FOREIGN TRADE UNIVERSITY

HCMC CAMPUS
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MID-TERM REPORT ASSIGNMENT

COCA-COLA’S MARKETING PLAN

Lecturer: Nguyễn Thị Thu Thảo

Course Title: Principles of Marketing

Group: 4

Bùi Phương Anh Duyên - 2212155065

Nguyễn Hồng Liên Chi - 2212155049
Lê Gia Bảo Hân - 2212155077
Lê Thị Mai Khanh - 2212155100
Mai Hương Trà - 2211155018
Huỳnh Thị Tú Uyên - 2211155022
Phan Đỗ Quỳnh Dương – 2212155064

Ho Chi Minh City, March 2024

 Table of Contents

1. Executive summary.............................................................................................................................
2. Situation analysis.................................................................................................................................
2.1. Market Summary..........................................................................................................................
2.2. Market growth..............................................................................................................................
2.3. Market trend.................................................................................................................................
2.4. PESTLE Analysis.........................................................................................................................
2.5. Market share.................................................................................................................................
3. Company Introduction.......................................................................................................................
3.1. The difference in insights between Coca-Cola and Pepsi............................................................
3.2. Coca-Cola’s sales, cost, and profits in the last 5 years................................................................
4. Marketing strategy..............................................................................................................................
4.1. Target market...............................................................................................................................
4.1.1. Customer portrait (demographics).......................................................................................
4.1.2. Pain points...........................................................................................................................
4.2. Value chain comparison among competitors...............................................................................
4.2.1. Primary Business Activities................................................................................................
4.2.2. Supporting business processes............................................................................................
4.3. Positioning....................................................................................................................................
4.3.1. Points of parity (POP) and points of difference (POD).......................................................
4.3.2. Value proposition................................................................................................................
4.3.3. Perceptual map....................................................................................................................
4.3.4. Brand mantra.......................................................................................................................
4.4. Marketing Mix.............................................................................................................................
4.4.1. Coca-Cola’s Products vs. Competitors’ Products...............................................................
4.4.2. Coca-Cola’s Price vs. Competitors’ Price...........................................................................
4.4.3. Coca-Cola’s Place vs. Competitors’ Place..........................................................................
4.4.4. Coca-Cola’s Promotion vs. Competitors’ Promotion..........................................................
5. Conclusion............................................................................................................................................
References................................................................................................................................................
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1. Executive summary
Coca-Cola is a renowned global beverage company. With a more than 130-year
history, the company has continued to dominate the non-alcoholic beverage industry with
its iconic brand and widespread popularity all over the world. Although there are other
competitors such as Monster Beverage Corp, Keurig Dr Pepper Inc, etc., this industry
seems to be the playground of only 2 biggest market leaders - Coca-Cola and PepsiCo.
Our report will cover the current situation of Coca-Cola and the non-alcoholic
beverage industry, showing how the company manages its competitive advantages, and
value proposition to secure its positioning in the market. Tools such as PESTEL analysis,
Value Chain analysis, and marketing mix strategy analysis are used to conduct a thorough
assessment of the company’s standing in the industry. Our group also uses comparative
analysis to distinguish the differences between Coca-Cola and its biggest rival - PepsiCo.
Although the market leader position is already set, the beverage industry’s still
providing Coca-Cola with opportunities for further growth. The brand's global recognition
coupled with its unique flavor and effective marketing strategies, allows Coca-Cola to
connect with its consumers on an emotional level, engage them, and foster brand loyalty
that differentiates it from competitors. With consumer preferences shifting towards
sustainability and humanitarianism nowadays, Coca-Cola can improve its brand image
and attract a wider customer demographic by embracing green initiatives and advocating
for peace.
2. Situation analysis
2.1. Market Summary
Coca-Cola is well-informed about its target market and understands thoroughly the
most-priced customers. We analyzed the market trend, and growth with some
macroeconomic factors to understand how Coca-Cola can maintain being the most
consumed drink in almost every country.
2.2. Market growth
The size of the global non-alcoholic beverage market was estimated at USD 994.01
billion in 2021 and is expected to increase at a compound annual growth rate (CAGR) of
8.56% from USD 1077.35 billion in 2022 to USD 1879.91 billion by 2030. The Coca-
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Cola operating income increased 46 percent to $641 million and total revenues increased
11.5 percent to more than $6.2 billion, with $6 billion coming from non-alcoholic
beverages.

