Post on 14-Apr-2018
7/29/2019 Promotional Strategies of Coca Cola
1/96
Promotional Strategies of coke products
ABSTRACT
This study identifies and examines the extant literature in international
relationship marketing. Twenty-four empirical studies that address various aspects of
relationship marketing are identified. However, only eight studies were found to explore
marketing relationships across national boundaries. The remainder combine multi-country
data or examine relationship marketing in non-US settings. In this review, we report the
nature and the findings of these studies and discuss their implications for future research
and marketing practice. It is apparent from this review that, despite the increasing
importance of international marketing, insufficient attention is being paid to exploring and
theorizing relationship marketing in international contexts. Furthermore, limited effort in
validating domestic findings in international settings circumscribes the universalapplicability and managerial relevance of relationship marketing studies.
Everyone's tried it; it's the most popular fizzy drink in the world and its stocked
everywhere, all over the world - in your local newsagent, at the supermarket, at the cinema,
on the plane - everywhere. We've all heard how Coca-Cola can dissolve a tooth if its left in
a glass of coke for several days but Coke's sales still remain sky high and it remains an icon
and symbol of modern America.
Coca-Cola has a unique taste and to be completely honest I would describe it as unnatural.
Most other soft drinks are made from a fruit, even though they contain hardly any of it. For
example all the Tango drinks are made up of fruits, Sprite is made from lemons and limes.
But Coke is not well made from any fruit, its just Coke.
Guzzling down Coke when thirsty will not quench your thirst, although it will feel like it is
quenching your thirst. The truth is that Coca-Cola actually makes you thirstier, like most
fizzy drinks. As you'll probably know the best thing to drink when really thirsty is water.
And if not water a still orange squash should do the trick. A hot cuppa tea also apparently.
1
7/29/2019 Promotional Strategies of Coca Cola
2/96
Promotional Strategies of coke products
CONTENTS
CHAPTER-I Pg.No.
INTRODUCTION 8MODERN TRADE 14IMPACT OF MODERN TRADE ON FMCG 16LIMITATIONS OF THE STUDY 19SCOPE OF THE STUDY 20RESEARCH METHODOLOGY 21
CHAPTER-II
REVIEW OF LITERATURE 23
CHAPTER-III
COMPANY PROFILE 46
CHAPTER-IV
DATA ANALYSIS AND INTERPRETATION 66
CHAPTER-VSUGGESTIONS AND RECOMMENDATIONS 95FINDINGS 96SUGGESTIONS 97CONCLUSIONS 98
CHAPTER-VI
BIBILOGRAPHY 101
2
7/29/2019 Promotional Strategies of Coca Cola
3/96
Promotional Strategies of coke products
CHAPTER -1
INTRODUCTION
3
7/29/2019 Promotional Strategies of Coca Cola
4/96
Promotional Strategies of coke products
CHAPTER-I
INTRODUCTION
Marketing is fast moving and exciting activity in every body activates. The sellers,
distributors, advertising agencies, consultants, transporters, financers, store agencies and
every one as a counter are part of the marketing system. Any exchange process be it
consumer, goods, intermediary goods, services of ideas, comes under the preview of
marketing. It is very often regarded that the development of markets and marketing is
synonymous with the economic development of account. Through marketing is an age-old
activity: it has developed recently as an action discipline. In the ever-growing corporate
world, marketing is being regarded as a crucial element for the success of an Enterprise.
There are many definitions of marketing, defined by several marketing experts,
Marketing is the social process by which individuals and groups obtain what they need and
want through creating and exchanging products and value with others
Kotler.
Marketing is the management process that identifies, anticipates and satisfies customer
requirements profitably
The Chartered Institute of Marketing (CIM).
The right product, in the right place, at the right time, at the right price -
Adcock.
Marketing is essentially about marshalling the resources of an organization so that they
meet the changing needs of the customer on whom the organization depends -
4
7/29/2019 Promotional Strategies of Coca Cola
5/96
Promotional Strategies of coke products
Palmer.
Marketing is the process whereby society, to supply its consumption needs, evolves
distributive systems composed of participants, who, interacting under constraints -
technical (economic) and ethical (social) - create the transactions or flows which resolve
market separations and result in exchange and consumption.
Bartles.
Marketing is the process by which companies determine what products or services
may be of interest to customers, and the strategy to use in sales, communications and
business development. It is an integrated process through which companies create value for
customers and build strong customer Relationships in order to capture value from
customers in return.
Marketing is used to identify the customer to keep the customer, and to satisfy the
customer. With the customer as the focus of its activities, it can be concluded that
marketing management is one of the major components of business management. The
evolution of marketing was caused due to mature markets and over capacities in the last 2-
3 centuries. Companies then shifted the focus from production to the customer in order to
stay profitable.
The marketing discipline is undergoing fresh reappraisal in the light of the vast
global, technological, economic and social challenges facing todays companies and
countries. Marketing at its best is about value creation and raising the worlds living
standards. Todays winning companies are those who succeed most in satisfying, indeed
delighting their target customers.
5
7/29/2019 Promotional Strategies of Coca Cola
6/96
Promotional Strategies of coke products
MARKETING CONCEPT
The marketing concept is a philosophy. It makes the customer, and the satisfaction of his or
her needs, the focal point of all business activities. It is driven by senior managers,
passionate about delighting their customers.
The term marketing conceptholds that achieving organizational goals depends on knowing
the needs and wants of target markets and delivering the desired satisfactions. It proposes
that in order to satisfy its organizational objectives, an organization should anticipate the
needs and wants of consumers and satisfy these more effectively than competitors
Marketing focuses on the satisfaction of customer needs, wants and requirements.
The philosophy of marketing needs to be owned by everyone from within the
organization.
Future needs have to be identified and anticipated.
There is normally a focus upon profitability, especially in the corporate sector.
However, as public sector organizations and not-for-profit organizations adopt the
concept of marketing, this need not always be the case.
More recent definitions recognize the influence of marketing upon society.
EVOLUTION OF MARKETING
An orientation, in the marketing context, relates to a perception or attitude a firm holds
towards its product or service, essentially concerning consumers and end-users.
Throughout history marketing has changed considerably as consumer tastes are changing
faster
Marketing practice tended to be seen as a creative industry in the past, which included
advertising, distribution and selling. However, because the academic study of marketing
makes extensive use of social sciences, psychology, sociology, mathematics, economics,
anthropology and neuroscience, the profession is now widely recognized as a science,
6
7/29/2019 Promotional Strategies of Coca Cola
7/96
Promotional Strategies of coke products
allowing numerous universities to offer Master-of-Science (MSc) programmes. The
overall process starts with marketing research and goes through market segmentation,
business planning and execution, ending with pre and post-sales promotional activities. It is
also related to many of the creative arts. The marketing literature is also adept at re-
inventing itself and its vocabulary according to the times and the culture.
EARLIER APPROACHES
The marketing orientation evolved from earlier orientations namely the production
orientation, the product orientation and the selling orientation.
Orientation Profitdriver
Western
European
timeframe
Description
ProductionProduction
methods
Until the
1950s
A firm focusing on a production orientation specializes
in producing as much as possible of a given product or
service. Thus, this signifies a firm exploiting
economies of scale, until the minimum efficient scale
is reached. A production orientation may be deployed
when a high demand for a product or service exists,
coupled with a good certainty that
consumer tastes do not rapidly alter (similar to the
sales orientation).
Product Quality
Of the
product
Until the
1960s
A firm employing a product orientation is chiefly
concerned with the quality of its own product. A firm
would also assume that as long as its product was of a
high standard, people would buy and consume the
product.
Selling Selling
methods
1950s and
1960s
A firm using a sales orientation focuses primarily on
the selling/promotion of a particular product, and not
determining new consumer desires as such.
Consequently, this entails simply selling an already
7
7/29/2019 Promotional Strategies of Coca Cola
8/96
Promotional Strategies of coke products
existing product, and using promotion techniques to
attain the highest sales possible.
Such an orientation may suit scenarios in which a firm
holds dead stock, or otherwise sells a product that is in
high demand, with little likelihood of changes in
consumer tastes diminishing demand.
Marketing
Needs and
wants of
customers
1970 to
present
day
The marketing orientation is perhaps the most
common orientation used in contemporary marketing.
It involves a firm essentially basing its marketing plans
around the marketing concept, and thus supplying
products to suit new consumer tastes. As an example, a
firm would employ market research to gauge consumer
desires, use R&D to develop a product attuned to the
revealed information, and then utilize promotion
techniques to ensure persons know the product exists.
