The Coca Cola Company Essay Example
Table of Content
31. Executive Summary
54. Position Strategy
64.1. Target Market
64.1.1. Psychographic Segmentation
74.2. Competitor Analysis
84.3. Points of Parity and Points of Differentiation
85. Building Brand Equity
85.1. Brand Awareness
95.2. Selection and Justification of Brand Elements
95.3. Brand Image
105.4. Brand Association
106. Communication Strategy
116.1. Message and Creative Strategy
116.2. Media Mix
137. Measuring Brand Equity
The Coca Cola Company is the most popular distributor of beverages and the non-alcoholic drinks all over the world. The product manufactured by the company includes 3600 products. The products range from juices, tea, water, coffee as well as the energy drinks. The firm requires new strategies which will help in countering the stiff competition which exists in the beverage market. The analysis of the market segmentation and differentiation is a great tool to help in the formulation of the plan which will increase the competitiveness of the firm and to ensure that the company is resilient during the market fluctuations. Anchoring the operation of the primary and secondary data will be effective in fostering the resilience of the firm. The document will also represent the marketing status of the firm which indicates the new drinks and beverages produced by the organization.
Coca Cola Company is a private brand which produces the Coca Cola and sprite drinks without the collaboration of other organizations. The company is the largest distributor of the soft drinks all over the world. Coca-Cola Company is also popular in the world for the production of unique beverages which are consumed across the continents. The company was established by Asa Candler in 1892 and has its headquarters in Atlanta in Georgia district of United States. The company mainly manufactures the syrup concentrated which is then shipped to the other companies such as the bottler and franchise companies, and it is mixed with other ingredients to produce the drinks which are presented in the market. Coca-Cola companies supply more than 200 countries with drinks with a range of up to 500 brands. Every day, the company serves approximately 1.6 billion customers globally. The company is hence exploring new markets by improving the existing products and establishing new products. The products which are produced by Coca Cola are distributed to the consumers through bottlers, distributors and fountain wholesalers. There are six groups through which the company’s drinks are operated. The groups include; Latin America, the North America, the Greater Europe, Africa, the Middle East, the Far East as well as Minute Maid Company. The company has continually increased the customers and also expanded in China, East of Europe, India, and Russia. The popularity of the company is an indicator of the satisfaction that the company is offering its billions of the customers all over the world. However, the company has faced a shortcoming in the efforts to establish sustainable distribution patterns.
The customers who are targeted by the company are not limited to their areas, gender or ages. The company targets the whole population exclusively. The company also has competitors, the greatest rival being the Pepsi Company, especially in the Pakistan Market. The organization also has well-defined marketing objectives including; increasing the ingestion of the beverages, make the commodity available universally by distributing in many stores as possible in the world. The company is also aimed at increasing the linkage of the brand to the fast food firms which have an impressive image in the world. The company also looks forward to the production of a drink which meets the safety and health standards especially through producing drinks with low-calorie levels. Additionally, the company has a well-established slogan which helps as a marketing strategy and offers the workers enough training to make them competent to produce the best drink worldwide (Isidore, 2016).
4. Position Strategy
Brand positioning in Coca-Cola Company is done strategically making the beverages to stand out among other similar beverages from different organizations. The strategy makes the Coca-Cola drinks competent in the market due to the influence on the minds of the customers. Brand positioning in 2014 includes cultural values such as friends, family, and joy which are everlasting in the lives of the consumers. Another factor includes the high-quality drink and the consistency as well as the thirst quenching effect of the drink. The company is continually including various drivers in their positioning including the packaging, the prices, the promotion, the distribution as well as the competition which faces the organization. Coca-Cola campaign started at 2014 where the brand was aimed at creating happiness to the customers and enhance social relationships through the share-a-coke campaign. The branded content during the Coca-Cola campaign included promotions such as the Coke Studio music campaigns (Bhasin, 2016).
