The Coca-Cola Company

Introduction
The Coca-Cola Company is the worlds leading owner and marketer of nonalcoholic
beverage brands and the worlds largest manufacturer, distributor and marketer of
concentrates and syrups used to produce nonalcoholic beverages. Company own or
license and market more than 5 nonalcoholic beverage brands, primarily sparkling
beverages but also a variety of still beverages such as waters, enhanced waters, !uices and
!uice drinks, ready-to-drink teas and coffees, and energy and sports drinks. "inished
beverage products bearing our trademarks, sold in the #nited $tates since %&&', are now
sold in more than ( countries. )long with Coca-Cola, which is recogni*ed as the
worlds most valuable brand, Coca-Cola Company own and market four of the worlds
top five nonalcoholic sparkling beverage brands, including +iet Coke, "anta and $prite.
Coca-Cola is the most popular and biggest-selling soft drink in history, as well as the
best-known product in the world. Created in )tlanta, ,eorgia, #nited $tates by +r. -ohn
$. .emberton, Coca-Cola was first offered as a fountain beverage by mi/ing Coca-Cola
syrup with carbonated water. It was introduced in %&&', patented in %&&0, registered as a
trademark in %&12 and by %&15 it was being sold in every state and territory in the #nited
$tates. In %&11, The Coca-Cola Company began franchised bottling operations in the
#nited $tates.
+uring the first year, sales of Coca-Cola averaged nine drinks a day, adding up to total
sales for that year of 35. $ince the year4s e/penses were !ust over 30, +r. .emberton
took a loss. Today, products of The Coca-Cola Company are consumed at the rate of
more than one billion drinks per day.
Today Coca-Cola markets and connects with consumers using a portfolio of nearly 5
brands in over ( different countries. Coca-Cola has five strategic business units6 7orth
)merica, )frica, )sia, 8atin )merica, and 9urope, 9urasia and the :iddle 9ast.
The company adopted their strategies of success using the following strategic priorities6
; ). accelerated carbonated soft-drink growth, led by Coca Cola
; <. selectively broaden the family of beverage brands to drive profitable growths
; C. grow system profitability and capability together with our bottling partners.
; +. +irect investments to highest =potential areas across markets.
; 9. +rive efficiency and cost effectiveness everywhere.
In (2 Coca-Cola Company products comprised of about %> of total worldwide sales
of non-alcoholic beverage products. The company4s4 primary competitor in many
countries is .epsiCo. ?ther significant competitors include 7estle $.)., Cadbury
$chweppes plc, ,roup +anone, and @raft "oods Inc., among others. The remaining
portion will evaluate the performance and give an investment outlook of the Coca-Cola
Co using market and ratio analysis.
:arket .osition of Coca Cola in the #$6
Coca Cola plays a ma!or in its industry, not only in the #.$, but also all over the globe.
Coke is single handedly the most popular soft drink anywhere, beating out its ma!or
competitor, .epsi Co.
?verseas, Coke has established its empire from $outh )merica to )frica to all of )sia
and 9urope. Coke is the world4s top soft-drink company. The Coca-Cola Company owns
four of the top five soft-drink brands ACoca-Cola, +iet Coke, "anta, and $priteB. )mong
its other brands are <arC4s, "ruitopia, :inute :aid, .ower)de, and +asani water. In the
#$ it sells ,roup +anone4s spring water brands A+anone and $parklettsB. Coca-Cola sells
Crush, +r .epper, and $chweppes outside )ustralia, 9urope, and 7orth )merica. The
firm, which does no bottling, sells about 5 drink brands, including coffees, !uices,
sports drinks, and teas, in some ( nations. Coke4s position is so powerful in the market
that it is the second most recogni*ed word anywhere in the world after D?@.D
9ven though many nations overseas feel the impact that Coke has, the individuals at
Coke has assured that their presence is felt here in the #$ also. Coke has established
itself into many facets in the #$ that makes this company stand out. "or instance, Coke
makes a continuous effort to introduce a new product, i.e. new Eanilla Coke. Coke also
boosts its market positioning the states with the many youth partnerships, TE
commercials, sports, music, and community service.
Industry analysis
Fistory and background
Coca-Cola began its e/istence in a three-legged brass pot in the backyard of -ohn $.
