Jaipuria Institute of Management, Indore

PGDM Batch – 2022-24

B2B MARKETING

Submitted to - Submitted by-

Dr. Manoj Das Romit Pandit
Sanskar Sharma
Shikha Khemka
Shreya Yadav
Tanima Kasyapi
Tarun Singh Kirar
Vijay Vardhan Sharma
 Introduction
The Coca-Cola Company is a multinational beverage industry leader that conducts business with both
businesses and consumers. The B2B and B2C facets of Coca-Cola are compared in this study, with a
focus on the main variations in distribution, marketing, and consumer interaction tactics.

Business-to-Business (B2B)
The main focus of Coca-Cola's business-to-business (B2B) operations is selling syrup concentrate and
beverage bases to bottling partners, who subsequently produce, package, and distribute the finished
goods. To make sure its goods reach final customers, the corporation works with distributors,
merchants, and bottlers.
1. Marketing: Coca-Cola uses focused marketing techniques in the B2B sector to entice distributors
and bottlers. These tactics frequently consist of marketing campaigns catered to the requirements
and inclinations of the business partners, co-branding chances, and promotional incentives.
2. Distribution: Coca-Cola has a wide-ranging B2B distribution network that includes alliances
with distributors and bottlers worldwide. To guarantee the prompt delivery of syrup and beverage
bases to its partners, the company employs advanced supply chain management and logistical
technologies.
3. Customer Engagement: Through consistent communication, educational initiatives, and after-
sales assistance, Coca-Cola cultivates strong bonds with its business-to-business clients. In order
to promote growth and success on both sides, the organization seeks to comprehend the particular
difficulties and chances that each partner faces.

Business to customer (B2C Activities)

In its business-to-consumer (B2C) activities, Coca-Cola sells completed beverages straight to
customers via a range of channels, such as restaurants, retail stores, vending machines, and online
shopping portals. To increase sales, the organization focuses on fostering strong brand loyalty and
interacting with customers.
1. Marketing: Coca-Cola use mass marketing strategies in the B2C industry to reach a large
audience. The business makes significant investments in sponsorships, social media campaigns,
and advertising to market its goods and establish a personal connection with customers.
2. Distribution: Coca-Cola has a vast global B2C distribution network that reaches a variety of
retail stores and food service venues. No matter where customers are located, the corporation
makes sure its items are easily accessible.
3. Consumer involvement: Coca-Cola prioritizes customer engagement in its business-to-consumer
(B2C) operations. The business learns about customer preferences through surveys, feedback, and
consumer insights, then adjusts its marketing and product offerings.

B2B and B2C Contrast for Coca-Cola Company

1. Target Audience: B2B operations of Coca-Cola focus on businesses such as bottlers and
distributors, whereas B2C operations target individual consumers.
2. Sales Process: The sales cycle for B2B is longer and involves negotiation and customization to
meet the specific needs of businesses. In contrast, B2C sales are more transactional and driven by
impulse purchases.
3. Marketing Approach: B2B marketing for Coca-Cola emphasizes educating and informing
businesses about the benefits of its products. On the other hand, B2C marketing focuses on
emotional appeal and building brand loyalty among consumers.
4. Distribution Channels: B2B products from Coca-Cola are distributed through specialized
channels that cater to businesses, while B2C products are distributed through mass retail outlets
and online channels.
5. Customer Relationship: B2B relationships are typically long-term and based on trust and mutual
benefit, while B2C relationships are often more transactional and less personal.
6. Product Complexity: B2B products from Coca-Cola, such as syrup concentrate and beverage
bases, are often complex and require technical expertise. B2C products, on the other hand, are
generally simpler and more intuitive for consumers.

Challenges and Opportunities

 Challenges: Coca-Cola faces challenges in balancing the needs of its B2B and B2C operations, as
well as in managing the complexity of its global supply chain and distribution network.
 Opportunities: The company has opportunities to leverage data analytics and digital technologies
to enhance its marketing and customer engagement efforts in both B2B and B2C segments.

