Term paper of Coca Cola Company

…Submitted to…
Dr. Rojanasak Chomvilailuk

…Prepared by…
Ms. Nungruthai Waenkorn ID: 5101502002
Ms. Patra Mannoi ID: 5101502020
Mr. Anantaporn Lapsakkarn ID: 5101502023
Mr. Marutpong Nilchoi ID: 5101502037
Mr. Pongpinit Yoosuk ID: 5101502080
Ms. Nataporn Phon-Amphai ID: 5101502082

Bachelor of Business Administration

122212 – Principles of Marketing

…December 2009…
 Contents
Page

Contents 2
History of Coca Cola Company.,Ltd 3
The Fact of Coca Cola 4
Strategies Analysis 4
Marketing Strategies 5
Mission and Vision statement analysis 5-6
Values 6
Objective 6
Goals 7
Market Segmentation, Targeting, Positioning 7
Marketing Offer (4Ps) 8
SWOT Analysis 9
Marketing Environment
Micro environment factors affecting Coca Cola 10
Major competitor (Pepsi) international 11
Macro environment factors affecting Coca Cola 12
Consumer buying behavior 13
Characteristics affecting Consumer Behavior 14
Competitive advantage analysis 15
Differentiated Marketing 15-16
Levels of Product and services 16
Brand building strategy 17-19
Product Life cycle 20-21
Market Channel 22
Promotion Mix 23
Conclusion 24
References 25
 Term paper of Coca Cola Company

HISTORY:

Coca-Cola Enterprises, established in 1986, is a young company by the

standards of the Coca-Cola system. Yet each of its franchises has a strong
heritage in the traditions of Coca-Cola that is the foundation for this company.
The Coca-Cola Company traces it’s beginning to 1886 , when an Atlanta
pharmacist, Dr. John Pemberton , began to produce Coca-Cola syrup for sale in
fountain drinks. However the bottling business began in 1899 when two
Chattanooga businessmen, Benjamin F. Thomas and Joseph B. Whitehead ,
secured the exclusive rights to bottle and sell Coca-Cola for most of the United
States from The Coca-Cola Company.

The Coca-Cola bottling system continued to operate as independent, local

businesses until the early 1980s when bottling franchises began to consolidate.
In 1986, The Coca-Cola Company merged some of its company-owned operations
with two large ownership groups that were for sale, the John T. Lupton
franchises and BCI Holding Corporation's bottling holdings, to form Coca-Cola
Enterprises Inc. The Company offered its stock to the public on November 21,
1986, at a split-adjusted price of $5.50 a share. On an annual basis, total unit
case sales were 880,000 in 1986.

In December 1991, a merger between Coca-Cola Enterprises and the

Johnston Coca-Cola Bottling Group, Inc. (Johnston) created a larger, stronger
Company, again helping accelerate bottler consolidation. As part of the merger,
the senior management team of Johnston assumed responsibility for managing
the Company, and began a dramatic, successful restructuring in 1992.Unit case
sales had climbed to 1.4 billion, and total revenues were $5 billion
The Fact of Coca-Cola
Coca-Cola enterprise has a good policy to control their employee, and their
workplaces are based on Workplace Rights policy is guided by international human rights
standard, of course every company should have. They are not only make the profit, but they
give back the benefit to consumer and be friendly with the environment, like they was
associated with WWF to help conserve and protect fresh water resources throughout the
world. In 2004 Coke Chairman and CEO devised a plan to revive Coke, the included several
strategic initiatives including innovation, increasing marketing investment and introducing
new products. A part of the plan to revive is “The Coke side of life”. Coca Cola was paying
attention to what people from different cultures and background like to drink, and where and
how they want to drink it. They try to make the consumer like and accept coca cola products
and make sure that Coca Cola is their first choice.

Strategies analysis
The Coca Cola Company doesn’t want just their business growth, but they want a sustainable
growth and meet the long term goal in the future. The Coca Cola Company has a clear vision
and goals to achieve long term growth. Coca Cola leads their strengths, carbonated soft
drinks remain their most profitable business and Coca Cola is the most popular brand in the
world. The Coca Cola look forward to generate the new energy through core brands that
focus on health and wellness. It is the opportunity for Coca Cola to capture. The people
around the world used to recognize family of brands, that Coca Cola deliver more than 3,000
beverages to 200 countries around the world, not just soft drinks, but juice, sport drinks,
water. Coca Cola maintain the trust local in every community and looking ahead to anticipate
from communities, what they need and want, to gathering resources to support them. The
Coca Cola company also help their retail customer to increase their sales by launched many
products and developed a model to maximize their sales.

The brand development strategy of Coca Cola comprised redesigning of its brand
development policies and techniques to keep up with the changing attitude of its consumer,
this brand believe in the following

1. Afford ability: Coca Cola guarantees it offers the suitable price that all consumers
can afford. Coca Cola aim to reach as many consumers as possible with offer in
quality product and packages.

2. Availability: Coca Cola place their range of the products within easy reach of
consumers in the right package, in the right location, and at the right time. Coca
Cola make sure that their brands are available anywhere consumers want
refreshment, and can buy it whenever they want.

3. Acceptability: Coca Cola supplies an extensive and growing range of products to

meet the highest quality standard in each country, increasing their acceptability to
 consumers. Coca Cola has the detailed understanding of consumer needs and
access to the most effective communication channels. Coca Cola make consumers
like and accept coca cola and make them feel happy to buy and drink this
beverage.

