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Marketing Management Practice of Coca-Cola: April 2020
Marketing Management Practice of Coca-Cola: April 2020
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The Coca-Cola group is an American international business, producer, seller, and marketer of
non-alcoholic soda drinks and syrups. The organization sells Coca-Cola, founded in Atlanta
Georgia in 1886 by John Stith Pemberton.Since 1889, the firm is owned and operated in Atlanta,
Georgia, but was founded in Delaware, has run an independently owned and operated supply
system. The business manufactures primarily syrup extract, which is then distributed to several
bottlers globally that operate licensed franchises. The group owns Coca-Cola Refreshments, their
central bottler in North America. Abdul Monem Ltd. (AML) is the bottler of the official Coca-
Cola, Sprite and Fanta in Bangladesh licensed by the Coca-Cola International head office in
Atlanta, USA. With three processing plants established in Dhaka, Comilla and Chittagong and
with a strong supply system extended across the nation, AML has founded its solid and
successful presence in Bangladesh. Coca-Cola, which has over 500 brands and operates in more
than 200 countries, has invested $74 million to establish the plant in Bhaluka, Mymensingh and
developed other infrastructure. IBPL's plant runs two lines producing 600 bottles of Kinley, a
drinking water brand of Coca-Cola, and 720 bottles of Coke brands per minute. Coca-Cola, the
second-largest player in the carbonated beverage market in Bangladesh after PepsiCo, is a very
established company in the country. It employs more than 500 people, while 5,000 more are
working with it indirectly.
Intranet:
The Coca-Cola Corporation is one of the most successful and popular companies in the world
and reflects far more than its iconic coke. 700,000 workers globally to accomplish its goal by
the aid of its established intranet that helps all the employees connect and function
efficiently. Upon contact with Md. Maksudur Rahman, the Executive of Trade Marketing at The
Coca-Cola (International Beverage Private Limited) we learned that the company has made use
of SharePoint 13, iConnect Express, SAP integration, Chatter and many more intranet web
surfaces to boost productivity.
Core Competency:
Core competency is the fundamental characteristic of an enterprise, offering the base on which
the company can expand, taking advantage of emerging technologies and bringing benefits to
customers. Many companies, including established rivals or fresh entrants into their business,
cannot quickly emulate the core competency of an organization. These competencies also
referred to as essential competence or defining qualities help build an efficient strategic edge for
businesses.
Coca-Cola has competency in its brand name identity and disparate taste factor of its drink. It is
namely these two characteristics that highly differentiate it from its competitors. It also
comprises of certain competencies that are firm specified such as its framework of licensed
bottlers and the secret recipe content or composition that has not been imitated by any of its
rivals so far. Moreover, as the company functions globally, its managerial strength and potential
also serve as another source of competitive advantage that it poses over its competitors. Its
managerial potential lies in its organizational framework that plays a vital role in the attainment
Holistic Marketing:
Holistic marketing is a theory that recognizes the company and its components as a common
unit and provides a mutual goal to operations and individuals connected to it. A firm is very
much like a human being, in the sense that it has various components, and only when all the little
components work together for the same target does it run efficiently. This interrelationship is
reinforced by the holistic marketing theory that assumes that a broad interconnected outlook is
vital to achieving the best performance. When designing and executing strategic campaigns, the
holistic marketing approach includes the concerns of customers, companies, staff, vendors and
the society overall. With the heightened participation levels and intensified competition in the
industry, holistic marketing has grown in prominence. Companies acknowledge that they can
differentiate themselves through a strategic marketing strategy, all while building cohesion
between divisions of the company. This approach is composed of integrated marketing, internal
marketing, societal marketing and relationship marketing. This paper will closely inspect each
one of these.
Integrated Marketing:
Integrated marketing is a strategy for providing a cohesive and consistent interface for customers
that can help them engage with the company by planning and coordinating all interactions
(advertising, product promotion, direct marketing, public relations, and digital media) in such a
manner that they all function together as a single force and build on a powerful and centered
corporate identity. The main aim is to generate value for all the stakeholders of the firm with its
broad mix of products, appropriate pricing strategies, smart placing capabilities, and effective
promotional activities.
