustainable communities, the Company is focused on
initiatives that protect the environment, conserve resources and enhance the economic development of the communities
where they operate.
2. Marketing Strategies
In order to achieve this mission, Coca Cola create value for all the constraints it serve, including consumers,
customers, bottlers, and communities.
The Coca Cola Company creates value by executing comprehensive business strategy guided by six key beliefs:
? Consumer demand drives everything Coca Cola do.
? Brand Coca Cola is the core business.
? Serve consumers a broad selection of the non-alcoholic ready-to-drink beverages they want to drink throughout
the day.
? Be the best marketers in the world.
? Think and act locally.
? Lead as a model corporate citizen.
G.J .C.M.P.,Vol.3(1):153-157 (J anuary–February,2014) ISSN: 2319 – 7285
154
1. Strategic planning:
In past years, the company had a great success, as the strategy worked which resulted in making Coca Cola
Company the world's leading company.
Company accomplished the crust of its strategy as,
• Worldwide volume increased by 4 percent with strong international growth of 5 percent.
• Earnings per share grew by 82 percent.
• Return on common equity grew from 23 percent to 38 percent this year.
• Return on capital increased from 16 percent in 2000 to 27 percent.
• The company has generated free cash flow of $3.1 billion, up from $2.8 billion.
The marketing strategy for the future is as follows:
• Accelerate carbonated soft-drink growth, led by Coca-Cola.
• Selectively broaden the family of beverage brands to drive profitable growth.
• Grow system profitability and capability together with our bottling partners.
• Serve customers with creativity and consistency to generate growth across all channels.
• Direct investments to highest potential areas across markets.
• Drive efficiency and cost-effectiveness everywhere.
2. Strategies of quality
After Micro and macro analysis Brand "coke" is primarily role
1. Enhance competition moments
2. When people watch cricket
3. Through commercialization
4. Fun time
3. Expanding target market
In last 2 years Coke has come back in aggressive manner.
• Consumer has choice
• Attractive brand name
• Brand differentiating
Consumer Has Got Choice:
Now the consumer has got choice. Because now they know the name of another big brand, though coke is the 2nd
best name but it can get a better position after some time
Attractive Brand Name:
Now the consumers know the Name of Coke, because Coke is the name, which is the most popular after the word
"ok". So people can better differentiate brands with each other.
Brand Differentiation:
Now different companies have got different brand names. So, people can distinguish between brands. Two major
brands "coke" and "Pepsi" also have brand names.
4. Strategies of getting goals:
To increase the price is the least thing, which Coke can adopt. There are so many ways through which Coke can
increase the profits. Some major ways are as follows.
• Volume can be increased
• Interest level of consumers
• To take part in energetic festivals
5. Marketing strategy:
What people want in a beverage is a reflection of who they are, where they live, how they work and play, and how
they relax and recharge. Whether you're a student in the United States enjoying a refreshing Coca-Cola, a woman in Italy
taking a tea break, a child in Peru asking for a juice drink, or a couple in Pakistan buying bottled water after a run
together, we're there for you. We are determined not only to make great drinks, but also to contribute to communities
around the world through our commitments to education, health, wellness, and diversity. Coke strives to be a good
neighbor, consistently shaping our business decisions to improve the quality of life in the communities in which we do
business.
6. Price strategy:
Trade Promotion:
Coca cola company gives incentives to middle men or retailers in way a that they offer them free samples and free
empty bottles, by this these retailers and middle man push their product in the market following "Seen as sold"
Different Price in Different Seasons:
Sometimes Coca Cola Company changes their product prices according to the season. Summer is supposed to be a
good season for beverage industry in Pakistan.
So in winter they reduce their prices to maintain their sales and profit.
7. Promotion strategies:
Getting shelves:
They get or purchase shelves in big departmental stores and display their products in those shelves in attractive
style.
Eye Catching Position:
Salesman of the coca cola company positions their freezers and their products in eye-catching positions. Normally
they keep their freezers near the entrance of the stores.
G.J .C.M.P.,Vol.3(1):153-157 (J anuary–February,2014) ISSN: 2319 – 7285
155
Sale Promotion:
Company also do sponsorships with different college and school's cafes and sponsors their sports events and other
extra curriculum activities for getting market share.
Development Strategy of Coca Cola:
Brand development strategy of Coca Cola has been far reaching and has managed to remain in the limelight ever
since it became a favorite with the non alcoholic drinkers. It has been noticed that brand loyalty is an important factor in
maintaining the number one position. The article below suggests the various brand building techniques of the company.
Founded in the year 1886, the Coca Cola company enjoys the status of being one of the biggest non alcoholic
beverage companies of the world. It has a distribution system, which makes it unique from the rest of the non alcoholic
beverage manufacturers. Over the years, Coca Cola has passed several tests of brand enhancement and the company
makes it a point that the products under the banner Coca Cola continue to invade the minds of the consumers.
