CIE 3

Bussiness Policy & Strategy

Name- FatimaShaikh SRN-201900326
Name- Gauri Sawant SRN-201900088

Company Selected
COCA COLA

The Coca-Cola Company is a multinational beverage corporation incorporated under Delaware's General

Corporation Law and headquartered in Atlanta, Georgia. The Coca-Cola Company has interests in the
manufacturing, retailing, and marketing of non-alcoholic beverage concentrates and syrups, and alcoholic
beverages. The company produces Coca-Cola, the sugary drink it is best known for, invented in 1886 by
pharmacist John Stith Pemberton. At the time, the product was made with coca leaves, which added an
amount of cocaine to the drink, and with kola nuts, which added caffeine, so that the coca and the kola
together provided a stimulative effect. This stimulative effect is the reason the drink was sold to the public
as a healthy "tonic", and the coca and the kola are also the source of the name of the product and of the
company. In 1889, the formula and brand were sold for $2,300 (roughly $71,000 in 2022) to Asa Griggs
Candler, who incorporated the Coca-Cola Company in Atlanta in 1892.
The company has operated a franchised distribution system since 1889. The company largely produces syrup
concentrate, which is then sold to various bottlers throughout the world who hold exclusive territories.

On 15th September, 2021Coca-Cola HBC ranked #8 in the Refinitiv Diversity & Inclusion Index.

January 2021,Coca-Cola HBC receives 2020 Excellence in Risk Management Award from FERMA.

Coca-Cola HBC receives Association for Talent Development “Excellence in Practice” Award.

Coca-Cola wishes to craft the brands and choice of drinks that people love, to refresh them in body & spirit.
And done in ways that create a more sustainable business and better shared future that makes a difference
in people’s lives, communities and our planet.

Business Strategies followed by Coca- Cola

Product Strategy

Coca-Cola has diversified its products vastly over time. The company offers 500 sparkling and still beverage
brands in its portfolio. There are over 3,900 beverage options in total in its product mix.
Although Coca-Cola, the company’s flagship product, is one of the most well-known and valuable brands
amongst all. 
The following are some of Coca-most Cola’s well-known brands:

Coca-Cola- It is the world’s most popular and highest-selling soft drink, as well as one of the most
recognisable brands.
Sprite- Is another popular soft drink with a lemon-lime flavour that was first produced in 1961.
Fanta- Is Coca-second-oldest Cola’s brand, having been created in 1940. It comes in a signature orange
flavour.
Diet Coke- In several markets, Diet Coke is referred to as Coca Cola Light. A calorie- and sugar-free soft drink.
It was first introduced in 1982.
Coca-Cola Zero: Introduced in 2005, this sugar-free beverage became a million-dollar brand in 2007.

Place and Distribution Strategy

Coca-Cola, which has been in business for more than 130 years and operates in more than 200 countries
throughout the world, has thus amassed a massive distribution network. Their place strategy is highlighted
by their extensive distribution network. The Coca-Cola company manufactures the beverage using its
patented formula and distributes it to bottlers across the world.
The company itself controls the brands and is in charge of consumer brand marketing campaigns as well as
manufacturing and selling concentrates, beverage bases, and syrups to bottling plants. Their bottling
partners then manufacture packages, merchandise, and distribute the finished branded beverages to their
vending partners, who finally sell them to consumers.
Its products can be found in practically every retail shop and supermarket. Coca-Cola products are sold at
2.5 million stores in India. Their products are also distributed in a variety of hotels and restaurants around
the world.
 

Pricing Strategy

Coca Cola follows a price discrimination strategy in its marketing mix. This means that they charge different
prices for products in different segments. The beverage market is considered an oligopoly, with a small
number of sellers and a large number of purchasers. And Coca-Cola and Pepsi are their two most powerful
brands. Hence, Coke products are priced similarly to Pepsi products in the same segments.
Consumers in developing nations like India are price sensitive and may flip if Coca-Cola prices its goods too
high in comparison to Pepsi in a certain segment. As a result, both parties agree to preserve price parity in
each segment. Coca-Cola also provides discounts on bulk purchases by bundling items.
There are three different pricing strategies which a company can primarily follow:  Price Skimming:
Charging premium prices initially to earn maximum revenue.  Market Price: Setting price as going market
rate (by competitors)  Market Penetration: Charging lowest price to achieve highest possible sales. To first
determine its price, they used a cost-based pricing system for its Original Coke. They first designed the
product, the original coke, determined the costs for the product (product costs, capital costs, and
operational costs), set a price based on the cost of Coke, and finally convinced the consumers of the soda's
value. From there, Coke chose to use market-penetration pricing for it's price. Here, they set low initial
prices in order to attract a large number of buyers quickly, to gain a large market share. Currently, Coca Cola
products to meet the competition against major players like Pepsi, products pricing is set around the same
level of competition. So, their primary strategy is Market Price because they believe price should not be too
low or too high than the price competitor is charging from. Their customers otherwise nobody will buy your
product. Coca-Cola uses the following alternate pricing strategies over the year for Coke: 1. Psychological
Pricing In 2009, Coca-Cola uses the psychological pricing strategy for their Original Coke. For instance, the
price of a 2-liter bottle of Original Coke was $2.49. They set the price to end in 9, because this makes
customers think the price is less than $2.50, to appeal to the customer. 2. Promotional Pricing Coke also uses
the promotional pricing strategy. Coca Cola has offered promotional prices very frequently. In store that sell
Coca-Cola, prices are often temporarily priced below the list price to increase short-run sales. Especially on
some occasion Coca Cola reduces its rates.
 International Pricing Coke also uses the international pricing strategy. For instance, the price of a 2-liter
bottle of Coke in the United States is different from the price of the same product in China. This has to do
with the difference in economic conditions, competitive situations, and laws. Thus, Coca Cola has been
following various pricing strategies based on the requirement and based on the introduction of new
products targeting different audience.

