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MARKETING MANAGEMENT PRACTICE OF Coca-Cola

Article · April 2020

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TOPIC: MARKETING MANAGEMENT

PRACTICE O

SUBMITTED TO

MR DEWAN MEHRAB ASHRAFI

COURSE

INSTRUCTOR

MARKETING

MANAGEMENT (MBA:

649.3)

SUBMITTED BY

NAME ID
1 | MARKETING MANAGEMENT PRACTICE OF MBA 649.3 (EDU)
 KHAIRUL 201005606
AMIN ANIK
IFFAT ANIS 201002906
KHAN
WARDA 201007706
HABIBA
ISHTIAQ 201006406
AHMED

2 | MARKETING MANAGEMENT PRACTICE OF MBA 649.3 (EDU)

 INDUSTRY PROFILE

The Coca-Cola group is an American international business, producer, seller, and marketer of
non-alcoholic soda drinks and syrups. The organization sells Coca-Cola, founded in Atlanta
Georgia in 1886 by John Stith Pemberton.Since 1889, the firm is owned and operated in Atlanta,
Georgia, but was founded in Delaware, has run an independently owned and operated supply
system. The business manufactures primarily syrup extract, which is then distributed to several
bottlers globally that operate licensed franchises. The group owns Coca-Cola Refreshments, their
central bottler in North America. Abdul Monem Ltd. (AML) is the bottler of the official Coca-
Cola, Sprite and Fanta in Bangladesh licensed by the Coca-Cola International head office in
Atlanta, USA. With three processing plants established in Dhaka, Comilla and Chittagong and
with a strong supply system extended across the nation, AML has founded its solid and
successful presence in Bangladesh. Coca-Cola, which has over 500 brands and operates in more
than 200 countries, has invested $74 million to establish the plant in Bhaluka, Mymensingh and
developed other infrastructure. IBPL's plant runs two lines producing 600 bottles of Kinley, a
drinking water brand of Coca-Cola, and 720 bottles of Coke brands per minute. Coca-Cola, the
second-largest player in the carbonated beverage market in Bangladesh after PepsiCo, is a very
established company in the country. It employs more than 500 people, while 5,000 more are
working with it indirectly.
 DEFINING MARKET FOR THE 21ST CENTURY

Intranet:

The intranet is a centralized or confined interaction database; specifically a closed network

developed using the software. This is built to promote teamwork so workers are encouraged to
construct ideas, engage, get projects accomplished and improve the environment of the
organization.

The Coca-Cola Corporation is one of the most successful and popular companies in the world
and reflects far more than its iconic coke. 700,000 workers globally to accomplish its goal by
the aid of its established intranet that helps all the employees connect and function
efficiently. Upon contact with Md. Maksudur Rahman, the Executive of Trade Marketing at The
Coca-Cola (International Beverage Private Limited) we learned that the company has made use
of SharePoint 13, iConnect Express, SAP integration, Chatter and many more intranet web
surfaces to boost productivity.

Core Competency:

Core competency is the fundamental characteristic of an enterprise, offering the base on which
the company can expand, taking advantage of emerging technologies and bringing benefits to
customers. Many companies, including established rivals or fresh entrants into their business,
cannot quickly emulate the core competency of an organization. These competencies also
referred to as essential competence or defining qualities help build an efficient strategic edge for
businesses.

Coca-Cola has competency in its brand name identity and disparate taste factor of its drink. It is
namely these two characteristics that highly differentiate it from its competitors. It also
comprises of certain competencies that are firm specified such as its framework of licensed
bottlers and the secret recipe content or composition that has not been imitated by any of its
rivals so far. Moreover, as the company functions globally, its managerial strength and potential
also serve as another source of competitive advantage that it poses over its competitors. Its
managerial potential lies in its organizational framework that plays a vital role in the attainment
of the goals and target. In addition to this, it’s wide and extensive franchise and distribution
network has been competently serving as one of its most crucial sources of competitive
advantage over other rivals.

Holistic Marketing:

Holistic marketing is a theory that recognizes the company and its components as a common
unit and provides a mutual goal to operations and individuals connected to it. A firm is very
much like a human being, in the sense that it has various components, and only when all the little
components work together for the same target does it run efficiently. This interrelationship is
reinforced by the holistic marketing theory that assumes that a broad interconnected outlook is
vital to achieving the best performance. When designing and executing strategic campaigns, the
holistic marketing approach includes the concerns of customers, companies, staff, vendors and
the society overall. With the heightened participation levels and intensified competition in the
industry, holistic marketing has grown in prominence. Companies acknowledge that they can
differentiate themselves through a strategic marketing strategy, all while building cohesion
between divisions of the company. This approach is composed of integrated marketing, internal
marketing, societal marketing and relationship marketing. This paper will closely inspect each
one of these.

Integrated Marketing:

Integrated marketing is a strategy for providing a cohesive and consistent interface for customers
that can help them engage with the company by planning and coordinating all interactions
(advertising, product promotion, direct marketing, public relations, and digital media) in such a
manner that they all function together as a single force and build on a powerful and centered
corporate identity. The main aim is to generate value for all the stakeholders of the firm with its
broad mix of products, appropriate pricing strategies, smart placing capabilities, and effective
promotional activities.

Product:

Coca-Cola has around 500 brands that comprise of many product ranges that provide an
approximate of 3900 choices of drinks to its customers. Their brand holds a financial value of
almost 21 billion dollars. Some of the most known products are namely, Fanta, Powerade,
Fresca, Coca-Cola Zero, Simply Orange, Del Valle, Coca-Cola, Minute Maid, Diet Coke, Sprite,
Coca-Cola Life, Powerade Zero, Ciel and Glaceau Vitaminwater. Other than these soft drinks it
also offers other ranges of product lines such as juice drinks, sports drinks, energy drinks and tea
and coffee. Most of its products are available at both ranges of high and low-calorie composition.
Coca-Cola sells its products in various sizes of milliliters and liters in both plastic and glass
bottles and cans as well. Their technical capability of providing unique shapes and packaging to
its products has helped it in standing out and dominating the market by differentiating itself from
the rivals. Since the launch of the bottling plant, the US soft-drink maker has introduced four
brands, including Coke Zero and Sprite Zero, and recently launched a spice flavored drink,
locally known as jeera pani.

