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Coca-Cola Marketing Analysis

Coca-Cola was invented in 1886 by John Pemberton, an Atlanta pharmacist. Over a century later, Coca-Cola produces nearly 10 billion gallons of syrup annually, controlling around 59% of the global soft drink market. Through aggressive advertising campaigns with slogans like "Demand the Genuine" and expanding operations globally, Coca-Cola became the world's leading soft drink company. Currently, Coca-Cola focuses on marketing to young people and emphasizes growth in Asian markets, where average consumption is rising.

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0% found this document useful (0 votes)
102 views8 pages

Coca-Cola Marketing Analysis

Coca-Cola was invented in 1886 by John Pemberton, an Atlanta pharmacist. Over a century later, Coca-Cola produces nearly 10 billion gallons of syrup annually, controlling around 59% of the global soft drink market. Through aggressive advertising campaigns with slogans like "Demand the Genuine" and expanding operations globally, Coca-Cola became the world's leading soft drink company. Currently, Coca-Cola focuses on marketing to young people and emphasizes growth in Asian markets, where average consumption is rising.

Uploaded by

Caron Kumar
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Organization background:

Coca-Cola was discovered, we would rather say invented in 1886, just out of curiosity to
know what the mixture of certain ingredients does. It was John Pemberton, an Atlanta
based pharmacist, who created this amazing mixture of fragrant and caramel coloured
liquid. He then took that mixture to the nearest pharmacy to get it carbonated and the
thing that came up is now has become a greatest known brand in this world.

In the initial stage, Coca-Cola had sold just 9 glasses a day for an entire year. But, a
century later it has produced nearly 10 billion gallons of syrup. After just three years of
this invention, an Atlanta based businessman Asa Griggs Candler acquired rights of the
business and brand in just £1500. He then became the first official president of Coca-
Cola enterprise.

As a natural salesperson Asa Candler started marketing the brand in 1893. He found out
various brilliant and innovative ideas of promoting the brand. He started distributing
promotional coupons for complimentary taste of the beverage, and outfitted
distributing pharmacists with clocks, urns, calendars and apothecary scales bearing the
Coca-Cola brand. People saw Coca-Cola everywhere, and the aggressive promotion
worked. That was the start it needed and successfully achieved. Further the company
grown after its expansion to the other parts of US territories and of the world.

During its journey from 9 glasses a day to over 9 billion servings a day around the world,
Coca-Cola Company has struggled hard over time to safeguard the company and the
brand. It has mainly focussed on advertising as their main strategy for expansion. Many
brand tags have changed from time to time like “Demand the genuine” and “Accept no
Substitute”. It was to make customers aware of brand’s value and keep them away from
buying substitute products of Coca-Cola.
CONCLUSION:
Market Share
Being the biggest company in the soft drink industry, Coca Cola enjoys the largest
market share. This company controls about 59% of the world market.

Global Market Share


The market of the company is geographically vast and it is controlling it with great
success. In 2002, the company grew their carbonated soft-drink business by nearly 250
million unit cases and generated record volumes. Because carbonated soft drinks are the
largest growth segment within the non-alcoholic ready-to-drink beverage category
measured by volume, that is why they are focusing more on this and they are
continually increasing the pace because they know that accelerating this pace is crucial
to their future success. Thus they are increasing their market day by day. The operation
income earned by Coca Cola Company can be illustrated by the following pie chart.

This strategy has worked a lot and it has helped them to become the World’s leading
Soft Drink Company. The global unit sale of the Coca Cola Company is increasing from
the last ten years. The data of the global unit sale of the Coca Cola Company can be
represented by following chart.

So there is positive growth in the market of the Coca Cola Company. There is a
worldwide volume increase by 4% with strong international growth of 5%. This is only
due to the innovative marketing programmers, which has deepened the relationship of
the customers and Coca Cola. The financial health and success of their bottling partners
is a critical component of The Coca-Cola Company’s ability to build and deliver leading
brands.In 2002, the company had worked with their bottlers to turn good intentions into
reality by improving the system economics. The results in 2002 reflect this steadily
improving and mutually constructive relationship between the Company and their
bottling partners. The main reason behind this relationship is to continue realizing
shared opportunities for growth, with closer coordination of operations including
customer relationships, logistics and production.

