Professional Documents
Culture Documents
ON
University of Delhi
Submitted By
Sourav Mog
Section – A
Roll No. 168
Under the supervision of
Mr. Manohar Lal
Headed By
Department of Commerce
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DECLARATION
This is to certify that the substance in this study is based on my original
research work and has not been submitted in part or full for any other
degree or diploma of any university.
Mr. Manohar Lal Sourav Mog
2
ACKNOWLEDGEMENT
As a student of commerce, I have gone through literature and material
available on topic “Coca-cola Marketing Perspective”. I feel indebted to
several authors and researchers who helped me a lot in understanding
various issues relating to my topic.
Sourav Mog
Date:
Place: Delhi
3
CONTENTS
PERSPECTIVE 8-20
CONCLUSION 32
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CHAPTER 1
INTRODUCTION
The History
Dr Pemberton was skilled doctor and his chemistry work was of high
quality. He developed chemical laboratories that were later state run
analytical facilities. But he never realised the potential of Coca Cola.
There were his successors that developed Coca Cola in the brand it is
today. Until 1905 the soft drink marketed as tonic and contained traces of
illegal drugs as well as caffeine-rich kola nut. By the late 1890 Asa Grieg
Chandler directed the Coca-Cola Company and syrup sales rose for 4.000%
between 1890 and 1900. The famous logo, which is highly recognizable
everywhere, was an idea and work of Dr. Pemberton's accountant Frank
Robinson.
Asa Candler took over the Coca-Cola Company as owner soon after Dr.
Pemberton's death. He partnered with Frank Robinson and redid the
formula for Coca Cola syrup. Frank Robinson's creation was the logo, script
and a push that the classic slogan "delicious and refreshing" be tied to all
the future advertising. Coca-Cola Company also pioneered in distribution
and coupon sales.
Under long term tenure of chairman and CEO Woodruff between 1923 and
1981 Coca-Cola Company expanded in 44 countries and was global
business. In sixties soda fountain was something like water cooler is today -
a meeting and chat place during breaks. As soon as bottled beverages and
packed ice cream took over people forgot about soda fountains. Advertising,
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packaging, distribution, and trade secret protection has made possible that
over one billion of servings of Coca-Cola are sold today daily.
In 1931 he introduced Coca Cola Santa Claus repeating its appearance and
good wishes every Christmas since. In his sixty years at the wheel he was
responsible for twelve ounce Coca Cola can in 1960's, the Coca Cola contour
bottle in 1977, introduction of two litre bottles and plastic bottles. He raised
prices of syrup for distributors but also improved efficiency and productivity,
emphasized quality control, and improved sales department. "The Boss" also
started big item advertising and promotional campaigns. (Source: Cola
Marketing History) The publicly traded company has also built a strong
trust of its investors (Warren Buffet Secrets, 2010).
About Coca-cola
The coca-cola company and its network of bottlers comprise the most
sophisticated and pervasive production and distribution system in the
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world. The company aims at increasing shareowner value over time. It
accomplishes this by working with its business partners to deliver
satisfaction and value to consumers through a worldwide system of superior
brands and services thus increasing brand equity on global basis.The
associates of the company jointly take responsibility to ensure compliance
with the framework of policies and protect the company’s assets and
resources while limiting business risks.
The reason for taking up this project is that I wanted to know the marketing
strategy, advertising policy, marketing mix, market positioning, and market
share of such a huge company. The promotional activities and the
advertising policies always attracted my attention. I wanted to know how
coca-cola manages its business affairs and operations all over the world so
successfully. I wanted to know whether the market strategy helped coca-cola
in running successfully over such a long period of time.
But there were certain limitations as well. There are many aspects of the
company on which a wide research could have been done but due to lack of
available time and a constraint on word limit, the study could not be done.
Lack of availability of data was another such constraint
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CHAPTER-2
MARKETING
Coca Cola advertising targets youth of all generations who want to enjoy life
and have fun. Because of its longevity, the youth targeted twenty, thirty or
forty years ago is no longer young but it feels like they are still young when
with Coke.
To name just a few of Coca Cola's advertising campaigns: "Have a Coke and
a Smile", "Coca-Cola. Enjoy", I'd Like to Buy the World a Coke", "The Real
Thing". Every marketing campaign was strategically prepared and best
advertising g venues chosen. Coca Cola crews visit campuses and make
practical jokes and films.
There is a YouTube Coca Cola Channel with over 23000 members. On this
channel we can watch short videos where real person is hidden in vending
machine and starts giving bigger and better servings, two cokes for one and
the like. In one of this shows they brought to the campus oversized vending
machine where coin dispenser was as high as basketball rim and students
had to climb to it but the machine would then gave also oversized cokes.