.emberton on :ay &, %&&'. .emberton was a pharmacist trying to create a new headache
tonic. .emberton took his creation to the now famous -acob4s .harmacy, about ( blocks
from his home.
There the syrup was mi/ed with cold tap water and sold to ailing customers for 5 cents.
)s the story goes, a customer in great pain came in and ordered the syrup and the soda
!erk accidentally mi/ed it with carbonated water instead of regular tap water. The
customer loved the new drink, declaring it D+elicious and GefreshingHD
"rank Gobinson, .emberton4s partner and bookkeeper, suggested the name DCoca-ColaD,
taking each part of the name from a key ingredient in the product and proclaiming that
the two C4s would look good in advertising. :r. Gobinson penned DCoca-ColaD in the
uniCue flowing script that is now famous worldwideH
In %&&', sales of Coca-Cola averaged 1 drinks per day. That first year, .emberton sold
only (5 gallons of syrup. "or his efforts, .emberton grossed 35. and spent 302.1' on
advertising.
)s -ohn .emberton4s health grew worse, he sold the company off. )sa Candler took sole
ownership of the company by %&1% for a mere 3(,2.HHH Athat included all rights,
including his initial investmentHB
In %&15, Coca-Cola was first bottled by -oseph <iedenharn, owner of the <iedenharn
Candy Company of Eicksburg, :ississippi. Candler believed that the bottling idea was
cra*y and that people would never go for itH )s the popularity of Coca-Cola increased,
many imitators came onto the scene, offering products such as D@oca-@olaD, so the
company decided that they needed a bottle that would be easily recogni*able so as not to
be confused with any other. The Goot ,lass Company of Terre Faute, Indiana designed
the now famous Dcontour bottleD or DhobbleskirtD. This bottle design was first patented in
%1%5 and then again +ecember (5, %1(2. In the year %1(&, bottle sales first surpassed
fountain sales, proving that the bottling idea had been a great successH
)sa Candler4s merchandising flair helped e/pand the company to every state and territory
by %1%1. In that year, Candler Awho then went on to become mayor of )tlanta, ,eorgiaB
sold the company to 9rnest Ioodruff and a group of investors for 3(5 million and in
%1(2 Gobert Ioodruff A9rnest4s eldest sonB became president of the company. Gobert
Ioodruff4s more than si/ decades of leadership took the business to unrivaled heights of
commercial success, making Coca-Cola an institution the world overH
)t the beginning of IIII, Gobert Ioodruff issued an order to Dsee to it that every man
in uniform gets a bottle of Coca-Cola for 5 cents wherever he is and whatever it costs the
companyHD In %152, during Iorld Iar II, 9isenhower sent a telegram reCuesting %
additional Coca-Cola bottling plants overseas for our troops. )t the beginning of the war,
Coke was bottled in 55 countries. )t the close of the war, '5 additional bottling plants
had been established abroad. The presence of Coca-Cola did more than lift the morale of
the troops...it gave many local people in those countries their first taste of Coca-Cola,
paving the way for unprecedented worldwide sales after the warH
The cover page of the :ay %5, %15 issue of Time maga*ine features a Coca-Cola
advertisement. It was the first time that a consumer product had been featured on their
cover. That same issue also contained a detailed story about Coca-Cola4s e/tensive
distribution and franchising system.
In %1&%, Gobert ,oi*ueta became president of Coca-Cola and soon became one of the
most successful businessmen in the world. :r. ,oi*ueta had come to )merica from Cuba
with little more than a suitcase.
In %1&5, the Coca-Cola Company introduced its new formula for Coke, calling the
product D7ew CokeD and then DCoke IID. The public demanded their original formula
back and the company soon began producing DCoca-Cola ClassicD.
Today, Coca-Cola is available in nearly ( countries around the globe and its trademark
is written in appro/imately & languagesH It is one of the most recogni*able logos in the
worldH
.orter4s 5 forces analysis
The threat of the entry of new competitors
)dvertising and :arketing
$oft drink industry needs huge amount of money to spend on advertisement and
marketing. In (, .epsi, Coke and their bottlers invested appro/imately 3(.5& billion.
In (, the average advertisement e/penditure per point of market share was 3&.2
million. This makes it e/ceptionally hard for a new competitor to struggle with the
current market and e/pand visibility.
