Professional Documents
Culture Documents
MKT2013
GROUP MEMBER:
PRINCIPLES OF MARKETING
MKT2013
TABLE OF CONTENT
S.NUMBER
1.
TOPIC
Table of Content
2.
Company Logo
3.
Acknowledgement
4.0
Executive Summary
5-7
4.1
Introduction of Marketing
4.2
Company History
9-14
4.3
Introduction of Business
15-26
4.5
Products
27-39
4.6
Process of business
40-41
5.0
Marketing Processing
42-50
5.1
Conclusion
51
5.2
References
52
PAGE
2
PRINCIPLES OF MARKETING
MKT2013
COMPANY LOGO
PRINCIPLES OF MARKETING
MKT2013
ACKNOWLEDGEMENT
We both Mathuri and Tea Nian Han have taken efforts in this project. However, it would
not have been possible without the kind support and help of many individuals and
organizations. We would like to extend my sincere thanks to all of them. We are highly
indebted to Ms Mogana Sri for her guidance and constant supervision as well as for
providing necessary information regarding the project & also for their support in
completing the project. We would like to express our gratitude towards our parents. This
assignment cannot be completed with our group member effort is Tea Nian Han and
myself. We would like to express our special gratitude and thanks to industry persons for
giving us such attention and time. Our thanks and appreciations also go to our colleague
in developing the project and people who have willingly helped us out with their
abilities."
PRINCIPLES OF MARKETING
MKT2013
EXECUTIVE SUMMARY
The Coca-Cola Company based in Atlanta, USA is the one of the largest beverage
companies in the world. Every single day, 1.7 billion non-alcoholic beverages made by
the Coke-Cola Company are consumed in over 200 countries world wide. Coke-Cola
celebrated its 126th birthday in 2011. The Coke-Cola Company has been present in
Germany since 1929. Today, Coke-Cola GmbH is responsible for national marketing,
managing the Coke-Cola brands and other central functions such as product and
packaging development. Coke-Cola Erfrischungsgetranke AG is responsible for the
bottling and distribution of over 70 products covering a wide range of non-alcoholic
beverages from soft drinks, sugar free soft drinks, juices and cordials to juice spritzers,
ice teas, sport drinks, hot beverages, mineral water and table water. With over 60
company sites in seven distribution areas and over 10,000 employees, Coke-Cola
Erfrischungsgetranke AG meets the demand for Coke-Cola products throughout
Germany. Coca-Cola is sold in more than 200 countries throughout the world, so it's
difficult to think of a country where it's not available. Even in countries where we do not
manufacture Coca-Cola, it is nearly always available, as many entrepreneurs will import
it from neighbouring countries. Since 1900 we have worked with local partners who
bottle and sell Coca-Cola products. By working with these partners, Coca-Cola has been
able to grow into a drink that's bottled locally but enjoyed around the world.
Business Objective
The world is changing all around us. To continue to thrive as a business over the next 10
years and beyond we must look ahead. Understanding the trends and forces that will
shape our business in the future and moving swiftly will prepare us for what's to come.
These are the declarations of our overall mission and goals, and the values that we are
guided by as a company and as individuals.
PRINCIPLES OF MARKETING
MKT2013
Goals
- Assess the vulnerabilities of the quality and quantity of water sources for each of our
bottling plants and implement a locally relevant water resource sustainability program by
the end of 2012.
- To make coke-cola preferable for everyone to have
- To make a profit for their stock holders
The Coca-Cola Company Mission
Our mission is:
To refresh the world - in mind, body and spirit
To inspire moments of optimism - through our brands and actions
To create value and make a difference everywhere we engage
PRINCIPLES OF MARKETING
MKT2013
Target Market
The company's beverages are generally for all consumers. However, there are some
brands, which target specific consumers. For example, Coca-Cola's Diet soft drinks are
targeted at consumers who are older in age, between the years of 25 and 39. PowerAde
sports water target those who are fit, healthy and do sport. Winnie the Pooh sipper cap
Juice Drink target children between the age 5-12. This type of market approach refers to
market segmentation. The Coca-Cola Company when advertising, has a primary target of
those who are 13-24 and a secondary market of 10-39
PRINCIPLES OF MARKETING
MKT2013
INTRODUCING OF MARKETING
Marketing is the process of communicating the value of a product or service to
customers, for the purpose of selling that product or service. From a societal point of
view, marketing is the link between a societys material requirements and its economic
patterns of response. Marketing satisfies these needs and wants through exchange
processes and building long term relationships. Marketing can be looked at as an
organizational function and a set of processes for creating, delivering and communicating
value to customers, and managing customer relationships in ways that also benefit the
organization and its shareholders. Marketing is the science of choosing target markets
through market analysis and market segmentation, as well as understanding consumer
buying behavior and providing superior customer value.