CONTEMPORARY APPROACHES
8
7/29/2019 Promotional Strategies of Coca Cola
9/96
Promotional Strategies of coke products
Recent approaches in marketing are the relationship marketingwith focus on the customer,
the business marketingorindustrial marketingwith focus on an organization or institution
and the social marketingwith focus on benefits to the society. New forms of marketing
also uses the internet and are therefore called internet marketing or more generally e-
marketing, online marketing, search engine marketing, desktop advertising or affiliate
marketing. It tries to perfect the segmentation strategy used in traditional marketing. It
targets its audience more precisely, and is sometimes called personalized marketing or one-
to-one marketing.
MODERN TRADE
Orientation Profit driver
Western
European
timeframe
Description
Relationship
marketing/
Relationship
management
Building and
keeping good
customer
relations
1960s to
present
day
Emphasis is placed on the whole relationship
between suppliers and customers. The aim is to
give the best possible attention, customer
services and therefore build customer loyalty.
Business
marketing/
Industrial
marketing
Building and
keeping
relationships
between
organizations
1980s to
present
day
In this context marketing takes place between
businesses or organizations. The product focus
lies on industrial goods or capital goods than
consumer products or end products. A different
form of marketing activities like promotion,
advertising and communication to the customer
is used.
Social
marketing
Benefit to
society
1990s to
present
day
Similar characteristics as marketing orientation
but with the added proviso that there will be a
curtailment on any harmful activities to society,
in either product, production, or selling methods.
9
7/29/2019 Promotional Strategies of Coca Cola
10/96
Promotional Strategies of coke products
Modern Trade is the process of doing business by utilizing and
implementing latest trends in the business with the help of technology to reach the target
customer.
Now a days each and every one in the market is implementing these practices and having
successful business.
Modern format retail is witnessing phenomenal growth, driven by the impact of increasing
urbanization, the new well-traveled, knowledgeable Indian consumer and a youth-driven
culture. In its official estimate for the current fiscal ending in March, the government said
that the economy, Asia's fourth largest, was expected to grow at 9.2 per cent.
All these factors are rapidly changing the needs and aspirations of consumers. Schedules
are also getting tighter, with the time for professional commitments and regular chores
getting limited. Hence, the "convenience" factor has a major influence on purchase
decisions.
Modern trade, the characteristic of which is having everything under one roof and with agreat array of products displayed in an uncluttered fashion where the touch and feel factor
prevails, is providing an environment to access products driven by convenience and
fashion.
EVOLUTION OF MODERN TRADE
When we discuss modern trade, the terms large-scale; modern-formatand organized
are used rather synonymously in India. However, the three terms need not
necessarily mean the same thing.Large-scale refers to the scale of operation of retail
business - which in turn implicitly refers to a chain of stores. Modern-format
basically refers to self-service. However, many of the self-service stores which call
themselves Supermarkets, are in the range of 500 sq.ft. or less in size and are
10
7/29/2019 Promotional Strategies of Coca Cola
11/96
Promotional Strategies of coke products
nothing more than independent mom-and-pop stores. And organized retailtypically
means large-scale chain stores which are corporatized, apply modern-management
techniques and are very likely to be self-service in nature. Most of the estimates of
organized retailmarket size refer to only large-scale retail. For us modern-retailin
this paper means self-service in both large-scale as well as small-scale.
Contrary to the popular view where-in all credit for growth of modern retail goes to
the consumer and their increasing purchasing power, it is found that consumers
manufacturers and retailers all three have been impacting the evolution process.
MODERN TRADE IN INDIA
Indiaonce again topped the world in the ACNielsen Consumer Confidence Index for the
third time in a row since the index was established in early 2005, with the highest score of
181 in the last leg of the survey, conducted in November 2009.
Strong economic growth has brought with it new sets of Indian consumers. The booming
young adult population with unprecedented levels of disposable income is more conscious
of the latest trends and fashion. Enhanced media penetration and greater connectivity also
are making consumers more knowledgeable and discerning.
Modern trade is an old saga in India with about 7.8 million retail stores, but most of those
are traditional ones, which only recently started making way for hypermarkets,
supermarkets and specialty stores. Modern trade in India is witnessing tremendous growth,
especially in Tier I cities
It accounts for 4 per cent of urban FMCG sales but for the top 15 metros it is about 10.7 per
cent of the total FMCG sales. For South Indian metros it touches about 19 per cent, because
modern trade started there a little earlier. There are more than 3,840 modern trade stores inIndia now.
IMPACT OF MODERN TRADE ON FMCG
11
7/29/2019 Promotional Strategies of Coca Cola
12/96
Promotional Strategies of coke products
Looking at the kind of consumer patronage a modern trade format store has in terms of an
urban population growing rich, there are a few segments in the FMCG range of products
that have experienced good growth from the modern trade format. In the food segment,
processed food products (23 per cent), impulse food products (32 per cent) and packaged
grocery (38 per cent) are the segments that have witnessed immense growth from urban
Indian modern stores.
Similarly, in the home and personal care segments it is household cleaning products (38.1
per cent), fabric care (23 per cent) and categories related to grooming, viz. hair care (28.3
per cent), fragrances (26 per cent) and skin/body care (23 per cent) that have recorded
considerable growth from urban modern format stores.
An increasing number of working women and nuclear families are some reasons behind the
growth in the food categories. Packaged grocery is a very convenient product for people
who are busy and hence we see it doing so well. Again the young adult population of India
is ambitious and hard working, and has the money to spend on lifestyle. They are brand-
conscious and aware of what their counterparts in the West are wearing and buying.
No wonder products related to grooming like like skin care, hair care, and fragrances, or,
for that matter, products like household cleaners are witnessing growth. These consumersrepresent the target for manufacturers and retailers, who want to capture a share of the
booming consumer markets in India. Manufacturers, on their part, are investing
aggressively to capture the minds of today's and tomorrow's generations.
With more modern format stores setting up shop in the country we are also witnessing an
expansion in these segments in terms of availability of innovative packaging sizes, product
innovation and overall ranges.
Modern trade and food as a category: Food accounts for about 48 per cent of FMCG sales
in the country and for modern trade the number is even higher, at 51.3 per cent. Like other
Asia-Pacific markets, in India too, among the processed food segments, the breakfast
cereals category is exhibiting a stupendous 40 per cent growth rate. Other growing
12
7/29/2019 Promotional Strategies of Coca Cola
13/96
Promotional Strategies of coke products
categories are biscuits (26 per cent), vermicelli & noodles (28 per cent), beverages (24 per
cent) and ketchup and sauce (29 per cent).
Indians have an old fascination for home-cooked food, especially when it comes to lunch
and dinner. With the changed lifestyle, the trend is changing and people have started
showing interest in ready-to-cook foods. However, even today a majority of these
consumers are willing to restrict the experiment to packaged foods and accompaniments
meant for breakfast and snack time.
Chocolates (28 per cent) and namkeens (37 per cent) are two major categories of impulse
food products showing good growth, along with packaged rice (92 per cent) in the
packaged grocery segment.
Modern trade and home and personal care products (H&PC): As far as H&PC is concerned,
from modern trade it has witnessed a growth rate of about 23 per cent, which is at par with
the overall growth. Modern trade brings with it a great shopping experience, with good
product displays, making selection far easier.
Under household cleaners it is floor cleaners (88 per cent) and toilet cleaners (37 per cent)
that are growing well; in hair care, it is hair conditioners (43 per cent) and hair oil (35 per
cent), and for the skin care segment, it is skin creams (35 per cent) that are driving the
H&PC sales in modern stores.
With the overall economy doing well and basic necessities mostly taken care of, people are
now more keen to look and feel good and are ready to devote time and money on that.
Unlike in the past, when there was one product used for all household cleaning, people now
are willing to experiment with specific products meant for cleaning glasses, utensils, floors,
etc.
THE emergence of modern trade (or organized retail) is currently the biggest challenge
facing FMCG manufacturers, who could see increasing pressure on sales margins as a
result.
13
7/29/2019 Promotional Strategies of Coca Cola
14/96
Promotional Strategies of coke products
Citing as an example the situation in the US where retailer Wal-Mart is much bigger than
any of the FMCG companies, he said such a scale would give modern trade the power to
negotiate. "Today, I give 13 per cent (margin). Modern trade won't settle for anything less
than 20 per cent," he said, addressing students of the ICFAI Business School as part of a
BL Club lecture.
The nearly Rs 52,000-crore Indian FMCG market is still predominantly driven by the
traditional retail format, which accounts for 97 per cent of the category sales. Modern trade
has made some strides; it accounted for 6 per cent of the FMCG sales in urban India in
2004, compared with 2 per cent in 2003.