Challenges Faced by the Coca-Cola Company

The Coca-Cola Company has faced several challenges over the years, including:
1. Adjusting Consumer Preferences:
Consumer demand for healthier beverages have undermined Coca-Cola's old sugary
soda business strategy. The corporation had to respond by offering low-calorie and
sugar-free options.
2. Health Concerns and Regulations:
Growing worries about obesity, diabetes, and other health issues linked to sugary drinks
have resulted in stronger controls and prices on soda in several countries. Coca-Cola has
had to deal with regulatory obstacles while also addressing public health concerns.

3. Environmental Sustainability:
As environmental consciousness rises; Coca-Cola has faced criticism for its
environmental practices. The organization has implemented attempts to increase
recycling rates and reduce plastic waste, but these efforts are still challenging.

4. Competition:
Coca-Cola confronts intense rivalry from both traditional rivals such as PepsiCo and
younger players in the beverage business. Competition puts pressure on pricing,
marketing, and innovation throughout time.

5. Global Economic Situation:

Economic slowdowns and currency fluctuations in important areas may have an impact
on Coca-Cola's sales and profitability. The corporation must handle these challenges
while retaining its global presence and market dominance.

6. Supply Chain disruptions:

Natural disasters, political instability, and pandemics (such as COVID-19) can all
disrupt the supply chain, affecting Coca-Cola's capacity to manufacture and distribute
products efficiently.

7. Changing Retail Situation:

The development of e-commerce and altering customer buying patterns have challenged
 traditional retail channels, forcing Coca-Cola to adjust its distribution and marketing
methods.

How Coca-Cola Addresses Problems

Here's a description of Coca-Cola's processes addressing the difficulties you highlighted,

minus the jargon.

1. Healthy Options for Changing Tastes:

Diet and sugar-free drinks: To appeal to health-conscious consumers, Coca-Cola has
expanded its line of low-calorie and sugar-free beverages.
Smaller portion sizes: It's releasing small cans and bottles to promote moderation.

2. Understanding Health Rules and Concerns:

Recipe reformulation: They are experimenting with natural sweeteners and decreasing the
sugar level of various drinks.
Transparency & education: Coca-Cola is attempting to be more honest about its ingredients
and cooperating with health groups to encourage responsible consumption.

3. Going greener:
Recyclable packaging: They are investing in more recyclable cans and bottles.
Coca-Cola is aiming to reduce the amount of water used in its production operations.
Partnerships: They work with waste management firms to increase recycling rates.

4. Maintaining the competitive edge:

They're continuously creating new beverage alternatives, such as flavoured waters, teas, and
juice drinks.
Targeted market: Coca-Cola adapts its marketing techniques to certain regions and
demographics.
5.Working with a Global Economy in Transition:
Localization: Coca-Cola tailors its product offers and price tactics to differing economic
conditions in different nations.
Diversification: They are broadening their product line to lessen dependency on sugary
beverages.
6. Durability in the Supply Chain:
Diversifying sources: Coca-Cola is collaborating with various suppliers to lessen the risk of
interruptions from a single source.
Improving in infrastructure: They are making their distribution and logistics networks
more versatile.
7. Adapting to the Changing Retail Landscape:
Online shopping presence: Coca-Cola is working with internet merchants to reach people
who purchase online.