Videos are funny and they travel through viral networks carrying the
message very fast and far. Student population is the most receptive Cokes
target. The Coca-Cola Company has a few official contact points in new
social media (like Face book, Twitter, and YouTube) which they use to
spread the message.
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name Coca Cola in unique branded logo is repeated twice and the words
delicious and refreshing stand on the stand above a bouquet of fresh roses.
It looks that Coca Cola target upper class of society at the beginning of the
century. By 1918 the feature was omitted from advertising. A poster from
1918 features beautiful young lady in white drinking Coca Cola as the logo
on the glass shows with a playground as a background and some greenery
around to contrast whitish main motive. Text below the picture promotes
Coca Cola as "The Drink of All the Year" and mentions words delicious and
refreshing.
New six pack carrier has been introduced in 1948 and six bottles were sold
for 25 cents (plus return deposit) and the name was shortened to Coke so
the red circle does not carry the whole text just Coca Cola logo above
bracketed new name "Coke". 5 cents Coca Cola vending machines were
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introduced in 1949 and a picture of red Coca Cola vending machine on the
panoramic background calling: "Inviting workers everywhere to the pause
that refreshes with ice-cold Coca-Cola 5 cents". Coca-cola brought a change
in its packaging by the introduction of six-pack.
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As Coca Cola is best ice cold the company introduced special refrigerators
that later on developed into vending machines. Vending machines became
Coca Cola's next big distribution channel bringing their product into
companies' and schools' lunch rooms and other places where people
gathered in numbers. Coca Cola contracted McDonalds and some other
franchise chains and their contracts require exclusivity. We cannot get Pepsi
or any other brand "Behind the Arches" of McDonalds. The law forbids the
same tactics in supermarkets and other retailer chains but Coca Cola is very
good in choosing the right spots for their promotion because they do it
extremely professional.
The Coca Cola Company in Atlanta only makes syrup. Coke is bottled close
to its distributors as transportation costs plays big role in the final product
price. It is much cheaper to send overseas only syrup and then add 90% of
its bulk closer to consumers than it would be making and transporting final
products to worldwide destinations out of Georgia. Coca Cola introduced
cans because they were safer for vending machines and cheaper to make
than glass bottles. Both were partially replaced with plastic bottles for the
same reason as they are cheaper to make and harder to brake or distort.
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(Open Happiness, 2010) where everyone is invited to join happy and
purposeful self improvement that will ultimately lead to happier society with
rhymes "open up a little happiness today, so I can be someone new...open
up a smile on another face, so I can feel something new." Here Coca Cola
uses positive association and positive psychology to enter universal desire
for deep, lasting happiness, even life essence (Kracauer, 168). And this is a
logical extension of Delicious and Refreshing self centred fulfilment slogan
that Coca Cola has been advertising for the first hundred and something
years.
From being refreshment it now intends to move up the human needs leader
and associate itself with lasting open happiness. Coca Cola has been adding
popular music to their advertising since early times. For Coca Cola this
move came naturally as "colas and popular music share similar
demographics" (Klein, 7). So water, sugar, some secret ingredients and a few
bubbles made Coca Cola the biggest beverage company, operating in 206
countries round the globe, evaluated at 67 billion dollars and daily
worldwide consumption of 100 million gallons (375 million litres ).
MARKETING MIX
PRODUCT
With a portfolio of more than 3,500 beverages, from diet and regular
sparkling beverages to still beverages such as 100 percent fruit juices and
fruit drinks, waters, sports and energy drinks, teas and coffees, and milk-
and soy-based beverages, its variety spans the globe.
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It has made great strides in expanding the level of nutritional information on
the packaging, offering consumers factual and meaningful information
about the beverage products to assist them in their beverage selections. The
policy is to place nutritional information on all of the labels, where feasible.
Where this is not possible, for example on recyclable glass bottles, it provide
nutritional information via other means such as Company websites
The coca-cola company has a wide range of products. They are the
following:-
Getting shelves
They gets or purchase shelves in big departmental stores and display their
products in that shelves in that style which show their product more clear
and more attractive for the consumers.
Sale Promotion
Company also sponsor college and school’s cafes and sponsors their sports
events and other extra curriculum activities for getting market share.
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UTC Scheme
UTC mean under the crown scheme, coca cola often do this type of scheme
and they offer very handy prizes in it. Like once they offer bicycles, caps, tv
sets, cash prizes etc. This scheme is very much popular among children.