Product:
Coca-Cola has around 500 brands that comprise of many product ranges that provide an
approximate of 3900 choices of drinks to its customers. Their brand holds a financial value of
4 | MARKETING MANAGEMENT PRACTICE OF MBA 649.3 (EDU)
almost 21 billion dollars. Some of the most known products are namely, Fanta, Powerade,
Fresca, Coca-Cola Zero, Simply Orange, Del Valle, Coca-Cola, Minute Maid, Diet Coke, Sprite,
Coca-Cola Life, Powerade Zero, Ciel and Glaceau Vitaminwater. Other than these soft drinks it
also offers other ranges of product lines such as juice drinks, sports drinks, energy drinks and tea
and coffee. Most of its products are available at both ranges of high and low-calorie composition.
Coca-Cola sells its products in various sizes of milliliters and liters in both plastic and glass
bottles and cans as well. Their technical capability of providing unique shapes and packaging to
its products has helped it in standing out and dominating the market by differentiating itself from
the rivals. Since the launch of the bottling plant, the US soft-drink maker has introduced four
brands, including Coke Zero and Sprite Zero, and recently launched a spice flavored drink,
locally known as jeera pani.
Price:
Place:
The biggest factor that helps Coca-Cola operate globally over 200 different nations is its
powerful and efficient distribution capability and network. Coca-Cola is completely dependent
on its bottler partners for the distribution of its products. It operates in six various areas namely,
Promotion:
Coca-Cola has always been ahead of its rival companies due to its very creative and effective
advertising strategies. Coca-Cola adopts and implements aggressive marketing tactics and
releases advertising campaigns both in offline and online media, print Ads, and exclusively
engage in many sponsorship opportunities and programs such as Fifa world cup, American Idol,
Olympics games, etc. The giant company not only addresses its advertising campaigns on its
customers but also on its distributors, bottlers and retailers by assisting with hoardings and
fridges for advertising and branding purposes. Apart from these, it has hired many famous
personalities and celebrities as its brand ambassadors and also captures the emotional insights of
its customers by engaging and showcasing many activities related to CSR. Few of its famous
campaigns include, “Share a Coke”, “Always Coca-Cola”, “The World's Cup” and exclusively in
Bangladesh, “Nikhoj Shobder Khoje”. The market leader currently streamed approximately 2500
promotional videos on the YouTube platform and its latest advertising expenditures rose upto 2.6
billion dollars.
Internal Marketing:
Coca-Cola not only focuses only on its external customers but it also invests efforts in satisfying
its internal customers which includesthe workers and employees.Coca-Cola markets its products
and creates a favorable image in the minds of its internal customers such that these internal
customers can then reciprocate it to the external customers. When the company and its internal
customers believe and act upon the same philosophies it is only then they can best acquire and
serve its external customers. For instance, when the company launched the campaign “Share a
Coke” it made sure that the campaign was followed by its employees as well. During the
Coca-Cola hires various assessment tools directed at each step of the interview process. These
may include group discussions, written case studies, role plays, reasoning tests etc. they mostly
hire through the newspaper, social media and websites. The giant company motivates its
SOCIETAL MARKETING:
This section of the holistic approach requires companies to consider the well-being and goodness
of their surroundings, particularly the society as a whole. This could take into consideration the
environmental factors, serving and benefitting the less privileged people, abiding by cultural
ethics and morals and by involving in these activities with philanthropic organizations. When a
company engages in these activities, it greatly boosts its corporate and brand image insight of its
customers and benefits its stakeholders.
