...Marketing Strategies of Coca-Cola Conducing to Success University of Victoria Marketing Strategies of Coca-Cola Conducing to Success In the past few decades, a great number of new corporations have emerged and became the main supporting force in current economic construction. In fact, few centuries ago, enterprises –like Coca-Cola– are still the mainstays of economy, and such enterprises have accumulated lots of experiences and lessons that junior corporations need to learn from. According to American “Wealth” magazine report, the top 500 companies around the world have the average life of 40 to 42 years; only 2% of enterprises survive to 50 years (Wealth Magazine quoted Mao, 2009). Moreover, Leon Stafford pointed out that the Coca-Cola Company had beaten the Apple, IBM, and Google to the top for 12 years (2011 ( need a citation here, missing the source name). Therefore, the Coca-Cola Company propels not economists but green hands to study its strategies. In “Recipe for Coke? One More to Add to the File,” Brown and Severson (2011) said that the recipe for Coca-Cola had always been an interest for many corporations, but none have been capable of replicating the taste of Coca-Cola. I used this information to explain that the Coca-Cola Company took advantage of consumers’ strong curiosity, stimulating them to buy the good. In “An Internalization Approach to Joint Ventures: Coca-Cola in China,” Mok and Dai (2002) introduced internalization theory to explain the entry mode...
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...Chapter Eight Case Study - Coke Zero Coke Zero Coca Cola has been the leader in the soft drink market for decades, consistently besting their nearest competitor, Pepsi. The struggle for the top spot has been on-going for over one hundred years, and at times has been fairly interesting. Both companies have been trying new strategies, flavors; can designs and even recipe changes in order to gain market share, niche competitive advantage as well as a sustainable competitive advantage. (Lamb, Hair Jr., & McDaniel, 2013, p. 26) Both companies constantly change their products and their marketing techniques in order to secure an advantage over one another. Coca Cola over the years has used common good business practices in order to evaluate their business, so they would know which direction to take it, next. Sometimes their choices were effective, other times they were not. A Coca-Cola marketing situation comes to mind going back to 1985, when seemingly out of the blue, Coke changed their formula. The onslaught of public outcry then began, forcing Coca Cola to re-think their strategy and into damage control mode. It was either a brilliant strategy designed to be a publicity stunt, or one of the worse blunders ever in corporate America. The answer is still not clear to this day, however the results were interesting and have been fodder for Marketing classes ever since. News about the “New Coke” dominated the airwaves for weeks on end, and people rushed out to try it. Most did...
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...DEVELOP ORGANISATIONAL MARKETING OBJECTIVES 1. Evaluate how effective Coca-Cola has been in their marketing strategies in terms of product positioning in regard to their products and services Who/How/Where Coca-Cola positions themselves: Coca-Cola is one of the most widely used soft drink in the world. The company has very efficient and extensive distribution system in the world. There is a great variety of brands offered by Coca-Cola throughout the world like Diet coke, sprite, Fanta, Rc cola, Minute made etc. You can find the Coca-Cola soft drinks anywhere in every country of the world. Advertisements for Coca Cola started on the radio in the 1930s and on the television in 1950. Currently Coca-Cola is advertised on over five hundred TV channels around the world including Viral and Outdoor media. Coca-Cola has positioned themselves too market toward a certain age group, this age group is youths from 15-25 but they also have a unique way of marketing which also reached the 40+ audience. Targeting youths, they base their strategies on entertainment and for the older generation their marketing strategies are mainly about the family drink, which is low cost and convenient. Coca-Cola’s’ brand personality reflects the positioning of its brand. The process of positioning a brand or product is a complex task and must be done over time using all the elements of the marketing mix. Positioning is in the mind of their consumers and can be described as how the product is...
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...In the “Cola Wars Continue: Coke and Pepsi in 2010” the history of Carbonated Soft Drinks (CSD) and its development in modern society illustrates how these two companies advance and compete within an oligopoly market. One of the approaches used in oligopolies is the Game Theory Approach. The basic elements of game theory are (1) the players, (2) the strategies available for each, and (3) the payoff each receives. There are different “battlefields” on which Coke and Pepsi compete: products, pricing, and marketing. Product: * Launch of Diet products - Pepsi launched Diet Pepsi in 1964 while Coke launched Diet Coke in 1982 * Launched new varieties, flavors and acquisition of non-soda products - Pepsi introduced a variety of non-carbonated drinks; Coke responded by acquiring some non-carbonated products. * Use of high fructose syrup instead of sugar (cut cost) - Coke began using high-fructose corn syrup in 1980, Pepsi followed three years later. Pricing: * World War II - Coke made sure all soldiers got coke for only five cents, with government exemptions from wartime sugar rationing gave Coke the upper hand and allowed them to have a dominant strategy; Pepsi responded with the best strategy they could, increasing their bottle size to 12 ounce bottle “twice as much for a nickel too” Marketing: * International markets - Both secured contracts to be sole providers to specific countries; both companies plan to invest $2 billion in China to build up their market...
