Brand equity study

Overview
Leader in the beverage industry
Most valuable brand for 13 consecutive years; currently
#3, after Apple and Google (Interbrand Best Global
Brands, 2013)
The Coca-Cola brand is worth more than half the market
value, and a staggering 10 times the book value, of its
parent company (Ivey Business Journal, 2001)
Coca-Cola spends more money on advertising than
Microsoft and Apple combined (Business Insider, 2011).

In 2011 it had a market value of about $74 billion, which is

more than Budweiser, Starbucks, Red Bull and Pepsi combined
(Business Insider, 2011).

>

http://www.businessinsider.com/facts-about-coca-cola-2011-6?op=1
http://www.interbrand.com/en/best-global-brands/2013/Best-Global-Brands-2013-Brand-View.aspx
http://iveybusinessjournal.com/topics/the-organization/brand-equity-capitalizing-on-intellectualcapital#.UnJwXvmmiEM

Brand Salience
Beverage industry

The red and white Coca-Cola

logo is recognised by 94% of
the world's population
(Business Insider, 2011).

Coca-Colas
Mantra- 3Ps
Preference
Pervasive
penetration
Line extension user
http://www.businessinsider.com/facts-about-coca-cola-2011-6?
profiles

Price relative to
value

op=1#ixzz2jPRwUs6C
http://resources.alibaba.com/topic/800263843/What_is_3P_theory_.ht
m

Brand Performance
Pricing

Product
Caffeine
characteristics
content
Flavour

Lower price point for price sensitive markets

Face competition and raise brand awareness
Gaining position in the market
Charging a premium compared to competitors
Offering on-pack promotions with the aim of meeting objectives and
increasing sales

A bottle which a person could

recognize even if they felt it in the
dark, and so shaped that, even if
broken, a person could tell at a glance
http://fr.scribd.com/doc/46403814/Coca-Cola-CBBE-Model
what it was. (The Coca-Cola
http://www.coca-colacompany.com/our-company/history-ofCompany)
bottling#TCCC

Other pricing
strategies
Segmented
International
Psychological

Brand Imagery
History, heritage,
experiences

Celebrations Family
orientation
Fun
United generations
Sharing happiness Sense of
Share a Coke
community
campaign
Excitement
http://google.com/images

Consumer Feelings

of servings per person in 2012

Warmth

Top 3 user
countries have
similar cultural
dimensions

Fun

Excitement

USA

401

Panama

416

Chile

486

Mexico

745

0 100200300400500600700800
The United States actually ranks No. 4 with
401 servings per person in 2012 according to
Coca-Cola's annual review book (USA Today,
2013). 100
50

3023
11

0
Individualism

Mexico
Chile
Panama

http://www.usatoday.com/story/money/markets/2013/10/21/six-things-you-may-not-know-aboutcoca-cola/3144243/
http://geert-hofstede.com/mexico.html
http://google.com/images

Consumer Judgements
Superiority
Considerati
on
Quality

The Belgian Government has

banned the sale of all Coca-Cola
drinks following more reported
cases of poisoning across the
country (BBC News, 1999).

http://news.bbc.co.uk/2/hi/business/369089.stm
http://google.com/images

Consumer-Brand
Resonance
Loyal
customers

Coca-Cola Value in US billion

100 68.7 70.4
71.8 77.8 79.2
50
0

828686

100
80
60
40
20
0
Uncertaintly avoidance

Mexico
Chile
Panama

2009 2010
2011 2012
2013
Source: Interbrand Global Brands,
2013

http://geert-hofstede.com/mexico.html
http://www.interbrand.com/en/best-global-brands/2013/Best-Global-Brands-2013-Brand-View.aspx

Consumer-Brand
Resonance

Active
engagement

http://www.coca-colacompany.com/brands/coca-cola/

Strengths and
challenges
+ Leader in the beverage
industry
+ Differentiated product line
+ Active engagement

Pricing strategy
- Quality control

References
Alibaba Trade Forums, 2010.What is 3P theory? [online] Alibaba Trade Forums. Available at:
http://resources.alibaba.com/topic/800263843/What_is_3P_theory_.htm [Accessed 05 November 2013].
BBC News, 1999. Belgium bans Coca-Cola. [online] BBC News. Available at:http://news.bbc.co.uk/2/hi/business/369089.stm [Accessed 05
November 2013].
Bhasin, K., 2011.15 Facts About Coca-Cola That Will Blow Your Mind [online] Business Insider. Available at:
http://www.businessinsider.com/facts-about-coca-cola-2011-6?op=1 [Accessed 05 November 2013].
Bias, W., 2013.Six things you may not know about Coca-Cola.[online] USA Today. Available at:
http://www.usatoday.com/story/money/markets/2013/10/21/six-things-you-may-not-know-about-coca-cola/3144243/[Accessed 05
November 2013].
Euromonitor, 2013.Coca-Cola Enterprises Ltd in Soft Drinks (United Kingdom). [online] Euromonitor. Available at:
https://www.portal.euromonitor.com[Accessed 05 November 2013].
Interbrand, 2013. Best Global Brands 2013 [online] Interbrand. Available at:
http://www.interbrand.com/en/best-global-brands/2013/Coca-Cola [Accessed 05 November 20113].
Keller, L.R., 2007, Strategic brand management, Upper Saddle River, NJ: Pearson
Keller, L.R., 2009, Building strong brands in a modern marketing communication environment, Journal of marketing communication, Vol.
15, pp. 139-155
Kohli, C. , Leuthesser, L., 2001. Brand equity: capitalizing on intellectual capital, Ivey Business Journal [online] Ivey Business Journal.
Available at: http://iveybusinessjournal.com/topics/the-organization/brand-equity-capitalizing-on-intellectual-capital#.UnJwXvmmiEM
[Accessed 05 November 2013].
Palod, S., Coca-Cola CBBE Model. [online] Scribd. Available at: http://fr.scribd.com/doc/46403814/Coca-Cola-CBBE-Model [Accessed 05
November 2013].
The Coca-Cola Company, 2013.History of Bottling [online] The Coca-Cola Company. Available at:http://
www.coca-colacompany.com/our-company/history-of-bottling [Accessed 05 November 2013].

www.coca-colacompany.com/brands/coca-cola/
www.google.com/images
www.geert-hofstede.com/mexico.html