Coca-Cola Company's Marketing Strategy
Table of contents
EXECUTIVE SUMMARY
INTRODUCTION2
OVERVIEW OF COCA-COLA
A COMPARATIVE ANALYSIS OF THE BUSINESS MODEL OF COCA-COLA AND PEPSICO
FACTORS AFFECTING CUSTOMERS DECISION MAKING
SEGMENTATION, TARGETING and POSITIONING (STP)
THE MARKETING MODEL OF COCA-COLA INCORPORATION
SALES AND EXPANSION EFFORTS OF THE COCA-COLA COMPANY AND THE STP MODEL
RECOMMENDATION
CONCLUSION
REFERENCES
EXECUTIVE SUMMARY
Companies are obliged to come up with new strategies to stand out in order to draw customers due to the standardization of high-quality products and the lack of significant product differences in a market characterized by fierce competition. Positioning is one of these strategies. To get customers to view a product the way a corporation wants them to, positioning has grown in importance in the modern day. Positioning has evolved to refer to the process through which marketers attempt to build an image or identity for their product, brand, or organization in the minds of their target market. In every marketing plan, brand positioning is central.
Numerous changes in the corporate sector have forced firms to plan their marketing strategies. One of the strategies for surviving the competition and succeeding, in the end, is the application of good marketing models. A marketing model is essential to the creation and application of marketing strategies in diverse organizations. It also offers a framework that enables businesses to assess their competitive position and set long-term development plans.
I will look into the Coca-Cola Company's marketing strategy. Since its founding in 1886, the international beverage company has grown to become one of the most recognizable brands in the world because of its marketing strategy. The study was carried out using a mixed-methods technique. The acquired data were also analyzed using a cross-sectional descriptive approach. The information for the study came primarily from data archives, databases, and research journals. The survey looked up more details about the business on its website and in its publications.
The analysis came to the conclusion that the Coca-Cola Company's sales and expansion efforts heavily rely on the STP model. The company's sales and earnings may suffer as a result of the marketing models' time-consuming, costly, and marginalization of other segments of the population difficulties.
INTRODUCTION
Most people refer to Coca-cola as the "soft drink" of the world (Bell 2004). When Dr. John S. Pemberton started charging his patients five cents a bottle in 1886, the company began selling its beverage. Since then, the company has grown to be the top soft goods maker in the world, employing over 700,000 people across more than 500 brands. The company's campaign has been so successful that it has cemented its reputation as one of the icons of American culture. Coca-Cola partners with numerous bottlers worldwide as it continues to develop internationally to go over all the processes of each product.
The marketing strategy that normally directs Coca-Cola to advertise its products is what gives the corporation its success. Most businesses categorize their marketing tactics into many groups. Similar to Coca-Cola, the corporation was able to efficiently serve its target clients because to market segmentation, targeting, and positioning.
All merchants must master the art of marketing in order to entice customers. Influencing the purchasing power and clientele of clients and customers requires a subtle approach. To manage the activities in accordance with the needs, desires, and specifications of the consumers, strategic planning is necessary (Fernandes and Pinho, 2016). The idea that marketers divide the market into different segments and positions arose because they could not please everyone in the market (Kotler and Keller, 2015).
A marketing model is a logical instrument that organizations use to structure and communicate a strategy (Durand, 2018). Business entities formulate marketing models objectifying to develop a long-term, future-focused approach seeking to sustainably outdo its rivals in the market ( S. S. Andaleeb, 2016).The program is crucial in guaranteeing that businesses grow their sales in the fiercely competitive industry that is always changing. The methodology also gives enterprises the ability to identify and meet the wants and expectations of their target market (Terech, 2018). The organization's short- and long-term goals, market research, and a SWOT analysis are crucial factors to take into account while developing a marketing model (Durand, 2018).
Excellent marketing strategies have helped successful business organizations succeed. One of the biggest and most successful beverage producers on the international market is Coca-Cola Company. In 1986, Dr. Pemberton established the beverage conglomerate after developing a carbonated syrup for testing on humans (Coca-Cola, n.d), Since opening its first bottling facility in 1894 (Coca-Cola, n.d.) the Coca-Cola Company has prioritized growth and raising its profit margins. PepsiCo is its main rival in the international beverage sector. Recently, there has been a shift in behavior where the majority of investors have closely examined the company's marketing strategy. The purpose of this report is to determine how Coca- Cola's marketing strategy affected corporate growth and sales. The analysis also provides objectivity in recommending model modifications to address potential issues in the current and future market and competition.
