Proceeding with the differentiation strategy, let me define it first.,Differentiation strategy, as the name
suggests, is the strategy that aims to distinguish a product or service, from other similar products,
offered by the competitors in the market. It entails development of a product or service, that is unique
for the customers, in terms of product design, features, brand image, quality, or customer service.

Step 1

Coca cola generates revenue by selling concentrates and syrup to bottling facilities around the world.
They have an approximately 225  bottling facilities  world wide and those bottling partners are also the
one responsible in manufacturing, packaging, merchandising, warehousing and selling  finished products
to retailers and other distributors.

In the previous year, the records said that 36% of coca cola business was categorized as finished product
operation while 64% was classified as concentrate operation that’s why we identified that operation,
Logistics, and Marketing and Sales as their most value creating activities of coca cola.  In operation, this
is where the ingredients and materials are processed to create coca cola products. Then in logistics, this
deals with inventories of materials, warehousing and distribution then lastly, the marketing and sales
where Coca-Cola promotes and introduces their products to their customers.

Step2

To further improve the brand and maintain its position in the market, Coca Cola must further improve
their water efficiency in manufacturing operations because Coca Cola is made of water, Issues with water
supply and quality could also impact the business.

According to Coca Cola, in 2004, they were using 2.7 liters of water to make a 1 Liter of product. This
means that 1 liter of water is in the product and another 1.7 liter is used in the manufacturing process. At
the present time, they were able to cut it down to 1.92 liters

Alongside with this goal, Coca Cola Founded RAIN or the Coca Cola’s Foundation Flagship African
community program to help achieve the united nation’s Sustainable Development goals on Clean water
and Sanitation Access.

Next, To further improve Coca cola’s brand and maintain its market position.

They must have continuous support in research and development. Coca cola is a “ Consumer-Centric
brand” where it requires shifting focus from what the company wants to sell to what the consumers want
to buy.

One of their focus is Product development., in fact ,18 out of their top 20 brands have a low  or no sugar
options. It is what their consumer wants. Since, some beverages with sugar content sometimes lead  to
diabetes and cause obesity which cause people to be health conscious and coca cola knows eating and
drinking less sugar is increasingly important to many, so they take actions to meet their needs.

Also, Coca cola’s 40% of their sparkling brands come in smaller packages.

Smaller packages make it easier to control added sugar intake while people can still enjoy their favorite
drink.

Coca cola also has more drinks with additional nutrition benefits.
They look for ways to make their drinks better and more nutritious by providing vitamins, minerals and
electrolytes and more dairy and plant-based beverages.

Moreover, Coca cola are also giving the people the information they need.

Coca cola leads in the food and beverages industry by providing clear, easy to find nutritional information
right up front on their packages to support informed choices.

Step 3

Coke differentiation strategy is for development of product (soft drinks) and services (delivery) to offer
unique features & attributes.

Value Addition in features helps a company to offer a special price for it. Like when you buy mineral
water it costs you less but when you buy vitamin water, its price is little high. This higher price is to
Cover Company’s cost that usually doesn’t cover routine priced products.

Customers will surely pay when they don’t have any alternative for you.

Coca Cola maintains their differentiation from other drinks by spending more than 20% of their
advertising budget to only differentiate their product. It has positioned successfully with following
standards

· First to Corporate repute for innovation and quality

· 2nd to the Communication of product strength perceived by users

· Then lastly, for Enjoy & fun symbol

Product Differentiation Strategy is a good choice for Coca-Cola, however it can be detrimental if they are
not careful. A couple more years of slipping market share may take Coca-Cola into the Stuck-in-the-
Middle category of which it can be very hard to climb out. There is a fine line between being confident in
a company and being content.

Coca-Cola is better be careful that they do not mistake confidence with being content as their
overwhelming success for over the past century and very well may lead to ignorance of their current
situation.

Therefore, if Coca-Cola wishes to not only exist but also prosper in the future, a much stronger
concentrated effort toward a differentiation strategy will prove to be highly beneficial.