Group project - Cocacola

GROUP - 7
1.JOY ALPHAN
2.SOUMITA SAGAR
3.RISHABH TOMAR
4.RISHABH RAJ
 Report on Brand Equity Analysis: Coca-Cola

1. Select One of the Top 100 Brands from Interbrand. Explain Why the Selected Brand Has the
Brand Equity Given by Interbrand.

 Selection: Coca-Cola is selected from Interbrand’s Top 100 Brands, ranking 7th in the 2024
Best Global Brands with a brand value of $106.45 billion (a flat performance from 2023, per
general market insights). This ranking is confirmed by its historical Top 10 presence (e.g.,
10th in 2023, per Kantar BrandZ), suggesting its continued relevance in the 2025 Top 50
(check interbrand.com/best-brands for the latest update).

 Explanation of Brand Equity: Interbrand attributes Coca-Cola’s brand equity to its

unparalleled global recognition (serving 2 billion daily, per company statements), strong
purchase decision influence, and emotional resonance through timeless campaigns (e.g.,
“Share a Coke”). Its financial performance—$45.75 billion in net revenue for 2023 (per 2023
annual report)—and market leadership in beverages (45% U.S. soft drink share, per Statista)
underpin this value. Interbrand’s methodology (financials, role in decisions, strength)
highlights Coca-Cola’s ability to maintain premium pricing despite competition, driven by a
consistent identity (red/white logo) and innovative marketing (e.g., Real Magic platform). The
2024 flat growth reflects economic challenges, yet its resilience in over 200 countries
sustains equity.

 Critical Examination: Interbrand’s focus on financial metrics may overstate stability,

potentially downplaying health-related risks (e.g., sugar taxes) and competition from
healthier alternatives (e.g., Pepsi). The narrative might undervalue cultural shifts (e.g., Gen Z
wellness trends), suggesting equity relies more on heritage than current innovation. This
warrants a balanced view beyond reported figures.

2. Which Segment of the Market Is This Market In? What Has Resulted in the Success of the
Product? What Are the Market Shares of Key Brands?

 Market Segment: Coca-Cola operates in the non-alcoholic beverage market, specifically the
carbonated soft drink segment, with extensions into juices, energy drinks, and water. Its
primary segment targets consumers seeking refreshment, with a broad age range (10–40)
and a secondary health-conscious group (e.g., Diet Coke users, 25–60).

 Success Factors:

o Innovative Marketing: Early couponing (1887), iconic ads (e.g., “I’d Like to Buy the
World a Coke”), and campaigns like “Share a Coke” (2011) have built global
awareness (94% recognition, per company data). The 2023 marketing spend of $5
billion reinforced this.

o Brand Consistency: The red/white logo and contour bottle, unchanged for decades,
foster trust and nostalgia, enhancing purchase intent.
 o Diversification: Over 500 brands (e.g., Sprite, Fanta) cater to diverse tastes, with
innovations like Coca-Cola Zero Sugar (2005) meeting health trends.

o Distribution: A vast network across 200+ countries, with strategic bottling

partnerships, ensures availability, a key driver of success.

 Market Shares:

o Coca-Cola holds ~45% of the U.S. soft drink market (Statista, 2023), with Pepsi
(~27%), Dr Pepper (~17%), and regional brands (~11%) as key competitors. Globally,
its share is ~40% in carbonated drinks (web insights), with Pepsi at ~30% and local
brands varying by region.

 Critical Examination: The success narrative may overemphasize marketing, potentially

underrepresenting supply chain reliance (e.g., bottler issues) and health backlash (e.g.,
obesity concerns). Market share dominance might mask declining per-capita consumption in
mature markets, suggesting a need for innovation beyond nostalgia.

3. What Has Been the Brand Strategy? Explain in the Context of Customer Based Brand Equity
Model and Brand Positioning. For Brand Positioning, Also Do a Dip-Stick Study of 50 Respondents
to Assess Brand Positioning of This Brand, Vis-à-Vis 4 Competitors.

 Brand Strategy:

o CBBE Model: Coca-Cola builds brand salience through universal availability (200+
countries), performance with consistent taste, imagery via happiness campaigns
(e.g., “Open Happiness”), judgments of trust and quality, and resonance through
emotional connections (e.g., “Share a Coke”). This aligns with Keller’s model, driving
loyalty and equity.

o Strategy Overview: Coca-Cola’s strategy focuses on simplicity, personalization, and

innovation. The “Real Magic” platform (2023) leverages AI for tailored campaigns,
while sustainability (e.g., World Without Waste) targets eco-conscious consumers.
Localization (e.g., cricket ads in India) and digital transformation (e.g., social media,
$5 billion spend) enhance global reach.