PRINCIPLES OF MARKETING
MKT2013
COMPANY HISTORY
History of Coca-Cola: 1886-1892
Atlanta Beginnings
It was 1886, and in New York Harbour, workers were constructing the Statue of Liberty.
Eight hundred miles away, another great American symbol was about to be unveiled.
Like many people who change history, John Pemberton, an Atlanta pharmacist, was
inspired by simple curiosity. One afternoon, he stirred up a fragrant, caramel-coloured
liquid and, when it was done, he carried it a few doors down to Jacobs' Pharmacy. Here,
the mixture was combined with carbonated water and sampled by customers who all
agreed - this new drink was something special. So Jacobs' Pharmacy put it on sale for five
cents (about 3p) a glass.
Pemberton's bookkeeper, Frank Robinson, named the mixture Coca-Cola, and wrote it out
in his distinctive script. To this day, Coca-Cola is written the same way. In the first year,
Pemberton sold just nine glasses of Coca-Cola a day. A century later, The Coca-Cola
Company has produced more than 10 billion gallons of syrup.
Over the course of three years, between 1888-1891, Atlanta businessman Asa Griggs
Candler secured rights to the business for a total of about $2,300 (about 1,500). Candler
would become Coca-Cola's first president, and the first to bring real vision to the business
and the brand.
History of Coca-Cola: 1893-1904
Beyond Atlanta
Asa Candler, a natural born salesman, transformed Coca-Cola from an invention into a
business. He knew there were thirsty people out there, and Candler found brilliant and
innovative ways to introduce them to this exciting new refreshment. He gave away
coupons for complimentary first tastes of Coca-Cola, and outfitted distributing
pharmacists with clocks, urns, calendars and apothecary scales bearing the Coca-Cola
brand. People saw Coca-Cola everywhere, and the aggressive promotion worked. By
1895, Candler had built syrup plants in Chicago, Dallas and Los Angeles.
PRINCIPLES OF MARKETING
MKT2013
Inevitably, the drink's popularity led to a demand for it to be enjoyed in new ways. In
1894, a Mississippi businessman named Joseph Biedenharn became the first to put CocaCola in bottles. He sent 12 of them to Candler, who responded without enthusiasm.
Despite being a brilliant and innovative businessman, he didn't realise then that the future
of Coca-Cola would be with portable, bottled beverages customers could take anywhere.
He still didn't realise it five years later, when, in 1899, two Chattanooga lawyers,
Benjamin Thomas and Joseph Whitehead, secured exclusive rights from Candler to bottle
and sell the beverage - for the sum of only one dollar.
History of Coca-Cola: 1905-1918
Safeguarding the brand
Imitation may be the sincerest form of flattery, but The Coca-Cola Company was none
too pleased about the proliferation of copycat beverages taking advantage of its success.
Coca-Cola was a great product, and a great brand. Both needed to be protected.
Advertising focused on the authenticity of Coca-Cola, urging consumers to 'Demand the
genuine' and 'Accept no substitute'.
The company also decided to create a distinctive bottle shape to assure people they were
actually getting a real Coca-Cola. The Root Glass Company of Terre Haute, Indiana, won
a contest to design a bottle that could be recognised in the dark. In 1916, they began
manufacturing the famous Contour Bottle. The Contour Bottle, which remains the
signature shape of Coca-Cola today, was chosen for its attractive appearance, original
design and the fact that, even in the dark, you could identify the genuine article.
As the country roared into the new century, The Coca-Cola Company grew rapidly,
moving into Canada, Panama, Cuba, Puerto Rico, France, and other countries and US
territories. In 1900, there were two bottlers of Coca-Cola; by 1920, there were about
1,000.
History of Coca-Cola: 1919-1940
The Woodruff legacy
Perhaps no person had more impact on The Coca-Cola Company than Robert Woodruff.
In 1923, four years after his father Ernest purchased the company from Asa Candler,
DIPLOMA IN BUSINESS MANAGEMENT
10
PRINCIPLES OF MARKETING
MKT2013
Woodruff became the company's president. While Candler had introduced the US to
Coca-Cola, Woodruff would spend more than 60 years as company leader introducing the
beverage to the world beyond.