14
7/29/2019 Promotional Strategies of Coca Cola
15/96
Promotional Strategies of coke products
LIMITATIONS OF THE STUDY
The following are some of the major limitations of the study.
Even though every effort is made to complete all areas of the project: it still has
its own limitations. Due to cost and time constraints the sample size was
restricted to 32 store managers.
This study is pertaining to certain organization that is Hindustan Coco Cola
Beverages Pvt Ltd. The results may not be applicable to other organization and
it is strictly for the academic purpose only.
The tools used for analysis has its own limitations.
Managers have got their own limitations in regards to some questions like store
sales information etc..
The store mangers were not co-operated properly because of time.
NEED FOR THE STUDY:
A study on the Promotional Strategies can help us to know the customers reaction and
response towards the offers and all promotion activities about COKE products and the
perception of the target customer. It can also useful to know the services that can
provide by the company to the customers, in increase of sales of the company and
create a brand image.
15
7/29/2019 Promotional Strategies of Coca Cola
16/96
Promotional Strategies of coke products
OBJECTIVES
1. To identify the taste and preferences of the target customers
2. To know the customers reaction about coke offers.
3. To know the competitors promotional strategies.
4. To know the customer satisfaction towards coke products
5 To know the modern trade characteristics
6 To know the coke share in the store.
7 To know the coke sales in 32 outlets.
8 To know the customers perception.
SCOPE OF THE STUDY
This Study consists around 32 outlets in Hyderabad. This ultimate task was to
identify customers perception regarding the switchgear products of the company. This
study also consists of development suggestions and modifications given by the customers
16
7/29/2019 Promotional Strategies of Coca Cola
17/96
Promotional Strategies of coke products
RESEARCH METHDOLOGY
QUESTIONNAIRE DESIGN
Questionnaire is the heart of the survey operation. This is a structured questionnaire,
which has been framed for conducting the survey. The questionnaire was presented with
exactly the same wordings and in the same order to all of the respondents.
DATA COLLECTION
Data refers to information or facts. It includes numerical figures, non-numerical
figures, descriptive facts and qualitative and quantitative information. The task of data
collection begins after a research problem has been defined and research problem has beendefined and research plan has been decided.
Data could be broadly classified as follows:
Primary data
Secondary data
PRIMARY DATA
Primary data is known as the data collected for the first time through field
surveys and thus happens to be original in character. Such data are collected with
17
7/29/2019 Promotional Strategies of Coca Cola
18/96
Promotional Strategies of coke products
specified set of objectives to assess the current status of any variables studied. The
primary data used for this project was collected using questionnaires. The information
was collected from the store managers of Food World Outlets.
SECONDARY DATA
Secondary data refers to the information or facts already collected
and available for reference from sources such as library, website etc. Secondary data about
the company profile and other details were collected from the company website and
through personal discussion with the company human resource manager.
The secondary data on the other hand, are those which have already been
collected by someone else and which have already been passed through the statistical
reports.
The sources of gathering secondary data are detailed as follows:
1. The companys annual records
2. The companys trade journals
3. Company manuals and magazines
4. Websites
SAMPLING PROCEDURE
Purposive sampling is the sampling procedure used in the survey. This method
of sampling involves selecting the sample elements using some convenient method with
out going through the rigors of sampling method. There researcher may make use of
any convenient base to select the requires number of samples. The procedure is known
as non-probability sampling technique.
18
7/29/2019 Promotional Strategies of Coca Cola
19/96
Promotional Strategies of coke products
PERIOD OF STUDY
The period of study was limited to two months &during that period the following
steps were under taken:
Objectives were set and questionnaire was finalized.
Data were collected and recorded.
Data was analyzed and interpreted.
Reports were discussed with the management for further reference.
SAMPLE SIZE
Due to the time and resource constraints the sample size of the research has been
restricted to 29respondents.
19
7/29/2019 Promotional Strategies of Coca Cola
20/96
Promotional Strategies of coke products
SAMPLE UNIT
Sample size : 15( 32 samples)
Sample element : Food World out lets
Sample unit : customers of the outlet
Sample area : Hyderabad
20
7/29/2019 Promotional Strategies of Coca Cola
21/96
Promotional Strategies of coke products
CHAPTER-II
REVIEW OF LITERATURE
21
7/29/2019 Promotional Strategies of Coca Cola
22/96
Promotional Strategies of coke products
THEORETICAL FRAME WORK
Promotion is the process of taking the product to a next level in the hierarchy of
product sales by using latest trends and practices of marketing.
What is Promotion?
Promotion:Promotion decisions are those related to communicating and selling to
potential consumers. Since these costs can be large in proportion to the product price, a
break-even analysis should be performed when making promotion decisions. It is useful to
know the value of a customer in order to determine whether additional customers are worth
the cost of acquiring them.
Promotion decisions involve advertising, public relations, media types, etc.
Promotion comes under MARKETING MIX , it is an element of marketing mix.
Marketing decisions generally fall into the
following four controllable categories:
Product
Price
Place
Promotion
These four P's are the parameters that the marketing manager can control, subject to the
internal and external constraints of the marketing environment. The goal is to makedecisions that center the four P's on the customers in the target market in order to create
perceived value and generate a positive response
There are so many decisions that can be taken by the marketing manager to decide about
the market conditions of the product and also about the sales of the product.
22
7/29/2019 Promotional Strategies of Coca Cola
23/96
Promotional Strategies of coke products
The ingredients in Borden's marketing mix included product planning, pricing, branding,
distribution channels, personal selling, advertising, promotions, packaging, display,
servicing, physical handling, and fact-finding and analysis. E. Jerome McCarthy later
grouped these ingredients into the four categories that today are known as the 4 P's of
marketing, depicted below:
PROMOTION DECISIONS
In the context of the marketing mix, promotion represents the various aspects of marketing
communication, that is, the communication of information about the product with the goal
of generating a positive customer response. Marketing communication decisions include:
Promotional strategy (push, pull, etc.)
Advertising
Personal selling & sales force
Sales promotions
Public relations & publicity
Marketing communications budget
Promotional strategies and practices:
PROMOTION:
Telling the customer about the product
Promotion is typically sub-divided into
o Mass Selling
Advertising - which you pay for
Publicity - which is free
o
23
7/29/2019 Promotional Strategies of Coca Cola
24/96
Promotional Strategies of coke products
o Sales Promotion
Stuff you do in the store to get the customer to try the product
Contests, coupons, free samples
o Personal Selling
Direct contact person2person with a potential customer
Sometimes for large industrial sales
Sometimes for high quality consumer products, like selling a car
Where and when can you get across your marketing messages to your target
market?
Will you reach your audience by advertising in the press, or on TV, or radio, or on
billboards? By using direct marketing mailshot? Through PR? On the Internet? When is the best time to promote? Is there seasonality in the market? Are there any
wider environmental issues that suggest or dictate the timing of your market launch,
or the timing of subsequent promotions?
How do your competitors do their promotions? And how does that influence your
choice of promotional activity?
PROMOTION STRATEGIES
A successful product or service means nothing unless the benefit of such a service can be
communicated clearly to the target market. An organizations promotional strategy can
consist of several aspects as follows.
Advertising: Is any non-personal paid form of communication using any form of mass
media.
Public relations: Involves developing positive relationships with the organization media
public. The art of good public relations is not only to obtain favorable publicity within the
media, but it is also involves being able to handle successfully negative attention.
Sales promotion: Commonly used to obtain an increase in sales short term. Could involve
using money off coupons or special offers.
24
7/29/2019 Promotional Strategies of Coca Cola
25/96
Promotional Strategies of coke products
Personal selling: Selling a product service one to one.
Direct Mail: Is the sending of publicity material to a named person within an organization.
There has been a massive growth in direct mail campaigns over the last 5 years. Spending
on direct mail now amounts to 18 bn a year representing 11.8% of advertising expenditure
(Source: Royal Mail 2000). Organizations can pay thousands of pounds for databases,
which contain names and addresses of potential customers.
Direct mail allows an organization to use their resources more effectively by allowing them
to send publicity material to a named person within their target segment. By personalizing
advertising, response rates increase thus increasing the chance of
improving sales.
Listed below are links to organization who's business involves direct mail.
Message & Media Strategy
An effective communication campaign should comprise of a well thought out message
strategy. What message are you trying to put across to your target audience? How will you
deliver that message? Will it be through the appropriate use of branding? Logos or slogandesign?. The message should reinforce the benefit of the product and should also help the
company in developing the positioning strategy of the product. Companies with effective
message strategies include:
Nike: Just do it.