Customer 8oyaltyJ <rand Image
.epsi and Coke have been investing huge amount on advertisement and marketing
throughout their e/istence. This has resulted in higher brand eCuity and strong loyal
customers base all over the globe. Therefore, it becomes nearly unfeasible for a new
comer to counterpart this level in soft drink industry.
Getail +istribution
This industry provides significant margins to retailers. "or e/ample, some retailers get
%5-(> while others en!oy (-2> margins. These margins are reasonably enough for
retailers to entertain the e/isting players. This makes it very difficult for new players to
persuade retailers to carry their new products or substitute products for Coke and .epsi.
"ear of Getaliation
It is very difficult to enter into a market place where already well-established players are
present such as Coke and .epsi in this industry. $o these players will not allow any new
entrants to easily enter the market. They will give tough time to new entrants which could
result into price wars, new product line, etc in order to influences the new comers.
<ottling 7etwork
In this industry manufacturers have franchise contracts with their presented bottlers that
have privileges in a definite geographic area in eternity such as both .epsi and Coke have
contracts with their presented bottlers. These contracts forbid bottlers from taking on
new competing brands for similar products. 8atest consolidation between the bottlers
and the backward integration with Coke buying considerable numbers of bottling firms, it
makes very difficult for new player to contract with bottlers agreeable to distribute their
brands.
The intensity of competitive rivalry
The industry is almost dominated by the Coke and .epsi. This industry is well known as
a +uopoly with Coke and .epsi as the companies competing. These both players have the
ma!ority of the market share and rest of the players have very low market share.
?therwiseK competition is comparatively low to result any turmoil of industry structure.
Coke and .epsi primarily are competing on advertising and differentiation rather than on
pricing. This resulted in higher profits and disallowed a decline in profits. .ricing war is
nevertheless e/perienced in their global e/pansion strategies.
Composition of Competitors
9/cept the Coke and .epsi other competitors are of uneCual si*e especially in local
markets. Coke and .epsi both players have the ma!ority of the market share and rest of
the players have very low market share.
$cope of Competition
$cope of competition in this industry is generally globalK Coke and .epsi are
appro/imately presents in ( countries.
:arket ,rowth Gate
The soft drinks business will not see growth in near future, with the smoothie and bottled
water sectors mainly hit by a decline in (&, and across all sectors volume declined by
%.% percent.
"i/ed $torage Cost
This industry needs huge manufacturing plants and contracts with bottling network
companies. These contracts make sure that bottlers must have standard manufacturing
plantK these plants need huge capital and e/ertion.
+egree of differentiation
:arketing and .roduct differentiation have become more significant. Coke and .epsi
mainly are competing on advertising and differentiation rather than on pricing. Coke has
diverse advertisement campaigns according to conditions. Coca-Cola is recogni*ed as the
best-known brand name in the globe. :ore prominently, its consumers would not do
without it, and have established a loyalty.
$trategic $take
Cokes core operation is the manufacturing and distribution both for itself and beneath
franchise, of non-alcoholic beverages and related products. <ecause of the strategic stake
the main brand of the Coke has been around for a lot of years.
The threat of substitute products
This industry is enriched with enormous statistics of substitutes such as6 water, tea, beer,
!uices, coffee, etc presented tothe end-consumers. <ut all the suppliers of these substitutes
need massive advertising, brand eCuity, brand loyalty and making sure that their brands
are effortlessly accessible to the consumers. :ost of the substitutes cannot counterpart
the e/isting players offers or diversify business by offering new product lines of the
substitute products to safeguard themselves from rivalry.
)ggressiveness of substitute products in promotion
$oft drink industry companies spend huge amount of money on advertisement and
marketing to differentiate their products from others and also create brand eCuity, base of
loyal customers and increase visibility.
$witching Cost
$witching cost of the substitute products is very low so consumers can easily shift
towards the substitute products.
.erceived priceJ value
.erceived priceJvalue in this industry is very low because all products are comparatively
same and are only differentiated by promotional activities.
The bargaining power of Customers A<uyersB
The most important buyers for the $oft +rink industry are fast food fountain, vending,
convenience stores, food stores, restaurants, college canteens and others in the categori*e
of market share. The profitabilityJrevenue in each of these segments obviously
demonstrates the bargaining power of the buyers to pay different prices.
