Marketing Strategies of Coca Cola Company

This research analyzes the different marketing strategies of Coca Cola company in becoming the world's largest seller of beverages. It discusses the SMART objectives of Coca Cola with different market segmentation and determines the marketing mix of Coca Cola.

Marketing
Planning

Table of Contents
Marketing Planning..........................................................................................................................1
Introduction......................................................................................................................................1
1. SMART objectives of coca cola with different market segmentation....................................1
2. Determine marketing mix of coca cola...................................................................................3
Conclusions......................................................................................................................................5
References........................................................................................................................................6
Books and journals......................................................................................................................6

Introduction
The aim of research is to analyze the different marketing strategies of coca cola company
in becoming the world largest seller of beverages. Coca cola company is established from about
last 130 years and has grabbed the largest market area by providing them number of soft drinks
such as sprite, coca cola, diet coke, coca cola life, coca cola zerto, minute maid, dasani,
powerade, ciel, coca cola light, fresca, del valle, glaceau vitamin water, simply orange, glaceau
smart water, fuze, fuze tea, osewalla, honest tea, poerade zero, mello yello etc. the company has
enhances its packaging which makes product transport more effective by decreasing risks of
damage to the product. The purpose of the study is to improve the marketing strategy and
promotional strategy of coca cola company in order to attract large group of buyers which result
is generating more growth and revenue of the company. However, for promoting its product
globally coca cola is providing advertisements in different languages to different market
segments.
1. SMART objectives of coca cola with different market segmentation.
organisations objectives determines the goals to be achieved by Coca Cola company. For
achieving such goals various strategies and tactics are adopted by by organization in term to
achieve long term success . Decision making is a most important aspect of every organisation.
Main objective of coca cola company is to expand its business globally by providing innovative
products with creative packaging (Moreno-Munoz and et.al., 2016). Moreover, this company
focuses on enhancing sustainable development and growth in present as well as in the future.
SMART objectives of coca cola company are determined in following ways: -
Specific objectives: - Specifically it is determined that coca cola wants to expand its market
globally and has started owning various brands like Fanta, sprite etc. which has reduced its
competition in target market. However, specific objective of this company is to become a leading
beverage brand in the world by generating more and more profits.Measurable: - Coca cola
company aims to maximize long term shareholder return by focusing on overall responsibilities
regarding organisation undertakings. Moreover, by enhancing effectiveness, efficiency and
creativeness in manufacturing process more productivity is generated.Achievable: - Another
objective of coca cola company is to achieve global growth and generates more and more profits.
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However, coca cola company has overtaken his competitive firms to decrease market
competition and to become a leading beverage sector globally (Rahman, 2016).Realistic: - In
order to achieve all those objective coca cola company has adopted the latest technologies to
enhance production in creative manner to attract more consumers and develops the tastes of
targeted buyers.Timed: - Coca cola aims at expanding its business globally and aims that by the
end of 2017 their aim is to accelerate complete re franchising of its new bottling partner in North
America.
Targeted market segmentations of coca cola: -
coca cola company is the world’s leading beverage company and aims at developing its business
by following some marketing mix strategies in various segments such as: -
Geographic segmentation: - It has targeted different genders, ethnic groups, age groups,
lifestyles etc. We all well aware of the fact that coca cola is a most popular soft drink all over the
world (Dekhil and et.al., 2017). Moreover, this company has introduced diet coca cola product to
maintain healthy lifestyle of targeted consumers. Likewise, it has developed minute maid drinks,
powerade drinks in respect of different age groups.
Demographic segmentation: - This market segmentation is divided on bass of age, sex and
income. The company is manufacturing returnable glass bottles for low income group whereas
for high income groups drinks are offered in cans.
Psycho graphic segmentation: - Under such markets coca cola creates a brand value. People
who tends to behave conscious about brands are more diverted towards coca cola beverages. On
the other hand, company also focuses on education level of target consumers, those who are
highly educated are provided with various advertisements to provide awareness about health and
hygiene factors of coca cola and makes them loyal towards that brand.
Market positioning of coca cola company:
coca cola sells its products in about 200 countries and still focuses on expanding its market
globally by enhancing the quality of beverages. Strategically it has positioned itself among
world’s leading market of soft drinks (Rundle-Thiele, Dietrich and Kubacki, 2017). This
company is willing to expand its product with same core name COKE to create strategic position
all over the world with same image of brand. Coca cola has become a part of consumers’ daily
life. The brand perception is to deal with high loyalty and trust among its targeted consumers.
However, factors that are involved in positioning the product includes- price, promotion,
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packaging, distribution and competition. Price of the product must be decided after determining
the financial status of targeted consumers whereas effective packaging should be provided to the
product which can be easily carried from one place to another and should be preferable. On the
other hand, promotion of the product must be made through television, radios, newspapers,
hoardings etc. which is easily approachable by buyers.
2. Determine marketing mix of coca cola
Consumers tastes and preferences keeps on changing and in order to fulfill the needs and
