Group3 - Strategic Brand Management - Coca Cola
Group3 - Strategic Brand Management - Coca Cola
Group: 3
• Target Market: Coca cola's target market is wide and it provides a variety of products to its
customers. The primary focus is to satisfy the needs of the customer both average and health
conscious one. The things they provide are said to make their target market delighted. The
target market of coca cola is between the age group of 10-45 and mostly focused on
youngster, family-oriented people. In terms of taste, it targets the consumer that needs strong
flavour in their regular drinks. For the health conscious one they came up with diet drinks
with variants. In both, Rural and urban areas people can easily afford it. Coca cola has
established itself as a side drink with almost all varieties of fast food like pizza, sandwich, etc.
Regular users
Behavioral Spending time with family and friend
High degree of loyalty
Refreshment
Emotional attach
PepsiCo
Red bull
Soylent
Thumbs up
Mountain dew
Monster beverage
• Positioning: With the help of a unique selling proposition as “live the coke side of life” which
associates joy and happiness which help coca cola to become a successful brand. It markets it
as a good quality product and gains customer loyalty. They make potential customers and the
customer feel connected with this brand with emotion. The first thing which comes into
customer mind while listening to the brand name is fun, entertainment and enjoyment. Its
products make customer happy and make a good influence in their lives
• Point of parity: The point of parity is its stability in terms of taste and drink type and all come
in beverage categories. All the brand focus on advertising and campaign using celebrities to
maintain its position in the market and attract major customer
• Point of difference:
Desirability criteria:
Coca cola makes its customers feel emotionally connected with its brand and also offer a
variety of drinks based on consumer preference whereas Pepsi is cool and tendy. It markets its
product as refreshing and thirst quenching. It provides premium products to its customers which
help in building loyalty and make potential customers. We relate with the brand by spending good
time with friends and family and making everyday life more cheerful. It mainly focuses on the
customer who is interested in sports, music and fun and makes eye-catching advertisements to
attract them.
Deliverability criteria:
The design and style of the bottle is more attractive which helps in distinguishing it from another
brand. Coca Cola assure that consumers can purchase that in different amounts like plastic bottles
that come in 0.25, 0.5 and 1 litre and cans available in 0.25 and 0.33 litre and also the material used
in packaging are recyclable and environment-friendly. The company offers a wide variety of
beverages, all of which provide customers with a pleasant experience. Coca-Cola, unlike other
beverage companies, promotes itself as a drink that brings enjoyment and positivity to customers'
lives. The main thing which helps it differentiate with others is a confident and cheerful view of
life, distinctive taste, unique and solid image in the market should be provided to the target
consumer at a competitive price.
Strategies: The company should focus on one brand strategy which provide four different variants
i.e. Coca cola, Diet coke, Coca cola zero and Coca cola life. In light of global calls for a sugar
crackdown, one brand strategy that provides consumers with more options is the company's goal
of promoting good health choices.
Reference:
• https://www.ukessays.com/essays/marketing/positioning-and-brand-management-in-
coca-cola.php
• https://www.edrawmind.com/article/coca-cola-segmentation-targeting-and-
positioning.html
• The-Coca-Cola-Company-Marketing-Strategy (2).pdf
Module 2: CBBE Model of Coca-Cola
The Customer-Based Brand Equity Model (CBBE) was designed by Kevin Lane Keller which
companies can use to create a successful brand. It is in a pyramid form and has 4 levels. Further,
each level has its own sub-dimensions. The key levels of the pyramid are-
• Brand Identity
• Brand meaning
• Brand Responses
• Brand Relationships
CBBE of Coca-Cola-
Brand Identity
Salience-
It relates to aspects of customer awareness of the brand. It also involves associating brand name,
logo, symbol, etc. which is instilled in the memory of customers. For Coca-Cola, the brand identity
is seen in-
• Speciality of red color
• Coca-Cola refrigerator
• Beverage zone of any supermarket.
Brand performance-
Performance Dimensions-
1. Primary ingredients and supplementary features.
2. Product reliability, durability, and serviceability.
3. Service effectiveness, efficiency, and empathy.
4. Style and design.
5. Price.
Brand Imagery-
The imagery perceptions can be formed directly or indirectly.
Directly- from consumer’s experiences, contact with the product, usage situation, etc.
Indirectly- through perceptions build through advertisements, someone’s saying, etc.
