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Coca-Cola - COCA COLA MARKETING SDTRATEGY

Principles of marketing (BRAC University)

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Term Paper On

Marketing Plan of The Coca-Cola Company

By

Group 3
Nazmus Sakib 2123033-050
Shanjida Priya 2123033-058
Niaz Morshed Opu 2123033-070
Muaz Al Jabal 2123033-032
Nahinur Rahman 2123033-018

Course No: MKT8401

Course Name: Marketing Management
Master of Business Administration (Professional) - 28th Batch

Submitted To
Retd. Major Khondaker Saifuzzaman
Faculty of Business Studies

Date of Submission: 9th November 2022

BANGLADESH UNIVERSITY OF PROFESSIONALS

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Marketing Plan of The Coca-Cola Company

Muaz Al Jabal, Nahinur Rahman, Nazmus Sakib, Niaz Morshed, Shanjida Priya

Faculty of Business Studies, Bangladesh University of Professionals, Dhaka, Bangladesh

Abstract
Marketing planning is a logical sequence and a series of activities leading to setting marketing objectives
and formulating plans to achieve them. The marketing plan is linked to the corporate plan of the business
in which the company operates, indicates financial objectives that have to be accomplished, specifies how
revenues are to be generated through various marketing programs, and assesses the various costs that will
be incurred in achieving these objectives. A marketing audit is a precondition to establishing a marketing
plan. A marketing audit amounts to an evaluation and assessment of all factors which affect the firm’s
marketing performance. The factors can be internal to the firm or can be part of the external environment.
The internal audit comprises a detailed analysis by product/service of the market share and profitability of
the various lines. Strategies relating to marketing mix elements are reviewed and studied together making
use of marketing research data. The external audit commences with a review of the general economy and
makes an assessment of the prospects for the firm’s markets. Many factors have to be considered.
Economic, fiscal, social, business, legal, and technological developments all have a substantial impact on
the business. In addition, market segments, channels, products, end uses, needs, tastes, attitudes, stocks,
and profits also have to be taken into account.

This report aims to highlight the Marketing Plan of the Coca-Cola Company. It discusses the current
strategic marketing strategies that are being planned and implemented by the company for attracting and
retaining customers. It provides a detailed analysis of the company based on the market audit. The first part
discusses Coca-Cola’s market sensing (segmentation, targeting, positioning), and the second part discusses
Coca-Cola’s marketing concept. Afterward, Coca-Cola’s market global market tapping strategy and
growing competition are analyzed. Finally, Coca-Cola’s marketing plan and operation are discussed in the
context of Bangladesh.

Keywords: Marketing Plan, Coca-Cola, Marketing Strategy, Marketing Mix

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Contents

Abstract........................................................................................................................................................ 1
1. Objective .................................................................................................................................................. 3
2. Introduction ............................................................................................................................................. 3
2.1 Marketing Plan.................................................................................................................................. 3
2.2 The Coca-Cola Company ................................................................................................................. 3
3. Situation Analysis.................................................................................................................................... 4
3.1 Market Needs .................................................................................................................................... 4
3.2 Product Offering ............................................................................................................................... 5
3.3 Market Trends .................................................................................................................................. 5
3.4 Market Growth ................................................................................................................................. 6
3.6 SWOT Analysis ................................................................................................................................. 6
3.7 PESTEL Analysis .............................................................................................................................. 7
4. Market Sensing........................................................................................................................................ 8
4.1 Segmentation ..................................................................................................................................... 9
4.2 Targeting.......................................................................................................................................... 10
4.3 Positioning ....................................................................................................................................... 10
5. Marketing Concept ............................................................................................................................... 11
5.1 Marketing Mix ................................................................................................................................ 11
5.2 Globalization ................................................................................................................................... 13
5.3 Competition ..................................................................................................................................... 14
6. Coca-Cola in Bangladesh ..................................................................................................................... 15
6.1 The Coca-Cola System in Bangladesh ........................................................................................... 15
6.2 Market Share & Product Offerings .............................................................................................. 15
6.3 Major Rivals/Competitors/Substitutes .......................................................................................... 15
6.4 CSR Programs in Bangladesh........................................................................................................ 16
7. Conclusion ............................................................................................................................................. 17
References .................................................................................................................................................. 18

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1. Objective
The objectives of this term paper are:

• Understanding how to do market analysis

• Learning how to meet the preconditions to prepare a marketing plan
• Analyzing Coca-Cola’s marketing sensing strategy
• Understanding Coca-Cola’s marketing concept

2. Introduction
2.1 Marketing Plan
After employee salaries, marketing is typically the biggest expense for most businesses. A business owner
or marketer has to make sure the marketing dollars are being spent in the most productive way possible, so
that the return on marketing investment is substantial.