4. Price value: consumers are not only can afford to buy but also can get benefits
over their gives from coca cola products.

5. Pervasive: make consumers can buy at everywhere at anytime.

6. Preference: make consumers not only like and accept coca cola products, but also
are partial to the coca cola brands. To make sure Coca Cola is their first choice.

MARKETING STRTEGIES

The Coca-Cola Company is the world’s leading manufacturer, marketer, and distributor of
nonalcoholic beverage concentrates and syrups. Its world headquarters is based in Atlanta,
Georgia. The company and its subsidiaries employ nearly 31,000 people around the world.
The Coca-Cola Company manufactures syrups, concentrates and beverage bases for Coca-
Cola, the company’s flagship brand, and also produces over 230 other soft-drink brands sold
by and its subsidiaries in nearly 200 countries around the world. Some of Coca-Cola’s latest
domestic marketing strategies include Coca Cola dominating fountain sales. Thousands of
consumers visit fast-food restaurants every day and Coca Cola feels that it is very important
to have the consumer see and drink their product at such chains as McDonalds, Burger King,
and Domino’s Pizza. Coca-Cola is also testing a new plastic cup in the famous Coca-Cola
contour.

Mission and Vision statement analysis

Mission
Coca-Cola wants to satisfy people around the world with the best-branded beverages. They
must first start from the inside to become a successful company. All employees are treated
equally and are encouraged to contribute their ideas to the company. Teamwork within the
company contributes to great customer service. Outside the company, Coca-Cola works along
side with local leaders to establish closeness as a community. Coca-Cola becomes a part of a
community to contribute to education, health, wellness, and diversity.

Coca-Cola believes that customers’ tastes are always changing therefore Coca-Cola keeps on
making new products to satisfy their needs. Coca-Cola is a local company in over 200
countries. The quality is a huge factor in serving people. All products going out are checked
thoroughly by employees before reaching the consumer. Inside and outside help contribute to
Coca-Cola staying on top of the marketplace. Employees work their hardest to deliver the
best product. While expanding into the world, Coca-Cola makes sure that the community is
being treated to the greatest extent.

Vision
Their vision serves as the framework for the Roadmap and guides every aspect of their
business by describing what they 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.

Values
• 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.

Objective
The Coca Cola Company’s main objective is the production of the syrup. The mixing of the
product is left to its subsidiary bottling companies. These bottlers are contracted and
distribute the soft drinks from there. They not only mix Coca Cola products, but competing
products as well. This has led Coca Cola to purchase many of the bottlers to ensure that their
products are receiving proper attention. This has also closed the market for smaller
competitors with less capital.

Goals
Coca-Cola has previously set a goal to recycle or reuse 100 percent of its PET plastic bottles.
In 2007, it spent $60 million in a series of recycling initiatives, including support of
RecycleBank's curbside collection program and the construction of the world's largest PET
bottle-to-bottle recycling plant in Spartanburg, S.C.

Coca-Cola Enterprises Inc. (NYSE: CCE) created Coca-Cola Recycling LLC to recover and
recycle the packaging materials developed and used by the Coca-Cola system. Coca-Cola
Enterprises, the bottling and distributing arm of the world's biggest purveyor of carbonated
soft drinks, wants to reduce its corporate carbon footprint by 15 percent by 2020.

At Atlanta-based company has promised to cut the carbon footprint of its business operations
by 15 percent from its 2007 levels, under a set of five sustainability goals it calls
"Commitment 2020."

That includes minimizing water use and returning as much water as it uses to the
communities it operates in, as well as recovering 100 percent of its packaging as part of a
broader recycling and renewable packaging strategy. Coca-Cola Enterprises is in a growing
club of companies promising to operate in more environmentally friendly and socially
conscious ways.

Market Segmentation, Targeting, Position.

S – Focus on people around the world, who like to drink a Coca Cola or other beverage from
Coca Cola company. But the Major segments are basically those people who take this drink
daily and those areas where the demands is higher then the other areas. There are so many
people who take this drink daily and those people who take weekly and those who take less
often are always there as well. So, their basic segments are those people who take this drink
regularly.

T – Coca Cola’s commercials basically based on young generations, So, the young generation
is the target market of Coca Cola because they want to represent Coca Cola with the youth
and energy but they also consider about the old people they take then as a co-target market.
So Coca Cola’s customers are the people around the world, in every group, age, income,
religion, nationality etc.
P – Coca Cola want to position their brand hinges on most recognized brand name in the
world, making person who drinks Coca Cola fell refreshment, the good test and the important
thing that they have developed its own positioning on the market that is making the different
flavor likes Fanta and Sprite to attack the competitor for providing competitive advantage.

Marketing Offer (4Ps)

Product

Coca-Cola always had developed their goods, being with the market share was going down as
the result of Pepsi came to begin the marketing came up with the economic declines after
World War II. Coca-Cola thought that the market of the black water might be arrived at
saturation point. Then, they have searched in many ways to solve the problems. One of all
method that is offshoot of product line to cause the new flavor of Coca-Cola for attention of
consumers and making the base of the new customers. They also had developed the package
differed from original that is crimpy cap likes Coke can, twisty cap and Coke diet for
different advantage of consumers especially that is convenient for transportation and keeping.
It can mention that is variety of products design. That is a good way to open the opportunities
of producing more and more to reduce the capital indirectly. Major brands of coca cola are
Coca Cola, Sprite, Fanta, Diet Coca Cola, Coca Cola classic.