2.3. Market trend

Up to now, sparkling water offers superior alternatives to soda. Therefore, the most
recognized non-alcoholic beverage - Coca-Cola, is now available in more than 200
countries and territories.
Today's sparkling water consumers are mostly from the millennial and Gen Z
generations. Their preferences have significantly influenced the overall direction of many
consumer-driven industries, especially the food service sector, due to their obvious
dominance in the marketplace. The current generation is choosing foods and drinks with
less sugar and more nutritional value since they are more concerned about their health. In
2023, Coca-Cola Zero Sugar's volume sales increased by 5%, more than twice the 2%
growth rate of the company's entire portfolio (Niamh, 2024).
Furthermore, there has been a growing emphasis on reducing the environmental
impact of packaging, which has led the industry to create sustainable and eco-friendly
packaging options (Sonali, 2023). Reducing the usage of single-use plastics and utilizing
recyclable materials are part of this. Businesses are under pressure from the popular
sparkling beverage market to adopt sustainable practices. Coca-Cola established sixteen
closed-loop economies across our domain. Nearly 285 million bottles were gathered and
recycled into new bottles as a result of their activities in 2022. Coca-Cola is still working
to improve the sustainability of its packaging. They launched the first bottle in history—
complete with a plant-based plastic cap and label—in 2021. Plant-based packaging
reduces our reliance on virgin, fossil fuels and supports our aim of having 100% of our
cans and bottles reusable.
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2.4. PESTLE Analysis

Political:
Coca-Cola is subject to several laws and rules in several nations regarding the safety
of food and beverages, labeling, advertising, and environmental requirements. Moreover,
changes in the tax code for environmental taxes or sugar taxes may affect Coca-Cola's
expenditures and profits.
Economic:
The condition of the economy as a whole, including GDP growth, consumer
spending, and disposable income levels, has an impact on Coca-Cola's sales and revenue.
As inflation rates rise, Coca-Cola may have to pay more for production, which might have
an impact on its pricing policies and profit margins.
Social:
As people become more conscious of health issues, the market for sugar-filled
beverages may fall and affect Coca-Cola's sales of traditional sodas.
Technological:
Since Coca-Cola makes money from franchising and marketing, Coca-Cola can
increase customer interaction, personalize marketing campaigns, and boost supply chain
efficiency by utilizing technological advancements including digital marketing, e-
commerce, and data analytics.
Legal:
Coca-Cola is bound by many rules and regulations. Food safety and quality
standards are to keep the trust of customers and fulfill legal obligations in different
countries. Advertising rules and regulations include prohibitions on marketing to minors
and making health claims.
Environmental:
To reduce environmental effects and maintain long-term economic resilience, Coca-
Cola's operations rely on the sustainable use of natural resources (water and energy), at
the same time, Coca-Cola needs to address the issue of plastic waste and take steps to
reduce trash and recycling.
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2.5. Market share

Companies that have been able to understand consumer behavior and introduce
innovative goods have caused the carbonated beverage industry to grow both in terms of
market share and size. In 2022, Coca-Cola held a 46.3% volume share in the United
States, while Pepsi’s data was 24.7%.
Leading carbonated soft drink (CSD) companies in the United States in 2022.

Source: Statista 2024.