The CSR model of the company comprises of 5P’s namely, people, partner, portfolio, profit, and
the planet. As per recent statistics, Coca-Cola has conducted more than 5000 sustainability
projects all over the world. In such projects, “Me, We and the World” the beverage giant has
made investments contributing to the development of the women labor force and other
entrepreneurial concurrences. Coca-Cola formulated the Corporate Social Responsibility
approach for the 'Live Positive' initiative, which encompasses specific areas: consumption
advantages, active living, environment, electricity and atmosphere, clean packaging, water
and conservation. Throughout turn, Coca-Cola continues introducing further measures to
improve its image. For instance, during India's environmental crisis, Coca-Cola had been a CEO
Water Mandate affiliate and coordinated with the World Wildlife Fund (WWF) on the company's
water concerns and management plan.
Every year Coca-Cola contributes a minimum of 1% of its profit to multiple projects, campaigns,
and associations. On the year 2014, Coca-Cola emitted $126 hundred thousand, or 1.3 percent of
its net profits, which was allocated in constructive and safe living projects, water conservation
services, healthcare, woman entrepreneurship, and welfare and relief efforts services. Being
a part of CSR, the global beverage giant outlined a big project in Bangladesh namely the "Save
My School (SMS)" system administered at multiple schools. It was launched by the non-
governmental organization (NGO), Plan Bangladesh. SMS scheme envisioned, Coca-Cola
RELATIONSHIP MARKETING:
The relationship marketing branch of the holistic marketing approach sheds light on a lengthy-
term client relationship and involvement instead of brief-term goals such as product sales and
revenue. The above approach focuses on directing marketing efforts at current customers in order
to create effective, social and transcendent consumer associations. Such links also help the
company gain regular profits, free brand awareness public relations and more leads. Consumers,
shareholders, financial bodies, manufacturers, distributors, government bodies and competing
agencies are mostly crucial stakeholders to gain and to retain as each has a direct effect on the
company's performance or loss. Approximately 94 percent of the global population is completely
conscious of Coca-Cola's red and white emblem. Coca-Cola has linked its goods to anything that
is important to its consumers, and which reaches their consciences. Through this approach, Coca-
Cola relies on its consumers to boost the company through their enthusiasm for the brand. Coca-
Cola promotes on Facebook and wins more clients through web media.
Coca-Cola gathers all the consumer information from the Facebook page to ensure a suitable
customized experience to draw more consumers and hold back current consumers as well. Coca-
Coca-Cola has become one of the names with the most popular worldwide. Coca-Cola is
renowned for its strong global identity and international reach, and its inventory contains many
billion-dollar products. But developing such a large international brand often needs the effective
management of the value chain. The value chain encompasses all operations from bringing the
raw materials from different sources to the gross sales and after-sales service. There are several
activities that make up the value chain. Both primary and support activities comprise the value
chain process. This paper inspects each process in the value chain below.
Coca-Cola has operated a global supply chain that encompasses hundreds of producers and
vendors. Their vendors are regarded as corporate associates. Such company partners supply the
raw resources including food, manufacturing, and equipment as well as products and services to
their network. It also has, nevertheless, established fundamental guidelines to be adopted
by suppliers. Distributors are at the basic obligated to abide by all relevant rules and policies.
Coca-Cola frequently promotes proactive approaches and activities on the community and at
work in its instructions. It also has established an outstanding partnership with its manufacturers,
allowing it to ensure a consistent and seamless resource supply.Water is the primary component
for all Coca Cola Company processed goods and the organization periodically encounters serious
difficulties in obtaining this specific raw resource. Coca-Cola makes heavy use of high fructose
corn syrup (HFCS) and this raw material is imported from US manufacturers and shipped
through vehicles. There are also several components that are being imported from around the
globe. Orange juice and orange juice concentrate, for instance, originate in Florida and the
Southern Hemisphere, specifically Brazil. The inbound logistics are facilitated through vessels
and vehicles for foreign transactions. Coca-Cola respects the collaboration of their suppliers. In
2013, $952 million was expended on different vendors, up 14.8 percent from the previous year.