Toyota: The car in front is a Toyota.
Media strategy refers to how the organization is going to deliver their message. What
aspects of the promotional mix will the company use to deliver their message strategy.
Where will they promote? Clearly the company must take into account the readership and
general behavior of their target audience before they select their media strategy. What
25
7/29/2019 Promotional Strategies of Coca Cola
26/96
Promotional Strategies of coke products
newspapers do their target market read? What TV programmes do they watch? Effective
targeting of their media campaign could save the company on valuable financial resources.
Push & Pull Strategies
There are three types of sales promotion strategies:
A push strategy
A pull strategy or
A combination of the two
A 'push' sales promotion strategy involves 'pushing' distributors and retailers to sell your
products and services to the consumer by offering various kinds of promotions andpersonal selling efforts. What happens here is that a company promotes their
product/services to a reseller who in turn promotes it to another reseller or to the consumer.
The basic objective of this strategy is to persuade retailers, wholesalers and distributors to
carry your brand, give it shelf space, promote it by advertising, and ultimately 'push' it
forward to the consumer. Typical push sales promotion strategies include; buy-back
guarantees, free trials, contests, discounts, and specialty advertising items.
A 'pull' sales promotion strategy focuses more on the consumer instead of the reseller or
distributor. This strategy involves getting the consumer to 'pull' or purchase the
product/services directly from the company itself. This strategy targets its marketing efforts
directly on the consumers with the hope that it will stimulate interest and demand for the
product. This pull strategy is often used when distributors are reluctant to carry or distribute
a product. Typical pull sales promotion strategies include; samples, coupons, cash refunds
or rebates, loyalty programs and rewards, contests, sweepstakes, games, and point-of-
purchase displays.
A 'combination' sales promotion strategy is just that; it is a combination of a push and a
pull strategy. It focuses both on the distributor as well as the consumers, targeting both
parties directly. It offers consumer incentives side by side with dealer discounts.
26
7/29/2019 Promotional Strategies of Coca Cola
27/96
Promotional Strategies of coke products
Communication by the manufacturer is not only directed towards consumers to create
demand. A push strategy is where the manufacturer concentrates some of their marketingeffort on promoting their product to retailers to convince them to stock the product. A
combination of promotional mix strategies are used at this stage aimed at the retailer
including personal selling, and direct mail. The product is pushed onto the retailer, hence
the name. A pull strategy is based around the manufacturer promoting their product
amongst the target market to create demand. Consumers pull the product through the
distribution channel forcing the wholesaler and retailer to stock it, hence the name pull
strategy. Organizations tend to use both push and pull strategies to create demand from
retailers and consumers.
Communication Model
AIDA is a communication model, which can be used by firms to aid them in selling their
product or services. AIDA is an Acronym for Attention, Interest, Desire, Action.. When a
27
7/29/2019 Promotional Strategies of Coca Cola
28/96
Promotional Strategies of coke products
product is launched the first goal is to grab attention. Think, how can an organization use
it skills to do this? Use well-known personalities to sell products? Once you grab attention
how can you hold Interest, through promoting features, clearly stating the benefit the
product has to offer? The third stage is desire, how can you make the product desirable to
the consumer? By demonstrating it? The final stage is the purchase action, if the company
has been successful with its strategy then the target customer should purchase the product.
Promotion through the Product life cycle
As products move through the four stages of the product lifecycle different promotional
strategies should be employed at these stages to ensure the healthy success and life of the
product .
Stages and promotion strategies employed.
Introduction
When a product is new the organizations objective will be to inform the target audience of
its entry. Television, radio, magazine, coupons etc may be used to push the product through
the introduction stage of the lifecycle. Push and Pull Strategies will be used at this crucial
stage.
Growth
As the product becomes accepted by the target market the organization at this stage of the
lifecycle the organization works on the strategy of further increasing brand awareness to
encourage loyalty.
Maturity
28
7/29/2019 Promotional Strategies of Coca Cola
29/96
Promotional Strategies of coke products
At this stage with increased competition the organization take persuasive tactics to
encourage the consumers to purchase their product over their rivals. Any differential
advantage will be clearly communicated to the target audience to inform of their benefit
over their competitors.
Decline
As the product reaches the decline stage the organization will use the strategy of reminding
people of the product to slow the inevitable
Internet Promotion
The development of the World Wide Web has changed the business environment forever.
Dot com fever has taken the industry and stock markets by storm. The e-commerce
revolution promises to deliver a more efficient way of conducting business. Shoppers can
now purchase from the comfort of their home 24 hours a day 7 days a week.
29
7/29/2019 Promotional Strategies of Coca Cola
30/96
Promotional Strategies of coke products
Owning a website is a now a crucial ingredient to the marketing mix strategy of an
organization. Consumers can now obtain instant information on products or services to aid
them in their crucial purchase decision. Sony Japan took pre-orders of their popular
Playstaion 2 console over the net, which topped a 1 million after a few days, European
football stars are now issuing press releases over the web with the sites registered under
their own names. Hit rates are phenomenal.
Advertisers have now moved their money over to the internet as customers are on average
spending more time online then watching TV. Popular ways to advertise seem to be with
banners and pop ups.
Everyone sees hundreds of commercial messages every day. Here are a few tips on
different avenues which may help your message cut through the promotional clutter .
1. Media Releases.
There is a lot of media out there, and it's expanding all the time. It has be filled with
something, why shouldn't it be a story about you? If you can spin your sales story into an
interesting news story there's a good chance you will receive some coverage. But that's the
thing. It has to be interesting. Look for an angle and present it the right way and there's
every chance the local media will lap it up.
2. Event Invitations.
If you're staging an event, make it one people will talk about and look forward to. Treat
your clients like friends, not wallets. And here's a tip from a long established catering
company we do work for: when the pary starts to lag, roll out the French Champagne. Yes
it can cost you, but there's something in that stuff which makes people happy. Everyone
will be happy to knock a couple of glasses back if they know it's the real deal!
3. Networking.
If you attend networking functions, which are all the rage at the moment (we get invited to
about six a week!), when it's your turn to stand up and introduce yourself, make sure you've
got a gimmick on hand. It's a strange thing, that the larger the group of people you have on
hand, the simpler the jokes which work. Later on, when you're working the room you'll
30
7/29/2019 Promotional Strategies of Coca Cola
31/96
Promotional Strategies of coke products
have something to chat about and even if nobody remembers what you were trying to
promote, they will remember you.
4. Response to Inquiries.
When you get a good lead through whatever channel, send back your response in an
interesting and unforgettable way. Put your proposal in an empty pizza box and bribe a kid
from Dominos to deliver it. Send one of those mobile coffee vans around and shout the
team at the other company a coffee each. Have your quote written on the icing of a cake
and hand delivered. Sounds stupid? Maybe, but when you talk to your prospective client
next you have the beginnings of a relationship and may have turned a simple inquiry
response into something resulting in everyone with the other group knowing who you are.
5. Sales Pitches.
Intrigue your prospective clients. A local sales legend in Brisbane used to ring for an
appointment and announce, "I'm coming 'round now and I'm bringing morning tea". He
would arrive with two cream buns in a paper bag. He always claimed that if he could get
the person he was visiting to eat their cream bun he would get them as a new client.
Nobody ever forgot the sight of this bloke appearing at the door with two buns in a brown
paper bag.
6. Sales Letters.
There's nothing more boring than a sales letter which just babbles on about how great you
are. What would anyone expect you to say? It's a constant battle to stop people demanding
promotional sales letters that are heavy on product features and details. Here's a
promotional idea we're about to try. Go to the back and buy a wad of some virtually
worthless currency; Zimbabwe Pounds, Turkmanistan Roubles, New Zealand Dollars (only
joking guys) whatever you can lay your hands on, but make sure the demoninations are big.
Dream up a spin to your letter which is related to cash/money/income. Attach one of the
banknotes to the letters you send it out. Who, other than the government, is going to throw
away money? And if you buy the right dud currency it costs about the same per sheet as
printing a letter.
7. Follow-up Letters.
Once you've spoken with a client and had your first meeting, make sure you follow up by
mail, if only to cover off the subjects you discussed. People don't want to deal with
31
7/29/2019 Promotional Strategies of Coca Cola
32/96
Promotional Strategies of coke products
slackers, sending a letter after your meeting looks professional and sets the stage for further
contact.
8. Surveys.
Companies wishing respondents to fill out a questionnaire are more likely to get results
when they attach a bribe. Just by adding a pen to the package you can expect a 30 percent
better response.