3. Company Introduction
3.1. The difference in insights between Coca-Cola and Pepsi
● Coca-Cola:
Mission: “To refresh the world in mind, body, and spirit. To inspire moments of
optimism and happiness through our brands and actions.”
Vision: “Loved brands, done sustainably, for a better shared future”
Purpose: “Refresh The World. Make A Difference.”
Coca-Cola focuses on emotional branding with campaigns that give people a feeling
of joy, togetherness, and shared experience; their “open happiness” and "Share a Coke”
can be used as an example; it has been successful in promoting a positive brand image
across different regions.
● Pepsi:
On the other hand, Pepsi has relied heavily on entertainment, teaming up with
notable stars and important occasions to win young people over. Focusing on digital
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platforms and social media engagements allowed them to create interactive and viral
content that gets people talking and sharing online.
3.2. Coca-Cola’s sales, cost, and profits in the last 5 years
In 2020, Coca-Cola’s revenue was severely affected and dramatically decreased due
to COVID-19 restrictions. However, from 2021-2023, Coca-Cola witnessed a strong
growth in post-covid, reaching 45.75B in 2023.

Coca-Cola Revenue (Annual) from 2019-2023. Source: YCHARTS, 2024.

4. Marketing strategy
4.1. Target market
4.1.1. Customer portrait (demographics)

In general, Coca-Cola and PepsiCo share similar customer profiles. They have
established a global presence, catering to consumers in both urban and rural areas. Their
target demographic primarily consists of teenagers and young adults, spanning from
average earners to those with higher incomes. Across both brands, their customers are
loyal, regular consumers, expect refreshing beverages with great taste. Additionally, both
companies have adapted to changing consumer preferences by offering sugar-free cola
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alternatives. This reflects a growing trend of people prioritizing their health and well-
being.
Although Coca-Cola and PepsiCo target similar demographics, disparities emerge in
their segmentation strategies. PepsiCo typically excludes young children and elderly
individuals from their target consumers, while Coca-Cola's approach encompasses a
broader age range, including those over 40. This inclusivity reflects themes of unity and
togetherness within Coca-Cola's branding. These themes are further emphasized through
sponsorships of sports events, fostering a sense of community. In contrast, PepsiCo's
marketing tactics focus on collaboration with pop stars, influencers, and events like the
Super Bowl halftime show or Rap Viet, appealing more directly to younger audiences.
The manifestation of these themes will become clearer in subsequent discussions.
4.1.2. Pain points
Product safety & quality
Coca-Cola’s customers are mostly about finding a high-quality product without
much harm to health. This is especially true with the case of soft drinks, which have
always been deemed unhealthy products.
Facts and rumors
With the development of technology, consumers now have access to various sources
of information, and the risk of misleading information from some resources has also
appeared.
Obesity
One of the major issues concerning public health is obesity. Consumer protection
organizations have frequently criticized the food and beverage industry for contributing to
the rising rate of obesity, particularly among young people.
4.2. Value chain comparison among competitors
Coca-Cola’s value chain gives in-depth details about making a brand successful. A
generic value chain model, presented by Michael Porter, consists of a series of tasks
shared by many different types of businesses:
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4.2.1. Primary Business Activities

