THE COCA-COLA COMPANY.

The Coca-Cola Company is an American multinational corporation, and manufacturer, retailer,

and marketer of non-alcoholic beverage concentrates and syrups. The company is best known
for its flagship product Coca-Cola, invented in 1886 by pharmacist John Stith Pemberton in
Atlanta, Georgia. The Coca-Cola formula and brand were fully bought with US$2,300 in 1889
by Asa Griggs Candler, who incorporated The Coca-Cola Company in Atlanta in 1892.

The company headquartered in Atlanta, Georgia, but incorporated in Wilmington, Delaware

has operated a franchised distribution system since 1889 the Company largely produces syrup
concentrate which is then sold to various bottlers throughout the world who hold an exclusive
territory.

The company owns its anchor bottler in North America, Coca-Cola Refreshments. The
company's stock is listed on the NYSE and is part of the DJIA, the S&P 500 index, the Russell
1000 Index, and the Russell 1000 Growth Stock Index.

HISTORY.
In 1886, pharmacist John Pemberton from Columbus, Georgia invented the original Coca-Cola
drink and sold it as a medicinal beverage. Pemberton's bookkeeper, Frank M. Robinson, is
credited with naming the products and creating its logo.

Robinson chose the name Coca-Cola because of its two main ingredients (coca leaves and kola
nuts) and because it sounded like an alliteration. John Pemberton had taken a break and left
Robinson to make and promote, as well as sell Coca-Cola on his own. He promoted the drink
with the limited budget that he had and succeeded.

In 1889, American businessman Asa G. Candler completed his purchase of the Coca-Cola
formula and brand from Pemberton's heirs. In 1892, the Coca-Cola Company was formally
founded in Atlanta by Candler. By 1895, Coca-Cola was being sold in every state in the union.
In 1919, the company was sold to Ernest Woodruff's Trust Company of Georgia.

Coca-Cola's first ad read "Coca Cola. Delicious! Refreshing! Exhilarating! Invigorating!"

Candler was one of the first businessmen to use merchandising in his advertising strategy. As
of 1948, Coca-Cola had claimed about 60% of its market share. By 1984, The Coca-Cola
Company's market share decreased to 21.8% due to new competitors, namely Pepsi .
ACQUISITIONS.
The company has a long history of acquisitions.

 Coca-Cola acquired Minute Maid in 1960.

 In 1982, it acquired the movie studio Columbia Pictures for $692 million but Columbia
was sold to Sony for $3 billion in 1989.
 It acquired the Indian cola brand Thums Up in 1993, and Barq's in 1995.
 In 2001, it acquired the Odwalla brand of fruit juices, smoothies, and bars for $181
million.
 In 2007, it acquired Fuze Beverage from founder Lance Collins and Castanea Partners
for an estimated $250 million.
 The company's 2009 bid to buy Chinese juice maker Huiyuan Juice Group ended when
China rejected its $2.4 billion bid, on the grounds the resulting company would be a
virtual monopoly. Nationalism was also thought to be a reason for aborting the deal.
 In 2011, it acquired the remaining stake in Honest Tea, having bought a 40% stake in
2008 for $43m.
 In 2013, it finalized its purchase of ZICO, a coconut water company.
 In August 2014, it acquired a 16.7% (currently 18.5% due to stock buybacks) stake in
Monster Beverage for $2.15 billion with an option to increase it to 25%, as part of a
long-term strategic partnership that includes marketing and distribution alliance, and
product line swap.
 In 2015, the company took a minority stake ownership in the cold pressed juice
manufacturer, Suja Life LLC.
 In December 2016, it bought many of the former SABMiller's Coca-Cola operations.
 The Coca-Cola Company owns a 68.3% stake in Coca-Cola Bottlers Africa. Coca-Cola
Bottlers Africa's headquarters located in Port Elizabeth, South Africa.
 In 2017, The Coca-Cola Company acquired Mexican sparkling water brand Topo
Chico.
 On August 31, 2018, it agreed to acquire Costa Coffee from Whitbread for £3.9bn. The
acquisition closed on 3 January 2019.
 The Coca-Cola Company acquired a 40% stake in Chi Ltd on January 30, 2016. The
Coca-Cola Company acquired the remaining 60% stake in Chi Ltd on January 30, 2019.
 During August 2018 The Coca-Cola Company acquired Moxie for an undisclosed
amount.
 On September 19, 2018 The Coca-Cola Company acquired Organic & Raw Trading
Co. Pty Ltd the manufacturer of MOJO Kombucha in Willunga, Australia.
 On August 14, 2018 The Coca-Cola Company announced a minority interest in Body
Armor.
 On October 5, 2018 The Coca-Cola Company acquired a 22.5% stake in MADE Group
from Luke Marget, Matt Dennis and Brad Wilson the company's 3 founders. The Coca-
Cola Company owns a 30.8% stake in Coca-Cola Amatil ltd, therefore The Coca-Cola
Company owns a further 6.93% stake in MADE Group through its ownership stake in
Coca-Cola Amatil ltd.
 COCA-COLA.
Coca-Cola, or Coke, is a carbonated soft drink manufactured by The Coca-Cola Company.
Originally marketed as a temperance drink and intended as a patent medicine, it was invented
in the late 19th century by John Stith Pemberton and was bought out by businessman Asa
Griggs Candler, whose marketing tactics led Coca-Cola to its dominance of the world soft-
drink market throughout the 20th century. The drink's name refers to two of its original
ingredients: coca leaves, and kola nuts (a source of caffeine). The current formula of Coca-
Cola remains a trade secret, although a variety of reported recipes and experimental recreations
have been published.

The Coca-Cola Company produces concentrate, which is then sold to licensed Coca-Cola
bottlers throughout the world. The bottlers, who hold an exclusive territory contracts with the
company, produce the finished product in cans and bottles from the concentrate, in combination
with filtered water and sweeteners. A typical 12-US-fluid-ounce (350 ml) can contain 38 grams
(1.3 oz) of sugar (usually in the form of high fructose corn syrup). The bottlers then sell,
distribute, and merchandise Coca-Cola to retail stores, restaurants, and vending machines
throughout the world. The Coca-Cola Company also sells concentrate for soda fountains of
major restaurants and foodservice distributors.

The Coca-Cola Company has on occasion introduced other cola drinks under the Coke name.
The most common of these is Diet Coke, along with others including Caffeine-Free Coca-Cola,
Diet Coke Caffeine-Free, Coca-Cola Zero Sugar, Coca-Cola Cherry, Coca-Cola Vanilla, and
special versions with lemon, lime, and coffee. Based on Interbrand's "best global brand" study
of 2015, Coca-Cola was the world's third most valuable brand, after Apple and Google.In 2013,
Coke products were sold in over 200 countries worldwide, with consumers drinking more than
1.8 billion company beverage servings each day. Coca-Cola ranked No. 87 in the 2018 Fortune
500 list of the largest United States corporations by total revenue.

Coca-Cola is the world's leading soft drink maker and operates in more than 200 countries
around the world. It sells a variety of sparkling and still beverages. It generates 60% of its
revenue and about 80% of its operating profit from outside the United States. It has strong
brand recognition across the globe. According to business insider, approximately 94% of the
world population is aware of the red & white logo of Coca Cola.
 MISSION, VISION & VALUES.

MISSION.

Our Roadmap starts with our mission, which is enduring. It declares our purpose as a company
and serves as the standard against which we weigh our actions and decisions.
 To refresh the world.
 To inspire moments of optimism and happiness.
 To create value and make a difference.

VISION.

Our vision serves as the framework for our Roadmap and guides every aspect of our business
by describing what we need to accomplish in order to continue achieving sustainable, quality
growth.
 People: Be a great place to work where people are inspired to be the best they can be.
 Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and
satisfy people's desires and needs.
 Partners: Nurture a winning network of customers and suppliers, together we create
mutual, enduring value.
 Planet: Be a responsible citizen that makes a difference by helping build and support
sustainable communities.
 Profit: Maximize long-term return to shareowners while being mindful of our overall
responsibilities.
 Productivity: Be a highly effective, lean and fast-moving organization.

WINNING CULTURE.

Our Winning Culture defines the attitudes and behaviors that will be required of us to make
our 2020 Vision a reality.

