Fizzing Success: Unveiling Coca-Cola's Marketing Mastery

Gautam Buddha University

Degree Of Master’s In
Journalism And Mass Communication

By- Submitted to –

Anuraag Krishna Ms. Karuna Singh

Enrolment No.- 234LJM001

 ACKNOWLEDGEMENT

I am Anuraag Krishna, Enrolment number- 234/LJM/001, student of third semester of

Master’s in Journalism and Mass Communication (MAJMC) is required to write a
report about case study of Coca-Cola’s Marketing and Advertising strategy. It helps to
develop my skill in problem solving, decision making in complex situation and
improves our analytical skills.

Writing a case study is not an easy task as it requires constant guidance, support and
assistance in order to make it meaningful and complete. It is time to express my sincere
thanks to the person who help in making this report.

So, I would like to express my sincere appreciation and profound indebtedness to Ms.
Karuna Singh of for her constant guidance, cordial support and co-operation in
completing this case study.

Anuraag Krishna
 Table of Contents

1. Abstract...........................................................................................................................................................1
2. Introduction.....................................................................................................................................................1
3. Problems……………….................................................................................................................................3
4. Issues………………………………………………………………………………………………………...4
5. SWOT Analysis..............................................................................................................................................5
6. Alternative
solution.......................................................................................................................................13
7. Coca Cola’s Four ‘P’s ……………………………………………………………………………………..15
8. Product Advertising………………………………………………………………………………………..17
9. Celebrity Endorsement…………………………………………………………………………………….18
10. Sponsorships……………………………………………………………………………………………….19
11. Evaluation………………………………………………………………………………………………….20
12. Recommendation .........................................................................................................................................20
13. Conclusion…………………………………………………………………………………………………21
14. References………………………………………………………………………………………………….21
 1. Abstract –
Coca-Cola is a global beverage that is available worldwide. Whether you live in a thriving metropolis
or a rural village, there is probably a Coca-Cola vending machine close to your home. With a brand
value of 106.1 billion US dollars in 2023, an eight percent increase as compared to 2022. After eight
years, Coca-Cola returned to the top ten most valuable global brands ranking.

This study presents an overarching evaluation of all aspects of a profitable Coca-Cola marketing plan.
Given that the Coca-Cola firm has been around for a century, the study gathers information from the
Internet, analyses it, and comes to a conclusion. It will be simpler for you to evaluate Coca-Cola's
success using the following three metrics after reading this article: advertising, product innovation,
and brand culture.

Keywords: Coca-Cola, marketing strategy, advertising, product innovation, brand culture.

2. Introduction
With 1.9 billion drinks consumed daily across more than 200 countries, Coca-Cola, which was first
introduced more than 120 years ago, is still the most popular soda in the world. The company has
always been excited about improving consumer engagement. With over 3,500 non-alcoholic beverage
products under its belt, Coca-Cola is the largest manufacturer and licensee in the world because to its
effective marketing strategy.

Some key elements of Coca-Cola's branding and messaging include: Happiness and Optimism –
Coke's brand identity has always centred around happiness, joy, fun, and optimism. Their marketing
messages promise happiness and good times through drinking Coke.

The experiences and benefits that are provided and expanded for the brand are covered in a
company's mission statement. Coca-Cola uses its fundamental principles to fulfill its mission
statement in its entirety. In the meantime, the company's vision statement addresses how leadership
can impact the organization and its modifications to the target market and industry as a whole.

The three guiding principles are viewed by almost all businesses as a means of efficiently aligning the
activities and interests of all stakeholders and members of the organization with their overarching
objectives.

In 2002, Coca-Cola Company reduced its key earnings objective. It also launched the Dasani brand,
which became success in some countries but was bungled and eventually withdrawn in the UK. In
2003, Coca-Cola Company reduced its target to 10% whereas in 2004, new chief executive, Noel
Isdell further reduced the target to 6- 8%. In year up to 2005, Coca-Cola has undertaken some new
product launches and they have been moderately successful

A company's success is largely dependent on its goal, vision, and basic principles. Even though they
could differ from business to business, they might be great for drawing ideas from well-known
companies that have been in business for a longer period of time.
 3. Problems-
The problems of Coca-Cola Company in this case are as follows:

 Low growth in the market: As the Coca-Cola Company dominates the carbonated soft drink
market but this market grew by only 2% by volume worldwide during 2001. Because of the slow
pace of growth in this market, company was unable to achieve its set objective during that year.
During 2004, the growth rate of Coca-Coal’s leading market.