Price

Coca-Cola had faced a problem since the economic in USA depressed after World War II era.
It made Coca-Cola must be struggled and changed the image of oneself and the conclusion
came out to image which was luxurious that had more power to purchase. From print
advertisement that they took Santa Claus to use for the first time for keeping the total of
selling and image of luxurious brand to affect until today.

Place

Coca Cola have the plan of business by put the burden of packing process and distribution to
the franchise to run the business. The bottler has a contract with the maker who produces the
syrup leavening and transports it to the provider such as super market, including take care of
position of the product and the advertising. And Coca Cola Company has many channel for
provide the product such as the restaurant, supermarket, hotel etc.
Promotion

For keeping the old consumer and increase more consumers. To create a plan to increase sale,
which is very important for persuading the consumer? So Coca Cola set many of promotion
for target to consumer and trader.

SWOT Analysis
Strengths- Coca Cola is known very well worldwide. Its brand is obvious and easily
recognized. Things like, logos and promos shown on t-shirts, hats, and collectible
memorabilia. Without a doubt, no beverage company compares to Coca Cola's social
popularity status. Some people buy coke, not only because of its taste, but because it is
widely accepted and they feel like they are part of something so big and unifying. Another
strength that is very important to Coca Cola is customer loyalty. The 80/20 rule comes into
effect in this situation. Eighty percent of their profit comes from 20% of their loyal
customers. Many people/families are extremely loyal to Coca Cola. It would not be rare to
constantly find bottles and cases of a product such as coca cola in a house. It seems that some
people would drink coca cola religiously like some people would drink water and milk. This
will be passed down do their children as they grow loyal to the company. With Coca Cola’s
ability to sell their product all over the world, customers will continue to buy what they know
and what they like Coca Cola products.

Weaknesses- Coca Cola is a very successful company, with limited weaknesses. However
they do have a variety of weaknesses that need to be solving if they want to rise to the next
level. Word of mouth is probably a strength and weakness of every company. While many
people have good things to say, there are many individuals who are against Coca Cola as a
company, and the products in which they produce. Word of mouth unfortunately is something
that is very hard to control. While people will have their opinions, Coca Cola has to try to
sway their negative views. If bad comments and views are put out to people who have yet to
try Coca Cola products, then that could produce a lost customer which shows why word of
mouth is a weakness. Another aspect that could be viewed as a weakness is the lack of
popularity of many of Coca Cola’s drinks. Many drinks that they produce are extremely
popular such as Coca Cola and Sprite but this company has approximately 400 different drink
types. Most are unknown and rarely seen for available purchase. Another weakness that has
been greatly publicized is the health issues that surround some of their products. It is known
that a popular product like coca cola is not very beneficial to the body and the health. With
today’s constant shift to health products, some products could possibly loose customers. This
new focus on weight and health could be a problem for the product that is labeled detrimental
to health.

Opportunities- Coca Cola has a few opportunities in its business. It has many successful
brands that it should continue to exploit and pursue. Coca Cola also has the opportunity to
advertise its less popular products. With a large income it has the available money to put
some of these other beverages on the market. This could be very beneficial to the company if
they could start selling these other products to the same extent that they do with their main
products. Another Coca Cola’s opportunity is the ability to buy out their competition. Brand
recognition is the significant factor affecting Coca Cola competitive position. Coca Cola is
known well throughout 90% of the world population today. Now Coca Cola wants to get
their brand name known even better and possibly get closer and closer to 100%. It is an
opportunity that most companies will ever dream of, and would be a supreme
accomplishment. Coca Cola has an opportunity to continue to widen the gap between them
and their competitors.

Threats- In the market Coca Cola still has to deal with many threats. Even though Coca
Cola and Pepsi control nearly 40% of the entire beverage market, the changing health-
consciousness attitude of the market could have a serious effect on Coca Cola. This definitely
needs to be viewed as a dominant threat. In today’s world, people are constantly trying to
change their eating and drinking habits. This could directly affect the sale of Coca Cola’s
products. Other threats are of course the competition. Coca Cola’s main competition being
Pepsi, sells a very similar drink. Coca Cola needs to be careful that Pepsi does not grow to be
a more successful drink. Other product such as juices, coffee, and milk are threats. These
other beverage options could take precedent in some people’s minds over Coca Cola’s
beverages and this could threaten the potential success it presents again.

Marketing environment
The factors outside marketing that affect marketing management ability to develop and
maintain successful relationship with its target customers. There are two types of marketing
environments that affect the Coca Cola Company:

Micro environment factors affecting Coca Cola

Customers: The Coca Cola is the only product in the world of the population is well aware.
The Coca Cola Company has always maintain excellent customer retention. Value of
customers for Coca Cola can be understood by these factors that Coca Cola spends a lot of
efforts (financial and human resource) on customer research. Coca Cola customers vary
massively in terms of age. From kids to youngster, form youngster to elders and from elders
to older, Coca Cola has always captured high customer attention from decades.