VALUES.

Our values serve as a compass for our actions and describe how we behave in the world.
 Leadership: The courage to shape a better future
 Collaboration: Leverage collective genius
  Integrity: Be real
 Accountability: If it is to be, it's up to me
 Passion: Committed in heart and mind
 Diversity: As inclusive as our brands
 Quality: What we do, we do well

FOCUS ON THE MARKET.

 Focus on the needs of our consumers, customers and franchise partners

 Get out into the market and listen, observe and learn
 Possess a world view
 Focus on execution in the marketplace every day
 Be insatiably curious

WORK SMART.

 Act with urgency

 Remain responsive to change
 Have the courage to change course when needed
 Remain constructively discontent
 Work efficiently

ACT LIKE OWNERS.

 Be accountable for our actions and inactions

 Steward system assets and focus on building value
 Reward our people for taking risks and finding better ways to solve problems
 Learn from our outcomes -- what worked and what didn’t

BE THE BRAND.

 Inspire creativity, passion, optimism and fun

 DIFFERENT PRODUCTS OF COCA-COLA.

REFRESHMENTS
• COCA-COLA
• SPRITE
• FANTA

WELLNESS
• CAPRI-SUN 100%
• OCEAN SPRAY

STILLS
• GLACEAUVITAMINWATER
• 5 ALIVE

SPORTS
• POWERADE ION4
• POWERADE ZERO

ENERGY
• MONSTER
• POWERADE ENERGY

HYDRATION
• SCHWEPPERS ABBEY WELL
• ROSE'S

ADULT SOCIALIZING
• APPLETISER FAMILY
• SCHWEPPERS MIXERS
 A STUDY ON MARKETING STRATEGY OF COCA-COLA.
Marketing strategy is a long-term, forward-looking approach to planning with the fundamental
goal of achieving a sustainable competitive advantage. Every business irrespective of its size
needs to have definite goals in order to expand the business. These planned out goals will help
the business sustain itself in the ever growing competitive market and also to increase its sales.
Marketing strategy is nothing but the pavement to define your goals so that you can direct your
efforts in the right direction. A well-defined strategy should not only help you to achieve your
goals but also, help you to reach the customer’s goals and expectations from you.
A marketing strategy usually consists of some default points for its establishment. The most
important of those being the organisational short-term and long-term goals. This is followed
by analysis of the market the organisation plans to establish its business into. For a service-
based industry, targeting the relevant customers and expanding the client domain is of utmost
importance. Also, making a SWOT (strengths, weaknesses, opportunities and threats) analysis
of provided services or sold products will help the organisation to analyse itself. A successful
marketing strategy will create a win-win situation for both, customer and the organisation.
Needless to say, customer satisfaction will in turn increase the organisation’s brand value and
create an edge over the competitor. It helps in creating a realistic plan of approach which states
the methods to achieve the stated goals. Once the strategy and plans are ready, the company
can search for ways to implement the plans making the process highly efficient.
Most of the successful business establishments make optimum use of marketing strategy for
increased profits. Beverage industry forms a major part of total sales, both domestic and
international, worldwide. With the continuous and dynamic demand of different beverages,
having accurate marketing strategy is quite important for beverage industries. An example for
such successful implementation of marketing strategy is Coca Cola. Coca Cola is one of the
most leading company in soft drink beverage industry. It contributes to the highest sales of soft
drinks globally.
Coca Cola was established in 1886 by Dr. John S. Pemberton, an Atlanta pharmacist, when he
tried to create a distinctive syrup which can be sold at soda fountains. Initially, the syrup was
mixed with carbonated water and then consumed. Frank M. Robinson, Dr. Pemberton’s partner
and book keeper, termed the name „Coca Cola‟ thinking that the two „Cs‟ would sound well
when advertised. He also designed the distinctive script in which the trademark is created,
which is still used today. Prior to Dr. Pemberton’s death in 1888, Coca Cola was sold to various
parties with the majority of interest sold to Atlanta businessman, Asa G. Chandler. Mr.
Chandler is credited with founding the layout of the Coca Cola’s empire. Under his leadership,
Coca Cola was sold in soda fountains outside Atlanta. In 1894, Joseph Biedenharn installed
bottling machinery and became the first one to put Coca Cola in bottles.
Since then, the journey of Coca Cola has always been on success in expansion and profit
making. To create a unique place among the consumers and to prevent piracy, it hosted a
competition to redesign a new bottle and later it started manufacturing its own distinct bottle.
The shape of the bottle is still approximately retained in the present bottles. Later, since 1886
it changed its logo almost over 10 times to suit the time and people’s liking. Also, over the
years it changed 50 slogans and also made slight change in shape of bottle. From a humble
beginning of sales from 9 bottles per day back in 1886, today Coca Cola has succeeded to
increase its sales to 1.9 billion servings per day. Today, approximately 94% of the world
population is aware of the red & white logo of Coca Cola.
The sales of bottles varied largely across the globe, highly depending upon various market
factors as per the country. The major affecting market factors included: per capita income of
the people and cultural & linguistic differences. In some countries, govt. policies led to either
increase or decrease in sales. The varying geographical factors led to challenges in supplying
the bottles at remote places. However, overcoming all the difficulties, Coca Cola managed to
supply its bottles in every nook and corner.
Presently, Mr. James Quincey heads the Coca Cola Company as a CEO, headquartered at
Atlanta and T Krishna Kumar heads the Coca Cola India company. Also, Christina Ruggiero
was recently named CEO of Hindustan Coca-Cola Beverages (HCCB), the largest bottling
partner of The Coca-Cola Company in India[3]. Coca Cola is presently spread worldwide over
above 200 countries and 5 operating regions, (Asia pacific, Europe, Middle East & Africa,
Latin America, and North America). With over 1 lakh associates worldwide and together with
their bottling partners, Coca Cola ranks among the world’s top 10 private employers with more
than 7 lakh system employees. Coca Cola leads the beverage industry with a portfolio featuring
21 billion-dollar brands. Globally it is the No.1 provider of sparkling beverages, juices and
juice drinks and ready-to-drink coffees.
 STRATEGIC ACTIONS.
On a wider scale, Coca Cola introduced five strategic actions to achieve its goals which are as
follows:
1. MARKET SEGMENTATION:
Market segmentation is a strategic method to divide the market based on volume and capacity
of buyers and using appropriate methods to maximise sales and thereby, earning profits from
each segment. Coca Cola used this technique to segment the market according to emerging
markets, developing markets and developed markets since every country in the 200 plus
countries play a crucial rolein the growth.
In emerging markets, the primary focus was on increasing the sales volume rather than profits
so that it increased its customer domains and make a strong foundation for future business.
This was made possible by selling beverages at economical rates so that higher no. of masses
can enjoy it. In developing markets, a balance was made between volume sold and pricing,
whereas, in developed countries the focus was more on profit making by offering more small
packages and premium packages like glass and aluminium bottles. In 2015, globally, price/mix
rose 2 percent as did volume, helping increase organic revenue 4 percent. Coca Cola also
gained worldwide value share in their industry.

2. BRAND ESTABLISHMENT AND CUSTOMER RELATIONSHIP:

Brand establishment becomes vital while expanding an organisation’s portfolio. Consumers
tend to trust a branded product and often spend an extra penny upon it rather than choosing an
unheard product. Brand name is also viewed as a status quo in developed markets. Coca Cola
made a right decision to invest in developing the brand value by improving and modernising
the advertisements by investing over $250 million. These ads focused on creating an impact
upon people and changed the perspective of Coca Cola from an occasional drink to an integral
part of people’s life.
At the same time, investment was made to improve the position in energy drink category, juices
and also healthy drinks by making strategic partnerships with Monster Beverage Corporation,
Suja (a line of premium organic juices), Fair life ultra-filtered milk etc. A major breakthrough
took place in 2015 when Coca Cola developed its first global marketing campaign. The primary
objective was to establish the „one-brand‟ strategy to bring all its sub products under one brand
name “Coca-Cola”.
The slogan „Taste the Feeling‟ launched in early 2016 emphasizes the refreshment, taste, uplift
and personal connections that are all part of enjoying an ice-cold Coca-Cola. For the fitness-
oriented consumers, it sent a broader message that they can enjoy Coca Cola by choosing an
appropriate variety of drink with varying number of calories in caffeine.

