MARKETING AUDIT ON COCA-

COLA

FM February 2022 B  

Tables

1. Introduction 2

2. A situational analysis including organisational goals, context and

competitor activity 3-5

3. A review of the internal strengths and weaknesses of the

organisation 6-7

4. The establishment of marketing objectives that support the

organisational goals set out in section 1 8-9

5. The development of outline marketing activities (4Ps or 7Ps)

including a planning timetable to support the objectives set in

section 3 10-12

6. A conclusion outlining the benefits to the organisation that will

result from the implementation of the marketing activity contained in

the audit 13-14

7. List of References 15-17

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Introduction

This report is focusing the marketing audit on Coca-Cola. The audit is going to cover

the following:

1. A situational analysis including Coca-Cola goals, context and competitor

activity.

2. A review of the internal strengths and weaknesses of Coca-Cola.

3. The establishment of marketing objectives that support the organisational

goals.

4. The development of outline marketing activities.

5. A conclusion outlining the benefits to Coca-Cola that will result from the

implementation of the marketing activity.

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A situational analysis including organisational goals,

context and competitor activity

The Coca-Cola Company is the world's largest beverage company focusing in

nonalcoholic beverages. The firm was founded in 1886. When John Pemberton

blended aromatic caramel coloured syrup that would eventually be known as Coca-

Cola, the Coca-Cola concept was created. That happened in Atlanta. However, the

firm has grown over time. The corporation currently has a presence in over 200

countries, refreshing people with its well-known brands. The corporation was

founded in Delaware and has its headquarters in Atlanta, Georgia (The Coca-Cola

Company, 2022).

Purpose:

 Refresh the world.

 Make a difference.

Coca-Cola, like other multinational corporations, seeks to maximise profits while

preserving long-term sustainable development in the beverage business.

Vision:

 Loved brands, done sustainably, for a better shared future.

The goal is to establish popular brands and beverage alternatives that will rejuvenate

people's bodies and minds. And it must be accomplished in ways that contribute to a

sustainable industry and a greater shared vision that benefits people, communities,

and the environment.

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Coca-Cola and PepsiCo are direct or near competitors in the soft drink business,

with Coca-Cola controlling 13.1 percent of the liquid refreshment drinks (LRB)

market and PepsiCo controlling 5.8 percent of the LRB market (Statista Research

Department, 2022).

Because the products are so close in terms of market share, good marketing efforts

may have a significant influence on each other's market share. Since the demand for

carbonated drinks is steadily decreasing, PepsiCo's diversification is different from

that of Coca- Cola's. This allows PepsiCo to function better during these challenging

times. As a fierce competitor in the soft drink market, PepsiCo has acquired Pepsi

Bottling Group and PepsiAmericas to better respond to shifting customer

preferences away from carbonated beverages and toward juices and water.

Coca-Cola and Pepsi have different competitive tactics. Pepsi concentrates on

product promotion by paying celebrities to endorse their goods. Madonna, Beyoncé,

and Britney Spears were among the celebrities that participated in Pepsi's

commercial campaign (Otuki, 2013).

As a result of extensive market research, Coca-Cola is able to better connect with its

customers. Coke's "Happiness Machines," which gave customers unexpected gifts

like flowers and pizza in addition to their soda, were among of the most audacious

strategies used (Allen, 2015). Coca-Cola is also working to distinguish its products

by reducing the amount of sugar and calories they contain.

Diet Coke, debuted in 2010, soon became a major player in the diet soft drink

industry (Koschmann & Sheth, 2016). As a consequence, a comparable product

from Pepsi failed miserably in its 1993 marketing campaign. While Pepsi's sales

were just 0.9 billion bottles in 2010, Coca-approach Cola's to Cola's allowed it to

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triple Pepsi's sales in 2010. (Koschmann & Sheth, 2016). Pepsi lost market share to

Coca-Cola as a result of this.

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A review of the internal strengths and weaknesses of the

organisation

Coca-Cola Internal Strengths

 Strong brand identity - In addition to its well-known name, Coca-Cola has a

very unique brand identity. It has the most popular soft drinks in history.