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...is the top soft drink company in the world and aiming to be a total beverage company. The original coke has been the company’s bestselling product for decades. Coke’s environment had changed couple of times in the past few decades. The major change was when Coke outsourced its bottler system in 1986. The company concentrated on the production of the concentrate and marketing strategies. The production and distribution of the product was left to independent bottlers. The second major environment shift was when the company executed the new policy “think local, act local”. This lead to a decentralization of the company’s management, strategy making and marketing activities to shift from Atlanta to rest of the globe. One of the success strategies of Coca-Cola Company under the leadership of CEO Roberto Goizueta followed by Douglas Ivester was the creation of independent bottler system. A global expansion was needed for growth and it required an enormous amount of capital. In order to achieve this task Coca-Cola sold its in-house bottlers and outsourced the bottler system to independent companies all over the world. Another part of the strategy was to integrate the bottler units into one single independent unit called CCE. Also Coke picked the bottler companies based on their strong management, capital and potential for future expansion. The main strength of this strategy was that Coke was able to raise a huge capital by having independent bottlers across the globe and achieve a global...
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...Marketing decisions are very important to the success of any firm. Today marketing has many dimensions. Coca Cola and Pepsi Cola Companies have chosen to be socially conscious through their marketing efforts to improve its positive effects on society and reduce it negative effects through the way they manage brands, marketing strategy, positioning strategies and how they market to their consumers while striving for prosperity. How Coca Cola and Pepsi Cola Company does advances and manages its brand? According to Ahmet, C Bozer, president of the Coca-Cola Company’s Eurasia and Africa Group, states in the article, “How Coca-Cola Manages 90 Emerging Markets” that Coca Cola advances and manages its brand by finding the right mix. Coca Cola is a global company, therefore, it is important the brand is relevant locally also. To do this is to treat each country differently, while keeping and communicating the same message and brand architecture (www.coca cola.com). Pepsi Cola’s plan for how the company advances and manages its brand, is similar to Coca Cola, in that Pepsi Cola is also global and maintaining relevance locally and globally in products that appeal to local tastes and needs, and also working with local supply chain and encouraging people to live balance and healthy lives (www.Pepsi Cola.com). Coca Cola and Pepsi Cola Company marketing strategy In reading the 60 marketer, Coke vs. Pepsi: Why Coke is a More Valuable Brand than Pepsi, the founder, Jamie Turner states...
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...Marketing Plan: Coca-Cola in 2015 Matt Curd Matt Curd Page 1 Marketing Plan Purpose: In brief the purpose is to market a new innovative beverage packaging for Coca-Cola. The packaging has been designed around the brief ‘consider the creation of a new concept form of beverage packaging container for 2015.’ The Coca-Cola Company is one of the largest manufacturers, distributors and marketers of nonalcoholic beverage concentrates and syrups in the world. Coca-Cola's headquarters are in Atlanta, Georgia, in America. It is best known for its flagship product, Coca-Cola, and is one of the largest corporations in the United States. Today, Coca-Cola is an internationally recognized soft drinks company with ambitious plans to further grow the brand. The company owns the majority of the soft drinks available in coolers and in vending machines in the western world. Some of these brands include, Coca-Cola and sub brands1, Dr Pepper, Fanta, Sprite, Oasis and PowerAde. A full list of Coca-Colas affiliated brands can be found on their corporate website2. The 2005 Annual Report states the company sells beverage products in more than 312 countries or territories.3 The international presence of Coca-Cola is phenomenal and its logo, advertising and colours are among the most recognized in the world. Mission: Taken from thecoca-colacompany.com Everything we do is inspired by our enduring mission: • • • To Refresh the World... in body, mind, and spirit. To Inspire...
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...drink market share – soft drink brands 3.3 Marketing Channels 3.4 Porter’s five forces 4 5 4 2 2 2 2 4 Competitive / corporate strategies of Coke and Pepsi 5 SWOT Analysis 6 Questions 6.1 How has the competition between Coke and Pepsi affected the industry’s profit? 6.2 If it has been such a profitable industry, why have so few firms successfully entered this business over the last century? What are the barriers? Why have Coke and been so successful in launching their products? 6.3 Why, historically, has the soft drink industry been so profitable? 6.4 Compare the economics of the concentrate business to that of the bottling business: Why is the profitability so different? 6.5 How can Coke and Pepsi sustain their profits in the wake of flattening demand and the growing popularity of non-CSDs? 7 9 11 Exam Case Study Cola Wars Continue: Coke and Pepsi in 2010 1 Overview (Power Point Page (PPP) 2) For more than a century, Coke and Pepsi compete for market share within the world’s beverage market. The most intense battles were fought over the $74 billion carbonated soft drink (CSD) industry in the United States that lasted until the mid-1990s. Coke’s and Pepsi’s revenues grow annually, as the worldwide CSD consumption rose steadily by an average of 3% per year. In the early 2000s, however, domestic CSD consumption started to decline in consequence of the evolving linkage between CSDs and health issues such as obesity. Coke and Pepsi faced new challenges regarding...