Price:

Coca-Colamaintains a head to head competition with its competitor in terms of pricing. It

follows a nonlinear pricing strategy or indirect price discrimination and strongly leverages on its
benefits as the market in which they operate in is perceived as an oligopoly. Moreover, it
routinely offers discounts in huge quantity purchases, allowances on bundle purchases and
maintains pricing similarities in line with its main rival, Pepsi; so it does not lose out on
customers in the particular sectors where they operate together. A close inspection into the
history of the pricing strategies followed by Coca-Cola so far indicates that they are relentlessly
aimed at nurturing customer or brand loyalty. The prices of few of the products are as follows:
Coca-Cola Zero Coke Can 320 ml – BDT 130; Coca-Cola Can 250 ml – BDT 40; Coca-Cola
bottle 2.25 liters – BDT 110; Coca-Cola bottle 1.25 liters – BDT 70; Diet Coca-Cola cans 250 ml
– BDT 40; Coca-Cola no sugar 320 ml – BDT 150.

Place:

The biggest factor that helps Coca-Cola operate globally over 200 different nations is its
powerful and efficient distribution capability and network. Coca-Cola is completely dependent
on its bottler partners for the distribution of its products. It operates in six various areas namely,
South America, Eurasia, North America, Europe, Africa, and the Pacific. According to the
statistics, the giant company hits a sale of approximately 2 billion drinks in a single day.
The bottling associates’ bottle, seal, market and supply the finished packaged drinks to our
buyers and retail affiliates, while they market it to customers. The forwarding agents work using
localized strategies and function in an extensive distribution network thus providing 2.5 million
spokes with their products.

Promotion:

Coca-Cola has always been ahead of its rival companies due to its very creative and effective
advertising strategies. Coca-Cola adopts and implements aggressive marketing tactics and
releases advertising campaigns both in offline and online media, print Ads, and exclusively
engage in many sponsorship opportunities and programs such as Fifa world cup, American Idol,
Olympics games, etc. The giant company not only addresses its advertising campaigns on its
customers but also on its distributors, bottlers and retailers by assisting with hoardings and
fridges for advertising and branding purposes. Apart from these, it has hired many famous
personalities and celebrities as its brand ambassadors and also captures the emotional insights of
its customers by engaging and showcasing many activities related to CSR. Few of its famous
campaigns include, “Share a Coke”, “Always Coca-Cola”, “The World's Cup” and exclusively in
Bangladesh, “Nikhoj Shobder Khoje”. The market leader currently streamed approximately 2500
promotional videos on the YouTube platform and its latest advertising expenditures rose upto 2.6
billion dollars.

Internal Marketing:

Coca-Cola not only focuses only on its external customers but it also invests efforts in satisfying
its internal customers which includesthe workers and employees.Coca-Cola markets its products
and creates a favorable image in the minds of its internal customers such that these internal
customers can then reciprocate it to the external customers. When the company and its internal
customers believe and act upon the same philosophies it is only then they can best acquire and
serve its external customers. For instance, when the company launched the campaign “Share a
Coke” it made sure that the campaign was followed by its employees as well. During the
campaign in Romania, employees were gifted a can of Coca-Cola that had names of their other
colleagues hidden on it. So the colleagues with the same names get the privilege of entering the
fun zone and can spend quality time. Furthermore, in other parts of the world, many employees
are also offered bottles and cans of Coca-Cola with their names specially customized on it.

THEIR KEY MANAGEMENT:

 Shadab Khan, Managing Director, Coca-Cola Bangladesh Ltd.

 Tamim Bin Shafique Officer- Sales at Coca-Cola Bangladesh
 Dipak Kumar Sarker Manager, QA. Coca-Cola Bottling Plant Comilla, Bangladesh
 Md. Sarker Hasib Ahmed Associate (Manufacturing) at Coca-Cola International
Beverages Privet Limited. Bangladesh
 Apurba Biswas HR at Coca-Cola International Beverages Private Ltd. Bangladesh
 Md Makhsudur Rahman Executive Trade Marketingat Coca-Cola International
Beverages Private Ltd. Bangladesh
 Kazi Md. Arif Moin Uddin Senior Manager - Supply Chain HR at Coca-Cola
International Beverages Private Ltd. Bangladesh
 Md. Habib Ullah, Country Procurement Manager at Coca-Cola Supply Chain Practitioner
Bangladesh
 Ram Pun Head of Operation, Coca Cola Bangladesh
 Md. Tipu Sultan Manager - Procurement at Coca-Cola International Beverages Private
Limited Bangladesh
 Muhammad Hafizur Rahaman Deputy Manager at Coca-Cola International Beverages
Private Limited Bangladesh
 Md. Faysal Mahmud Khan Assistant Manager-Procurement at Coca-Cola International
Beverage Private Limited Bangladesh

Coca-Cola hires various assessment tools directed at each step of the interview process. These
may include group discussions, written case studies, role plays, reasoning tests etc. they mostly
hire through the newspaper, social media and websites. The giant company motivates its
employees by incorporating the ERG Theory of Motivation and by conducting many more
training sessions on skill acquisitions.

SOCIETAL MARKETING:

This section of the holistic approach requires companies to consider the well-being and goodness
of their surroundings, particularly the society as a whole. This could take into consideration the
environmental factors, serving and benefitting the less privileged people, abiding by cultural
ethics and morals and by involving in these activities with philanthropic organizations. When a
company engages in these activities, it greatly boosts its corporate and brand image insight of its
customers and benefits its stakeholders.
The CSR model of the company comprises of 5P’s namely, people, partner, portfolio, profit, and
the planet. As per recent statistics, Coca-Cola has conducted more than 5000 sustainability
projects all over the world. In such projects, “Me, We and the World” the beverage giant has
made investments contributing to the development of the women labor force and other
entrepreneurial concurrences. Coca-Cola formulated the Corporate Social Responsibility
approach for the 'Live Positive' initiative, which encompasses specific areas: consumption
advantages, active living, environment, electricity and atmosphere, clean packaging, water
and conservation. Throughout turn, Coca-Cola continues introducing further measures to
improve its image. For instance, during India's environmental crisis, Coca-Cola had been a CEO
Water Mandate affiliate and coordinated with the World Wildlife Fund (WWF) on the company's
water concerns and management plan.

