Beruflich Dokumente
Kultur Dokumente
ON:
ADVERTISING
AND
PERSONAL
SELLING:
COCA-COLA
AND
ITS
MARKETING
STRATEGIES
By
..
DIVYA
ALAPATI.
INTRODUCTION
Type
Cola
Manufacturer
Country of origin
United States
Introduced
1886
Color
Caramel E-150d
Flavor
Website
CEO
Headquarters
Founder
www.coca-cola.com
Muhtar Kent
Atlanta, GA, United States Of America
Asa Griggs Candler
HISTORY
a patriotic drink. The popularity of the drink exploded in the wake of World
War II as American soldiers returned home, more grateful than ever to partake
of a beverage that had become synonymous with the American way of life.
PRODUCTS
OF
COCA-COLA
There are different brands of the Coca Cola Company, which are currently in
use throughout the world. This company not only deals in the carbonated
drinks but also other drinks. While launching its product, the marketing team
considers the culture of the country. Major brands of coca cola
Coke
Sprite
Fanta
Diet coke
Coke classic
Minute Maid
1.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 flavors 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 color. It has
a uniquely designed bottle shape that fits in your hand better, and creates a
nicer & more futuristic look.
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 wont crack or leak, and are not too heavy to casually walk
around with. The cans are also light and safe.
The product range of Coca-Cola includes:
Coca-Cola, Coca-Cola classic, caffeine free Coca-Cola, diet Coke
caffeine free diet Coke, diet Coke with lemon Vanilla Coke, diet Vanilla
Coke, Cherry Coke, diet Cherry Coke Fanta brand soft drinks, Sprite
diet Sprite Sprite Remix 26
The markets where Coke is a dominant player are United States of America,
Europe and Asia, Africa. There is a vast difference in terms of above given
phases for example, in U.S.A & Europe it has reached maturity stage where it
cant expand its market more but if we consider Asia, it is still in the growth
phase.
Coca-Cola is currently going through the maturity stage in Western countries.
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-Colas 2001 annual report,
sales have increased by 1.02% compared to last year. This percentage has
no comparison to the high level of growth Coca-Cola enjoyed during its
growth stage. To add a little variation Coca-Cola took the Coca-Cola Classic
and added variations to it, including Cherry Coke, Vanilla Coke and Diet Coke.
Also Coca-Cola went from 6-oz. glass bottles to 8-oz. cans to plastic liter
bottles, all helping increase consumption.
2. 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. A quote from Pepsi Cos CEO "The more
successful they are, the sharper we have to be. If the Coca-Cola Company
didnt exist, wed pray for someone to invent them. States it simply. The
relationship between Coca-Cola & Pepsi is a healthy one that each
corporation has learned to appreciate. 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 2003 both coke and Pepsi had a solid presence in India and had
each introduced a 300mL bottle. 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 their200mL container.
Coca- Cola planned to use the lower price point to penetrate new cities that
were especially price sensitive. The carbonated soft drink market in India is
nearly 37% of the total beverage market there.
This low price strategy was not unfamiliar to Coca-Cola. Both Coke & Pepsi
utilized a low price strategy in the early 1990s.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 valuebased pricing and is used by many other industries in attracting consumers.
In India, the average income of a rural worker is Rs.500 a month. Coca Cola
launched a 200 ml bottle for just Rs.5, an affordable amount on the pockets
of the rural audience.
3. 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. Coca Cola has managed their companys marketing
and sales strategy within channels. 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.
The Coke Company operates three primary delivery systems for its
business channels:
Bulk delivery for the channels of large Supermarkets, Mass Merchandisers
and Club stores;
For smaller channels Coke does advanced sale delivery for convenience
stores, drug stores, small supermarkets and on-premise fountain accounts.
Full service delivery for its full service-vending customers.
Key Channel Listing
Supermarkets
Convenience Stores
Fast Food
Petroleum Retailers
Chain Drug Stores
Hotels/Motels/Resorts
Mass Merchandisers
U.S. DOD Military Resale retail commands: AAFES, NAVRESSO and
DECA
Vending
In 2006, the Company began changing its delivery method for its route
delivery system. Historically, the Company loaded its trucks at a warehouse
with products the route delivery employee would deliver. The delivery
employee was responsible for pulling the required products off a side load
truck at each customer location to fill the customers order. Coke began using
a new Coo Lift delivery system in 2006 in a portion of the Companys
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4.PROMOTION STRATEGIES
They gets or purchase shelves in big departmental stores and display their
products in that shelves in that style which show their product more clear and
more attractive for the consumers.
Eye Catching Position- Salesman of the coca cola company positions their
freezers and their products in eye-catching positions. Normally they keep
their freezers near the entrance of the stores.
Sale Promotion- Company also do sponsorships with different college and
schools cafes and sponsors their sports events and other extra curriculum
activities for getting market share.
UTC Scheme- UTC mean under the crown scheme, coca cola often do this
type of scheme and they offer very handy prizes in it. Like once they offer
bicycles, caps, TV sets, cash prizes etc. This scheme is very much popular
among children.