3. INCREASING FINANCIAL EFFICIENCY:

For any business, the ultimate goal is to have maximum returns for the investments with
maximum productivity. In order to achieve this, financial efficiency plays an important role.
Coca Cola made efforts to achieve financial flexibility by implementing a solution known as
„zero-based work‟- wherein annual budget is revised from zero and must be justified annually
at the end rather than simply carrying over at levels established in the previous years.
Also, savings mere made by choosing to advertise carefully and cut down expenses in non-
media marketing like in-store promotion. Overall $600 million were realised by productivity
improvement in 2015 which were further used in brand making, business improvement and
providing decent dividends to shareowners. The organisation plans to use the same process to
further increase the productivity and make continuous savings, and treat it as a day-by-day
process of becoming leaner and better.

4. INCREASING PROCESS EFFICIENCY:

An organisation can be termed to be fully efficient when its process time is minimised without
affecting the quality. Process time plays an important role when the demand is suddenly
increased.
Inefficient pre-planning and process planning will lead to disruption in supply of high demands.
In a continuous evolving market with highly volatile consumer demands both in quantity and
preferences, innovative supply chain markets, speed, precision and empowered employees
decide the winner. Coca Cola took steps to reshape their business processes and searched for
redundant areas.
It removed a layer of functional management and connected our regional business units directly
to headquarters. Further investigation led to removal of process roadblocks and barriers which
finally made it faster, smarter and more efficient. Focus was also made to interact more with
employees to make work a fun-filled, exciting and career fulfilling environment. Employees
were motivated to nourish curiosity, learning, innovation and growth.
5. FOCUSING CORE COMPETENCIES AND BUSINESS MODELS:
Coca Cola has developed a business model with portfolio including more than 500 brands
ranging from sparkling beverages to value-added dairy and many more. Over a billion dollars
annually are generated together by few of these in retail sales. It has managed to gather a variety
of consumers thereby generating profits from all segments irrespective of market conditions.
Its primary core competency has been the ability to manage a huge system of independent
bottling partners and also acquiring a number of bottlers under its own. The primary aim has
been to improve performance of bottling partners by increasing productivity, performance,
optimizing manufacturing and distribution systems and finally refranchising the independence
of bottling territories.
All this effort finally creates value for retail and restaurant customers. In 2015, the organisation
took major steps in North America to make company-owned bottling territories independent.
The plan was to refranchise the North America bottling system by end of 2017. A new unified
bottling partner was planned to set up in Western Europe and accordingly, a transaction was
announced. Further, improvement and refranchising has been planned for bottling system in
Southern Africa, East Africa, Indonesia and China. Coca Cola plans to reduce company-owned
bottlers to 3 percent from 18 percent of the global volume.
SEGMENTATION, TARGETING, POSITIONING OF COCA COLA.

Segmentation helps the brand to define the appropriate products for specific customer group;
Coca Cola doesn’t target a specific segment but adapts its marketing strategy by developing
new products.

Similarly it uses a mix of undifferentiated & mass marketing strategies as well as niche
marketing for certain products in order to drive sales in the competitive market. Its Cola is
popular worldwide & is liked by people of all age groups while the diet coke targets niche
segment for people who are more health conscious.

Coca Cola uses competitive positioning strategy to be way ahead of its competitors in the Non-
alcoholic beverages market.

MARGET SEGMENTATION.

1. GEOGRAPHIC SEGMENTATION:
Geographic segmentation calls for dividing the market into different geographical units
such as regions, cities, or neighbourhood. Coca-Cola has a countrywide network of
product distribution but the company segments more in urban and suburban areas as
compared to rural areas.

2. DEMOGRAPHIC SEGMENTATION:
In demographic segmentation, the market is divided into groups on the basis of
variables such as age, family life cycle,, occupation, education, religion, race,
generation, nationality, and social class. Demographic variables are the most popular
base of Coca-Cola Company for distinguishing their customer groups. The reason is
that consumer wants, preferences, and usage rates are often associated with
demographic variables. Another is that demographic variables are easier for Coca-Cola
to measure because they can evaluate or conduct surveys for the demographic
segmentation
 i) AGE AND LIFE-CYCLE STAGE:
Coca-Cola Consumer wants and abilities change with age. Age and life cycle can
be tricky variables because there are different needs and wants as accord to the age
of a person. The main sector in which Coca-Cola Company targets is the youth
because there is a much need of refreshment and energizers to cope up with their
daily activities.

ii) GENDER:
Gender is also an issue needed to be given prior by Coca-Cola. Men and women
tend to have different attitudinal and behavioral orientations, based partly on genetic
makeup and partly on socialization practices. Coca Cola targets both genders with
its wide variety of drinks. This market is relatively large and is open to both genders,
thereby allowing greater product diversification.

3. PSYCHOGRAPHIC SEGMENTATION:
In psychographic segmentation, Coca Cola buyers are divided into different groups on
the basis of lifestyle or personality or values. People within the same demographic
group can exhibit very different psychographic profiles, for that reason Coca Cola
Company designed and made product which are suitable for their personality.

i) LIFESTYLE:
People exhibit many more lifestyles than are suggested. People differ in attitudes,
interest, activities, and these affect the goods and services they consume. Coca-Cola
Company presented products which are suitable for modern, busy life style
(shortage of time) and mobile generation.

ii) PERSONALITY:
Coca Cola Company is using personality variables to segment markets. They award
Coca-Cola products with a brand personality that corresponds to a target consumer
personality.

4. BEHAVIOURAL SEGMENTATION:
In behavioural segmentation, Coca Cola buyers are divided into groups on the basis of
their knowledge of, attitude toward, use of, or response to a product. Many marketers
 believe that behavioral variables-occasions, benefits, user status, usage rate, loyalty
status, buyer-readiness stage, and attitude are the best starting points for the
construction of market segments.

i) OCCASIONS:
Coca Cola consumers can be distinguished according to the occasions when they
develop a need, purchase a product, or use a product. Occasion’s segmentation can
help firms expand product usage.

ii) BENEFIT SOUGHT:

Sometimes, for the promotion strategy of Coke, Coca-Cola Company introduces
prizes in the top cover.

TARGET MARKET.
We make our branded beverage products available to consumers in more than 200 countries
through our network of Company-owned or -controlled bottling and distribution operations,
independent bottling partners, such as distributors, wholesalers and retailers as the world’s
largest beverage distribution system.
The target market for Coca cola is very wide as it satisfies the needs for many different
consumers, ranging from the healthy diet consciousness through Diet Coke to the average
human through its bestselling drink regular Coke.
The primary mark market for Coca-Cola is multicultural young person of age 13-24, which
frequently known as heavy soft drink ingestion group. This consumer group is older sufficiency
to do self-determination on purchases and most likely to follow the merchandise as value of
Coca-Cola emphasis cool and felicity which compatible with their life style
 ANALYSIS OF WORLD WIDE MARKET.
Coca Cola’s success was not achieved over-night and it had to overcome a number of obstacles
in the process. It took a great deal of strategy, marketing skills, quality maintenance and
patience to reach at this stage. The paper focuses primarily on a country from all three types of
markets viz. developed (USA), developing (India) and under-developed (Africa).

1. DEVELOPED MARKETS (USA)

Origin:-
An Atlanta pharmacist named Dr. John S. Pemberton was the inventor of Coca Cola when he
invented his drink in 1886 with the original motive to cure most common ailments basing it on
cocaine from the coca leaf and caffeine-rich extracts of the kola nut. With new legislature
passed in 1888 stating the prohibition of use of alcohol, Dr. Pemberton had to change the
previous drink recipe. Dr. Pemberton’s bookkeeper, Frank M. Robinson, is credited with
designing the trademarked logo and with naming the beverage “Coca-Cola”.
Prior to Pemberton’s death in 1888, he sold portions of his company to a few different parties
with a majority of the business being sold to a local Atlanta businessman named Asa G.
Candler. By 1889, Candler acquired the rights to the formula as well as the “Coca-Cola” name
and brand. He incorporated The Coca-Cola Company in 1892 and expanded distribution of the
Coca-Cola syrup concentrate to soda fountains beyond Atlanta.

