Business Strategies of Coca-Cola Company: An In-Depth Analysis

This report provides an analysis of the business strategies employed by the Coca-Cola Company. It begins with an introduction to business strategy and its importance in achieving company goals. The report then delves into Coca-Cola's past strategies, including its market-tested formula, unique logo, and focus on maintaining high standards. It also examines the Ansoff matrix and the franchise model. The report then moves on to Coca-Cola's current strategies, such as market segmentation, customer relationship management, financial and process efficiency, business model development, market development, and product development. The report concludes with a discussion of Coca-Cola's future strategies, which include digitizing customer interactions, expanding its portfolio, and meeting evolving customer needs. The report highlights how Coca-Cola has adapted to changes in the global beverage industry, including health trends and demographic shifts, and how it has positioned itself for future success through innovation and strategic marketing. The report also uses the resources available on Desklib to support its findings.

Business strategies of coca-cola company

Table of Contents
INTRODUCTION...........................................................................................................................1
Business Strategies of Coca-Cola Company..............................................................................1
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Business strategy is an idea and method of achieving goals, increasing profits and
productivity of the company. Coca-Cola is carbonated soft drinks that is manufactured by the
Coca-Cola Company. These products are sold in more than 200 countries. This study will
include and show about the market strategies of Coca- Cola Company (Armstrong and et.al.
2015). It uses the most efficient past and current strategies that make it successful and able to
meet all the determined goals and increase sales and profits of the company.
Business Strategies of Coca-Cola Company
Business strategy is defined as a plan that every type of company use in order to reach its
determined goals and objectives. Business strategy is an important tool of the company that
supports in setting goals for long-term growth and development.(Jones and Comfort, 2018)
Past strategy
There are several strategies which Coca-Cola used that have made it recognisable in the
competitive market.
Market tested formula : Atlanta passed some laws that include prohibition law which
forced beverage manufacturers to manufacture and produce non-alcoholic drinks in 1886. By the
end of the year Pemberton, inventor of the company had a recipe that was unique and according
to tastes of the customers. He made some adjustments and changes but the recipe has not
changed. This decision of not changing the recipe supported the company's scale (Bragg and
et.al. 2018).
Unique Logo: Pemberton decided to make it Logo in the Spenserian script in order to
make it differ or differentiate from its competitors. In 1923, it had standardised its Logo. This
strategy also made it successful and more than 100 years to become imprinted in the minds of
people.
Maintained high standard: The Company focuses on maintaining the higher standard
of excellence. It had used the strategy as it decided to serve its drink up to 36 degree Fahrenheit
and told all the retailers and salesmen that it should not be served above 40 degrees. This
standard and strategy was an example in order to establish its products as a premium product
that can help them more attention of its customers than its competitors.
Ansoff model: It is also a past strategy which Coca-Coal uses as it provides the
framework that helped senior manager and executive for future growth. This model has main
strategies like market penetration, market development, product development and
diversification. In market penetration the company had tried to use its existing products in
existing markets.
In market development strategy the company tried to expand its business on the basis of
segmentation like geographic and countries. In product development strategy the company tried
top create and created new products and services in order to achieve growth. In diversification
strategy the firm tried to grow its market shares by offering new [products into new markets
(Coca-Cola n Ansoff matrix strategy, 2015).
Franchise model: Coca-Cola adopted a franchise model with bottlers that helped their
brand to truly take off. Now there are about 250 bottlers around the world. This model and
pattern supported in sales of its new products, new equipment and new communications.
1