● Inbound logistics
Coca-Cola values diversity among its over 1000 suppliers. They spend at least $1
billion on diverse suppliers every year (The Coca-Cola Company, 2023). Coca-Cola has
over 300 bottling partners in the world (The Coca-Cola Company, 2024). Its competitive
advantage over competitors in inbound logistics lies in the extensive supplier network,
instead of franchises, Coca-Cola relies on partnerships with bottling companies
worldwide, while PepsiCo gets substantial ownership of its bottling operations so they
have greater control over production and distribution.
● Operations
Coca-Cola operates as a decentralized system. The Coca-Cola Company fabricates
the treacle and sells it to Coca-Cola Enterprises for production, distribution, and sales.
The Coca-Cola Company only produces a syrup concentrate which it sells to over 300
bottlers worldwide (The Coca-Cola Company, 2024). Finished product operations consist
primarily of company-owned or -controlled bottling, sales, and distribution operations.
This approach allows for flexibility in adapting to diverse market conditions (The Coca-
Cola System 2011). PepsiCo, however, manages the entire production process internally,
ensuring control over ingredient quality and production consistency but requires
managing a complex network of manufacturing facilities.
● Outbound Logistics
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Coca-Cola boasts the world's largest beverage distribution system, reaching over 200
countries (The Coca-Cola Company, 2023) through a mix of channels. Their focus on
efficient warehousing and bulk shipping minimizes costs and enhances overall logistics
efficiency, while their spoke-hub outbound logistics prioritize timely deliveries, safe
transportation, and relationships with customers (Fan et al., 2022). This contrasts with
PepsiCo's approach, which utilizes a mix of direct store delivery (DSD) and centralized
distribution for its outbound logistics.
● Marketing & Sales
Coca-Cola’s annual revenue for 2022 was $43 billion, and organic revenues grew
12% (The Coca-Cola Company, 2024). However, PepsiCo surpassed Coca-Cola with
over $86 billion. PepsiCo's broader international presence and diverse product portfolio,
contribute to its higher revenue while Coca-Cola mainly concentrates on beverages.
One of Coca-Cola's competitive advantages is its ability to adapt its strategies to
different markets while maintaining a unified global vision. Tailoring promotions to each
country's unique traits, the company ensures brand consistency worldwide. With a direct-
to-customer sales approach across various channels, Coca-Cola emphasizes nostalgia,
family values, classic taste, iconic red branding, and distinctive bottle design for instant
recognition, while PepsiCo changes its logo more often and takes an active, fresh
approach targeting a younger crowd with celebrities (Growth Navigate, 2023).
● Service
The service that Coca-Cola applies brings significant value to the consumers and the
company. Prioritizing authentic consumer experiences, Coca-Cola offers customer
support through online chat with a virtual agent and a dedicated customer service phone
line on their official website. Their website features a detailed FAQ section covering
product information and addresses brand-related rumors directly and indirectly, enhancing
customer engagement and satisfaction. (Dudovskiy, 2015).
4.2.2. Supporting business processes
● Firm Infrastructure
Established in 1886, Coca-Cola is the world's largest soft drinks manufacturer,
dominating the Carbonated Soft Drink industry (The Coca-Cola Company, 2023). Coca-
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Cola focuses on beverages, with an emphasis on building an empire of drinks that include
soda, water, tea, juices, and other beverages. The company's operational structure divides
its markets into different divisions globally to manage its extensive product lines
effectively. In contrast, PepsiCo's infrastructure is more diversified between beverages
and food, leveraging its iconic brands.
● Human Resource Management
Given its worldwide presence, the company tailors policies to accommodate cultural
and political differences across departments. They recruit, develop, and offer chances for
individuals to learn and develop in a safe environment. Coca-Cola prioritizes employee
motivation and company participation through compensation packages, prize packages,
and a supportive work environment.
● Technology Development
Coca-Cola has 6 global R&D centers linked to external technology and assessment
hubs connecting it with partners, tech start-ups, and university researchers (The Coca-
Cola Company, 2023). Leveraging virtual reality, augmented reality, smart glasses,
XAssist tech, and other innovations, Coca-Cola gains significant supply chain advantages.
Aside from products, Coca-Cola also invests in packaging, equipment, production, and
marketing innovation. Both Coca-Cola and Pepsi are at the forefront of technological
innovation in the beverage industry. PepsiCo has incorporated digital technologies and
robotics in its supply chain to improve distribution, automate supply chain and inventory
management, as well as utilize AI tools to analyze vast data on consumer preferences.
● Procurement
Coca-Cola, through its Coca-Cola Bottlers' Sales & Services Company (CCBSS),
strategically sources specific categories of products and services on behalf of the Coca-
Cola bottling system in North America (CCBSS, 2020). They manage billion-dollar
categories like packaging, ingredients, transportation, merchandising materials, coolers,
and beverage cases. On the other hand, PepsiCo has a decentralized structure that allows
local bottlers to determine the products they pack and sell based on their assessment.
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4.3. Positioning
4.3.1. Points of parity (POP) and points of difference (POD)
Pepsi is the main rival of the Coca-Cola brand worldwide. Nonetheless, with a
market capitalization of USD 87.6 billion, Coke, as a branded house, has the largest
market share (Statista, 2021). This is made possible by the POP and POD strategies,
which are covered in the table below.