 High brand valuation - Coca-Cola is a household name with a very high brand

value. According to the annual Interbrand survey, Coca-Cola will have a brand

value of $57 billion in 2021, making it the world's sixth most valuable brand.

Another notable company on the list is Amazon.com Inc., followed by

Microsoft, Google, and Samsung Electronics (Interbrand, 2021).

 Extended global reach – Over 200 nations and 1.9 billion people are served

each day by the company's goods. It has introduced around 500 new products

throughout the globe. Coca-Cola beverage flavours like Coco Cola Vanilla

and Cherry Coca-Cola are among them. People from various walks of life and

demographics may identify with the company's well-known brands.

 Greatest brand association and customer loyalty – Coca-Cola is considered

as one of the most emotionally charged brands in the United States, and it

has a strong following of dedicated customers. It's no surprise that this well-

known brand has such a devoted following; it's the epitome of "happy."

Customers may be able to tell you right away what their favourite flavour is.

They're having a hard time finding replacements. Other beverage brands,

such as Pepsi, Coca-Cola, and Fanta, have a smaller following.

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Coca-Cola Internal Weaknesses

 Product diversification – Coca-Cola only sells a few different kinds of drinks.

Lays and Kurkure are some of the snacks Pepsi has introduced, but Coca-

Cola hasn't. Coca-Cola can't compete with Pepsi because of this.

 Health concerns – Sugar consumption is mostly fueled by carbonated drinks.

Obesity and diabetes are the direct results. In terms of carbonated drinks,

Coca-Cola is the world's top manufacturer. The drinking of these soft drinks

has been strongly discouraged by a number of health professionals. It's a hot

button issue in the company. For its part, Coca-Cola hasn't offered a healthy

alternative or solution to this issue.

 Overdependence on Third-Party Technology Providers – Coca-operations

Cola's relies heavily on the technological know-how of third parties. For the

next five years, Microsoft will be delivering business software for the company

(Reuters Staff, 2020).

 Environmentally Destructive Packaging – For its use of plastic bottles, Coca-

Cola was included in a 2020 TearFund assessment as one of four large

consumer firms that contribute considerably to global warming and CO2

emissions (Win, 2020).

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The establishment of marketing objectives that support the

organisational goals set out in section 1

Below are the recent marketing objectives of Coca-Cola campaigns:

Figure 1: Recent Marketing Objectives of Coca-Cola Campaigns (Prafull, 2018)

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CEO of Coca-Cola, James Quincey (2020) said:

“Refresh the world’ does not only mean to physically quench thirst, but also to

refresh one’s spirit, and refresh communities brought together by joy,

optimism and happiness.”

The images, words, and sounds utilised in the Coca-Cola marketing campaign

materials were devised by marketing professionals to achieve the same goal.

1. Coca-Cola helps to best satisfy the thirst

Coke tries to show that it is the best method to quench a thirst. When it comes to

Coca-Cola, there is no natural urge to drink water; instead, Coca-Cola has created

an artificial "thirst" for their product.

2. Drinking Coca-Cola is stylish

Kotler & Keller (2006) stated:

“The most effective marketing messages are presented by companies as a

solution to a problem potential customers experience.”

In whatever they do, people are compelled to strive for excellence. In certain ways,

this may be both a problem and a need. For some individuals, being stylish and

trendy and connecting with well-known, famous people is the best way to fulfil their

urge to be great. In order to capitalise on this fact, Coca-Cola hires well-known

individuals who are seen as successful to publicly support its products. Because of

this, individuals purchase these products to fulfil their need to seem well and

presentable.