Every year Coca-Cola contributes a minimum of 1% of its profit to multiple projects, campaigns,
and associations. On the year 2014, Coca-Cola emitted $126 hundred thousand, or 1.3 percent of
its net profits, which was allocated in constructive and safe living projects, water conservation
services, healthcare, woman entrepreneurship, and welfare and relief efforts services. Being
a part of CSR, the global beverage giant outlined a big project in Bangladesh namely the "Save
My School (SMS)" system administered at multiple schools. It was launched by the non-
governmental organization (NGO), Plan Bangladesh. SMS scheme envisioned, Coca-Cola
contributing to the improvement of the water and sewage infrastructure of the schools,
construction of a library, and making sporting equipment accessible to the students.

The campaign was successfully performed in 83 schools in Bangladesh. Coca-Cola has

supported approximately 600 children with uniforms and established a public hub for medical
tests in its bottling plant field in Bangladesh. Coca-Cola Bangladesh scheduled a tour by its
international president to mark the achievement of supporting 70,000 women develop in
Bangladesh as SME-sized businesses. Coca-Cola is operating the Women Business Center
(WBC) initiative in collaboration with the international development organization United
Purpose – a pioneering platform for community advancement in a wide spectrum of markets.
The corporate social responsibility initiative of Coca-Cola, WBC, launched in Bangladesh in
2015 and the organization aims to transform one lakh, tribal Bangladeshi woman, into SME-
sized businesses by the conclusion of 2020.

RELATIONSHIP MARKETING:

The relationship marketing branch of the holistic marketing approach sheds light on a lengthy-
term client relationship and involvement instead of brief-term goals such as product sales and
revenue. The above approach focuses on directing marketing efforts at current customers in order
to create effective, social and transcendent consumer associations. Such links also help the
company gain regular profits, free brand awareness public relations and more leads. Consumers,
shareholders, financial bodies, manufacturers, distributors, government bodies and competing
agencies are mostly crucial stakeholders to gain and to retain as each has a direct effect on the
company's performance or loss. Approximately 94 percent of the global population is completely
conscious of Coca-Cola's red and white emblem. Coca-Cola has linked its goods to anything that
is important to its consumers, and which reaches their consciences. Through this approach, Coca-
Cola relies on its consumers to boost the company through their enthusiasm for the brand. Coca-
Cola promotes on Facebook and wins more clients through web media.

Coca-Cola gathers all the consumer information from the Facebook page to ensure a suitable
customized experience to draw more consumers and hold back current consumers as well. Coca-
Cola is Facebook's second-largest fan group since it has over 3.4 million members. Coca-
Cola introduced a unique, revolutionary sales system named Freestyle which was a fountain
dispenser. The consumer will make their own drink from 100 variations and they were ready to
offer 100 varieties that were not previously implemented. The most important thing as to the
freestyle vending machine was that it was linked to SAP. This way, it extracted all the consumer
details and is saved in the CRM database. Coca-Cola has a supplier relationship management
system that aims to enhance alliances with all its suppliers. Each manufacturer is reviewed to
ascertain their efficiency, based on expense, reliability, quality, corporate governance and
resilience. Another way the organization strengthens the collaboration with all of its vendors is
by honoring their excellent success in the annual 'provider of the year' awards.

Developing Marketing Strategies and Plans

THE VALUE CHAIN OF COCA-COLA

Coca-Cola has become one of the names with the most popular worldwide. Coca-Cola is
renowned for its strong global identity and international reach, and its inventory contains many
billion-dollar products. But developing such a large international brand often needs the effective
management of the value chain. The value chain encompasses all operations from bringing the
raw materials from different sources to the gross sales and after-sales service. There are several
activities that make up the value chain. Both primary and support activities comprise the value
chain process. This paper inspects each process in the value chain below.
Inbound Logistics:

Coca-Cola has operated a global supply chain that encompasses hundreds of producers and
vendors. Their vendors are regarded as corporate associates. Such company partners supply the
raw resources including food, manufacturing, and equipment as well as products and services to
their network. It also has, nevertheless, established fundamental guidelines to be adopted
by suppliers. Distributors are at the basic obligated to abide by all relevant rules and policies.
Coca-Cola frequently promotes proactive approaches and activities on the community and at
work in its instructions. It also has established an outstanding partnership with its manufacturers,
allowing it to ensure a consistent and seamless resource supply.Water is the primary component
for all Coca Cola Company processed goods and the organization periodically encounters serious
difficulties in obtaining this specific raw resource. Coca-Cola makes heavy use of high fructose
corn syrup (HFCS) and this raw material is imported from US manufacturers and shipped
through vehicles. There are also several components that are being imported from around the
globe. Orange juice and orange juice concentrate, for instance, originate in Florida and the
Southern Hemisphere, specifically Brazil. The inbound logistics are facilitated through vessels
and vehicles for foreign transactions. Coca-Cola respects the collaboration of their suppliers. In
2013, $952 million was expended on different vendors, up 14.8 percent from the previous year.

Operations:
From a regulatory and administrative point of view the Coca-Cola Company is not a centralized
organization. Coca-Cola produces and markets concentrates, soda mixes and flavorings to its
bottling companies retain brand control and establish business policy and implement it. Bottling
companies produce, store, sell and deliver the finished commodity to consumers and distribution
associates.Coca-Cola's management role encompasses focus production of other headquarters
administration tasks. Coca-Cola is a multinational company that works independently in every
city where it conducts business. Most local outlets run the Coca- Cola's distribution and do not
operate any of its bottling companies. The organization produces and distributes soda bases and
syrups for bottling procedures. The brand maintains the logo and is eligible for the promotional
campaigns. Coca-Cola operates in seven hub branches namelyEurasia and Africa, Europe, Latin
America, North America, Asia Pacific, Bottling Investments and Corporate.
Outbound logistics:
This aspect of Coca-Cola's Supply Chain is comprised of associates and dealers of bottling. It
supplies bottling suppliers, containers, merchandises and disperses the finished goods to
consumers and retail associates. Instead, these distribution associates market the goods to
consumers. Coca-Cola's clients include grocers, hotels, street sellers, grocery shops, movie
theaters, and theme parks. Coca-Cola's bottling companies coordinate with the consumers to
incorporate specialized approaches built in collaboration with the Coca-Cola group.Coca-Cola
Company markets its goods even more than 200 countries and naturally reports to have the
biggest delivery network for drinks in the world. Manufacturing outlets operated by Coca-Cola
comprise of the company-operated or managed manufacturing activities, individual bottling
companies, manufacturers, wholesalers, and outlets. The five main bottling partners generated 33
percent of the 2014 overall unit case volume revenue. In addition, outbound logistics are
managed by manual delivery throughout Africa, with over 2500 independent manual delivery
firms employing more than 11,000 people.