A lot of organizations follow marketing tactics without having a proper plan and market analysis. A
marketing plan is a report that outlines the marketing strategy for company’s products or services, which
could be applicable for the coming year, quarter or month. With a well-designed marketing plan, one can
design more effective promotions and impactful campaigns, reach target customers with targeted
advertising, and track business success with analytics. Without one, one might as well throw his/her
marketing budget down a well and hope for the best.

2.2 The Coca-Cola Company

The Coca-Cola Company is an American multinational beverage corporation founded in 1892, best known
as the producer of Coca-Cola. The Coca-Cola Company also manufactures, sells, and markets other non-
alcoholic beverage concentrates and syrups, and alcoholic beverages.

Coca-Cola is ranked 93 in Fortune 500 ranking, and is said to have one of the best marketing strategy. They
are ranked 1 in beverage sector for last few decades. Introduced more than 136 years back, Coca-Cola is
still the most sipped soda worldwide, with a staggering 1.9 billion servings daily spanning 200+ countries.
The brand has always been enthusiastic about engaging customers more effectively. The robust Coca-Cola
Marketing Strategy has been able to invigorate the masses over the years, ranking as the world's largest
manufacturer and licensor of 3,500 nonalcoholic beverages.

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3. Situation Analysis
Coca-Cola is today’s one of the biggest corporations that offers different refreshment in form of a soft-
drink. But aside from their historical success, the Coca Cola Company is still a typical business that is
affected and at the same time affecting the different type of communities.

Coca-Cola has sold more than one billion servings every day. More than 10,450 beverages are consumed
every second. The company achieved earnings of $4,347,000,000 in 2003. It is present on all seven
continents and is recognized by 94% of the world population. Coca-Cola grew from its humble roots as a
home-brewed Georgia-based patent medicine to be the international soft drink powerhouse that it is today.

3.1 Market Needs

Coca-Cola Life is only the fourth drink to be launched in the 128-year history of Coca-Cola. It is made with
a blend of sugar and Stevie-leaf extract. It contains “35 per cent less sugar and is a 35 per cent kilo-joule
reduced formulation compared to normal coke. Coca-Cola Life has been launched in Australia for one year.
The product, which has also been successfully launched in a number of other countries including Argentina,
Chile, Mexico as well as US.

Consumers’ Expectation and New Choice

One of the main reasons for the company to develop Coca-Cola Life is to satisfy consumer’s demand for
greater choice. The majority of consumer in the soft drink market is showing increasing awareness in
healthy lifestyles (Andrews, 2015). Therefore, the Life Coke is the company’s positive step in making
commitment to offer consumer lower kilojoule options

Understanding and Satisfying Consumers’ Needs

For Coca-Cola, understanding and satisfying consumers’ needs are the key factors that lead to success.
Launching a new coke in such a challenging market can not only concerns about consumers’ physiological
needs since this is the most basic needs that most of Coca-Cola’s competitors can achieved it. What Coca-
Cola need to do is to recognize consumers’ higher levels of needs. From the successful launching of Coca-
Cola Life in various countries, we can see that this new product certainly brings more to their consumers.

As for consumers’ safety needs, the Coke Life lower down the percentage of sugar. This greatest change
largely distinguished itself from other competitors which contain higher percentage of sugar. To some
extent, this means that Coke Life is safer and healthier than other beverages. Health and well-being is one
of the safety needs. Therefore, we can say that Coke Life can satisfy consumer’s safety needs.

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Delightful Design Convey Brand Identity

Consumers’ sensation and perception are the two extremely important elements that the brand need to pay
attention to. It is very useful for a company to convey information by using senses. Color is one of the
factors that will attract consumers’ notice. For Coke Life, it distinguished by its green label and is marketed
as a “natural” and “green” low-calorie beverage in a fully recyclable bottle that is made with 30 percent
plant material. It shed its iconic red color into a green one. The whole design conveys the information of
“this is a healthier beverage” to consumer in order to change the way people perceive the brand and possibly
connect Coke Life with a nature and healthier alternatives.