"ast "ood "ountain
.epsi and Coke mainly regard this segment as L.aid $amplingM due to small margins.
This division of buyers is the slightest profitable because of the high bargaining power
of the buyers. The bargaining power of the buyers is high because they purchase in bulks.
Eending :achines
Eending :achines provide products to the customers in a straight line with enormously
no power with the buyer.
Convenience $tores
This segment is tremendously fragmented and has no bargaining power due to which it
has to pay superior prices.
"ood $tores
This segment of buyers is fairly merged with few local supermarkets and numerous
chain stores. $ince this segment presents best shelf space it demands lower prices.
The bargaining power of $uppliers
:ost of the raw materials desirable to manufacture soft drink are basic merchandise such
as flavor, color, caffeine, sugar, and packaging etc. The suppliers of these commodities
have no bargaining power over the pricing due to which the suppliers in soft drink
industry are relatively weak.
7umber of important $uppliers
Gaw materials for soft drink are basic commodities which are easily available to every
producer and have low cost which makes no difference for any supplier.
$witching cost
)ll the raw material ingredients are basic merchandi*e and easily accessible to
manufacturers. $witching cost to the suppliers is very lowK manufactures can easily shift
towards the other suppliers.
)vailability of substitutes
$oft drink products have standard raw material ingredients which could not have any
alternatives or used instead of the actual ingredients.
Threat of forward integration
Threat of forward integration is very low in this industry because manufacturers of the
soft drinks need huge manufacturing plants, bottling network, strong distribution network
and best shelf space. $uppliers could not afford such kind of well-established network.
Importance of buyer industry to suppliers
$oft drink industry is very important to the suppliers because buyers purchase larger
amount of raw material. This encourages suppliers to remain in good contact with buyers.
$uppliers product an important input to the buyers
.roduct of the suppliers is very important input for the manufacturers in this industry
because these products do not have any substitute.
Industry trends
The ,roup of 9ight ACanada, "rance, ,ermany, Italy, -apan, Gussia, the #@ and the #$B
generated almost 3(1% billion in soft drinks sales in (%, according to :arket8ine. The
groups global soft drink industry is predicted to hit almost 32% billion in (%5. The #$
leads the group with a near 52> share in the market, generating almost 3%(5 billion in
sales. In (%5, the #$ soft drinks market is predicted to e/ceed 3%(0 billion.
The soft drink industry spans sparkling drinks, concentrates, !uices, bottled water,
smoothies, ready-to-drink tea and coffee, and functional drinks. $oft drinks do not
usually contain alcohol, though can have up to .5> alcohol content. They are generally
made on a still or carbonated water base with added flavors and sweeteners, and
sometimes fruit !uices or caffeine.
.ackaging is key, with more than %,5 patents filed in the #$ in the early stages of the
soft drink industry for bottle closures such as lids, caps and corks. The industry is reliant
on the production of Cuality bottles and drinking packs to keep products fresh. .opular
soft drinks on the market include cola, root beer, ginger ale and sparkling lemonade.
@ey :arket .roducts
Carbonated, or sparkling drinks, are e/pected to generate more than 3(1 billion in
revenues in (%5, reports :arket8ine. In (%5, the world carbonated soft drink industry
is e/pected to produce over %10 billion liters, a %> rise in five years. Cola leads the
market with a 5(> stake. )mericas represent over 55> of the world market. Coca-Cola
is the markets top company, accounting for over 5(> of the overall market. Carbonates
represent 5> of the global soft drink industry. ?ther large companies on the market
include6 Ged <ull, +r .epper $napple and .epsiCo.
The global functional drinks market, which encompasses sports drinks, energy drinks,
and nutraceutical drinks, is e/pected to e/ceed 3'(, million in (%5, according to
:arket8ine. This will represent a near 2> increase in five years, bringing market
volume to over %',%25 million liters. 9nergy drinks lead the market segment with a near
5&> stake. )mericas represent more than 2&> of the global functional drinks market.
.epsiCo is the number one company in this category generating more than (5> of overall
market volume. $ports drinks comprise a well-established market with steady
consumption, whereas energy drinks promises great potential and is a rapidly growing
market. 9nergy drinks are becoming increasingly popular as consumers show greater
awareness and assume more responsibility for health-related issues.
