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MARKETING FOR CUSTOMER VALUE

CASE STUDY
TOPIC – COCA COLA

SUBMITTED BY
SHIVARAJ K
DR. JOHN PEMBERTON
ATLANTA , GEORGIA , US
INTRODUCTION
Type : Beverage company
Founder : DR John Pemberton
Founded : May 18th, 1886
Head quarter : Atlanta, Georgia, US
Employees : 129200
Revenue income : US $ 45.93 Billions
Operating Income : US $ 12.16 Billions
Current value : US $ 68 billions
Served per day : 1.8 billions bottles
Geographical area served : world wide (400 brands) (200 countries)
ORIGIN OF COCA COLA

Dr. John pemberton, a local pharmacist produced the


syrup for coca-cola. He is best known for the inventor of
coca cola.
Corbonated water is teamed with new syrup to
produce a drink that was at once “Delicious and
refreshing”. A theme that continues to echo today
wherever the coca cola is enjoyed.
HISTORY
• In 1885 logo first created.
• In 1886 coca cola was invented.
• In 1891 coca cola first bottle occurred.
• In 1899 the first bottling agreement was done.
• In 1909 coca cola plants bottling were operating.
• In 1930 santa claus is promoted in ads for the first time.
• In 1930 the company started moving globally.
• In 1950 first coca cola TV ads created.
• In 1971 “I’d like to buy the world a coke” campaign.
KEY INFORMATION
• Total 3500 products
• Coca cola with an annual marketing budget of nearly $3
billions and annual sales exceeding $30 billions.
• Coca cola is such a global phenomenon that its name is the
second most understood word in world
• It worlds most valuable brand 2011
• Coca cola join hands in a mission to prevent transmission of
HIV from mother to child.
• Coca cola is the first soft drink to enter the space.
• 1985 the worst product launch ever coca cola introduced new
coke the name is A SWEETER CONCOCTION
2020 VISION STARTS A NEW CHAPTER

Coke will achieve the following by the year 2020


• PROFIT : Double revenue and increase system margins.
• PEOPLE : Become one of the world’s premier employees.
• PARTNER : Be the most preferred and trusted business partner.
• PLANET : Attain corporate global leadership in corporate
sustainability.
• PRODUCTIVITY : Manage people, time and money for the
greatest effectiveness.
MISSION

• To refresh the world in mind. Body and spirit.


• To inspire moments of optimism and happiness through our
brands and actions.
• To create value and make a difference.
COCA COLA IN INDIA
• Coca cola, the corporate nourishing global community with the
worlds largest selling soft drink concentrates since 1886, return to
india in 1993.
• With the acquisition of major brands in india it went on to be
known as the HINDUSTHAN COCA COLA BEVERAGES PVT LTD
• In this company is a 100% company owned bottler , the company
has 3 business regions , and operates out of 22 locations across
india. Their business model includes manufacturing the beverages.
SPONSORSHIPS
SOFT DRINK MARKET SHARES

• COCA COLA - 42% Column1

• PEPSI - 30%
• DR. PEPPER SNAPPLE – 15%
• OTHER - 10%
• COTT CORPORATION – 3%

Coca cola Pepsi Dr. pepper snapple others Cott corporation


SOCIAL PLATFORMS
COMPETITORS
MARKETING MIX 4 P
Products _ 3500 varieties
Price _ Earlier coke used “cost based pricing” as competition
started, now coke has shifted into “competitive pricing stratergy”
Place _ Target market entire planet
Promotion _ print media, TV commercials, bill boards and holdings etc,
getting shelves at eye catching position.
Segmentation _ coke’s commercial basically based on young generations.
CONT...
• Better communication with employees in local languages and
posted in accessible place.
• Provide better working environment within the organisations.
• Safe workplace with policies and practice in place.
• Employ labour under legal working age and protection from
abuse or harassment
• Compensate fair wages and benefits to employees.
• The company expects suppliers to conduct business in a way
that protect and preserve the environment.
BUSINESS RISKS
•Being the top brand, coca cola will always face a tough competition
from its competitors like pepsi, mountain dew, dry pepper etc.
•Due to the production of any many products, consumer cannot
differentaite between two products.
•Taking care of their loyalty by ensuring that even after concentrating on
more than one demographic doesnt decrease their quality and integrity
of the original products.
CHALLENGES
Coca cola was a company that was rapidly growing. They patended
the name “coca cola” but other companies made the same taste as
coca cola, but changed the name. as in, tab coca, rc cola, happy
cola, koca cola, and many more. There were hundreds of other
companies trying to steal their business. Coca cola tried to solve this
problem by making a patented bottle with the words coca cola
printed into glass bottle. It , of course, did not work, so they just had
to deal with it. Eventually , the “fake” cokes started to lose business.
RESEARCH METHODS
PRIMARY RESEARCH
• We conducted an extensive survey with more than 1200 response of 13-24 year olds across
the U.S to gauge the role of coca cola in the targets lifestyle and to collect demographical
information.
• We held one-on-one interviews with 20 members of the target market for a more in depth,
personal look at coca cola’s role in the target’s life and their daily media usage.
We conducted three focus groups consisting of members of our target market, asking questions
about their soda drinking habits, components of their purchase decisions and perceptions of
coca cola and pepsi.
SECONDARY RESEARCH
For information on the CSD industry, the coca cola company and the target market, research
was taken from;
• Online database
• Books(for god , country, and coca cola :the definitive history of the great American soft drink
and the company that makes it-mark pendergrast)
KEY FACTORS MADE COCA COLA SUCCESFUL
• It started with a unique, market tested formula.
• It was distributed in a proprietary bottle.
• It kept its consumer price fixed for 70 years.
• Successful marketing campaigns remainds advertisings four colour
coca cola ads in magazines are intended to remind people to purchase
coca cola.
• In second world war it declared that “every man in uniform gets a
bottle of coca cola for 5 cents, whenever he is, and whatever it costs .
• Translate well into different countries along which and cultures cokes
advertising over the years.
SWOT ANALYSIS
STRENGTH WEAKNESS
1. Largest market shares 1. High focus on carbonated drink
2. Strong marketing strategies 2. Competition with pepsi
3. Customer loyalty 3. Product diversification is low
4. Distribution network 4. Negative publicity
5. Successful past advertising 5. Water management
6. Consistent product 6. Absence in health beverages
7. Easily accessible products
SWOT ANALYSIS
OPPORTUNITY THREATS
1. Targeting developing nations 1. Raw material sourcing
2. Bottled drinking water 2. Indirect competitors
3. Diversification 3. Water scarcity
4. Supply chain improvement 4. Changes in consumer preference
5. Marketing the lesser selling products 5. Increasing immitators
6. Demand for healthy food and
beverages