Marketing Strategies of Cococola(1)

8/13/2019 Marketing Strategies of Cococola(1)

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PROFIT: Maximizing return to shareowners while being

mindful of overall responsibilities.

PEOPLE: Being a great place to work where people are

inspired to be the best they can be.

PORTFOLIO: Bringing to the world a portfolio of beverage

brands that anticipate and satisfy peoples Desires and needs.

PARTNERS:Nurturing a winning network of partners and

building mutual loyalty.

PLANET: Being a responsible global citizen that makes a

difference.

VISION


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MISSION

The Coca Cola Company creates value by executing

comprehensive business strategy guided by six key beliefs:

Consumer demand drives everything we do.

Brand Coca Cola is the core of our business We will serve consumers a broad selection of the

nonalcoholic ready-todrink beverages they want to drink

through out the day.

We will be the best marketers in the world. We will think and act locally.

We will lead as a model corporate citizen.


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VALUES

Coca-Colais guided by shared values that both the employees as

individuals and the Company will live by; the values being:

LEADERSHIP: The courage to shape a better future

PASSION: Committed in heart and mind INTEGRITY: Be real

ACCOUNTABILITY: If it is to be, its up to me

COLLABORATION:Leverage collective genius

INNOVATION: Seek, imagine, create, delight

QUALITY: What we do, we do well


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MARKETSHARE

Coca-Cola is a leading player in the Indian beverage market

with a 60 per cent share in the carbonated soft drinks

segment, 36 per cent share in fruit drinks segment and 33 per

cent share in the packaged water segment.

In 2004, Coca-Cola sold 7 billion packs of its brands to more

than 230 million consumers across 4,700 towns and 175,000

villages.

The company has doubled its volumes and trebled its profits

between 2001 and 2004.


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Entry strategies

As an entry strategy, CCI took over Parle Foods

Acquisition of local popular Indian brands including Thums Up

(the most trusted brand in India21), Limca, Maaza, Citra and

Gold Spot

This combination of local and global brands enabled Coca-

Cola to exploit the benefits of global branding and global

trends in tastes while also tapping into traditional domestic

markets.

Leading Indian brands joined the Company's international

family of brands, including Coca- Cola, diet Coke, Sprite and

Fanta


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Product line soft-drink:

Coca-cola

Sprite

Fanta Diet coke

Limca

Maaza

Thums up


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Target market

Diet coke: weight consciousness

Maaza: kids , juice loving people Sprite: young people

Thums-up: confident, mature and uniquely masculine

attitude people

Fanta: girls, ladies


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THUMSUP

Thums Upis a leading carbonated soft drink and most trusted

brand in India.

Originally introduced in 1977, Thums Up was acquired by theCoca-Cola Company in 1993.

Thums Up is known for its strong, fizzy taste and its confident,

mature and uniquely masculine attitude. This brand clearly

seeks to separate the men from the boys. Mostly like by the

youngsters specially boys.

The competitor of the brand on same category is Pepsi.


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COCACOLA

Coca cola is the world's favorite drink. It is the world's most

valuable brand and the most recognizable word across the

world.

Coca-Cola has a truly remarkable heritage. From a humble

beginning in 1886, it is now the flagship brand of the largest

manufacturer, marketer and distributor of non-alcoholic

beverages in the world.

The competitor on the cola category is Pepsi.


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The company focuses on understanding the Indianconsumer, and in using these local insights to build

powerfulconnect for its brands. popularity of cricket and movie stars

Activating local Indian festivals and occasions

Creating a distinct identity for each of its flagship brands

'Coca-Cola' is the most recognised trademark,recognised by 94% of the world's population and isthe most widely recognised word after "OK"

IntensiveBrand Building


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Product Positioning

THUMS UP

Thums up of coca cola is targeted to the adventurous and

energetic people that are interested in adventure and love

taking risk to succeed.

MINUTE MAID

Minute Maid of Coca cola are specially targeted to health

conscious customers and want health drink having natural

energy in it.

FANTA

The drink is specially launched for the lady sector of the

population and these drinks are positioned in that way only.


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Market Segmentation

AGE

GENDER

RURAL VS. URBAN MARKET


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BRAND LOCALISATION

STRATEGY: THE TWO INDIAS

INDIA A: LIFE HO TO AISI

This designation Coca-Cola gave to the market segment

including metropolitan areas and large towns represented 4%

of the countrys population.

INDIA B: THANDA MATLAB COCA COLA

INDIA B included small towns and rural areas, comprising

the other 96% of the nations populations.


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Distribution Strategy

Coca cola is worldwide famous for their Distribution

channel. IN India the distribution network of Coca cola had

6.5lakh outlets across the country in 2000 .For the urbandistribution channel these companies adopted the model

like direct store distribution, broker warehouse distribution

and Vending & Food Service (V&FS) systemswhere as these

companies are following the Hub and Spoke model for ruraldistribution channel, in which they divided the different

categories of distributors according to the area they are

covering.