The global market for bottled water is e/pected to e/ceed 3%(' billion in (%5, reports
:arket8ine. This represents (0> market e/pansion in five years, bringing market
volume to almost %&2 billion liters, (> more than in (%. $till unflavored water
represents '5> of the bottled water market. The 9# holds more than half of the overall
market, which is lead by +anone with a %5> stake in terms of volume. :arket drivers
include greater health awareness, higher consumer spending, larger population and
lifestyle trends. :arketing and product differentiation are key with companies focusing
on product innovation, and packaging in terms of weight and brand image.
The global !uice market, which encompasses fruit and vegetable !uice, nectars, and fruit
drinks, is e/pected to see growth slow to under (> yearly to e/ceed 31( billion by (%5,
reports :arket8ine. The segment is lead by %> fruit !uice with over 2> market share.
)ccording to ,lobal Industry )nalysts, the global fruit and vegetable !uice market will
e/ceed '5 billion liters by (%5. :arket drivers include rising awareness surrounding
health and nutrition.
Industry 8eaders
The three main players on the global soft drink market are Coca-Cola, .epsiCo and
Cadbury $chweppes. #$-based Coca-Cola employs almost %5, people and sells over
2,5 products in more than ( countries. FeadCuartered in 7ew Nork, .epsiCo has %1
leading brands that bring in over 3% billion in yearly retail sales and two do*en other
brands with yearly sales of between 3(5 million and 3% billion.
:arket ?utlook
The #$ carbonates market remains strong as !uice and water markets decline. The
industry continues to feel the effects of the global recession, as consumer confidence
remains low. :oving forward, companies are likely to concentrate on product innovation
to coa/ consumers back.
9volving lifestyle trends toward healthier options and widespread awareness of health
epidemics such as obesity and diabetes may see categories like carbonated drinks stall
slightly, but also represents greater potential for other markets such as energy drinks and
!uices.
"irm4s )nalysis
$I?T )nalysis
$trengths
Coca Cola is an e/tremely recogni*able company. .opularity is one of its superior
strengths that is virtually incomparable. Coca Cola is known very well worldwide. It4s
branding is obvious and easily recogni*ed. Things like, logos and promos shown on t-
shirts, hats, and collectible memorabilia. Iithout a doubt, no beverage company
compares to Coca Cola4s social popularity status. $ome people buy coke, not only
because of its taste, but because it is widely accepted and they feel like they are part of
something so big and unifying. )t the other end of the spectrum, certain individuals
choose not to drink coke, based solely on rebelling from the world4s idea that coke is
something of such great power. ?verwhelming is the best word to describe Coca Cola4s
popularity. It is scary to think that its popularity has been constantly growing over the
years and the possibility that there is still room to grow. If you speak the words LCoca
ColaM, it would definitely be recogni*ed all around the world. :oney is another thing that
is a strength of the company. Coca Cola deals with massive amounts of money all year.
8ike all businesses, they have had their ups and downs financially, but they have done
well in this compartment and will continue to do well and improve. The money they are
earning is substantially better than most beverage companies, and with that money, they
put back into their own company so that they can improve. )nother strength that is very
important to Coca Cola is customer loyalty. The &J( rule comes into effect in this
situation. 9ighty percent of their profit comes from (> of their loyal customers. :any
peopleJfamilies are e/tremely loyal to Coca Cola. It would not be rare to constantly find
bottles and cases of a product such as coke in a house. It seems that some people would
drink coke religiously like some people would drink water and milk. This is an
improbable feat. Customers will continually purchase these products, and will probably
do so for a very long time. If two parents were avid Coca Cola drinkers, this will be
passed down do their children as they grow loyal to the company. Iith Coca Colas
ability to sell their product all over the world, customers will continue to buy what they
know and what they likeOCoca Cola products.
Ieaknesses
Coca Cola is a very successful company, with limited weaknesses. Fowever they do have
a variety of weaknesses that need to be addressed if they want to rise to the ne/t level.