Operation Review
 

The volume is least in the Africa and most in the North America. The data about the
market share of this company area wise is given in the following table.

The above table shows the geographical earning of the Coca Cola Company and from
this data; we can find out that the customers of Coca Cola are increasing which is shown
by the company’s per capita income. Unit case equals 24 eight-ounce servings. The
column, which shows the non-alcoholic beverages consist of commercially, sold
beverages, as estimated by the Company based on available industry sources. The
country column is derived from

The Company’s unit case volume while the industry column includes non-alcoholic
ready-to-drink beverages only, as estimated by the Company based on available
industry sources.

In Asian population, which is the satisfied customer of Coca Cola, is approximately 3.2
billion and the average consumer enjoys close to two servings of our products each
month. Through an intense focus on Coca-Cola, innovation and new beverages, the
company has achieved volume growth of 10 per cent in 2002. With developing
economies and populations, this region has strong long-term potential, and the
company is building an exciting family of beverage brands in addition to expanding the
popularity of our core brands, led by Coca-Cola. In China, for example, sales of Coca-
Cola increased 6 per cent. The total unit case sale of Coca Cola in Asia can be shown by
the following pie chart.

So the company is emphasizing more in this area and is trying to develop a strategy,
which can increase the growth of the consumption of Coca Cola by the people of Asia.
Among the countries of Asia, Japan has the highest percentage, which is about 29%.
Among others, Pakistan, India and Bangladesh are those countries where the average
consumption is increasing day by day.

TARGET MARKET
Coke’s commercials basically based on young generations, So, the young generation is
the target market of Coke because they want to represent Coke with the youth and
energy but they also consider about the old people they take then as a co-target
market.
PRODUCTS:
There are different brands of the Coca Cola Company, which are currently in use
through out the world. This company not only deals in the carbonated drinks but also
other drinks. While launching its product, the marketing team considers the culture of
the country.

Major brands of coca cola


 Coke
 Sprite
 Fanta
 Diet coke
 Coke classic

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INTRODUCTION;

1. Background
Coca Cola was founded by Dr. John Pemberton, a pharmacist from Atlanta, Georgia in
May, 1886. (inventors.about) Coca Cola has achieved a strong and substantial growth in
the past 120 years. The table below details the rapid growth of Coca Cola from a small
glass of soda beverage to the most popular can of drinks all over the world.

2. Vision, Mission, Goals and Values


Mission and vision

Similar to other multi-national companies, Coca-Cola aims to maximise their profits


while maintaining a long-term sustainable growth within the beverage industry. The
company’s mission statement states that the company aims to:

 refresh the world,


 inspire moments of optimism and happiness and
 Create value and make a difference in the place that we all live in.
In order to put the company’s mission into perspective, the organization conducts their
business in a unique fashion and is quite distinguished from its competitors. Rather than
going through direct marketing programs and traditional channels to the consumers,
Coca-Cola utilizes various bottling partners in order to focus more on beverage creation
and marketing.

It is called “The Coca-Cola system”. The company starts by manufacturing the


concentrates, beverage bases and syrups then distribute them to their bottling partners
while keeping ownership of the brands. The company itself is more involved in the
marketing activities such as print and television advertising, retail store displays as well
as contests and package designs.

The bottling partners on the other hand, comprise of many different entities. They
include international and publicly traded businesses and even some small family
businesses. These partners are usually responsible for the producing, packaging and
distributing of the company’s products

Recommendation
In order to position itself as one of the most socially responsible organizations in the
midst of financial downturn, market saturation and climate change, Coca Cola should
adopt green strategies and incorporate them into every strategic aspect. They should
implement the green strategy into their supply chain by trying to reduce energy costs or
use alternative renewable energy sources and encourage suppliers, distributors and
employees to operate in a green way.

As Coca Cola, products packaging rely heavily on the use of plastic and aluminum cans
the company’s research and development team should innovate new and environmental
friendly materials to respond to the constantly changing demand of customers for
greener and more sustainable products. For example, using plant-based plastic bottles,
which are 100 % recyclable and biodegradable. The use of plastics made out of
renewable materials not only minimizes the impacts of plastics on health and
environment, but also reduces their reliance on the use of petroleum oil.