Procurement:
Coca Cola undertakes producers and vendors in hundreds. This utilizes innovations to automate
and render the overall process more productive. It has established strong ties with its distributors
and issued instructions that must be met by them.

MARKETING AND SALES

During 2014, 2013 and 2012, shipments of drinks belonging to the Coca-Cola group contributed
respectively to 28.6 billion, 28.2 billion and 27.7 billion unit cases respectively. Export revenue
in the domestic market US accounted for 19 percent of the overall export value in 2014. Canada,
China, Brazil, and Japan accounted for 31 percent of global revenues outside the US. Coca-Cola
incorporates innovative communications approaches through the simultaneous application of
advertisements, promotional campaigns, activities and interactions, and strategic blend concepts
for public relations. The idea regarding brand ads is linked to being satisfied, loving life and
living a healthy lifestyle. Coca-Cola's new campaign strategies were targeted at incorporating
four famous beverages – Coca-Cola, Diet Coke, Coca-Cola Zero and Coca-Cola Life into the
'One Brand' model, thereby offering the target consumer audience a broader selection of options.

Services:

Coca-Cola retains its customer care practices through internet chat with a digital operator on the
company's specialized customer service telephone official website. The Coca- Cola page
provides a detailed FAQ that discusses in-depth certain facets of their goods, and the webpage
often answers a broad variety of primary and related brand-related theories.

Technology Development:

Coca-Cola has a clear emphasis on innovations and R&D. From manufacturing through to
delivery and trading, it has grown in technologies throughout. Beyond this, it also emphasizes
technical advancement through research and growth. This has six R&D sites across the globe
linking it with clients, business start-ups and academic students to international development and
evaluation hubs. The business interacts with stakeholders in other sectors to drive creativity by
goods, labeling, machinery, and the like. Throughout in this context, Coca-Cola constantly
concentrates on productivity creativity.

Human Resource Management:

Coca-Cola is concentrated on attracting and cultivating expertise, and building a lifelong

learning atmosphere. This offers them decent benefits, which brings bonuses to the salaries as
well. Coca-Cola emphasizes on inspiration and dedication to the staff. Besides that, their
attention is also invested in quality improvement to offer job development to the workforce.It
employs more than 500 people, while 5,000 more are working with it indirectly.
Firm Infrastructure:
The importance of the infrastructure of a company is essential to its performance. Coca Cola has
operated a broad network involving its administration, human capital, financial services, and
technologies. This frequently educates its manufacturers, through its R&D sites, and insists on
creativity.

THE VALUE DELIVERY APPROACH:

A value delivery is the process through which company design their product in a way so that it
gives maximum value to their customers using it. The value that the company intends to deliver
their customers can be not only in the sort of product, benefits and attributes etc. Whatever that
creates value for the customers of the company , should be included in the value delivery
process.

THE VALUE DELIVERY APPROACH OF COCACOLA DEVIDED INTO THREE PHASES:

1.Choosing the value: The very initial step for cocacola before producing any beverage
product is to pursue Segmentation, Target Marketing and positioning (STP Model). To know
what their customers need, Coca-Cola uses the consumer segmentation criteria and market into
different groups: behavioural, psychographic and profile. After deviding the market and
analyzing return sales and rate, cocacola want to invest in the market and they basically follows
the mass marketing strategy.

2. Providing value: Since, cocacola is one of the top beverage company of the world, they
basically target the whole world and thus their amount of value providing is huge. After the top
management of Cocacola company define corporate strategic plan, then marketing department
decides about the specific drink type, price setting and and product distribution worldwide.
3. Communicating the value: For value communication, Coca Cola depends on media
widely to carry out its integrated marketing communication strategy. The medium followed by
the
company includes newspapers, magazines, internet( social media includes facebook, twitter,
printerest etc) , television, cinema, radio, posters and billboards.

LEVELS OF A MARKETING PLAN

Strategic Plan: Strategic planning includes ongoing process through which a company set
priorities, strategic objective and aims to execute them for the target market.
Inspite of having the existing weaknesses and strengths, Coca-Cola ensures their leading position
as a strong brand and a market leader in the soft drinks industry. At present, the Coca-Cola
Company offer more than 500 brands in more than 200 countries and serve 1.6 billion servings
daily. They target consumers around the world and for all age group, and gender.

Tactical Plan: Tactical planning is basically a manner through which companies prioritize
and decide strategic initiatives. Afterword, which markets should be better to to enter, what
products should be introduced and how to compete with rivals more effectively are decided by
those initiatives. Cocacola pursues some tactical initiatives regularly. From them, One of the
tactic is to increase the amount of product that Coca-Cola customers buy mostly.Basically,
Coca-Cola determines to accomplish this goal by launching new products for example salty
snacks which may make a good combination with soda. They also show extensive advertising
for their target current customers for the purpose of keeping the brand in customers mind. In
such ay, cocacola makes sure that customers will think of Coca-Cola soda first when they feel
thirsty and wish to purchase a drink.
The strategic planning: Strategic planning includes-
1. Intensive
2. Integrative
3. Diversification

Intensive: In intensive, there are four types of dimensions.

 N
MARKET PENETRATIO

It is one of the key strategy to sell more to the existing customer.

Besides keeping price affordable, cocacola uses promotional tactics like seasonal discount, new
package and various promotional campaigns.

Market Development:
This is the key strategy for grabbing new market and customer.
This strategy has been highly effective and helpful for Coca Cola to grab the lead the beverages
industry.
Product Development
It is the strategy to bring new product to market to increase sales.
Eventually, the product range of Coca Cola has grown widely and now its huge product
portfolio is around 500 dazzling and still brands and it serves almost 3900 beverage choices. as a
result now, 21 billion dollar brands in its portfolio

S
SWOT ANALYSI

SWOT analysis are to offer the competitive imminent into probable troubles that may create an
effect on the journey of the success of the brand (Business Dictionary 2011). A SWOT analysis
is also known as an Internal-External analysis, that helps the company in setting up a business
plan and eradicating threats as well as weaknesses, widen further strengths and opportunities
(Mind Tools, 2016). The internal environment contains the strengths and weaknesses on other
hand, the external environment includes the threats and opportunities.