Difficulties:-
Low calorie cola performance in category of coca cola’s zero calorie drinks and diet drinks in
the sense of sweetness. While Coca Cola dominates the emerging markets, it has seen increased
competition from domestic players, with global competitors such as Pepsi Co. also looking to
grow in these regions as well.
With more and more people nowadays trying to be aware of fitness and health problems, Coca
Cola had to launch itself in products to substitute unhealthy ingredients in drinks without
affecting the taste of drinks.

Marketing strategy:-
Coca-Cola began distributing bottles as „Six-packs‟, encouraging customers to purchase the
beverage for their home. In 1928, Coca-Cola was introduced as a sponsor for the Olympics
Games, giving the company even more international exposure and starting a tradition that
continues to this day.
In 1941, the U.S. entered World War II, and the demand for Coca-Cola from U.S. soldiers
serving overseas increased tremendously. It always took consideration of the events currently
happening in country like making advertisement involving Santa clause with his gift bag during
Christmas, giving sponsorship to famous sports such as NBA and NESCAR.
At the beginning the first bottles of Coca Cola was sold at a price 5 cent in US. Low possible
cost for the product formed the key for the Coca Cola in US of his sell and promotion.

2. DEVELOPING MARKETS (INDIA)

Origin:–
Coca Cola launched itself in the Indian market in 1956 and made huge revenue operating under
100% foreign equity. Indian FOREX act was implemented in the year 1974 during the Prime
Minister Indira Gandhi reigned, which stated that foreign companies selling consumer goods
must invest 40% of its equity stake in INDIA in its Indian associates. Coca Cola agreed with
investing 40% foreign equity but stated that they would still hold full power in technical and
administrative units with no local participation allowed.
This demand was against the foreign exchange act. The government instructed coca cola to
either ready with a new plan but in 1977 Coca Cola left the INDIA. In 1993 Coca Cola re-
entered after government approval, due to the new liberalization policies that were coming to
INDIA. The foreign exchange act which had once prevented companies from keeping too much
equity had now been completely modified.

Difficulty:-
Coca-Cola is facing a slew of challenges in India. A debate over water usage, accusations over
pesticide content and sweeteners, as well as more general concerns in India over the un-
healthiness of fizzy drinks are plaguing the brand. Coca-Cola faces tough competition from
PepsiCo as well as local brands, although such local companies are largely limited to their
home states rather than having a large nationwide presence.

Marketing strategy:–
In order to establish a strong base, Coca Cola India took over Parle foods and acquired local
popular brands like Thums up, Limca, Mazaa etc. This combination of local and global brands
enabled Coca Cola to exploit the benefit of global branding.
Diversification in product is the key for coca cola in INDIA. Coca-Cola has succeeded in spite
of an extremely price-sensitive consumer with entrenched beverage consumption habits – tea,
nimbu-paani (lemonade) and a fragmented and geographically dispersed retail market, and a
high tax environment. Coca cola follows intensive brand building programme.
The company focuses on understanding the Indian consumer, and in using these local insights
to build powerful connect for its brands. Coca-Cola experienced unprecedented growth rates
(above 40 per cent) in 2002 by virtue of its Affordability Strategy.
It continues to grow in strong double digits since then. It has also significantly grown its
consumer base from 162 million in 2001 to 233 million in 2004. Coca-Cola India minimised
its capital needs by meeting new manufacturing capacity needs through external co-packers,
outsourcing its distribution and meeting its in market-refrigeration and cooling needs by giving
incentives to retailers to self-fund the same through its “Own Your Fridge Scheme”. The
company had also decided to expand its retail network by 18 per cent during every financial
year.

3. UNDER DEVELOPED MARKETS (AFRICA)

Origin:–
Africa started importing Coca Cola in 1928 and bottling started in 1940. Africa accounts for
7% of the daily of The Coca Cola Company products consumed worldwide, daily, which
accounts to some 120mn Coca Cola products served across the African continent daily. The
number increases daily with Africa’s exponential growth.

Difficulty:-
The biggest difficulty faced by Coca Cola in any under developed market like Africa is the low
demand for a beverage product or typically any other product which is deciphered as
‟unnecessary‟ by the public, since, it is not one of the primary products useful for livelihood.
Also, transportation of products at long distances becomes a challenge since the facilities are
limited.
Marketing strategy:–
To overcome the first major challenge of the demand, the pricing has to be as low as possible
so that more public is attracted towards the products. Big corporations usually first try to know
their customers and their choices & preferences. Since the literacy is low and subsistence
agriculture is still a dominant industry in under developed markets, sophisticated marketing
and brand strategizing have little meaning. Also, Coca Cola has tried to establish its name in
the better regions by the initiative of Coke Studio wherein new artists are given an opportunity
to present themselves. Coke Studio with the motto „one studio, one brand, one great continent‟
has made a widespread reach among the masses. Today The Coca-Cola Company, along with
its 46 bottling partners, operates in all countries and territories in Africa and in each the
business is a local enterprise.
 GLOBAL COMPETITION.
Every business has to face competition in this innovative world and few competitions can be
so challenging that it could result in the devastation of an empire. Although there are many
beverage manufacturers, Coca Cola faces such serious competition with PepsiCo which was
born 12 yrs after Coca Cola. Only Coca Cola and PepsiCo combined shares around 65-75%
market of beverages worldwide and they will continue to be rivals in the years ahead.
Both, Coca Cola and PepsiCo use different marketing strategies. Coca Cola focuses on
covering maximum no. customers by reaching every nook and corner of the world thereby
creating a monopoly, whereas, PepsiCo focuses on niche` marketing which covers a certain
group of customers and earning maximum sales and profits from it. Coca Cola was more
famous among the older generations, but PepsiCo created its image among the generation X
(younger generation) as they comprise majority of the population.
Similar strategy was used in their sub-brands wherein, gender segmentation was focused.
Thums up is advertised as a masculine drink and Fanta, having a light taste, is more feminine.
In case of PepsiCo, Mirinda orange flavour is more popular among ladies and children and
Mountain Dew is famous among masculine gender.
 SUB BRANDING AND ADVERTISING.
Sub branding is essentially a product or service that is affiliated with a parent brand but has its
own brand name. Sub branding is useful when an organisation wants to explore a whole new
system of products or services under a new motto but wants to use the original established
name of parent company for trust building among consumers without a considerable influence
of the type of original product. The primary marketing strategy behind this is to provide
consumers with many options which allow consumers to have clearer choices on the type of
product they want. When coming to a product diversity, coca cola company tried to serve their
consumer with a large number of different products in areas like carbonated soft drinks, energy
drink, fruit juices, mineral water, electrolytes without calories, nutrition product, caffeine free
soft drink, tea, sugar and calorie free soft drink and vitamin water. There are in all 21 Products
by Coca-Cola to fulfil all the needs by their consumers. Among these, some highlighted
products have notable facts like:
1. SPRITE –
Sprite was developed in West Germany in 1959 and introduced in 1961 to United States. It is
believed that sprite was manufactured as Coca Cola’s response to the popularity of 7UP owned
by PepsiCo and Dr. Pepper Snapple group. It is a lemon-lime flavoured soft drink which
presently ranks no.3 worldwide and is available in 190 countries. The success behind this quick
growth is credited to its aggressive marketing strategy. In the 1990‟s, Sprite launched the,
Jooky’ad campaign, which poked fun at other soft drinks and their lack of authenticity. In 2000,
graffiti artist temper was hired by sprite to create a limited edition design in celebration of the
millennium that appeared on 100 million cans distributed across Europe.
2. FANTA –
Fanta was launched in the year 1960 in U.S and in year 1993 in INDIA, it is the 2nd oldest sub
brand by Coca Cola, consumed 130 million times every day around the world. Currently, it has
put the special onus on social media with the help of tools like Youtube, Tweeter and Facebook.
3. MINUTE MAID –
Minute Maid has been making juice for more than 60 years and has a heritage of nutrition,
innovation, and quality. In 1945, the U.S. Army ordered 500,000 pounds of powdered orange
juice from the Florida Foods Corporation which finally renamed itself the Minute Maid
Corporation. It was acquired by the Coca-Cola Company in 1960, marking its first venture
outside of soft drinks.
4. DIET COKE –
Diet Coke, also known as Coca-Cola light in some markets, is a sugar- and calorie-free soft
drink. It was first introduced in the United States in 1982, as the first new brand since 1886 to
use the Coca-Cola Trademark. Today, Diet Coke/Coca-Cola light is one of the largest and most
successful brands of The Coca-Cola Company, available in more than 150 markets around the
world. They included CaffeineFree Diet Coke, Diet Cherry Coke, Diet Vanilla Coke, Diet Coke
with Lime and Diet Coke with Citrus Zest. Within 2 years of being brought to the market,
DietCoke becamethe top diet soft drink in the world. In order to create trust among consumers
in remote areas, marketing strategies can be coupled with CSR (Corporate Social
Responsibility) activities which will not only result in development of remote areas but also
lead to brand developing for organisations, although profit making is not an objective behind
it. Organisations are asked to use 2% of their annual profit for such activities and the no. of
companies participating are increasing at a fast rate. The Coca Cola India Pvt. Ltd. (CCIPL)
company has taken initiatives like water sustainability, solar energy projects, PET recycling
(in the light of the “Swaach Bharat Abhiyan” and “Clean India campaign” of the Govt. of
India),„Support My School‟ (“SMS”) campaign aimed at revitalizing rural schools etc. In
Africa, The Replenish Africa Initiative (RAIN) aims to improve access to clean water for 2
million people in Africa and is also focused on Water, Sanitation and Hygiene (WASH),
Watershed Protection and Productive Use of Water. It can be worthy to note how the medium
of advertisements has changed over the years. Initially the primary source was printed posters,
banners and newspapers to advertise which has shifted to electronic media and social media
with the advent of television and internet. Presently, advertisements are heavily based on digital
marketing and Artificial Intelligence is incorporated to make ads more interactive. Few
examples are as follows: i. Coca cola happiness machine – The happiness machine is a coke
vending machine that can provide their customers with a versatile product range of drinks,
pizza, sandwich etc. ii. Share a coke – The campaign gives people the chance to order
personalized coke bottles through a Facebook app. While in some countries the labelling has
been changed on demand, so all coke products have different names on them. iii. Tweet your
Christmas wish – for Christmas 2011 Coca Cola gave people a chance to have their tweets
displayed on its giant neon sign.