Operations:
From a regulatory and administrative point of view the Coca-Cola Company is not a centralized
organization. Coca-Cola produces and markets concentrates, soda mixes and flavorings to its
bottling companies retain brand control and establish business policy and implement it. Bottling
companies produce, store, sell and deliver the finished commodity to consumers and distribution
associates.Coca-Cola's management role encompasses focus production of other headquarters
administration tasks. Coca-Cola is a multinational company that works independently in every
city where it conducts business. Most local outlets run the Coca- Cola's distribution and do not
operate any of its bottling companies. The organization produces and distributes soda bases and
syrups for bottling procedures. The brand maintains the logo and is eligible for the promotional
campaigns. Coca-Cola operates in seven hub branches namelyEurasia and Africa, Europe, Latin
America, North America, Asia Pacific, Bottling Investments and Corporate.
Procurement:
Coca Cola undertakes producers and vendors in hundreds. This utilizes innovations to automate
and render the overall process more productive. It has established strong ties with its distributors
and issued instructions that must be met by them.
During 2014, 2013 and 2012, shipments of drinks belonging to the Coca-Cola group contributed
respectively to 28.6 billion, 28.2 billion and 27.7 billion unit cases respectively. Export revenue
in the domestic market US accounted for 19 percent of the overall export value in 2014. Canada,
China, Brazil, and Japan accounted for 31 percent of global revenues outside the US. Coca-Cola
incorporates innovative communications approaches through the simultaneous application of
advertisements, promotional campaigns, activities and interactions, and strategic blend concepts
for public relations. The idea regarding brand ads is linked to being satisfied, loving life and
Services:
Coca-Cola retains its customer care practices through internet chat with a digital operator on the
company's specialized customer service telephone official website. The Coca- Cola page
provides a detailed FAQ that discusses in-depth certain facets of their goods, and the webpage
often answers a broad variety of primary and related brand-related theories.
Technology Development:
Coca-Cola has a clear emphasis on innovations and R&D. From manufacturing through to
delivery and trading, it has grown in technologies throughout. Beyond this, it also emphasizes
technical advancement through research and growth. This has six R&D sites across the globe
linking it with clients, business start-ups and academic students to international development and
evaluation hubs. The business interacts with stakeholders in other sectors to drive creativity by
goods, labeling, machinery, and the like. Throughout in this context, Coca-Cola constantly
concentrates on productivity creativity.
A value delivery is the process through which company design their product in a way so that it
gives maximum value to their customers using it. The value that the company intends to deliver
their customers can be not only in the sort of product, benefits and attributes etc. Whatever that
creates value for the customers of the company , should be included in the value delivery
process.
1.Choosing the value: The very initial step for cocacola before producing any beverage product is
to pursue Segmentation, Target Marketing and positioning (STP Model). To know what their
customers need, Coca-Cola uses the consumer segmentation criteria and market into different
groups: behavioural, psychographic and profile. After deviding the market and analyzing return
sales and rate, cocacola want to invest in the market and they basically follows the mass
marketing strategy.
2. Providing value: Since, cocacola is one of the top beverage company of the world, they basically
target the whole world and thus their amount of value providing is huge. After the top
management of Cocacola company define corporate strategic plan, then marketing department
decides about the specific drink type, price setting and and product distribution worldwide.
3. Communicating the value: For value communication, Coca Cola depends on media widely to
carry out its integrated marketing communication strategy. The medium followed by the
Strategic Plan: Strategic planning includes ongoing process through which a company set
priorities, strategic objective and aims to execute them for the target market.
Inspite of having the existing weaknesses and strengths, Coca-Cola ensures their leading position
as a strong brand and a market leader in the soft drinks industry. At present, the Coca-Cola
Company offer more than 500 brands in more than 200 countries and serve 1.6 billion servings
daily. They target consumers around the world and for all age group, and gender.
Tactical Plan: Tactical planning is basically a manner through which companies prioritize and
decide strategic initiatives. Afterword, which markets should be better to to enter, what
products should be introduced and how to compete with rivals more effectively are decided by
those initiatives. Cocacola pursues some tactical initiatives regularly. From them, One of the
tactic is to increase the amount of product that Coca-Cola customers buy mostly.Basically,
Coca-Cola determines to accomplish this goal by launching new products for example salty
snacks which may make a good combination with soda. They also show extensive advertising
for their target current customers for the purpose of keeping the brand in customers mind. In
such ay, cocacola makes sure that customers will think of Coca-Cola soda first when they feel
thirsty and wish to purchase a drink.