STP of Coca-Cola B2B Business

Segmenting
Segmentation of Coca-Cola Brand in Context to B2B Macro Segmentation
In this report, we'll discuss how Coca-Cola segments its brand in the B2B market. By
dividing buying organizations into smaller groups based on various criteria, Coca-Cola can
effectively target and serve different customer segments. This segmentation approach
considers factors like the characteristics of the buying organization, product/service
application, purchasing situation, and other relevant details.
1. Geographic Segmentation: Coca-Cola segments its B2B market based on the
location of buying organizations. This allows the company to customize its marketing
strategies and offerings to meet the specific needs and preferences of customers in different
regions.
 Region (North America, Europe, Asia, etc.)
 Climate: Coca-Cola prioritizes distribution and marketing efforts in hot climates
where beverage consumption is naturally higher. They might offer seasonal
promotions or targeted product lines (sparkling water in hot summers).
 Urban vs. Rural: In urban areas, Coca-Cola focuses on convenience stores and
vending machine placements. In rural areas, they might partner with local distributors
to reach smaller retail outlets.
2. Customer Type Segmentation: Coca-Cola categorizes its B2B customers based on their
type of organization, such as restaurants, hotels, convenience stores, educational institutions,
and so on. This segmentation helps the company understand the unique needs and buying
patterns of different customer types. For instance, Coca-Cola may offer customized beverage
solutions for fast-food restaurants compared to healthcare facilities. This considers factors
like menu offerings, consumer demographics, and health regulations that vary between these
customer groups.
 Retailers (grocery stores, convenience stores)
 Wholesalers & Distributors
 Event organizers (stadiums, concert venues)
 Restaurants & Foodservice: Here, Coca-Cola offers fountain dispensers, exclusive
fountain flavors, and menu co-creation opportunities.
 Hospitality: Focus is on providing mini-fridges, customized room service options,
and potential co-branding with hotel chains.
 Wholesalers & Distributors: Coca-Cola offers volume discounts, efficient delivery
schedules, and sales incentives for these crucial partners in reaching retailers.
3. Customer Size Segmentation: Coca-Cola categorizes business customers by size – small
companies, medium-sized firms, and large corporations. This classification allows Coca-Cola
to customize pricing, packaging, and services for different organizations. Smaller businesses
might get flexible packaging options. Larger chains could receive bulk discounts or special
deals for buying beverages in huge quantities.
Large Corporations: Dedicated sales teams work with procurement departments, offering
customized solutions, data analytics on beverage trends, and long-term contracts.
 Providing smaller cafes with pre-mixed beverage syrups and user-friendly
dispensing systems for ease of use.
4. Product Use Segmentation: Coca-Cola identifies groups of B2B customers. It categorizes
them by how they use its products and what beverages they tend to consume. Doing so helps
Coca-Cola create specialized drinks and marketing plans. These are designed for various
usage scenarios.
 The company tailor’s product mixes as well. It assembles customized bundles meeting
specific customer needs. A convenience store, for example, may want smaller cans or
single-serve options.
 Consider a sports bar receiving a discounted package deal. It includes Coca-Cola,
Sprite, and Powerade (another Coca-Cola brand). This caters to diverse customer
preferences at the establishment.
5. Organizational Size: Coca-Cola considers the size of the buying organization, including
factors such as annual revenue, number of employees, and market presence. This helps Coca-
Cola allocate resources and prioritize customer relationships based on the potential impact
and value of each account. Smaller businesses might prioritize lower pricing and simpler
ordering processes. Larger corporations might have more complex purchasing structures with
dedicated procurement teams.
Focus on value proposition:
This includes streamlined product delivery, marketing assistance, sharing data insights, and
customized offerings tailored for each client.
Relationship building: Securing long-term contracts and loyalty often hinges on nurturing
these pivotal relationships.
Technical Expertise: The sales team may need specialized expertise to tackle specific re-
quests, like fountain equipment upkeep or integrating products with existing client systems
smoothly.
Using this macro segmentation strategy allows Coke to adapt its approach for each business
customer category. This helps maximize sales effectiveness while fostering mutually be-
neficial partnerships.*Conclusion:*