For Coca-Cola, it is-
• A feeling of freshness
• The togetherness of family and friends on special occasions
• To hold those relationships in life which are of prime importance
Judgments-
These are the set of opinions people often have about the brand or comment about it. The judgments
about Coca-Cola are-
• Quality
• Loyalty
• Credibility
• Consideration
• Superiority
Feelings-
It refers to what people feel about the brand not just in terms of the product quality but also in
the emotions attached to it.
• Coca-Cola’s ad campaign makes customers feel celebration, unity, family, friend, self-
respect, etc.
• They have shifted from ‘open happiness’ to the ‘role Coca-Cola plays in happiness.
• They want to make Coca-Cola an everyday drink that makes every moment special and
memorable.
Brand relationships
Resonance-
It includes-
• Behavioural loyalty
• Attitudinal attachment
• Sense of community
• Active engagement
Module 3: Brand Audit of Coca Cola
Brand Mission:
i. To refresh the people in mind, body and spirit
ii. To inspire moment of optimism and happiness through our brands and actions.
iii. To create value and make a difference
Brand Promise: “To inspire moments of optimism and uplift”- The beverage giant Coca Cola's
promise takes a slightly different path. It gives no indication of the service or product they serve,
instead seeking to convey a mindset held by all employees of the giant company. With a
marketing promise like this, Coca-Cola promotes itself as in the context of life-style brand, which
is far more than merely manufacturing popular drinking drinks.
• Coca Cola color palette and font: The company first initiated with a white and
black color combination to convey expertise, responsibility, and strength. The soft
drink titan Coca Cola empowered the red and white color scheme to represent
passion, youthful, power, love, and purity. The red logo was influenced by the brand's
debut advertising, which portrayed the character of Santa Claus dressed a red and
white outfit and holding a Coca-Cola bottle.
• Brand graphic: Coca-Cola company has been working on its famous brand
image for over 130 years. But, despite all of the creativity and originality, there is
one sign that continues to make itself known silently, and that was red disc. The
red disc had become a trust mark, assuring consumers that they would be getting
genuine Coca-Cola bottle at store.
• Slogans: The advertising slogans of the beverage giant Coca Cola company have
over the years symbolized not only the brand, but also the times. The slogans which
are used by Coca Cola are basic and straightforward way of talking about Coca-
Cola. Some slogans, such as "Where There's Coke, There's Hospitality," have been
insanely aim on the refreshing flavor, product quality and its role in entertainment,
as in 1948's.
Slogans for Coca-Cola from 1886 to 2021:
Brand Analysis:
Graph 1
Coca Cola Dominates the
soft drink market. About
61% of respondents
thought of Coca Cola
when they think of soft
drink. Second comes
Thumps Up (20%).
Soft Drink = Coca Cola
Graph 2
About 51% of the
respondent associated
Coca Cola company with
the Brand Value and 48%
with qualitied product.
This shows Coca Cola
have built great layer of
brand value and
satisfaction in terms of its
quality products.
Graph 3
Coca Cola drink is the one
of the most preferred
drinks by the respondents
with 69% from the bucket
of the coca cola company.
Followed by Thumps Up,
Maaza, and Sprite with
second most popular stake
in the beverage industry.
Graph 4
With the Analysis we
have found that PepsiCo
is the toughest
competitor with the
second mega
productions of
beverages industry.
Survey suggest that that
Pepsi holds around 65%
as the second competitor
followed by Red Bull
and Mountain Dew and
other companies.
Graph 5
About 57% of the respondents
believes Brand Trust is
contributing brand loyalty
towards Coca Cola. The
company provided an its own
identity in the consumer’s mind
when it comes to brand trust. As
there are many brands in the beverage industry but Coca-Cola drinkers are most loyal to this
brand because it kind of build the trust in the market.
Graph 6
For about 34% of the
respondents coca cola logo
means Refreshing and For
18.5% of the respondent
coca cola logo means
happiness.
Reference:
Brand Purpose and vision: https://www.coca-colacompany.com/company/purpose-and-vision
Brand Mission: https://fourweekmba.com/coca-cola-vision-statement-mission-statement/
Brand Promise- https://www.powerreviews.com/blog/brand-promise-examples/
Brand Personality: https://fabrikbrands.com/what-your-brand-personality-says-about-
you/#:~:text=Brand%20personality%20examples%3A%20Coca%2DCola%20brand%20personali
ty&text=This%20soft%2Ddrink%20brand%20is,%E2%80%9CShare%20a%20Coke%E2%80%9
D%20campaign.
