By B.
Neha
27-70
TPS - B
The Coca-Cola Company is an American multinational corporation, and manufacturer,
retailer, and marketer of nonalcoholic beverage concentrates and syrups.[2] The company is
best known for its flagship product Coca-Cola, invented in 1886 by pharmacist John Stith
Pemberton in Atlanta, Georgia.[3] The Coca-Cola formula and brand were fully bought
with US$2,300 in 1889 by Asa Griggs Candler, who incorporated The Coca-Cola Company in
Atlanta in 1892.
Phase – 1
Simulation Analysis –
Promotional Activities of Coco Cola –
We Do - Coca Cola launched the “We Do” campaign, highlighting its heritage, and the fact
that its recipe hasn’t changed for 132 years. Featuring Elvis Presley, the campaign – which ran
across social media as well as offline – included the tagline: “They don’t make them like they
used to. We do.”
Love story - Plastic is a hot topic right now, particularly for FMCG brands like Coca Cola.
In 2017, Coca Cola Great Britain created a recycling-focused advert called “Love Story”. The
ad, which involved a set made entirely out of recyclable material, depicted two plastic bottles
falling in love over and over again – all thanks to the magic of recycling.
Taste the Feeling -In 2016, Coca Cola rolled out the integrated ‘Taste the Feeling’ campaign
– an update to its previous ‘Open Happiness’ tagline. With a number of international agencies
working on the campaign, it involved 10 TV commercials, digital, print, out-of-home, and
shopper initiatives.
#ThatsGold - In celebration of the Rio 2016 Olympic Games, Coca Cola Brazil launched the
#ThatsGold campaign, designed to celebrate the feeling that comes with accomplishing
something great – no matter how big or small.
Alongside digital and out-of-home ads, #ThatsGold also included an experiential element, with
the Olympic Park hosting a special Coca Cola space for visiting fans to have their photos taken
with props and buy branded pins and memorabilia.
A sleepover in the Christmas truck - We all know it’s Christmas when the Coca Cola truck
is spotted on our TV screens. In 2017, the brand decided to capitalise on festive-related
excitement with a fun competition in partnership with Laterooms.
The premise was pretty simple, with users merely having to explain why they’re the “ultimate
Christmas fan” in the hopes they’d win a sleepover in the famous Christmas truck. The lucky
winners were also treated to presents from Santa, festive films, and a load of Christmassy food
to complete their stay.
Objectives of Coca-Cola Campaigns -
Coca-Cola advertisement campaigns are launched to achieve specific objectives. The
company’s main objective is profit maximization and these advertisement campaigns
contribute to the achievement of this objective in several ways.
1. Creating awareness of the company and its products.
2. Informing and educating consumers and buyers.
3. Encouraging a liking for the company’s products over those of the competitors.
4. Encouraging product trial among potential new customers.
5. Increasing short-term sales by the means of stimulating action.
6. Reassuring customers and reinforcing their particular desirable buying behaviour.
7. Generating information from customers.
8. Creating sales lead.
Advertising Agency Partners –
Coke and Diet Coke were handled by Wieden & Kennedy
Coke Zero and Vitaminwater were handled by Crispin Porter & Bogusky
Ogilvy & Mather handled Coca-Cola Freestyle (a first ad push) and Fanta. There are
more than a dozen non-alcoholic, ready-to-drink beverage categories in which these
advertisers can make a mark for Coca-Cola.
Coca-Cola is the largest spender on global advertising and marketing of any other soft
drink producer.
In 2018, the company spent a whopping $5.8 billion on global advertising, dwarfing its
next rival PepsiCo by nearly $2 billion in spending.
https://youtu.be/8xCqmYbXH9w Share a coke ad Duration – 44seconds.
Promotional tools –
Advertising
Direct Marketing
Viral Marketing
Social Marketing
Sales Promotion
Product Simulation –
The benefits of Coco Cola are easy digestion, increase energy , focus on your mind and
stop nausea.
They maintain product and ingredient safety in supply chain in order to ensure quality.
