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Coca-Cola Marketing - Essay Example

Eight hundred miles away, another great American symbol was about to be unveiled. Like many people who change history, John Phenomenon, an Atlanta pharmacist, was inspired by simple curiosity. One afternoon, he stirred up a fragrant, caramel-colored liquid and, when it was done, he carried it a few doors down to Jacobs’ Pharmacy. Here, the mixture was combined with carbonated water and sampled by customers who all agreed this new drink was something special. Jacobs’ Pharmacy put it on sale for five cents a glass.

Phenomenon’s bookkeeper, Frank Robinson, named the mixture Coca-Cola, and wrote it out in his distinct script. To this day, Coca-Cola Is written the same way. In the first year, Phenomenon sold Just 9 glasses of Coca-Cola a day. A century later, The Coca-Cola Company has produced more than 10 billion gallons of syrup. Unfortunately for Phenomenon, he died in 1888 without realizing the Coca-Cola History The Coca-Cola Company re-entered India through its wholly owned subsidiary, Coca- Cola India Private Limited and re-launched Coca-Cola in 1993 after the opening up of the Indian economy to foreign investments in 1991.

Since then its operations have grown rapidly through a model that supports bottling operations, both company wend as well as locally owned and includes over 7,000 Indian distributors and more than 2. 2 million retailers. Today, our brands are the leading brands in most beverage segments. The Coca-Cola Company’s brands in India include Coca-Cola, Fan Orange, Lima, Sprite, Thumb Up, Burn, Kinney, Amaze, Minute Maid Pulpy Orange, Minute Maid Nimbi Fresh and the Georgia Gold range of teas and coffees and Voting (a beverage fortified with micro-nutrients).

In India, the Coca-Cola system comprises of a wholly owned subsidiary of The Coca-Cola Company namely Coca-Cola India Pet Ltd which manufactures and sells concentrate and beverage bases and powdered beverage mixes, a Company-owned bottling entity, namely, Hindustan Coca-Cola Beverages Pet Ltd; thirteen licensed bottling partners of The Coca-Cola Company, who are authorized to prepare, package, sell and distribute beverages under certain specified trademarks of The Coca-Cola Company; and an extensive distribution system comprising of our customers, distributors and retailers.

Coca- Cola India Private Limited sells concentrate and beverage bases to authorized bottlers who are authorized to use these to produce our portfolio of beverages. These authorized bottlers independently develop local markets and distribute beverages to grocers, small retailers, supermarkets, restaurants and numerous other businesses. In turn, these customers make our beverages available to consumers across India. The Coca-Cola system in India has already invested USED 2 Billion till 2011, since its re- entry into India.

The company will be investing another USED 5 Billion till the year 2020. The Coca-Cola system in India directly employs over 25,000 people including those on contract. The system has created indirect employment for more than people in related industries through its vast procurement, supply and distribution system. We strive to ensure that our work environment is safe and inclusive and that there are plentiful opportunities for our people in India and across the world. The beverage industry is a major driver of economic growth.

A National Council of Applied Economic Research (NCAR) study on the carbonated soft-drink industry indicates that this industry has an output multiplier effect of 2. 1 . This means that if one unit of output of beverage is increased, the direct and indirect effect on he economy will be twice of that. In terms of employment, the NCAR study notes that “an extra production of 1000 cases generates an extra employment of 410 man days. ” As a Company, our products are an integral part of the micro economy particularly in small towns and villages, contributing to creation of Jobs and growth in GAP.

Coca- Cola in India is amongst the largest domestic buyers of certain agricultural products. As an industry which has strong backward and forward linkages, our operations catalysis growth in demand for products like glass, plastic, refrigeration, incremental growth for enterprises engaged in post-production activities like merchandising, marketing and sales. In addition, we share best practices and technological advancements with our suppliers, vendors and allied industries which often lead to improvement in the overall standards of quality across industries.

