Marketing Strategy of Coca-Cola Company: An In-Depth Analysis

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MARKETING STRATEGY OF COCA-COLA COMPANY 1
ANALYSIS OF COCA-COLA COMPANY AND ITS OPERATING ENVIRONMENTS
FROM THE MARKETING PERSPECTIVE
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MARKETING STRATEGY OF COCA-COLA COMPANY 2
Table of Contents
Introduction.................................................................................................................................................3
Orientation of Coca-Cola Company towards marketing.........................................................................4
Description of the products the company offers to the market.................................................................4
Role the brand has in Coca-Cola Company’s marketing strategy...........................................................5
5Cs of the Coca-Cola Company..................................................................................................................5
Company.................................................................................................................................................5
Customers................................................................................................................................................6
Collaborators..........................................................................................................................................7
Competitors.............................................................................................................................................7
Context....................................................................................................................................................8
Developing marketing Strategy...................................................................................................................9
Potential market segments available to the Coca-Cola Company...........................................................9
Choice of marketplace target.................................................................................................................10
Value proposition for the target market.................................................................................................10
Positioning statement for the target market...........................................................................................11
Developing marketing Tactics...................................................................................................................11
Marketing mix (4-7Ps) to support the strategies of marketing for Coca-Cola Company...........................12
References.................................................................................................................................................13
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MARKETING STRATEGY OF COCA-COLA COMPANY 3
Introduction
Coca-Cola Company for an extended period continues to be the biggest retailer,
manufacturer, as well as marketer of different soft drinks. Therefore, Coca-Cola Company
belongs to the beverage industry around the marketplaces. Coca-Cola Company remains to be
the non-alcoholic beverage industry as well as one of the producers of the global brand known as
Coke (Gertner & Rifkin 2017). The company's mission focuses on refreshing the world body,
spirit, and mind. It also has the mission of inspiring moments of happiness and optimism through
their brand and actions. Besides, the company works under the mission that aims at creating the
value and making a difference in the world of refreshment. The primary vision of Coca-Cola
Company is to achieve its underlined mission. The company has set the vision of highlighting
and developing set goals that aim at working with their bottlers to deliver. Furthermore, the value
statements that Coca-Cola Company utilizes to communicate its purpose include the shared
values guide of actions that describe how the company behaves in the global society (Koh 2012).
The value statements are the quality leadership that aims at couraging operations of the company
to shape a better future. The slogan of Coca-Cola Company is short, memorable catch phrase and
applies to identify the product or advertisement of the enterprise. Therefore, the advertisement
slogan associated with Coca-Cola Company is “Things go better with Coke,” and another slogan
is the “Live on the Coke side of life.”
Orientation of Coca-Cola Company towards marketing
The marketing orientation of the Coca-Cola Company involves various approaches. The
major marketing orientation for the Coca-Cola Company includes product orientation as well as
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MARKETING STRATEGY OF COCA-COLA COMPANY 4
market orientation. Product orientation remains to be the methods that the company use in
knowing which places they can put their primary focus of attention upon the process of
production and the product (Elmore 2013). Conversely, marketing orientation of Coca-Cola
Company forms the process that continually identifies, reviews, along with analyzing needs of
consumers. Coca-Cola Company has the action direction rather than waiting for change to occur
making it be at the leading edge of driving its operation efforts forward (Yuvaraju et al., 2012).
The orientation of such marketing strategies by the company aims at creating customer value
most efficiently, subject to ethical and other constraints that one might possess. The company
involves the use of delivering customer value. Moreover, the orientation that targets at the
client's value remains to be the central idea behind the marketing of Coca-Cola Company in
creating products of value to one or more loyal and targeted customers.
Description of the products the company offers to the market
COKE Company offers soft drink products around the global marketplace. It remain to be
the world’s leading beverage organization that refreshed consumer with over five hundred
sparking as well as still brands. COKE Company has the lasting selection of different types of
brands in the soft drink business (Gagarin 2012). It features twenty-one brands that presently can
generate more than one billion US dollars in the annual retail sales. Some of the company’s
products comprising of Coca-Cola, Powerade, Fanta, Del Valle, Sprite, Coca-Cola Zero, Georgia
Coffee, Coca-Cola Light, Minute Maid, and Dasani among other products.
Role the brand has in Coca-Cola Company’s marketing strategy
Every brand of the Coca-Cola Company’s plays essential roles in different marketing
strategies of the company. Some of the strategies that the strong portfolio brands play a
significant role are the product strategy, pricing, advertisement distribution, promotion, direct
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MARKETING STRATEGY OF COCA-COLA COMPANY 5
selling, public dealings, and promotion of its sales, individual selling, together with social media
ads to reach many targeted and loyal customers (Schon 2016). The production of non-alcoholic
brands increases distribution of the company’s products because the company tends to target all
kind of people in the society. According to Gabriel (2015), the brands produced by the
corporation uses the mix of similar as well as mass marketing strategies and niche marketing for
certain products to help the company drive its sales in the competitive marketplace. The strong
brand portfolio of Coca-Cola Company offers the powerful feelings to its customers.