1.1 Consumer Market: This is the group of consumer from where coca cola purchases are at
the highest level because consumer market includes individuals and households.
Households mostly buy coke for daily use in large number and purchasing by individuals
is also the case of repeat purchase. Healthy consumer market is a big advantage for the
company.
1.2 Reseller Market: Reseller market of coca cola is very large all over the world. This is the
market, which buy the product from company and resell it at profit. McDonald is the
biggest example of reseller of coca cola. McDonald purchases coca cola from the
company and sell it with each fast food deal served at restaurant.

1.3 International Market: International market consists of those buyers who are in other
countries. Coke is worldwide known product and every country where coke is been sold
has a manufacturing unit of its own.

Competitors: All over the world there are two soft drink giants, Coca Cola and Pepsi. The
competition between two companies has always been neck to neck. Both these companies
keep try to take lead in terms of pricing, packaging, promoting and placing. Although both
these brands have sufficient amount of buyers all over the world but still both the companies
strive to achieve the market leader position.

MAJOR COMPETITOR PEPSI INTERNATIONAL

Pepsi-Cola is a carbonated beverage that is produced and manufactured by PepsiCo. It is sold

in stores, restaurants and from vending machines. The drink was first made in the 1890s by
pharmacist Caleb Bradham in New Bern, North Carolina. Caleb Bradham began
experimenting with combinations of spices, juices, and syrups trying to create a refreshing
new drink to serve his customers. He succeeded beyond all expectations because he invented
the beverage known around the world as Pepsi-Cola. Caleb Bradham knew that to keep
people returning to his pharmacy, he would have to turn it into a gathering place. He did so
by concocting his own special beverage, a soft drink. His creation, a unique mixture of kola
nut extract, vanilla and rareoils, became so popular his customers named it "Brad's Drink."
Caleb decided to rename it "Pepsi-Cola," and advertised his new soft drink. People
responded, and sales of Pepsi-Cola started to grow, convincing him that he should form a
company to market the new beverage. The brand was trademarked on June 16, 1903. There
have been many Pepsi variants produced over the years since 1903, including Diet Pepsi,
Crystal Pepsi, Pepsi Twist, and Pepsi Max….etc.

Intermediaries: marketing intermediaries help the Company to promote, sell and distribute
its goods to the end users, includes resellers, distribution firms and marketing agencies. The
Coca Cola company uses two technique for distribution, direct distribution and indirect. In
direct distribution company uses no agencies or middlemen to distribute the soft drinks but
company has its own system of distribution that include Company’s trucks and labor as well.
The other way is indirect distribution in which company opts for various distributions that
take the product from factory to the retailers and resellers.

Suppliers: always play an important role in any company’s operation. Suppliers provide
resources and raw material that company requires to produce the goods and services.
Macro environment factors affecting Coca Cola
Demographics: Coca Cola knows its people very well. It offers different flavors and
packaging according to its customer’s taste. It offers following sizes and every size is
targeting different slots customers. It targets its different sizes according to customers of
different age groups and occupation.

• SSRB (Standard size returnable bottle) is generally targeted to young children and
people going to school and universities. It is also targeted of lower class.

• LRB & PET 1.5 liter is usually consumed by households &I s one of its economy
packs.
• Disposable bottles are for the “on the go” people. As they don’t have the time to stand
at a spot & drink the whole beverage.
• PET 500ml was introduced, on the basis of the analysis, which shows that people
nowadays are in a trend to drink two 250ml Coca Cola bottles together. As Coca Cola
is a company who knows its consumers very well, they introduced the 500ml Pet
bottle.
• Business executives always expect something different for them form an organization,
so Coca Cola CANS were the answer to their expectation from coca Cola
.

Different flavors always attract different types of people. They are for the people who
always want to try something new.
• Classic coca cola is the one suitable product who don’t want a change in their life or
who don’t want to try something new.
• Keeping the people in view who are fitness oriented or who are health conscious, Diet
coca cola is the solution for all their beverage problems.
• Vanilla Coca Cola was introduced for the people who want a more sweetened
beverage & who are looking for vanilla in everything they have.
• Cherry & Lime coca cola is targeted to the people who want something citrus.

Cultural factors: When there is an event or an occasion Coca Cola is always there for its
customers.

Political factor: Political factors usually effects company working on the international level
doing imports & exports. Coca Cola usually performs its operations in the local market.

• Coca Cola is not usually affected by government regulations & deregulations as no

major changes occur in the food laws.
• Coca Cola is a very environmental friendly product. From the caps till the labels on
the PET bottles, everything is recyclable.
• Depreciation of currency generally has no major effects on Coca cola they really
don’t do imports& exports on large scale. They try to be local market oriented, they
keep at least one company owned plant in a country.
 • Sudden changes in political conditions in a certain country doesn’t effect much on
Coca Cola, as it is a purely consumer product.

Economic factors: Economic factors are those actors who effect the production of any
industry. So, Coke is not the out of question. If the economic conditions of the country is not
that strong and Coke increases its Price in this situation. Then it would impact highly
negative. And inflation is also not a good position for any country’s production point of view.
It also impacts highly negative in the Coke’s production.

Technological factors: Technology in any field is effecting the development of that industry
at a high rate. Beverage industry is also affected by the technological factors but in a positive
manner. The Coca Cola Company opted the recycling method to keep its environment clean
& also to have the soft corner in people’s heart. Coca Cola Company is producing new
packaging sizes with differentiated packaging with the help of new technology everyday.

