1.
INTRODUCTION
With the development of world and human being, the taste, need and the attitude of human being
also changes. India is one of the common market in the world with a population of more than one
billion. Soft drink is a popular common product which is generally purchased by consumers for
quenching their thirst in summer and also to have cooling refreshment. As far as the market of
soft drinks is concerned, it is facing cut throat competition from the larger number of soft drinks
available in the market. Different brands are available in every segment of flavors, but the
attitudes of the consumers differ from each other due to several factors. Every company tries to
increase their market share and their sales volume. Discounting system followed by the
companies proved to be an essential factor to boost up the purchases made by the retailers.
Companies try to attract the retailers to purchase more by providing some schemes or incentives
or cash/card discount. If more discount or any other incentive scheme is given to the outlets, they
make purchases to avail that offer. Therefore, it is essential for any company to have an efficient
and effective discounting system.
In fact, if you’re like 94% of the world’s population, you probably recognize Coca-Cola based
on the logo alone (even without the iconic swooping brand name). This instant brand recognition
is representative of Coca-Cola’s massive influence on our cultural zeitgeist and shows that the
brand, which has been growing its name for over a century, has done so successfully.
The Coca-Cola Company is the world’s largest number 1 beverage company, largest
manufacturer, distributor and marketer of non-alcoholic beverage concentrates and syrups in the
world, and one of the largest corporations in the United States. The company is best known for
its flagship product Coca-Cola, invented by pharmacist John Stith Pemberton in 1886. The Coca-
Cola formula and brand was bought in 1889 by Asa Candler who incorporated The Coca-Cola
Company in 1892. Besides its namesake Coca-Cola beverage, Coca-Cola currently offers nearly
400 brands in over 200 countries or territories and serves 1.5 billion servings each day.
The company operates a franchised distribution system dating back to 1889 where The Coca-
Cola Company only produces syrup concentrate which is then sold to various bottlers throughout
the world who hold an exclusive territory.
The Coca-Cola Company is headquartered in Atlanta, Georgia. Its current president and CEO is
Muhtar Kent.
Differentiation strategy:
The Coca Cola company has always focused on differentiating its products in beverage industry,
which comprised beverage portfolio of 3300 products. Beverages are divided into diet category,
100% fruit juices, fruit drinks, water, energy drinks, tea and coffee etc. Coca Cola established a
unique position in the Global beverages industry and has its market share around 200 countries.
Coca Cola company always focus on differentiating its brand. Since consumer access has largely
been established in the market, the company continuing invest in its brand and infrastructure
programs but generally at a slower rate than gross profit growth. Differentiation Strategy helps
the Coca Cola company always capture the market share.
Low-Cost Strategy:
The Coca Cola company has its pricing strategy based on different situations and timeline, based
on the competitors pricing or different promotions will be offered. And each sub-brand of Coca
Cola has different pricing strategy. Their pricing strategy is based on the Competitors, for
example, Pepsi is the direct competitor to coke in the beverage market. Customers may compare
the price then choose the lower price beverage product. The objective of Coca Cola is to target
every consumer of the country, therefore Coca Cola set its prices at a level which no competitor
can offer to its consumers. And Coca Cola always charges the same prices as are being charged
by its competitors. This strategy gains a competitive advantage in the beverage markets.
Market segmentation
A Market Segment defines a group of consumers who share the same or a similar set of needs
and wants. As a company you have to find out who your customers are in order to target them
equitable. Following you can see Coca-Cola’s relevant market segments.
Mass marketing vs. Targeted marketing
Coca-Cola takes every customer as a target, however its segmentation is mainly based on “age,
family size and income.”[3] The perfect segmentation was a main factor for Coca-Cola’s
success.
Age is one of the most important segments of Coca-Cola deviding it mainly into two parts: Coca-
Cola mainly addresses its product to a young customer base aged between 10-35.
That is why they often use well-known pop stars to promote their product. Also, the company
targets universities, schools, Colleges etc. in acquiring contracts.
However, the coca-Cola diet products also addresses an elderly segment considering people with
diabetic who are often 40 plus.
