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Synopsis on Marketing Strategies of Coca Cola

Synopsis on Marketing Strategies of Coca Cola

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Mangalayatan Univesity

Synopsis on Marketing strategies of coca cola
Under the guidence of : Submitted by:

Ambrish Sharma Senior lecturer

Durgesh singh 2007ecs007
MBA Int.(C.S.)

It is one of the most widely known. when the Indian Government banned it due to strong resentment against multinational company’s Coca-Cola was re-launched again in India in September 1993 at “HATHRAS” near Agra. CocaCola was their in India till 1977. As far as INDIA soft drink market is concerned there are major company’s engaged having a big completion to capture the soft drink market are namely Coca-Cola & Pepsi. accepted and admired trademarks of the world.N. While Campa Cola & many local cola’s still notice in the Indian Market. The India people . Fanta. etc. He and his staff recognized that the main hope lay transforming Pepsi from a cheap imitator of Coke into a class on soft drink manufacturer. which was there in INDIA till 1977. resulting the Coca-Cola had starting to click the At that point Alfred. Vanilla Coke. Coca Cola dominated the American soft drink industry. resulting sales had climbed substantially.) hold a 62% market share that appears to bear concentrated rush to beg a big share in the soft drink market. Pepsi Cola attacked Coca-Cola before World War II. Pepsi cola was a drink less to manufactures & with a less satisfactory taste then Coke. During World War II Pepsi & Coke both enjoyed increased sale. Sprite. Various national & multinational firms are engaged in soft drink market due to increase in its demand day by day. Where as Coca-Cola major selling point was more drink for the same price and Pepsi emphasized on advertising. After the war Pepsi sale was started to fall relatively to Coke. These actions from 1955 to 1960 led to a considerable sales growth for Pepsi. In todays market the Coca-Cola (Coke.Introduction soft drink boon in India was attributed to the legacy of Coca Cola. Thumps Up. By 1955 all Pepsi‟s major weakness had been overcome. In India another company engaged in soft drink market is Coca-Cola.Steeler came to the presidency of Pepsi cola with a great reputation for merchandising. Limca.

The basic ideology of these two giants is to promote soft drinks as a food item in India hold. The long hot summers in India have increased the consumption of soft drinks. Soft drink industry is one of the fastest growing industries in India. 3. Coca-Cola Company had a leadership challenge when one of its . 2. Thumps Up. The basic idea behind the rapid growth of this industry is due to following reasons: 1.welcomed the come back of their most loved Cola in the country with great enthusiasm and vigor. Maaza. The great corporate war between Coke & Pepsi. has to develop strategies in order to remain in the strong competitive market. Coca-Cola marked its re-launching with acquiring five Parley drinks viz. Coca-Cola faults and wrongdoings are documented and approved. for monopolizing the India Soft Drink market. Need and Significance Coca-Cola Company had difficult challenges in India and was not treated similarly to the local businesses.” 2009). Soda. Coca-Cola Co. which obliged the company to react according to international norms and business ethics. Gold Spot. Problem Identification The non-alcoholic carbonated or non-carbonated drinks have reached the mature market. Citra. Coca-Cola‟s values call for a leadership that have “the courage to shape a better future” and an integrity to “be real” (“Our Company. Limca. who left no stone unturned.

These situations require the right leadership to acknowledge them. Customers may retaliate by boycotting the seller or organize an offensive campaign to state their objection (Baxter. 2008).employees filed a suit accusing Coca-Cola of inflating Burger King‟s study in 2002 (Polk. unethical treatment of animals and the anti-fur campaigns (Baxter. One of the best customer disobedience examples started in the 1960s like dolphin killing by tuna fisherman. 2005). Skinner. Skinner and Taylor (2005) recommend that sellers like Coca-Cola should have a contingency plan in case unintentional wrongdoing take place to recover from the impact of the situation . Ingram. 2008). Regular customer would not tolerate wrongdoing and will not forgive the sellers for mistakes although they committed with the good intention. Coca-Cola fired several executives and paid $21 million to Burger King (Polk. & Taylor. responsibly act to correct the wrongdoings and set up measures to prevent its reoccurrence. Coca-Cola Company had situations in India that clearly contradict with its mission and values. The results of the study were exaggerated to show higher profits from soft drink test. Most of these campaigns are still holding strong and have large and effective base of supporters. The study will produce a set of recommendations to achieve the above requirement and recommend that Coca-Cola either pay to remedy the damages or recuperate the harm done in India. 2007). Committed customers would forgive the seller if the mistakes or harm are minor but the same committed customers would be increasingly dissatisfied if the level of perceived wrongdoing increases (Ingram. 2007).