The Coca-Cola Company has always placed high value on good citizenship. Our basic proposition entails that our Company’s business should refresh the market; enrich the workplace; protect and preserve the environment; and strengthen the community. We leverage our unique strengths to actively support and respond to coal needs be it the need for education, health, water or nutrition. We have used our distribution network for disaster relief, our marketing prowess to raise awareness on issues such as PET recycling, and our presence in communities to improve access to education and potable water.

The Coca-Cola India Foundation is now taking forward in the community at large, projects and programs of social relevance to carry forward the message of inclusive growth and development. Coca-Cola Worldwide and in India The Coca-Cola Company is the world’s largest beverage company. Along with Coca- Cola, recognized as the world’s most-valuable brand, the Company markets four of the world’s top five soft drink brands, including Diet Coke, Fan and Sprite and a wide range of other beverages, including diet and light soft drinks, water, Juices and juice drinks, tea, coffee and sports drinks.

Through one of the world’s largest beverage distribution system, consumers in more than 200 countries enjoy the Company’s beverages at a rate exceeding 1. 8 billion servings each day. Coca-Cola in India is the country’s leading beverage Company with an unmatched portfolio of beverages. The Company manufactures and markets leading beverage brands like Coca-Cola, Diet Coke, Thumb Up, Fan, Lima, Sprite, Amaze, Minute Maid Pulpy Orange, Minute Maid Nimbi Fresh, Minute Maid 100%, Burn, Kinney and Georgia range of tea and coffee.

One of the early investors in India, the Coca-Cola system provides direct and indirect employment to more than 1, 50,000 people. The Company has more than 2. 2 million retailers and our business has a multiplier effect on employment and earning opportunities. Coca-Cola in India is one of the largest domestic buyer of certain agricultural products like sugar, mango pulp etc. The Company’s business also positively impacts industries like glass, plastics, resin manufacturers, sugar, automobiles, white goods manufacturers, banking etc. The Coca-Cola Company has always placed high value on good citizenship.

At the heart of business is a mission statement called the Coca-Cola Promise – “The Coca-Cola Company exists to benefit and refresh everyone that it touches”. This basic proposition entails that the Company’s business should refresh the markets, protect, preserve and enhance the environment and strengthen the community. Coca-Cola in India provides extensive support for community programs across the country, with a focus on education, health and water conservation. The system has installed more than 500 rain water harvesting structures in the country. The system has also including check dams.

The Coca-Cola system is committed to work with communities across India in its effort to contribute to mutual growth and development. Logo design The Coca-Cola logo was created by John Phenomenon’s bookkeeper, Frank Mason Robinson, in 1885. Robinson came up with the name and chose the logo’s distinctive cursive script. The type face used, known as Spenserian script, was developed in the mid-19th century and was the dominant form of formal handwriting in the United States during that period. Robinson also played a significant role in early Coca-Cola advertising.

His promotional suggestions to Phenomenon included giving away thousands of free drink coupons and plastering the city of Atlanta with publicity banners and streetcar signs. Coca-Cola Slogans Some of their best slogans in India are: * “than mutual Coca-Cola! ” * “Open Happiness! ” * “IIOP Sara outtake! ” * “Burrower! ” * “Joy chase ho Jay, Coca-Cola enjoy! ” Coca Cola pricing Meet-the-competition pricing”: the Coca-Cola products pricing are set around the same level as its competitors, Coca Cola has to be perceived differently but is still affordable.

Like any company who has successfully been there for more than a century, Coca Cola has had to remain tremendously fluent and consistent with their pricing strategy. They have had worthy and “dangerous” competitors constantly driving them to be smarter, faster, and better. A quote from Pepsi CO’s CEO “The more successful they are, the sharper we have to be. If the Coca Cola Company didn’t exist, we’d pray for someone to invent them. Throughout the years Coca Cola has made many pricing decisions but there is no doubt that their ultimate goal is to maximize shareholder value.

In order to grab the market share, Pepsi generally starts to drop prices, and shortly after, Coca Cola decides to decrease theirs slightly but not for all products. For example, in India or Pakistan, Coca Cola is focused on reducing prices of their mall bottles. Coca Cola uses lower price points to penetrate new markets that are especially sensitive to price. Coca Cola does that to face the competition and to raise brand awareness among the population.