Points of parity Points of differences

1. Refreshing 1. Emotional appeal towards customers

2. Historic brand 2. Shares joy and spreads love to friends
3. Symbolic and family
4. Contemporary
5. Up-to-date with “glocal” strategy

Whereas Pepsi, Coca-Cola’s major competitor, has positioned its products as

youthful, energetic, and trendy, what makes Coca-Cola stand out is the brand’s
connection with the emotional feelings of its consumers. Ever since its introduction,
Coca-Cola has proved to be a brand that brings happiness, joy, and warmth to the public
through its products. This is better illustrated through its value proposition (Classic,
authentic taste, happiness, and tradition), and has remained consistent in the new context.
4.3.2. Value proposition

Pepsi Coca-Cola

Value Classic, Authentic taste, Happiness,

Trendy, Youthful, and Choice
proposition and Tradition

Pepsi positions itself as a more youthful

They focus on the heritage and
and progressive brand. Their marketing
emotional connection consumers have
often features youthful celebrities (such
with their brand. Their marketing
Focus as pop singers and those famous among
emphasizes feelings of nostalgia,
the younger generations) and targets a
happiness, and togetherness associated
trend-conscious audience who value
with drinking a Coke.
having options and staying up-to-date.

Target Target a younger demographic who Leans towards those who value
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prioritize being in the know and

Market tradition and a familiar taste.
enjoying new experiences.
Compared to its competitor, which is Pepsi, Coca-Cola goes for a more traditional
brand that emphasizes the emotional aspects of its consumers’ “Open Happiness”. That is
why Coca-Cola’s marketing strategies mainly focus on feelings associated with drinking
the drinks. Meanwhile, Pepsi positions itself as a youthful brand, which drives its
strategies for celebrity endorsement, especially those popular among younger generations
of consumers.
4.3.3. Perceptual map
The following perceptual map indicates the positioning of Coca-Cola among other
soft drink brands.