Packaging is done in plant bottle packaging - Made from up to 30 percent plant-based
materials, the use of PlantBottle packaging to date has helped prevent 365,000 metric
tons of potential carbon dioxide emissions.C
Coca cola products are available in different sizes –
SSRB (standers size returnable bottle)
LRB (litter returnable bottle)
NRB (no return bottle) or disposable bottle
PET 1.5 (1.5 litter plastic bottle)
CANS (tin pack 330 ml)
The pricing strategy is based on competitors pricing.
USP of Coco Cola is world’s largest and most popular soft drink.
Features – Uplifting refreshment, great taste , goes well with food.
Audience Situation -
Segment - For all people seeking a soft drink for regular occasions, parties.
Target Group - All age groups Lower, middle- and upper-class people.
Positioning - Thanda; A soft drink for spreading happiness.
The company’s advertisement is known globally and depends heavily on tradition.
Coca Cola consider each customer as a target and a potential consumer. All age groups
are being targeted but the most potential is the age group from 18-25 that covers around
40% of total age segments.
Lifestyle: no lifestyle targeted but more and more busy lifestyle and mobile general(on
(youth) are considered to be the most important part of Coke’s consumers.
Occupation: no occupation(on targeted but consumers are mainly students and family-
oriented people )
Nature: fun, joy, entertainment loving…
Culture: The company adopted a “think local, act local” approach to marketing, which
highlighted the importance of addressing the cultural needs of customers in the local
market. Daft maintained the view that although Coca-Cola is a global brand, customers
do not drink Coca-Cola globally. As a result, Coca-Cola has been adopting a localized
strategy in marketing, advertising, and public relations by carrying out extensive
stakeholder analysis.
Competitive Analysis –
The biggest competition to Coco Cola is Pepsi and all the other cold drinks and water,
coffee, tea is the competitors.
Coca-cola is one of the most respected brands in the world and it has long warded off
the competition with the use of a strong distribution strategy and equally strong
marketing messages.
One of the reasons these brands fight tooth and nail is because both of them are very
strong in their distribution and have excellent marketing and sales policies. As a result,
we will find the maximum market share is of these 2 brands – be it any country.
Coco Cola put more advertisements than its competitors.
The campaigns run by Pepsi are Pepsi Max(2019),Say it with Pepsi (2016).
Regulatory Situation –
Coca cola company use different mediums
o Print media
o Pos material
o Tv commercial
o Billboards and holdings
o Print Media
Strengths in the SWOT of Coca Cola -
1. Brand Equity
2. Company valuation
3. Vast global presence
4. Largest market share
5. Fantastic marketing
6. Customer Loyalty
7. Distribution network
Weaknesses in the SWOT of coca cola -
1. Competition with Pepsi
2. Product Diversification is low
3. Absence in health
4. Water management
Opportunities in the SWOT of coca cola -
1. Diversification – Diversification in the health and food business will improve the
offerings of Coca cola to their customers.
2. Developing nations – The higher consumption in developing environment’s can be a
good opportunity to capitalize for Coca cola.
3. Supply chain improvement – Supply chain can be a major cost sink hole with the
transportation costs always rising.Coca cola should keep strict watch on its Supply chain
and keep improving to bring the cost down.
4. Market the lesser selling products – In the product portfolio of Coca cola, there are
several products which have not found acceptance in the market. Coca Cola needs to
concentrate on the marketing of these products as well
Threats in the SWOT of coca cola -
1. Raw material sourcing
2. Indirect competitors – Coffee chains like Starbucks, Café coffee day, Costa coffee are
on the rise. These chains offer a healthy competition to Coca colas carbonated drinks..
Similarly, health drinks like Real and Tropicana as well as energy drinks like Red bull
and Gatorade are stealing away the market share indirectly.
POLITICAL FACTORS
Coca Cola products are at the mercy of the FDA. They must meet regulations, given by the
government, to put products on store shelves.