 The way that Coca-Cola earns its profits: Coca-Cola Company buys small bottling companies
around the world and sells them at a higher price to large regional bottling companies, putting the
profits from the sale into the Coca-Cola profit line. As well as company also charges higher prices to
its local bottlers for the concentrated and syrups supplied from it’s headquarter. In this way, company
earns a huge amount of profit without sharing its profit with the bottlers, owned by the company. So,
company has to reduce its earnings growth objective.

 Doubt about the earnings growth objective relates to the successful introduction of new
products: Coca-Cola Company’s great rival Pepsi had launch a diet cola and also introduce cola with
a lemon twist in 2001, and had already cover smaller market share in most countries than coke which
had becomes a big threat for the Coca-Cola company and the company was unable to achieve its set
target and had to reduce its key earning objective. CocaCola had attempted to replace classic coke
with a more modern version in the early 1990s and eventually had to bring back the original variety.
In the year up to 2005, it had also launches some of its new products and has been moderately
successful but could not meet its set target.

 Reluctance of the company to make acquisitions that might enhance earnings growth: Coca-
Cola Company did not acquire Quaker Oats Company as it was one of the fast growing company.
Coca-Cola Company could enhance its earnings growth by acquiring Quaker Oats Company.
However, Coca-Cola Company felt reluctance to purchase this company as its price was too high for
the Coca-Cola Company i.e. US$16 billion.
 4. Issues

The following are the issues of Coca-Cola company as per in this case:

 High threats of competitor:

As the Coca-Cola Company’s great rival is Pepsi. Since, the Pepsi launches different
products as it was first to launch a diet cola and was first to introduce a cola with lemon
twist as well as it has high share market than coke. So, it has become a high threat for the
Coca-Cola Company. Not only this, Pepsi also bought Quaker Oats company which is
one of the fast growing company. This has also become a great threat for the Coca-Cola
Company.

 Making profit by charging higher price to bottlers company:

Coca-Cola Company is charging higher prices for the concentrates and syrups supplied to
local bottlers from it’s headquarter. It has also been reported that Coca-Cola Company
buys small bottling companies around the world and then selling them at a higher price to
larger regional bottling companies, putting profit from the sale into the Coca-Cola profit
line.

 Decline in sales:

Coca-Cola Company’s sale is declining. As first, it has set an objective to achieve 11-
12% per annum over next three years. But in 2003, its volume sales growth decreased to
5-6% .Again, in 2004, its sales growth decrease to 3-4%.

 Poor performance of the company:

Chief executive of Coca-Cola Company set its target to achieve a growth in operating
income but was unable to achieve its set target. Company was not performing efficiently
and effectively due to which it cannot meet its set standard. Due to the performance,
company was not able to achieve its objective within its time limit and had to reduce its
 set target.

 Heavily reliant on a single market:

Coca-Cola Company reliance heavily only on carbonated soft drink market from where it
derives 87% of its total sales. Whereas it has a low share on non-carbonated soft drink
market such as fruit juices, sports drinks, bottled water. Pepsi was much stronger on non-
carbonated soft drink market than Coke.

5. SWOT Analysis

SWOT analysis of Coca-Cola Company as per the given is shown in the following table:

Strength: Weakness:

 Flexibility in decision making.  Low share on non-carbonated soft drink

market.
 Domination of carbonated soft drink
 Poor performance.
market.
 Earning higher profit by charging  Inability to acquire Quaker Oats
higher price to bottling companies. Company.
 Lack of analysis of new product.

Opportunities: Threats:

 Diversification:  High threats of competitors.

 New product development.  Changes in customer preference.

 Dynamic environment.

 Increase competition in carbonated soft

drink market.
Elaborating the SWOT Analysis –
Strengths-

 Flexibility in decision making:

Coca-Cola Company changes their decisions in order to adapt in the dynamic

environment. In this case, it is seen that Coca-Cola Company has changes its decision
when company was not able to meet its target within a given time limit. As, the company
has the ability to change its own decision it can easily adapt the competitive environment
and achieve its goal.

