They have a significant share in the market and generate enormous profits for the company. Coca-Cola's price remains fixed for about 73 years. It cost only five cents over time. Competition increases in the market with competitors like Pepsi is the biggest competitor of Coca-Cola. Because of this, the company has to make its pricing strategy flexible.
If the company follows this strategy, then consumers of their product start doubting its quality, so this significantly drops the price or its value if the company increases its price unreasonably, and people switch to the alternative. Coca-cola is the global industry, and they have a vast network of distribution, their products are sold in more than two-hundred countries. The company depends on its bottling partners and for packing and distribution.
The bottling partners are responsible for manufacture, packaging, and shipping to the agents then transported by road to stockiest then to distributors to retailers and then to the final customer. This is the channel through which it is distributed daily.
The coca-cola products are available in almost all retail outlets, supermarkets, grocery stores, etc. Coca-Cola has an extensive network of a reverse supply chain that collect the leftover glass bottle and reuse it, thus saving the cost and resources. Due to intense competition in the market, Coca-Cola focuses on different promotional and marketing strategies.
They mostly focus on aggressive marketing. It utilizes both traditional and international mediums for the advertising of its brand. When the company was losing market in , it arranged a global contest for designing the bottle.
The company's primary purpose is to indicate to its customers that Coca-Cola is the most exceptional product and to be confused by any other brown beverages. The winner of the contest uses the cocoa pod's design in such a beautiful way that the company starts promoting shape and logo.
Then plastic replaces by the glass as strand means of drinking globally. The company decided to write the logo in the Spenserian script to differentiate from its competitors.
The recipe and logo remain the same, but packaging modified with time. The way the company uses its logo in marketing strategy remains imprinted on consumers' minds for over a hundred years.
Coca-Cola never deviates from its track even though it becomes a massive industry. Across many decades the marketing strategy communicates the same strong message of happiness, enjoyment, and pleasure. Never go out of its style and easily translated worldwide. In the company launched its campaign share a coke in almost fifty countries, and this campaign went very successful. They print messages, images of celebrities of the region, and these messages are according to the local culture of the area, and language.
In this way, they target the local market. This is an excellent example of how localised positioning applied to the global market. Coca-Cola is a well-recognised brand for its sponsorships. With the advancement in technology, online communication channels become the most significant source of marketing. And Coca-Cola takes advantage of all social media platforms and create a profile on it. It also takes part in an online advertisement. Like on Facebook, Twitter, Instagram, Snapchat.
They are available on all social media platforms. Their marketing strategy is so unique, especially considering how unique the brand is and attracting dozens of people. The primary purpose of Coca-Cola is brand recognition, awareness about the brand. Coca- Cola Company is globally known for its largest soda industry, and it is operating in more than countries. Whenever any major tragedy happens in any region, the Coca-Cola company is here and support the people whatever possible to them they do to give relief to the people from the disaster and make all the reasonable recovery efforts.
These initiatives go unnoticed by media but noticed by people on the ground who are directly affiliated. SWOT analysis is the company's framework, and it is the abbreviation of strength, weakness, threats, and opportunities. The internal factors' strength and weaknesses, and the external ones are threads and opportunities.
One of the main strengths of Coca-Cola is its brand name. The company has existed for so long, and it is continuously improving its relationship with its customers and become one of the best-known brands globally. Coca-cola's amazing marketing strategies brought the company to success by using pop singers and actors to attract people using different slogans. These songs among very popular among the population.
Every year Coca-Cola influenced the modern image of Santa clause in Christmas commercials and created a strong bonding among customers. Coca-Cola also makes a contract with big restaurant chains to increase their product market. Coca-Cola is present by the award of the highest brand equity in With its unique identity among all brands, Coca-Cola has the most top brand equity with the vast global reorganization. Coca-Cola is a well-renowned industry worldwide, and it is considered one of the most valuable companies across the world.
As you know, the Coca-Cola company has an extensive network, and it is present in countries you can go anywhere around the globe you will find Coca-Cola.
This contributes to the massive recognition of the trademark. Their biggest competitor of Coca-Cola is Pepsi, and the most apparent winner among two is Coca-Cola and has a significant market share. All other soft drinks such as sprite, diet coke, and coke thumbs up are all the coca-cola growth drivers. Coca-Cola knows how to win the hearts of people to apply different strategies.