4.1. Target Market
Coca-Cola Company has various market segmentations which include demographic segmentation. The company targets the youth who are aged from 15 years to 25 years. The company also targets the customers who are above the age of 40 to include the largest part of the world population in the consumption of the drinks. The varieties of drinks which are produced in the firm are meant for both the male and female consumers without discrimination. Additionally, the demographic segmentation includes the level of income earned by the customers. The customers whose income is low can afford the drinks which are packaged in the returnable containers. On the other hand, the customers who earn a higher income can afford the Coca-Cola drinks which are packed in cans and tins (The Coca-Cola Company, 2016).
4.1.1. Psychographic Segmentation
Most customers in the current world are conscious of the beverages they take and more importantly, the brand. These people often defend their status quo by drinking Coca-Cola drinks. Education is yet another factor which influences the consumption of the beverages. Educated customers will tend to check the GI level of the beverages as well other factors. However, the advertisement message used in Coca-Cola advertisement makes it popular in the world, and most people whether literate or illiterate do not hesitate to consume the drink whatsoever. Additionally, the Coca-Cola drinks are designed in such a way that they satisfy the needs of the customers. The company hence provides different drinks to satisfy different types of customers. In the recent past, people have developed consciousness about their health and are hence watching everything they consume including the beverages. Coca-Cola Company has included the group of people in the marketing strategy whereby, the company produces Coca-Cola zero and diet Coca-Cola drinks. The company has an excellent reputation and observes the ethical code, and hence, the customers are attracted to the company’s products due to its social responsibilities. However, in all its products, the firm primarily targets the middle-class customers.
4.2. Competitor Analysis
The major competitor of Coca Cola Company is the Pepsi Company. The two companies are always in a stiff competition across all the continents in the world. Pepsi is the Co dominant company in the market of the United States while Coca Cola sales are high all over the world. The competition has pushed Coca Cola Company to come up with new ways to which the firm will counter the competition. The company has initiated new variants of non-carbonated drinks as well as the carbonated beverages. Most of the strong points in the marketing strategy as well as in the internal environment of Pepsi are closely related to those of Coca-Cola Company. The weaknesses are also almost the same, and thus the companies face almost similar challenges in the market hence the stiff competition in the distribution and consumption of their products. Pepsi has been challenged by the health authorities about the content of its products. This line of weakness has generated an opportunity for Coca Cola which provides exclusive beverages which integrate both the health of the consumers as well as the environmental issues. More so, Pepsi products are majorly aimed at satisfying the young people only while the Coca Cola products are enjoyed by all the demographics including the young and the old (Jurevicius, 2017).
4.3. Points of Parity and Points of Differentiation
The point of parity in Coca Cola Company is characterized by the existence of two soft drinks which are famous all over the world. The point of difference, on the other hand, is where the Pepsi; closest competitor of Coca Cola is cool and meant to refresh the youths. The Coca Cola brand, on the other hand, is emotional and fit for consumption by all demographics (Chandio, 2014).
5. Building Brand Equity
Coca-Cola is one of the most recognized brands in the world since its establishment where the brand portfolio is well positioned to meet the preferences of the customers. The company also continues to explore many promising drinks to different groups of consumers. The brand portfolio contains the carbonated beverages, juices, iso-tonics, orangeades, tea and coffee among other products.
5.1. Brand Awareness
The brand is associated with a wide variety of activities which bring joy to the customer’s live hence attracting more and more customers towards the products. For instance, the brand is associated with family, innovation, flexibility, and freedom. The brand is also associated with events such as Olympics and the celebrations which are initiated by the coke culture. Furthermore, the Coca-Cola brand is associated with all the demographics including the youth and the elderly. The brand awareness of Coca-Cola beverages has also been enhanced by the packaging which makes the beverages stand out in the supermarkets, the retail shops and in the wholesalers’ stores.
