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Integrated Marketing Communication


Factors Influencing Advertising Budget

Nirzari Mehta A-40

Kalgi Desai B-11
Niyati Desai B-13
Reema Gandhi B-21
Sohil Ghoghari B-22
Parth Rajyaguru B-51
Dipak Savaliya B-53

Submitted to: Prof. Jinal Parikh

Amrut Mody School of Management
Factors Influencing Advertising Budget Coco Cola

Hidden Product Qualities:

Coca colas formula (R & D Department) and market share of the company is not disclosed
through advertisement to the consumers. That will be Hidden product Quality of Coca Cola

Hence coca cola product and advertisement both are accepted by consumers so the budget
can be high to remain consistent in market for advertisement.

Product Price:

During special occasion coca cola reduces its price up to 5 rupees on 1.5ltr bottle through
advertisement to compete in the market otherwise the pricing is the same to its competitors so
the budget for advertisement will be high to attract more no of customers for having coca

Purchase Frequencys:

As coca cola is most chosen FMCG brand globally consumed by 5.3 billion consumers so
they will spend high advertisement, by creating new advertisement to increase its brand
awareness and equity amongst consumers for new products (Diet coke). Also they are using
celebrities to attract youth and other consumer so budget will be more to make people for
buying coca cola.

Product Differentiation:

For survival and sustain in market and to compete with other brands like Pepsi they have to
increase the budget as coca cola is most consumed beverages and they came up with different
variety (Diet coke, Coke Zero, Minute Maid) so they need to apply multi channel
advertisement campaigns. So budget has to be more on advertisement to compete.

According to 2015 data coca cola will increase their advertisement budget by $1 billion n
upcoming next 3 years for remaining unique in market.

Product Durability:

Symbol or logo of coca cola for fun and joy

They believe in design to grow
The bottle shape of coca cola to maintain high standard
They adopted franchisee model
They used celebrities to attract the consumers
New products as in new variety of Coca cola

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Product Life Cycle:

Coco coal is on the maturity stage right now, the company is giving special attention to all its
product however overall sales growth had reduced little bit so it will spend more on
advertisement in order to increase the sales

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