9. Talk to Fresh Promotions
As one of Australia's most innovative sales promtion and marketing groups, we are always
interested in hearing new ideas or dreaming up new ones which will work for your
business. If you have a promotional idea for your business, or want one, give us a call. We
specialize in getting your ideas happening on budget and on time.
10. Talk to us!!
PromoSales consultants are happy to have a chat about what you need from you promotion.
We are always interested in hearing from you and want to see your promotion succeed.
SALES PROMOTION STRATEGY
Sales are the lifeblood of a business, without sales there would be no business in the first
place; therefore it is very important that if a business wants to succeed, it should have a
sales promotion strategy in mind. The primary objective of a sales promotion is to improve
a company's sales by predicting and modifying your target customer's purchasing behavior
and patterns. Sales promotion is very important as it not only helps to boost sales but it also
helps a business to draw new customers while at the same time retaining older ones. There
are a variety of sales promotional strategies that a business can use to increase their sales,
however it is important that we first understand what a sales promotion strategy actually isand why it is so important.
A sales promotion strategy is an activity that is designed to help boost the sales of a product
or service. This can be done through an advertising campaign, public relation activities, a
free sampling campaign, a free gift campaign, a trading stamps campaign, through
32
7/29/2019 Promotional Strategies of Coca Cola
33/96
Promotional Strategies of coke products
demonstrations and exhibitions, through prize giving competitions, through temporary
price cuts, and through door-to-door sales, telemarketing, personal sales letters, and emails.
The importance of a sales promotion strategy cannot be underestimated. This is because a
sales promotion strategy is important to a business boosting its sales.
When developing a sales promotion strategy for your business, it is important that you keep
the following points in mind.
Consumer attitudes and buying patterns
Your brand strategy
Your competitive strategy
Your advertising strategy
And other external factors that can influence your products availability and pricing.
METHODS OF PROMOTION
Some of the most common methods used in sales promotion strategies include:
Coupons
Price discounting
Gift with purchase offers
Sweepstakes
Sampling
Mail in offers and rebates
Refund and premium offers
Group promotions
Frequent user/loyalty incentives
Point-of-sale displays
Sponsorships for special events (like fun runs)
33
7/29/2019 Promotional Strategies of Coca Cola
34/96
Promotional Strategies of coke products
Participation in community projects and boards of directors
Trade Shows - Your product or service might be one that is suited to exhibiting at a
trade show attended by your target audience. Trade shows are typically one- or two-
day events that allow businesses to set up exhibits or booths showcasing their
products or capabilities.
Fairs (like Health Fairs, Job Fairs)
Give-aways (like baseball caps and mugs with your logo)
Coupons and free samples
Conducting contests
Public Speaking and Conferences
Newsletters
Trade journals
Media Relations Campaigns
Representation by experts
Public service announcements
Press kits
PROMOTIONAL OBJECTIVES
To promote your business successfully, you have to understand who you need to reach and
what you are trying to achieve.
Promotional strategies should focus first and foremost on your existing customers. Make
sure they are aware of the full range of your products and services and create opportunities
to generate repeat and higher value purchases. You should also be getting your existing
customers to spread the word about your business - perhaps by trying out new products and
services and offering rewards for introducing new customers.
When focusing your promotional activities on potential customers, aim to create brand
awareness and credibility. Ensure they understand your offer and how you differ from your
competitors. Once you really get into detail, you might even find yourself promoting
individual products differently to different groups of customers.
34
7/29/2019 Promotional Strategies of Coca Cola
35/96
Promotional Strategies of coke products
If you use intermediaries to reach your market, you will also have to encourage them to
promote your offer to their customers.
COCA-COLA INDIA CEO REVEALS AGGRESSIVE PROMOTION STRATEGIES
Atul Singh, CEO and president of Coca-Cola India, reveals his strategies for aggressively
promoting the brand across the country. Singh says the company is training shop owners to
promote the brand in order to encourage more Indians to drink Coca-Cola Co. products.
35
7/29/2019 Promotional Strategies of Coca Cola
36/96
Promotional Strategies of coke products
CHAPTER-III
COMPANY PROFILE
INTRODUCTION FOR COCA COLA COMPANY
You may know The Coca-Cola Company...
... as the largest beverage company with the most extensive distribution system in the
world. You may know us simply as Coca-Cola--the world's most valuable brand and a
global icon.
36
7/29/2019 Promotional Strategies of Coca Cola
37/96
Promotional Strategies of coke products
The Coca-Cola Company is the worlds leading manufacturer, marketer, and distributor of
nonalcoholic beverage concentrates and syrups. Its world headquarters is based in Atlanta,
Georgia. The company and its subsidiaries employ nearly 31,000 people around the world.
The Coca-Cola Company manufactures syrups, concentrates and beverage bases for Coca-
Cola, the companys flagship brand, and also produces over 230 other soft-drink brands
sold by and its subsidiaries in nearly 200 countries around the world. Some of Coca-Colas
latest domestic marketing strategies include Coke dominating fountain sales. Thousands of
consumers visit fast-food restaurants every day and Coke feels that it is very important to
have the consumer see and drink their product at such chains as McDonalds, Burger King,
and Dominos Pizza. Coca-Cola is also testing a new plastic cup in the famous Coca-Cola.
Let us introduce you to The Coca-Cola Company you may not know.
The Coca-Cola system's customers are the grocers, retailers, street vendors and store
owners who sell our products to our consumers. We have millions of these partners in the
more than 200 countries where we operate.
The Coca-Cola Company was first established in 1886 by Dr John Styth Pemberton.
Today, the company is the world's leading manufacturer in the beverage industry, operating
globally in more than 200 countries with its head office located in Atlanta, USA. Itproduces more than 300 beverage brands and over 1.06 billion drinks are consumed per day
around the world.
Mission Statement
The Coca-Cola Company's mission statement is:
'Remind Coca-Cola is the read thing' but their motto now has changed to 'To benefit and
refresh everyone who is touched by our business.'
Also Coca-Cola would hope to provide the best quality drink for everyone, all the
employees working for them being at their top and fullest.
37
7/29/2019 Promotional Strategies of Coca Cola
38/96
Promotional Strategies of coke products
Approximately 50 billion times a day, someone drinks a beverage. Our beverages are
enjoyed more than 1.3 billion of those times. That means there are over 48 billion beverage
choices to capture.
We built on our formidable assets: our brands, financial strength, unrivaled
distribution system and our people. And we have made progress toward sustainable growth.
We sharpened our focus on what the world wants to drink and why, and we
continued our efforts with local leaders to support communities around the world.
We have a lot of good news to share, and we're just getting started.
The Coca-Cola Company manufactures, distributes, and markets nonalcoholicbeverage concentrates and syrups worldwide. It principally offers sparkling and still
beverages. The companys sparkling beverages include nonalcoholic ready-to-drink
beverages with carbonation, such as energy drinks, and carbonated waters and flavored
waters.
Its still beverages consist of nonalcoholic beverages without carbonation, including
non-carbonated waters, flavored waters and enhanced waters, juices and juice drinks, teas,
coffees, and sports drinks. The Coca-Cola Company also offers fountain syrups, syrups,
and concentrates, such as flavoring ingredients and sweeteners.
The company markets its nonalcoholic beverages under the Coca-Cola, Diet Coke,
Fanta, and Sprite brand names. The Coca-Cola Company also owns mineral water brands
Kildevaeld and Kurvand in Denmark and soft drink brand Hyvaa Paivaa in Finland. It sells
its finished beverage products primarily to distributors, and beverage concentrates and
syrups to bottling and canning operators, distributors, fountain wholesalers, and fountain
retailers. The company was founded in 1886 and is headquartered in Atlanta, Georgia.
The Coca-Cola Company's products include beverage concentrates and syrups, with the
main product being finished beverages.
38
7/29/2019 Promotional Strategies of Coca Cola
39/96
Promotional Strategies of coke products
The business has over 300 brands of beverages around the world with the main ones being
Coke, Fanta, Lift, Sprite, Frutopia 100% Fruit Juice, and PowerAde.
The Coca-Cola Company packages its beverages into plastic bottles of sizes 2 liters,
1.25 liters, 600mL and 300mL. These are also available in aluminium cans of 375mL.
Coca-Cola is the most well known trademark, recognized by 94 per cent of the world's
population. The business is very successful and holds a very good reputation.
The Coca-Cola Company uses marketing strategies to differentiate its product from its
competitors to gain a competitive advantage. These are listed in the table below.