Iord of mouth is probably a strength and weakness of every company. Ihile many
people have good things to say, there are many individuals who are against Coca Cola as
a company, and the products in which they produce. Iord of mouth unfortunately is
something that is very hard to control. Ihile people will have their opinions, you have to
try to sway their negative views. If bad comments and views are put out to people who
have yet to try Coca Cola products, then that could produce a lost customer which shows
why word of mouth is a weakness. )nother aspect that could be viewed as a weakness is
the lack of popularity of many of Coca Colas drinks. :any drinks that they produce are
e/tremely popular such as Coke and $prite but this company has appro/imately 5
different drink types. :ost are unknown and rarely seen for available purchase. These
drinks do not probably taste bad, but are rather a result of low profile or non e/istent
advertising. This is a weakness that needs to be looked at when analy*ing their company.
)nother weakness that has been greatly publici*ed is the health issues that surround some
of their products. It is known that a popular product like coke is not very beneficial to
your body and your health. Iith todays constant shift to health products, some products
could possibly loose customers. This new focus on weight and health could be a problem
for the product that are labeled detrimental to you health.
?pportunities
Coca Cola has a few opportunities in its business. It has many successful brands that it
should continue to e/ploit and pursue. Coca Cola also has the opportunity to advertise its
less popular products. Iith a large income it has the available money to put some of
these other beverages on the market. This could be very beneficial to the company if they
could start selling these other products to the same e/tent that they do with their main
products. )nother opportunity that we have seen being put to use before is the ability for
Coca Cola to buy out their competition. This opportunity rarely presents itself in the
world of business. Fowever, with Coca Colas power and success, such a task is not
impossible. Coca Cola has bought out a countless number of drink brands. )n easy way
to turn their profit into your profit is too buy out their company. 9ven though this may
cost a vast amount of money initially, in the long run, if all goes to plan, it results in a
large profit. )lso, the company will no longer need to worry about this product being part
of the competition. <rand recognition is the significant factor affecting Cokes
competitive position. Coca Cola is known well throughout 1> of the world population
today. 7ow Coca Cola wants to get there brand name known even better and possibly get
closer and closer to %>. It is an opportunity that most companies will ever dream of,
and would be a supreme accomplishment. Coca Cola has an opportunity to continue to
widen the gap between them and their competitors.
Threats
+espite the fact that Coca Cola dominates its market, it still has to deal with many
threats. 9ven though Coca Cola and .epsi control nearly 5> of the entire beverage
market, the changing health-consciousness attitude of the market could have a serious
effect on Coca Cola. This definitely needs to be viewed as a dominant threat. In todays
world, people are constantly trying to change their eating and drinking habits. This could
directly affect the sale of Coca Colas products. )nother possible issue is the legal side of
things. There are always issues with a company of such supreme wealth and popularity.
$omebody is always trying to find fault with the best and take them down. Coca Cola has
to be careful with lawsuits. Fealth minister could also be looked at as a threat. )gain,
some people may try to e/ploit the unhealthy side of Coca Colas products and could
threaten the status and success of sales. ?ther threats are of course the competition. Coca
Colas main competition being .epsi, sells a very similar drink. Coca Cola needs to be
careful that .epsi does not grow to be a more successful drink. ?ther product such as
!uices, coffee, and milk are threats. These other beverage options could take precedent in
some peoples minds over Coca Colas beverages and this could threaten the potential
success it presents again.
:arket .osition
The positioning strategy used by Coca-Cola has allowed them to paint a suitable image of
themselves in the mind of their customers as the only LGeal ?neM. They have designed
their positioning strategy so as to draw an effective picture of their products offered for
their customer. ?nce they had decided the market segment they wanted to target and
compete in, they clearly developed a picture of that targeted market segment and properly
defined their products as part of their positioning strategy. Through their positions
strategy they emphasi*ed on their distinct and uniCue characteristics with relation to their
competitive brands stressing on their individuality. They associated their product with the
customer4s values and knowledge highlighting their benefits. Their positioning strategy
also included comparison of Coca-Cola4s products with those of their rivals, like .epsi, so
that drive their customers to believe that Coca-Cola4s products had higher Cuality and
standard.
The Coca-Cola brand has turned out to be one of the most recogni*able and a popular
brand of all times and their beverage company is among the world4s largest beverage
companies. They have become a successful brand since they have used a number of
different brand management strategies depending on the market situation and target
market. The strategies include hybrid, manufacturer, individual, private, family and
generic brand management strategies. Fowever, the most utili*ed brand management
strategy she used is the individual brand management strategy since all of their ma!or
products have individual brand names, like $prite and "anta. Coca-Cola4s world-wide
recognition comes from the fact that they have spent billions of dollars to promote and
develop their trademark and brand name. +ue to this today more than 15> of our global
population recogni*es Coca-Cola along with their special writing and their prominent red
and white color.