5.2. Selection and Justification of Brand Elements
Choosing the brand elements in Coca-Cola Company is an essential task which is anchored on some considerations. The elements should be memorable therefore should be formulated in such a way that they are easily recognized and recalled by the customers. The elements should also be rational and hence meaningful regarding describing the brand and persuading the customers to buy the products by Coca Cola Company. The elements should also be likable such that they consider the aesthetics and with rich verbal as well as visual images. The elements should also display fun of consuming Coca Cola drinks. Therefore, the elements should be interesting enough. More so, should also be adaptable thereby flexible and easy to update. The brand elements should be transferable and therefore acceptable to different cultures, and the elements should also be diverse to fit within as well as across product categories. While selecting the brand element, it is essential to consider the protectable aspect ensuring that they comply with the law and they are efficiently competitive (Acikay, 2014).
5.3. Brand Image
Coca Cola image is among the few most recognized images in the world. The popularity is drawing the marketers to promote their brand while linking their products with the Coca Cola image. John Pemberton who was the founder of Coca Cola Company distributed clocks and other items such as calendars containing the Coca Cola logo alongside the product he distributed to the customers. Since the times of Pemberton, the Coca Cola image has been circulating all over the world making it the most popular image in the world. The image was taken over by the bottling partners who made it conspicuous on the bottles. The Coca Cola is considered as the classic pieces of Americana. The brand represents the history of America and most importantly the brand is a representative of the entrepreneurialism since the twentieth century (Zurn, 2017).
5.4. Brand Association
The meanings which are derived from the selected brand by the customers play a major role in the promotion of the brand. The implicit and the explicit information should be an attributing factor to the association which establishes the positioning. There is also need to include deeper meanings but not just the category. For instance, the brand should involve emotions to captivate the attention of the customers. Performance is also efficient in reinforcing the brand association. The firm should also involve difficult names to re-positioning such that other competitor organizations are not in a position to copy the strategy (Acikay, 2014).
6. Communication Strategy
The communication strategy adopted in Coca Cola is majorly through the promotion of beverages. Promotion of the beverages is done in a wide range of ways. For example, promotion in Coca-Cola is done through acquiring shelves in the large stores in different parts of the world. When the shelves for instance in a supermarket are bought by the firm, the display of the Coca-Cola products is enhanced and the commodities are distinctly presented to draw the attention of the customers. The company also promotes their products using the eye-catching position where the customers can easily identify the products in most cases the drinks are presented in the freezers in the entry of the supermarkets and other shops. Coca-Cola Company is also known to promote their products through college and universities’ sports. The sponsorship of the extra-curricular activities earns the organization a great market share as the spectators and the players consume the drinks. The Company also gains a great reputation through sponsorship as it is a form of social responsibility. During the promotion of Coca-Cola beverages, the company utilizes under the crown strategy. The company hence offers prizes such as watches, t-shirts, and bicycles. The promotion strategy is mostly meant for children to attract them to the Coca-Cola beverages. Trade promotion is also used in the marketing of the beverages by Coca-Cola. The company makes deals with the shopkeepers for exclusive sales where cash incentives, free samples as well as free bottles are offered to these shopkeepers. The company is interested in the shopkeepers since they break the language barrier among between Coca-Cola Company and its customers in different parts of the world.
6.1. Message and Creative Strategy
“Taste the Feeling” is the trademark for Coca Cola and it sells the company globally. The message and the creative strategy are meant to make the customers feel good about the coca cola drinks. The different range of products by the firm suits the needs of different customers especially health, lifestyle and taste (Moye, 2016).
6.2. Media Mix
Media has been effective in disseminating information about the Coca Cola brand to the consumers especially through advertisement and promotion as discussed in the above paragraph. The advertisements of Coca Cola brand is done through published media as well as through aural and visual media. The published media involved in the advertisement and promotion of the Coca Cola brand includes the newspaper, trade, magazines and also the professional platforms such as the use of internet in the social media. The aural and the visual media, on the other hand, includes the cinema, direct mailing, radio, television, billboards, and posters. However, there are different forms of media which are used specifically and mostly for the promotion of the Coca- Cola products.