i. Replacement to alcohol drinks: With the growing stress level in workspace and personal
life, more and more people are getting addicted to injurious addictions like alcohol, smoking,
chewing tobacco etc. Usually it is quite late when they understand their mistakes and try to
overcome the addiction, but, the effects are in vain since their body is already habituated to the
addiction. Coca Cola can plan to launch a new sub brand focusing on this topic which has the
potential to have high demands and also create a good image among the public. Although there
are few pharmaceutical products which provide similar medical help, Coca Cola can use its
brand name and its unique way to market its product.
ii. Development in purified water system: Kenley is a sub brand of Coca Cola, but the sales
are not good in mineral water category. Bisleri had already created the brand name in the
mineral water section so much so that its name was used as equivalent to purified water bottles
by the people. Also these days, local distributors provide packaged drinking water at lower
cost. Coca Cola can tie-up with such distributors and make deals so that promotion of Kenley
increases among the public.
iii. Use of purified sea water: For Coca Cola drinks Coca Cola and other beverage companies
have been often severely criticised for using tremendous amount of groundwater in their
factories which resulted in scarcity of drinking water to the people. Coca Cola can either try to
replenish the used qty after use or use a sea water purification technique with a one-time
investment. It is a known fact that such sea water purification has not being carried out yet at
an economical or industrial level, but the daily advancement in technology, one can surely
expect to see such a technique in near future. An outstanding research has been carried out in
University of Alexandria over sea water purification process and is published in journal: Water
Science and technology. This process claims to be quite economical and external energy
independent. Coca Cola can sponsor such patented R&D projects to speed up the process and
use the patented product on a large scale so that it is cost effective. Such projects can surely
develop its name among the remote areas too.
 MARKETING MIX OF COCA COLA.

Coca-Cola is the brand with the highest brand equity. No doubt it has gone through the ups and
downs of business to reach that position. The marketing mix of Coca-Cola has been changing
over time with more and more products being added such that today it has 3300 products.

Since the invention of the nerve tonic beverage Coca-Cola by Dr. John Stith Pemberton in 1885
and the incorporation of The Coca-Cola Company by Asa Griggs Candler in 1892, the
American multinational beverage company has been known for its extensive marketing efforts
characterized primarily by remarkable advertising. Of course, there is more to the marketing
strategy of Coca-Cola than advertisements. This article provides a concise discussion of the
strategy and tactics employed by the company to market its products based on the marketing
mix model.

PRODUCT IN THE MARKETING MIX OF COCA-COLA.

The company has the widest portfolio in beverage industry comprising of 3300 products.
Beverages are divided into diet category, 100% fruit juices, fruit drinks, water, energy drinks,
tea and coffee etc.

As per Nielson’s data, Coca-cola is the No.1 brand in sparkling beverages, juice, and retail
packaged water in 2010. Coca cola has its market presence around 200 countries. Coca-cola
brands in India are Fanta, Maaza, Limca, Sprite, Thums-Up, Minute Maid, Nimbu fresh,
Nested iced tea etc.

Coca Cola has a large product portfolio of 500 sparkling and still brands. It provides nearly
3,900 beverage choices. Its leading product Coca Cola is one of the world’s most recognised
and valuable brands. There are 21 billion dollar brands in its portfolio, of which 19 are
available in low or no calorie choices.

Here are some of the most known brands in Coca Cola’s portfolio:

 Coca-Cola: Most popular and highest selling soft drink in history and also one of the
most recognisable brands in the world.

 Sprite: A popular lemon lime flavoured soft drink introduced in 1961.

 Fanta: Second oldest brand from Coca Cola, introduced in 1940, comes in orange
flavor.

 Diet Coke: Known as Coca Cola light in many markets. A sugar and calorie free soft
drink. Introduced in 1982.

 Coca Cola Zero: Launched in 2005, this zero sugar brand acquired the status of a
million dollar brand in 2007.

 Coca Cola life: Low calorie drink with cane sugar and Stevia leaf extract.

 Minute Maid: A juice brand acquired by Coca Cola in 1960.

 Ciel: Purified non-carbonated bottled water introduced in 1996.

 Powerade: Drink for energy and hydration made with carbohydrates, electrolytes and
fluids.

 Powerade zero: Sports and fitness drink with electrolytes minus the calories.

 Simply orange: Premium 100% orange juice available in six varieties.

 Fresca: Caffeine free soft drink with a unique citrus taste.

 Glaceau Vitaminwater: Nutrient enhanced water beverage available in 26 countries.

 Del Valle: A premium line of juices and nectars sold mainly in Latin America and
Central America.
PRICE IN THE MARKETING MIX OF COCA-COLA.

Due to the availability of wide range products, the pricing is done according to the market and
geographic segment. Each sub-brand of Coca-Cola has different pricing strategy. Their pricing
strategy is based on the competitors pricing, Pepsi is the direct competitor to coke. Beverage
market is said to be an oligopoly market (few sellers and large buyers), hence they form into
cartel contract to ensure a mutual balance in pricing between the sellers.

Pepsi is the arch rival of Coca-Cola and the closest competitor in the beverages segment. Both
brands price their products competitively. Prices are not too high to go beyond the average
customers’ reach and nor too low to give an impression of low quality. Coca-Cola’s pricing
strategy is aimed at driving brand loyalty.

Moreover, due to the decreasing demand for the soda products, price competition between
Coca-Cola and Pepsi has gotten even more intense. The prices grow lower with larger size of
purchase. Bulk buyers of the product may have to pay significantly lower prices than the ones
buying single Coca-Cola products.
PLACE IN THE MARKETING MIX OF COCA-COLA.

Coca-Cola is the world’s most favorite brand and is available all over the world. The
distribution system of coca cola follows the FMCG distribution pattern. The effective
distribution network of coke has almost eroded the small and middle level players in the
market. In India they have captured even the rural market by extensive distribution and have
eroded the market share of Bovonto, Kalimark etc.