Woodruff was a marketing genius, who saw opportunities for expansion everywhere. He
led the expansion of Coca-Cola overseas and in 1928 introduced Coca-Cola to the
Olympic Games for the first time when Coca-Cola travelled with the US team to the 1928
Amsterdam Olympics. Woodruff pushed development and distribution of the six-pack
and many other innovations that made it easier for people to drink Coca-Cola at home or
away. This new thinking made Coca-Cola not just a huge success, but a big part of
people's lives.
History of Coca-Cola: 1941-1959
The war and its legacy
In 1941, America entered World War II. Thousands of men and women were sent
overseas. The country, and Coca-Cola, rallied behind them. Woodruff ordered that 'every
man in uniform gets a bottle of Coca-Cola for five cents, wherever he is, and whatever it
costs the company'. In 1943, General Dwight D Eisenhower sent an urgent cablegram to
Coca-Cola, requesting shipment of materials for 10 bottling plants. During the war, many
people enjoyed their first taste of the beverage, and when peace finally came, the
foundations were laid for Coca-Cola to do business overseas.
Woodruff's vision that Coca-Cola be placed within 'arm's reach of desire' was coming true
- from the mid-1940s until 1960, the number of countries with bottling operations nearly
doubled. Post-war America was alive with optimism and prosperity. Coca-Cola was part
of a fun, carefree American lifestyle, and the imagery of its advertising - happy couples at
the drive-in, carefree mums driving big yellow convertibles - reflected the spirit of the
times.
History of Coca-Cola: 1960-1981
A world of customers
After 70 years of success with one brand, Coca-Cola, the company decided to expand
with new flavours. Fanta, originally developed in the 1940s, was introduced in the 1950s,
DIPLOMA IN BUSINESS MANAGEMENT
11
PRINCIPLES OF MARKETING
MKT2013
while Sprite followed in 1961, with TAB in 1963 and Fresca in 1966.
The company's presence worldwide was growing rapidly, and year after year, Coca-Cola
found a home in more and more places: Cambodia, Montserrat, Paraguay, Macau, Turkey
and more.
Advertising for Coca-Cola, always an important and exciting part of its business, really
came into its own in the 1970s, and reflected a brand connected with fun, friends and
good times. The international appeal of Coca-Cola was embodied by a 1971 commercial,
where a group of young people from all over the world gathered on a hilltop in Italy to
sing I'd Like To Buy The World A Coke.
History of Coca-Cola: 1982-1989
Diet Coke and new Coke
The 1980s - the era of legwarmers, headbands and the fitness craze, and a time of much
change and innovation at The Coca-Cola Company. In 1981, Roberto C Goizueta became
chairman of the board of directors and CEO of The Coca-Cola Company. Goizueta
completely overhauled the company with a strategy he called 'intelligent risk taking'.
Among his bold moves was organising the numerous US bottling operations into a new
public company, Coca-Cola Enterprises Inc. He also led the introduction of Diet Coke,
the very first extension of the Coca-Cola trademark. Within two years, it had become the
top low calorie drink in the world, second in success only to Coca-Cola.
One of Goizueta's other initiatives, in 1985, was the release of a new taste for Coca-Cola,
the first change in formulation in 99 years. In taste tests, people loved the new formula,
commonly called New Coke. In the real world, they had a deep emotional attachment to
the original, and they begged and pleaded to get it back. Critics called it the biggest
marketing blunder ever. Coca-Cola listened, and the original formula was returned to the
market as Coca-Cola Classic, and the product began to increase its lead over the
competition - a lead that continues to this day.
12
PRINCIPLES OF MARKETING
MKT2013
The 1990s were a time of continued growth for The Coca-Cola Company. The company's
long association with sports was strengthened during this decade, with ongoing support of
the Olympic Games, FIFA World Cup football, the Rugby World Cup and the National
Basketball Association.
The year 1993 saw the introduction of the popular Always Coca-Cola advertising
campaign, and the world met the lovable Coca-Cola Polar Bearfor the first time. New
markets opened up as Coca-Cola products were sold in East Germany in 1990 and
returned to India in 1993.
New beverages joined Coca-Cola's line-up, including Powerade sports drinks and Oasis
fruit drinks. Coca-Cola's family of brands further expanded through acquisitions,
including Limca, Maaza and Thums Up in India, Barq's root beer in the US, Inca Kola in
Peru, and Cadbury Schweppes beverage brands in more than 120 countries around the
world. By 1997, Coca-Cola already sold one billion servings of its products every day,
yet knew that opportunity for growth was still around every corner.