Changes in established laws may prevent Coca Cola from distributing drinks. Accounting,
taxes, internal marketing, and changes in labour laws can affect Coca Cola in this way.
ECONOMICAL FACTORS
Coca Cola products are distributed to hundreds of countries. These countries have different
customs, cultures, tastes, and desires. Coca Cola has changed and updated how it handles its
products by creating new flavours to accommodate these customers.
They have $80+ billion worth of equity. The majority of that comes from the beverage industry.
And their income (roughly 70%) is from countries outside the United States.
But people are looking for healthy alternative drinks. Coca Cola is making minimal efforts to
move in that direction.
SOCIAL FACTORS
Coca Cola distributes the majority of its products in cultured countries. And they meet the
demands of these customers. In Japan, they created 30 alternative flavours to appeal to Japanese
consumers. In China, they are making similar efforts.
But in America, people focus on their health. They’re swapping sugary drinks for waters and
teas. Because these drinks are better for their health. Coca Cola needs to respond to these needs
by creating a product the healthy American public will respond to.
TECHNOLOGICAL FACTORS
Machinery have helped Coca Cola manufacture products in better and higher quantities. Coca
Cola has factories in Britain with top of the name machinery to ensure fast delivery times and
quality product development.
Coca Cola has used social media technology to connect with audiences. When they launched
their name campaign — putting real names on their bottles — customers lined up to take photos
of bottles with their name on it. These photos trended on social media sites like Facebook,
providing social proof and encouraging Coca Cola sales.
LEGAL FACTORS
Coca Cola retains all rights related to their business, including past and future products
developed with a patented process.
ENVIRONMENTAL FACTORS
Coca Cola is affected by water accessibility. Water is necessary for soft drink development.
But should something happen, like climate change, the company may be under fire.
This affects their competitor, Pepsi, as well. But since Coca Cola’s products are primarily soft
drinks, with a water accessibility issue, the company will suffer losses.
Coca Cola has to adhere to environmental laws as they manufacture their products. If anything
is amiss, it can affect how they distribute products — or stop production completely.
Additionally, they can take advantage of humid climates who would enjoy Coca Cola drinks
as a means to cool down. This works well in developing countries where Coca Cola would
have very little “premium” competition.
Market Share –
Carbonated drinks, the market for which has grown slowly at 4.31% CAGR between 2012 and
2017, drive 65% of Coca-Cola’s revenue according to industry research reports. In this period
of sluggish growth, the company’s share has dropped from 60.8% to 56.3%.
With changing consumer preferences, the soft drink major’s transition into a total beverages
company began in India about 18 months ago. Before this strategy kicked in, in FY16, Coca-
Cola India had clocked revenue of 17.5 billion with a CAGR of 9.77% over a four-year
period. Its bottling arm, Hindustan Coca-Cola Beverages (HCCB) in FY17 had a revenue of
94.7 billion and loss of 2.33 billion; for FY18 its revenue was 90.6 billion with a loss of
1.18 billion,its numbers for FY17 “were impacted on account of adverse effects of high
taxation, commodity inflation, aggressive investments in manufacturing capacity and
demonetisation.” In the case of FY18, it attributed it to the accounting impact of GST — excise
and other tax costs subsumed under GST. With the company taking a hit on its profitability and
a carbonated market that has lost almost all its fizz, a lot is riding on Coca-Cola India’s
transformation plan.
Sales Revenue –
In 2017, Coke sales were down 11% from a year earlier due to consumer tastes shifting away
from sugary drinks and health risks associated with artificial sweeteners in diet drinks.
Conclusion -
In conclusion, The Coca-Cola Company is the leading soft drink maker nationally and globally.
It has set itself far apart from its competitors by building a solid foundation of consumers since
1896. The Coca-Cola Company’s marketing machine continues to come up withnew, exciting,
and innovative ways to keep customers returning. They have effectively been able to execute the
concept of marketing along with establishing a solid marketing mix. Combine all of the
aforementioned with their strong presence in the community and you have a recipe for success
that the Coca Cola Company has grown accustomed to.