The brand development strategy of Coca Cola comprised redesigning of its brand development policies and
techniques to keep up with the changing mindset of its consumers. Earlier, this brand believed in the following:
? Afford ability
? Availability
? Acceptability
However, this brand development strategy of Coca Cola was re worked to stress on the following instead:
? Price value
? Preference
? "Pervasive penetration".
The essence of brand building of the company lies in the fact that it wants its consumers accessibility to be "within
an arm's reach of desire". In an attempt to build its brand identity, as many as 20 brand attributes are tested every month
involving as many as 4000 customers. The brand development strategy of Coca Cola is effective as it has been able to
construct, manage as well as maintain its brand image since yesteryears.
Another reason why this brand has gained unanimous acceptance all around the globe is due to the fact that it has
been able to connect very well with its consumers. This implies brand loyalty. Brand loyalty has been instrumental in
keeping up the brand image of Coca Cola. It believes in shelling out the best so that the consumers are retained by
default. A part of the brand building technique is also to enhance "purchase frequency". The company has also invested
in various advertisement campaigns often engaging the services of celebrities around the globe. In addition to the
consumers, there is another category of consumers, who increase the consumer base and they constitute the collectors of
the brand. The collectors usually indulge in collecting old as well as upcoming logos of Coca Cola, bottles and literary
matter. With regard to the brand development of Coca Cola Zero, the company came out with an advertisement, which
was quite different from the conventional ones. In this regard, (no calorie beverage), it has shelled out three types of
products.
? Coca Cola Classic
? Diet Coke
? Coca Cola Zero.
There are few experts who believe that when Coca Cola had the tag line of "The Real Thing", it was really that but
with the invention of various categories of coke, the "real thing" changes to "many things", and the original flavor is
usually lost. Hence, the brand building strategies should be such that it does not confuse people and is able to retain
consumers despite the fact that several new non alcoholic beverage firms are on the anvil.
3. Marketing Approach
Both the Coca-Cola and Pepsi try to market as part of a life-style. Coca-Cola uses phrases such as "Coke side of
life", while Pepsi uses phrases such as "Hot stuff", to promote the idea
that Pepsi is "in sync" with the cool side of life. Pepsi tries to reach out
to the younger generation by appealing to pop culture. Coca-Cola's is
less flashy and uses a classical appeal, most likely because of Coca-
Cola's long history as the standard for cola beverages.
The operation review according to the segments is as follows:
So the volume is least in the Africa and most in the North America.
The data about the market share of this company area wise is given in
the following table.
The above table shows the geographical earning of the Coca
Cola Company and from this data; we can find out that the customers
of Coca Cola are increasing which is shown by the company’s per
capita income. Unit case equals 24 eight-ounce servings. The column,
which shows the non-alcoholic beverages consist of commercially,
sold beverages, as estimated by the Company based on available
industry sources. The country column is derived from the Company's
unit case volume while the industry column includes nonalcoholic
ready-to-drink beverages only, as estimated by the Company based on
available industry sources.
In Asian population, which is the satisfied customer of Coca Cola, is approximately 3.2 billion and the average
consumer enjoys close to two servings of our products each month. Through an intense focus on Coca-Cola, innovation
and new beverages, the company has achieved volume growth of 10 percent in 2002. With developing economies and
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populations, this region has strong long-term potential, and the company is building an exciting family of beverage
brands in addition to expanding the popularity of our core brands, led by Coca-Cola. In China, for example, sales of
Coca-Cola increased 6 percent.
Fig.1 Coca cola’s international revenue
4. International image of the company
The founder of coca cola was John Dock Pemberton in 1886 when he experimenting with cocaine and wine. The
founder of the name coca cola was Frank Robinson. The Coca-Cola Company is the world's largest beverage company,
refreshing consumers with nearly 500 sparkling and still brands. Globally, they are the No.1 provider of sparkling
beverages, juices and juice drinks and ready-to-drink teas and coffees. Through the world's largest beverage distribution
system, consumers in more than 200 countries enjoy the Company's beverages at a rate of nearly 1.6 billion servings a
day. With an enduring commitment to building sustainable communities, the Company is focused on initiatives that
protect the environment, conserve resources and enhance the economic development of the communities where they
operate.