 Domination of carbonated soft drink market:

Coca-Cola Company has dominated carbonated soft drink market. In this market, it
derives 87% of its total sales. Since, it has almost covered the whole market which helps
the company to be a market leader and can easily compete with the competitors.
Company can also earn a huge amount of profit as it has covered almost carbonated soft
drink market.
 Earning higher profit by charging higher price to bottling companies:

o Coca-Cola Company earns a huge amount of profit by charging higher price to

bottling companies. It can easily recover its cost of production and can remain
sustainable for a long term.

They Are the leading consortium in the Market for Consumer Beverages and have attained strong
advantages over their competitors.

Coca cola utilizes a strong marketing strategy and various enterprise Advertisements that entice
consumers to buy their products

The Brand logo and Image of the Coca Cola Franchise is cemented within the majority of consumers
in the market and has almost become a daily part of their consumption
Coca Cola has managed to keep their formula a secret. Giving them a huge advantage over their
competitors.

They have an integrated system of Marketing ranging from vending machines within the fast-food
industry and multiple strong channels of distribution i.e. McDonalds

They Have the ability to produce innovative products via a well-established research and
development team.

Due to the fact that they dominate a high market share, their products are mostly products that lead
the market.

The products the Coca Cola Franchise is responsible for have the characteristics of being convenient,
reasonably priced and a unique flavour.

In Countries such as Singapore and China they tend to experience high sales during the Chinese New
Year period, this is largely due to the fact that their main Image is very “Red” and Red is considered
to be lucky and prosperous within these countries

They Are responsible for the Coca Cola Polar Bear and the portrayal of St. Nick as a plump Jolly
figure. This allows them to attain high sales during the Christmas Period as well.

2. Weakness-

 Low share on non-carbonated soft drink market:

The company has low share on non-carbonated soft drink market which is one of the
weaknesses of this company. Its rival Pepsi is much stronger in this market than coke. So,
the company cannot able to achieve its set objective.

 Poor performance:

Since the company makes a standard but due to poor performance, company is unable to
meet its standard. Lack of efficient and effective performance has made the company
unable to meet its target.
  Inability to acquire Quaker Oats company:

Coca-Cola Company was unable to acquire Quaker Oats Company whose market share is
growing very fast. By acquiring this company, it might help Coca-Cola company to
enhance its earnings growth.

Due to the sheer size of their industry, the control of the corporation has not been easy due to
hundreds of different components within the franchise.

A consumer Stereotype of Coca cola is that their beverages are not healthy. This is widely due to the
fact that Coke contains caffeine, sugar and various other ingredients.

Because the products of Coca-Cola Company are mainly bottled drinks, the quality of the products
which consumers finally enjoy is relatively difficult to control (due to the possibilities of expiration
or metamorphism and other situations).

It tends to be very easy for the consumer’s to buy from the competitor’s i.e. Pepsi due to the fact that
each products are very similar in how they are made, how they are marketed, their prices and to some
extent their taste.

3, Opportunity-

 Diversification:

Diversification in the health and food business will improve the offerings of Coca cola to
their customers. This will also ensure that they get better revenue from existing customers
by cross selling their products. The supply chain which is distributing their beverages can
also distribute these snacks thereby sharing the load of Supply chain costs.
 New product development:

Company can develop new products according to the taste and preference of consumers.
Company can earn a huge amount of profit by developing products which helps to
achieve its set objective.
Generally speaking, it is quite easy for the companies to enter the industry of soft drink. However, the
standard which is needed to come to be an international corporation is quite high.

As is known to all, carbonated drinks suit better with the demand of young people. Also, the
proportion of young people is increasing fast, especially in some countries in Latin America and Asia
Pacific. This would therefore be a positive sign that Sales in the future should increase and therefore
bring in More revenue.

Every Chinese New Year and Christmas Period, the Coca Cola has an opportunity to reach peak sales
and therefore Maximize profits

There are always new rising stars within each country (I.e. Wayne Rooney – Iconic English Football
figure, Cheryl Cole – A female British music Artist) Such rising stars have a huge Fan base that coca
cola can exploit by getting these icon’s to endorse their products

American fast food culture coordinates with the carbonated drinks

Junk Food Outlets such as McDonalds have normalized the idea of Coca Cola being a dring that goes
with fries and a burger.