The Coca-Cola Company.
In 1886, we introduced Coca-Cola to Atlanta, Georgia. One product, a simple moment of
refreshment. In 120 years, a lot has changed. We now have more than 400 brands in over
200 countries.
The real story of The Coca-Cola Company lies in what we're doing today to build asustainable-growth business for tomorrow.
What does sustainable growth look like to us? In 2005, we mapped a long-term plan for our
business, Our Manifesto for Growth. It includes working closely with our bottling partners
in the following key areas:
People: We want to be a great place to work, where people are inspired to be the best they
can be.
Portfolio: We bring to the world beverage brands that anticipate and satisfy people's desires
and needs.
39
http://www.thecoca-colacompany.com/investors/annualandotherreports/2005/companyToday_people.htmlhttp://www.thecoca-colacompany.com/investors/annualandotherreports/2005/companyToday_portfolio.htmlhttp://www.thecoca-colacompany.com/investors/annualandotherreports/2005/companyToday_people.htmlhttp://www.thecoca-colacompany.com/investors/annualandotherreports/2005/companyToday_portfolio.html7/29/2019 Promotional Strategies of Coca Cola
40/96
Promotional Strategies of coke products
Profit: We strive to provide maximum return to our shareowners while being mindful of
our overall responsibilities.
Partners: We actively nurture a winning network of partners and build mutual loyalty.
Planet: We act as a responsible global citizen who makes a difference.
Sustainable growth means meeting our short-term commitments while investing to meet
our long-term goals. We are beginning to see results.
On the pages that follow, we'll discuss how our plan is changing the way we think and the
way we operate, and you'll see evidence of the progress we're
The Coca-Cola Company brands include:
Barq's
Coca-Cola
Coke Zero
Dasani water
Diet Coke
Glacau Fanta
Fresca
Full Throttle
Fuze
Hi-C
Kinley
Lift
Lilt
Mello Yello
Minute Maid
Monster Energy distributed by Coca-Cola, made by Hansen Natural
Oasis
40
http://www.thecoca-colacompany.com/investors/annualandotherreports/2005/companyToday_profit.htmlhttp://www.thecoca-colacompany.com/investors/annualandotherreports/2005/companyToday_profit.html#partnershttp://www.thecoca-colacompany.com/investors/annualandotherreports/2005/companyToday_planet.htmlhttp://www.thecoca-colacompany.com/investors/annualandotherreports/2005/companyToday_profit.htmlhttp://www.thecoca-colacompany.com/investors/annualandotherreports/2005/companyToday_profit.html#partnershttp://www.thecoca-colacompany.com/investors/annualandotherreports/2005/companyToday_planet.html7/29/2019 Promotional Strategies of Coca Cola
41/96
Promotional Strategies of coke products
Odwalla
Powerade
Pibb
Relentless
Sprite
Tab
Thums Up
Urge
Vault
1886 - Drink
Slogans from the 1900's
1904 - Delicious and Refreshing
1905 - Wherever you go ... you will find
1905 - Revives and Sustains
1906 - The drink of quality. The Great National Temperance
1907 - is full of vim, vigor and go
1908 - Get the genuine
1909 - Whenever you see an arrow, think of
1911 - Enjoy a glass of liquid laughter
41
7/29/2019 Promotional Strategies of Coca Cola
42/96
Promotional Strategies of coke products
1917 - Three Million A Day
Slogans from the 1920's
1920 - Drink with soda, The hit that
saves the day
1922 - Thirst knows no season
1923 - Refresh yourself, There's nothing like it when you're thirsty
1924 - Pause and refresh yourself
1925 - Six Million A Day
1926 - Stop at the red sign
1927 - Around the corner from anywhere, at the little red sign
1928 - A pure drink of natural flavors
1929 - The pause that refreshes
Slogans from the 1930's
1930 - Meet me at the soda fountain
1932 - The drink that makes the pause refreshing
1933 - Don't wear a tired, thirsty face
1934 - When it's hard to get started, start with a
1935 - All trails lead to ice-cold
1936 - Get the feel of wholesome refreshment
42
7/29/2019 Promotional Strategies of Coca Cola
43/96
Promotional Strategies of coke products
1937 - Stop for a pause...go refreshed
1938 - Anytime is the right time to pause and refresh, Pure as sunlight
1939 - Thirst stops here. Makes travel more pleasant.
Slogans from the 1940's
1940 - The package that gets a welcome at home
1941 - A stop that belongs on your daily timetable
1942 - The only thing like is itself
1943 - A taste all its own
1944 - High sign of friendship
1945 - Coke means
1947 - Relax with the pause that refreshes
1948 - Where there's there's Hospitality
1949 -Along the highway to anywhere
Slogans from the 1950's
1950 - Help yourself to refreshment
1951 - Good food and just naturally go together
1952 - Coke follows thirst everywhere
43
7/29/2019 Promotional Strategies of Coca Cola
44/96
Promotional Strategies of coke products
1953 - Dependable as sunrise
1954 - For people on the go
1955 - Americas preferred taste
1956 - Feel the difference, Makes good things taste better
1957 - Sign of good taste
1958 - Refreshment the whole world prefers
1959 - Make it a real meal
Slogans from the 1960's
1960 - Relax with a Coke, Revive with a Coke
1961 - Coke and food
1962 - Enjoy that refreshing new feeling
1963 - Things go better with Coke
1964 - You'll go better refreshed
1965 - Something more than a soft drink
1966 - Coke...after Coke...after Coke
Coca-ColaJingles
These Jingles are taken from '60s radio air checks.
Slogans From the 1970's
1970 - It's the real thing
1971 - I'd like to buy the world a Coke
44
http://www.geocities.com/backdoornetshopnet/cokejingles.htmhttp://www.geocities.com/backdoornetshopnet/cokejingles.htm7/29/2019 Promotional Strategies of Coca Cola
45/96
Promotional Strategies of coke products
1972 - Coke . . . goes with the good times
1975 - Look up America, see what we've got
1976 - Coke adds life
Slogans From the 1980's
1980 - Have a Coke and a smile
1982 - Coke is it
1985 - We've got a taste for you. America's real choice Classic!
1986 - Catch the Wave. Red, white and you!
1988 - Can't beat the feeling
1989 - Official Soft Drink of Summer
Slogans From the 1990's
45
7/29/2019 Promotional Strategies of Coca Cola
46/96
Promotional Strategies of coke products
Ads of company
INDUSTRY PROFILE
The company's international blitz began in 1926 when company President
Robert Woodruff signed Coca-Cola as a sponsor of the 1928 Olympic Summer Games in
Amsterdam. The U.S. Olympic Team and 1,000 cases of Coca-Cola arrived at the games
46
7/29/2019 Promotional Strategies of Coca Cola
47/96
Promotional Strategies of coke products
by freighter. Since then, the relationship between the Olympic Games and Coca-Cola has
only grown!
Many Coca-Cola divisions around the world sponsor individual athletes or teams as well.
1928 was also the first year the Olympic flame was lit, and women were invited to
compete.
1952 -- The Summer Games in Helsinki - Coca-Cola shipped 300,000 cases of
bottles and donated it for sale by the Disabled Ex-servicemen's Association.
1952 -- The Winter Games in Oslo - The local Coca-Cola bottler chartered a
helicopter for advertising. In 1952 most people had never seen anything like a
helicopter and they were utterly fascinated. At the close of the games, the helicopter
was given to the city to help direct traffic.
1960 -- The Summer Games in Rome - Italian bottlers welcomed athletes, officials
and spectators to Rome with a 45 rpm record of "Arrivederci Roma."
1964 -- The Summer Games in Tokyo - This marked the first year Coca-Cola aided
the athletes, spectators and media with guide maps, sightseeing information and a
phrase book. The idea was so popular, it was adapted for use in Mexico City,
Sapporo (Japan) and Munich.
1979 -- The Coca-Cola company worked with the Olympic Committee to create the
U.S. Olympic Hall of fame.
1988 -- The Winter Games in Calgary - Coca-Cola orchestrated a world children's
chorus. Also, Coca-Cola opened the venue for what would later be deemed the
games number-one spectator sport -- The Coca-Cola Official Olympic Pin Trading
Center.
1996 -- The Summer Games in Atlanta - The Games' centennial, as sole sponsor of
the Olympic Torch Relay, Coca-Cola brought the flame to more than 350 cities and
47
7/29/2019 Promotional Strategies of Coca Cola
48/96
Promotional Strategies of coke products
towns during the 94-day run.