Income is another important factor: the company offers its product in many different sizes and
packages at different price levels making it affordable also for students, families, middle-class
etc. This segment is also connected to family size, because of the variation in bottle size and
packaging.
Geographical segmentation
The company sells its products in more than 200 countries. However, they pursue a different
strategy depending on the region, because the needs of potential customer differ from each other
due to climate, income, culture or custom.
An example would be America and China: In America the products of Coca-Cola almost reached
maturity level, whereas in China there is a high growth potential, but the needs and habits differ.
In Asia people are more used to drink tea instead of soft drinks. Also, the Marketing Channels,
the advertisement, looks and taste of the drink can be totally different adapting to people’s
diverse tastes.
Demographic Segmentation
Coca-Cola demographics segmentation includes a broad age range of younger to mid-life
consumers, from 10 to 40 years old. This demographic covers kids and teens, singles, younger
adults still living at home and those who live alone, newly marrieds, married couples without
kids, with young children or with kids in their teen years.
The employment profile of the Coke audience includes students, employees and professionals
alike.
In general, Coca-Cola targets both men and female, however there are some differences in taste
and preferences.
Coca-Cola light for example is quite popular among girls and women, whereas Coke Zero and
Thums up (available in India) has a stronger taste and is mainly preferred by men.
Coca-Cola Behavioral Segmentation
The target market enjoys Coke for several reasons, including its good taste and refreshing feel,
spending time with people, and as part of a general lifestyle habit.
The target audience of Coca-Cola consumes the product regularly, including ‘soft’ loyal users
who enjoy Coke from time to time, and ‘hard’ loyal users, who drink Coke on a more routine
basis.
The Coke target market can be broadly defined as having easygoing, ambitious, and determined
personalities.
Coca-Cola Psychographic Segmentation
A Coca-Cola customer analysis from a psychographic standpoint shows a wide socio-economic
breakdown, from working class to middle and upper class. This target audience tends to fall into
the categories of ‘aspirer’, ‘explorer’ or ‘succeeder’.
The Coke targeting approach also has a strong focus on what’s known as the “conscious
progressive” personality type – consumers who value independence, learning, personal growth
and being true to oneself, and who seek out those traits and experiences in the brands they
consume.
Targeting of Coca-Cola
Coca-Cola’s targeting strategy is broader, not only because of its global presence in the market
but also with the several products that they provide. There is also the need to satisfy various
customers, ranging from average to health-conscious ones. The primary target of Coca-Cola is
younger customers within the age bracket of 10-25 and a secondary market composed of people
aged 25-40.
The company targets the market that desires an intense flavor with their regular cola drinks in
terms of taste. Meanwhile, diet cola drinks and their variants target those customers that are
health conscious. Coca-Cola company has also expanded its product to non-cola beverages to
target those not fond of drinking its regular cola drinks. A Coca-Cola product such as Sprite is
specifically designed to target teens and college students, while others target the young working
group
Positioning
Positioning involves choosing the most suitable marketing mix for the targeted customer
segment. In every business, there are definite competitors. Positioning enables a company to
stand out from the competitors offering the same product or service. Positioning makes a
company unique in the eyes and minds of customers. This makes customers prefer and buy its
products.
Coca-Cola has the ideal multi-segment positioning strategy. Coca-Cola has positioned itself as
the ideal beverage to quench thirst and refresh the body. This is usually shown by the video
advertisement of people drinking and feeling instant refreshment. These marketing techniques
display Coca-Cola as the drink for fun occasions between friends, family members, tired
travelers, and people relaxing during a hot day.
Even more strategically, Coca-Cola has positioned itself as a drink of premium quality. Pick any
three people and ask them about the drink they value as high quality. The answer that reflects
directly in their minds and mouths is most likely Coca-Cola. Anyone wanting to enjoy life’s
pleasure is instantly attracted to Coca-Cola through this positioning strategy
Localized Positioning
The recent ‘Share a coke’ campaign, launched in 2018 in almost fifty countries, has been quite a
success. The images of celebrities of that region and messages according to the local language
and culture of the area target the local market
Coca-Cola Marketing Strategy
A uniquely formulated Coca Cola marketing strategy is behind the company’s international reach
and widespread popularity. The strategy can be broken down into the following:
Product strategy
Coca-cola has approximately 500 products. Its soft drinks are offered globally, and its product
strategy includes a marketing mix. Its beverages like Coca-Cola, Minute Maid, Diet Coke, Light,
Coca-Cola Life, Coca-Cola Zero, Sprite Fanta, and more are sold in various sizes and packaging.