demands of consumers coca cola company strategically focuses on requirements of consumers
and likewise adopts various technologies to create and innovate products design and quality in
order to attract more and more consumers. However, this company has innovated sugar free
products to target diabetic consumers under different market segments. This is another fruitful
strategy of expanding sales and business globally under every demographic segments
(Steenkamp, 2017). Moreover, to increase the brand loyalty among targeted consumers coca cola
company has fixed its price since last 70 years which is affordable for every consumer to buy it.
Marketing mix of coca cola can be analyzed on the basis of 4 P's such as product, price,
promotion and place.
Product marketing mix: - coca cola manufactures number of products globally such as fanta,
sprite, coca cola, diet coke, coca cola life, coca cola zerto, minute maide, dasani, powerade, ciel,
coca cola light, fresca, del valle, glaceau vitaminwater, simply orange, glaceau smart water, fuze,
fuze tea, osewalla, honest tea, poerade zero, mello yello etc. these products are sold atv
differentiated sizes and packaging to attract more consumers towards it. For example- 200ml,
500ml, 1 liter, 1.5 liter and 2 liters with different packaging like packed in bottles, cans, glasses,
plastic bottles etc. logo and shape of coca cola bottle provides the brand with an exceptional
image, likewise, minute maid product manufactured by this company has occupied a good
growth rate as well as high share in market (Reddy, Reddy and Venkatesulu, 2016).
Price in marketing mix: - 2nd degree price discrimination strategy is followed by the coca cola
company which means different prices is determined according to market segments like- in high
income target market product price is more when compared to low income target market.
However, pepsi is the biggest competitor of coca cola that's why both the companies follow same
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prices of product. If price of coca cola increases than there are more chances of losing target
customers because more of the costumers might get diverted towards Pepsi.
Place in marketing mix: - coca cola beverages has started its company from about 130 years and
distributes its beverages in 200 countries. As there exist a wide network of distribution that's why
company follows secret tactics and transports bottles to various destinations by eliminating risks
of damage (Bako Poulos, Stuart and Briggs, 2016). An extensive distribution channel is
experienced by coca cola and its products are generally available at every outlet which are
convenient for the consumers to buy it (Rahman, 2016). Across 2.5 million outlets are available
for products of coca cola.
Promotion in marketing mix: - this company follows a very effective strategy of promotional
activities to attract more and more consumers. Promotions are made through television, print
media, online ads, sponsorship etc. the company is even engaged with number of sponsors such
as NASCAR, NCAA, BET network, FIFA worldcup, olympic games and many more. Likewise,
TV ads are launched by coca cola company in different languages all over the world. Moreover,
this company has mainly targeted youths of every market segments and focuses on enhancing the
tastes or quality of existing products to create brand loyalty among targeted consumers (Jackson,
and Ahuja, 2016). Distributors of this products are provided with incentives and retailers of this
product are gifted with refrigerators and for advertising the brand hoardings are provided for
every retail outlets. This company is even involved with CSR activities that provides supports to
social issues as well as environmental issues all over the world.
December 31st,2016 December 31st,2015 December 31st,2014
Net operating revenues 48,017 46,542 35119
Costs of goods sold -19,053 -418216 -12693
Gross profit 28,964 28326 22426
Selling, general and
administrative
expenses
-17,738 -17440 -13158
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Other operating
charges
-447 -732 -819
Operating income 10,779 10154 8449
Interest income 471 483 317
Interest expense -397 -417 -733
Equity income
(loss),net
819 690 1025
Other income (loss),
net
137 529 5185
Income before income
taxes
11,809 11439 14243
Income taxes -2,723 -2805 -2384
Consolidate net
income
9,086 8634 11859
Net income attribute to
non controlling
interests
-67 -62 -50
Net income
attributable to share
owner of the coca cola
company
9,019 8572 11809
Conclusions
From the above research regarding marketing strategy that has been followed by coca cola
company showcase that this company is highly focusing on providing the best quality innovative
products to its potential consumers. Marketing strategy followed by this company is based on
4Ps such as product, price, promotion and place. Coca cola company is promoting its sales of
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products by following different promotional strategies in every market segments of coca cola
products. This company should adopt new marketing techniques and should improves its
packaging by providing all information related to the product which is being consumed by
consumers. However, proper product information creates awareness among buyers and increases
their morale towards the product they are consuming.
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References
Books and journals
Moreno-Munoz, A. and et.al., 2016. Mobile social media for smart grids customer engagement:
Emerging trends and challenges. Renewable and Sustainable Energy Reviews. 53.
pp.1611-1616.
Rahman, K. M., 2016. Strategic Planning and Marketing Models. In Strategic Marketing
Management in Asia: Case Studies and Lessons across Industries (pp. 59-110). Emerald
Group Publishing Limited.
Dekhil, F. and et.al., 2017. Effect of religiosity on the decision to participate in a boycott: The
moderating effect of brand loyalty–the case of Coca-Cola. Journal of Islamic
Marketing.8(2). pp.309-328.
Rundle-Thiele, S., Dietrich, T. and Kubacki, K., 2017. Why We Need Segmentation When
Designing Social Marketing Programs. In Segmentation in Social Marketing (pp. 197-
214). Springer Singapore.
Steenkamp, J. B., 2017. The Cambrian Explosion of Brands. In Global Brand Strategy (pp. 1-
13). Palgrave Macmillan UK.
Reddy, S. K., Reddy, U. M. and Venkatesulu, K., 2016. Brand revitalization.International
journal of science technology and management. 5(1). pp.321-326.
Bakopoulos, V., Stuart, G. and Briggs, R., 2016. Measuring the value of mobile advertising in
driving business outcomes: Empirical data from Coca-Cola, AT&T, MasterCard and
Walmart. Applied Marketing Analytics.2(2). pp.169-179.
Jackson, G. and Ahuja, V., 2016. Dawn of the digital age and the evolution of the marketing mix.
Journal of Direct, Data and Digital Marketing Practice. 17(3). pp.170-186.
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