The strategic planning: Strategic planning includes-
1. Intensive
2. Integrative
3. Diversification
Market Development:
This is the key strategy for grabbing new market and customer.
This strategy has been highly effective and helpful for Coca Cola to grab the lead the beverages
industry.
Product Development
It is the strategy to bring new product to market to increase sales.
Eventually, the product range of Coca Cola has grown widely and now its huge product
portfolio is around 500 dazzling and still brands and it serves almost 3900 beverage choices. as a
result now, 21 billion dollar brands in its portfolio
SWOT ANALYSIS
SWOT analysis are to offer the competitive imminent into probable troubles that may create an
effect on the journey of the success of the brand (Business Dictionary 2011). A SWOT analysis
is also known as an Internal-External analysis, that helps the company in setting up a business
plan and eradicating threats as well as weaknesses, widen further strengths and opportunities
(Mind Tools, 2016). The internal environment contains the strengths and weaknesses on other
hand, the external environment includes the threats and opportunities.
STRENGTH:
WEAKNESS:
Negative publicity: There are some rumors about the depressing effects that can be occurred by
having coke. For example, during 2007 a rumor spread about containing pesticides in coke
OPPORTUNITIES:
Introduce new products and diversify its segments – Coca-Cola has the potential opportunity
to bring in new product line in food and health segments similar to Pepsi do so that those
products can add to their revenue, and they can separate from from carbonated soda.
Increased sales possibility in developing nations: Tanzania, India, Bangladesh are developing
nations, and in this countries the sales goes almost doubled in the summer. So these countries
will work as Cocacola’s largest market opportunities.
Packaged drinking water –Besides carbonated soda, cocacola also have drinking water brands
for example, Kinley. This is an opportunity for them to increase and broaden their product line of
healthy drinks in the market so that they get rid of criticism.
Bring advanced supply chain system – Coca Cola’s business structure is completely reliant on
supply chain and logistics. Cocacola always come up with some superior and enhanced methods
for allocation can become an opportunity.
THREATS
LOYALTY
Satisfaction is basically the customers fulfillment response about the product and service of the
company (Zeithmal and Bitner, 2003). And, Studies in the past found that customer satisfaction
has significant positive influence on customer loyalty (Schirmer et al., 2016).
The basic vision of cocacola is that, their existence is for satisfying customer needs. They have
more than 400 brands of beverages designed to satisfy their wide range of customers worldwide.
They always try to satisfy their whole target market including people of all ages, gender, races
etc. As a result, their customers remain loyal to them. Coca-Cola leading global brand which has
demonstrated brand loyalty during its 125 year record of being successful. The brand achieved
their popularity through economic declines, altering consumption prototype, and enhancing
concern over healthy consumption of drinking and eating behavior.
There Three things are under marketers offensive strategy and build brand equity.
4. Transferability
5. Adaptability
6. Protectability
These three things are under defensive role for leveraging and maintaining brand equity.
Memorability:
A brand name should be memorable so that it can be recognized by any group of people.
Cocacola initiated lots of activity such as advertising that relate with their occasions, vending
Likebility of Cocacola:
Likability is the opportunity to convince the customers by brand elements. Cocacola is more
likable among all beverages to their customersfor the following factors:
Brand’s story relatable with real life
Express emotion through your content. Example: Coca Cola’s Taste the
Feeling campaign.
brand’s personality
Popular Celebrities
Sponsorship and events
TRANSFERABILITY:
It is the degree to which a brand can increase their product line by their brand elements to
increase brand equity.
Cocacola in now thinking about extending their product line such as manufacturing salty snack
that go well with their soda drinks.
ADAPTABILITY:
The more adaptable and flexible the brand elements, the easier to cope with the changing trend
of customers choice and demand.