Coca Cola has an extensive beverage distribution system. Its products are sold in more than
200 countries across 6 operating regions including Europe, Latin America, North America,
Pacific, Eurasia & Africa. Coca Cola sells an average of 1.9 billion servings each day.
Traditionally, the company has relied on its bottling partners for the packaging and distribution
of its products.

As Coca-Cola notes, “While many view our Company as simply “Coca-Cola,” our system
operates through multiple local channels. Our Company manufactures and sells concentrates,
beverage bases and syrups to bottling operations, owns the brands and is responsible for
consumer brand marketing initiatives. Our bottling partners manufacture, package,
merchandise and distribute the final branded beverages to our customers and vending partners,
who then sell our products to consumers” (Coca-Colacompany).

Its bottling partners work closely with customers, including grocery stores, restaurants, street
vendors, convenience stores, movie theatres and amusement parks, among many others.
Together they execute localised strategies of Coca Cola company. These customers sell Coca-
Cola products to the final customers.
PROMOTIONS IN THE MARKETING MIX OF COCA-COLA.

Coca cola adopts various advertising and promotional strategies to create an increased demand
in the market by associating with life style and behaviour and mainly targeting value based
advertising. You are more likely to see a coke ad individualised for a particular festival or in
with a general positive message.

Coca cola uses CSR as its marketing tool to gain emotional benefits in consumers mind. The
current promotions through CSR include “Support my school” campaign with NDTV. It has
many brand ambassadors like Shahrukh Khan, Hrithik Roshan, South Indian Actor Vijay and
Trisha, Ghambir, Aamir khan etc and has signed contract recently with Imran khan.

It allows price discounts and allowances to distributors and retailers and uses various types of
sales promotions in order to push more products into the market. It employs both push strategy
through promotions and pull strategy through advertisements and campaigns.

Due to the intense competition in the soda industry the top brands spend much on advertising
to drive higher sales and revenue. Coca-Cola’s marketing expenditure in 2016 was $4 billion.
In 2018, the marketing expenditure grew to $4.1 billion. It utilises both traditional and modern
channels to promote its brand and products. Coca Cola launched its Taste the Feeling campaign
in 2016 which unites all of its brands. This one brand approach taken by Coca Cola marks a
significant shift from its previous marketing strategy.

Apart from TV ads and outdoor ad campaigns, the company serves its ads across the internet
and on social media. Its social media accounts are used to connect with its fans and followers
and for customer engagement. There are more than 1,250 promotional videos of Coca Cola on
its official YouTube channel.
 SWOT ANALYSIS OF COCA-COLA.

Coca-Cola is a brand which is present in households, shops, hotels, offices, etc. You name it,
and the place would have heard of Coca cola. Coca cola has many products in its arsenal. Here
is the SWOT analysis of Coca cola.

STRENGTHS IN THE SWOT OF COCA-COLA.

1. Brand Equity – Interbrand in 2011 awarded Coca-Cola with the highest brand equity award.
Coca cola with its vast global presence and unique brand identity is definitely one of the
costliest brands with the highest brand equity.
2. Company valuation – One of the most valuable companies in the world, Coca-Cola is
valued around 79.2 billion dollars. This valuation includes the brand value, the numerous
factories and assets spread out across the world and the complete operations cost and profit
of Coca cola.
3. Vast global presence – Coca-Cola is present in 200 countries across the world. Chances
are, any country that you go to, you will find coca cola present in that market. This vast
global presence of coca cola has also contributed to the building of the mammoth brand
name.
4. Largest market share – There are only 2 Big competitors in the beverage segment – Pepsi
and Coca-Cola. Out of these 2, coca cola is the clear winner and hence has the largest
market share. Amongst all beverages, Coke, Thums up, Sprite, Diet coke, Fanta, Limca and
Maaza are the growth drivers for Coca Cola.
5. Fantastic marketing strategies – Coca cola unlike Pepsi always tries to win peoples heart.
Where Pepsi’s target is continuously changing, and is targeted towards youngsters, Coca
cola targets people of all ages. The targeting is also done by celebrities who are well liked
– for example – Amitabh Bacchan, Sachin tendulkar, Aishwarya Rai, Aamir Khan etc
6. Customer Loyalty – With such strong products, it is natural that Coca cola has a lot of
customer loyalty. The products mentioned above like Coca cola and Fanta have a huge fan
following. People will prefer these soft drinks over others. Because of the good taste of
Coca cola, finding substitutes becomes difficult for the customer.
7. Distribution network – Coca cola has the largest distribution network because of the
demand in the market for its products. On the other hand, due to this successful distribution
network, Coca cola has been able to command such a high market presence.
WEAKNESSES IN THE SWOT OF COCA-COLA.

1. Competition with Pepsi:

Pepsi is a thorn in the flesh for Coca cola. Coca cola would have been the clear market
leader had it not been for Pepsi. The competition in these two brands is immense and we
don’t think Pepsi will give up so easily.
2. Product Diversification is low:
Where Pepsi has made a smart move and diversified into the snacks segment with products
like Lays and Kurkure, Coca cola is missing from that segment. The segment is also a good
revenue driver for Pepsi and had Coca cola been present in this segment, these products
would have been an additional revenue driver for the company.
3. Absence in health beverages:
If you watch the news, you would know that obesity is a major problem affecting people
nowadays. The business environment is changing and people are taking measures to ensure
that they are not obese. Carbonated beverages are one of the major reasons for fat intake
and Coca cola is the largest manufacturer of Carbonated beverages. The inference is that
the consumption of beverages in developed countries might go down as people will prefer
a healthy alternative.
4. Water management: Coca-Cola has faced flak in the past due to its water management
issues. Several groups have raised lawsuits in the name of Coca cola because of their vast
consumption of water even in water scarce regions. At the same time, people have also
blamed Coca cola for mixing pesticides in the water to clear contaminants. Thus water
management needs to be better for Coca-Cola.
OPPORTUNITIES IN THE SWOT OF COCA-COLA.

1. Diversification – Diversification in the health and food business will improve the offerings
of Coca cola to their customers. This will also ensure that they get better revenue from
existing customers by cross selling their products. The supply chain which is distributing
their beverages can also distribute these snacks thereby sharing the load of Supply chain
costs.
2. Developing nations – Although developed nations have a high presence of Coca cola, these
countries are slowly moving towards healthy beverages. However developing countries are
still being introduced to the delight of carbonated drinks and soft drinks. Countries like
India which are developing and have a hot summer, find the consumption of cold drinks
almost doubled during summers. Thus the higher consumption in developing
environment’s can be a good opportunity to capitalize for Coca cola.
3. Packaged drinking water – With hygiene becoming a major factor in the consumption of
water, Packaged drinking water has found its way into peoples mind. Coca cola has a
presence in the packed drinking water segment though Kinley. Although Kinleys expansion
is slow as of now, Kinley has a huge potential of expansion. Thus Coca cola as a company
should focus on the expansion of Kinley as a brand and take it up to Bisleri ‘s level of trust.
4. Supply chain improvement – Supply chain can be a major cost sink hole with the
transportation costs always rising. Coca cola’s complete business is based on transportation
and distribution. There will always be possible improvements in this area. Thus Coca cola
should keep strict watch on its Supply chain and keep improving to bring the cost down.
5. Market the lesser selling products – In the product portfolio of Coca cola, there are several
products which have not found acceptance in the market. Coca Cola needs to concentrate
on the marketing of these products as well. It is understood that Coca cola has made several
expenses to launch these products. Thus, the marketing and subsequent rise of sale of these
products will help revenue of Coca cola.
THREATS IN THE SWOT OF COCA-COLA.

1. Raw material sourcing:

Water is the only threat to Coca cola. The weakness of Coca cola was the suspected use of
pesticides or vast consumption of water. However, the threat here is that water scarcity is
on the rise. With the climate changing, and regions of various countries facing scarcity of
water, sooner or later someone might raise fingers on beverage companies. Thus, Water
sourcing is an axe which can fall anytime on the head of Coca cola. If water is limited or
rationed, Coca cola can experience a major downfall in their revenue and capacity of
distribution. The same can affect its arch rival Pepsi as well.
2. Indirect competitors:
Coffee chains like Starbucks, Café coffee day, Costa coffee are on the rise. These chains
offer a healthy competition to Coca colas carbonated drinks. They might not be a big
competition for Coke, but they do give a dent to its beverage market. Similarly, health
drinks like Real and Tropicana as well as energy drinks like Red bull and Gatorade are
stealing away the market share indirectly.
COMPETITIVE ADVANTAGE IN THE MARKETING STRATEGY OF COCA-
COLA.