Its competitor's target is continuously changing, Pepsi mostly targets youngsters, and Coca-Cola is not restricted, and it targets people of all ages. They also target people by using celebrities in their commercials and advertisement campaign. Coca-Cola has a lot of customers' loyalty because of their reliable products. Coca-Cola and Fanta have massive fan following because of its taste, and people prefer them over others.
Coca-Cola has an extensive network of distribution because of its demand for the product and fulfils people's needs. In this way, they command over such a big market. Coca-Cola products aren't healthy, and most of its products are banned in the campuses due to these people avoid buying for their kids. People prefer healthy food, so coca-cola has to develop new products faster.
Due to America's image in the world, many people refuse to buy its products. Pepsi gives fierce competition to the coca-cola, although it is clear that the winner is Coca-Cola. The competition among these two brands is so intense, and Pepsi does not give up easily. Pepsi makes a smart move and diversified its business into a new segment: snacks they introduced lays and kurkure.
But Coca-Cola is still in the beverages business. This new segment is a great driver of revenue for the company. As the trend is changing and people are more conscious about health. These carbonated drinks cause obesity, and it is a significant problem nowadays, and Coca-Cola is one of the largest companies of carbonated beverages. They have also purchased some of the bottlers, this makes difficult for new players to get bottler contracts or to build their bottling plants.
Fear of Retaliation It is very difficult for new player to enter in this industry because; they will be highly retaliating by local players in local markets and in global scenario they have to face the duopoly of Coke and Pepsi.
This ultimately could result in price war which affects the new player. Coke has significant opportunities within global supply chain to encourage and develop more sustainable practices to benefit consumers, customers and suppliers. While; it is still in the premature stages of exploring these opportunities and dedicated to the economic vitality and health of the farming communities our supply chain engages.
Pepsi promotes and support sustainable agriculture not only because it makes good business sense, it purchase million tons of potatoes and fruits. Threat of Substitute Products Large numbers of substitutes are available in the market such as water, tea, juices coffee etc.
But firms counter them with innovative marketing and massive advertising which build growth for their brands by highlighting their benefits. Players also differentiate themselves by well-known global trade marks, brand equity and availability of the products which most of the substitute products can not contest. Themarket share of other competitors is too low to encourage any price wars. Cola-Cola gets competitive advantage through the well-known global trade marks by achieving the premium prices.
It means Cola-Cola have something that their competitors do not have. Political When Coca Cola had decided to enter a country to distribute the products, Coca Cola was monitoring the policies and regulations of each country. In this case, Coca Cola has no political issues in this matter.
Economic Coca Cola also has low growth in the market for carbonated beverages North America. For stimulating the growth, Coca Cola had spent high budget of advertisement to endorse the customers. Customers more aware about health consciousness by reducing in drinking carbonated beverages to prevent diabetes or other diseases. Thus, Coca Cola diversify the products by adding production lines in tea Nestea , juices Minute Maid , mineral water Dasani and Ades , and sport drinks Powerade , and others.
Technological Because of the developing technology, Coca Cola has advanced technology in producing the products. But, the customers still prefer the original taste of traditional Coke; it can be seen by the high demands in traditional Coke. To study the marketing strategies adopted by Coca-Cola 2. To study the advertising effectiveness Coca-Cola on customer 3. To analyze the awareness of consumer regarding Coca Cola.
To help the company for further changes in the quality, pricing, and policies. Research design The Research available is descriptive so as to describe the complete qualities of juices available in market. Sources of Data collection To do a research always we use two sources of data collection.
Primary and secondry Primary Source: It is the source which collects the primary data through Questionnaire and record the raw data for further analysis, Primary source is used by the face-to-face survey with the customers of the company. Secondary Source: Secondary source is the internet, magazines, and old data files of the research. Sampling Technique The sampling technique which has been used in this research is simple Random sampling.
This has been used in order to simplify the process of sample collection and to use our own wisdom and parameters in relation to selection of sample. The marketing mix is divided up into 4 parts; product, price, promotions and place. Product: The product Coca-Cola soft drink includes not just the liquid inside but also the packaging. On the product-service continuum we see that a soft drink provides little service, apart from the convenience. Soft drinks satisfy the need of thirst.