Newspapers have been used over the centuries in the advertisement of the Coca Cola Company’s products. The company has been advertised since the early stages of development through the newspaper and it still does. Magazines have also been used widely in the advertisement of the Coca Cola brand globally. The factors influencing the magazine advertisement include the choice of the magazine and the target population due to the readability. The magazines are of the highest profit generating media to the company and hence it is a strong market initiative.
The Internet through social media platforms has also stood out as the most trusted advertisement strategy in the market. The online advertisement is essential especially with the advancement in technology which employs the use of the pop-up ads, use of banners and on-site sponsorships. Different websites are globally committed at the advertisement of the Coca Cola products. The Coca Cola fans and the website users interact through the websites sharing their stories about the Coca-Cola products.
Television is efficiently used in the advertisement of the Coca Cola Company products and the company invests quite a huge amount of money in the advertisement. The advertisement varies from one region to the other with the respect of culture of the land. The diversity is embraced to respect the culture of different countries and to prevent misunderstanding of other people’s culture.
Cinema advertisement is also efficiently done through two different ways. For instance, cinema advertisement can be carried out through video advertisement in movies platforms before the movie starts. In movies, the Coca-Cola products are usually placed hence the products feature in different parts of the movie. The leading actors of the movie usually drink the Coca Cola products hence increasing its popularity. However, there are some cinemas which have led to misinterpretation of the role of the coca cola drinks. For instance, the leading actor in the movie, Falling Down, at some point places a Coca Cola can on his head and it is presumed that it heals his headache. The act is a misleading advertisement as coca cola products do not act as headache medicine.
Radio advertisement is efficient in increasing the level of the brand awareness as well as the customer loyalty. However, the adverts done through radio are usually very short and last for few seconds. Posters and billboards, on the other hand, are efficient in the promotion of the brand. The billboards are usually positioned in cities where they can easily be viewed. Billboards are also present in some rural areas (Dudovskiy, 2014).
7. Measuring Brand Equity
Brand equity measurement is not always easy to determine as it majorly depends on the customer’s perspective about the products. Coca Cola Company however has relatively high brand equity as it can draw a large population of fans and maintain the current customers through the satisfaction of the goods. The customers are always attracted to the products through word of mouth from the customer as well as through successful market (Feloni, 2015).
The difficulty in the determination of the brand quality is rooted at the numerous types of products produced by the firm. Coca Cola also competes with itself through numerous brands such as Fanta, Dasani Water, and Soy Products among others. More so, when the customers dislike one product from Coca Cola Company, they may like a different product of the same company. Some people may also not be aware that the drinks they substitute the Coca Cola products with are also produced by the firm (Peterson, 2008).
Increasing marketing effectiveness is important in Coca-Cola Company and therefore, there are strategies which should be included in the marketing plan of the international beverage company. One of the most significant strategies that the firm should adopt is the specific targeting. The firm has been targeting the general population for their commodities. There is a need to be more specific on the beverages. For instance, they should produce beverages for the children, youth and the elderly differently.
Secondly, the firm should focus on the benefit of marketing strategies. There is hence a need for the firm to invest in researching about the new trends in the market. The research will make the company resilient to the fluctuations in the market hence conquering the competitors by attracting more customers. Thirdly, the company should embrace good timing where the relevant messages are sent to the audience at the right time. For instance, communicating about price rise of commodities in advance is effective in ensuring that the expectations of the customers are not compromised.
The brand development and marketing of Coca-Cola Company should involve waste reduction and environmental conservation. There has been a growing trend of environmental awareness among the public and the customers are hence attracted to commodities from organizations which are environmentally conscious. Including the ways through which the products leads to sustainability is a great marketing plan to adopt in the firm.
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