Cocacola keeps updating their logo time to time for years to be up to date with the latest fashion,
trend and opinions.
PROTECTABILITY:
Lastly, a brand should select its brand elements which is protectable legally and competitively.
Cocacola is legally protected by having:
Segmentation: Market segmentetaion help a company to develop their products and services,
indicating what their customers will prefer and innovate new potential sectors. Cocacola markets
the products by selling into diverse or several markets (e.g. Diet coke) (Patrick and Thomas,
1992). To find out about customers need, Coca-Cola go through the consumer segmentation
criteria and market into different groups including demographic, geographic, psychographic and
behavioural.
1. Demographic: Cocacola people of all age, gender and race. But as it a premium brand,
they mostly target medium and high income people.
The Market reaches segments among three variations including age, gender, income.
Age:
Criterion Age
Oasis 20-30
Diet Coke 30-50
2. Geographic: Cocacola is a global leading brand currently having market in over 200
countries.
For example, USA, Saudi Arabia, Pakistan, Bangladesh ,China etc.
3. Psychographic: Psychographic segmentation devide the market according to social class,
personality and lifestyle.
Cocacola targets middle class or medium income people
The reason behind choosing middle and high class people is that, they brand their product as a
premium product.
PERCEPTUAL MAP
PROMOTION
Coca-Cola’s promotion is something else and people all around familiar with this brand its
because of their excellence promotional activities. Because of interesting and unique promotional
They generally manufacture a drink that most people enjoy along with that it has brought several
other companies that produce soft drinks to expand its wings but coca cola has always been the
marketing king in the world of soft drinks. Basically memorable campaigns and ads they create
holds generation after generation. Each ad they make its like an art. We will be discussing about
some of their promotional tools.
ADVERTISING:
As Cocacola is one of the most valuable brand in the world and industry leader of
carbonated drinks, it has always published advertising that has touched people’s
soul. Its has provided some of the most memorable ads we can ever think of for
PERSONAL SELLING
Personal selling basically refers one to one selling to the customer .coca cola has taken the
personal selling to another level. it has established lots of booth here and their which works like
a person from coke. you just pub money in the booth and you get a coke. It took this revolution
on another level in 2009 when it launched their soda fountain call Coca-Cola free style . here
they had 100+ variety of coke’s product and you can mix any flavor with other if you want . for
example you can mix fanta with diet coke.
DIRECT MARKETING:
Merging with food chain: Coke merge with food chains where those food
chain only serve coke ( example McDonald) so whenever customer visit
those shops they will get a coke and nothing else. Thus they connect with
customers
Sponsoring Sports event: Coke associates with lots of sports event
worldwide. Those sports event has lots of fan base and by sponsoring them
coke catches those fans attention directly.eg : EPL, Olympic games.
PUBLIC RELATION
Coca cola does its PR activities though awareness campaign, CRS activities and different events.
They take much care on the public relation platform They believe in making customer
relationship above all. The most memorable example can be what coke did in UAE. Where they
SALES PROMOTION:
Coca-cola spends a huge amount of money in sales promotion. Although they are one of the
world’s biggest company they always comes up with new selling ideas and different offerings to
the customer. It may be on a vacation or a holiday or on a regular day. They do it in different
way. At time they go to campus and promotes its product or they give sale on their product and
interestingly they offer gifts after buying coke. E.g. Mobile phones, laptop, recharge etc
INTERNET
The presence of Coca Cola on the Internet is oriented towards creating partnerships rather than
making sales. Coca Cola's presence on the internet has developed a positive outlook towards the
brand, growing recognition and desire to buy. The availability of Coca Cola on the Internet was a
SEGMENTATION:
Marketing Segmentation is basically portioning a market into potential customer’s group who
basically share similar needs and likely to have similar purchasing behavior. Intension of such
strategy is to understand the market and choosing the portion of market that will give maximum
benefit to the company. Coca cola follows following segmentation strategy
DEMOGRAPHIC SEGMENTATION:
PSYCHOGRAPHIC SEGMENTATION
The coca cola company's psychographic segmentation is of social status, lifestyle, profession,
education level, and personality. Segmentation of coke is to everyone. A coke doesn't usually
target lifestyle, profession, or education rates. Nonetheless packaging is available for different
customers. They basically focus on the fact that people should think coke is for all.