Once it is strongly implemented, it repositions itself as “premium” compared to numerous competitors (ex: Pepsi), the brand has an image of bringing intangible benefits in lifestyle, group affiliation, moments of Joy ; happiness, but the marketing strategy still focuses on an affordable enjoyment of life. At retail stores, regular on-pack promotions are available in order to meet the company’s objectives and also to attract consumers to buy more. Segmentation enables brands to define the appropriate products for different kinds of customers.

Coca Cola doesn’t target a specific segment but adapts its marketing treated by developing new products. Age: Generally, Coke does not have a specific target and is addressed to everyone. But the main consumers are 12-30 years old people; even if there is no specific product or communication for less than 12 or more than 30, the brand succeeds in reaching them, through partnerships, for example (restaurants, fast foods such as McDonald’s, etc. ), or thanks to its value among consumers. So, the core target audience of Coca Cola is youth.

Their targeting is not based on gender but the results show that both genders like this product and use it (almost 50/50). Finally, Coca Cola considers each customer as a target and a potential consumer. All age groups are being targeted but the most potential age group is from 18-25 that covers around 40% of the total age segments. Life style: no life style targeted but more and more busy life style and mobile generation (youth) are considered to be the most important part of Coke’s consumers. Occupation: no occupation targeted but consumers are mainly students and family oriented people Nature: fun, Joy, entertainment loving people.

Customer’s Media Habits There are some habits which are given as follow: The young target audience of the brand loves media exposure Mobile generation & social media is a part of daily life Connected people like innovations and surprises. Positioning Coca Cola has strategically positioned itself within the world soft drink market. It faces a vital question: does it have to keep the same positioning or to adapt according to the 200 countries where the brand sells its products. The brand has understood this principle while ago: “think global, act local”.

Coca is thus willing to keep the same core product which is coke, but it adapts the offer to local needs. They SE strategic positioning in order to have the same image all around the world, which is a success because it is perceived today as a part of daily life everywhere. This perception of the brand by the consumer leads to a high degree of loyalty and makes the purchasing decision more automatic. Coca Cola has been successful by using Unique Selling preposition as “Live the coke side of life”, related to Joy and happiness. Consumers basically associate this brand with these emotions.

When the name of Coke is mentioned, the first thing that comes into mind is fun and entertainment. An example of segmentation and positioning India A: “Life ho to assai” “India A,” the designation Coca-Cola gave to the market segment including metropolitan areas and large towns, represented 4% of the country’s population. This celebrating the benefits of their increasing social and economic freedoms. “Life ho to assai,” (life as it should be) was the successful and relevant tagging found in Coca-Cola’s advertising to this audience.

India B: “Than Mutual Coca-Cola” Coca-Cola India believed that the first brand to offer communication targeted to the smaller towns would own the rural market and went after that objective with a impressive strategy. “India B” included small towns and rural areas, comprising the other 96% of the nation’s population. This segment’s primary need was out-of- home thirst-quenching and the soft drink category was undifferentiated in the minds of rural consumers. Additionally, with an average Coke costing RSI. 0 and an average days wages around RSI. 100, Coke was perceived as a luxury that few could afford. In an effort to make the price point of Coke within reach of this high-potential market, Coca- Cola launched the Accessibility Campaign, introducing a new mall bottle, mailer than the traditional mall bottle found in urban markets, and concurrently cutting the price in half, to RSI. 5. This pricing strategy closed the gap between Coke and basic refreshments like lemonade and tea, making soft drinks truly accessible for the first time.

At the same time, Coke invested in distribution infrastructure to effectively serve a disbursed population and doubled the number of retail outlets in rural areas from 80,000 in 2001 to 160,000 in 2003, increasing market penetration from 13 to 25%. Coke’s advertising and promotion strategy pulled the marketing plan gather using local language and idiomatic expressions. “Than,” meaning cool/ cold is also generic for cold beverages and gave “Than Mutual Coca-Cola” delicious multiple meanings.