STRENGTH:
Highest brand equity: Coca cola own highest brand equity, and during 2018 they were amongst
the 7 most mentionable brands worldwide (Badenhausen, 2018). Coca-Cola is certainly one of
the most well-known brands with the highest brand equity.
Strong brand identity: Coca-Cola is a highly admired brand with a strong brand identity. Their
soft drinks are the mostly-selling drinks worldwide. This company is the biggest non-alcoholic
soda company globally. The company serves around 1.9 billion or 3.2% of the entirety 60 billion
beverage allocations of all types consumed globally every day. Cocacola owns, distributes and
sells over 500 different non-alcoholic beverage brands in above 200 countries.
Extended global reach: Cocacola is sold over 200 countries with around 9 billion allocation
per day of their products. They introduced over 500 new products worldwide. Most of them are
variations of Coca-Cola drinks, such as Cherry Coca-Cola and Coco Cola Vanilla. Their brands
are recognized to stroke each demography and lifestyle.
Strong marketing and advertising strategy: Cocacola have very talented team of marketing
through which they make unique strategy of marketing their brand. The most important practice
they follow is associating celebrities in their commercials.
Customer loyalty: One more powerful advantage of Cocacola is Customer loyalty. Cocacola
earns around 80% of profit from its 20% existing and loyal customers.
Large sponsor: Cocacola is one of the leading sponsorsworldwide. Cocacola have been
sponsoring global sports even like Olimpic, Fifa etc that provided them the unique chance to
achieve global market.
Largest Brand Valuation: Coca-Cola is recognized as the 3 rd Best international brand
on Interbrand’s annual ranking. Achieving brand value of approximately $79.96 billion, they
maintained the peak position for several years.
Strong distribution channel: Cocacola’s quality products reach all of its market including Asia,
Europe, Africa etc by their strong and proficient distribution channel.

WEAKNESS:

Negative publicity: There are some rumors about the depressing effects that can be occurred by
having coke. For example, during 2007 a rumor spread about containing pesticides in coke
(Vedwan, 2007) on other hand, in 2017, cocacola was criticized for deceptive marketing
(Fantozzi, 2017).
Absence in the health beverage: As Coca cola have not yet been included any healthy products
in their product line, so it became a weakness for them. There drinks are known as unhealthy
because it results in obesity in the long run.
Aggressive competition with Pepsi: Cocacola’s biggest rival is pepsi. If pepsi was not there,
Cocacola would be market leader more easily and clearly. For example, for people of Oman and
Saudi Arabia, pepsi is more popular than Cocacola.
Product diversification: As cocacola has low product diversification, it became leverage for
pepsi and they are lagging cocacola behind by launching their several snacks products like
Kurkure and Lays.

OPPORTUNITIES:

Introduce new products and diversify its segments – Coca-Cola has the potential opportunity
to bring in new product line in food and health segments similar to Pepsi do so that those
products can add to their revenue, and they can separate from from carbonated soda.
Increased sales possibility in developing nations: Tanzania, India, Bangladesh are developing
nations, and in this countries the sales goes almost doubled in the summer. So these countries
will work as Cocacola’s largest market opportunities.
Packaged drinking water –Besides carbonated soda, cocacola also have drinking water brands
for example, Kinley. This is an opportunity for them to increase and broaden their product line of
healthy drinks in the market so that they get rid of criticism.
Bring advanced supply chain system – Coca Cola’s business structure is completely reliant on
supply chain and logistics. Cocacola always come up with some superior and enhanced methods
for allocation can become an opportunity.

THREATS
Direct and indirect competition: Though pepsi is the direct competitor of cocacola, they have
also many other brands which are indirect competitors of cocacola such as Starbucks, Costa
Coffee, Lipton Juice, Tropicana and Nescafe which threaten the market of cocacola.
Change in customers taste: Though Cocacola have customer loyalty but still there remain a threat
that if their customers taste change, there demand will fall.
Packaging controversy: As cocacola use plastic for their packaging, they were censured by
Greenpeace in their published report in 2017. They also criticized cocacola for over cocacola’s
recycling and renewable sources.
Scarce source of raw material: Scarcity of water source is now at increase for which Cocacola
will face problems because their raw material is water and it will become difficult to manage this
raw material at lower price.

CREATING LONG TERM LOYALTY RELATIONSHIP

LOYALTY
Satisfaction is basically the customers fulfillment response about the product and service of the
company (Zeithmal and Bitner, 2003). And, Studies in the past found that customer satisfaction
has significant positive influence on customer loyalty (Schirmer et al., 2016).
The basic vision of cocacola is that, their existence is for satisfying customer needs. They have
more than 400 brands of beverages designed to satisfy their wide range of customers worldwide.
They always try to satisfy their whole target market including people of all ages, gender, races
etc. As a result, their customers remain loyal to them. Coca-Cola leading global brand which has
demonstrated brand loyalty during its 125 year record of being successful. The brand achieved
their popularity through economic declines, altering consumption prototype, and enhancing
concern over healthy consumption of drinking and eating behavior.
 CRAFTING BRAND EQUITY

Building Customer-Brand Based Equity

Brand equity defines a value quality that a brand creates from a product having an identifiable
name when contrasted to a generic equivalent. Brand equity can be created by making product
easily definable, memorable, and advanced in reliability and quality.
Cocacola is often rated as best beverage brand worldwide, with brand value of approximately
$57.3 billion in 2018. Nevertheless, cocacola itself symbolize more than just its products—but
also symbolic of positive experiences and a proud full history. Also recognized for its exclusive
marketing movements, the Coca-Cola brand h created a global impact toward its consumers
engagement with the brand. Cocacola is now more an emotion than a product to its customer and
this happened for their marketing strategy as they relate their product more with story of people’s
real life. As a result, among so many beverages, people think about cocacola first. ( Source:
Interview from HR support officer at IBPL Cocacola).
There are 6 things a company have to follow to establish a brand.
1. Memorability
2. Meaningfulness
3. Likebility

There Three things are under marketers offensive strategy and build brand equity.
4. Transferability
5. Adaptability
6. Protectability
These three things are under defensive role for leveraging and maintaining brand equity.
Memorability:
A brand name should be memorable so that it can be recognized by any group of people.
Cocacola initiated lots of activity such as advertising that relate with their occasions, vending
machine so that when people see the machine or see the advertisement, they can relate with the
situation and remember about cocacola.
Meaningfulness: It is mandatory to have a brand name.
Cocacola is named as cocacola because, the coca leaf and kola fruits that were used to add
flavor.