Consumer buying behavior

Coca-Cola is committed to local markets, paying attention to what people from different
cultures and backgrounds like to drink, and where and how they want to drink it. Coca Cola
presented their product to the consumer which consumer can be seen as a product to reduce
the need of thirst. Of cause Coca cola satisfy the physiological, useful need thirst, and also
satisfy higher level needs such as hedonic needs, ego needs, and self actualization. They try
to make consumers believe that drinking Coca Cola involves a refreshing, exciting
experience in a way that is only satisfied with their product. Therefore Coca Cola is want
instead of a need. The Coca Cola Company spent a lot of money on advertisement to make
their perception toward to the brand. These campaigns first increase consumer’s motivation
to buy the products. Coca Cola offer the products with bright and vivid color for their
packaging and their logo and use famous people to attract the attention of consumers and
Coca Cola use effective technique to make their product is stored in the long term memory of
consumers and persuade them to buy Coca Cola by associating their product and brands with
sport activities, Coca Cola try to take away the approach avoidance conflict people can have
toward their product, and try to decrease the unhealthy aspect of their product. This way they
hope to persuade more people to buy their product. The values that Coca Cola wants to stress
are family, friendship, happiness, exercise, and be cool. It is a product for everyone, every
time, and everywhere.
Characteristics affecting Consumer Behavior:
Coca Cola purchases are influenced strongly by cultural, personal, social and psychological
characteristics.

Cultural Factors:

Every group and society has its own culture. Cultural factors affect coca cola purchasing
massively. Different communities and group of people have reshaped culture. Coca Cola
specially has become important part of every culture in which sales of coca cola go very high.
Soft drink is purchased in bulk for the parties and other occasions.

Social Factors:

Social factors include consumer’s family, small groups and status. Family members can
affect buying behavior in such a way that if number of children are more in a family than the
elders, then the children choice can matter a lot at time of soft drink purchase. Parents most
of the time, have to go according to kids choice and kids have more interest in coca cola
drink as compared to the elders. On the contrary sometime people go for the product that
shows their status in society. If a person has high status in society he or she might never go
for disposable coca cola bottle instead they might prefer the CAN packing. This change is
due to the status matter.

Personal Factors:

Buyer’s decision is also influenced by personal characteristics such as buyer’s age and life
cycle stage, occupation, personality and self-concept. Age and lifecycle stage means that
people taste and way of living changes with passage of time. Let’s say in earlier stage of life
if a person’s best choice for soft drink was Coca Cola classic but as he proceeds with his life,
way of thinking and style may change. He may not opt for classic coke anymore and might be
more interested in diet coca cola.

Psychological Factors:

A person buying behavior is further influenced by major psychological factors such as

motivation, perception, learning and self-beliefs.

Motivation is basically a drive that’s sufficiently pressing a person to seek satisfaction of the
need. Sometimes a person has no intention to buy a particular product but what happens is
that the group of people around him motivates that person. If a person is highly satisfied with
the taste of Diet coca cola, he may share his experience with another person and as a result
the latter person might get motivated by his opinion and may end up buying diet coke.

In some cases consumers have descriptive thoughts and beliefs about something. For example
if a health conscious person has a belief that diet coke is good for health, he or she is never
going to go for classic coke because diet coke has maintained a clear position in the mind of
that consumer. This is all about the self- beliefs and thoughts that might change with time
because mostly all the self-beliefs are secondary and not the core ones.

Competitive advantage analysis

Coca Cola has unique competitive advantages built around their brand, distribution, and
global reach. It took over 100 years to build out the world dominance and brand identity that
Coca Cola enjoys in the market. The Coca Cola Company has many strong brands that
consumer prefer and willing to pay for. Consumer will find Coca Cola and its logo on many
places. The Coca-Cola Company has dominated the soft drink industry and has expanded into
the water and energy drink industry. Their competitive advantage is expansive, reaching
across 200 countries with 400 products available. The Coca-Cola Company is not just about
soft drinks; they also incorporate water, tea, juices into their product line. This expansive
product diversification has penetrated the beverage industry and taken a hold of the market.
Coca-Cola continually tries to improve their image through advertising, which has won many
awards and try out different flavors. Coca Cola also struggles with respecting cultural
differences and adapting their practices to be beneficial to the countries for which it sells its
products.

Differentiated Marketing
Product differentiation
The shape of the bottle Coca-Cola is sold in is a classic example of effective product
differentiation. No other brand of cola is available in quite the same shaped bottle, so
consumers can instantly recognize the beverage. Also, as the Coca-Cola bottle shape is so
unique and original, consumers may see it as superior to generic brands that have a plain,
unoriginal bottle shape. The labeling of Coke products also differentiates them, red, a highly
stimulating color attracts the consumer’s attention, and the font ‘Coca-Cola’ is printed in is
fancy and more appealing than the simple, plain fonts generic brands such as ‘You’ll Love
Coles Cola’ use.

Services differentiation
The consumer can find Coca Cola in everywhere around them by performing an important
merchandising in supermarket, setting displays and keeping shelves attractive.
Channel differentiation
Coca Cola has managed their company marketing and sales strategy within channels. The
channel will direct to consumer and vending machines. The Coca Cola operates three primary
delivery systems for its business channel is bulk delivery for the channel o f large
supermarkets, mass merchandisers and club stores. For smaller channels Coca Cola does
advanced sale delivery for convenience stores, drug stores, small supermarket and full service
delivery for its full service vending customers.