Marketing Plan:Coca-Cola in 2015 By-Matt Curd Purpose: In brief the purpose is to market a new innovative beverage packaging for CocaCola. Dr Pepper. Oasis and PowerAde. Fanta. The packaging has been designed around the brief „consider the creation of a new concept form of beverage packaging container for 2015.‟ Today. . The international presence of Coca-Cola is phenomenal and its logo. advertising and colours are among the most recognized in the world.Literature review 1 . The company owns the majority of the soft drinks available in coolers and in vending machines in the western world. Sprite. based on trends emerging now this plan has identified the carbonated drinks market has probably peeked and likely to be overtaken by healthier drinks as the market leader in the soft drinks market. Coca-Cola and sub brands . Coca-Cola is an internationally recognized soft drinks company with ambitious plans to further grow the brand. Conclusion The marketing strategy for Coca-Cola‟s new product will come into place in 2015. Some of these brands 1 include. The 2005 Annual Report states the company sells beverage products in more than 3 312 countries or territories. A full list of Coca-Colas affiliated brands can be found on their 2 corporate website .

Company practices are legal and ethical because the choice was made by the customers who build it on their internal risk-averse behavior (Novemsky & Kahneman. and the new lifestyle in 2015 will much more health conscious.” 2009). with marketing pull to still succeed in the future. Coca-Cola is all about buying into a lifestyle. 2007). CocaCola‟s values include leadership.2004 stated Coca-Cola is a non-alcoholic drink that is marketed as a joyful and refreshing drink for all age groups.Researching Coca-Cola‟s product range has identified the Diet Coke range as the most likely. The Indian bottling plants consume large quantities of water.Peter Drucker. Coca-Cola Company has more than 400 non-alcoholic beverages that include Coke. Coke was found containing pesticides 24 times higher than the European standard by an Indian laboratory. Coca-Cola Company stated that their products are tested using European standards and did not break any laws in India. Coke is the most famous soft drink produced by Coca-Cola Company and is consumed around the world. 2005). The beverage container is styled to appear an essential for an active. 2. . 2007). In this report I have shown reason for Coke to tie themselves up with sports sponsorship to promote a brand image of health and fitness. Coca-Cola brand strength is supported by its worldwide distribution and availability (Peter & Donnelly. inspire moments of optimism and create value (“Our Company. The new beverage vessel is refillable in the hope of reducing pressure on landfill and showing coke as being a global and socially responsible company. collaborations. The diet coke range has combats health concerns which are found in the Coca-Cola flagship product. which Coca-Cola discredit (Burnett & Welford. However. Prospect theory gives marketers the chance to use the customers‟ risk-averse behavior to steer their decision toward a profitable choice for the company. 2006). 2008). with distribution and bottling operations in 200 countries (Holcomb. which is much needed by the farmers especially during seasonal droughts (Burnett & Welford. integrity and accountability but Coca-Cola‟s practices have serious implications that contradict its values. Coca-Cola Company‟s mission statement is to refresh the world. fit lifestyle.

According to Tony Proctor (2000) "A strategy is a plan that integrates an organization's major goals. 207). Inks. Peter Drucker stated that the organizations profit is necessary to supply capital for future innovation and expansion (Drucker. Managers should abandon old ideas when they become a threat to the organization but learn that failures are opportunities to learn. 3. p. Parkes & Cooper. 2004). Tony Proctor (2000) In today's consumer society. the buyers were less sensitive to their deceit (lying) because they justify it with the resulting low price. which is supported by price fairness (Worrall. Satisfaction comes from product quality and service quality. Polk (2008) state that managers should be accountable for the company‟s innovations and the change it leads to successfully. a company has to have a marketing strategy effective enough to encompass all aspects of the market and implement it effectively before it can envision success and achieve its goal. Companies seek customer‟s commitment by deferent means. 2007. It can apply at . Avila and Chapman (2004) found that buyers are more ethically sensitive to unethical behavior.The principle “let the buyer beware” is opposite to the relationship marketing principle in which the seller seeks longlasting relationship with the customer. however customer commitment can result from satisfying the customer by offering him or her good product or service in exchange for his or her money. 2004). policies. Marketers should not subscribe to the caveat emptor principal because it makes the relationship between the seller and the buyer deteriorate. Relationship marketing takes part of the risk to prevent any risk that the buyer may encounter from the selling and buying experience. The relationship is maintained by stating the facts and giving the necessary information to the customer. “The relationship marketing strategies are concerned with the development and enhancement of relationships with a number of key markets” (Šimberová. Buyers have stronger negative reaction to lying when this lying was from the seller. decisions and sequences of action into a cohesive whole. however.