5Cs of the Coca-Cola Company
Company
The company has several strengths that allow it to operate in the competitive
marketplace. Some of the strengths of the compnany are the unusual approach that its workers
can handle sales activities with high skills and knowledge of current products. The critical
resources that make the operations of the company to be successful include the strong brand
equity as well as the massive network of distributing its products to cater for the huge demand
from consumers in the worldwide markets (Sundar 2012). The company also has the best
working relations with its loyal and targeted customers together with the active system of
communication during its internal communication. The company has the strength that allows its
operators to adopt the use of ever-changing modern technology during its production. However,
some of the weakness of Coca-Cola Company consists of research methods are considered
outdated, high prices of the rental working places, along with high costs of inventory and too
much stock in the inventory. The company lack adequate internal infrastructure development
leading to lack of appropriate coordination together with the weak communication channel in
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MARKETING STRATEGY OF COCA-COLA COMPANY 6
global markets (Drozdnik 2013). The company also has a little domestic marketing channel that
focuses on the distribution of its goods and services.
Some of the opportunities that come with the operations of the company include the
presence of loyal customers in the global marketplace. The company also receives massive
demands for their products. The daily rise in world population along with development in global
industrialization forms an ideal opportunity for the company to improve in its sales and
production (Ivanor & Bondaranko 2013). The advancements in global technology and positive
attitudes in the market offer the best chance for the company to gain huge revenues during its
operations. Furthermore, some of the threats that Coca-Cola Company faces include the
improved strategies of advertisement campaigns by their primary competitors like PepsiCo in the
markets (Gupta 2011). Political instabilities and increase in taxation by various authorities in
nations where the company operates continues to be significant threats to business operations of
the company.
Customers
Just like in any other business, customers within the Coca-Cola Company are central to
the approaches of doing business. The customers of Coca-Cola Company consist of kiosks,
hypermarkets, discounters, canteens, petrol stations, supermarkets, hotels, parks for leisure,
restaurants, along with drinking stores among other sectors (Hartogh 2013). The preferences of
every customer are the core value for the business of the Coca-Cola Company. The customers
behave in different manners, and this allows the operators of the company to ensure that they
work as per the client’s relevance and excellence in the markets. The consumer behaviors are
different, and they insist on ensuring that the company can provide them with the products
readily available and affordable to their pockets. Therefore, strategies of marketing by Coca-Cola
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MARKETING STRATEGY OF COCA-COLA COMPANY 7
Company need to focus on the needs of customers (Collier 2014). Other behaviors of clients who
affect operations of the company include frequency of purchases, the quantity of purchases,
needs of loyal and targeted customers, and retail channel depending on trends over time.
Collaborators
The leading suppliers of Coca-Cola Company are its business partners. These partners are
responsible for the provision of its systems with materials such as ingredients, machinery for
packaging, along with goods and services (Oman 2015). The guiding principles for suppliers of
the Coca-Cola Company communicate its values together with expectations while emphasizing
the importance of responsible environmental and practices and policies of the workplace.
Besides, the company has a range of distributors of its products in various regions. Some of the
distributors of COKE’s products comprise of supermarkets, petrol stations, kiosks, canteens,
discounters, hotels, parks for leisure, hypermarkets, restaurants, along with drinking store among
other sectors (Koh 2012). Most distributors of the company’s products are mostly the large
international chain of retailers and small independent business operators.
Competitors
The chief rivals of Coca-Cola Corporation include PepsiCo, Monster Beverage Corp, Dr.
Pepper, Suntory Beverage, and Food Limited, together with Snapple Industry. There is enormous
competition imposed to operations of Coca-Cola Company by PepsiCo as its main rival in the
marketplace (Gagarin 2012). Despite the competition experienced by the company, Coca-Cola
Company remains to be the most popular as well as the most valuable distributor of beverages in
the global marketplace. The competitive factors affect the operations of the company. Some of
the competitive factors that influence the business of Coca-Cola Company include, but not
limited to advertising, pricing of products, sales promotions programs, new vending schemes,
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MARKETING STRATEGY OF COCA-COLA COMPANY 8
increased efficiency in production styles, and the introduction of advanced packaging systems
(Pendergrast 2013). All these main competitors compete with Coca-Cola Company in meeting
the needs of targeted and loyal customers.