Big Events such as The World Cup with draws in millions of viewers, by sponsoring and or basing
advertisements around such events increases sales.

4, Threats-

 High threat of competitor:

As the Coca-Cola Company’s great rival is Pepsi. If the Pepsi launches its new products
in the market, then, it will create a big threat to Coca-Cola Company because there will
be decrease in company’s profit, market share and loyalty of customers.

 Changes in customer preferences:

If there is change in taste and preference of customer than it will create a negative impact
on the company because company have to make another new product according to taste.
  Increase competition in carbonated soft drink market:

If there are many companies in carbonated soft drink markets, then it will create a
competition among them which will create a negatively impact on growth of the
company.

There is still a high possibility that the other non-coke carbonated beverage will take place of Coca-
Cola, for example Pepsi, one of Coke’s biggest competitor’s

If the general consensus decided to forgo a healthier lifestyle it would almost certainly cause a
decrease in sales for some of Coca Cola’s main products i.e. Classic Coke.

Even though the Secret Formula is a key factor to the success of the Franchise, it also carries a big
risk. If the formula was to be discovered it would prove disastrous for the company and could almost
be certain doom for the firm.
6. Alternative solutions

 Analyzing the taste and preference of the consumers:

Before introducing any products in the market, Coca-Cola Company should analyze the
taste and preference of the consumers. Since due to the globalized world, advertisement
and availability of different substitute goods, there taste and preference is changing day
by day. So, the company should do research about of the taste and preference of the
customers and then introduce new product in the market.
Advantages:

o Sales of a product will increase.

o Company can earn a huge amount of profit.

o Company can remain sustainable in this competitive business environment.

 Focus on non-carbonated soft drink market:

Coca-Cola Company has low market share on non-carbonated soft drink market. Whereas
it’s great rival Pepsi, has dominated most of its market. So, Coca-Cola Company should
focus on this market by producing verities of non-carbonated soft drink products on the
basis of taste and preference of customers.
Advantages:

o Growth in market share of non-carbonated soft drink market.

o Increases profitability of the company.

 To explore global advertising:

Coca-Cola Company should do global advertising which helps company to achieve its
objective. With the help of this advertising, company can advertise their product world
widely, people from different country can know about its products. As result,
sales of a company will increase and company can easily meet its objective.
Advantages:

o Brand position of a company will be much stronger.

o Sales of a company will increase.

o Increase customer loyalty.

o Market share of a company will increase.

7. Coca Cola’s Marketing Mix- The Four ‘P’s

1. Price
2. Product
3. Place
4. Promotion

 Price-
Coca-Cola products typically range in price from $1 for cans to $2.50 for 1.5-liter
bottles. A product that has low prices is one that is highly elastic to price. Therefore,
lowering pricing ensures higher sales and, consequently, a rise in revenue overall. It is
more advantageous for the franchise to establish lower prices because the product is
consumed on a regular basis. Because it is inexpensive to manufacture their goods and
sell it in large quantities to many customers, prices are similarly low.

 Product-
Several products are under the ownership of the Coca-Cola franchise. Coca-Cola,
Sprite, and Dasani Water, for instance. Their ability to differentiate their products
allows them to meet a number of the needs and desires of their customers. Since most
customers won't stick to one kind of beverage, you can satisfy all of their needs and
wants by distinguishing your product line. This further enables the franchise to target
a variety of consumers. For instance, the younger generation is more likely to favor
sodas like Sprite and Coca-Cola. The elder generation, on the other hand, might only
occasionally drink such things and would much rather drink water. Coca-Cola can
also use it to target customers who might not be able to drink regular coke because
they have diabetes. This area is covered by the product known as ‘Coke Zero’ which
claims to have no Sugar but still contains the taste of Coke.