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The development of outline marketing activities (4Ps or

7Ps) including a planning timetable to support the

objectives set in section 3

Product Strategy

More than 3900 beverage alternatives are available to Coca-Cola consumers via the

company's various product lines of about 500 brands. Their brand has a market

value of almost $21 billion. Coca-Cola Zero, Fanta, Coca-Cola, Minute Maid, Diet

Coke, Sprite, Coca-Cola Life, and Powerade Zero are some of the most well-known

products. Ciel, Fanta, and Glaceau Vitaminwater are also popular. It also offers

juices, sports drinks, energy drinks, and tea and coffee in addition to soft drinks.

High- and low-calorie options are offered for the majority of its products Coca-drinks

Cola's are available in millilitre and litre containers, as well as plastic and glass

bottles and cans, among other packaging options. They have been able to dominate

the market because of their technical abilities to provide novel forms and packaging

for their goods, allowing them to stand out from the competition. Coke Zero and

Sprite Zero, as well as a spice-flavoured drink known as jeera pani in India, have all

been introduced since the bottling plant opened.

Price Strategy

A price discrimination strategy is part of Coca-marketing Cola's mix. This means that

there are varied pricing for different products in the same category. An oligopoly

exists in the beverage business because there are just a few suppliers and a large

number of consumers. Pepsi and Coca-Cola are the country's two most powerful

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brands. As a consequence, items from both Coca-Cola and Pepsi-Cola are priced

identically.

There are price-sensitive consumers in developing nations like India who would

move to Pepsi if Coca-goods Cola's are priced more than Pepsi's in a given

category. As a result, both parties have agreed to maintain price parity within each

market group. By merging products, Coca-Cola also delivers substantial discounts.

Place and Distribution Strategy

As a consequence of its long history of operations and presence in more than 200

countries, Coca-Cola has built up an extensive global distribution network. Their

extensive distribution network serves as a testament to their strategic choice of site.

Coca-Cola uses its proprietary recipe to manufacture and distribute the beverage to

bottlers all over the globe.

In addition to producing and providing concentrates, beverage bases, and syrups to

bottling plants, the company owns and controls the brands. After that, the final

branded drinks are packed, merchandised, and sent to their vending partners, who

sell them to the general public (Maurya et al, 2016).

Almost every retail shop and supermarket carries its products. 2.5 million Coca-Cola

outlets are available in India. Many hotels and restaurants throughout the globe carry

their products.

Promotion Strategy

Coca-Cola is the gold standard when it comes to advertising and branding. Coca-

marketing The focus of Coca-advertising Cola's strategy is on a wide range of media,

including television, internet, print, sponsorships, and so on. This includes American

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Idol, BET, NASCAR and the NBA as well as the Olympic Games and the FIFA World

Cup.

Additionally, Coca-Cola transmits advertisements in a variety of different languages

throughout the globe. Coke's "Taste the Feeling" campaign, which debuted in India

in March 2016, aims to remind people of the delight and happiness that they get from

drinking Coke. Coca-Cola is now a widely available, convenient beverage for the

general public, at all hours of the day and night (Mayureshnikam & Patil, 2018).

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A conclusion outlining the benefits to the organisation that

will result from the implementation of the marketing

activity contained in the audit

Creating Long Term Loyalty Relationship

To put it another way, Coca-philosophy Cola's is that they exist only to serve their

consumers. To meet the varying needs of their global customer base, they provide

over 400 different beverage brands. Regardless of age, gender, or ethnicity, they go

above and beyond to meet the needs of their whole target audience. As a result,

their customers continue to put their faith in them. To this day, consumers throughout

the globe continue to show their allegiance to the Coca-Cola brand, despite its

storied 125-year existence. Increased awareness of healthy drinking and eating

habits, as well as the economic slump, helped the brand gain in popularity.

Building Customer-Brand Based Equity

When compared to a generic alternative, brand equity is a value quality that a brand

develops from a product with a recognised name. Making a product simply

identifiable, memorable, and advanced in reliability and quality may help build brand

equity. Coca-Cola is frequently ranked as the top beverage brand in the world, with a

brand value of $57.3 billion in 2018. Nonetheless, Coca-Cola represents more than

simply its products—it also represents happy memories and a long and illustrious

past. The Coca-Cola brand, which is also known for its unique marketing campaigns,

has had a global influence on its customers' involvement with the brand. Coca-Cola

is becoming more of an emotion to its customers than a commodity, and this is due

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to their marketing approach of relating their product to real-life stories. As a

consequence, when consumers think of beverages, Coca-Cola comes to mind first.