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PRICE

To effectively achieve the stable balance between sales and

covering the production cost

Company has priced the product same as that of its major

competitor of the market leader


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PricingStrategy-1


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Pricing Strategy-2

Coca Cola follows penetration pricing strategy and reasons areas under:

Coca Cola has high market share & competitor pressure has

forced customer

to price to be fairly high

Demand for product is highly flexible , price sensitive and

either new consumers

will be attracted or existing consumers will buy more of

product due to low price

High sales volume with low profit margin as products arefast moving consumer goods


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Pricing Strategy-3

Benefits of good penetration strategy: Large amount of sale and large market share

Promotion of complimentary products i.e. main product

may be priced low to

attract sales and customers are then sold accessories

Promotes re-use of Coca Cola packaging via a beverage

holder of vessel which is

purchased separately and refilled

De-merit of penetration strategy: Likely hood of competitors doing the same by reducing

their prices, therefore

damaging any advantage of the reduced price


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Pricing Strategy-4

Broad factors for considering penetration pricing strategy by

Coca Cola:

High degree of standardization : Coca Cola is trying to create

a standardization

of how customers use beverage container. Coca Cola is likely to face stiff competition soon after

introduction of the product,

although the product that achieves high market penetration

often becomes the

industry and other products, even superior products, become

marginalized.


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Promotion-1


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Promotion-2

Broad channels being considered by Coca Cola are mentionedas under:

Advertising: Coca Cola shall appoint sponsor for non formal

presentation and promotion of its product

Personal selling: Coca Colas sales force shall sell and build

customer relationship

Sales promotion: Coca Cola plans to distribute gift vouchers

for encouraging sales

Public relations: Coca Cola plans to build good relationship

by obtaining favorable publicity, building up goodcorporate image

Direct marketing:Coca Cola shall carefully target individual

customers through direct communication channels to

obtain immediate response and cultivate lasting customer

relationships


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PROMOTION-3Adverti

singform

Strengths/weaknesses Tools or

tactics

Billboar

ds

Strength: Seen by large

audience, hard to avoid, large

presence, people highly

receptiveWeakness: Because it is an

old form of advertising and so

widely used consumers learn

to ignore it, does not target

audience

Coke have

incorporated

interesting

billboardsbefore, they

frequently

advertise on

neon displays

TV

Adverti

sement

Strengths: Seen by large

audience, can be targeted on

specific programs/channels,

good communication deviceWeakness: Watershed on unk

Coke have

good cult TV

adverts, such


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PROMOTION-4Advertis

ing form

Strengths/weaknesses Tools or tactics

Magazin

e/Newsp

aper

Strengths: Target market

specific, readers highly

receptive

Weaknesses: Consumers

have learnt that glossymagazines are full of

adverts and flick through

them

Advertising in

lifestyle magazines

with emphasis on

sports, fitness, health

and crossover incokes lifestyle image

would be a viable

form of advertising

for new product

Public/street

furniture

Strengths: Seen by largeaudience, events or places

e.g. cricket stadium etc

Weaknesses: Not long

timescale, needs to be

updated frequently to

Continue Coca Colassponsorship of

various cricketing

tournaments. Good

for brand image

lifestyle and looks


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PROMOTION-5Advertis

ing form


Online

advertisi

ng

Strengths: Can be targeted

on specific websites, good

and cheap communication

device

Weaknesses: Emails frombusinesses can be flagged

as spam, opportunities in

social networking sites for

viral advertising

In the form of email to

subscribers,

informing them on

new product. TV style

adverts can bedirectly shared with

users on social

networking site You

Tube and good

adverts have createdcult followings on the

video websites


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Promotion-6Factors for finalizing mode of advertisement:

Massive global brand Huge brand awareness

Preferred mode of advertisement:

TV Advertising Campaign on company website

Viral marketing on social websites like You Tube

Benefits of TV mode:

Advert should gain cult status and target market will virally

spread advert to friends in same market Consumers are highly responsive to videos they have

chosen to watch on the web

Reaching target market through more sport sponsorship

promotes coke lifestyle image and new healthier productwell


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PROMOTION-7Personal selling:

Company distributes cooler fridges and vending units

to community centers, sports halls and shops

Company can offer sponsorship deals such as free

tickets to sporting events like football, cricket

Sales

promoti

on form

Strengths/weaknesses Tools or

tactics

Price

deal:

Tempor

ary

reductio

n in

Strengths: Great response in fast

moving consumer goods wherebrand loyalty isnt definitive

Weaknesses: Sales volume might

not reach desired target and profit

margins might not meet

As the

pricingstrategy is

penetrative,

this would be

a well worthy

promotion


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Sales

promoti

on form


Loyalty

rewardsprogram

:

Consum

erscol lect

points,

mi les

Strengths: Provides

incentive to be brand loyal,new customers encouraged

to switch brands to get

reward

Weaknesses: Advertisinghas to be in place about the

scheme

Loyal customers

with the refillablebottle will reap

benefits of price

reduction compared

to competitors

because they wontbe purchasing

packaging


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Sales

promoti

on form


Coupon

s:Coupon

s have

become

standar

dmechan

s ism for

sales

prmot io

ns

Strengths: Encourages

customers to purchase anitem they may not have

before

Weaknesses: doesnt

encourage any loyalty to theproduct

Coupons dont fit

into Coke brandimage and


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Sales

promoti

on form


Coupon

s:Coupon

s have

become

standar

dmechan

s ism for

sales

prmot io

ns

Strengths: Encourages

customers to purchase anitem they may not have

before

Weaknesses: doesnt

encourage any loyalty to theproduct

Coupons dont fit

into Coke brandimage

PROMOTION


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PROMOTION

PUSH STRATEGY

Coca cola is using Push strategy in which they use its sales force

and trade promotion money to induce intermediaries to carry,

promote and sell the product to end users i.e. consumers. For example-as coca cola is giving free pet bottles and other trade

schemes to distributors, agency owners and retailers.