Context
Despite the company being the leading in the production of beverage brands, it is not
immune to the various political, legal, economic fluctuations, social, along with technological
impacts. The laws and regulations of food products that come through the political favors have
the direct effects on the operations of the company. The company has to adhere to relevant laws
to do business in the specific market (Schon 2016). Changes in such laws affect profit and
revenue of the Coca-Cola Company. Additionally, economic factors have the significant and
direct impact on the business of Coca-Cola Company. The recent global financial danger has led
to the reduction of the profits earned by the company in conducting its operations. Besides,
technology has a huge factor for the operations of Coca-Cola Company. Production and
distribution activities of the Coca-Cola Company depend mostly on the use of technology
(Hassan & Craft 2015). The efficiency of technology ensures that there are timely production
and efficient supply chain of the goods and services. Technological developments affect the
structure of costs during production while social influence affects demographics and culture of
operations of the company.
Developing marketing Strategy
The guiding principle of Coca-Cola Company is to maximize profit during its operations.
Coca-Cola Company undergoes a substantial business research to understand the strategies for
marketing that they can employ to run the successful business in the given market (Gagarin
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MARKETING STRATEGY OF COCA-COLA COMPANY 9
2012). Some of the marketing strategies include the marketing segmentation product strategy,
price strategy, and price strategy.
Potential market segments available to the Coca-Cola Company
There are various available potential market segments for Coca-Cola Company. These
sections enable the COKE brands to define the products for different types of customers.
Besides, Coca-Cola Company does not target a particular segment but adapts its marketing
strategies by developing more products that are new (Spinosa et al., 2014). The potential market
segment available for this company focuses on the purpose and positioning of the company
operations. The operations of Coca-Cola Company are organizable into six operating groups.
These groups comprise of Europe, Latin America, Asia Pacific, North America, Eurasia, and
Africa, along with bottling investment (Gabriel 2015). All these operating groups rely on the
major segmentation variables such as geographic, behavioral, demographic, and psychographic
segmentation. Marketing segment within the Coca-Cola Company allows the company to market
and improve in its sales programs by focusing on the subset of prospects that increases its
operations.
Choice of marketplace target
COKE Company has no precise target marketplace, but it adapts its marketing strategies
by developing more products that are new. Most of the target market of the company focuses
towards youthful individuals, but several promotions are tailorable for aged persons (Sundar
2012). Therefore, the organization has put specific limits in the process of targeting marketing.
Coca-Cola Company does not target a particular segment but adapts its marketing strategies by
developing more products that are new aims tyrically persons of 12 years of age. From the
company’s statement regarding sales aim at promoting responsible strategies of marketing by
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MARKETING STRATEGY OF COCA-COLA COMPANY 10
shunnning wide promotion to children as well as revealing nutritional details of everyyield of
COKE to caretakers of children (Bingol et al., 2013). Additionally, the target market for Coca-
Cola Company includes lifestyle, occupation, age, and customer’s media habits.
Value proposition for the target market
Value proportion of the target market by Coca-Cola Company focuses on the choice of a
broad positioning, value, developing the value portion, and selection of a particular positioning,
through value propositioning, Coca-Cola Company focuses on being the best leader in dealing
with soft drinks. The value proposition for the target market for Coca-Cola Company focuses on
segmentation, targeting, and positioning of the company (Vallester 2017). Value proposition aid
the COKE’s brand to define the appropriate products for particular groups of customers. The
company develops value proportion by adapting its marketing strategy in developing new
products and services (Foster 2014). The company also uses competitive positioning strategy to
be much ahead of its competitors in value proposition to overcome other businesses that deal
with non-alcoholic beverages in the marketplace.
Positioning statement for the target market
Coca-Cola Company uses competitive strategies for positioning on the market to be much
in front of its rivals in the soft drink markets. In COKE Company, the company has strategically
placed its operations within the market of soft drinks. The company uses the strategic positioning
to have the identical image all around the global marketplace. The positioning statement allows
the company to form the strong business market scale around global market (Wang 2015). The
perception of production of strong brands by the company makes the consumers to have the
highest degree of loyalty. The created loyalty into products of the company makes the
purchasing decision more automatic (Elmore 2013). Besides, operations of the company have
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MARKETING STRATEGY OF COCA-COLA COMPANY 11
been successful by using exclusive techniques of selling proposition like the slogans of the
company.
Developing marketing Tactics
Coca-Cola Company remains competitive in marketplaces over its competitors by having
strong marketing tactics. Some of these tactics rely on the operations, marketing channels, the
portfolio of brands, as well as costs of brands. Besides, the company focuses on outsourcing the
bottling operations to the franchise that remains to be the largest bottling trademark of the
company. Outsourcing of the bottling operations enables the Coca-Cola Company to capture
essential opportunities of growth in under-developed non-carbonated beverage segment (Collier
2014). Besides, the company operates while focusing on cost control that helps it to diversify the
portfolio of its products. The company is also able to offer a strong brand to its loyal and targeted
customers by continuously exploring promising categories of beverages (Drozdnik et al., 2013).