History of Coca-Cola: 2000-Now
13
PRINCIPLES OF MARKETING
MKT2013
began in 1968.
Coca-Cola has remained dedicated to offering quality drinks for every lifestyle and
occasion, marketing those beverages responsibly and providing information that
consumers can trust. As of 2008, Coca-Cola can count more than 160 low and no calorie
drinks in the company's range, such as Coke Zero and Powerade Zero. The company now
also lists the nutritional information on the front of all drinks in Great Britain with plans
to roll out worldwide.
2011 will also see Coca-Cola reaching the grand age of 125, when well be celebrating
our rich heritage and thanking you, our consumers, by spreading moments of happiness
around the globe.
From the early beginnings when just nine drinks a day were served, Coca-Cola has grown
to be the world's most ubiquitous brand, with more than 1.6 billion beverage servings
sold each day. Now well into its second century, the company's goal is still to provide
magic every time someone drinks one of its more than 400 brands - and to do so in a
sustainable way that benefits consumers and the communities we operate in.
14
PRINCIPLES OF MARKETING
MKT2013
INTRODUCTION OF BUSINESS
15
PRINCIPLES OF MARKETING
MKT2013
Our products
Here in Great Britain we manufacture and market a wide range of drinks. Our carbonated
soft drinks include well-known brands such as Coca-Cola, Diet Coke, Coke Zero, Sprite
and Fanta, as well as Oasis still fruit drinks, isotonic sports drink Powerade and
Schweppes Abbey Well water. We also own the Schweppes product range, Relentless
energy drinks and the Glaceau vitaminwater range. Coca-Cola Enterprises also
manufactures and distributes some products for other brand owners. These include CapriSun, Monster energy drinks and the Appletiser, Peartiser and Fruitiser range of sparkling
fruit juices. All our drinks come in a variety of different packaging formats - aluminium
cans, glass and plastic bottles - with portion sizes ranging from 150ml cans through to
two litre bottles.
16
PRINCIPLES OF MARKETING
MKT2013
17
PRINCIPLES OF MARKETING
MKT2013
Price
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 a oligopoly market (few sellers and large buyers),
hence they form into cartel contract to ensure a mutual balance in pricing between the
sellers.
18
PRINCIPLES OF MARKETING
MKT2013
Promotion
- Advertising the Coke-Cola Company uses advertising as its main source of increasing
consumer awareness. It mainly uses the television. There are many television
advertisements on Coca-Cola products. This source allows the company's products to
reach a large audience. The latest television advertisements for Coca-Cola soft drinks was
the 'You know you want it' advertisement. One of the older one are 'If you drink it,you get
better of life' The company also uses the radio as another source of advertisement. This is
cheaper source of approach compared to the television. Recently, the company benefited
from its involvement in the world's celebrated games such as the Olympics and the FIFA
World Cup. Where millions were watching these games, the business had substantial
advertising and promotion of the company's brands.
- Personal selling Every year, The Coca-Cola Company has a highly trained sales team,
which acts as a representative of the Company to the retailers. This strategy helps to
maintain service and product loyalty. It has been demonstrated by the business to be
highly effective. Publicity in February 2003, Vanilla Coke was released to the media as
news brief outlining the huge profit achieved by the business(from the Sydney Moming
Herald 14th February 2003). This helped the Coca-Cola Company to strength the image of
the business's product.
Place of distribution
- The Coca-Cola Company sells its products to bottling and canning operations,
distributors, fountain wholesales and some fountain retailers. These then distributes them
to retail outlets, milk bar and corner stores, restaurants, petrol stations and newsagents.
Indirect distribution the Coca-Cola Company uses intermediaries in its distribution. That
is company does not sell its products directly to its consumers. Intensive distribution the
Coca-Cola Company uses the intensive distribution strategy. The business's products are
sold in almost every outlet including: retail outlets, small shops, restaurants, petrol
stations, newsagents, schools, sports and entertainment venues, from vending machine
19
PRINCIPLES OF MARKETING
MKT2013
Wants
- Wants are human needs that have been molded by culture and individual personality.
For the first time ever, Coca-Cola has chosen to leave out the most important element of
its branding. It has replaced the legendary Coke logo with around 150 terms a selection
of first names, and teenage slang. On the Internet, consumers can create virtual bottles
featuring their own names and words, and send them to friends via social networks.