Targeting
The target strategies can be defined as follows, based on the segmentation analysis carried out
by CocaCola in the B2B market.
1.Landscape Targets:
The geographic location of purchasing organisations should be the focus of marketing efforts
and offers.
Consideration should be given to factors like climate, urbanisation and local preferences
when developing campaigns and distribution strategies for each region.
2. Types of customers targeted:
- Prepare products and solutions for certain types of organisations, including retailers,
wholesalers, event organisers, restaurants, hospitality services etc.
- Assess the specific needs and buying patterns of each type of customer and provide them
with tailored beverage solutions.
3. Targeting Great Customer:
- Provide businesses of all sizes, including SMEs and big companies, with high quality
pricing, packaging and service.
-Offer smaller business options and volume discounts or special deals for larger businesses.
4. Targeted applications:
- Capturing the B2B customer segments based on how they use CocaCola products and their
preferences for alcohol.
- To take into account different applications and preferences of consumers, develop
appropriate wine specialty marketing plans.
5. Target Organization Size:
-By allocating products according to the size of the procurement organization, prioritise
customer relationships.
- To offer personalised service and strategic partnership opportunities for larger accounts
through the use of automatic systems in lesser accounts.
6. Targeting the organization’s customer decision process and buying criteria:
-Design marketing messages, sales presentations, and offers to align with B2B customers’
decision-making processes and buying criteria.
- To optimise the supply chain in line with factors such as brand image, marketing support,
innovative and sustainable initiatives.

Positioning
1. Geographical Classification: Coca-Cola positions itself as a beverage partner that
understands and caters to the unique regional preferences and needs of B2B customers. It is
offering tailored solutions, seasonal promotions, and products to ensure satisfaction in the
markets of different areas, whether it is hot climates craving refreshing drinks or urban areas
seeking comfort.
2. Customer Type Breakdown: In the B2B sector, Coca-Cola positions itself as a beverage
manufacturer catering to the specific needs of different customers. It ensures that every
customer's business goals are matched and consumer volumes correspond to each other, from
providing beverage solutions for fast food restaurants to installing opportunities in small
fridges within hospitality chains.
3. Customer Size Distribution: Coca-Cola positions itself as a beverage partner that can
serve all kinds of businesses, from small coffee shops to large corporations. It ensures that
every organisation, whether it is simplifying the ordering process for small businesses or
creating specialised sales teams and data analysis for big companies, receives its specific
attention and value through flexibility in prices, packaging, and service.
4. Classification of Resources: Coca-Cola is a beverage innovator catering to the needs of
B2B customers. It offers a comprehensive range of products tailored to the specific needs of
its customers, ensuring optimal and relevant satisfaction for all categories of products, such
as sports drinks for fitness centres, fountain beverages at fast food restaurants, or bottled
water for corporate functions.
5. Organisation Size: Coca-Cola positions itself as a strategic partner that understands and
meets the unique needs of organisations based on their size and market position. To ensure
efficient distribution and the highest possible value for every customer segment, Coca-Cola
provides specialist account managers, personalised services, partnerships with large
international customers, and the use of an automatic system for small accounts.
6. Organisational customer’s decision-making process and buying criteria:By matching
B2B consumer decision-making processes and purchasing values, Coke positions itself as the
beverage of choice. Coca-Cola is ensuring that its marketing messages, sales presentations,
and offers reflect the priorities and preferences of all stakeholders in such a way as to lead to
mutually beneficial relationships, whether.
It is likely that Coca-Cola's B2B targeting strategies are built on its distribution channel, focusing
products on the consumer segments that are useful and strategically valuable Here is a breakdown of
the strategies it can use set their sights:

Targeting strategies
1. Focusing on High-Volume Accounts:
• National distribution networks, large distributors or major convention centres with
high sales potential must be identified.
• Developing dedicated account management teams with a deep understanding of these
customers’ needs and buying behaviour.
• To build enduring partnerships, sell fixed prices, promotion programs and co-
marketing.

2. Targeting specific types of customers:

• Based on the characteristics of the customer, take a marketing approach.
• For instance, highlight menu integration suggestions for restaurants or highlight the
effectiveness of concession stands in the theatre.
• Targeted content, such as recipes or promotions, which are specific to each segment's
needs, shall be created.

3. Geographic Targeting:
• Customized marketing and distribution channels based on regional priorities and
market dynamics.
• Coca-Cola, for example, may push sugar-free options further in health-conscious
markets.
• Get local distributors who know the details of their particular geographical area to
help you.