However, people are always different, some want more and others want less. Therefore Coca- Cola has made allowances for that by providing many sizes. We also have particular tastes, and again they have provided several options. So, although thirst is what is needed to be satisfied and that is the core benefit, we are receiving other benefits in the taste and size.
Coca-Cola has developed several different flavours and sizes as mentioned above, but also several brands such as Sprite, Lift, Fanta and Diet Coke which increase the product line length, thus making full use of the market to maximize sales. The product is convenient, that is - bought frequently, immediately, and with a minimum of comparison and buying effort. The appearance of the product is eye catching with the bright red colour.
The quality of the soft drink is needed to be regularly high. Sealed caps ensure that none of the "fizz" is lost. The bottles are light, with flexible packaging, so they won't crack or leak, and are not too heavy to casually walk around with.
The cans are also light and safe. Introduction 2. Growth 3. Maturity 4. There is a vast difference in terms of above given phases for example, in U. Coca-Cola is currently going through the maturity stage in Western countires. This maturity stage lasts longer than all other stages. Management has to pay special attention to products during this stage of the product life-cycle. During the maturity stage, products usually go through a slowdown in sales growth.
According to Coca- Cola's annual report, sales have increased by 1. Also Coca-Cola went from 6-oz. Price: Like any company who has successfully endured a century of existence, Coca- Cola has had to remain tremendously fluent with their pricing strategy. They have had the privilege of a worthy competitor constantly driving them to be smarter, faster, and better.
If the Coca-Cola Company didn't exist, we'd pray for someone to invent them. Throughout the years Coca-Cola has made many pricing decisions but one might say that their ultimate goal has always been to maximize shareholder value.
As Cola consumption has decreased in the US Colas have come to realize the untapped international market. In order to grab market share Pepsi began to drop prices even with summer approaching, which was contrary to policy in America. Shortly thereafter, Coca-Cola decided to drop their prices slightly, but focused on the reduced price point of their mL container. Coca- Cola planned to use the lower price point to penetrate new cities that were especially price sensitive.
This low price strategy was not unfamiliar to Coca-Cola. After annihilating the low price store brands, Coke chose to reposition itself as a "Premium" brand and then raise prices. Coca-Cola products would appear, on the shelf, to have the most expensive range of soft drinks common to supermarkets, at almost double the cost of no name brands. This can be for several reasons apart from just to cover the extra costs of promotions, for which no name brands do without.
It creates consumer perceptions and values. When people buy Coca-Cola they are not just buying the beverage but also the image that goes with it, therefore to have the price higher reiterates the fact that the product is of a better quality than the rest and that the consumer is not cheap. This is known as value-based pricing and is used by many other industries in attracting consumers.
In India, the average income of a rural worker is Rs. Coca Cola launched a ml bottle for just Rs. Place: Coca-Cola entered foreign markets in various ways. The most common modes of entry are direct exporting, licensing and franchising. Besides beverages and their special syrups, Coca-Cola also directly exports its merchandise to overseas distributors and companies. Other than exporting, the company markets internationally by licensing bottlers around the world and supplying them with the syrup needed to produce the product.
There are different types of franchising. The type that is used by Coca-Cola Company is manufacturer-sponsored wholesaler franchise system. It is very comparable to licensing but the only difference is that the finished products are sold to the retailers in local market. Have you ever considered the significance of the Coke vending machine to the success and profitability of the Coca Cola company?
This channel is direct to consumer and vending machines often have little to no competition and no trade or price promotions. Normally they keep their freezers near the entrance of the stores. Like once they offer bicycles, caps, tv sets, cash prizes etc.
This scheme is very much popular among children. Direct selling 2. Indirect selling Direct Selling In direct selling they supply their products in shops by using their own transports. They have almost vehicles to supply their bottles. In this type of selling company have more profit margin. Indirect Selling They have their whole sellers and agencies to cover all area. They have a separate department for print media.
POS Material Pos material mean point of sale material this includes: posters and stickers display in the stores and in different areas. They have so many sites in different locations for their billboards. So far Pepsi has won, outselling Coke In these four years the company has successfully managed to fritter away the 69 per cent market share of -the five Parle brands -- Thums Up, Limca, Citra, Gold Spot and Maaza -- which it bought from the Chauhan brothers.
Wrong strategy : trying to push only its US brand, ignoring the Indian-acquired brands and failing to strike a chord with Indian consumers by not using localised advertising campaigns.
