REPORT

ON
“Brand Loyalty Of Coca-Cola”

Submitted By
Name: Hari Shankar Jha
Enrolment No.: 01715603917
Semester: MBA- IV
Batch: 2017-2019

Dr. Akhilesh Das Gupta Institute of Technology and

Management
(Affiliated to GGSIPU)
FC-26, Shastri Park, New Delhi-110053
 Brand Loyalty Of Coca-Cola
Coca-Cola® is an iconic global brand that has exemplified brand loyalty throughout its 125 year
history of success. The brand has retained its popularity amidst economic downturns, changing
consumption patterns, and increased concern over healthy eating and drinking habits.

1) Maintaining the Connection Between Loving the Brand and Consuming the
Products
Loving the brand and consuming the products are not one in the same… but they should be. We
all love the famous polar bears that grace our TV screens during the holidays, the retro glass
bottles and classic red logo, but we can love all of that without drinking Coke products. Therein
lies the potential disconnect between brand love and consumption.

It’s the job of Coca-Cola’s marketing team to ensure that this potential disconnect doesn’t
become a reality. According to Christy Amador – Senior Communications Manager at Coca-
Cola – the company uses a variety of methods to achieve this goal.

The first method is advertising. Ads show images of the Coca-Cola brand, but also customers
drinking and enjoying Coke products as a part of their lives.

Additionally, Coca-Cola arranges product tastings in stores. This enables customers to enjoy the
products prior to purchasing them, which serves as another way to associate the brand with
product consumption. Nothing inspires brand loyalty like giving customers a product they enjoy
from a brand they love!

2) Maintaining Flexibility in a Changing Environment

In the past 15 years the general public has become increasingly concerned with health and
consumption of sugar, which clearly impacts the consumption of Coca-Cola ’s flagship product –
regular Coke. Coca-Cola® responded to this change deftly with the development of new products
and a change in the marketing strategy for older products.

The company developed Coke Zero (a zero calorie alternative that tastes more like regular Coke
than Diet Coke), and Coke Life (a naturally sweetened low calorie alternative to regular Coke).

In terms of changes in marketing strategy, the company has expanded the brand. Coke sells
many products outside of soda including all-natural juices, high-quality milk, Honest Tea, and
other drinks with health-related and performance benefits. They now market these products
under the Coke brand name instead of marketing them separately. This informs customers that
Coke products fit a wide variety of consumption habits and preferences. The company’s
flexibility in modifying the brand and products ensure that the Coca-Cola® brand never goes out
of style!
3) Making the Products More Premium
Coca-Cola has changed customers’ perception of the product by positioning Coke products as
more premium, rather than bargain-priced and mass-produced. This is largely done through
packaging.

Rather than offering Coke products in extra large containers and cans, the products are now
offered in smaller containers, such as miniature aluminum cans and glass bottles. The company
has also manufactured cans and bottles in a variety of colors.

Consuming products from these new packaging concepts gives customers a more unique
experience each time they open and consume a Coca-Cola® product. As a result, the company
has seen a dramatic increase in sales from these sizes and formats.

4) Giving Back to the Community

Coca-Cola contributes to the communities in which its products are sold in a variety of ways,
and the residual impact of this is an increase in brand loyalty. Since its inception in 1984,
The Coca-Cola Foundation has given back more than $820 million to enhance the sustainability
of local communities worldwide.

The company is the largest private employer in Africa, and also empowers women via its 5 by 20
program, which pledges to economically empower 5 million women by 2020. Lastly, the
company pledged to give 100% of the water it used back to nature (via water reclamation
programs) by 2020, but has already reached this goal in 2016.

These initiatives are genuine and reach far and wide. Coca-Cola® touches more than customers’
taste buds. It touches their communities, homes, families and most of all – their hearts. If that
wouldn’t inspire brand loyalty, it’s hard to imagine what would!