Likebility of Cocacola:

Likability is the opportunity to convince the customers by brand elements. Cocacola is more
likable among all beverages to their customersfor the following factors:
 Brand’s story relatable with real life
 Express emotion through your content. Example: Coca Cola’s Taste the
Feeling campaign.
 brand’s personality
 Popular Celebrities
 Sponsorship and events

TRANSFERABILITY:
It is the degree to which a brand can increase their product line by their brand elements to
increase brand equity.
Cocacola in now thinking about extending their product line such as manufacturing salty snack
that go well with their soda drinks.
ADAPTABILITY:
The more adaptable and flexible the brand elements, the easier to cope with the changing trend
of customers choice and demand.
Cocacola keeps updating their logo time to time for years to be up to date with the latest fashion,
trend and opinions.

PROTECTABILITY:
Lastly, a brand should select its brand elements which is protectable legally and competitively.
Cocacola is legally protected by having:
  Its trademark legally protected
 Its Patent and copyright are protected
 Proper licensing
 Recognized legally

CRAFTING BRAND POSITIONING

Segmentation: Market segmentetaion help a company to develop their products and services,
indicating what their customers will prefer and innovate new potential sectors. Cocacola markets
the products by selling into diverse or several markets (e.g. Diet coke) (Patrick and Thomas,
1992). To find out about customers need, Coca-Cola go through the consumer segmentation
criteria and market into different groups including demographic, geographic, psychographic and
behavioural.
1. Demographic: Cocacola people of all age, gender and race. But as it a premium brand,
they mostly target medium and high income people.
The Market reaches segments among three variations including age, gender, income.
Age:
Criterion Age
Oasis 20-30
Diet Coke 30-50

2. Geographic: Cocacola is a global leading brand currently having market in over 200
countries.
For example, USA, Saudi Arabia, Pakistan, Bangladesh ,China etc.
3. Psychographic: Psychographic segmentation devide the market according to social class,
personality and lifestyle.
 Cocacola targets middle class or medium income people
  Cocacola targets higher class or high income people.

The reason behind choosing middle and high class people is that, they brand their product as a
premium product.

PERCEPTUAL MAP

A perceptual map is a illustration of the insight of existing customers or potential customers

about explicit characteristics of a brand, organization, product, service and idea. This pictorial
method(perceptual map) ask participants to place product relative to one another along two or
more axis.

For Cocacola, we are using two determinant attributes including:

1. High Quality- Low Quality

2. High Price- Low pric

PROMOTION

Coca-Cola’s promotion is something else and people all around familiar with this brand its
because of their excellence promotional activities. Because of interesting and unique promotional
strategies its now one of the most recognized and strong brand in the world. Although its an
American brand it has gone beyond American culture and instead it’s trying to adopt world
culture and they are most successful in it.Its now producing its bottle of joy in almost all the
countries around the world. And all around the world they are equally popular. The large part
behind this is their quality and its promotional tools.

They generally manufacture a drink that most people enjoy along with that it has brought several
other companies that produce soft drinks to expand its wings but coca cola has always been the
marketing king in the world of soft drinks. Basically memorable campaigns and ads they create
holds generation after generation. Each ad they make its like an art. We will be discussing about
some of their promotional tools.

They follow the following step for promotion of their product

 Advertising
 Personal Selling
 Direct Marketing
 Public Relations
 Sales promotion
 Publicity

ADVERTISING:

As Cocacola is one of the most valuable brand in the world and industry leader of
carbonated drinks, it has always published advertising that has touched people’s
soul. Its has provided some of the most memorable ads we can ever think of for
example “I’d like to buy the world a coke” commercial which released in 1971 and
like this cocacola is building this sort of advertisement from hundred of years.They
spend a huge budget on their advertising each year.It has always shown the
commitment on advertising is the key push to coke’s success.

PERSONAL SELLING

Personal selling basically refers one to one selling to the customer .coca cola has taken the
personal selling to another level. it has established lots of booth here and their which works like
a person from coke. you just pub money in the booth and you get a coke. It took this revolution
on another level in 2009 when it launched their soda fountain call Coca-Cola free style . here
they had 100+ variety of coke’s product and you can mix any flavor with other if you want . for
example you can mix fanta with diet coke.

DIRECT MARKETING:
Coca-Cola does its direct marketing in a different way . generally direct marketing
is calling or talking to customer directly. Instead of calling customer coke call
different organization and serve customer through them. And in return those
organization gets benefits from coke. A few of their direct marketing are

 Merging with food chain: Coke merge with food chains where those food
chain only serve coke ( example McDonald) so whenever customer visit
those shops they will get a coke and nothing else. Thus they connect with
customers
 Sponsoring Sports event: Coke associates with lots of sports event
worldwide. Those sports event has lots of fan base and by sponsoring them
coke catches those fans attention directly.eg : EPL, Olympic games.

PUBLIC RELATION
Coca cola does its PR activities though awareness campaign, CRS activities and different events.
They take much care on the public relation platform They believe in making customer
relationship above all. The most memorable example can be what coke did in UAE. Where they
established a booth and people were able to contact with loved one with just a coke cap. And at
that time calling was really expansive. another great example would be how they provided iftar
in a reral village where those villager were starving. They also took part in awareness campaign.
Sometimes they proted friendship on public place.

SALES PROMOTION:

Coca-cola spends a huge amount of money in sales promotion. Although they are one of the
world’s biggest company they always comes up with new selling ideas and different offerings to
the customer. It may be on a vacation or a holiday or on a regular day. They do it in different
way. At time they go to campus and promotes its product or they give sale on their product and
interestingly they offer gifts after buying coke. E.g. Mobile phones, laptop, recharge etc
PUBLICITY

Publicity tools are very interesting which

coca cola adopts. From celebrity to
billboard to newspaper. Coke intensely
promotes their product. They sponsor
lots of event worldwide for their
promotional strategies. We often see an
influencer in a particular region promoting coke thus it reaches a lot of people altogether. So
that’s how they does their publicity operations.