Brand Mantra: https://www.techtarget.com/whatis/definition/brand-essence-brand-
mantra#:~:text=Brand%20essence%2C%20also%20known%20as,statement's%20tone%20is%20
most%20important.
https://www.slideshare.net/skparyani/coca-cola-brand-audit
https://phdessay.com/coca-cola-brand-audit/
https://www.acrwebsite.org/volumes/8388/volumes/v27/NA-27
Module 4: Brand Element
Coca-Cola is constructed with a number of physical factors that establish and construct
visual, aural, and aromatic identity, leading in intrinsic and fundamental brand elements.
Its brand characteristics were critical in increasing brand recognition.
Coca Cola brand elements are:
• Brand name: Coca Cola's two main constituents when it first came out were
cocaine and caffeine. Coca leaf was used to normally make the cocaine, while
kola nuts were used to make caffeine, giving rise to the term Coca Cola.
• Coca Cola color palette and font: The company first initiated with a white and
black colour combination to convey expertise, responsibility, and strength. The soft
drink titan Coca Cola empowered the red and white colour scheme to represent
passion, youthful, power, love, and purity. The red logo was influenced by the brand's
debut advertising, which portrayed the character of Santa Claus dressed a red and
white outfit and holding a Coca-Cola bottle.
• Brand graphic: Coca-Cola company has been working on its famous brand
image for over 130 years. But, despite all of the creativity and originality, there is
one sign that continues to make itself known silently, and that was red disc. The
red disc had become a trust mark, assuring consumers that they would be getting
genuine Coca-Cola bottle at store.
• Vision and mission statements: Coca Cola company’s vision statement was “to
craft the brand and choice of drinks that people love, to refresh them in body and
spirit. And done in ways that create more sustainable business and better shared
future that makes difference in people lives, communities and our planet.”
Mission statement is “to refresh the world in mind, body and spirit to inspire moments
of optimism and happiness through our brands and actions to create value and make a
difference.”
• Slogans: The advertising slogans of the beverage giant Coca Cola company have
over the years symbolised not only the brand, but also the times. The slogans which
are used by Coca Cola are basic and straightforward way of talking about Coca-
Cola. Some slogans, such as "Where There's Coke, There's Hospitality," have been
insanely aim on the refreshing flavour, product quality and its role in entertainment,
as in 1948's.
1. The brand element that is missing in the coca cola is that they do not have any brand
character/personality like 7up, Amul, Redbull, Parle G, Mc Donalds, many more.
Brand character help people to recognize brand even without the brand name. it can
provide a vehicle to express a person’s self, represent relationship, communicate
attributes, understand the customer. It can become point of differentiation for the
brand. Brand character can communicate the brand in a better way. If coca cola
launches its brand character than it will benefit them in various ways.
2. As per our concern, the Coca Cola company need some changes in the logo
because the name or the format in which Coca Cola is written might get sort of
confusing. Although Coca Cola is the most popular brand in the beverage
industry in the world, the word Cola where the letter “L” seems to be seen as
the letter “C”. So, it might create a sort of confusion in some consumers who
have never tried a Coca Cola product.
Another concern related to the brand element that Coca Cola needs to change is
its slogans. As we can see in the above context the Coca Cola company is
constantly changing their brand slogan. As they have changed around 49
different slogans from the year 1886 to 2021. Changing the slogans constantly
create a confusing image in the minds of consumers. As giant brands such as
Apple use the slogan “Think Different”, Nike use the slogan “Just Do It” and
Addidas with the slogan “Impossible is Nothing” these are slogans that they have
used for a longer duration which normally created an image in the minds of
consumers. And in the case of Coca Cola, they use to change their slogan a lot of
times which does create a confusing brand image for the company.
References:
1. https://designbro.com/blog/brand-logos/coca-cola-logo-visual-
identity/#:~:text=According%20to%20a%20popular%20story,the%20bra
nd% 20since%20the%20beginning.
2. https://www.coca-colacompany.com/au/news/past-and-present-
exploring-the- iconic-brand-design-behind-coca-cola-s-red-disc
3. https://www.coca-colacompany.com/company/purpose-
and- vision#:~:text=Our%20Vision%3A-
,Our%20Vision%3A,lives%2C%20communities%20and%20our%20planet.