Facebook users can enjoy their virtual bottles online, or order the real thing to be
delivered to their homes.
Demands
- A demand is created when buying power backs a customer want the Coca-Cola
Company produces over 400 brands of non-alcoholic beverages, including carbonated
and non-carbonated beverages, such as ready-to-drink juices, coffee drinks, tea and
bottled water. Under these 400+ brands, there are more than 3,000 different beverage
products. [6] Most of company's beverage portfolio is composed of carbonated soft drinks,
though the company has been expanding into the non-Carbonated Soft Drinks category in
20
PRINCIPLES OF MARKETING
MKT2013
21
PRINCIPLES OF MARKETING
MKT2013
Consumer needs and demands are constantly evolving throughout our markets. In order
to remain relevant to our consumers we establish clear category and brand priorities and
define focused objectives. We drive innovation by continuously building on our strong
family of brands and introducing new flavors and packages in specific markets such as
the recent lemon-passion fruit mineral water in Croatia, the strawberry and kiwi Fanta in
Austria and new serving sizes such as the 250ml PET bottles to complement the 250ml
glass bottle and 150ml cans sold in multipacks. Part of our innovation process, we are
launching existing brands in new markets and re-launching or reinvigorating existing
brands where appropriate. In many of our markets where adults are a growing segment of
our consumer base, we have launched several product innovations to ensure we meet
their expectations and their increased interest in reducing their sugar and calorie intake.
In 2008, we launched Coca-Cola Zero, a full-flavor no calorie Coca-Cola beverage highly
popular among adult consumers, which is available in 20 out of our 28 markets. We have
progressively reformulated Fanta, Sprite and Nestea so they now contain up to 30% fewer
calories than in 2010. This has been a gradual process to enable our consumers to adjust
to the reduced sugar content. The average calorie content of our beverages is now
31Kcal/100ml, representing a 16% decrease since 2011 and supporting our commitment
to promoting healthy lifestyles. We are also innovating in the use of natural sweeteners,
Stevia, a plant-based extract that has zero calories. In 2012, we launched Sprite with
Stevia in Switzerland, and its mainly used in our Nestea range available in 12 of our
markets.
22
PRINCIPLES OF MARKETING
MKT2013
23
PRINCIPLES OF MARKETING
MKT2013
24
PRINCIPLES OF MARKETING
MKT2013
Product Concept
- More than 3,000 beverages, from diet and regular sparkling beverages to still beverages
such as 100 percent fruit juices and fruit drinks, water, sports and energy drinks, teas and
coffees, and milk and soy based beverages our variety spans the globe. Essentially a
touchstone for pop culture, Coca-Cola has earned its status in the minds of consumers by
being a leader in the world of style and reflecting the tastes and preferences of each
generation. Always upfront and innovative, Coca-Cola continually succeeds in
reinventing itself, miraculously updating the spirited essence of the brand while
maintaining its position as an everyday connection point for individuals everywhere.
Marketing Concept
Marketing involves getting the right product to the right place, at the right time, at the
right price and with the most suitable promotional activity. Coca-Cola has always been
able to create the most appropriate marketing mix. Since its beginnings, Coca-Cola has
built its business using a universal strategy based on three timeless principles is
acceptability is through effective marketing, ensuring Coca-Cola brands are an integral
part of consumers's daily lives, making Coca-Cola the preferred beverage everywhere.
Next affordability is Coca-Cola guarantees it offers the best price in terms of value for
money. Finally, availability is making sure that Coca-Cola brands are available anywhere
people want refreshment, a pervasive penetration of the marketplace.
25
PRINCIPLES OF MARKETING
MKT2013
26
PRINCIPLES OF MARKETING
MKT2013
PRODUCT DESCRIPTION
COCA-COLA
Coca-Cola is the most popular and biggest-selling soft drink in history, as well as the
best-known brand in the world.
On May 8, 2011, Coca-Cola celebrated its 125thanniversary. Created in 1886 in Atlanta,
Georgia, by Dr. John S. Pemberton, Coca-Cola was first offered as a fountain beverage at
Jacob's Pharmacy by mixingCoca-Cola syrup with carbonated water.
Coca-Cola was patented in 1887, registered as a trademark in 1893 and by 1895 it was
being sold in every state and territory in the United States. In 1899, The Coca-Cola
Company began franchised bottling operations in the United States.