 Place-
Coca Cola products such as Coke and Coke Zero can be found pretty much anywhere.
The Coca Cola franchise distributes their products among various outlets, For
example ‘7-Eleven’. By distributing products to convenient stores, it allows their
products to be readily available to anybody who wants to quench their thirst.
Convenient outlets such as 7-eleven are key to Coca Cola’s sales as such stores are
 located in highly populated areas where the potential for a sale is very high, if not
guaranteed. On top of that, the products sold at convenient stores tend to be more
expensive. This is due to the fact that convenient stores are located in such highly
competitive locations with little to no competition.
Their products can also be found at every food outlet, this is because their franchise is
so well known, that consumers want it with their meal. Coca cola has also become
iconic with fast food outlets such as McDonalds. Every McDonald’s meal is
advertised with a Coke.

 Promotion –
Coca-Cola runs a variety of promotions with prizes ranging from modest cash awards
to sums of Rs.100,000 or more. Their most popular offer involves hiding a code
behind the bottle cap, and if you find the code, you may win a reward worth hundreds
or even thousands of rupees. Customers will be eager and willing to purchase the
product if such high-end rewards are offered, since the possibility to win a product
valued at hundreds of bottles of Coke is too wonderful to pass up. Coca-Cola
occasionally runs many promotions at once for a set amount of time. Additionally,
Coke often performs exceptionally well on holidays and big occasions like Christmas
and Diwali, and many other festivals.
Because red is believed to be a cheerful, bright color that brings luck, it is a highly
traditional color. It's said that how one presents themselves on New Year's Day
determines how they will act and behave throughout the year. Thankfully, Coca-Cola
is known for its red color, so sales during New Year's tend to be strong. Additionally,
Coca-Cola now has a huge window of opportunity to market and sell its products.
Coca Cola also promote their product via World Events, such as the World Cup.
8. Product Advertising –

Coca-Cola has used advertising as one method of product implementation in the past. A good
illustration of how they achieved this was with "Coke Zero," one of their more recent
offerings. In order to effectively launch this product into the market, they needed to focus on
a particular age range, namely young adults. Because it reduces the number of options,
focusing on your target market will make it easier to develop the product's marketing and
advertising plan. For instance, marketing Coke Zero to those in their 50s and 60s as a thirst
quencher would not be a viable marketing strategy. Thirst quenchers are better suited for
young adults since they are linked to gregarious, active youth.
Developing a feature that sets a new product apart from the competition is a crucial part of
putting it into production. By referring to Coke Zero as "calorie-free," the company set itself
apart from "Diet Coke," which has some calories. Additionally, a US study revealed that
young men connected diet beverages to women. For a franchise like Coca-Cola, these kinds
of research are essential since they enable them to successfully target the right market group.
Coca-Cola most likely would not have generated as much revenue as they did if they had not
conducted this kind of market research.
Integrated Marketing Communications: Coca-Cola employs diverse marketing channels to reach
its target audience. The company utilizes television commercials, print advertisements,
outdoor billboards, digital marketing, social media, and sponsorships of major events and sports to
maximize brand exposure.
Throughout the decades and multitudes of marketing campaigns, Coca-Cola has consistently
communicated one strong and compelling message: pleasure. Enduring, simple slogans such
as “Enjoy” and “Happiness” never go out of style and translate easily across the globe.
9. Celebrity Endorsement –
Hiring an established celebrity is a highly successful strategy for introducing a product to the
market. Cheryl Cole, a British pop singer was contracted by Coca-Cola to promote Coke Zero
in the UK. Celebrity endorsements work well because the endorsers are well-known across
the globe, have a large following, and nearly always have a devoted following that strives to
emulate their actions. The purpose of choosing a desirable, well-known UK musician was to
persuade young males to purchase the goods. In a same manner, Denmark promoted the
product overseas using Sarah Harding, Cheryl Cole's bandmate.
Aamir Khan, Aishwarya Rai, Shah Rukh Khan, Ranbir Kapoor and Deepika Padukone,
among others, have been variously associated with brands belonging to the two cola firms at
different points in time. Brand expert Ashish Mishra, CEO, Interbrand India & South Asia,
says stars will continue to endorse soft drinks. Coca-Cola has signed Bollywood
heartthrob Tiger Shroff as the brand ambassador for Coke Zero.
10. Sponsorships –
Coca Cola have successfully launched their products into the market via Sponsorships. Since
2008 Coke Zero have been sponsoring a NASCAR Sprint Cup called the “Coke Zero 400”.
By sponsoring such big events, it shows the consumers that they are aware of their interests
and also advertises the product as a “Sporty Beverage”. It creates Brand Awareness, as
everyone going to the “Coke Zero 400” will obviously be aware of the product. Such events
like this will also focus on selling the one product to the consumers, giving them little to no
other option. Sponsorships would also be able to create consumer loyalty as it shows that
your supporting something that they like.
Disney Star, the official broadcaster for the ongoing Asia Cup and the upcoming ICC Men's
Cricket World Cup 2023, is believed to have sealed a sponsorship agreement of Rs 150-160
crore.
The beverages major is already the exclusive non-alcoholic beverage partner of the ICC for
the upcoming Cricket World Cup. With this deal, Coca-Cola now joins the ranks of
Hindustan Unilever and Mahindra Auto as key sponsors for the ICC Men's Cricket World
Cup and Asia Cup on Disney Star.
11. Evaluation –