Likebility of Coca-Cola

Likability is the ability to persuade customers through brand characteristics. Coca-

Cola is the most popular beverage among customers for the following reasons:

 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

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References

The Coca-Cola Company. (2022) Coca-Cola History. Available from:

https://www.coca-colacompany.com/company/history [Accessed N.D.].

Statista Research Department. (2022) Liquid Refreshment Beverage (LRB) Brands -

statistics & facts. Available from: https://www.statista.com/topics/2071/liquid-

refreshment-beverage-lrb-brands-statistics-and-facts/#dossierKeyfigures [Accessed

12 January 2022].

Otuki, N. (April 14, 2013). Coca-Cola mulls price cut in market battle with

Pepsi. Business Daily. Available from:

https://www.businessdailyafrica.com/bd/corporate/companies/coca-cola-mulls-price-

cut-in-market-battle-with-pepsi-2029618 [Accessed 14 April 2013].

Allen, F. (2015). Secret formula: The inside story of how Coca-Cola became the

best-known brand in the world. Reprint Ed. New York: Open Road Media.

Koschmann, A. & Sheth, J N. (2016) Do Brands Compete or Coexist? Evidence from

the Cola Wars. Available from: https://ssrn.com/abstract=2776376 [Accessed from 5

May, 2016].

Interbrand. (2021) Best Global Brands 2021. Available from:

https://www.rankingthebrands.com/PDF/Interbrand%20Best%20Global%20Brands

%202021.pdf [Accessed N.D.].

Reuters Staff. (2020) Microsoft wins five-year deal with Coca-Cola to supply

business software. Available from: https://www.reuters.com/article/us-microsoft-

coke/microsoft-wins-five-year-deal-with-coca-cola-to-supply-business-software-

idUSKCN2291WR [Accessed 27 April 2020].

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Win, T L. (2020) Bottling it? Plastic pollution from Coca-Cola, PepsiCo fuels

emissions. Available from: https://www.reuters.com/article/us-climate-change-plastic-

pollution/bottling-it-plastic-pollution-from-coca-cola-pepsico-fuels-emissions-

idUSKBN21I1TI [Accessed 31 March 2020].

Prafull, P. (2018) Coca-Cola's Marketing Communication Strategy: A Critical

Analysis. Available from: https://www.linkedin.com/pulse/coca-colas-marketing-

communication-strategy-critical-analysis-pragya#:~:text=Objectives%20of%20Coca

%2DCola%20Campaigns&text=Creating%20awareness%20of%20the

%20company,trial%20among%20potential%20new%20customers [Accessed 11

November 2018].

Journey Staff. (2020) With an eye towards the future, The Coca-Cola Company

launches its renewed purpose. Available from:

https://en.cocacolavietnam.com/news/with-an-eye-towards-the-future-the-coca-cola-

company-launches-its-renewed-purpose [Accessed 24 February 2020].

Kotler, K. & Keller, KL. Marketing Management. 12 Ed. New Jersey: Pearson

Prentice Hall.

Maurya, H., Makda, B. & Paiman. A STUDY ON

DEVELOPMENT OF COCA COLA’S PLACE STRATEGY. International Journal in

Management and Social Science 4(2): 5-6. Available from:

https://www.academia.edu/38596690/A_STUDY_ON_DEVELOPMENT_OF_COCA_

COLA_S_PLACE_STRATEGY [Accessed February 2016].

Mayureshnikam. & Patil VV. (2018) Marketing Strategy Of Coca Cola. IOSR Journal

of Business and Management 1(12): 77-85. Available from:

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https://www.iosrjournals.org/iosr-jbm/papers/Conf.ADMIFMS1808-2018/Volume-

1/12.%2077-85.pdf

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