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...…………………………………………………………10 INTRODUCTION Over the years Coke and Pepsi managed their rivalry in the carbonated soft drinks (CSD) industry by following some of the tactics identified below. Both companies came up on the market with the same product coca-cola, two different recipes. Coca-Cola was discovered in 1886 in Atlanta Georgia, by pharmacist John Pemberton, while Pepsi-Cola was formulated 7 years later, in New Bern, North Carolina, by pharmacist Caleb Bradham. Since then the two giants, Coke and Pepsi are on a continuous “battle without blood” over the $74 billion CDS industry in the United States. One of the first tactics identified is that Coke first introduced its product in grocery stores and other channels through open-top coolers. Also, they developed automatic fountain dispensers and introduced vending machines. Pepsi had a rough start, but they were willing to achieve. In this way after bankruptcies in 1923 and again in 1932, they came back and the business started to pick up. Their first move was to price their 12-oz container to a nickel, same as Coke would charge for a 6.5-oz. After that Pepsi started focusing more on take-home sales to target family consumption. With an aggressive marketing campaign, called “Pepsi Generation” Pepsi targeted the young and “young at heart. Not only that, but Pepsi put a special accent on quality by working to modernize their plants and the store delivery. In the 1960s, both Coke and Pepsi experimented with cola and non-cola flavors...
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...Cola Wars Continue: Coke and Pepsi in 2010 Table of Contents 1 Overview 2 General environmental analysis 3 Industry Analysis 3.1 Industry Structure - U.S. soft drink market share of concentrate producers - Suppliers within the carbonated soft drink industry 3.2 Market Structure - U.S. Liquid Consumption Trend (gallons/capita) - U.S. non-alcoholic refreshment beverage volume 2009 - U.S. soft drink market share – soft drink brands 3.3 Marketing Channels 3.4 Porter’s five forces 4 5 4 2 2 2 2 4 Competitive / corporate strategies of Coke and Pepsi 5 SWOT Analysis 6 Questions 6.1 How has the competition between Coke and Pepsi affected the industry’s profit? 6.2 If it has been such a profitable industry, why have so few firms successfully entered this business over the last century? What are the barriers? Why have Coke and been so successful in launching their products? 6.3 Why, historically, has the soft drink industry been so profitable? 6.4 Compare the economics of the concentrate business to that of the bottling business: Why is the profitability so different? 6.5 How can Coke and Pepsi sustain their profits in the wake of flattening demand and the growing popularity of non-CSDs? 7 9 11 Exam Case Study Cola Wars Continue: Coke and Pepsi in 2010 1 Overview (Power Point Page (PPP) 2) For more than a century, Coke and Pepsi compete for market share within the world’s beverage market. The most intense battles were fought over the $74 billion carbonated soft drink (CSD)...
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...INNOVATION: THE COCA-COLA CHALLENGE Abstract The Coca-Cola Company fully understands the meaning of innovation as evidenced by their ever-growing brand portfolio and internal processes. In this paper, I discuss Coke's three cola strategy as both a product and service innovation. Such strategy was implemented to widen the market presence of Classic Coke, Diet Coke and Coke Zero. The three cola strategy was developed initially for the purpose of rekindling the growth of the sparkling beverages. The strategy is basically a campaign to boost public confidence wherein an array of marketing, advertising and promotion was implemented. The three cola strategy was backed by Research Council towards the development of consumer-centered innovation. Introduction Overview of the Organization The Coca-Cola Company Founded by Asa Griggs Candler in 1882 in Atlanta, Georgia, a company that fully understands the importance of innovation in business is the Coca-Cola Company. Coca-Cola, or simply Coke, chose to concentrate their operation on production of soft drink syrup while maintaining an intimate relationship with its bottlers and distributors at the retail level. Basically, the company is engaged into blending raw material ingredients (product planning), packaging in plastic canisters (market research) and shipping to bottlers (advertising). In 1886, John Stith Pemberton invented the company’s flagship product Coca-Cola. Today, Coca-Cola Company offers more...