4. https://www.coca-colacompany.com/company/history/history-of-coca-
cola- advertising-slogans
Module 5: Product, Price and Distribution Strategy
Product strategy:
Product mean what
value it delivers to its
customer. Beverages,
sparkling soft water,
water, juices, dairy and
plant based, coffee and
teas are the five
different categories of
coco cola. Coco cola
has extensive variety of
product throughout the
world. Coco cola
provide its product in
different taste based on
consumer preference. Coco cola come up with different varieties like diet coke 1982, Cherry
coke, diet cherry coke. Coke with lemon, vanilla coke, coco coal C2, coke with lime,
caffeine-free coke, diet coke with Splenda, coco coal zero, coco cola black cherry vanilla,
diet coco cola black cherry vanilla, diet coke with lime. Coca cola designed the product in a
way that its looks attractive and unique. The product is created in can and pat bottle with
standard size of 250ml, 500ml, 1l, 1.5l, 2l, 2.5l. The company signature product is coco cola.
Among all non-alcoholic beverages coca cola considered to be one of the best popular and
selling company in the world.
Price Strategy:
In terms of pricing, Coca cola maintains very high competitions with its competitors. As it
primarily follows the price skimming strategy, market penetration strategy and market price
strategy. In the price skimming strategy, the coca cola initially charges the premium price to
earn the maximum profit and offers a high-quality coke after that coca cola decided to use the
market penetration pricing strategy so they setting low prices to immediately attract the huge
amount of buyers and number of sales also acquire the high share of market. Now to compete
with the major rival such Pepsi, they follow the market price strategy, so setting the price at
the market rate indicates that they comparable to what the competitors are charging and also
trust that price should not be high and low than the value which the competitor is charged.
However, coca cola had great success by using this strategy.
There are alternate strategies which is uses by coca cola:
• Promotional price strategy: Coca cola makes advantage by using this strategy. To
enhance the short run sales usually priced below the marked price in the stores. Coca
cola reduce its price on some occasion like Ramadan, when the price of a 1.5 litre
bottle is reduced to 5 rupees so customer attracts and likely to buy it. Coca cola also
focus on promotion strategy through the ad campaigns via television, print media, and
sponsorship and so on. It sponsors FIFA World Cup, Olympic Games etc.
• Psychological price strategy: Coca cola utilize psychological price to encourage
customer to buy their product for example, in 2009 they used initial Coke
psychological method 2 litre original coke jug price $2.49 they determine the price
ends with 9. So, the customer think that the price is lower than the $2.50.
• Segmented pricing: Coca cola comes in a variety of price range based on the different
item. They sold their product in different sizes and at lower cost to raise their profit.
Quantity Price
100ml Rs 6
250ml Rs 20
750ml Rs 40
1.25l Rs 65
2l Rs 90
2.25l Rs 95
Distribution Strategy
These bottling partners work closely with suppliers, restaurants, grocery stores, retail outlets,
and many Others, to execute localized core strategies developed in consultation with Coca-
Cola. More precisely, despite the fact that Coca-Cola is a global company, its items never
have to travel far to reach the final client, making the product more local than you may think.
Coca-Cola beverages may be roughly classified into the following arrays of points of sale:
• Wholesalers/ Distributors
• Retailers
• Restaurants/ Cafes/ Nightclubs
• ATM (Beverages vending machines)
• Petrol Stations
Current Gaps
Coca-Cola, regardless of solid worldwide brand recognition, the organization battles to keep
up with huge development in the refreshment/soda area. Patterns shift, and carbonated
refreshment deals in North America keep on declining as purchasers choose different choices
like water, juice, cold-fermented espresso and teas, or caffeinated drinks. Remember Coca-
Cola's portfolio has developed over the course of the years as the organization endeavors to
mirror the progressions in buyer tastes and patterns. Due to this high varieties available in the
market, customer tends to shift from one product over other to try or to change the taste. This
shows that coco-cola misses out on brand loyalty of their customer base and therefore coco-
cola should work on its brand loyalty.
SOLUTIONS - Brand Building
World class marketing –
Incredible advertising starts with human experiences - understanding what the buyer needs,
making an unrivaled tasting item and through the shopper enthusiasm focuses, recounting the
brand story in an appealing way. Our new working design is wiring us to accomplice across
capacities and topographies to make worldwide arrangements, empowering us to settle the
score better at what we specialize in. Combined with the size of our new office associations,
we feel we've never been in a superior situation to connect our customers in start to finish
commitment across mediums outside of conventional media. We accept this will bring about
more customized associations with shoppers, adding new consumers to our brands while
taking into account more co-creation and significant informing.