INTERNET
The presence of Coca Cola on the Internet is oriented towards creating partnerships rather than

making sales. Coca Cola's presence on the internet has developed a positive outlook towards the

brand, growing recognition and desire to buy. The availability of Coca Cola on the Internet was a

compliment to other IMC devices.

MARKETING STRATEGY OF COCA-COLA (STP)

SEGMENTATION:

Marketing Segmentation is basically portioning a market into potential customer’s group who
basically share similar needs and likely to have similar purchasing behavior. Intension of such
strategy is to understand the market and choosing the portion of market that will give maximum
benefit to the company. Coca cola follows following segmentation strategy

DEMOGRAPHIC SEGMENTATION:
Coca cola demographic segmentation would encompass age, family size, and income. Coke
groups with age include small children, young adults, and older adults. In general, coke has no
clear target and is aimed at all (Vendredi, 2012). Form of family, coke has launched their
economic package that helps focus on groups and communities. Coke segments have different
income rates by which they provide bottle ,can, big and small size coke

PSYCHOGRAPHIC SEGMENTATION

The coca cola company's psychographic segmentation is of social status, lifestyle, profession,
education level, and personality. Segmentation of coke is to everyone. A coke doesn't usually
target lifestyle, profession, or education rates. Nonetheless packaging is available for different
customers. They basically focus on the fact that people should think coke is for all.

BEHAVIORAL SEGMENTATION:

Coca cola’s finest marketing strategy is their behavioral segmentation. In this portion they target
different occasions that people celebrates together such as Christmas, Eid Diwali, Thanks giving
etc.They pick those time when people generally share their happiness together with family and
friends, they come out with such amazing ads on those time which is amazing to see.

TARGETING:
Targeting is basically choosing the portion which company will be serving. Coca-cola’s targeting
strategy works following way

Age: coke doesn’t have a specific target portion. It targets the whole market all together. But yes
they focus on the age group (12-30) most. To be honest they don’t specifically communicates
with those rage of people, instead they convey the message to whole market but still they are
successfully reaching them over hundreds of years. May be through partnership.

Life style: Although coke goes not target specific life style as it is for all but it seeks attention
more busy life style and young generation are considered to be the most profitable part of Coca
cola’s consumers.

Occupation: it targets students and family oriented people mostly

Nature: fun, joy, entertainment loving people who wants to share happiness with one another

POSITIONING:

An integral part of people’s daily life .it creates its intimacy with its customer by bringing out
emotional storytelling and their unique selling approach .Coke has positioned itself in the soft
drink market so well by the statement “THINK GLOBALLY ACT LOCALLY” by following
this principal it is able to know how a developing area thinks and how a developed area thinks.
Combining these two together they are so successfully able to catch every customer they target
as they know the core of that region and they act according to that. Like in Bangladesh during
ramadan they release and ad where they focus on family bonding while fasting. That’s so
interesting to see. It created its image who is offering something to drink with family friends and
regular life. The best thing they did is when we think of celebrating together we always keep a
coke to share with other. That’s the beauty of their positioning strategy.
 COCA-COLA’S DIFFERENTIATION STRATEGY

Differentiation is basically how people can differentiate a product from other. Coca cola follows
following differentiation strategy

SYMBOL OF JOY AND FUN

It has created itself as a brand which is there whenever we want to share our joy and happiness.
In every occasion it’s a must for us to drink with our loved ones and friends. That psychological
approach made them different from other.

PRODUCT LINE
A large variety of product line serves every types of people. Coke took this approach very seriously and
they manufacture huge ranges of product with different size and different flavor that serves every
person’s choice.

CULTURALLY SHAPED PRODUCTS

Coke follows a tagline “ Think globally and act locally” and by following this strategy they have
to satisfy different region and culture. And for that reason they offer different product which
catches attention of those cluture. And that makes them different from other cola brand
WATER PURITY STANDARD
Soft drinks contain 90-95% water so water need to be very hygienic and coke takes this very
seriously.as it must contain consumer trust. they follow a technology named HYDROGGUARD
HG-702 technology which ensures 5 step water purity assurance.

ORGANIC SODA AND BEVERAGE LINE

When differentiation comes

there is nothing better than
coca cola . this company has
set a benchmark by bringing
out pure organic beverage
under its product line. This made them stand out from others. This again proves there’s no one
better than them in differentiation and thus they concurred the market through their
differentiation once again.

CUSTOMIZING VENDING MACHINE

Coca-cola’s vending machine are different from other vending machine . the main point of
differentiation here is , you can customize your own drink. For example you can mix coke life
with a diet coke. Whatever combo you want you can get it from here. And it accepts mobile cash
so that’s an additional benefit.

PORTER’S FIVE FORCES ANALYSIS OF COKE

COMPETITION
 All the big companies has bigger
competition. Coca cola is no different .
as a rival it has another beverage giant
Pepsi. According to most people this is
the biggest competition in the corporate
world. There are many soda drinks that
can give competition to coke but Pepsi
huts coke the most. Although coke has
better sale than Pepsi worldwide but
Pepsi has more control on us market and Pepsi has non beverage item that make them more
strong.

THREAT OF NEW ENTRANTS:

Company like coca cola is so popular over the world that, threat of new entrance is very low
here. There are some major thing that make threat of new entrance nil for coca-cola

Brand Name: The brand cola is very big that’s why if people get an option of a new cola and
among coke, in almost all the case people would go for coke

Distribution channel: coca-cola has a worldwide distribution channel. It has many plant around
the world. its very difficult to match up that for new companies.

Huge initial investment: for matching up to the level of coke, you need huge initial budget for
plant and others and that seems impossible for anyone

Economic of sale: all the established company enjoy an economic of sale due to its operation
expertise. And its seems difficult for new companies

Loyal fanbase : coke’s biggest strength is their loyal fan base . for new companies it will take
hundred of years for this kind of fanbase.