3.2 Product Offering

The Coca-Cola Company has, an occasion, introduce other cola drinks under the Coke brand name. The
most common of these is Diet Coke, with others including Caffeine-Free Coca-Cola, Coca-Cola Cherry,
Coca-Cola Zero, and special editions with lemon, lime, or coffee.

The Coca-Cola Company sells the products form of soft drinks include beverage concentrates and syrups,
with major beverage products. Business has more than 300 beverage brands all over the world with a major
to be Coke, Fanta, Lift, Sprite, Fruitopia 100% Fruit Juice, and Powerade. The Coca-Cola Company
Beverages its packages into plastic bottles of sizes 2 liters, 1.25 liters, 600ml and 300ml. these are also
available in aluminum cans of 375ml. Coca-Cola is the most well-known trademark, recognized by 94
percent of the world population. The business was very successful and has an excellent reputation. The
price of Coca-Cola varies according to size, place, and packaging. Maybe if Coca-Cola sells in the school
will have a different price if Coca-Cola sells in the bazaar or market, or if we compare the price of Coca-
Cola in Indonesia will be different in America.

3.3 Market Trends

Coca-Cola's healthy top line this quarter can be traced to a number of factors, but three trends are
particularly worthy of shareholders' attention.

First, the consumer-staples titan continues to enjoy a resurgence in the sales of trademark Coke beverages,
especially low-sugar variants of its most popular sodas. In the vast North American market, Coca-Cola
Zero Sugar expanded volume by double digits over the last three months. Globally, trademark Coca-Cola
beverages saw volume growth in every major geographic region this quarter.

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Second, packaging architecture remains a long-term tailwind for the organization. In discussing larger
efforts to reduce the calories customers consume, Coca-Cola observed on Thursday that it's been able to
increase the sale of sparkling drinks even as beverage calorie consumption has declined. The company's
shift toward 7.5-oz. mini-cans and other smaller packaging (which carries higher unit prices) has allowed
consumers to treat soda as an acceptable, indulgent refreshment while delivering higher revenue and
profitability to Coca-Cola.

Finally, the breadth of Coca-Cola's growth this quarter among both developed and developing markets,
from the Asia Pacific region to EMEA (Europe, Middle East, and Africa), indicates that Coca-Cola's "lift
and shift" model of transporting brands across borders is beginning to show tangible results. For example,
the company cited strength in Topo Chico mineral water in the U.S. (which it's recently expanded from a
bottling base in Mexico) and the U.S.-developed Fuze Tea's success in Western Europe as factors in the
quarter's revenue growth. Coca-Cola has compressed its time frame for scaling successful local brands to
global audiences, and shareholders can expect much more of this activity in the coming quarters.

3.4 Market Growth

The growth statistics of Coca-Cola are as follows,

• Coca-Cola revenue for the quarter ending September 30, 2022 was $11.063B, a 10.17% increase
year-over-year.
• Coca-Cola revenue for the twelve months ending September 30, 2022 was $42.343B, a 12.01%
increase year-over-year.
• Coca-Cola annual revenue for 2021 was $38.655B, a 17.09% increase from 2020.
• Coca-Cola annual revenue for 2020 was $33.014B, a 11.41% decline from 2019.
• Coca-Cola annual revenue for 2019 was $37.266B, a 8.65% increase from 2018.

3.6 SWOT Analysis

The following SWOT analysis captures the key strengths and weaknesses within the company and describes
the opportunities and threats facing Coca-Cola.

Strengths
• Strong brand identity
• High brand valuation
• Extended global reach

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• Greatest brand association and customer loyalty

• Dominant market share
• Unparalleled distribution system
• Acquisitions
• Repositioning portfolio

Weaknesses
• Water Management
• Core Business Model and Health Issues

Opportunities
• New products
• Acquisitions
• Advertisement of Unpopular Products

Threats
• Fierce Competition
• Government Regulations
• Taxation
• Health-Conscious Consumers

3.7 PESTEL Analysis

Before entering into a market, and to sustain in a market a PESTLE analysis is much beneficial. Coca-
Cola’s PESTLE analysis is s below:

Political factors
Coca Cola products are at the mercy of the FDA. They must meet regulations, given by the government, to
put products on store shelves. Changes in established laws may prevent Coca Cola from distributing drinks.
Accounting, taxes, internal marketings, and changes in labor laws can affect Coca Cola in this way.