Literally translated to “Coke means refreshment,” the phrase directly addressed both the primary need of this segment for cold refreshment while at the same time positioning Coke as a “Than” or generic cold beverage Just like tea, lass, or lemonade. As a result of the Than campaign, Coca-Cola won Advertiser of the Year and Campaign of the Year in 2003 Distribution system in India The routes formulated by HICCUP (Hindustan Coca Cola Beverages Pet. Ltd. (India) for distribution of products are as follows: Key Accounts: These key institutional customers contribute a large piece of the total sales of the Company.

It mainly consists of organizations that buy large quantities of a product in one single transaction. Because of their volumes and bargaining power the Company offers one month or 15 days credit. They include defense canteens, clubs, fine dine restaurants, hotels, Corporate houses etc. Future Consumption: The segment consists of outlets of Coca-Cola products holding decent amount of stock meant for future consumption. This is done to ensure the product is available all time. They include Food courts, Departmental stores, Super markets etc.

Immediate Consumption: Stocks need to be replenished on daily basis for immediate consumption form retail stores. The stocks of products in these outlets are sold on the same day and very few bottles may be left for next day such outlets restaurants, and unrealized retailers. General: In this route a few but specific areas are grouped and served in one go. These include remote areas, rural places, and hill stations with less density of populations. Distribution Modes Direct distribution: In this mode, the bottling unit or the bottler partner manages sales, delivery, and merchandising and local account management at the store level.

Indirect distribution: In this mode of distribution, an organization which is not part of the structured network manages the sale of products. The Coca-Cola distribution system manages one or more of the distribution functions (Sales, delivery, merchandising and local account management) Merchandising: Merchandising is essential to communicate to the consumer at the point of purchase. The goal is to convey product benefit, value and quality. Sales people and delivery personnel both take the additional responsibility of merchandising. If required special teams are sent to specifically merchandise our products.

In the process of exploring Indian rural market the Coca-Cola has come out with CEO-friendly cooler cooler’ operating through solar energy. Limited hour power supply in rural areas is one of the most important factors for not offering chilled soft drink products to consumers in rural areas. To address the issue Coca-Cola India came out with this innovation using a renewable energy resource. ‘cooler’ can store two crates having 48 glass bottles of 00 ml each. Apart from this it can light up the store and charge mobile. This has given Coca-cola India a competitive advantage to penetrate into remote rural areas.

The results are promising, a test market done by placing 20 ‘cooler’ coolers in a rural area near Agar (Attar Pradesh State) has given sales Jump of nearly 5 times. The company is planning to use similar concept in urban areas by placing environmental friendly vending machines operated by solar energy. The growing green concerns and rising electricity bills in urban areas is demanding such concepts. Coca-Cola Market share Coca Cola International is the largest soft drink industry in the world, with control over the industry since it represents 59% of the entire soft drink market.

Coca Cola has expanded itself outside of the United States and makes 76% of its sales outside of the United States especially and North America as a whole. The innovative product marketers have successfully studied demographics, cultures, and values of the consumers to continue to expand its market abroad. Contrary to the popular belief, most of the sales are made in America but even third world countries on continents such as Africa consume Coca-Cola beverages Coca-cola: Promotions Coca Cola uses Integrated Marketing Communications in order to communicate with its target.

It is a pioneer company in 360 degree communications as they rapidly understood that they had to get in touch with consumers to create links and to look for them wherever they are. The communication plan is adapted according to the be close to its consumers, to be a part of their daily life, to become a kind of ritual attached to specific moments; for that, they use social media and social marketing through social responsibility, like, creating emotions and feeling of affiliation toward its customers. For example, they raise funds for calamities like earthquakes and hurricanes.

The MIMIC campaign had started in 2006, with the new brand platform “Taste the Coke side of life”. From there, the company had to re-structure its communications department (a vertical and unilateral communication to a dialogue with customers). Such an approach means creating new Jobs, new departments, different recruitment process and strategy. Element of MIMIC mix This depends not only on the market & the product but also on the objectives. In MIMIC mix there are the three types of mass media: TV advertising, print media, and manner advertisements.