Coca-Cola might owe its origins to the United States, but its popularity has made it truly
universal. Today, you can find Coca-Cola in virtually every part of the world.
27
PRINCIPLES OF MARKETING
MKT2013
SPRITE
Introduced in 1961, Sprite is the world's leading lemon-lime flavored soft drink. Sprite is
sold in more than 190 countries and ranks as the No. 3 soft drink worldwide, with a
strong appeal to young people. Millions of people enjoy Sprite because of its crisp, clean
taste that really quenches your thirst. But Sprite also has an honest, straight forward
attitude that sets it apart from other soft drinks. Sprite encourages you to be true to who
you are and to obey you.
FANTA
28
PRINCIPLES OF MARKETING
MKT2013
DIET COKE
COCA-COLA ZERO
29
PRINCIPLES OF MARKETING
MKT2013
DASANI
Pure, crisp DASANI delivers fresh taste with a clean, fresh style.
DASANI DROPS is the vibrant and delicious drop that transforms everyday moments
into something deliciously fun, unexpected and colorful. A refreshing duo.
MINUTE MAID
Minute Maid has been making juice for over 60 years and has a
heritage of nutrition, innovation, and quality. We continue to use high quality fruits and
fruit juices so that consumers can enjoy our products with confidence. Our commitment
to delivering high-quality juices and juice drinks with great taste and good nutrition is
something you can count on. Thats the stuff that makes you feel good and thats what we
do.
30
PRINCIPLES OF MARKETING
MKT2013
CIEL
POWERADE
31
PRINCIPLES OF MARKETING
MKT2013
SIMPLY
COCA-COLA LIGHT
32
PRINCIPLES OF MARKETING
MKT2013
FRESCA
GLACAU VITAMINWATER
33
PRINCIPLES OF MARKETING
MKT2013
DEL VALLE
Del Valle Brand has its roots in Latin America and recently
joined our billion dollar brand status within TheCoca-Cola Company portfolio of
brands. It has a diverse juice line up ranging from 100% juices and nectars to juice drinks
and is available in different convenient packaging for the whole family. The brand is
available in Mexico, Brazil, Colombia, Venezuela, Central America, and other markets in
Latin America.
GLACAU SMARTWATER
34
PRINCIPLES OF MARKETING
MKT2013
MELLO YELLO
35
PRINCIPLES OF MARKETING
MKT2013
FUZE
FUZE TEA
FUZE TEA is a new global tea brand from the CocaColafamily that is a fusion of tea with fruit flavors and other natural ingredients. Created
through a special process that ensures a delightful fusion of tea, fruit and other natural
flavors, FUZE TEA delivers a fresh, contemporary expression of tea.
36
PRINCIPLES OF MARKETING
MKT2013
BURN
HONEST TEA
37
PRINCIPLES OF MARKETING
MKT2013
NOS
ODWALLA
38
PRINCIPLES OF MARKETING
MKT2013
POWERADE ZERO
39
PRINCIPLES OF MARKETING
MKT2013
PROCESS OF BUSINESS
The Coca-Cola System
We are a global business that operates on a local scale, in every community where we do
business. We are able to create global reach with local focus because of the strength of
theCoca-Cola system, which comprises our Company and our more than 250 bottling
partners worldwide.
The Coca-Cola system is not a single entity from a legal or managerial perspective, and
the Company does not own or control all of our bottling partners.
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.
All bottling partners work closely with customers -- grocery stores, restaurants, street
vendors, convenience stores, movie theaters and amusement parks, among many others -to execute localized strategies developed in partnership with our Company. Customers
then sell our products to consumers at a rate of more than 1.8 billion servings a day. In
January 2006, our Company-owned bottling operations were brought together to form the
Bottling Investments operating group, now the second-largest bottling partner in the
Coca-Colasystem in terms of unit case volume.
40
PRINCIPLES OF MARKETING
MKT2013
41
PRINCIPLES OF MARKETING
MKT2013
MARKETING PROCESSING
42
PRINCIPLES OF MARKETING
MKT2013
Since its beginnings, Coca-Cola has built its business using a universal strategy based on
three timeless principles is acceptability, affordability and availability. Acceptability is
through effective marketing, ensuring Coca-Cola brands are an integral part of
consumer's daily lives, making Coca-Cola the preferred beverage everywhere.
Affordability is Coca-Cola guarantees it offers the best price in terms of value for money.
Availability is making sure that Coca-Cola brands are available anywhere people want
refreshment, a pervasive penetration of the marketplace.