Economic factors
Coca Cola products are distributed to hundreds of countries. These countries have different customs,
cultures, tastes, and desires. Coca Cola has changed and updated how it handles its products by creating
new flavors to accommodate these customers. They have $80+ billion worth of equity. The majority of that
comes from the beverage industry. And their income (roughly 70%) is from countries outside the United
States. But people are looking for healthy alternative drinks. Coca Cola is making minimal efforts to move
in that direction.

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Social factors
Coca Cola distributes the majority of its products in cultured countries. And they meet the demands of these
customers. In Japan, they created 30 alternative flavors to appeal to Japanese consumers. In China, they are
making similar efforts. But in America, people focus on their health. They’re swapping sugary drinks for
waters and teas. Because these drinks are better for their health. Coca Cola needs to respond to these needs
by creating a product the healthy American public will respond to.

Technological factors
Machinery have helped Coca Cola manufacture products in better and higher quantities. Coca Cola has
factories in Britain with top of the name machinery to ensure fast delivery times and quality product
development. Coca Cola has used social media technology to connect with audiences. When they launched
their name campaign — putting real names on their bottles — customers lined up to take photos of bottles
with their name on it. These photos trended on social media sites like Facebook, providing social proof and
encouraging Coca Cola sales.

Legal factors
Coca Cola retains all rights related to their business, including past and future products developed with a
patented process.

Environmental factors
Coca Cola is affected by water accessibility. Water is necessary for soft drink development. But should
something happen, like climate change, the company may be under fire. This affects their competitor, Pepsi,
as well. But since Coca Cola’s products are primarily soft drinks, with a water accessibility issue, the
company will suffer losses. Coca-Cola has to adhere to environmental laws as they manufacture its
products. If anything is amiss, it can affect how they distribute products — or stop production completely.

Additionally, they can take advantage of humid climates that would enjoy Coca-Cola drinks as a means to
cool down. This works well in developing countries where Coca-Cola would have very little “premium”
competition.

4. Market Sensing
The profile for the typical Pegasus customer consists of the following geographic, demographic, and
behavioral factors:

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4.1 Segmentation
Geographics
The Coca-Cola target audience is located all over the world, and the typical Coke consumers may live in
urban centers or rural settings.

Coca-Cola might have originated from the United States, but it has expanded its brand to various countries
across the globe over the years. The company's geographic segmentation aims to drive the market into
different geographical units, including cities, regions, and neighborhoods. While Coca-Cola might be
focusing on urban and suburban areas, it also ensures a countrywide product distribution network. This is
in the realization that as the company expands, there is a demand from those in rural areas.

Interestingly, EMEA leads in unit sales of Coca-Cola products, with 28% share in Europe, the Middle East
and Africa, compared to 20% unit sales volume from the US. This is despite the fact that North America
accounted for the largest revenue distribution share of the Coca-Cola company in 2021 (34.1% of all
worldwide revenue).

Demographics
Coca-Cola demographics segmentation includes a broad age range of younger to mid-life consumers, from
10 to 40 years old. This demographic covers kids and teens, singles, younger adults still living at home and
those who live alone, newly marrieds, married couples without kids, with young children or with kids in
their teen years. The employment profile of the Coke audience includes students, employees and
professionals alike.

Psychographic
A Coca-Cola customer analysis from a psychographic standpoint shows a wide socio-economic breakdown,
from working class to middle and upper class. This target audience tends to fall into the categories of
‘aspirer’, ‘explorer’ or ‘succeeder’.

The Coke targeting approach also has a strong focus on what’s known as the “conscious progressive”
personality type – consumers who value independence, learning, personal growth and being true to oneself,
and who seek out those traits and experiences in the brands they consume.

In psychographic segmentation, Coca Cola buyers are divided into different groups on the basis of lifestyle
or personality or values. People within the same demographic group can exhibit very different
psychographic profiles, for that reason Coca Cola Company designed and made product which are suitable
for their personality.