Coca Cola has competitive edge over its competitors in terms of Operations, Cost control,
Brand portfolio, Channel marketing, Collaborative customer relationship.

Operations – Coca cola has outsourced the bottling operation to the franchisee, FEMSA which
is the largest Bottling franchisee of the Coca-Cola trademark beverages in the world. It helps
the company in capturing important growth opportunities in under-developed non-carbonated
beverage segment and in strategic acquisitions by entering into agreements to jointly acquire
companies with The Coca Cola Company.

Cost control – Its diversified product portfolio, Outsourcing operations & economies of scale
helps it in cutting its operational cost & increase its profitability.

Strong Brand Portfolio – Company offers a powerful and wide portfolio of beverages to its
customers, and continuously explores promising beverage categories to capture growth in its
different markets. Its beverage portfolio consist of carbonated soft drinks, bottled water, juices,
orangeades, iso-tonics, teas, energy drinks, milk, coffee and even beer in some markets such
as Brazil.

Collaborative customer relationship – Coca Cola strongly believes in participative marketing

creating shared values for all stakeholders. Tailoring its extensive portfolio of products and
packages for their stores based on the local market’s socioeconomic demographics, relevant
consumption occasion and the store’s distinctive characteristics.
BCG MATRIX IN THE MARKETING STRATEGY OF COCA-COLA.

Coca Cola’s trademark brand occupies a different position in BCG matrix based on the demand
& competitive position.

Thumps-up, Sprite, Fanta & Maaza are Stars as these brands have high market share but high
competition in their respective segment.

Kinley is question mark reason being low sales. Company is not able to distinctly position
Kinley due to the presence of lots of local players in the highly commoditized market resulting
in low sales.

The main brand Coca Cola is considered a cash cow because it has a single competitor in Pepsi
and has a fantastic presence across the world

Coke-diet, Tea & coffee brands are dogs since it’s not able to attract customers for this segment
and these are probably more long-term units and under establishment.
DISTRIBUTION STRATEGY IN THE MARKETING STRATEGY OF COCA-COLA.

It uses several sales and distribution models depending on market, geographic conditions and
the customer’s profile:

(1) the pre-sale system, which separates the sales and delivery functions, permitting trucks to
be loaded with the mix of products that retailers have previously ordered, thereby increasing
both sales and distribution efficiency,

(2) the conventional truck route system, in which the person in charge of the delivery makes
immediate sales from inventory available on the truck,

(3) a hybrid distribution system, where the same truck carries product available for immediate
sale and product previously ordered through the pre-sale system,

(4) the telemarketing system, which could be combined with pre-sales visits and

(5) sales through third-party wholesalers of the products.

BRAND EQUITY IN THE MARKETING STRATEGY OF COCA-COLA.

Coca Cola is the one brand which is recognized by everyone around the globe. When we talk
about brand equity then it is its value & it’s about stories, memories, associations, and human
connections (although of course, these connections would have been very carefully and
deliberately engineered by talented marketers over many years and countless board meetings).

This is something that Coca-Cola has been the master of for over 100 years. This equity is
derived from people’s willingness to pay a premium for the brand and an unwillingness to
accept substitutes. Coca-Cola’s marketing strategy has always been to associate happiness,
positivity and the good life with their products, & that’s how they are able to create high TOMA
(Top of mind awareness).
COMPETITIVE ANALYSIS IN THE MARKETING STRATEGY OF COCA-COLA.

Big Giants in the Non-alcoholic beverages segment have similar strategy & objectives which
means innovation & creative marketing campaigns can help the companies to differentiate from
each other. Competition from the local players is the other major issue that company is facing
now days. Pepsi is the single largest main competitor of Coca-Cola having products across the
segments.

MARKET ANALYSIS IN THE MARKETING STRATEGY OF COCA-COLA.

Non-alcoholic beverages market is ever-growing industry & with the advent of growing Asian
markets & developing nations the consumption will be higher also due to the changing lifestyle,
economic conditions & changing buying habits. In this industry customer have got lots of
options ranging from water to tea/coffee to soft drinks, so chances of customer switching to
another brand is high. The only way to differentiate products & retain customers is the strong
brand building, and creating pull in the market.