COMPANY’S OVERVIEW
The Coca-Cola Company started out as a one-man operation and over the course of the previous 110 years has expanded to become one of the biggest businesses in the entire globe. Coca-Cola was created by Atlanta pharmacist Dr. John Pemberton. On May 8, 1886, he created the recipe in a three-legged brass kettle in his backyard. . To create the amazing beverage, he combined lime, cinnamon, coca leaves, and the seeds of a Brazilian plant. Coca-Cola had its début as a five-cent non-carbonated beverage at Jacob's Pharmacy, the biggest pharmacy in Atlanta. Afterward, carbonated water was added to the syrup to create the Coca-Cola that is familiar to us today.
Coca-Cola products outsold their closest competition by more than two to one in the middle of the 1970s, when more than half of its sales were outside of the United States. Coca-Cola products make up one in every two colas and one in every three soft beverages. The most well-known brand in the world is sold to 5.8 billion individuals in around 140 countries and 80 languages. The biggest soft drink company in the world is Coca-Cola because of this. Coca-Cola has supported the Olympics as a sponsor for more than 65 years. Radio and television commercials for Coca-Cola first appeared in the 1930s and 1950, respectively. Currently, Coca-Cola is promoted on more than 500 television channels worldwide. Coke has continually fulfilled the straightforward guarantee of "Coca-Cola" for more than a century. Coke has been able to maintain its long history of expansion because of this.
II. A COMPETITIVE ANALYSIS OF COCA-COLA AND PEPSICO
The ongoing struggle between Coca-Cola and Pepsi to dominate the soft drink market is referred to as the "cola wars," and it dates back to the 1950s, when Pepsi's corporate mission changed to "Beat Coke" (Yoffie, 2004). Since then, they have fought for market share and sales both locally and internationally, with a huge sum on the line: the domestic soft drink sector produces over 10.1 billion cases of soft drinks each year, with a total U.S. retail value of $65 billion. The "cola" varieties account for about 70% of that yearly dollar total, with the lemon/lime, citrus, pepper, root beer, and orange flavored soft drinks coming in far behind (Yoffie, 2004). Despite the stakes, Coca-Cola and Pepsi-Cola engage in daily battles known as "cola wars" on a number of fronts.
Coca-Cola has grown dramatically since its founding in the late 1800s, going from nine glasses per day to around 4.5 billion cases annually ("Top 10," 2004). In today's world, Coca-Cola has approximately 400 brands available in more than 200 nations, and it holds the largest market share (44%) in the soft drink industry ("Top 10," 2004). Through R&D and acquisitions, the Pepsi-Cola corporation has widened its range of products over the years to include, among other things, Diet Pepsi, Mountain Dew, Mug Root Beer, Slice, Sierra Mist, Lipton, Aquafina, and Starbucks Frappachino. By purchasing Gatorade from Ouaker Oats in December 2000, PepsiCola further demonstrated its dedication to diversifying its product line and strengthening its sponsorship ties with the sports business, where Gatorade was already a key participant.
III. FACTORS THAT AFFECTS CUSTOMERS DECISION-MAKING
Beliefs and attitudes
The way that consumers think and act greatly influences their purchasing decisions. The faith that customers have in brands or products is referred to as a belief. Customers' formation of strong opinions about a product is of interest to marketers because these opinions shape the perceptions of a brand and a product that influence purchasing decisions.
A person's attitude refers to their likes and dislikes towards a particular object. It is also claimed that attitude is a judgment. It's challenging to modify a mindset once it's formed, whether it's favorable or bad. Consumers now have a positive opinion of Coke. They are attempting to modify the unfavorable attitudes of their clients through their advertisements by making them happy. Similar to the advertisement, Coca-Cola makes kids happy by offering them free soda, which makes them change their negative mindset into a positive one. (http://www.youtube.com/watch?v=M0D3jKLz6sA).
Social Factors
Opinion leaders, a person's family, group behavior, socioeconomic status, and culture all have an impact on the user's wants, learning, motivations, and other aspects. Each of