)s a matter of fact, Coca-Cola Company came into being in %1&' and within the past (
decades, it has been able to establish itself as one of the leading beverage companies in
the world. )t the beginning, Coca-Cola has used modern marketing techniCues and she is
even viewed as the Lfounding father of our present day marketing modelM. The brand
used a number of modern marketing techniCues which has immensely benefited the
business. This includes aiming their marketing concept totally towards their customers
and allowing the focus of their customers to percolate trough almost every department
whether human resource, production or finance. )nother beneficial modern marketing
techniCue includes taking of all of their important decisions with relevance to the e/isting
market considerations, position and segmentation. )part from placing importance on
market implications, there are 2 techniCues of modern marketing which the company can
highly benefit from - focusing on customers, coordination and profit orientation. The
company4s focus should always be on the consumer4s viewpoint so that they can totally
understand which product or service the buyer needs. $ince the marketing mi/ is an
interconnected system, the entire marketing program needs to be considered and designed
as a whole.
In addition, the marketing techniCues used by Coca-Cola allow them to listen to the needs
and demands of the people all over the world who want beverages that e/tend over a
wide variety of occasions and tastes. Their marketing strategy has allowed them to
produce great beverages which contribute towards each and every community of our
world. Their marketing techniCues display their commitment towards diversity, health,
education and wellness, thus establishing them as one of the most successful and
powerful brands of all time. Coca-Cola4s marketing techniCues consists of an e/tremely
efficient marketing mi/ strategy combining product, price, promotion and place. They not
only provide the customers with their products, soft drinks, but also several services, like
movies and holidays, allowing the consumers to be completely satisfied. Their main
pricing strategy includes penetration pricing which has allowed them to grab a footing in
their target market by winning a ma!or part of the market share. )fter establishing
customer loyalty, Coca-Cola then slowly raised their product prices. Coca-Cola has
always been among the fore-runners in gimmicks and advertising styles and techniCues
which fall under promotion of marketing techniCues. They have effectively use their
promotional strategies for persuading their customers into buying their original products
and trying the new ones. They have used a combination of public relations, advertising,
personal selling and sales promotion as a part of their marketing techniCues. Coca-Cola
have also carefully chosen the place or distribution techniCues for their company. Their
techniCues include direct, selective, intensive and e/clusive distribution. It is completely
apparent from their widespread popularity and reputation that these marketing strategies
used by Coca-Cola has helped them establish themselves as among the most powerful
and successful brand of modern times, one which will fortunately be a comple/ yet vital
part of our modern world culture.
In a highly competitive world such as ours effective branding and positioning strategies
are e/tremely essential since it plays as a ma!or force for the company and allows it to
retain its stronghold all over the world. The branding strategies of a company accurately
define the individuality of the company, its products and services. 9very company,
whether small or large, consider their branding strategies to be an important part of the
entire business. Through their branding strategies they establish themselves as a brand
name which represents Cuality and standard to their customers. ) brand name helps the
differentiation among customers based on their uniCue Cualities from other similar
products.
)dditionally, the positioning strategy of a company helps it to establish the profitability
of their various products and services. In order for a company to be successful simply
having a Cuality product is not enough in our capitalistic world economy. The products
and services must have a distinct and clear image and should be offered to the target
customers at competitive prices. This is what a positioning strategy creates. Therefore,
positioning strategies helps companies create a useful and desired image of the product
for the customers, producing a direct contact between them and the company.
Conclusion
The argument that the brands or brand names along with its brand position and brand
management of a business like Coca-Cola, under which its goods or services are
marketed, embodies as much an asset as their tangible counterparts, is increasingly
gaining momentum. Geali*ing the reCuirement of implicating the value of brands in the
accounts, some large corporations in the #@ have initiated the capitali*ation of the value
of their brands in their documented financial declarations. The issue logically crops up
with regards to whether the implication of this entity as an asset in the financial
documents serves any real significant function or is merely another effort by the brand
accountants to create more opportunities for themselves.