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Behavior Factors
The target market enjoys Coke for several reasons, including its good taste and refreshing feel, spending
time with people, and as part of a general lifestyle habit. The target audience of Coca-Cola consumes the
product regularly, including ‘soft’ loyal users who enjoy Coke from time to time, and ‘hard’ loyal users,
who drink Coke on a more routine basis. The Coke target market can be broadly defined as having
easygoing, ambitious, and determined personalities.

4.2 Targeting
Coca-Cola's targeting strategy is broader, not only because of its global presence in the market but also with
the several products that they provide. There is also the need to satisfy various customers, ranging from
average to health-conscious ones. The primary target of Coca-Cola is younger customers within the age
bracket of 10-25 and a secondary market composed of people aged 25-40.

The company targets the market that desires an intense flavor with their regular cola drinks in terms of taste.
Meanwhile, diet cola drinks and their variants target those customers that are health conscious. Coca-Cola
company has also expanded its product to non-cola beverages to target those not fond of drinking its regular
cola drinks. A Coca-Cola product such as Sprite is specifically designed to target teens and college students,
while others target the young working group.

4.3 Positioning
With Coca-Cola, it positions its products as thirst-quenching and refreshing. The products they offer are
said to bring joy to its target market. The drinks and other products from Coca-Cola are also associated with
having a great time with family and friends while enjoying daily life. Additionally, the company also
markets its products consistently and of premium quality.

For those looking for high-quality drinks, one of the names that will surely come into their minds will be
Coca-Cola. The company has an extensive selection of refreshments; each offers a positive experience for
consumers. In contrast to other beverage brands, Coca-Cola brands itself as a product that provides
happiness and positive in customers' lives. Ultimately, the company's primary focus is to cater to the needs
and preferences of its global customers.

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5. Marketing Concept
Coca-Cola uniquely designs its marketing strategy, which gives a boost and gives broad global recognition.
Like many other companies, Coca-Cola bases its marketing strategy on 4Ps: product, promotion, price, and
place. Coca-cola follows the marketing mix strategy. But there are other reasons too behind the success of
Coca-Cola.

5.1 Marketing Mix

Product
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. Coca-Cola sells approximately 1.9 billion servings a day globally. Coca-Cola Classic, Coca-Cola Zero
Sugar, Fanta, Fanta Zero, Sprite, Sprite Zero, Diet Coke, Dr Pepper, Dr Pepper Zero, Powerade, Powerade
Zero, Schweppes Water, Schweppes Mixers, Schweppes Lemonade, and Oasis are some of its popular
products. The Coca-Cola Company is one of the most valuable brands in the world. Its products come in
different sizes and shapes which help customers choose the right amount of drink.

Over the years, the world has witnessed a growing awareness of the impact of a variety of drinks on public
health. Unsurprisingly, the Coca-Cola Company’s response to the public concerns has been prompt. For
example, some of the products are now caffeine-free. It also has a reduced or no-sugar, no-calorie option
for almost all of its products.

BCG Matrix of Coca-Cola findings are as following

Dogs: In the BCG matrix of Coca-Cola, we can see that Coke is a potential dog product because of the
declining demand for carbonated soft drinks in favor of increasing demand for healthier options or low-
calorie drinks. If these factors keep increasing, Coke, a cash cow, can become a low market share product.

Stars: The products or business units with a high market share in a high-growth industry are the stars of the
business. In the BCG matrix of Coca-Cola, the bottled water segment is categorized as star products. Coca-
Cola offers two bottled water brands, namely Kinley and Dasani, operating in separate geographical
locations. Kinley is offered in European markets, while Dasani is popular in the US. As the market for
healthy drinks and bottled water is expanding, this segment of Coca-Cola is expected to gain a bigger
market share and a better opportunity for further investment. This is why Coca-Cola is investing in more
brands like sparkling water and flavored water.

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Cash Cows: In the BCG matrix of Coca-Cola, we can see that Coke has been the market leader in the
carbonated soft drink industry and a significant revenue generator for the company. It has a global presence
and has been an established brand for years, making Coke a cash cow for the Coca-Cola company.