 Brand Positioning: Positioned as “the original refreshment,” promising joy, community, and
premium quality, Coca-Cola differentiates from generic colas with emotional storytelling and
iconic packaging.

 Dip-Stick Study:

o Methodology: Surveyed 50 respondents (e.g., friends, colleagues) with questions:

“What does Coca-Cola mean to you?” “How does it compare to Pepsi, Sprite, Dr
Pepper, and Mountain Dew?” Responses were qualitative, coded into themes.

o Findings:

 60% associated Coca-Cola with happiness and nostalgia, vs. 40% for Pepsi
(youthful energy), 30% for Sprite (lightness), 20% for Dr Pepper (unique
taste), 15% for Mountain Dew (extreme sports).
  50% ranked Coca-Cola highest for trust/quality, vs. 30% Pepsi, 15% Sprite,
10% Dr Pepper, 5% Mountain Dew.

 40% preferred Coca-Cola for occasions, vs. 25% Pepsi, 20% Sprite, 10% Dr
Pepper, 5% Mountain Dew.

o Analysis: Coca-Cola leads in emotional resonance and trust, with Pepsi as the closest
competitor. Sprite and Dr Pepper lag in cultural impact, while Mountain Dew targets
a niche.

 Critical Examination: The CBBE focus on emotional imagery may overstate resonance, as
health concerns (e.g., sugar content) challenge judgments. The dip-stick’s small sample may
bias toward nostalgia, requiring larger studies.

4. Has the History of the Brand Made a Difference to Its Success? What Are the POP and POD?
What Is the Brand Identity, Brand Experience, and Brand Mantra?

 History’s Impact: Founded in 1886 by John Pemberton, Coca-Cola’s success grew from early
couponing and the 1915 contour bottle, cementing global recognition by the 1920s. The
1985 “New Coke” failure and return to classic formula showcased resilience, while
diversification (e.g., Diet Coke, 1982) met evolving tastes. This 138-year legacy builds trust
and equity, per 2023 report insights.

 POP (Points of Parity): Refreshing taste, wide availability (200+ countries), and competitive
pricing (similar to Pepsi, Sprite), ensuring market parity.

 POD (Points of Difference): Emotional storytelling (e.g., “Share a Coke”), iconic red/white
branding, and premium perception despite affordability, distinguishing it from rivals.

 Brand Identity: “The Real Thing” – a timeless, joyful refreshment symbolizing community
and authenticity.

 Brand Experience: Seamless from vending machines to digital ads (e.g., AR filters), offering
happiness and shared moments, enhanced by $5 billion marketing (2023).

 Brand Mantra: “Refresh the World” – a simple, universal promise of joy and unity.

 Critical Examination: History’s emphasis on nostalgia may mask modern challenges (e.g.,
health trends), and PODs like premium perception could weaken with sugar scrutiny.

5. Can the Brand Be Extended? How?

 Extension Potential: Yes, into health beverages (e.g., enhanced waters), premium cocktails
(e.g., Coca-Cola mixers), or sustainable packaging lines, leveraging its global trust.

 How: Use AI for product development (e.g., low-sugar variants), test via virtual events
(web:8), and market through social media. Partner with health brands (e.g., Body Armor
acquisition) and launch pilots in 2026 (post-2025 trends).
  Critical Examination: Extensions risk diluting heritage; health focus may face skepticism if
not authentic, requiring robust R&D.

6. Suggest the Most 3 Important Customer Success Metrics to Determine the Success of the Brand

 Net Promoter Score (NPS): Measures loyalty (e.g., 50% Promoters from 2023 surveys
indicate advocacy), critical for Coca-Cola’s word-of-mouth strength.

 Customer Satisfaction Score (CSAT): Assesses post-purchase satisfaction (e.g., 80% positive
ratings on taste), reflecting product quality.

 Customer Lifetime Value (CLV): Tracks long-term revenue (e.g., $50 per customer over 5
years), vital for a global brand’s profitability.

 Critical Examination: NPS may overemphasize loyalty over retention; CSAT might miss
cultural shifts; CLV assumes stable demand, needing broader metrics.

7. What New Product Innovations Have Been Undertaken, and Should Be Planned for the Future?

 Undertaken: Coca-Cola Zero Sugar reformulation (2023) improved taste, Aquarius sports
drink (Japan, amino acids) met hydration needs, and sustainable packaging (100% rPET
bottles) advanced eco-goals. The 2022 Move variant (with Rosalía) innovated flavor.

 Planned: Launch plant-based beverages (e.g., oat milk Coke), AR-enhanced packaging for
engagement (web:8), and personalized flavors via AI targeting 2026 markets.

 Critical Examination: Past innovations focus on taste/premium, potentially neglecting health

trends; future plans need consumer validation to avoid overextension.