BEHAVIORAL SEGMENTATION:
Coca cola’s finest marketing strategy is their behavioral segmentation. In this portion they target
different occasions that people celebrates together such as Christmas, Eid Diwali, Thanks giving
etc.They pick those time when people generally share their happiness together with family and
friends, they come out with such amazing ads on those time which is amazing to see.
TARGETING:
Age: coke doesn’t have a specific target portion. It targets the whole market all together. But yes
they focus on the age group (12-30) most. To be honest they don’t specifically communicates
with those rage of people, instead they convey the message to whole market but still they are
successfully reaching them over hundreds of years. May be through partnership.
Life style: Although coke goes not target specific life style as it is for all but it seeks attention
more busy life style and young generation are considered to be the most profitable part of Coca
cola’s consumers.
Nature: fun, joy, entertainment loving people who wants to share happiness with one another
POSITIONING:
An integral part of people’s daily life .it creates its intimacy with its customer by bringing out
emotional storytelling and their unique selling approach .Coke has positioned itself in the soft
drink market so well by the statement “THINK GLOBALLY ACT LOCALLY” by following
this principal it is able to know how a developing area thinks and how a developed area thinks.
Combining these two together they are so successfully able to catch every customer they target
as they know the core of that region and they act according to that. Like in Bangladesh during
ramadan they release and ad where they focus on family bonding while fasting. That’s so
interesting to see. It created its image who is offering something to drink with family friends and
regular life. The best thing they did is when we think of celebrating together we always keep a
coke to share with other. That’s the beauty of their positioning strategy.
Differentiation is basically how people can differentiate a product from other. Coca cola follows
following differentiation strategy
It has created itself as a brand which is there whenever we want to share our joy and happiness.
In every occasion it’s a must for us to drink with our loved ones and friends. That psychological
approach made them different from other.
PRODUCT LINE
A large variety of product line serves every types of people. Coke took this approach very seriously and
they manufacture huge ranges of product with different size and different flavor that serves every
person’s choice.
Coca-cola’s vending machine are different from other vending machine . the main point of
differentiation here is , you can customize your own drink. For example you can mix coke life
with a diet coke. Whatever combo you want you can get it from here. And it accepts mobile cash
so that’s an additional benefit.
COMPETITION
Company like coca cola is so popular over the world that, threat of new entrance is very low
here. There are some major thing that make threat of new entrance nil for coca-cola
Brand Name: The brand cola is very big that’s why if people get an option of a new cola and
among coke, in almost all the case people would go for coke
Distribution channel: coca-cola has a worldwide distribution channel. It has many plant around
the world. its very difficult to match up that for new companies.
Huge initial investment: for matching up to the level of coke, you need huge initial budget for
plant and others and that seems impossible for anyone
Economic of sale: all the established company enjoy an economic of sale due to its operation
expertise. And its seems difficult for new companies
Loyal fanbase : coke’s biggest strength is their loyal fan base . for new companies it will take
hundred of years for this kind of fanbase.
SUPPLIER POWER:
BUYER POWER:
In case of coca cola , its bottling partners are its buyers. And among those partners most of the
plant are owned by coca-cola. So buyer has little or no buying power over coca-cola.
They used a cost-based estimation method for their Original Coke to first determine its quality.