Perceptual Map for Soda (Soft drinks) in terms of demographics (from kids to
adults) and style of brand (from indifferent to emotional).
Two products by Coca-Cola in this map include:
● Coca-Cola:
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6 (Demographics) – A classic soda enjoyed by people of all ages, but more often
associated with adults due to its taste and branding.
1.5 (Style of brand) – Strong emotional branding with nostalgic, happy, and
heartwarming advertisements, fostering a deep connection with consumers.
● Coke Zero Sugar:
7.5 (Demographics) – Marketed more towards adults who want to enjoy the taste of
Coca-Cola without the sugar and calories.
8 (Style of brand) – Positioned as a healthier alternative to Coca-Cola, its branding
is more practical and less emotional.
4.3.4. Brand mantra
"Open happiness" can be summed up as the Coca-Cola mantra and tagline. As a
mantra, it perfectly captures the brand's dedication to using every product to improve
people's lives by spreading happiness, positivity, and a sense of community. This serves
as a tagline and is a fundamental component of the brand identity.
4.4. Marketing Mix
The concept of “marketing mix” refers to a business’s foundation model, which has
traditionally focused on product, pricing, place, and promotion.
4.4.1. Coca-Cola’s Products vs. Competitors’ Products
Coca-Cola and PepsiCo differ quite a lot in their product offering. While Coke
concentrates on soft drinks, Pepsi participates in the snack food industry.
PepsiCo’s business plan differs from that of Coca-Cola. Coca-Cola accounts for
more than 80% of its beverage sales, whereas PepsiCo generates less than 23% of its
income from this segment. As can be observed, PepsiCo is not overly reliant on the
carbonated soft drink sector, implying that PepsiCo will reduce risks in this market.
PepsiCo is rated fourth in the world for food and beverage, and customers are aware of
the PepsiCo brand. Customers will be persuaded to consume the items after seeing the
products of powerful brands, boosting the corporation’s income. Tropicana, Aquafina,
Pepsi, Lay’s, Quaker, Doritos, Walkers Crisps, and other brands are parts of the PepsiCo
Group. This demonstrates that Pepsi is advantageous in targeting distinct client groups by
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marketing items from various product groupings. Pepsi, on the other hand, may target the
same client segment with several goods.
However, Coca-Cola holds a 43.7% market share of global sales in the non-
alcoholic beverage industry. Thus, Coca-Cola has a commanding lead over its
competitors, with nearly half of the global sales in the industry. Coca-Cola has a
centralized focus on the beverage industry, with a presence in numerous and different
beverage categories such as Dasani, Fanta, Sprite, Minute Maid, Nutriboost, 7Up,...
4.4.2. Coca-Cola’s Price vs. Competitors’ Price
Coca-Cola employs a pricing strategy called "price discrimination" to target
different markets with different prices. This is possible because the beverage market is an
oligopoly that has few large producers and many customers. They adjust their prices
based on location, customer needs, and even what their competitors are charging.
In price-sensitive areas with lots of competition, Coca-Cola sets lower prices to gain
market share. This drives out smaller competitors and leaves Coca-Cola dominant. Once
they have control of the market, they raise prices again for higher profits.
Their competitors use similar tactics but with some variations. Pepsi, for example,
might target a younger audience and adjust their prices as well as purchasing power
accordingly.
Overall, Coca-Cola's strong brand, global reach, and diverse product line allow them
to use this strategy very effectively. This, combined with their competitive pricing tactics,
helps them stay on top of the market while reaching a wide range of customers.
4.4.3. Coca-Cola’s Place vs. Competitors’ Place
Coca-Cola has adopted a strategy that places it as the most preferred brand all over
the world. The main contributor to this success has been the exemplary distribution
system. Coca-Cola's distribution system is aligned according to the FMCG distribution
network. At the apex of the channel, Coca-Cola sells its beverages to canning and bottling
industries, channels of wholesale distributors, and retailers. The channels go on to
distribute the beverage to fellow retailers, like gas stations, convenience stores,
supermarkets, and hotels.
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Coca-Cola's channels of distribution are among the best planned and executed when
compared to other beverage companies. The effect is so staggering on its loyal customers
that even wholesale distributors and retailers need the product for their business to run
smoothly. This is because Coca-Cola has a number one position in the minds of
consumers. The place strategy ensures high visibility and makes Coca-Cola available all
over the world, even in dense rural areas.
An analysis of Coca-Cola distribution strategy and positioning shows that it has
eliminated the middlemen and small-level players. This has given the company a
staggering market share and dominance in the market.
When it comes to competitors in the “distribution game”, Coca-Cola's primary rival,
Pepsi-Cola, possesses a strong distribution network, posing a constant challenge to their
dominance. However, it might not be as extensive or deeply ingrained in certain markets
as Coca-Cola's network.
4.4.4. Coca-Cola’s Promotion vs. Competitors’ Promotion
In the fast-moving consumer goods (FMCG) industry, the long-lasting rivalry
between two soft drink brands that are known as Coca-Cola and Pepsi has always been a
heated topic of discussion. It can be stated that the difference in target markets and
proposition results in the primary differences between the two mentioned beverage
brands.
In the 80s, Coca-Cola was the standard drink that parents opted for whenever they
wanted to calm their children. Through many decades, Coca-Cola has been extremely
successful in marketing one line of products with little to no change. Therefore, their
campaigns aim to connect with families and evoke a sense of nostalgia. However, in
1985, Pepsi launched a marketing campaign with the purpose of “overtaking” their rival,
with the slogan: “The choice of a new generation”. Hence, the target market of Pepsi
nowadays is still the younger who are energetic with a great deal of passion.
For brands, the logo is viewed as the brand’s identity and ambassador. Both Coca-
Cola and Pepsi have their own unique story to portray through their branding. While
Coca-Cola has remained consistent with its logo design since 1887, Pepsi has modified its
logo 11 times over 110 years. Coca-Cola’s sticking to a certain logo creates trust and
 15