To Evaluate the Sales of the product, I would first look at the overall amount of goods sold
and compare it to the overall cost of Goods sold and cost of production. If the product i.e.
Coke Zero’s Amount of Goods sold was greater than the cost of goods sold and Cost of
production, it would be a sign of success, as it shows that the product has made some profit.
On a global scale I would then compare each Market’s results with one another in order to
identify if one market is doing poorly, for example if the sales of Coke Zero in Finland were
below par, I would try to identify what causes this. Likewise I would also identify what has
been successful in certain markets; in order to utilize the same factors for a product I may
introduce in the future to guarantee that that product will also be a success.

Within the first few months of sales I would hope to establish a survey for a general
consensus of people within a population. This is to find out if my product is indeed being
marketed to the right demographic, if there is anything Coca Cola as a franchise could do to
improve the product and also what the consumers may want to see in the future. Not only
would this evaluate the successfulness of a product and marketing Team, it would also create
consumer brand Loyalty as it shows that we as a franchise care about what the consumer
wants. It would also indicate any possible flaws in the product that we can negate in the
future. It may also reveal that a different age group may be keener on the product which
would open up a window of opportunity that coca cola can try and expose for their benefit.

12. Recommendation –

Coca-Cola Company should analyse environmental condition as well as its strength and
weakness before making any decisions. It should also focus on its non-carbonated soft drink
market. Before launching any product in the market, Coca-Cola company should do research
analysis about taste and preference of customers, market condition, products of competitors,
etc. It should also do national advertising not relying only on global advertising. This helps
company to meet its objective with in a time limit.
13. Conclusion –

Coca-Cola is a multinational corporation that operates in several nations. The company's

powerful brand, which has been built over 125 years of persistent marketing efforts, is its
greatest competitive advantage. The success is also attributed to economies of scale and the
network with distributors and suppliers.

The primary function that has propelled Coca Cola to unprecedented heights has been
marketing and advertising. Innovative marketing strategies have been used. In addition to the
customary forms of newspaper and billboard advertising. Coca-Cola promoted the brand
while increasing sales by concentrating on institutions, colleges, and organizations.

Coca-Cola was able to consciously differentiate itself from the tens of thousands of beverage
brands available worldwide, thanks to its excellent marketing approach, which included
brand culture, product innovation, and advertising. Initially, the commercial increases Coca-
Cola's brand awareness and appeal. Additionally, consumers can constantly preserve the
freshness of Coca-Cola's goods thanks to product innovation. Last but not least, Coca-Cola's
brand culture has created a distinctive brand positioning, which will help consumers
recognize the brand strongly and develop strong brand loyalty. Coca-Cola can continue to
improve its goods by learning from its difficult experiences, despite the difficulties it has
endured. As a result, I think Coca-Cola will continue to develop and have promising
prospects for the upcoming decades.

14. References –

https://www.coca-cola.com/in/en

https://www.coca-colacompany.com/about-us/history#:~:text=The%20Origin%20of
%20Coca%E2%80%91Cola,of%20how%20it%20all%20began.

https://www.coca-colacompany.com/

https://www.ukessays.com/essays/marketing/the-introduction-of-coca-cola-company-
marketing-essay.php