We initially wrote the item, the first coke, agreed on the expenses for the (service costs, capital
expenditures, and operating costs), set a cost considering Coke's quality, eventually convinced
the customers of the appreciation. Coke used market-entrance assessment at its expense from that
point on. Currently, Coca Cola products are placed at a common degree of competition to face
opposition to significant competitors like Pepsi, products valuing. In this way, Market Price is
from which the competitor is paying. Coca-Cola uses the following alternate pricing strategies
1) Psychological Pricing
Coca-Cola uses psychological pricing to grab their customer attention. For example, In 2009
Coca-Cola used their Initial Coke psychological estimation method. For example, a 2 liter
Original Coke jug cost $2.49. They set the cost to end in 9, because this causes consumers to
2) Promotional Pricing
Coke also takes advantage of the discounted pricing policy. Coca Cola delivered the discount
prices as often as possible. In store that offers Coca-Cola, the cost of creating short-run deals are
consistently priced surprisingly below the rundown price. Particularly on some event Coca Cola
diminishes its rates like in Ramadan Coca Cola decreases its rate unto 5 Rupees on 1.5 litre
container. This gives the item a sense of criticality and consumers are purchasing the item
despite the lower cost. Coca cola organization offers middle men or retailers incentives in such a
way as to give them free example and free purge bottles, thus putting their item on the market
through these retailers and center man. That's also the reason coca cola has been seen more on
the market.
3) Segmented Pricing
Coke takes advantage of the segmented demand approach. Coca Cola is sold at various prices,
depending on different products. They get to increase their sales from selling product in different
Following are the different packages available for different target audience:
4) Discriminatory Pricing
Coke also follows discriminatory pricing strategy, because when sold through different channels
they have different prices. Such as their: wholesalers / distributors, stores, hotels, gas stations,
electronic distributors.
5) International Pricing
Coke additionally utilizes the international pricing strategy. For example, the cost of a 2-liter
container of Coke in the United States is unique in relation to the cost of a similar item in China.
This needs to do with the distinction in financial conditions, aggressive circumstances, and
laws.Coca Cola has adopted numerous assessment protocols along these lines in view of the
importance and consideration of delivering new products based on specific gathering of people.
shops and departmental stores. Provides more profit margin in this form of sales business.
2. Indirect Selling: In this form of distribution, all of their sellers and agencies are expected
to cover all areas to ensure their customers that Coca Cola products are available.
follows ‘Think local, act local’ slogan. Coca-Cola operates its marketing communication through
some media which are mainly publishable media and visual/aural media.
Publishable Media:
Newspapers
Newspapers are one of the most common media advertisement forms which Coca-Cola widely
uses. Coca-Cola Company is one of the organizations that in its earlier stages featured media ads,
and the company has been engaged in media advertisement for over 100 years.
Magazines
They are commonly used to market Coca-Cola on a global basis. The magazines are picked by
the firm's target consumer group according to their readability. Generally, these advertisements
take a whole page of the magazine to maximize the positive effect of the marketing campaigns.
online advertisement of the brand is made by the extensive use of banners, pop-up
advertisements, on-site sponsorships and numerous other types of online advertising across
thousands of websites across the globe. Here are also many forums and websites dedicated to
Visual/aural media:
Television
In several countries, Coca-Cola has been sold over television. Coca-Cola produces
advertisements in different countries. Such advertisements are designed taking into account the
local community in order to prevent any misunderstandings due to variations in the various
countries 'community.
Cinema
Coca-Cola is marketed in the movies as well, and this is achieved in two ways. Firstly, before the
movie begins, Coca-Cola video advertisements are played in the cinemas. Secondly, Coca-Cola
is marketed by product placement in movies where the drink is placed somewhere throughout the
film and the product placement value is maximized by having the drink being consumed by the
lead character.
These are also commonly used as an integral part of media promotion at Coca-Cola. The
billboards are typically mounted across the globe at city centers and highways, as well as certain
parts of the rural areas. On the other side, posters are usually placed in public transports, stores,
and restaurants.
Coca- cola is a global brand. People are having this product for more than 125 years. The success
they have now is because of the establishment that has created from hard work of more than
hundred years. And they success is the result of continuous effort on marketing activities,
economics of sale and successful supply chain operation. But they main key point of their
product is their marketing strategy. From the time of Candler & Robert to till now they have
adopted some of the finest marketing tool that set example of how market works they shown a
different direction in marketing and promotion and successfully set an standard which is barely
be touched. This excellence on marketing pushed here Coca-Cola today.
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