People differentiation
The Coca Cola Company has a good relationship with their employee. They work with open
and honest communication among all employees. The Coca Cola Company used the policy of
workplace rights policy and also maintains the workplace free from violence, harassment and
provides a safe and health in workplace.

Image differentiation
Now Coca Cola sold in more than 200 countries and include the leading soft drink products.
Coca cola spends enormous amounts of money in advertising to differentiate and create a
unique image for their products. It provides different products to the customers and has been
very much successful in gaining a leading position among the competitors. Consumer can see
Coca Cola image on T-shirt, hats, and collectible memorabilia.

Levels of Product and services

Core benefit
Coca Cola product can fulfill the physical and social needs. Consumer can fulfill their needs
of thirst and also a social drink that they would have when they have a good time. For each
one of consumer have different lifestyle, behavior, the way of life, and the being format of
family. Coca Cola create their product to be suit to each of lifestyle such as Coca Cola offer a
different package, Coca Cola zero for some of consumer like a party and some love to take
care health and shape. And Coca Cola also use the Emotional benefit and Functional benefit
to help to satisfy consumer’s needs.
Actual product
The first advertisement of Coca Cola brand is Print ad, it was Media advertising, which Coca
Cola got good feedback from consumer. About the packaging, Coca Cola provides many
options of size, taste and flavors. Coca Cola Company has 400 brand including soft drinks,
bottled waters, fruit juices, and sport drinks, in over 200 countries. Coca Cola products come
with a dark label on the standard contour bottle using the Coca Cola wave. The appearance of
the product is eye catching with bright red color. It has a unique bottle shape design that fits
in hand. The bottles are light, with flexible packaging, so it won’t easily break and are not too
heavy to walk around with. The cans are also light and save.

Augmented product
Coca-cola Company offers a customer service to help any complain from the consumers who
are not satisfied with the product. And Coca Cola try o augmented product by provide their
coolers and freezer in the market. They provide this infrastructure free of cost just to provide
Coca Cola to their customer, which they want to purchase. Their salesman and machines
regularly visit all the shops where Coca Cola has its infrastructure to check that either it is in
proper condition or not, if not then they immediately change or repair it.

Brand building strategy

Brand development strategy of Coca Cola has been far reaching and has managed to remain
in the limelight ever since it became a favorite with the non alcoholic drinkers.
It has been noticed that brand loyalty is an important factor in maintaining
the number one position.

Founded in the year 1886, the Coca Cola company enjoys the status
of being one of the biggest non alcoholic beverage companies of the
world. It has a distribution system, which makes it unique from the
rest of the non alcoholic beverage manufacturers. Over the years,
Coca Cola has passed several tests of brand enhancement and the
company makes it a point that the products under the banner Coca
Cola continue to invade the minds of the consumers.

The brand development strategy of Coca Cola comprised

redesigning of its brand development policies and techniques to
keep up with the changing mindset of its consumers. Earlier, this
brand believed in the following:

• Afford ability
• Availability
• Acceptability

However, this brand development strategy of Coca Cola was re worked to stress on
the following instead:

• Price value
• Preference
• "Pervasive penetration".

The essence of brand building of the company lies in the fact that it wants its consumers
accessibility to be "within an arm's reach of desire". In an attempt to build its brand identity,
as many as 20 brand attributes are tested every month involving as many as 4000 customers.
The brand development strategy of Coca Cola is effective as it has been able to construct,
manage as well as maintain its brand image.

Another reason why this brand has gained unanimous acceptance all around the globe is due
to the fact that it has been able to connect very well with its consumers. This implies brand
loyalty. Brand loyalty has been instrumental in keeping up the brand image of Coca Cola. It
believes in shelling out the best so that the consumers are retained by default. A part of the
brand building technique is also to enhance "purchase frequency".
The company has also invested in various advertisement campaigns often engaging the
services of celebrities around the globe. In addition to the consumers, there is another
category of consumers, who increase the consumer base and they constitute the collectors of
the brand. The collectors usually indulge in collecting old as well as upcoming logos of Coca
Cola, bottles and literary matter.

With regard to the brand development of Coca Cola Zero, the company came out with an
advertisement, which was quite different from the conventional ones. In this regard, (no
calorie beverage), it has shelled out three types of products.

• Coca Cola Classic

• Diet Coke
• Coca Cola Zero.

There are few experts who believe that when Coca Cola had the tag line of
"The Real Thing", it was really that but with the invention of various
categories of coke, the "real thing" changes to "many things", and
the original flavor is usually lost. Hence, the brand building
strategies should be such that it does not confuse people and is able
to retain consumers despite the fact that several new non alcoholic
beverage firms are on the anvil.

Brand Equity
Coca-Cola's brand equity is difficult to measure because they have extended their brand to
include numerous products. In addition to the numerous of versions of Coca-Cola worldwide
that compete against other beverage brands, Coca-Cola competes with itself. Nationally there
are numerous versions / brands that are a part of the Coca-Cola family. Some of the brands
include Coca-Cola Classic, Dasani Water, Full Throttle, Fanta, and Soy Products. In addition
to competing against itself the Coca-Cola Company has saturated the market and consumers
who may dislike one product may actually enjoy a different Coca-Cola product. However, the
consumer may be unaware that the beverage is actually in the Coca-Cola family. As a result
measuring brand equity may be difficult as consumers may be loyal and repeat customers of a
brand and not know its origin.