DISTRIBUTION CHANNELS
Coca Cola Company makes two types of selling -
Direct Selling- In direct selling they supply their products in shops by using
their own transports. They have almost 450 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.
Because it is very difficult for them to cover all area of Pakistan by their own
so they have so many whole sellers and agencies to assure their customers
for availability of coca cola products.
FACILITATING THE PRODUCT BY INFRASTRUCTURE -For providing their
product in good manner company has provided infrastructure these includes:
Vizi cooler Freezers Display racks Free empty bottles and shells for
bottles
ADVERTISEMENT- Coca Cola Company use different mediums
Print media Pos material Tv commercial Billboards and holdings
Print Media- They often use print media for advertisement. They have a
separate department for print media.
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POS Material- Pos material mean point of sale material this includes: posters
and stickers display in the stores and in different areas.
TV Commercials- As everybody know that TV is a most common entertaining
mediums o TV commercials is one of the most attractive way of doing
advertisement. So Coca Cola Company does regular TV commercials on
different channels.
Billboards and Holdings- Coca cola is very much conscious about their
billboards and holdings. They have so many sites in different locations for
their billboards
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GLOBAL
MARKETING
No study of business success in the twentieth century would be complete
without mentioning Coca-Cola. Coca-Cola is the product, which perhaps best
exemplifies global marketing. The
Coca-Cola trademark is recognized
by 94 per cent of the earth's
population and Coca-Cola is the
second most universally understood
phrase after OK. It is not only
instantly recognizable but it can be
found almost anywhere from petrol
stations and shops in Central Africa,
to small villages in mountainous
areas on all five continents.
Dr. John Styth Pemberton in a threelegged brass pot in his backyard
developed the first Coca-Cola. If you look at the first outdoor advertisement
for Coca-Cola, which appeared in the nineteenth century, you can see that
the company is based on a core strength, which has an enduring quality.
Coca-Cola is 'delicious and refreshing'. This theme has been a key feature of
advertising for the drink ever since and more recently the message was that
'Coke is the real thing' i.e. anything else which purports to be similar, is at
best, simply a pale imitation.
10
most
inspiring
marketing
campaigns
from
Coca-Cola
1.The Coca-Cola Happiness Machine
This simple idea managed to attract a
huge amount of online buzz for CocaCola.
The Happiness Machines are classic
Coke vending machines that dish out
treats including drinks, pizza, flowers and sandwiches.
While some give away the freebies to all-comers, others require a specific
action to earn a reward. For example, one in Singapore required a hug
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3. Super Bowl
In 2012, Coca-Colas Super Bowl ad campaign involved two polar bears that
reacted to events on the field in real time.
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4. Coke Zone
Coke Zone is a rewards program launched in 2008, setup with the aim of
capturing customer insights, encouraging customer engagement and helping
with global CRM efforts.
Coca-Cola raised awareness of the platform with a series of TV and billboard
ads that encouraged young people to sign up. On-pack codes linked to a
rewards website, where points could be redeemed for items such as two-forone Blockbuster film rentals, Coca-Cola branded items, or used to enter
competitions to win bigger
prizes. The key to the
campaign was an email and
SMS program that delivered
personalized
offers
and
rewards.
The
marketing
messages were triggered by
events such as birthdays,
reactivations and referrals,
which supplemented the monthly e-newsletter.
The results were very impressive:
The email newsletter receives above industry-average open and click through
rates (29% and 6% respectively) with loyalty communication offers rising
to an open rate of 49% and a click through rate of 71%.
17
From November to December 2008 the Coke Zone site achieved the highest
unique monthly visitor numbers of any grocery brand website.
Monthly site statistics show that dwell time averages nine minutes,
And prize draw entries total 116,497.The site has since been
Redesigned and now feeds into Coca-Colas other social activities.
5. Share A Coke
It goes without saying that Share A Coke is one of Coca-Colas most
noteworthy digital campaigns. Its such a simple idea, yet the response has
been amazing and its now a global campaign that has been running for
around two years. The campaign was originally trialed back in 2011, resulting
in a 7% increase in sales. It also earned a total of more than 18 million
media impressions, and
traffic on the Coke
Facebook site increased
by 870%, with page likes
growing by 39%.
The
campaign
gives
people the chance to
order personalized Coke
bottles
through
a
Facebook app, while in some countries the labeling has been changed
altogether so all coke products have different names on them. Its been a
massive success on social networks as it turns out that people love to share
images of Coke bottles with their name on the side.
18
94 tweets per day, twice as many as in 2010, with a total of 864 tweets
displayed.
Overall there were 6,278 total webcam views, which isnt really a startling
amount, but its still quite a neat campaign.
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Coca-Cola Conclusion
It was observed that Coca-Cola has been perceived quite positively as it
has been projected. People are aware of the Brand & Awareness of CocaCola is quite high in the market. When a product is launched, Coke drinkers
choose this soda over any other competitor simply because its a Coca-Cola
product and they trust it.
Although Coke has been into controversies, people still prefer to stay loyal
to the Brand with Coca-Cola being termed as a more popular brand than
Pepsi.
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. 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.
21
So.
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