More specifically a marketing strategy is a plan to satisfy customers' wants and needs. emotionally entangled and associated with the customers' lives. fast food or breakfast cereal. latest social trends as well as economic status of its customers will classify its marketing strategy to be a success or failure. its resources and objectives within the environment it operate. In today's competitive beverage industry marketing strategy is not as simple as the above concepts since competition does not merely involve positioning products in the customer's minds but rather how it is perceived. A strategy is measured by its effectiveness rather than its efficiency in processing the environment and designing plans to fit between the organization. The latest being emergence of health conscious consumption trend.all levels in an organization and pertain to any of the functional areas of management. An effective marketing strategy would be one that finds different ways to satisfy the customers that its competitors cannot (Proctor 2000). With Coca-Cola being its arch rival followed by Cadbury Schweppes. In this regard PepsiCo has always been ahead of its competitor in evolving and anticipating its customer's preference on time." (Proctor 2000) Thus for PepsiCo." An organization can have various kinds of production. a strategic window helps it determine when its products would be accepted in the market and when to launch it and enable it to anticipate the magnitude of its returns if it decides to launch fruit juice products. 5 the assets and skills that a firm possesses or can readily acquire/access. A marketing strategy is more complex than simply inducing the customers to buy the product. This has proved critical in PepsiCo's strategy and sustained it at the top as it realizes the mature . financial. PepsiCo always need to anticipate the changing nature of competition and the market place. and in the process facilitate the achievement of organizational goals. marketing or human resources strategies to aid it in achieving its objectives. Instead for a beverage company a marketing strategy may include but not limited to environmental factors such as: "1 the opening and closing of strategic windows 2 the impact of market drivers 3 the nature of competition in the market place 4 the stage of the market or industry life cycle. market drivers such as technological change. Similarly.

p. Using the Ansoff Matrix (Proctor 2000). The only alternative is to evolve and innovate through new products. merely establishing a marketing strategy is not enough. the organization must consider selection of its product market to operate and invest which would reflect on its investment strategies. Strategies then have to be developed and implemented as part of the business management process rather than isolated departmental strategies (Proctor 2000). diversification and product development strategies. Michael Porter (1980) According to Michael Porter (1980) Developing a competitive strategy is developing a broad formula for how a business is going to compete. Instead.nature of it industry life cycle which does not offer much room for the company to evolve. xvi). For mature firms like PepsiCo. what its goals should be and what points will be needed to carry out those goals (Porter 1980. one can increase sales of existing products and at the same time maintain current margins on profitable sales by expanding the nominal outlays of the marketing expenditure and getting the first time users to buy the product. it should evolve and engage in growth strategies which would help it to expand its market as well as diversify its products and scope. Eventually. which PepsiCo does effectively (Corporate Overview 2005) 4. . the same consumers can be induced to increase the frequency of use of the product by promoting new applications of the existing products. After having analyzed the competitive environment and its elements. As one can see from the diagram below the Ansoff Matrix enables marketing strategists to penetrate new markets or expand into existing ones through market development.

Sample size: I will cover approximately 100 outlets.  To study the market share of beverages companies on outlets at various highways .. 2. Research methodology RESEARCH DESIGN: Descriptive and expolatory. “Coca cola is adopting significantly more aggressive marketing policies than other beverages companies ”.Objectives of study  To study the promotional policies of the beverage companies on the outlets lying at various highways. Hypothesis 1. . “ Visibility of various softdrinks at outlets lying at various highways suggests that coca cola is the leader in terms of market share”. Sampling technique: I will design a relevant survey sheet which will be filled on the outlet.

Operating in 46 states.V. CCE employs 74.www. Magazines T. distributor and producer of products manufactured by The Coca-Cola Company. distributing 42 billion bottles and cans. Biblography: I used the websites: 1.8 billion. www.com .google. Secondary Data : I will collect the secondary data through questionnaire. In 2006.com 2. beverage dispensers and coolers. 55. (CCE) is the world’s largest marketer.4 million vending machines.Data collection: Primary data : primary data collect through Newspaper.wikkipedia 3. Internet. 19 percent of The Coca-Cola Company’s volume worldwide.. CCE achieved total revenue of $19.000 people who operate 444 facilities.scribd. Organisation of study: Coca-Cola Enterprises Inc. Canada and portions of Europe.000 vehicles and 2.

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