Innovations
Supplementing our work to assemble incredible brands is our focused way to deal with
development, to offer new applicable item or gear or thoughts that might be of some value.
Buyer centricity permits us to drive gradual development through advancement. We are
zeroing in on "more focused advancement", however this doesn't imply "less development".
We are moving toward advancement from alternate points of view and with thorough targets:
Our pipeline for 2022 has been created through clear schedules and cycles to evaluate the
reason and the right degree of development. Savvy trial and error goes past new flavors and
brands - it additionally incorporates item, bundle and interaction. It urges neighborhood
markets to test the smartest thoughts in a manner that empowers us to sustain and scale them,
permitting us to grow across geologies quicker than previously.
Reference:
1. https://investors.coca-colacompany.com/about/coca-cola-system
2. https://mpk732.wordpress.com/2015/05/17/the-coca-cola-companys-distribution-
strategy/
3. https://www.thestrategywatch.com/marketing-mix-coca-cola/
4. https://www.mbaskool.com/marketing-mix/products/16786-coca-cola.html
Module 6: Secondary association leveraged
Company: Coco-Cola
Country of origin: It's essential to link your new brand extension to memorable, powerful
elements such as the country of origin. Coco Cola’s country of origin is the United States of
America. Coco cola associates its brand with America as it is well known for the beverage
market and carbonated soft drinks.
Channel of distribution: It is important to
ensure that the product is available to a
different market segment. First, coco-cola
sells its product to bottling operations,
distributors, wholesalers and retailers. Then
they further sell it to retail outlets,
restaurants, cafés, corner stores,
supermarkets, etc.
Other brands (co-branding): Co-branding is essential as it diminishes the overall cost and
helps in introducing a product to the market. Coco cola aligned with the American Red Cross,
coco-cola with tic tac and coco-cola with burger king.
Program Multiplier:
The quality of the Posters
Marketing program
decides whether the
customer’s mindset will
be affected or not. A
good marketing
program can positively
change customers’
mindsets in the
company’s favor. Coca-
Cola’s marketing
Campaign “Open
Happiness” affected the
customer’s mindset in
such a way that customers recall/ remember Coca-Cola whenever they have happiness. Open
happiness- which refers to opining Coca-cola in happy times. A Quality Marketing program
should have Clarity, Relevance, Distinctiveness, and Consistency.
Open Happiness campaign by Coca Cola India:
Shareholder Value:
Stock Price:
The stock price of The Coca-Cola Company is $63.44(as of 03/05/2022 closing). The stock
price of the coca-cola company has increased significantly, Stock price year ranges from
$52.28 to $67.20 (B/W May2021-May2022).
P/E Ratio:
The P/E ratio of The Coca-Cola Company is 26.76%.
Market Capitalization:
The market Capitalization of The Coca-Cola Company is 275.01 billion USD.
Consumer Multiplier:
• The customer Size and profile of The Coca-Cola Company are not defined.
• The main competitor of The Coca-Cola Company is PepsiCo, and Competitors
are reacting by reactivating their marketing programs of Pepsi.
• The Coca-Cola Company uses multiple channel support to communicate or
interact with their customers. Like Emails, Digital marketing campaigns, print
media including hoardings and newspaper ads, and Videography campaigns on
TV, many channels are used by the company.
Market Performance: A positive customer mindset as a result higher the sales of the
cocacola and also leads to a rising in the market performance. Coca-cola serves more than 1.9
billion drinks in 200 and more countries within a day. As coca-cola is one of the leading
players in the beverage market so Coca-cola owns 56.7% market in India and 60% is the
market share in carbonated drinks. In 2021, India generate approx. 23 billion revenue by
using a unique business model. Cocacola also has a significant impression on the mind of the
customer so the profitability of the company increases.
Market Multiplier: The Company has generated net operating revenue of over $38.66
billion. The company is growing rapidly. The shareholder value of coca-cola is around $337
billion. The production of new products is driven by customer demand and preferences, with
the company ready to adapt to the dynamic demand of its variety of customers.
Reference:
• How many drinks does The Coca-Cola Company sell worldwide each day?|
Frequently asked questions | Coca-Cola GB. (n.d.). Coca-Cola Great Britain.
https://www.coca-cola.co.uk/our-business/faqs/how-many-cans-of-coca-cola-
aresold-worldwide-in-a-day