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1971 I’d like to buy the world coke
1975 Look up America
1976 Coke adds life
1979 Have a coke and smile
1982 Coke is it!
1985 We’ve got a taste for you
1985 America’s real choice
1986 Red, white and you (for coke classic)
1986 Catch the wave (for coca-cola)
1987 When coca-cola is part of your life, you can’t beat the
Feeling
1988 You can’t beat the feeling
1989 Official summer drink
1990 You can’t beat the real thing
1993 Always coca-cola
2000 Coca-cola enjoy
2001 Life tastes good
2003 Coca-cola …real
2009 Open happiness
2010 Twist the cap to refreshment
2011 Life begins here
SOURCE-Book Advertising Management
Shruti Jain
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The message was stated as "The ideal beverage for discriminating people".
An advertisement from 1907 also depicts angel like lady in white gloves as if
selling Coca Cola at the stand. Besides the Coca Cola logo being repeated
three times there is also price for a drink at 5 cents. In 1909 an a billboard
advertisements shows something like all ladies party in the background with
three young fashionably clothed women drink and the message written
depicts "Relieves the fatigue that comes from over-play, over-work, and over-
thinking, delicious, refreshing, thirst-quenching" with 5 cents price tag.
The logo is repeated twice. The fatigue relieving theme was also a theme of
billboard advertisement from 1910. There are two pictures in the
advertisement one with tired executive behind his desk and one with a
waiter filling a glass from soda fountain. The logo is depicted centrally in
large print. It also looks that Coca Cola has got some competition by 1910
as the words below the logo say: "It will relieve your fatigue, cool you
comfortably, calm your jangled nerves and quench the thirst. But be sure to
get the genuine, Cooling Refreshing Wholesome" Another advertisement from
the same time shows a young lady sitting on a bench with only blurry
picture of colonial home in the background, holding a bottle with Coca Cola
logo and drinking from it using a straw. The message: "Drink Coca Cola in
bottles delicious and refreshing”.
In 1936 Coca Cola celebrated its 50th anniversary by showing two beautiful
ladies in bathing suits, one from 1886 that covers mostly the whole body
and the other in one-piece swimsuit from 1936 showing much more skin,
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both holding a glass with Coca Cola logo. The price: still 5 cents a bottle.
The rectangle "Drink Coca Cola Delicious and refreshing" turned into circle.
In 1952 a panel window with each panel showing different seasons and
weather conditions in parts of a whole picture with Coca Cola bottle, bottle
opener, two lids and red circle calling "Drink Coca Cola". A line is added at
the bottom repeating 1918 message in different words "Thirst knows no
season". In 1954 an ad shows global reach of Coca Cola. Few heads wearing
symbols of different nationalities are featured on the globe and the red circle
inviting "Drink Coca Cola" top right at the Coca Cola bottle. Words on the
left side of the bottle explain "That extra something made Coke the most
asked-for soft drink in the world". In 1959 vending machines invaded offices
and an advertisement shows a secretary with a Coca Cola bottle on one side
of red Coca Cola vending machine and her desk and typewriter on the other
DISTRIBUTION CHANNELS
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Direct Selling
In direct selling they supply the products in shops through their own
transports. They have almost 450 vehicles to supply their products. The
company earns more profit in this type of selling.
Indirect Selling
They have their whole sellers and agencies to cover all area. Because it is
very difficult for them to cover the world by their own so they have so many
whole sellers and agencies to assure their customers for availability of its
products.
POS Material -Pos material mean point of sale material this includes posters
and stickers display in the stores and in different areas.
Billboards And Holdings - Coca cola is very much conscious about their
billboards and holdings. They have many sites in different locations for their
billboards.
PRICE
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by this these retailers and middle man push their product in the market.
And that’s why coca cola seen more in the market. And they have a good
sale in the market because according to the expert which product seen more
in the market that sells more. “Seen as sold” .They do agreements with a
shop keepers and stores to exclusive sale in that stores. These stores are
called as KEY accounts in their local language. The company also invest
heavy budget on these stores and offers them free samples
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CHAPTER-3
the local community and society at large . The coca-cola company has taken
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insure that KORE embodies the most recent and stringent manufacturing
processes.
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economic need is often greatest, is particularly critical to the long-term
success.
Reduce- The goal is to grow business but not system wide carbon emissions
from manufacturing operations. The company is working toward reducing
absolute emissions from our manufacturing operations in Annex 1
(developed) countries by 5 percent by 2015.
Refrigeration- The system owns more than 10 million coolers and vending
machines. For that reason, sustainable refrigeration is the cornerstone of
climate protection efforts.
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6.WORKPLACE-The company creates diverse, healthy and safe work
environment aligned with internationally respected human rights
principles.