PULL STRATEGY: -

Coca-cola is also using Pull strategy in which they are using advertisingand promotion to persuade consumers to ask intermediaries for the

company brand product by this way coca cola inducing customer to order it

from shopkeeper.

For example-Coca cola is using flanges, display racks, tier racks, standees,

mobile hangers and visicooler brand strips.

SALES PROMOTION ACTIVITIES


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SALES PROMOTION ACTIVITIES

Coca-Cola Cricket Coca-Cola Food Mela

Coca-Cola GO-RED

Coca-Cola & Mc Donalds

Coca-Cola & key account of MC Donalds launchedthe we go together joint promotion to reinstateamongst consumers a real sense of the affinity that,

both shares globally. The promotion kicked off with point of sales material

(Danglers, Bunting etc) displayed at all MC Donaldsrestaurants along with a special offer for coke &fries.


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PLACE

Distribution channel:

Supply chain of coca-cola

C & F agent

Distributor

Retailer customer


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Rural Market Scenario

The rural population in India accounts foraround 627 million, which is exactly 74.3

percent of the total population.

1/3rd of countrys GNP 450 districts, 6,30,000 villages approx.


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Key to success in Rural India

Physical Distribution

Channel Management

Promotion and Marketing Communication


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Challenges for Coke

Poor rural Infrastructure.

Erratic power supply.

Different consumption habits.

Preference for traditional cold beverages

(lassi,lemonade).

Price of the branded beverages.


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CCIs Rural Mktg. Strategy

Three As

Availability:

Capacity expansion25 prod. lines and doubled bottle capacity.

Unique and different distribution strategyhub & spokedistribution.

Coverage of 1,58,342 villages by Aug. 2003 (81,383 in 2001). 2,00,000 refrigerators to rural retailers.

Affordability

Introduction of 200ml bottle (chota coke).

Priced at Rs. 5, closed the gap between Coke and basic

refreshments.Acceptability

Mass media marketing.

Launched TVCs targeted at rural consumers.


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Coke realized that the communication media

used in urban markets would not work in

villages because of low penetration of

conventional media.Way out...

Outdoor advertising and hoardings, etc.

Participation in weekly mandies, haats, &fairs.

Increased ad-spend on Doordarshan .

I t f Ad ti i i R l


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Importance of Advertising in Rural

Marketing

The low level of education that creates problem inbrand identification. Since they can not read thebrand names and price tags it makes it easier forthe clones to launch brands similar in label and

design and spoil the brand image. Unscrupulous retailers are taking the benefit and

damaging the perception of the brands beforethey actually enter in to the rural market.

It helps in acceptability of the product.

It helps in market penetration. To strengthen the brand image of the product.


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Swot analysis

Strengths

Weakness Oppurtunities Threats

Worlds

largest

brand

Negative publicity Acquisition

intense

competition

Intense

competition

Large scale

of

operations

Sluggish performance in

north america

Growing

bottled water

market

Dependence

on bottling

partners

Robust

revenue

growth

Decline in cash from

operation activities

Has

sufficient

capital to

expand

Sluggish

growth of

carbonated

beverages


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SWOT Analysis

STRENGTHS:

Coke Company has a good market reputation and a strong distribution network.

Coke is having a multi brand strategy ad is looking for a great volume opportunity inIndia.

Coke is presently no. 1 player in Indian Carbonated soft drinks market.

Coke was born 11 year before Pepsi (in 1987) ad a century later still maintains thatpioneering least.

Pepsi and coke both have good brand image.

WEAKNESS:

Coke has less no. of retailers

Less force - it has less no. Have owned bottling plant.

It has not planned for setting up of any new plants where their competitor hasplanned to set up several new plants.


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OPPORTUNITY:

A rapidly growing market, which is expanding @ 205 every year.

It can take the market very well with the new investment of Rs. 2400 corers.

It can give a big jerk to its major competitor Pepsi it can increase its number of fountain to asizeable amount.

Increasing trend of cold drink of different brands.

THREATS:

It has a continuous threat from Pepsi as well as various other local soft drinks.

Coke has a major market than Pepsi between the teenager as well as the student due toadvertisement of world cup cricket.

A large amount of expenses on the advertisement.

There is no proper policy of distributing the merchandising assets of the company to the retailers.

The company should search the new target market to expand the market share in this competitiveera.

To meet the demand of the customers the company should set up the new plants as itscompetitors are planning to set up.

Marketing Strategies of Cococola(1)

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