Consumer Behavior and Marketing Psychology for Coca-Cola

Running head: CONSUMER BEHAVIOR AND MARKETING PSYCHOLOGY
Consumer Behavior and Marketing Psychology
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1CONSUMER BEHAVIOR AND MARKETING PSYCHOLOGY
Table of Contents
Executive Summary.........................................................................................................................2
Introduction......................................................................................................................................3
Coca-cola Overview........................................................................................................................3
Critical Analysis..............................................................................................................................4
Strategic Recommendations............................................................................................................7
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

2CONSUMER BEHAVIOR AND MARKETING PSYCHOLOGY
Executive Summary
Coca-Cola is one of the most famous FMCG products in the world. Along with that, Coca-Cola
is one of the oldest and largest corporations in the USA. Currently, it has its distribution network
in more than 200 countries and production units in more than 30 countries. This report highlights
the overview of the company and critical analysis of its marketing strategies and marketing mix
for Coca-Cola and lastly, provides strategic recommendations for making further improvements
in its business. This report is based on the previous assessments of Coca-Cola as an FMCG
product and a survey to obtain the information on consumer behavior regarding the consumption
of the product. From the analysis of the consumption pattern and perception on Coca-Cola, it has
been found that, people mostly consider it as a refreshment drink and everyone in the most
families consume it during celebrations or on a regular basis. Taste and happy memories are
major determinants for influencing their purchasing decision. However, it was also found that
many survey participants also voted for substitute products due to price, quality and nutrition
factor. This report provides recommendations to Coca-Cola to incorporate the nutritional aspects
in their commercials to stimulate the rational action of the consumers. It is also suggested that
Coca-Cola must stimulate the impulsive purchasing decision of the customers also to increase its
market size. Lastly, it is suggested that the traditional Marshallian economics should be followed
in its marketing strategy and the company should offer sudden offers of lower price for a limited
period to attract the consumers of substitutes. Once they start purchasing coke at a lower price,
the company should implement ways to retain them.

3CONSUMER BEHAVIOR AND MARKETING PSYCHOLOGY
Introduction
This report provides an outline of Coca-Cola’s marketing strategy, marketing
communication mix and the impact of consumer behavior on the current marketing focus. The
aim of the report is to provide strategic recommendation to the world famous FMCG Company
to align their marketing strategy with the consumer behavior regarding their product. A study on
the consumer behavior regarding Coca-Cola was performed earlier and on the basis of the
findings, the critical evaluation of the product will be done, and recommendations will be
provided. The report commences with an overview of Coca-Cola, followed by critical analysis
of its marketing strategy and marketing mix and ends with strategic recommendations and
conclusion.
Coca-cola Overview
Coca-Cola is an American FMCG company selling varieties of non-alcoholic beverages
under the same umbrella. The coke was invented by pharmacist John Stith Pemberton in Atlanta,
Georgia, in 1886. Thus, the headquarter of the company was established in Atlanta. The
company has expanded its business in more than 200 countries across the world. The company
sells many other beverages but Coca-Cola is the flagship product that falls under the FMCG
category. It is the world’s biggest beverage manufacturer and distributor and one of the biggest
corporations in the USA (Britannica.com 2018).
The mission of Coca-Cola is to provide a product that will bring refreshment, to inspire
memories and moments of happiness and optimism and to create and deliver value to the
consumers, making a difference in their experience (The Coca-Cola Company 2018). Vision of