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...Mary Marketing Management – MGT704 Instructor: Marc Lyncheski April 14, 2012 There are certain companies that through the use of exceptional marketing programs and well as aggressive business strategies have become recognized the world around. Many of these are part of our everyday life and if not then we see them every day in our comings and goings. Two of these world-wide brands that many of us know are also extremely similar in both product as well as marketing strategy. Those two brands are The Coca-Cola Company and PepsiCo, Inc. On May 8, 1886, a pharmacist named Dr. John Pemberton carried a jug of Coca-Cola syrup to Jacobs’ Pharmacy in downtown Atlanta, where it was mixed with carbonated water and sold for five cents a glass. (Our Heritage, 2012) Three years later in the summer of 1898 a young pharmacist named Caleb Bradham began experimenting with combinations of spices, juices and syrups, trying to create a refreshing new drink to serve to his customers. His success came in the form of the beverage now known around the world as Pepsi-Cola. (Pepsi Legacy, 2005) And from that day forward the rivalry between Coca-Cola and Pepsi would become legendary. These two beverage companies are competing for the top spot in a massive global market. The cola and carbonated beverage industry reaches to nearly every corner of the planet, and the vast majority of the market share belongs to the two giants Coke and Pepsi...
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...Marketing Plan: Coca-Cola in 2015 Matt Curd Matt Curd Page 1 Marketing Plan Purpose: In brief the purpose is to market a new innovative beverage packaging for Coca-Cola. The packaging has been designed around the brief ‘consider the creation of a new concept form of beverage packaging container for 2015.’ The Coca-Cola Company is one of the largest manufacturers, distributors and marketers of nonalcoholic beverage concentrates and syrups in the world. Coca-Cola's headquarters are in Atlanta, Georgia, in America. It is best known for its flagship product, Coca-Cola, and is one of the largest corporations in the United States. Today, Coca-Cola is an internationally recognized soft drinks company with ambitious plans to further grow the brand. The company owns the majority of the soft drinks available in coolers and in vending machines in the western world. Some of these brands include, Coca-Cola and sub brands1, Dr Pepper, Fanta, Sprite, Oasis and PowerAde. A full list of Coca-Colas affiliated brands can be found on their corporate website2. The 2005 Annual Report states the company sells beverage products in more than 312 countries or territories.3 The international presence of Coca-Cola is phenomenal and its logo, advertising and colours are among the most recognized in the world. Mission: Taken from thecoca-colacompany.com Everything we do is inspired by our enduring mission: • • • To Refresh the World... in body, mind, and spirit. To Inspire Moments of...
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...local » T. Levitt 1) What is the primary basis for Coke’s past international marketing success? Is it only advertising? The Coca Cola Company expanded slowly abroad in the early 1920’s. Coca Cola presented the beverage with different logos which are culturally symbolic. However the true growth of Coca Cola beverages in the world had been possible during the World War II. Coca Cola Company delivered beverages to the US soldier in Europe and Asia. Marketing: understanding the market Marketing philosophy: A good understanding of customer needs and providing a good offer. Coca Cola: in America is a ritual, you open the fridge and drink a coca cola. Abroad, drink coca cola is to live the American dream. Many will say that it is the level of advertising. But the better answer may be the consistent and effective, locally oriented global marketing, aimed carefully at targeted markets around the globe. Coke and other brands have become leaders in their product categories by understanding consumer motivations and desires and by creating relevant and favorable image associations. Image association: Pavlov theory Cowboy Marlboro Coke Soft drinks Cigarette Pleasant There is nothing fly-by-night in such activities. 2) Given the growing political and economic uncertainty, what changes can Coke make to its global marketing strategy? During the 1990’s, the marketing strategy of Coca Cola Company was described by the phrase “think global, act local”. Coca...
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...Aspects of consumer behavior to emphasize in marketing. Marketing concentrates on several aspects of consumer behavior in order to promote a product or service. A consumer’s motivation is one aspect that Coca-Cola should emphasize to increase product sales. Their motivation, such as a hunger or thirst, will be the deciding factor to drive the consumer to make a purchase. In past advertising campaigns Coca-Cola has aligned the product with thirst quenching or refreshment. This type of marketing will focus on the consumer’s immediate need to remedy their thirst. Not only does Coca-Cola need to emphasize the consumer’s motivation but they must take into consideration the customer’s perception. Perception would be the process by which the customer will select, organize, and interpret the information to act on the motivation (Kotler & Keller, 2012). People are stimulated from the advertisements that will address a current need or that they anticipate. The product advertisement must focus on a remedy of the current yearning that the consumer is experiencing. An advertisement that is focusing on quenching the thirst will address and motive the consumer to purchase the product to remedy their need. Coca-Cola has to not only address a customer’s current need but will need to consider the customer’s selective distortion and selective retention. Selective distortion is a person’s way of associating past experiences or information with a brand or product. Selective retention...
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