STRATEGIC MANAGEMENT – COCA COLA CASE STUDY

I. Issue 1

Marketing management has always played an important role of the successful business
establishments. Whether the value of a firm is durable or not, marketing management, can
say, a key to the success of an enterprise. Beverages industry now forms a major part of total
sales, both domestic and international, worldwide. Let’s take a view at one of the companies
having such successful application of marketing strategy: Coca Cola which is one of the most
leading companies in soft drink beverage industry. (Mayureshnikam, 2018).

Coca Cola was established in 1886 by Dr. John S. Pemberton, an Atlanta pharmacist,
when he tried to create distinctive syrup which can be sold at soda fountains.
(Mayureshnikam, 2018). During the time, Coca Cola has created more than 400 brands of
beverage that go along with its mission and vision. The mission of Coca – Cola is to refresh
the world, to inspire moments of optimism and to create value and make a difference
everywhere they engage. Coca Cola has set the goals to achieve this mission through values
of: profit, people, portfolio, partners, planet and productivity. (The Coca Cola Company:
Mission, Vision and Values). Coca Cola’s orientation is clear, they focus on producing
refreshing and thirst quenching products. However, different products are produced basing
on different criteria. For example, diet cola is produced to serve people who are health
conscious, while Limca target young working population in India.

II. Issue 2:

The 5C’s analysis is important to help Coca Cola optimize the use of the marketing
resources in order to build as well as maintain a sustainable competitive advantage.

 Firstly, company factor.

The Coca Cola has equipped it with many characteristics belonging to the company.
About strengths, Coca Cola has a very strong and global brand it allows Coca Cola to go for
brand extension as well as creating and launching new types of beverages. Besides, long
history has helped Coca Cola to gain not only the fame but also trust among customers.
Additionally, operating in more than 200 countries around the world with nearly 400 brands
allows Coca Cola to be easily recognized and be the popular brand as well as being chosen
by thousand customers from all over the world.

However, expanding into several countries has lead Coca Cola to the situation of not
focusing on developing every branch effectively. Therefore, sales in some key markets have
dropped then preventing Coca Cola from getting higher growth overall. The health issue is
also a weakness of Coca Cola. Its products are known as containing high calories which is
harmful for health.

Coca Cola is facing with certain opportunities as well as threats. Its opportunities are
about the innovation and differentiate the company’s products, product diversification and

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STRATEGIC MANAGEMENT – COCA COLA CASE STUDY

customer relation. Its threats are about changing trend of healthy eating, drinking, strong
competitors and substitute products.

 Secondly, customer factor.

Coca Cola is currently focusing on younger people in the range of age from 13 - 24
together with people in secondary market. Strong flavor and health conscious are typical
behaviors of the customers that Coca Cola is focusing on.

 Thirdly, collaborator factor.

Coca Cola has a whole supply chain and bottling systems which is known as the big
strength of the company.

 Fourthly, competitor factor

The main competitor of Coca Cola at this moment is Pepsico.

 Fifthly, context factor

Coca Cola has to face with political and regulatory framework is totally different among
countries. Besides, foreign exchange exposure, inflation, diversification and employment are
also context factors that could impact on Coca Cola’s strategies.

III. Issue 3

If a company plans to grow and progress, it’s essential to analyze and understand their
current situation to formulate and determine target market. (Walter White, 2019).

Currently, Coca Cola uses social media as the greatest tool for marketing. Through social
media, Coca Cola can attract and interact with their customers. They could know the react of
customers through updates about future ads and brands. The key to its successful advertising
is to advertise an emotion, feeling or state of mind rather than just a product. (Printsome,
2019).

At the moment, Pepsi is the biggest competitor of Coca Cola. Then let’s take a look at its
pricing strategy. Coca Cola has strictly updated their pricing strategy. If its products are more
expensive than the rival, consumers may swift to use its rival’s products as they always prefer
cheaper products.

The whole supply chain and bottling systems have played important roles in the process.
The bottling rights were sold to different local entrepreneurs (Aashish Pahwa, 2019). Without
the collaborators, products won’t be distributed to customers.

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STRATEGIC MANAGEMENT – COCA COLA CASE STUDY

IV. Issue 4

A global company, if they want to get success, culture is one of the problems that they
must deal with. Coca Cola has done it well, it understands people from different culture then
using its innovation to mix different cultures and flavors together to make new product.

The target market for Coca cola is very wide as it satisfies the needs for many different
consumers. The young person between the age of 13 and 24 is the primary mark market for
Coca Cola.

The primary mark market for Coca-Cola is multicultural young person of age 13-24, which
frequently known as heavy soft drink ingestion group. This consumer group is older
sufficiency to do self - determination on purchases and most likely to follow the merchandise
as value of Coca-Cola emphasis cool and felicity which compatible with their life style
(WordPress, 2017).

V. Issue 5

Detailed marketing mix of Coca Cola to support the marketing strategy.

- Product: Coca cola has wide range of products. Therefore, Coca Cola product strategy
is about understanding every product as well as studying on various packing and sizes.
- Price: Reasonable price is what Coca Cola’s products are aiming at. Not only helping
customers can afford to buy its products but also fighting against its competitors.
- Place: The whole supply chain and bottling systems (franchise model) all over the
world help highlight the place strategy of Coca Cola.
- Promotion: sponsoring. This is a great way to advertise Coca Cola to customers. Coca
Cola has been sponsored for events like Olympic Games, FIFA World Cup, etc…

VI. References:

Mayureshnikam, Vishal V.Patil. (2018). Marketing Strategy of Coca Cola, Journal of Business
and Management (IOSR – JBM), 77 – 85.

Shanthiny Kanesan, Nurfantin AfiqahBinti Ismail, Komathy Krishnan. (2018). Identifying

Market Segments And Targets for Marketing Strategy Plan Of Coca Cola Company In
Malaysia, 7 (4), 77 – 80.

Walter White. (2019). Coca Cola Marketing Strategy: Recipe for Success.

<http://inevitablesteps.com/marketing/coca-cola-marketing-strategy/>

WordPress. (2017). A Marketing Analysis of Coca Cola in Malaysia Marketing Essay.

The Coca Cola Company: Mission, Vision and Values.

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STRATEGIC MANAGEMENT – COCA COLA CASE STUDY

<https://www.coca-colacompany.com/our-company/mission-vision-values>

The Coca Cola Company 5C Analysis – Marketing.

<http://blueoceanuniversity.com/frontpage/marketing5canalysis/14561-cola-coca>

Coca Cola India: Know Limca.

<https://www.coca-colaindia.com/brands/know-limca>

Aashish. (2019). Coca Cola Marketing Case Study.

<https://www.feedough.com/coca-cola-marketing-study/>

Printsome. (2019). Coca Cola Marketing. What makes them so good?

https://blog.printsome.com/coca-cola-marketing/

Coca Cola Marketing Mix (4Ps) Strategy.

https://www.mbaskool.com/marketing-mix/products/16786-coca-cola.html