THREAT OF SUBSTITUTE PRODUCTS:

Substitute of beverage drinks would be juices, water, tea or coffee. Coke has a plan for this too.
They have strengthen its wings for this kind of products too. They manufacture water juice and
cold beverages and thus reduced the threat of substitute products.

SUPPLIER POWER:

In case of supplier power of coca-cola

 Sugar and water suppliers of coke can be easily replaced by coca-cola

 For the bottle manufacturing plant, coke owns most of their bottle manufacture plant.
 Other factor like labor and equipment would not be a problem for company like coke.

So supplier power is very low for C0ca-cola

BUYER POWER:

In case of coca cola , its bottling partners are its buyers. And among those partners most of the
plant are owned by coca-cola. So buyer has little or no buying power over coca-cola.

PRICING STRATEGY COCA-COLA

They used a cost-based estimation method for their Original Coke to first determine its quality.

We initially wrote the item, the first coke, agreed on the expenses for the (service costs, capital

expenditures, and operating costs), set a cost considering Coke's quality, eventually convinced

the customers of the appreciation. Coke used market-entrance assessment at its expense from that

point on. Currently, Coca Cola products are placed at a common degree of competition to face

opposition to significant competitors like Pepsi, products valuing. In this way, Market Price is
their basic approach, because they trust costs should not be too low or too high for the value

from which the competitor is paying. Coca-Cola uses the following alternate pricing strategies

over the year for Coke:

1) Psychological Pricing

Coca-Cola uses psychological pricing to grab their customer attention. For example, In 2009

Coca-Cola used their Initial Coke psychological estimation method. For example, a 2 liter

Original Coke jug cost $2.49. They set the cost to end in 9, because this causes consumers to

believe the cost is below $2.50.

2) Promotional Pricing

Coke also takes advantage of the discounted pricing policy. Coca Cola delivered the discount

prices as often as possible. In store that offers Coca-Cola, the cost of creating short-run deals are

consistently priced surprisingly below the rundown price. Particularly on some event Coca Cola

diminishes its rates like in Ramadan Coca Cola decreases its rate unto 5 Rupees on 1.5 litre

container. This gives the item a sense of criticality and consumers are purchasing the item

despite the lower cost. Coca cola organization offers middle men or retailers incentives in such a

way as to give them free example and free purge bottles, thus putting their item on the market

through these retailers and center man. That's also the reason coca cola has been seen more on

the market.

3) Segmented Pricing

Coke takes advantage of the segmented demand approach. Coca Cola is sold at various prices,

depending on different products. They get to increase their sales from selling product in different
sizes and at lower prices, since there is not much difference in the cost of making the goods.

Following are the different packages available for different target audience:

i) RGB - Returnable/ Refillable Glass bottles

ii) CAN – Aluminum Cans (Tins)

iii) BIB - Beverages in bag

iv) Tetra – Tetra Packs

v) PET – Plastic Bottles

4) Discriminatory Pricing

Coke also follows discriminatory pricing strategy, because when sold through different channels

they have different prices. Such as their: wholesalers / distributors, stores, hotels, gas stations,

electronic distributors.

5) International Pricing

Coke additionally utilizes the international pricing strategy. For example, the cost of a 2-liter

container of Coke in the United States is unique in relation to the cost of a similar item in China.

This needs to do with the distinction in financial conditions, aggressive circumstances, and

laws.Coca Cola has adopted numerous assessment protocols along these lines in view of the

importance and consideration of delivering new products based on specific gathering of people.

Coca Cola is sold through following ways:

1. Direct Selling: By using their own transports, their goods are supplied in this form of sale in

shops and departmental stores. Provides more profit margin in this form of sales business.

2. Indirect Selling: In this form of distribution, all of their sellers and agencies are expected

to cover all areas to ensure their customers that Coca Cola products are available.

MARKETING COMMUNICATION OF COCA-COLA

As Coca-Cola offers globally standardized products its marketing communication method

follows ‘Think local, act local’ slogan. Coca-Cola operates its marketing communication through

some media which are mainly publishable media and visual/aural media.

Publishable Media:

Newspapers
Newspapers are one of the most common media advertisement forms which Coca-Cola widely

uses. Coca-Cola Company is one of the organizations that in its earlier stages featured media ads,

and the company has been engaged in media advertisement for over 100 years.

Magazines
They are commonly used to market Coca-Cola on a global basis. The magazines are picked by

the firm's target consumer group according to their readability. Generally, these advertisements

take a whole page of the magazine to maximize the positive effect of the marketing campaigns.
Internet
This is another channel where Coca-Cola advertisements are put in various ways. In particular,

online advertisement of the brand is made by the extensive use of banners, pop-up

advertisements, on-site sponsorships and numerous other types of online advertising across

thousands of websites across the globe. Here are also many forums and websites dedicated to

Coca-Cola fans, where users can share their Coca-Cola stories.

Visual/aural media:

Television
In several countries, Coca-Cola has been sold over television. Coca-Cola produces

advertisements in different countries. Such advertisements are designed taking into account the

local community in order to prevent any misunderstandings due to variations in the various

countries 'community.

Cinema
Coca-Cola is marketed in the movies as well, and this is achieved in two ways. Firstly, before the

movie begins, Coca-Cola video advertisements are played in the cinemas. Secondly, Coca-Cola

is marketed by product placement in movies where the drink is placed somewhere throughout the

film and the product placement value is maximized by having the drink being consumed by the

lead character.
Radio
Coca-Cola radio commercial typically only lasts a few seconds, but is considered effective in

terms of increasing brand recognition and loyalty to consumers.

Posters and billboards

These are also commonly used as an integral part of media promotion at Coca-Cola. The

billboards are typically mounted across the globe at city centers and highways, as well as certain

parts of the rural areas. On the other side, posters are usually placed in public transports, stores,

and restaurants.
 CONCLUSION

Coca- cola is a global brand. People are having this product for more than 125 years. The success
they have now is because of the establishment that has created from hard work of more than
hundred years. And they success is the result of continuous effort on marketing activities,
economics of sale and successful supply chain operation. But they main key point of their
product is their marketing strategy. From the time of Candler & Robert to till now they have
adopted some of the finest marketing tool that set example of how market works they shown a
different direction in marketing and promotion and successfully set an standard which is barely
be touched. This excellence on marketing pushed here Coca-Cola today.
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