You may know someone who got to run with the flame! I was fortunate enough to
watch the flame's progress through Clark County, Indiana into Louisville,
Kentucky. I even got my picture taken with one of the runners, as I held the torch!!
AND I was there as the flame entered our nation's capital, Washington, D.C.
through Fairfax County, Virginia!
HISTORY OF COCA COLA
Olympic Commemorative Cans
1928
Amsterdam
1948
London
1964
Tokyo
1992
Barcelona
1996
Atlanta
48
7/29/2019 Promotional Strategies of Coca Cola
49/96
Promotional Strategies of coke products
A pharmacist named Dr. John Stith Pemberton invented the refreshing
taste of Coca-Cola in 1886. Concocted by a mixture of caramel-colored syrup in a three-
legged brass kettle while in his backyard. He then decided to try to market the drink at
Jacobs Pharmacy in his hometown of Atlanta, Georgia. For five-cents, customers were
able to enjoy a glass from the soda fountain. An average of nine drinks were sold a day. In
1891 Dr. John Stith Pemberton sold Coca-Cola for 2,300 to an entrepreneur named Asa G.
Candler. Within the next four years Coca-Cola was distributed throughout the whole
nation. 1893 the Cola-cola trademark and script were patented. The two Cs were though
to look well for advertising. In 1899 large-scale bottling becomes possible when Asa
Candler grants Joseph B. Whitehead and Benjamin F. Thomas exclusive rights for one
dollar. But in 1919 Coca-Cola was sold for $25million to a banker in Atlanta name Ernest
Woodruff and a group of investors. That same year, Coca-Cola sold its first share of stock
for forty dollars a share. Assuming all dividends were reinvested, those original shares
would have been worth approximately $6.7 million at the end of the year.
Coca-Cola (Coke), the worlds largest carbonated soft drink (CSD) manufacturer
had built its brand over the years through consistent and effective advertising campaigns
making history over the years. In the recent times the company had suffered serious
setbacks with a number of controversial and negative allegations leveled against it. Coke
was increasingly being associated with health hazards and was under threat in many of its
key markets. Consumption of CSD, which was its core business, had decreased and sales
fell in Western Europe, Philippines and India. Active anti-Coke movements had triggered
severe criticism from many segments of society including students, environmentalists,
Labor-rights activists, employees and shareholders. In 2004, Neville Isdell, Coke
Chairman and CEO devised a plan to revive Coke. Called the Manifesto for Growth, the
plan included several strategic initiatives including innovation, increasing marketing
investment and introducing new products in the non Carbonated Soft Drink market.
As part of the plan to revive the Coke brand, The Coke side of life, a new global
marketing platform was launched in December 2005. The company believed that this
global campaign would return the company to its former glory. Marketing experts were
49
7/29/2019 Promotional Strategies of Coca Cola
50/96
Promotional Strategies of coke products
however skeptical about this. They wondered if the new marketing campaign would help
offset the myriad charges that beset Coke and help to revive the brand.
The case enables students to appreciate the advertising campaigns that helped
build the Coca-Cola Company into a strong brand. It also enables discussion on the new
campaign launched by Coke and its effectiveness in overcoming its problems.
One great earmark that the Coca-Cola Company has is helping
the people of Atlanta. They accomplish this through scholarships, hotlines, donations and
contributions. Another large accomplishment that the Coca-Cola has, is being the first
company to make and use recycled plastic bottles. One way to see all of the achievements
of the Coca-Cola company is to visit the World of Coke in Atlanta. It houses a collection
of memorabilia, samples of the products, exhibits, and many other exciting items. All of
what has been said is the basis of what Coca-Cola was built on. Without societies help,
Coca-Cola could not have become over a 50 billion dollar business. Keep on consuming
the world's favorite soft drink, Coca-Cola.
Until the 1960s, both small town and big city dwellers enjoyed
carbonated beverages at the local soda fountain or ice cream saloon. Often housed in the
drug store, the soda fountain counter served as a meeting place for people of all ages. Oftencombined with lunch counters, the soda fountain declined in popularity as commercial ice
cream, bottled soft drinks, and fast food restaurants came to the fore.
The term "soda water" was first coined in 1798.
In 1810, the first U.S. patent was issued for the manufacture of imitation mineral
waters.
The first soda fountain patent was granted to Samuel Fahnestock in 1819.
In 1858, G.D. Dows invented and operated the first marble soda fountain, which he
patented in 1863.
In 1883, James W. Tufts patented a soda fountain, which he called the Arctic. Tufts
went on to become a huge soda fountain manufacturer.
On January 25, 1870, Gustavus Dows patented a modern form of the soda fountain.
50
7/29/2019 Promotional Strategies of Coca Cola
51/96
Promotional Strategies of coke products
In October of 1874, Robert M. Green created the first ice cream soda.
In 1903, a revolution in soda fountain design took place with the front service
fountain patented by Dr. Heisinger.
More fun facts and trivia
Coca-Cola can be used to bake a ham. Pour one can into the baking pan, rap the
ham in aluminum foil, and bake. Thirty minutes before the ham has finished
cooking, remove the foil, allowing the drippings to mix with the Coca-Cola to
make a delicious brown gravy.
Mexico and Iceland have the highest per capita consumption ofCoca-Cola.
Coca-Cola translated to Chinese means, "To make mouth happy".
Every second over 7,000 Coca-Cola products are consumed. The tallest Coca-Cola bottling plants are in Hong Kong. The plant in Quarry Bay is
17 floors, and the plant in Shatin is 25 floors.
The bottling plant at the highest elevation in the world is located in Bolivia, at
12,000 feet.
The world's longest Coca-Cola truck is in Sweden. It is 79 feet long with a four-
azle trailer.
The best selling non-carbonated soft drink in Japan is a product of The Coca-ColaCompany named "Georgia", a coffee flavored beverage.
Coca-Cola first crossed the Atlantic on board the Graf Zeppelin, the German
dirigible.
51
7/29/2019 Promotional Strategies of Coca Cola
52/96
Promotional Strategies of coke products
The Varsity Restaurant in Atlanta, Georgia, has earned the distinction of serving the
highest volume ofCoca-Cola anywhere. It dispenses nearly 3 million servings of
Coca-Cola annually.
If the Coca-Cola company constructed a sign like the ones McDonald's uses to
count their millions of customers, by 1983 it would have read "over 1 trillion
served."
If all the Coca-Cola ...
o ever produced were in 6 1/2 oz. bottles and placed end to end they
would wrap around the earth more than 11,863 times.
o sold in 1994 were in 8-ounce bottles laid end-to-end, those
bottles would reach to the moon and back 76 times.
o vending machines in the U.S. were stacked one on top of each other,
the pile would be over 450 miles high.
o ever produced were to erupt from "Old Faithful" at its normal rate of
14,000 gallons per hour, the geyser would flow continually for 1,577
years.
o Products sold in 1994 were flowing over Niagara Falls at its normal
rate of 1.5 billion gallons per second, the falls would flow for three
hours.
Ingredients of Coke
Carbonated Water
High Fructose Corn Syrup
Caramel Color
Phosphoric Acid
Natural Flavors
Caffeine
Description:
52
7/29/2019 Promotional Strategies of Coca Cola
53/96
Promotional Strategies of coke products
This company profile offers a comprehensive analysis of the organization, its business
segments, and competitors. It analyzes the business and marketing strategies adopted by
the company, toga in a competitive edge in the industry. The profile also evaluates the
strengths of the companyand the opportunities present in the market.
This profile is of immense help to management consultants, analysts, market research
Organizations and corporate advisors.
The objective and scope of various sections of our company profile has been discussed
below.
Company Summary
This section presents the key facts & figures, business description, products & services
offered and Corporate timeline of the company.Company Analysis
It involves analysis of the company at three levels - segments, organizational structure and
ownership composition. Both business and geographic segments are analyzed along with
their recent financial performance. It further discusses the major subsidiaries of the
company and the recent merger & acquisitions.
Business Developments
This section examines the significant developments that have taken place in the company.
It is form of news analysis where the most critical company news is discussed.
Discussion of Business Strategies
This section talks about the current and future strategies of the company. All business,
marketing, financial and organizational strategies are discussed here.
SWOT Our SWOT Analysis is a valuable step in assessing your companys strengths,
weaknesses, opportunities, and threats. It offers powerful insight into the critical issues
affecting a business.
Financial Performance
It discusses the most recent financials of the company and also compares the
historical sales & income figures with the current and projected figures. The objective is to
53
7/29/2019 Promotional Strategies of Coca Cola
54/96
Promotional Strategies of coke products
evaluate the financial health of the company. The analyst opinion and stock performance
help us in evaluating the performance of the company from an investors viewpoint.