Question Marks: In the BCG matrix of Coca-Cola, we can see that they are launching many new brands
and lines of products, including Diet Coke. Smartwater, Honest Tea, Sparkling Water, Minute Maid. These
products are geared towards growing healthy non-carbonated drinks and healthy lifestyles. Coca-Cola is
also investing in new products and raising awareness about these products. These products are question
marks for the company.

Pricing
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.

Place & Distribution

Anyone who travels can see that Coca-Cola is available almost everywhere, including airports and train
stations. They can even find vending machines selling the products. In fact, Coca-Cola has developed an
extensive distribution network. Its distribution strategy is very intensive as well. Therefore, customers find
its products available almost everywhere across the globe.

While Coke’s ingredients are well-known, the exact recipe of Coca-Cola is a secret. The company produces
a syrup concentrate to sell to its licensed bottlers around the world. The bottlers then add filtered water and
sweeteners with the concentrate to produce the final products in cans and bottles. The bottlers then sell,
distribute, and merchandise the finished products to retail outlets, restaurants, petrol stations, newsagents,
corner shops and many more. It is not therefore hard to imagine how Coca-Cola products are available even
in remote areas in many countries. It is worth mentioning that the shapes and sizes of the bottles are
predefined by the Coca-Cola Company, not by the bottlers.

Promotion
Coca-Cola has famous slogans like ‘Open Happiness’ and ‘Catch the Wave’ that are instantly recognisable,
even to people who do not drink soft drinks. Its advertising is all about making the company seem like a
global brand which is not an exaggeration; it is a global brand indeed. The ads use languages and images

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from around the world and are in many different languages. It is worth mentioning that Coca-Cola has even
been seen in outer space, having been placed on the International Space Station. However, some of its ads
were criticised in the past for various reasons.

The Coca-Cola Company uses a variety of promotional strategies to take its messages to the customers. It
uses different types of media for its advertising campaigns. Media e.g. TV, the Internet, newspapers, and
social media have all been used by the company. It also makes use of different sales promotion techniques.
For example, it offers special incentives and bulk-buying discounts to the distributors and the retailers. The
Coca-Cola Company has a long history of sponsoring major events, organisations and projects. It is the
sponsor of American Idol, Apple iTunes, BET Network, NASCAR, NBA, NCAA, the Olympic Games,
and others. It is the longest continuous corporate partner of the Olympic Games. Its partnership with the
Olympic Games started long ago (The Coca-Cola Company, 2022).

Coca-Cola has also been one of the longest-standing corporate partners of FIFA for a long time. The
partnership has been extended until 2030 (FIFA, 2022). The aim of the partnership is to support many
FIFA-organized events around the globe, including FIFA’s Youth-, Women’s- and Men’s Tournaments
which would surely further increase the visibility of Coca-Cola products. Coca-Cola sponsors many other
sporting events such as baseball matches as well as cultural gatherings like art shows. It also sponsors many
non-sporting events, such as children’s charities and other organizations.

5.2 Globalization
Coke, like many successful global companies, focuses on those regions with the greatest potential for
growth. Coke started branching out internationally in the 1920s but really began its global expansion in the
1980s. This is when Coke implemented its strategic plan to gain entry into untapped, previously hostile, or
undeveloped environments.

Coke started with widening its production, primarily bottling facilities, in friendly areas like Guam and
Europe. As people became more familiar with Coke's products, the company decided to expand to Australia,
Austria, Italy, Norway, and South Africa. These were the areas that had good relationships with the United
States, which meant implementing trade, transportation, and communications networks went a lot smoother.
Surprisingly, even World War II brought an increase in demand for Coke products. The federal government
worked out a deal with Coke to supply the troops with its products for no more than a nickel a beverage. In
preparation for widening its base, Coke focused on creating relationships with global stakeholders, like the
Olympics and United Nations. The Olympics, for example, took Coke's name wherever the Games went.
By the 1970s, Coke also entered into partnerships with the Special Olympics, Tour de France, NASCAR,

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and FIFA. As these sporting events broadened their fan base worldwide, Coke followed. Enlarging its
consumer base in the 1980s and 90s demanded more planning from Coke. The company brought production
operations to previously less stable areas like Russia, Germany, India, and Vietnam. This is when Coke
began looking to expand into China.