Global advertising
Advertising also is a marketing process for Coca-Cola. Advertising is a most effective
force in gaining social acceptance for any product and Coca-Cola has recognised and
used this power from its very first advertisement in 1892.
Over the decades, by emphasising youth and energy, Coca-Cola has created advertising
slogans, or 'straplines' , which are memorable, innovative and still relevant to the brand
today:
1886 - Delicious and Refreshing
1929 - The Pause that Refreshes
1942 - It's the Real Thing, often used since 1942
1963 - Things go Better with Coca-Cola
1971 - I'd like to Teach the World to Sing
1976 - Coke Adds Life
1982 - Coke is It
1989 - Can't Beat the Feeling
1993 - Always Coca-Cola
1996 - Eat Football, Sleep Football, Drink Coca-Cola.
Coca-Cola is able to engage in global advertising because the messages created about its
products have a universal appeal. Coca-Cola's powerful brand personality has become a
vehicle for promotion in its own right. Coca-Cola has provided a platform for a number
of highly successful artistic and sporting events, including the Olympics. The brand has
also proven to be strong enough to support a wide range of branded merchandise bought
not only for its quality, but because it is fashionable.
43
PRINCIPLES OF MARKETING
MKT2013
2) Building
the range
A business can enlarge its product range in two ways is internally, through new product
development based on market researchand externally, by acquiring related companies,
and if appropriate, building on their existing range.For example, in 1999 The Coca-Cola
Company purchased, in various countries, soft drinks brands from Cadbury Schweppes
plc, including Dr Pepper, Oasis, Kia-Ora and Malvern. The acquisition of Schweppes
provided the opportunity to complement the range and to accelerate growth through new
product development. Coca-Cola GB's(Great Britain) approach to new product
development is uncomplicated. It innovates to meet consumer demands; the consumer
has a central role in the research and development process.
44
PRINCIPLES OF MARKETING
MKT2013
this.
Placing marketing at the heart of the organisation enables Coca-Cola GB to grow the
product range in ways that best meet consumer requirements through developing such as
new drink categories examples sports drinks, new products within an existing category
example Winnie the Pooh Roo Juice and new variants of existing products (brand line
extensions/pack innovations) example Fanta Icy Lemon.
4) Category segmentation
By dividing a category into segments, businesses can identify different groups of
consumer wants. It is then possible to design products to meet those requirements. Each
segment within the overall range of Coca-Cola meets specific consumer wants. CocaCola GB carries out extensive market research to identify consumer wants in every
segment of category in which it operates. For example, market research analysis of the
demographics of consumers in Great Britain revealed a growth in smaller households.
The appropriate product response was to produce 1.25 litre share-size bottles. A study of
occasions when people drink sports drinks showed the importance of making it available
in leisure centres. Other research showed that the famous original Coca-Cola glass bottle
is best targeted at restaurants and special party occasions. Market research into where
specific products are consumed influences the design of pack types e.g. a 2 litre bottle for
family consumption at home and a smaller 500ml bottle for consumption 'on the move'.
45
PRINCIPLES OF MARKETING
MKT2013
5) Market research
Market research means systematically gathering, recording and analysing market data.
Primary research involves going 'into the field' (e.g. house-to-house or street surveys).
Secondary research involves using existing sources of information to research the market
such as published reports or articles, or searching the Internet. There are two main
approaches to 'primary' market research is quantitative research collecting information
from a broad population sample example by conducting extensive surveys, used when
Coca Cola GB(Great Britain) wants to gauge appeal across a wide audience and
qualitative research working with small 'focus' groups. This involves far more detailed
investigations, e.g. gathering a small group of 'typical' consumers to taste test products or
to talk about their preferences and experiences of using different products. Qualitative
research, whilst not representative of the views of the general population, provides
greater insight into 'why' people think what they think.
Coca-Cola GB's(Great Britain) research process has five stages:
Firstly, Identify opportunity such as does it fit into an existing or new product category?
and Who are the target consumers? What do they want? The method is desk research.
Secondly, Explore solution such as What is the best solution?
-a new product?
-a product extension?
-a new packaging concept?
-a new design?
The method is qualitative research using focus groups and in-depth interviews one to one.