security in customers. Furthermore, the logo is simple, easy to remember, creates a

difference, and stands out from its competitors. For its main rival - Pepsi, the frequent
logo changes can be seen as an effective advertising strategy that helps the brand keep up
with market trends and attract the attention of customers, especially young people.
Moreover, it can create an impression of a dynamic and creative company that is always
ready to change to meet market needs. However, this constant change can also confuse
consumers because it makes it more difficult to recognize the brand and creates a feeling
of alienation and lack of connection with the long-standing brand. To conclude, Pepsi
uses its logo to express innovation and attract young people, while Coca-Cola uses its
logo to create trust and connect with customers.
The slogan is not only a tagline that’s purely created for advertisement campaigns
but plays a key role in shaping the brand’s long-term campaigns and overall branding.
With that in mind, both Coca-Cola and Pepsi have chosen slogans that are suitable for
their vision and future development. The message from “Big Man” Coca-Cola focuses on
eliciting heartwarming, classical, and comfortable feelings through some of its prominent
taglines. Different from Coca-Cola, Pepsi chooses to amplify the voices of some of the
hottest global influencers. In the promotional video, Cardi B was roleplaying as “Santa
Claus”. With the 2019 campaign, Pepsi became a huge obstacle to Coca-Cola - who
previously experienced immense success with their usage of Santa Claus in their
Christmas campaigns.
5. Conclusion
This report aims to survey the current state of Coca-Cola Co. to further understand
the strategic marketing plan behind the success of the company. By employing robust
analytical tools and market research data, we have gained valuable insights into the
company’s matching competitive advantages, value proposition, and strategic positioning
to see why Coca-Cola is described as the market leader in this industry.
The company's enduring success can be attributed to several key core competencies
which lie in its brand image, extensive distribution network, global presence, and
historical reputation. These factors link significantly to its competitive advantages. The
company distinct itself from competitors with a diverse product portfolio, widespread
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availability, and especially, a global brand recognition that fosters trust and loyalty among
customers.
Meanwhile, Coca-Cola’s value proposition centers on delivering refreshing,
premium beverages that evoke positive emotions. Their positioning emphasizes emotional
connections and tradition with a focus on feelings of nostalgia and happiness. Along with
that is the balanced marketing mix between their product - continual innovation and
expansion to various segmentations; price - affordability with premium offerings; place -
global and extensive distributions through partnerships; and promotion - 360-degree
marketing strategies; are factors that set Coca-Cola apart from its biggest rival - PepsiCo,
and ranked at the top in the market.
However, several mismatches do exist in Coca-Cola’s situation. Compared to Pepsi,
Coca-Cola lacks diversification in terms of food categories, which puts the company at
risk of being surpassed by Pepsi with larger revenue. The company should focus strongly
on flavor innovation and still beverage expansion to compensate for the lack. Coca-Cola
can consider diversifying its product portfolio to other categories besides its drink empire.
Furthermore, the brand is exposed to market trends such as health and wellness,
sustainability, and digital transformation, etc. They must adapt by remaining agile; being
proactive and responsive to stay ahead of the competition as market dynamics are fast-
paced changing. Additionally, Coca-Cola should leverage its brand status since this is the
major factor for the company’s success. Plus, focusing on streamlining processes;
learning from rivalry as well as continued marketing innovation could help sustain
momentum moving forward. Continuously enhancing customer benefits while managing
costs using a consumer-centric approach is also recommended.
In summary, Coca-Cola’s strategic alignment, competitive advantages, and
commitment to consumer satisfaction position it as a timeless beverage leader. By
addressing challenges and embracing opportunities, Coca-Cola can maintain its iconic
status in the ever-evolving beverage industry.
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