10.SUPPLIERS- The suppliers and business partners are vital for the
continued success..Having a sound, stable and ethical supply base is
important for growth and the footprint we leave in local communities
around the world. The suppliers provide the system with materials,
including ingredients, packaging and machinery, as well as goods and
services. It assess suppliers according to adherence to Supplier Guiding
Principles, which emphasize the importance of responsible workplace
policies and practices that comply, at a minimum, with applicable
environmental laws and with local labour laws and regulations. In addition,
it expects suppliers to comply with Code of Business Conduct for Suppliers,
which describes standards in the areas of conflicts of interest, business and
financial records, bribery and information protection.
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of Human Rights and the International Labour Organization's Declaration
on Fundamental Principles and Rights at Work. The Policy provides a
consistent approach to workplace rights worldwide and embeds it as an
integral part of culture, strategy and day-to-day operations. it conduct
independent third party assessments of operations to validate compliance
to Workplace Rights .
CHAPTER-4
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COCA-COLA AND C.R.M.
It is continually looking for ways to reduce costs, improve sales and profits,
and deliver better-quality, more diverse products to consumers. It work to
create additional value for customers by anticipating their demands and
interests and to proactively deliver viable solutions for businesses.
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collaboration and to accelerate innovation in order to provide superior
beverage selections to every consumer on every shopping trip.
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CHAPTER-5
PERFORMANCE OF COCA-COLA
Market share
PepsiCo Coca-cola
34.2% 60.8%
SOURCE: http://www.scribd.com/doc/4075259/Coca-Cola-Report
Year-2006
For the year 2011 the market share of coca-cola was between 40-43% while the market share
of pepsi was 30%.
The food and drinks giant plans to spend 305 more to pitch its beverages on
U.S. television in 2011 than in recent years- with much of the money aimed
at propping up the sagging Pepsi-Cola brand after diet Coke overtook it last
year for the first time to become the No. 2 soda in the U.S. behind regular
coke.
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1903 over 300 million
1907 over 1 billion
1910 over 2 billion
1912 over 3 billion
1914 over 4 billion
1915 over 5 billion
1919 over 10 billion
1936 over 100 billion
1944 over 100 billion
1952 over 200 billion
1958 over 300 billion
1962 over 400 billion
1965 over 500 billion
1973 over 1 trillion
1982 over 2 trillion
1993 over 4 trillion
1996 over 5 trillion
2003 over 6 trillion
The sales for the year ending December 2010 are $35119 million.
Customer satisfaction
The Coca-cola company may be the number one soft-drink maker, but its
customer satisfaction has fizzled to a five year low, according to the third
quarter report of the American Customer Satisfaction index (ACSI) released
in the year 2006.The ACSI, produced by the University of Michigan’s ross
School of Business, in partnership with the American society for quality and
the CFI Group, is supported by ForeSee results, an online satisfaction
measurement firm. The ACSI segments manufacturing/nondurable goods
into eight categories: soft drinks, athletic shoes, apparel, food
manufacturing, personal care and cleaning products, pet food, breweries,
and cigarettes. Customer nondurables are examined every third quarter by
the ACSI.
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Schweppes (up from Q3 2005’s 83 to Q3 2006’s 86) trumped the beverage
maker to tie for the highest soft drink satisfaction score. The ACSI gap
between Coca-cola and Pepsi has never been greater, according to Claes
Fornell, a professor and head of ACSI at the University of Michigan.
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CHAPTER-6
CONCLUSION
The Coca Cola Company uses many different marketing methods in its quest
to get their product in front of as many people as possible in every country
of the world. The central marketing unit collaborates with local units to
make sure that slogans sound good and are appropriate in that particular
language and culture. Recently, Coca Cola is seeking association not only
with good times and warm feelings but also with universal desire to be
happy as their last "Open Happiness" music video series show. To relate to
good times, warm feeling, pursuit of life and happiness, Coca Cola
continuously markets at happy holidays, events, and places. The company
has very strong marketing department with market research laboratory and
keeps abreast of scientific developments in consumer psychology and
behaviour research to "see that it's the great taste of Coke that is still
putting a smile on faces around the world, as it has done for nearly 125
years" and will continue to do so for years to come. Until now, the company
has responded to all messages from the market and I believe they will
continue in the same fashion.
Thus Coca-cola versified its activities and diversities which all helped it to
is the season of spreading good cheer and the perfect time to look ahead with
by a positive outlook. Our latest campaign captures the spirit of hope and
optimism, further establishing the brand’s philosophy urging people to
believe in a happier tomorrow”.
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BIBLIOGRAPHY
BOOKS
MAGAZINES
1. Business Today
2. Outlook
3. Insight
4. Advance Edge
NEWSPAPERS
WEBSITES
www.google.com
www.cokeiindia.com
www.coca-colaindia.com
www.oligopolywatch.com
www.superbrand.com
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