Competition Synopsis
This section compares the company with its peer group. The comparable analysis and stock
movement are aimed at giving an overview of the competitive landscape in the industry
and the companys positioning in its peer group.
ANALYSIS SOFT DRINK
1 Analysis of the U.S. soft drink industry, based on the competitive forces model of
Michael Porter.
In the soft drink industry the entry of new competitors depends on the barriers to entry that
are present, and also the reaction from existing competitors that the entrant can expect.
I will now analyze the six major sources of barriers to entry the soft drink industry.
Economies of scale deter entry by forcing the entrant to come in at large scale and risk
strong reaction from existing firms or come in at a small scale and accept a cost
disadvantage. If a company wants to decline its unit costs of their product, they will have to
produce more to lower the cost. The more you produce, the lower the costs.
In the soft drink industry establishing firms have brand identification and customer
loyalties. The brand name can have differences. This is a high barrier to enter. Entrants are
forced to spend a lot to overcome existing customer loyalties.
Definition of soft drinks
Nonalcoholic beverage
A soft drink is a beverage that does not contain alcohol ; generally it is also implied that the
drink does not contain milk or other dairy
Family of alcohol free, carbonated , drinks that are aromatized with fruit extracts. cola ,
tonic, etc
REVENUE
54
7/29/2019 Promotional Strategies of Coca Cola
55/96
Promotional Strategies of coke products
The Coca-Cola Company North America offices in Sugar Land, Texas, United
StatesAccording to the 2005 Annual Report, the company sells beverage products in more
than 200 countries. The report further states that of the more than 50 billion beverage
servings of all types consumed worldwide every day, beverages bearing the trademarks
owned by or licensed to Coca-Cola account for approximately 1.5 billion. Of these,
beverages bearing the trademark "Coca-Cola" or "Coke" accounted for approximately 78%
of the Company's total gallon sales.
Also according to the 2007 Annual Report, Coca-Cola had gallon sales distributed as
follows:
37% in the United States
43% in Mexico, Brazil, Japan and the People's Republic of China
20% spread throughout the rest of the world
In 2010 it was announced that Coca-Cola had become the first brand to top 1 billion in
annual UK grocery sales.
55
7/29/2019 Promotional Strategies of Coca Cola
56/96
Promotional Strategies of coke products
CHAPTER-IV
DATA ANALYSIS AND INTERPRETATION
56
7/29/2019 Promotional Strategies of Coca Cola
57/96
Promotional Strategies of coke products
DATA ANALYSIS AND INTERPRETATION
Section I
1)Q What is modern trade ?
2)Q What are the advantages of modern trade ?
3)Q Who are the present partners of the modern trade ?
4)Q Define Plano gram and explain its significance ?
5)Q WHY is category important in modern trade ?
6)Q What are the important locations within Modern Trade where we must place our
beverages ?
57
7/29/2019 Promotional Strategies of Coca Cola
58/96
Promotional Strategies of coke products
7)Q What is POP with respect to Modern Trade ?
Section I
1) Q what is modern trade?
Answer:
Modern Trade is nothing but an organized retail sector. It comprises of wide rage of
products as well as targets.
2)Q What are the advantages of modern trade ?
Answer:
58
7/29/2019 Promotional Strategies of Coca Cola
59/96
Promotional Strategies of coke products
Modern trade has few advantages such as: More choice for customers, Billed transactions,
Promotional offers from the companies so that it ensures a satisfactory level for the
customers.
3)Q Who are the present partners of the modern trade ?
Answer :
Modern Trade has few participants such as: MORE, SPENSORS, FOODWORLD as well
as RELAINCE FRESH as well as FOOD WORLD. There are many more partners where
we have not considered them as they are not part of this research. We have only
RELIANCE FRESH as consideration to this extent.
4)Q Define Plano gram and explain its significance ?
Answer :
It is a designed plan for the convenience of alignment of the products in the outlet. Because
of this the customers will have the advantage of feeling easy in the process of picking up
the product while shopping.
5)Q WHY is category important in modern trade ?
Answer :
The only reason why the aspect category is quiet important in modern trade is just
because it is identify the product. Ina word it is user friendly for the people.
6)Q What are the important locations within Modern Trade where we must place our
beverages ?
Answer :
59
7/29/2019 Promotional Strategies of Coca Cola
60/96
Promotional Strategies of coke products
The important locations where we coke can be paced so as to get identified by the
customers is chillers. Any one looking for beverages are especially choosing from chillers.
80%of the shoppers do this.
7)Q What is POP with respect to Modern Trade ?
Answer :
POP is nothing but point of purchase in its shortest form and with respect to modern trade it
is a point at which customers make their own buying decisions.
ANALYSIS:
Modern trade
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid Organised Sector 8 53.3 53.3 53.3
Organised
Outlets3 20.0 20.0 73.3
Organised Trade 4 26.7 26.7 100.0
Total 15 100.0 100.0
60
7/29/2019 Promotional Strategies of Coca Cola
61/96
Promotional Strategies of coke products
In a sample size of 15 respondents:
a) 53.3% of them answered Modern trade as Organized sector
b) 20.0% of them answered Modern trade as a Organized outlets
c) 26.7% of them answered Modern trade as Organized business
Characteristics of MT
Frequency Percent Valid Percent
Cumulative
Percent
Valid Ambience 4 26.7 26.7 26.7
Variety 5 33.3 33.3 60.0
benefit6 40.0 40.0 100.0
Total 15 100.0 100.0
61
7/29/2019 Promotional Strategies of Coca Cola
62/96
Promotional Strategies of coke products
In a sample size of 15 respondents
a) 40% of them opined that benefit as the main characteristic feature of the
Modern retail
b) 33% of them opined that variety as the characteristic feature of Modern retail
c) 27% of then opined that ambience as the characteristic feature of Modern
retail
As 40% of the respondents feel that benefit as the important factor in Modern trade
so, we can conclude that margin plays a major role in Modern trade
62
7/29/2019 Promotional Strategies of Coca Cola
63/96
Promotional Strategies of coke products
Planogram
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid Comuputer generatedplan
5 33.3 33.3 33.3
well designed plan 10 66.7 66.7 100.0
Total 15 100.0 100.0
63
7/29/2019 Promotional Strategies of Coca Cola
64/96
Promotional Strategies of coke products
In a
sample size of 15 respondents
a) 67% of the respondents opined Plano gram as a Computer generated plan
b) 33% of them opined Plano gram as well designed, manually generated plan a
Even there are computer generated plans, retailers are opting for manual plans this is
because of the Organised retail still occupying only * % of the market share.
64
7/29/2019 Promotional Strategies of Coca Cola
65/96
Promotional Strategies of coke products
Significance of plano gram
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid stock availability 7 46.7 46.7 46.7
identificaition of
products6 40.0 40.0 86.7
Both 2 13.3 13.3 100.0
Total 15 100.0 100.0
65
7/29/2019 Promotional Strategies of Coca Cola
66/96
Promotional Strategies of coke products
In a sample size of 15 respondents:
a) 47% of the respondents are of the opinion that, stock availability as the
significance of a Plano gram
b) 40% of them are of the opinion that, when products are arranged according
to a planogram that will be useful for the easy identification of products
c) 13% of the respondents were of the opinion that, when products are arranged
according to a particular planogram that will be useful for that easy
identification and stock availability of precuts can be known
Retailers are using Planogram for checking availability of the stock, but they are not
using the soft ware for shelf life management and other functions.
66
7/29/2019 Promotional Strategies of Coca Cola
67/96
Promotional Strategies of coke products
Category Importance
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid Arrangement and
availability9 60.0 60.0 60.0
Sales 2 13.3 13.3 73.3
Identification of
products4 26.7 26.7 100.0
Total 15 100.0 100.0
In a sample size of 15 respondents
1) 60% of them responded that category is important for arrangement and
availability of product
2) 27% of them responded that category is important for the Identification of
products
3) 13% of them responded that category is useful for the sales.
67
7/29/2019 Promotional Strategies of Coca Cola
68/96
Promotional Strategies of coke products
68
7/29/2019 Promotional Strategies of Coca Cola
69/96
Promotional Strategies of coke products
Imp locations for Beverages
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid Chiller & End Cap 5 33.3 33.3 33.3
Chiller & Cash points 6 40.0 40.0 73.3
chiller&Multiple
categories4 26.7 26.7 100.0
Total 15 100.0 100.0
69
7/29/2019 Promotional Strategies of Coca Cola
70/96
Promotional Strategi