Coke: Initially Coke mimicked Pepsi by introducing 300 ml cans at an invitation price of Rs.15 before raising it
to Rs.18. When it realized that the brand did not hold enough attraction to fork out a premium from the
consumers, it introduced a lower-priced, similar-sized version to gain consumers. It can be inferred from the
above article that Coca-Cola and Pepsi are perfect substitutes and hence the pricing strategy of one directly
impacts the demand for the other product.

Promotion & Marketing Strategy

Coca-Cola is one of the most valuable brands in the world because it has one of the most
successful marketing strategies. Coca-Cola is often associated with happiness, in fact, the words Coca-Cola in
mandarin means "Delicious Happiness". This is exactly what the brand stands for bringing together people
and creating happy moments in their lives. The company’s products are now available in every country
including North Korea and Cuba. A uniquely designed marketing strategy of Coca-Cola has been the reason
behind the company’s reach internationally.

In India, Coca-Cola first took over Parle Foods and acquired local brands like Thumps Up, Limca, Mazaa, etc.
The combination of Indian and Western brands enabled Coca Cola to extend its global branding.

In India, where people are price sensitive and prefer beverages like nimbu paani and tea over soft drinks,
Coca-Cola managed to get a huge audience by following an intensive brand-building program.

Coca-Cola has grown exponentially at the rate of 40% from 2002 by following the Affordability strategy and
continues to grow in double digits since then. The consumer base has also grown from 162 million in 2006 to
a whopping 233 million in 2004.

The factors of Coca-Cola's marketing strategy are:

The Shape of the Bottle

One of the reasons Coca-Cola has been successful is its consistency and the fact that everyone no matter of
age or country can recognize the product. In 1915, when the brand was losing market share to hundreds
of competitors, a national contest for a new bottle design was launched. This helped the customers to
identify the original bottle and also made the product look premium.

The iconic font and logo of Coca-Cola

The iconic font and logo of Coca-Cola have remained consistent from after it was made, making it
unforgettable for its customers. The logo was first made in 1923 when the company decided to use the font
of the Spenserian script which at that time was only used by accountants. This made the company logo
stand out from the others.

Slogan

Even after 125 years and more the company has remained consistent in communicating one strong and
compelling message in its slogans like “enjoy”, “You can’t beat this feeling” and “happiness”. Showing that
Coca-Cola has always had simple and understandable slogans which can be relatable and translated in all the
countries.

Sponsorship to programs and events

May it be any country, many of these events or programs that we watch on television have been sponsored
by Coca-Cola making it one of the most recognizable brands. The company has sponsored American Idol for
13 years, Olympic Games for 90 plus years to even NASCAR to name a few.

Coca-Cola is the gold standard in terms of advertising and branding. Coca Cola’s promotion strategy focuses
on aggressive marketing through ad campaigns using media channels such as television, online commercials,
print media, sponsorships, and so on. Coca-Cola sponsors important events such as American Idol, BET
Network, NASCAR, NBA, NCAA, Olympic Games, FIFA World Cup, among others.
Coca-Cola also airs commercials on television in a variety of national languages around the world. Coca-Cola
started the “Taste the Feeling” campaign in India in March 2016, intending to remind people of the joy and
happiness that Coke delivers to their life. Coca-Cola has evolved into a mass-market product that is expected
to be available at any time, anywhere.

Recent Business Strategies by Coca- Cola

Long-Term Growth Potential

There is a significant long-term growth opportunity for both the industry and our company. In terms of
markets, commercial beverages represent approximately 70 percent of beverage consumption in the
developed world, and we have a 14 percent share of across cold, and hot nonalcoholic beverages with a very
small position in hot, flavored alcohol beverages today.

In the developing and emerging world, only about 30 percent of beverage consumption is commercialized
and our share position within that is about half of what it is in the developed world. The developing and
emerging world representing 80 percent of the world’s population; with over 6 billion people.

Sustainability

Doing Business the Right Way and Making A Difference Through ESG

At The Coca-Cola Company, we strive to use our leadership to be part of the solution to achieve positive
change in the world and to build a more sustainable future for our planet. We act in ways to create a more
sustainable and better shared future. To make a difference in people’s lives, communities and our planet by
doing business the right way. Our ESG agenda and initiatives are integrated into every part of our dual
flywheel strategy, helping to drive growth while achieving our purpose as a company: to refresh the world
and make a difference.

Conclusion

Coca Cola is clearly an extremely successful company that has nailed its product offerings in terms of quality
and variety both. Their pricing is affordable and caters perfectly to their audience and industry. Their
geographical reach as we saw is commendable, thanks to the many decades of experience under their belt.
With its continued promotions and signature branding, the company is sure to enjoy its distinguished
position in the market. 
Companies such as Coca-Cola are heavily reliant on their success through marketing and are always looking
for talented marketers