The various elements that are included in the MIMIC mix must work together to deliver a consistent and persuasive message to the target audience. The tools of Communication Mix used by Coca-Cola India are as follows: 1 . Advertising 2. Direct Marketing 3. Interactive/lenient Marketing 4. Sales Promotion 5. Public Relations 6. Personal Selling Coca-Cola uses the concept of aggressive advertising to promote its products. Thus advertising is the most important marketing tool for the company as it has to cater to the mass consumer markets. They mainly advertise nationally.

They introduce efferent themes and concepts to sell their product and advertise mainly through electronic media and out of home advertising. These advertisements build brand image and create awareness. Mainly, big personalities of the Indian film fraternity become the brand ambassadors of the company. Throughout the years, the slogans of the Coca-Cola have been memorable. For example, * Than Mutual Cola-Cola * Joy coach ho Jake Cola-Cola enjoy * Coca-Cola-IIOP sir Utah eek * Borrower!!! The mediums of advertising used by Coca-Cola are: They print media for advertisement. Although very rare, they have a separate apartment for print media.

Point Of Sale Materials: This includes posters and stickers display in the stores and in different areas. It also includes Vizier coolers, freezers and display racks. As everybody knows that TV is the most common entertaining medium so TV commercials is one of the most attractive way of advertising. So Coca-Cola does regular TV commercials on different channels. It focuses on both the urban as well as the rural India with its advertisements. In the summer of 2011, Coca-Cola introduced the new “Barber!! ” ad featuring Impair Khan. Coca-Cola uses direct marketing in many ways. It collaborates with various restaurants, movie theaters, etc. O carry its product. So when a customer orders a drink, the only brand they are offered is Coca-Cola. By doing this, Coke forces out other competition, and the restaurants, movie theaters and other businesses keep purchasing their product over and over again. Coke uses mobile graphics and texts to appeal to markets on a more personal level. Coca Cola also sponsors various sporting events in India and around the world like Cricket, Football, Motor Racing etc. Coca-Cola uses the internet to promote its products. The company has its own Bessie, which is quite simple to navigate through.

The website allows customers to become interactive through various games, contests, shopping, and through a special section of the website that enables consumers to find out how they can help their community. Also in the modern era of communication and networking, the company uses various social networking sites like Backbone, Youth and Twitter to connect with the consumers. The internet marketing thus helps to reach to those consumers who can’t afford to spend time on T. V and are always online. Coca-Cola does sales promotion in two ways for rapid increase in sales: .

Consumer – Oriented sales promotion: * Getting Shelves * Eye Catching Position * Under The Crown Scheme * Discounts to retailers and stores * Return back allowances * Merchandising assets * Free goods or free tours Coca-Cola can address law suits, rumors, stories, new products, and activities. There is a section of the website devoted to investors. Here, current or future investors can access financial statements and updated stock information. Coca-Cola India is also undertaking some projects as a part of their social cause and as a part of corporate social responsibility.

The project “Until” focuses on more yield of mangoes to farmers. Coca Cola also sponsors events in cricket and music. Coca-Cola has many salesperson, who are individuals representing the company to communicate, sell, service, and build relationships with the customers. These salesperson promote their product to different customers within their regions, and once they sustain a customer, they sell their products to them and provide them with service many times a week. These individuals form close relationships with the customers in order to improve the business. Coca cola SOOT analysts 2013 |

Strengths I Weaknesses I 1. The best global brand in the world in terms of value ($77,839 billion) 2. World’s largest market share in beverage 3. Strong marketing and advertising 4. Most extensive beverage distribution channel 5. Customer loyalty 6. Bargaining power over suppliers 7. Corporate social responsibility | 1. Significant focus on carbonated drinks 2. Understudied product portfolio 3. High debt level due to acquisitions 4. Negative publicity 5. Brand failures or many brands with insignificant amount of revenues I Opportunities I Threats I 1. Bottled water consumption growth.