Short is trying to achieve what his predecessors, Jaydev Raja and Richard P. Nicholas Ill, could not. His new mantra: do in India as Pepsi does as the famous saying at Coke Atlanta, do as the Atlantans do.
Like Pepsi, Coke has started sponsoring local events and staging frequent consumer promotion campaigns. It has started picking up equity stakes in its bottlers to guarantee them financial support though its bullying tactics on paying compensation have drawn sharp criticism.
It has finally started releasing locally- created ads, using Indian idiom to strike a chord with consumers. And finally it has started pushing its strike a chord with consumers. And finally it has started pushing its Indian brands -- led by Thums Up -instead of focusing on only its flagship.
After years of eating, sleeping and drinking movies, cricket and Coke, Coca- Cola is finally waking up to the strength of the local brands that it took over from Ramesh Chauhan in So Coca-Cola pushed its own brand. But somebody forgot to narrate the same script to Indian consumers who insisted that they wanted their thunder back. Coca-Cola has now reconciled to the fact that Thums Up and Limca are the two most popular soft drink brands in India, especially in the western and southern regions.
Keeping this in mind the company has lined up an aggressive marketing campaign to push the two brands in the domestic market. Coke itself accounts for 23 per cent. The balance comes from Coke's other brands, including Fanta. Citra and Maaza. In terms of all-India market share. Thums Up has 16 per cent whereas Coke has Limca will command 15 per cent to 18 per cent, marginally lower than the 20 per cent to 25 per cent which will be spent on promoting Coke.
Despite being a global brand, Pepsi has built its success on meeting the Indian consumer's needs, particularly in terms of making the brand synchronize with localized events and traditions. By offering free Pepsi with idli it tried to beat Thums Up and Coke in the south. In Calcutta, where Coke always has a large hold, Pepsi linked itself with neighborhood cricket tournaments. In Delhi it associated itself with Holi and offered free colour sachets with Pepsi bottles.
Says Mr. By contrast, Coke deliberately chose to bring in expatriates. Instead of trying to create a bond with customers with low impact activities it resorted to high impact activities like sponsoring the World Cup and the Olympics 'in But unfortunately none of these helped it to raise its customer base despite the high advertising spend.
While Pepsi's market share rose from 24 per cent to Flexibility is the weapon which Coca-Cola has lacked since all controls are vested with Atlanta. Coke's trade promotions have followed a predictable pattern, offering fat margins to retailers for a limited period of time -- without exploring alternatives that raise the level of involvement for the seller as well as the consumer.
In sharp contrast, flexibility has always been one of the most important weapons in the hands of Pepsi Company India. Every manager and salesperson has the authority to take whatever steps he or she feels will make consumers aware of the brand and increase its consumption. How they go about is completely up to them. We are performance oriented and look at only results, not at the methods adopted to get those results.
The conflicts have finally settled down to a pattern that reflect its global experience. Coca-Cota India is floating two subsidiaries, Bharat Coca-Cola and Hindustan Coca-Cola which will act as holding companies for most of its bottling operations. Thus giving the transnational ownership and control over this crucial part of its operations. Earlier the company had made the mistake of demanding huge investments from its bottlers without worrying about the returns, assuming that they would be willing to sustain losses as long as Coca-Cola did.
In the process, it alienated the former Parle franchisees, the Chauhans. According to Mr. Chauhan there is a big difference between the kind of investments Coke has in mind and the kind of investments made by him. Coca-Cola is now in the process of buying out bottling plants located in Patna and Kanpur, to of its important northern markets. Sinha reveals his relations with the bottlers by saying that they are his partners and the management listens to them, which Coke last year failed to do.
Every member of Pepsi's sales team is meticulously taught the merchandising and display skills that can leverage the reach of the company's bottling network to achieve high visibility for the product. If Mr. Short can now adopt Pepsi's method of transferring the transnational's expertise to its bottlers, his brands will benefit. Pricing Methods Good pricing decisions are based on an analysis of what target customers expect to pay, and what they perceive as good quality.
If the price is too high, consumers will spend their money on other goods and services. If the price is too low, the firm can lose money and go out of business. Leader follower pricing occurs when there is one quite powerful business in the market which is thought to be the market leader.