Coca Cola was taking its core product, Coke, and expanding the product in new form factors
and new overseas markets. The brand promise stayed the same whether it was sold in a Coke
store in New York or a road side stand in Mongolia - refreshment, good times, and pure
Americana.

Despite the numerous brands and the difficulty in measuring brand equity it is evident that
Coca-Cola has high brand equity. They are a company who has been in business for many
years they have gained the business of consumers in the soda market as well as numerous
other beverage markets nationally and internationally. Their sales and growth show that they
are a successful company
Brand image
“A unique set of associations in the mind of customers concerning what a brand stands for
and the implied promises the brand makes.”
There could be hardly any person around the world that hasn't heard the name Coca Cola.
Ever since it beginning as world's leading name in cold drinks, Coca Cola has created a
strong brand image irrespective of age, sex and geographical locations. Millions of people
around the world are consuming cold drinks or soft drinks as part of their daily meal. Coca
Cola, ever since its inception has been the leader in soft drink market.
Brand image is the significant factor affecting Coke’s sale. Coca-Cola’s brand name is very
well known all over the world. Packaging changes have also affected sales and industry
positioning, but in general, the public has tended not to be affected by new products. Coca-
Cola’s bottling system also allows the company to take advantage of infinite growth
opportunities around the world. This strategy gives Coke the opportunity to service a large
geographic, diverse, area.

Brand Positioning
The location of a brand in relation to its competitors in some pre-defined space. The space
may be defined by criteria used by consumers, such as "value for money" or "age of
consumer" etc.”
5 main factors that go into defining a brand position.
1. Brand Attributes
What the brand delivers through features and benefits to consumers.
2. Consumer Expectations
What consumers expect to receive from the brand.
3. Competitor attributes
What the other brands in the market offer through features and benefits to consumers.
4. Price
An easily quantifiable factor – Coca Cola prices vs. competitors’ prices.
5. Consumer perceptions
The perceived quality and value the brand in consumer’s minds. The Coca-Cola Company
produce a range of beverages suited to different ages, stages, lifestyles and occasions. This
includes soft drinks, diet drinks, juices and juice drinks, waters, energy drinks, sports drinks
and cordials.
As part of a healthy, varied and balanced diet and an active lifestyle, all products can be
enjoyed by the majority of people.
It is committed to helping customers select the product that is best suited to their needs
through the provision of detailed product information supported by general advice on healthy
eating, drinking and lifestyles.

Product Life Cycle

Products go through various steps throughout their useful lives. They are introduced, grow,
mature and eventually decline. In the introduction phase of the life cycle, start-up expenses
are high and sales are low. This is the stage in which the product in placed in the market for
consumer use. Sales begin to increase and expenses tend to decrease during the growth
phase. This is the point in which the product becomes more known in the market and
consumers begin purchasing. During the mature phase of the product life cycle, the company
must re-examine the product and determine new ways to make it marketable. Consumers
begin to take the product for granted and no longer necessarily choose it first. If a new
product comes in at this point with new, more attractive features, it can force the product into
the decline stage. Eventually sales will begin to decline and the company must decide
whether to continue with production or to part ways with the product. Coca-Cola has been in
the industry since the nineteenth century, so if they continue with the same marketing
strategy, then they will send themselves irrevocably into the decline stage.

Coca-Cola (Coke) is currently moving towards the declining stage of the product life cycle.
The company must now determine whether they will stop producing Coca-Cola, change the
soda, find new uses for it, seek new markets for the soft drink or if they will maintain their
current strategy (Peter, 2006). At the moment, the soft drink company is attempting to
effectively seek new markets. Coke’s core product, Coca-Cola, has received many criticisms
because of the health issues that arise from its use of caffeine and high fructose corn syrup.
Coke knows that they must begin to acknowledge the shift in consumer tastes in order to
remain competitive. They have done this successfully many times in the past, as can be seen
with the introduction of their popular Diet Coke brand. Coke must break into the non-
carbonated drink market in order to acknowledge consumer’s new interest in healthy drinks.

Product Market Strategy

Coke must decide what approach to take in order to create market share. There are multiple
avenues that the company can take. It can focus on market penetration, market development,
product development or diversification in order to reach its greatest potential. Market
penetration is used to raise the sales of current products to current customers. With this
approach, a company is not trying to create new markets or new products. They feel that they
have a good product and a strong customer base for the product. They are attempting to
increase sales through increased marketing. The market development strategy focuses on
finding new customers for the company’s existing products. Companies must use large
amounts of money to help consumers recognize the usefulness of the product in their market,
but in the long run this could create a large return. Product development strategies are used to
present new products to current customers. Most of the time, this means finding new uses for
their products. The company can also use diversification through the introduction of new
products that break into an ignored market. This can mean breaking away from the
company’s core competency’s though.
Coke has decided to focus on the non-carbonated drink market in order to gain market share.
This means that they must concentrate on the product development strategy to bring new
options to their current customers.

Product Pricing
As has already been established, the Coca-Cola Company sells a wide range of products
(primarily beverages) to effectively meet the needs of different consumers. The Coca-Cola
Company sells beverages of different sizes, ranging from individual 375 millilitre bottles to 2
litre bottles. Sometimes buying the larger bottles of Coke or other Coca-Cola brand soft
drinks involves a significant saving. Supermarkets may mark down the price of 2 litre bottles,
but leave the price of smaller bottles unchanged.