In the recent and current years this soda industry is increasing competition rapidly and
apart from that people are becoming health conscious, these changes including health trends are
now affecting the industry. Coca-Cola is now more focuses on product innovation and
marketing. From last few years it has brought some new products in the market for the
customers. The Company is selling in 200 countries because it uses and invests on distribution
channels and global supply chain (Clapp and Scrinis, 2017).
There are some external factors that are affecting the global beverages' industry. In spite
of changes in lifestyle of people and health trends, there are some demographic changes that are
now majorly affecting the soda industry. Due to health consciousness, people are now selecting
healthier drinks. From the latest report it has been showed that American consumers have spent
2 billion dollars more on non-alcoholic drinks. Coca-Cola and Pepsi are focusing on design and
product innovation and are bringing new products in order to faster growth of the company.
Current strategy:
There are some current strategies of Coca-Cola Company that helps them in achieving its
goals that are as follows:
Market segmentation: Market segmentation refers the division of market based on
buying capacity of customers, volume. It divides the market and focus on using the best
appropriate methods in order to maximize sales and earn profit from each segment. It is the best
strategy of Coca-Cola to segment the markets on the basis of emerging markets, developed
markets and developing markets. The primary focus and aim was of Coca-Cola company in
emerging markets, is to increase the sales volume rather than increasing profits that are helping
in making a strong foundation for future business. It can be possible only by selling beverages at
economical rates. On the other hand in developed company it concentrates on making money
and earns more profit by offering premium packages that include aluminium bottles and glass.
Customer relationship: It is the most important strategy is that company focuses on its
brand establishment because customers tend to trust branded products and spend extra amount
upon it. It has invested more in developing the brand value by improving advertisement. The
main aim of advertisement is to change the mind-set and opinion of people about Coca-Cola. The
objective brand establishment is to bring all the products and sub products under one brand
name (Gillespie and Riddle, 2015).
Financial efficiency: It is the common strategy and goal of any type of company is to
gain maximum return for their investments. For achieving these goals, financial efficiency and
stability play a vital role. By implementing a zero based work solution, Coca-Cola has achieved
financial flexibility. It also focuses on savings by cutting down expenses in non-media
marketing that include mouth promotion and in-store promotion.
Process efficiency: Any type of organisation can be efficient when it reduces process
time without affecting product's quality. The main aim of efficient planning and strategy is to
increase the supply of demands. On the other hand, the inefficiency of product planning, lead
disruption in high demands of products. Coca-Cola has reshaped its business processes and
strategy in order to increase sales by proving good and higher quality of products. These
changes and investigation helps in removing the barriers and make it faster and smarter process.
With the help of efficient process and strategy, employees get motivated towards innovation,
learning and growth of the company.
Business model: Business model also play an important role so the company has
developed its business model that include more than 500 brands. It is focusing on gathering
many types and variety of customers in order to generate maximum profits by all the market
2

segments. It is acquiring a number of bottlers under its own with the aim of improving and
maintaining performance of bottling partners by increasing sales and productivity and
distribution system.
Market development: The strategy of market development includes finding the new
group of potential customers for its existing as well as new products and services. Coca-Cola
knows that customers do not looking for buying products but they focus and buy benefits. The
important example of this strategy is coke zero that was launched in 2005. The main speciality
and characteristic of this product was it has zero sugar and low calories with the great taste of
Coca-Cola.
Product development: This strategy of Coca-Cola includes and emphasises on
developing its new products for existing segment markets. The main aim of this strategy is to
analyse and know that how its new products meet the needs and demands of customers more
closely in order to being in a competition.
The example of this strategy and product development is Cherry coke that has launched in 1985.
After the success of this product it has launched other products which have different flavours
like lemon, lime and vanilla (Jones and Comfort, 2018).
Market penetration: Market penetration strategy includes and focuses on increasing
market shares within existing industry. It can be done by increasing in sells of the products to
established and existing customers or by searching about new potential customers within these
markets. It has strengths as strong brand so it makes them able to utilise market penetration. It
has also adapted the best promotion element of the marketing mix.(in the past )
3

Future strategy: Future strategy of Coca-Cola Company will focus on con venience, choice
and customer.
Digitize company's customers: It is the main future strategy in which company will focus on
searching new and the best way to create powerful tools for its customer’s outlets because it has
maintained relationship with customers around the world. It will expand its portfolio in India.
For expanding and growing in various countries it will provides its drinks at affordable
rate. It will use digital and social media platform for gaining and attracting more targeted people
towards its products and services.
Customer's needs: It is an important future strategy of the company to meet and identify
customer’s needs. With the help of digital marketing and advertising it can reach with many
customers (MAANI HESSARI and et.al. 2019). It will concentrate on satisfying all the needs
and demands of the customers by providing them healthy juice as many people are becoming
health conscious. For achieving success in future it will uses the best strategies which will be
beneficial for customers as well as manager and owner of the company.
CONCLUSION
From the above study it has been concluded that market or business strategies played an
important role in the success of the company. Past strategy of the company made it able in
growing its business. Current strategy also made it able in increasing sales and productivity of
the company that includes market penetration, product development and market development by
focusing on the market segments and launching innovative new products on the basis of health
trends.
4

REFERENCES
Books and journals
Armstrong, G. and et.al. 2015. Marketing: an introduction.
Bragg, M.A. and et.al. 2018. Marketing food and beverages to youth through sports. Journal of
Adolescent Health. 62(1). pp.5-13.
Clapp, J. and Scrinis, G., 2017. Big food, nutritionist, and corporate power. Globalizations.
14(4). pp.578-595.
Gillespie, K. and Riddle, L., 2015. Global marketing . Routledge.
Jones, P. and Comfort, D., 2018. The Coca Cola Brand and Sustainability. Indonesian Journal of
Applied Business and Economic Research. 1(1). pp.34-46.
MAANI HESSARI, N.A.S.O.N. and et.al., 2019. Public Meets Private: Conversations between
Coca‐Cola and the CDC. The Milbank Quarterly .
ONLINE
Coca-Cola n Ansoff matrix strategy. 2015. [Online]. Available
through:<https://themarketingagenda.com/2015/03/28/coca-cola-ansoff-matrix/>[ Accessed on
10/03/2019]
5