Customer analysis in the Marketing strategy of Coca Cola – Coca cola targets a mass market.
And the customer expectation is low price, great taste, convenience & accessibility and various
options to choose from.
CASE STUDY ON COCA-COLA COMPANY ADVERTISING & SALES
MANAGEMENT
BRIEF STUDY OF THE CASE STUDY
Coca Cola is a leading company in the beverage sector. It provides its esteemed
customers globally over 500 brands with over 1.6 billion drinks per day. The Company was
founded in Atlanta USA by Doctor John Pemberton in 1886. Coca Cola would then initiate a
long term partnership with the Olympic Games that runs to date for advertisements. Coca Cola
has since been promoted as a brand that is linked to fun and even good time offering not just
refreshments but also life enjoyment. This brand has thus gone beyond a drink it is instead
considered by many as a lifestyle (Bennett, 1998).
Coca Cola as a brand has differentiated itself in the world markets through cost
leadership. By doing so the company has managed to extremely lower its cost of production
in the industry. Most market segments tend to have an emphasis on the minimization of costs.
Once the attained selling price equals the market average the lowest cost producer is likely to
enjoy greater profits. Coca Cola has employed branding as well as cost leadership in its US
and global expansion strategies; In the US it successfully differentiated itself when it positioned
itself as an American icon. Combined with its advertising slogan Always Coca Cola these
patriotic images that are reinforced with the perception that it has been existing for long has
assisted it sustain its brand loyalty from the year 1886 (Bell, 2004).
As a matter of fact Coca Cola has been so perfect in its differentiation that people today
do collect Coca Cola brands. These include; gracious novelties like bookmarks and toys,
merchant products such as coolers and bottles, point purchase items such as calendars and trays
as well as print advertisements and signs (Doole and Lowe, 2008).
In spite of the successes that Coca Cola has had in marketing in the last six decades it
is not the dominating brand in the US; however, it is amongst the most powerful brands in the
world today. . It has been rated third on Forbes magazine following Apple and Microsoft. In
the US people contrastingly prefer Pepsi over Coke. Coca Cola management has been aware
of this fact for quite some time and are now considering growing this brand domestically in
order to meet the standards it has globally. They can only do this through defensive strategies
where they retain their current consumer segments as well as their purchasing frequency
(Kotler, 1991).
COCA-COLA’S SELLING STRATEGY
Coca Cola should start considering adopting another brand image. This is because most
specialties in the industry perceive its brand as outdated. This Rockwell branding has as a
matter of fact segregated youthful consumers. On the other hand its main rivals Pepsi have
been employing young people in their adverts. Forinstance they have used Britney Spears who
has great appeal amongst youthful Americans (Wall and Rees, 2010).
The company also employs the marketing mix strategy to sell its products globally.
Through the 4Ps of marketing mix place, promotion, price and product the company has
managed to ensure that their products appeal to different consumer segments. The company
makes heavy investments not just in its brands but also in their quality. Apart from that it
sponsors charities to ensure the sustainability of its products. The company has been employing
cost leadership and branding strategies in most of its new markets (Bell, 2004).
However, branding has been a challenge to western firms that have chosen to invest in
China. This is because the meaning and sound of the branding can be deeply affected by
Chinese linguistics and this is likely to in the end impact consumer perceptions and brand
identity. In Belarus the company’s branding strategy concentrated on the quality of its products.
In Peru the company’s brand as well as quality was acknowledged through its employment
excellence an additional feature to its long history and products (Bennett, 1998).
The Company succeeded in Peru when it presented itself as a Peruvian company with
headquarters in the US rather than an American multinational. This is what endeared it to
Peruvians and earned it their trust for they believed that it was an international company. In
addition the company decided to increase its penetration to all avenues whether they were retail
stores or sporting events (Doole, 2008).
In addition to that it attached its soft drink to all kinds of meals that were being
advertisedthrough the co branding strategy. The company’s key strategy in the US was also to
market its soft drink with food products; today the soft drink can be found in all restaurants.
Social responsibility activities in Peru endeared it to more consumers for it not only created
employment for the jobless masses but also started relief programs to fund the less fortunate in
society as well as those who were economically disadvantaged. As part of the company’s
marketing strategy it provided market development of its soft drinks throughout the country. It
gave most of its partnering retailers and wholesalers free product supply services, promotional
materials, trade equipment, booths and refrigerators as well as general marketing and
promotional support (Bell, 2004).
PROBLEMS FACED BY COCA-COLA
The company has experienced a lot of challenges in its attempt to brand its various
products. In the 80s it attempted to come up with a new recipe for its numerous products. This
flavour completely transformed the taste that consumers were used to. However, the company
managed to make the best of the situation. In the recent past the company reported declines in
its Thailand and Indonesia markets unit case volumes as a result of decreased purchasing power
of its consumers. Japan, Latin America and South East Asia produce 36% of the company’s
volumes yet none of them are performing well. Japan’s case was scary because it contributes
5% of the company’s global volume and 15% of its profits yet it also reported a fall in unit case
sales (Kotler, 1991).
In the last decade in spite of the fact that the company has an invaluable brand name
and is most visible globally it has encountered numerous ethical crises which has made it
unable to obtain its financial objectives. Warren Buffet a key investor in the company resigned
from the board in 2006 after many social responsibility issues were unresolved. Doug Invester
who took over as CEO in 1997 was heralded for effectively handing the company’s financial
flows. He was groomed to this position by Roberto Goizueta a former CEO. However, after
Roberto’s death things started nose diving (Doole et al., 2008).
Invester did not have the leadership skills to handle a number of ethical issues. Doug
Daft who replaced Invester in 2000 had a rocky tenure includingallegations that the company
was involved in the disruption of long term contract plans with distributors, racial
discrimination, the manipulation of earnings and the misrepresentation of market tests (Wall et
al., 2010).
The worst crisis faced by the company was in 1999 when 30 children fell ill after
consuming its soft drink. This problem escalated even after the recall of the product. The
Belgium govern issued an order for allCoca Cola products to be recalled and this resolution
was also passed in other neighboring countries including France, the Netherlands and
Luxembourg. The company’s reputation was destroyed by its failure to provide a quick
response and recognize the seriousness of the crisis (Kotler, 1991).
The company’s market dominance has worked against it in various countries where its
marketing techniques have been questioned. The French government declined to approve its
acquisition of its leading beveragecompany Orangina. It was also not allowed to acquire
Cadbury.
POSSIBLE SOLUTIONS TO COCA-COLA’S PROBLEMS
The company should come up with a new marketing plan. All aspects of this marketing
plan should be seriously evaluated and researched. This should entail assessing the current
situation, analyzing market research and auditing its business. In addition the company should
cautiously scrutinize the soft drink industry and its market possibilities. Upon analyzing its
domestic and global business environment and critically assessed the industry it should then
select the most appropriate marketing strategies which should be executed through efficiently
and incessantly supervising external threats and opportunities while modifying its internal
procedures. It is important for Coca Cola to cautiously monitor its external and internal
business environments since their influences are critical to the company’s success as well as
survival in the beverage industry. To successfully manage and supervise its internal business
environment it should conduct progressive assessments of its business operations and act upon
emerging issues that are the causes of inefficiencies in the manufacturing and consumer phases.
The company must also monitor changes in the external environment since they are likely to
create either opportunities or setbacks. Demographic patterns, economic fluctuations and
dynamic customer tastes and preferences will impact the success of the company’s products on
the market as well as their reception.
The company’s brand is known to 95% of the world the only way out is to get ways of
making it better known. The company should diversify into other substitute markets such as
milk, tea, hot chocolate, coffee and juices. This is because the threat of substitutes in this
industry is real. The fact that consumers are becoming health conscious would adversely affect
the company if it does not start doing other types of beverages on a large scale basis. The
competition between Coke and its perennial rivalry Pepsi has realized a very slow moving
sector where the management must progressively respond to the consumers’ dynamic tastes
and preferences or lose theirmarket share to the rivals.
The company should move into market segments that have the utmost potential. Coca
Cola should package its products with incentives and labeling endorsements for this would
work well as a promotional strategy in order to increase its sales volumes and revenues. The
company should employ the penetration pricing strategy in order to grab a foot hold in new
markets and win huge market shares. Upon establishing customer loyalty it shouldthen start
increasing the prices gradually. The company should also ensure it effectively communicates
with targeted market segments in order to guarantee the success of its products. This can be
done through informed advertisements.
CONCLUSION
Coca Cola is a leading company in the beverage sector. It provides its esteemed
customers globally over 500 brands with over 1.6 billion drinks per day. Coca Cola as a brand
has differentiated itself in the world markets through cost leadership. By doing so the company
has managed to extremely lower its cost of production in the industry. In spite of the successes
that Coca Cola has had in marketing in the last six decades it is not the dominating brand in the
US; however, it is amongst the most powerful brands in the world today. . It has been rated
third on Forbes magazine following Apple and Microsoft.
Coca Cola should start considering adopting another brand image. This is because most
specialties in the industry perceive its brand as outdated. This Rockwell branding has as a
matter of fact segregated youthful consumers.The Company succeeded in certain countries like
Peru when it presented itself as a Peruvian company with headquarters in the US rather than
an American multinational.The company’s key strategy in the US was also to market its soft
drink with food products; today the soft drink can be found in all restaurants.
In the last decade in spite of the fact that the company has an invaluable brand name
and is most visible globally it has encountered numerous ethical crises which has made it
unable to obtain its financial objectives. The worst crisis faced by the company was in 1999
when 30 children fell ill after consuming its soft drink. This problem escalated even after the
recall of the product. The Belgium govern issued an order for all Coca Cola products to be
recalled and this resolution was also passed in other neighboring countries including France,
the Netherlands and Luxembourg.
To solve these problems the company should come up with a new marketing plan. All
aspects of this marketing plan should be seriously evaluated and researched. This should entail
assessing the current situation, analysing market research and auditing its business. In addition,
the company should cautiously scrutinize the soft drink industry and its market possibilities. It
is also important for Coca Cola to cautiously monitor its external and internal business
environments since their influences are critical to the company’s success as well as survival in
the beverage industry. The company must also monitor changes in the external environment
since they are likely to create either opportunities or setbacks. The company’s brand is known
to 95% of the world the only way out is to get ways of making it better known. The company
should diversify into other substitute markets such as milk, tea, hot chocolate, coffee and juices.
https://www.coca-colaindia.com/about-us/mission-vision-and-values

https://www.marketing91.com/marketing-mix-coca-cola/

https://www.marketing91.com/swot-coca-cola/

http://www.coca-colacompany.com/our-company/the-coca-cola-system
http://www.coca-colacompany.com/careers/who-we-are-infographic
http://www.coca-colacompany.com/stories/taste-the-feeling-launch
http://www.businessrevieweurope.eu/marketing/856/Top-20-companies-with-the-biggest-
advertising-budget
http://www.iosrjournals.org/iosr-jbm/papers/Conf.ADMIFMS1808-2018/Volume-
1/12.%2077-85.pdf

Abstract: Marketing strategy in a nutshell maps an idea which forms the base of sustaining
business keeping in mind the long-term benefits and competition in market. Marketing
strategy is an idea which grows from the seed of value proposition enabling the company a
step further over its competitors in terms of brand development and profit making. Its effects
over the companies worldwide have been astonishing, especially over public-centric domains
like automobiles, beverages etc. A soft drink giant, Coca Cola, is one such example which
market aggressors since has been 1886. Coke as a brand in itself tries to substitute the entire
soft drink markets. The main idea behind their marketing is they read people’s mind across
geographical boundaries. They started tying up with various food chains that have
widespread not only in India but a world as a whole. The report puts light on the financial
growth of the company due to these strategies. How the company is able to maintain the edge
over its peers. The unique feature of their strategy is they tend to change their tag lines; this
ensures that the target audience is interested in the product and they feel that the company is
doing some innovation. The report also tries to forecast some of the future strategies that may
be adopted by them and impact in their growth.