They contribute a significant share and generate enormous profits.
Pricing Strategy
Coca-Cola’s price remained fixed for approximately 73 years at five cents. The company had to
make its pricing strategy flexible with the increased competition with competitors like Pepsi. It
doesn’t drop its price significantly, nor does it increase the price unreasonably, as this would lead
to consumers doubting the product quality and switching to the alternative.
Place Strategy
Coca-cola has a vast distribution network. It has six operating regions: North America, Latin
America, Africa, Europe, the Pacific, and Eurasia. The company’s bottling partners manufacture,
package, and ship to the agents. The agents then transport the products by road to the stockist,
then to distributors, to retailers, and finally to the customer. Coca-Cola also has an extensive
reverse supply chain network to collect leftover glass bottles for reuse. Thus, saving costs and
resources.
Promotion Strategy
Coca-Cola employs different promotional and marketing strategies to survive the intense
competition in the market. It spends up to $4 million annually to promote its brand, utilizing both
traditional and international mediums for advertisements
Promotional mix
Sponsorships
The company is a well-recognized brand for its sponsorships, including American Idol, the
NASCAR, Olympic Games, and many more. Since the 1928 Olympic Games, Coca-Cola has
partnered on each event, helping athletes, officials and fans worldwide.
Social Media
With technological advancement, social media and online communication channels have become
the most significant part of the Coca-Cola marketing strategy. It actively uses online digital
marketing platforms like Facebook, Twitter, Instagram, YouTube, and Snapchat to post images,
videos, and more. The Coca Cola marketing strategy primarily includes SEO, email marketing,
content marketing, and video marketing.
Campaigns
Campaign 1 — The Coca Cola 1998 Cup
Coca Cola exited the Indian market in 1977 due to the then Foreign Exchange Act. It re-entered
India again in 1999. Coca Cola did a strategic sponsorship 1998 with the Sharjah Tri-Nation
Cricket Cup, just before it entered the Indian market. It came to be known as the Coca Cola 1998
Cup.
This was the first cricket tournament in Sharjah to be sponsored by Coca Cola, played by India,
Australia, New Zealand. India won the tournament in a reversal of what happened in the Pepsi
Cup , which was just played before the Coca Cola cup. India winning the Coca Cola cup at a
time when Coke is planning its re-entry into the Indian market, is a great masterstroke.
Campaign 2 — Jo Chaaho Ho Jaaye, Coca Cola Enjoy
Coke re-entered India with the “Jo Chaaho Ho Jaaye, Coca Cola Enjoy” campaign. The ads
featured highly popular youth celebs of the time — Hrithik Roshan, Aishwarya Rai, Aamir
Khan. Coke maintained its initial TG in this campaign and targeted youth, it appealed both at a
product level as well as at an emotional level.
Campaign 3 — Thanda Matlab Coca Cola
In 2003 Coca Cola launched one of the most successful campaigns till date, “Thanda Matlab
Coca Cola.” The ad campaign is a brainchild of one of the most revered advertisers in India
Prasoon Joshi. The series was enacted by Aamir Khan.
So when you crave for a cool refreshing drink or Thanda, the immediate word that comes to your
mind is Coca Cola. This is but a brilliant way to position Coca Cola again as a cool, refreshing
drink for the youth and everyone. This campaign expanded the Coke TG from the initial youth to
the masses. This was a first attempt in dissolving boundaries and representing Coke as The Cool
Drink for everyone.
Conclusion
Good marketing strategies build Coca Cola's customer loyalty and
contributed to a huge market share. Coca cola’s Brand equity is
unmatchable by its competitors.