5. National image of the company
Coca-Cola was the leading soft drink brand in India until 1977, when it left rather than reveal its formula to the
Government and reduce its equity stake as required under the Foreign Regulation Act (FERA) which governed the
operations of foreign companies in India. Coca-Cola re-entered the Indian market on 26
th
October 1993 after a gap of 16
years, with its launch in Agra. An agreement with the Parle Group gave the Company instant ownership of the top soft
drink brands of the nation. With access to 53 of Parle’s plants and a well set bottling network, an excellent base for rapid
introduction of the Company’s International brands was formed. The Coca-Cola Company acquired soft drink brands like
Thumps Up, Goldspot, Limca, Maaza, which were floated by Parle, as these products had achieved a strong consumer
base and formed a strong brand image in Indian market during the re-entry of Coca-Cola in 1993.Thus these products
became a part of range of products of the Coca-Cola Company.In the new liberalized and deregulated environment in
1993, Coca-Cola made its re-entry into India through its 100% owned subsidiary, HCCBPL, the Indian bottling arm of
the Coca-Cola Company.
However, this was based on numerous commitments and stipulations which the Company agreed to implement in
due course. One such major commitment was that, the Hindustan Coca-Cola Holdings would divest 49% of its
shareholding in favor of resident shareholders by June 2002. Coca-Cola is made up of 7000 local employees, 500
managers, over 60 manufacturing locations, 27 Company Owned Bottling Operations (COBO), 17 Franchisee Owned
Bottling Operations (FOBO) and a network of 29 Contract Packers that facilitate the manufacture process of a range of
products for the company. It also has a supporting distribution network consisting of 700,000 retail outlets and 8000
distributors. Almost all goods and services required to cater to the Indian market are made locally, with help of
technology and skills within the company. The complexity of the Indian market is reflected in the distribution fleet which
includes different modes of distribution, from 10-tonne trucks to open-bay three wheelers that can navigate through
narrow alleyways of Indian cities and trademarked tricycles and pushcarts. “Think local, act local”, is the mantra that
Coca-Cola follows, with punch lines like “Life ho to aisi” for Urban India and “Thanda Matlab Coca-Cola” for Rural
India. This resulted in a 37% growth rate in rural India visa-vie 24% growth seen in urban India. Between 2001 and
2003, the per capita consumption of cold drinks doubled due to the launch of the new packaging of 200 ml returnable
glass bottles which were made available at a price of Rs.5 per bottle. This new market accounted for over 80% of India’s
new Coca-Cola drinkers. At Coca-Cola, they have a long standing belief that everyone who touches their business should
benefit, thereby inducing them to uphold these values, enabling the Company to achieve success, recognition and loyalty
worldwide.
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6. Future Prospects
The focus seems to be on ‘mobile marketing services’ in the Indian marketplace. Realizing the significance of this
mode of marketing, marketers are increasingly opting for mobile marketing techniques to connect with their target
audience—directly. And with around 33 million subscribers in the country, the concept of mobile marketing is rapidly
gaining momentum, observe new media analysts.
For instance, Coca-Cola India is planning to launch an aggressive SMS-based campaign to promote its new launch
‘Coke Vanilla’ along with its mass media advertising plans within a few days. Recognizing the potential of this medium,
Coke had in fact initiated a host of SMS-based promotions almost two years ago, informs Coca-Cola India director
(marketing) Mumbai Sharda Agarwal.
7. Conclusion
Recent research shows that Coca-Cola is the largest consumer brand name in the world. The popularity of the
product means that most of the populations globally know about the product. As a result, Coca-Cola is now in a position
where it does not have to spend as heavily on creating a brand image since it is a very established product.Coca Cola has
various methods of packaging such as can, plastic bottles, glass bottles etc. This means that Coke has enough variety
within is product packaging range to meet the various demands of its consumers.Due to the high caffeine level and the
distinct taste and brand image, the customer loyalty for Coke is very high. Coke is perceived as the most premium
product within the cola industry.
8. References
1. Biswas, A., & Sen, A. (1999), Coke vs Pepsi: Local & Global Strategy. Economic & political weakly, 34 (26), 1701-1708.
2. Basu, P.,“Consumer Decision Analysis for purchase of Fruit Drinks”, Symbiosis Institute of Business Management, Pune.
3. Consumer Preference Coca Cola versus Pepsi-Cola © Global Journals Inc © 2012.
4. Funderburg, Anne Cooper (2002), Sundae Best: A History of Soda Fountains. The University of Wisconsin
Popular Press. ISBN 0-87972-853-1.
5. Funderburg, Anne Cooper (1995), Chocolate, Strawberry, and Vanilla: A History of American Ice
Cream. ISBN 0-87972-691-1.
6. Fredrix, Sarah Skidmore & Emily (November 17, 2009), "Costco nixes Coke products over pricing dispute". Associated Press.
7. Leith, Scott (August 16, 2003). Feds pull second firm into probe of Coke. The Atlanta Journal-Constitution.
Retrieved March 28, 2005.
8. "The History of Pepsi-Cola", sodamuseum.bigstep.com paragraph 8.
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