This selling technique is very successful. Consumers, realising the saving that can be made
by buying the 2-litre bottle of Coke, are more likely to purchase the larger bottle. As you are
getting more for your money, any informed consumer would opt for the larger bottle.

Market channel
Coca Cola has managed their companys marketing and sales strategy within channels. Have
you ever considered the significance of the Coke vending machine to the success and
profitability of the Coca Cola company? This channel is direct to consumer and vending
machines often have little to no competition and no trade or price promotions. Develop
solutions for groups of customers and deploy your benefit throughout the channel as
compared to forcing a broad solution onto multiple customer types.

For many food companies, the answer to this single question can point to sizeable new profits
and opportunities for growth via adding new sales channels and opening new markets with
profits and speed.

The Coke Company operates three primary delivery systems for its business channels:
• Bulk delivery for the channels of large Supermarkets, Mass Merchandisers and Club stores;
• For smaller channels Coke does advanced sale delivery for convenience stores, drug stores,
small supermarkets and on-premise fountain accounts.
• Full service delivery for its full service vending customers.

Key Channel listing

1. Supermarkets

2. Convenience
3. Fast food

4. Petroleum retailers

5. Chain drug stores

6. Hotels/resorts

7. Mass merchandisers

Promotion mix
Coca-Cola uses a marketing communication mix to communicate customer value and build
customer relationships. Coca-Cola's marketing communications mix consists of.

Advertising

• Coca-Cola has used advertising to build an image for it's company. Coca-Cola uses
the television for advertisements. By using the television for advertising, Coca-Cola
can gain good marketing coverage by appealing to consumer's senses.
• The company has also used magazines as a form of advertising, such as ad in Time
Magazine. By advertising in magazines, Coca-Cola can geographically and
demographically select consumers that it wants to target.
• Outdoor advertising is also a form that Coca-Cola uses. Coca-Cola, among other
business, ranks one of the top users of outdoor media. By advertising outdoors, Coca-
Cola can strategically position it's advertisements and also achieve high repeat
exposure.
• Coca-Cola uses the internet to promote it's products. The company has it's own
website, which is quite simple to navigate through. The website allows customers to
become interactive through various games, contests, shopping, and through a special
 section of the website that enables consumers to find out how they can help their
community.

Public Relations: Coca-Cola handles public relations by including a press center on its. This
section of the website allows consumers to view press releases, executive speeches, and
statements made by the company regarding current information. In the statements, Coca-Cola
can address law suits, rumors, stories, new products, and activities. There is also a section of
the website devoted to investors. Here, current, or future, investors can access financial
statements and up-to-the-minute stock information.

Personal Selling: Coca-Cola has many salespeople, who are individuals representing the
company to communicate, sell, service, and build relationships with customers. These
salespeople promote their product to different customers within their regions, and once they
sustain a customer, they sell their products to them and service them many times per week.
These individuals form close relationships with the customers in order to continue business
with them.

Sales Promotion: A sales promotion is an activity that is implemented to boost the sales of a
product or service temporarily. Coca-Cola often runs sales with stores to quickly increase
sales. Coke gives its product to the retailer for a lower price, and in-turn the retailer sells the
product on sale. To advertise for these sales, the retailer generally runs an ad in their store
sales circular at attract consumers.

Direct Marketing Tools: Coca-Cola uses direct marketing in many ways. First, the company
partners with various restaurants, movie theaters, ect. to carry it's product. This way, when a
customer orders a drink, the only brand they are offered is Coca-Cola, which forces them to
buy a drink from that brand. By doing this, Coke forces out other competition, and keeps the
restaurants, or other businesses, purchasing their product over and over again. Coca-Cola also
uses it's name for sporting events, like the Allentown Iron Pigs baseball field. The Coca-Cola
Field offers a fun time for family and friends while only serving Coke products. This also
allows for salespeople to invite retailers to one of the many Coca-Cola boxes for great food,
fun, and some "business talk", as well. Next, Coca-Cola has begun to use mobile advertising.
According to mobilemarketingmagazine.com, Coke uses mobile graphics and texts to appeal
to markets on a more personal level. Last, Coca-Cola uses viral marketing. The brand became
a giant because of individuals telling their friends, family, or coworkers about how great
Coke products were. Today, the company can still use viral marketing to their advantage. For
instance, when Coke produces a new product, and someone on their lunch break purchases
that new product, and enjoys it, they will tell others in the office about how great the new
product is. This will cause others to purchase the product, and in-turn increase sales.

Conclusion
The Coca-Cola Company runs a successful marketing campaign, effectively attracting
consumers’ attention to its products through advertising. The Coca-Cola Company also
employs a range of other effective selling techniques as part of its marketing campaign,
including product development, product differentiation, product pricing and product
enhancement. The progress and advancement in the field of technology in the fields of soft
drink raw material, production, manufacturing, information and communication technology
and logistics have great positive impacts on the operations and sales of Coca-Cola. The
availability of new soft drink ingredients enables Coca-Cola to introduce new variety of its
products to its existing consumers, not forgetting to attract the new consumer groups. The
use of the latest information technology has made able the company to attract the new
generation of soft drink consumers with the latest features of song downloading. Also the
existence of company website has enabled the world to be in touch with the latest progress,
promotions and offers of Coca-Cola.

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