Thirdly, measure suitability/effectiveness. Evaluate the relative appeal of alternative
solutions in terms of meeting consumer requirements. The method quantitative research
through face-to-face, telephone/internet interviews. Fourtly, test market as it is very
expensive for a company to launch a new product, before going for a full market launch it
often pays to try out new product ideas in a 'test' market. This may be launching the
product in just one region of Great Britain, with just one retailer or conducting a
'Simulated Test Market'. The method is quantitative research from participants in a test
sample of consumers who physically live with the test product for a period of days. There
46
PRINCIPLES OF MARKETING
MKT2013
are three stages is concept research is to determine whether consumers like the 'concept'
of the new product. Next, product attributes is to determine whether the actual 'product'
offering matches the 'concept'. Moreover volume assessment is to determine whether
consumers will actually buy the new product and what, if any, existing products it will
replace. Future more, track market performance. This involves tracking the product's
success once it has been launched e.g. by recording sales figures, numbers of people
familiar with the product. The method is quantified continuous rolling study with
consumers and/or analysis of Electronic Point of Sale data (sales information gathered via
retailers' tills).
6) Product development
Ansoff's matrix is a useful tool for examining a company's product range. This compares
the alternatives of developing new products and new markets. There are four main
options is market penetration is selling more of the same types of product to the same
types of people. Next product development is building on existing relationships with
consumers and on a creative ability to develop new products suited to consumer wants.
Future more, market development is developing an existing product to cater for emerging
markets. Finally, diversification: developing new products for new markets.
Coca-Cola Great Britain using market research to develop a product range.
47
PRINCIPLES OF MARKETING
MKT2013
48
PRINCIPLES OF MARKETING
MKT2013
8) Launch evaluation
For any new product launch, Coca-Cola GB(Great Britain) evaluates its success, looking
specifically at the various elements of the launch activity, including distribution,
advertising, packaging and product taste. Data is collected from leading marketing
research organisations, the company's consumer careline, Coca-Cola bottlers, and a
consumer tracker report that measures consumers' brand awareness.
Promotion
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
49
PRINCIPLES OF MARKETING
MKT2013
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 in order to push more products
into the market. It employs both push strategy through promotions and pull strategy
through advertisements and campaigns.
The latest 6 months promotion of Coca-Cola:
50
PRINCIPLES OF MARKETING
MKT2013
Conclusion
Coca-Cola GB(Great Britain) seeks to develop intelligently its product range in order to
'benefit and refresh everyone'. Building the range involves developing existing and new
products in existing and new markets. The key to maximising consumer satisfaction lies
in doing the market research properly and getting the range right.To produce the world's
best known product, The Coca-Cola Company has to employ the highest quality
processes and establish standards which guarantee the production of a standardised
product which meets consumers' high expectations each and every time they drink a
bottle or can of Coca-Cola. In order to guarantee these standards the Company has had to
develop a close relationship with its franchisees based on a mutual concern for quality.
Total Quality Management lies at the heart of this process involving a continuous
emphasis on getting quality standards right every time and on continually seeking new
ways to improve performance.The Coca-Cola Company has built internal and external
structures to support the delivery of its business goals. The regional structure is the best
way of supporting this growth, allowing attention to local requirements while at the same
time building on a clear strategic direction from the centre. A culture of innovation,
teamwork and partnership means that the Company has a firm foundation of relationships
and open communication channels on which to build its growth. Based on my opinion I
have learned about how Coca-Cola produce and display to the all the places and also how
company developnment. Moreover we also have learned the technologies has been
increasing to advanced.
51
PRINCIPLES OF MARKETING
MKT2013
REFERENCES
http://www.econsense.de/sites/all/files/executive-summary-english.pdf
http://www.coca-cola.co.uk/about-us/coca-cola-mission-vision-statement.html
http://www.coca-cola.co.uk/about-us/introducing-our-business.html
http://www.coca-cola.co.uk/about-us/history-of-coca-cola-1886-1892.html
http://www.coca-cola.co.uk/about-us/history-of-coca-cola-2000-now.html
http://www.slideshare.net/angelynablihan/coca-cola-marketing-plan-11647532#
http://www.coca-colacompany.com/brands/product-descriptions
http://www.coca-colacompany.com/stories/quality
http://www.coca-colacompany.com/our-company/the-coca-cola-system
http://www.coca-colacompany.com/brands/products-descriptions
http://www.yourarticlelibrary.com/marketing/marketing-mix-product-price-placeandpromotion-4ps/5395/
http://www.coca-cola.co.uk/faq/company/how-many-countries-sell-coca-cola-is-thereanywhere-in-the-world-that-doesnt.html
http://www.coca-colacompany.com/our-company/the-coca-cola-system
52