The exploration aids in capturing the growth of the company’s operations. Consequently, the
company relies on collaborative customer relationship to increase its services. Therefore, the
company believes in marketing that is participative to create a standard value for every
stakeholder.
Marketing mix (4-7Ps) to support the strategies of marketing for Coca-Cola Company
The appropriate marketing form the set of four decisions that need to be a company
launches any new product. The marketing mix (4-&Ps) include pricing, people, process, and
physical evidence that are not constant and might change over time. The strategies of marketing
segmentation include product strategy, price strategy, and price strategy. Promotion in the
marketing mix in Coca-Cola Company consists of the complete integrate market
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MARKETING STRATEGY OF COCA-COLA COMPANY 12
communications that include advertising together with sales promotions (Alshamer et al., 2012).
Therefore, marketing mix continues to have an essential role while in deciding the company’s
strategy. All company's decisions of marketing mix influences its positioning, targeting, and
segmentation decisions. Company’s price and value positioning affect the place along with
decisions for conducting the promotion.
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MARKETING STRATEGY OF COCA-COLA COMPANY 13
References
Alshameri, F., Greene, G. and Srivastava, M. (2012). Categorizing Top Fortune Company
Mission And Vision Statements Via Text Mining. International Journal of Management
& Information Systems (IJMIS), 16(3), p.227.
Bingöl, D., Şener, İ. and Çevik, E. (2013). The Effect of Organizational Culture on
Organizational Image and Identity: Evidence from a Pharmaceutical Company. Procedia
- Social and Behavioral Sciences, 99, pp.222-229.
Collier, K. (2014). A Case Study on Corporate Peace: The Coca-Cola Company: Coke Studio
Pakistan. Business, Peace and Sustainable Development, 2014(2), pp.75-94.
Drozdnik, I., Kaftan, Y., Bidolenko, N., Dudyak, V. and Poluektov, I. (2013). Production of coke
with ore additives in coke furnaces. Coke and Chemistry, 56(3), pp.100-106.
Elmore, B. (2013). Citizen Coke: An Environmental and Political History of the Coca-Cola
Company. Enterprise and Society, 14(4), pp.717-731.
Foster, R. (2014). Corporations as Partners: “Connected Capitalism” and The Coca-Cola
Company. PoLAR: Political and Legal Anthropology Review, 37(2), pp.246-258.
Gabriel, K. (2015). Organizational Development, Organizational Culture and Organizational
Change. SSRN Electronic Journal.
Gagarin, S. (2012). Study of coke structure by computerized X-ray tomography: A review. Coke
and Chemistry, 55(2), pp.56-61.
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Gertner, D. and Rifkin, L. (2017). Coca-Cola and the Fight against the Global Obesity Epidemic.
Thunderbird International Business Review.
Gupta, S. (2011). MIR talks to Stan Sthanunathan, Vice President of Marketing Strategy and
Insights, Coca-Cola Company. GfK Marketing Intelligence Review, 3(1).
Hartogh, M. (2013). It's Still the Real Thing: A Profile of the Coca Cola Company. SSRN
Electronic Journal.
Hassan, S. and Craft, S. (2015). Linking global market segmentation decisions with strategic
positioning options. Journal of Consumer Marketing, 22(2), pp.81-89.
Ivanov, V. and Bondarenko, I. (2013). Assessing coke structure. Coke and Chemistry, 56(9),
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Koh, Y. (2012). The Organizational Structure that Interpenetrates Knowledge inside the
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oman, V. (2015). Company Vision and Organizational Learning. Dynamic Relationships
Management Journal, 4(2), pp.51-60.
Pendergrast, M. (2013). Book Highlight-Surging Ahead: Surviving Management Disasters and
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Schon, W. (2016). The Mobility of Companies in Europe and the Organizational Freedom of
Company Founders. European Company and Financial Law Review, 3(2).
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MARKETING STRATEGY OF COCA-COLA COMPANY 15
Spinosa, C., Davis, C. and Glennon, B. (2014). Transforming crippling company politics.
Organizational Dynamics, 43(2), pp.88-95.
Sundar, D. (2012). Unleashing the Entrepreneurial Potential of Women:initiative of Coca Cola
Company. Global Journal For Research Analysis, 3(8), pp.1-3.
Vallaster, C. (2017). Managing a Company Crisis through Strategic Corporate Social
Responsibility: A Practice-Based Analysis. Corporate Social Responsibility and
Environmental Management.
Wang, M. (2015). Brief Analysis of Sports Marketing Strategy Adopted by Coca Cola Company.
Asian Social Science, 11(23).
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Cola Beverages Pvt.Ltd. IOSR Journal of Business and Management, 16(6), pp.122-131.
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