The business will tend to have a larger market share, loyal customers and some technological edge, thus the case currently with Coke, it was first the follower but through effective management has now become the leader of the market and is working towards achieving the marketing objectives of the Coca Cola. Effective communication with the target market is essential for the success of the product and business. Promotion is the p of the marketing mix designed to inform the marketplace about who you are, how good your product is and where they can buy it.
The promotional mix is the combination of personal selling, advertising, sales promotion and public relations that it uses in its marketing plan. Above the line promotions refers to mainstream media:Advertising through common media such as television, radio, transport, and billboards and in newspapers and magazines.
Because most of the target is most likely to be exposed to media such as television, radio and magazines, Coca Cola has used this as the main form of promotion for extensive range of products. Although advertising is usually very expensive, it is the most effective way of reminding and exposing potential customers to Coca Cola Products. Coca Cola also utilizes below the line promotions such as contests, coupons, and free samples.
These activities are an effective way of getting people to give your product a go. Place and Distribution: The place P of the marketing mix refers to distribution of the product- the ways of getting the product to the market. The distribution of products starts with the producer and ends with the consumer. Selecting the most appropriate distribution channel is important, as the choice will determine sales levels and costs.
From supermarkets to service stations to your local corner shop, anywhere you go you will find the Coca Cola products. Physical Distribution Issues Coca Cola needs to consider a number of issues relating to the physical distribution of its soft drink products.
The five components of physical distribution are, order processing, warehousing, materials handling, inventory control, transportation. Coca Cola must further try to balance their operations with more efficient distribution channels. Order Processing- Coca Cola cannot delay their processes for consumer deliveries i. Warehousing and inventory control- warehousing of Coca Cola products is necessary. Materials handling- this deals with physically handling the product and using machinery such as forklifts and conveyor belts.
When holding products, then Coca Cola has benefited from purchasing or renting respective machinery. Transportation- transporting Coca Cola products is the one most important components of physical distribution. Electing either to transport the sports drink by air, rail, road or water depends on the market i.
The most beneficial transportation method for Coca Cola would be ROAD if the product were moved around from storage to the cost centers.
Implementing, Monitoring And Controlling Financial Forecasts Financial forecasts are predictions of future events relating strictly to expected costs and revenue costs for future years. There are five major marketing expenditures, which include research costs, product development costs, product costs, promotion costs and distribution costs.
Sales force composite is the most logical method in forecasting revenue. This involves estimates from individual salespeople to sell to work out a total for the whole business. Once these costs and revenues are forecasted, management can then decide which combination of marketing mix strategies will deliver the most sales revenue at the lowest cost. Implementing Implementation is the process of turning plans into actions, and involves all the activities that put the marketing plan to work.
Successful implementation depends on how well the business blends its people, organisational structure and company culture into a cohesive program that supports the marketing plan. For its further success, Coca Cola must impose several key changes.
Production needs to be on time and meet the quota demanded from wholesalers. It must also be efficient so as not to build inventory stocks and inventory prices. The marketing needs to be motivated and knowledgeable about the product. The forms of promotion such as advertising must be attracting and enticing to the target market to get the greatest amount of exposure possible for the product. This will ensure the success of the product in the stores. Distribution of the product must be efficient.
This problem has already been taken care of with convenient transport routes to commercial areas and transport already being arranged. This is important because it allows Coca Cola to take the necessary actions to meet the marketing objectives. There are three tools Coca Cola should use to monitor the marketing plan. They are the following: i. Sales Analysis The sales analysis breaks down total business sales by market segments to identify strengths and weaknesses in the different areas of sales.
Sellers of Coca Cola products vary from major retail supermarkets to small corner stores. This gives the its products maximum exposure to customers at their convenience. With the changes Coca Cola is currently undergoing, they aim to regain an iron fist control of the market. Target market various age groups and lifestyles from high school students too universities, and male or female. Marketing Profitability Analysis This analysis looks at the cost side of marketing and the profitability of products, sales territories, market segments and sales people.
There are three ratios to monitor marketing profitability; they are market research to sales, advertising to sales and sales representatives to sales.
The results of these three tools can help Coca Cola determine any emerging trends, such as the need for a different product. Comparing these results with actual results gives the business an idea on when to change. Market Research When attempting to implement a new Marketing plan a business must address its target market and conduct the relevant information to insure the new marketing plan both differs from the old and is better for the business.
When conducting market research a business must first define the problem and then gather the appropriate information to solve the problem.
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