4. Targeting by Occasion and Need:

• The following special events, such as sports and music festivals with high levels of
alcohol consumption, should be identified.
• During these periods, conduct targeted promotional campaigns or contribute to the
increase of brand awareness and product sales.
 • In order to obtain exclusive distribution opportunities for beverages, cooperate with
the event organizers.

5. Leveraging Data-Driven Targeting:

• To determine the highest value segments and to set future needs, analyse previous
purchasing records.
• To understand customers' attitudes and shopping habits, use the insights gained by
Social Listening.
• Personalize deals with targeted email campaigns or social media ads based on
customer data.
Corporate Strategy
Businesses
Beverage Portfolio - Coca-Cola provides numerous beverage options beyond its famous
soft drink to businesses. Their offerings include juices, water, sports drinks, teas, and
coffee. This diverse range caters to different customer preferences and occasions for
consumption in various establishments such as restaurants and convenience stores.
Syrups and Concentrates - The foundation of Coca-Cola's B2B operations lies in
supplying bottling partners with syrups and concentrates. These concentrated forms are
mixed with water, carbonated, and bottled by the partners under Coca-Cola's licensing
agreement.

Core Competencies
Product Innovation: Coca-Cola constantly experiments with new flavors, formulas, and
drink categories, even though its classic product remains iconic. This keeps their offerings
fresh and caters to changing consumer preferences.
Brand Recognition: Coca-Cola's brand is one of the most recognized globally, with its
logo ranking among the world's most identifiable symbols.
Distribution Network: Coca-Cola has an extensive and efficient distribution network.
They partner with independent bottling companies worldwide, ensuring their products are
readily available everywhere.
Marketing Expertise: Coca-Cola has a long history of creating successful marketing
campaigns. Their expertise lies in crafting compelling narratives, building emotional
connections with consumers, and staying relevant in a dynamic market.

Business-Level Strategies
eCommerce Platforms: Platforms like MyCoke.com allow for smoother ordering,
communication, and data sharing between Coca-Cola and its bottling partners.
Artificial Intelligence: Coca-Cola is exploring AI to personalize recommendations for
bottlers, optimize inventory management, and streamline sales processes.
Targeted Campaigns: Coca-Cola tailors its marketing campaigns to specific regions and
consumer segments. This allows them to connect with their audience on a deeper level
and create targeted messaging that resonates.
Functional Strategies
Marketing: Design customized marketing initiatives tailored to specific geographic areas,
consumer profiles, and beverage types. Utilize platforms like social media, influencer
partnerships, and local event sponsorships to reach target audiences. Establish unified
messaging that aligns with Coca-Cola's brand identity and resonates with customers on an
emotional level. Maintain consistency across all marketing channels to enhance brand
recognition and recall.
Product Development: Research and develop novel beverages to align with changing
consumer demands, including sugar-free, healthier options, and new categories. Focus on
improving the sustainability, healthiness, and overall formula of current beverages.

Supply Chain Management

The supply chain team would streamline transportation and logistics to ensure timely and
cost-efficient delivery of Coca-Cola products to distributors and retailers. They would
prioritize the use of eco-friendly ingredients and enact initiatives to minimize the company's
environmental impact through sustainable practices.

Finance: The finance department would distribute money to various departments and
projects, making sure that these expenditures follow the company's overall strategy. They
would also find and invest in opportunities that help Coca-Cola grow in the long run.
Factors such as geographical location, customer characteristics, size, and brand are likely to
be taken into account by the B2B segmentation of Coca Cola. They are aimed at a large
number of accounts, specific customer groups and events. Here are the ways we can improve:
• Sustainability Focus: Environmentally friendly packaging solutions distributed by
environmentally conscious businesses.
• Data-driven strategies: Use Artificial Intelligence to dynamically price, personalised
products and predict the needs of customers.
• Ultra-local marketing: Partnering for local events and targeted promotion with local
influencers and entrepreneurs.
• Digital solutions: Development of mobile ordering platforms and the integration of
digital payments into emerging markets.
• Gamified Loyalty: Gamification elements to encourage sustainable behaviour will be
implemented in the B2B loyalty scheme.
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