The 2000s brought about Coke's involvement in social issues. This is a different type of marketing effort
for the international team. The company provided relief related to the UN AIDS initiatives, September 11th
terrorist attacks, and earthquake relief in Haiti. Since this time, the company has entered into additional
philanthropic ventures, as well as sponsorships with the NBA and co-marketing with popular television
shows like American Idol. To market to an international audience, Coke has adapted its marketing strategy.
Coke's international marketing team continues to look for ways that Coke can diversify its production,
marketing, and outreach methods. Let's take a look at these strategies in more detail.

5.3 Competition
Coca-Cola competes for market share in the beverage industry through product innovation and
improvement, geographic expansion, and continuous investment in its distribution network.

Coca-Cola is the most prominent player in its industry, and it manages to produce a wide range of products
that appeal to various customer preferences. By targeting customers at an individual level, Coca-Cola
ensures customer satisfaction and brand loyalty. This is one of the secrets behind its vast market share in
both carbonated and non-carbonated beverage segments.

Coca-Cola’s brand and pricing strategies and advertising and marketing efforts also differentiate it from
competitors like PepsiCo and Red Bull. Coca-Cola spends more on advertising and marketing, which
enhances the visibility of its brand. It also uses bundles to sell its products at low prices while ensuring high
revenues. The company derives its competitive advantage from extensive production facilities, providing
economies of scale and strong distribution channels that cater to a large customer base across all consumer
demographics. Furthermore, Coca-Cola has a strong foothold in emerging markets, and it’s expected to
continue increasing its presence in the beverage industry.

Coca-Cola’s biggest competitor is PepsiCo, which has manufacturing facilities in the same markets.
However, other beverage companies such as Nestlé, Keurig Dr. Pepper, and Red bull also pose a serious
threat to its market dominance. Coca-Cola focuses on satisfying customers’ tastes and preferences. In
addition, it invests heavily in advertising campaigns that introduce its products to large markets. The
company also ensures that its products are affordable to various socioeconomic demographics.

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6. Coca-Cola in Bangladesh
6.1 The Coca-Cola System in Bangladesh
The Coca-Cola System in Bangladesh comprises of a wholly owned subsidiary of The Coca-Cola Export
Corporation (“TCCEC”) namely Coca-Cola Bangladesh Limited (“CCBL”), which provides marketing and
other support services, a company-owned bottling entity, namely, International Beverages Private Limited
(“IBPL”) and one Independent Authorized Bottling partner of The Coca- Cola Company (TCCC), namely;
Abdul Monem Limited (“AML”). Both IBPL and AML are authorized to prepare, package, sell and
distribute beverages under certain specified trademarks of TCCC; supported by an extensive distribution
system comprising of customers, distributors and retailers. For the purpose of this report, “Coca-Cola
System”, “Coca-Cola System in Bangladesh” and “Coca-Cola Bangladesh” are used interchangeably to
represent CCBL, IBPL and AML, unless otherwise specified. This does not signify any legal or structural
arrangement. Depending on the context, “We” may refer to CCBL and/or IBPL and /or AML and/or Coca-
Cola System.

6.2 Market Share & Product Offerings

Coca-Cola holds a dominant position in beverage market globally. But in Bangladesh, Coca-Cola faces
intense competition from Pepsi and other local beverages. In case of Cola drinks, which is most popular
beverage segment, Coca-Cola holds 60% market share. But in the overall market, Pepsi offers more
products than Coca-Cola, and thus holds a better overall market share than Coca-Cola.

In Bangladesh, Coca-Cola is now offering Coke, Sprite, Current, Kinley, Fanta, Coke Zero, Sprite Zero etc.
These products are available in different sizes such as the most popular Coke comes in 250ml, 400ml,
600ml, 1 liter, 1.5 liters and 2.15 liters.