Coca Cola may also focus on changing and improving consumer perception about their
brand image as a high calorie and unhealthy drink by repositioning itself through a
more intensive value creation and innovation. To respond to a growing trend of
consumer preference for a healthier and more nutritious diet and to allow consumers to
make informed decisions on their beverage choices, Coco Cola can include front-of-
pack energy information on all of their products and introduce new products with lower
calorie.

Conclusion
In order to survive and perform successfully within a highly competitive industry, Coca
Cola has been able to utilize various corporate and business strategies to align each
business unit’s objective and goals and act as one whole company. By doing so, the
company is able to combine and employ their resources in a more efficient manner.

It is not due to serendipity that Coca Cola has become the world’s largest producer and
manufacturer within the beverage market. It is obvious that the management of the
company has articulately positioned the company within the beverage industry. This can
only be done through extensive market research on its customers, its supply chain as
well as the company itself.

Rationale
The core activities are an important play for the company because if what makes them
different from the rest of the company. They depends a lot in the suppliers the bottling
companies and the customers. They play in an important role in making the product as
the suppliers give them the prime materials. Then there are the bottling companies that
are play an equal significant part, they are the package where the product is deliver and
if you can see the bottle of the products of the company are immediately associated
with the company. For example Coca Cola has a unique bottle design that everyone in
the world with associate or recognized.

MARKETING STRATEGY

Our local marketing strategy enables Coke to listen to all the voices around the world
asking for beverages that span the entire spectrum of tastes and occasions. What
people want in a beverage is a reflection of who they are, where they live, how they
work and play, and how they relax and recharge. Whether you’re a student in the United
States enjoying a refreshing Coca-Cola, a woman in Italy taking a tea break, a child in
Peru asking for a juice drink, or a couple in Korea buying bottled water after a run
together, we’re there for you. We are determined not only to make great drinks, but also
to contribute to communities around the world through our commitments to education,
health, wellness, and diversity. Coke strives to be a good neighbor, consistently shaping
our business decisions to improve the quality of life in the communities in which we do
business. It’s a special thing to have billions of friends around the world, and we never
forget it.

RECOMMENDATIONS

After completing our project we have concluded some recommendation for the coca-
cola company, which are following. Coca Cola Company should try to emphasis more on
providing their infrastructure in the market to facilitate their customers. According to the
survey, conducted by the international firm Pakistani people like little bit sweeter cola
drink. So for this coca cola company should produce their product according to the local
demand. Marketing team should try to increase the availability of Coke in rural areas.
They should also focus the old people. Now young generation has a trend to drink a
coke 2 regular bottles at same time, so providing more satisfaction to them company
should introduce ½ liter disposable bottle.

 Coca Cola Company should try to emphasis more on providing their infrastructure in the
market to facilitate their customers.
 Marketing team should try to increase the availability of Coke in rural areas. Especially
the unexplored regions of South East Asian countries
 They focus should also increase towards old people, as the youngsters have already been
accustomed to drink it.
o TARGET MARKET: Coke’s commercials basically based on young generations,
so, the young generation is the target market of Coke because they want to
represent Coke with the youth and energy but they also consider old people as a
co-target market.
o Increasing the Volume consumption by increasing the interest level of the
consumers

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3.1.4 Technological
Technological force refers to analysis where the introduction and the emerging
technological techniques are valued. This creates opportunities for new products and
product improvements in terms of marketing and production. As the technology
advances, new products are introduced into the market

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Competitive Rivalry
Competitive rivalry is between two main competitors the Coca Cola Company and
Pepsico to satisfy the taste of consumers in this industry. Last month Beverage Digest
reported that Pepsi-Cola’s market share fell 0.5 percentage point while Diet Coke
slipped just 0.1 percentage point in the U.S. supermarkets, convenience stores and other
retail outlets. The two companies have fought over the past decade to win market share
from one another as overall sales dropped. This relates to Porter’s article on the 5
competitive forces that shape strategy. There is an intense rivalry between these two
companies. According to porter “high rivalry, limits the profitability of the industry.” The
Coca Cola Company and Pepsico are competing based on brand image.

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