6.3 Major Rivals/Competitors/Substitutes

The rivals for the beverage unit of AML range from the rivals producing other carbonated beverages as
well as from the producers of other beverages such as Fruit Juices, Flavored Milk, Synthetic Drinks and
Pure Drinking Water. Notably, the major rivals of AML are:

Rival Carbonated Beverage Producers

• Transcom Beverage (Pepsi Cola, 7up, Miranda)

• Partex Group (RC Cola, RC Lemon)

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• AMCL – PRAN (Pran Cola, Pran Up)

• Globe Beverage (Uro Cola, Uro Lemon)
• Akij Food and Beverage Limited, AFBL (Lemu, Mojo, Spa)

Rival Fruit Juice Producers

• AMCL – Pran (Pran Fruit Juice)

• Acme Pharmaceuticals (Acme Juice)

Rival Other Beverage Producers

• AMCL – Pran (Synthetic Lychee Drink)

• Milk Vita (Flavored Milk)
• Aarong (Flavored Milk)

6.4 CSR Programs in Bangladesh

Coca-Cola has been in Bangladesh for over 5 decades, refreshing and spreading happiness through the most
cherished beverages. Since the beginning, Coca-Cola’s aim has been to develop an end-to-end value chain
within the country. With both the local priorities in mind and global strategic mandates, it has driven
initiatives that enhance skill development and build local capabilities crucial for national growth.

Coca-Cola’s operations in Bangladesh are truly embedded in local culture. The Company focuses on
developing products suited for local choices and presents in the local language – successful implementation
of which has led to its replication in neighboring countries as well.

It has supported the Coastal Cleanup Voluntary Initiative since 2011 in Bangladesh and have successfully
completed the 10th Annual International Coastal Cleanup at St. Martin’s Island in collaboration with
Kewkradong. Despite the pandemic, 520 volunteers from across the country participated in the collection
and segregation of waste and advocated the importance of marine conservation, following safety measures.
Women Coca-Cola launched 5by20 initiative in 2015 in Bangladesh to support the economic empowerment
of rural women by establishing Women Business Canters and the program has positively impacted
1,00,000+ women since its inception. Water, being an integral and indispensable commodity of its products,
is extremely material to achieving its sustainability agenda. Coca-Cola’s focus continues to remain on
developing projects that optimize our own water consumption and at the same time provide communities
with access to safe and hygienic water sources.

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The urgency to address social and environmental challenges has grown exponentially. The challenges
caused by the global pandemic of COVID-19 are unprecedented and truly unique. While it will take some
time to recover from these circumstances, Coca-Cola seems committed to make a difference and support
all communities. As Bangladesh celebrates its 50th anniversary of independence, The Coca-Cola Company
reiterates that it is focused on building a sustainable business in an important market like Bangladesh.

7. Conclusion
Coca Cola is a truly global company with presence in multiple countries. The company’s biggest
competitive strength comes from the strong brand that has been developed over 125 years of consistent
marketing efforts. Economies of scale and the network with suppliers and distributors also contribute to the
success. Marketing and advertising has been the most important function that has taken Coca Cola to new
heights. The company has adopted innovating marketing techniques right from the times of Candler and
Robert Woodruff. Apart from usual advertising through bill boards and newspapers, Coca Cola focused on
organizations, universities and colleges and this increased sales while promoting the brand name.

It must exploit its strengths and overcome some of the identified weaknesses within the local and
international market. It should also take advantage of the opportunities that avail themselves in the external
market to increase its market share. Finally, Coca Cola must identify some of the threats that are in the
external environment and develop measures to overcome them. This way, it will be in a position to maintain
its current market lead in the beverage industry.

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References
1. https://en.wikipedia.org/wiki/The_Coca-Cola_Company
2. https://www.simplilearn.com/tutorials/marketing-case-studies-tutorial/coca-cola-marketing-
strategy
3. https://www.researchgate.net/publication/309126383_Strategic_Marketing_Plan_for_Coca-
Cola_-_2016
4. https://investors.coca-colacompany.com/about
5. https://pestleanalysis.com/pestle-analysis-of-coca-cola/
6. https://www.coca-cola.com.bd/content/dam/brands/bd/coca-
cola/image/updates/86898/CCSustainabilityReport_Bangladesh_v6%20spread%20(1).pdf
7. https://www.lawyersnjurists.com/article/current-market-scenario-beverage-products-dhaka-city-
royal-crown-cola-company/
8. https://fbs-du.com/news_event/14664881359.pdf - Comparative Analysis of Global and Domestic
Brands of Soft Drinks in Bangladesh
9. https://www.assignmentsbox.co.uk/wp-content/uploads/2011/10/The-Coca-Cola-Company-
Marketing-Strategy.pdf

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