Executive summary
It is a notion that forms the cornerstone of a long-term sustainable firm, taking into consideration the long-term benefits and competitiveness in the market, in a nutshell. From the seed of the firm’s value proposition, marketing strategy grows into a notion that enables the company take a step ahead in brand development and profit-making. As a consequence, it has had a dramatic influence on the world’s enterprises, notably in the public-facing sectors of autos, beverages, and so on. Coke, the world’s biggest soft drink business, has been a market aggressor since 1886. As a firm, Coke aspires to disrupt the complete soft drink sector by investigating and expanding into new areas. People’s thoughts can be read no matter where they are in the globe, and this is the foundation of their marketing. This article will explore how Coca-Cola will grow its market i.e. going into new markets and launching new and better goods in the present markets. Coca-Cola started cooperating with a wide variety of culinary businesses that are not only popular in India but around the world. The company’s financial development has been ascribed to these tactics, according to the report. How well-positioned the firm is in compared to its rivals. In order to keep their target audience interested in the items, they alter their tag lines regularly. This insures that the brand is perceived as innovative. They also attempt to foresee future approaches that they may apply and how it would effect their progress in the report. It is a notion that forms the cornerstone of a long-term sustainable firm, taking into consideration the long-term benefits and competitiveness in the market, in a nutshell. From the seed of the firm’s value proposition, marketing strategy grows into a notion that enables the company take a step ahead in brand development and profit-making. As a consequence, it has had a dramatic influence on the world’s enterprises, notably in the public-facing sectors of autos, beverages, and so on. Coke, the world’s biggest soft drink business, has been a market aggressor since 1886. As a firm, Coke aspires to disrupt the complete soft drink sector by investigating and expanding into new areas. People’s thoughts can be read no matter where they are in the globe, and this is the foundation of their marketing. This paper will explore how Coca-Cola will grow its market i.e. going into new markets and launching new and better goods in the present markets. Coca-Cola started cooperating with a wide variety of culinary businesses that are not only popular in India but around the world. The company’s financial development has been ascribed to these tactics, according to the report. How well-positioned the firm is in compared to its rivals. In order to keep their target audience interested in the items, they alter their tag lines regularly. This insures that the brand is perceived as innovative. They also attempt to foresee future approaches that they may apply and how it would affect their progress in the report.
Introduction
Strategic marketing is all about establishing a long-term edge over your rivals. To expand, any business, regardless of size, needs a set of goals. Having these goals in place will help the business to remain viable in an increasingly competitive market while also boosting income…. What a marketing strategy really is is a road map that shows you where you want to go and what you need to do to get there. In addition to helping you achieve your own goals, a successful strategy should also help you satisfy your consumers’ needs and expectations. An effective marketing strategy is built on a foundation of several basic components. Having a clear understanding of the organization’s short- and long-term goals is critical for success. The second stage is to do market research on the target market. Customer acquisition and retention are important to the success of any service-based organization.
A SWOT analysis of the company’s products or services may help the company reflect and evaluate its own strengths and weaknesses. A well-executed marketing plan will benefit both the customer and the business. Thus, the firm will have a distinct edge over its rivals in terms of brand value. Realistic goals may be achieved by using this method. Once the strategy and plans are in place, the firm may work on implementing those tactics in a cost-effective manner. A marketing strategy is used by many successful companies in order to increase profits. Beverages have a significant role in both the local and global economies. An successful marketing strategy is critical in the beverage sector. Coca-Cola is a great example of a company successfully executing a marketing strategy of this kind. Coca-Cola has dominated the soft drink industry for more than a century. As a consequence, soft drink sales are the highest in the world. Coke was invented in 1886 by Atlanta pharmacist Dr. John S. Pemberton, who intended to make a syrup that could be sold at soda fountains. When the syrup was first mixed with carbonated water, it was taken in. When Frank M. Robinson, Dr. Pemberton’s bookkeeper, felt “Coca Cola” would sound excellent in commercials, he came up with the name. In addition, he created the script that is still in use today to produce the trademark.
The majority of Coca Cola was sold to Atlanta entrepreneur Asa G. Chandler after Dr. Pemberton’s death in 1888, while he was still alive. Mr. Chandler is the person who designed the layout of Coca-Coca-Empire Cola’s Cola. Outside of Atlanta, Coca-Cola was available in vending machines. In 1894, Joseph Biedenharn built the first commercial bottling equipment for Coca-Cola, which he sold to the public. Coke-emphasis Cola’s has been on expanding the firm and earning a profit throughout the years since the company was founded. Competition was conducted for a new bottle design before it started creating its own unique design to create a separate market position and prevent duplication. The shape of the present bottles is quite close to the shape of the original bottle. Since its founding in 1886, the firm has nearly 10 times redesigned its logo to better represent the eras and the preferences of its consumers. The bottle’s design has also changed throughout the years, with the slogan changing 50 times. While in 1886 the firm was selling only nine bottles a day, it currently sells 1.9 billion per day. More than nine in 10 people worldwide can identify the red and white Coca-Cola logo.
The market circumstances in each nation have a significant impact on bottle sales across the globe. Income levels and cultural and linguistic differences between people were two of the most influential factors in the marketplace. Several countries have seen a rise or fall in sales as a result of government initiatives. It was difficult to deliver the bottles to remote places because of the many topographical circumstances. Coke was able to get its bottles into every corner of the United States, no matter the obstacles. Both T Krishnakumar and James Quincey are CEOs of the Coca-Cola Company, based in Atlanta, Georgia. Hindustan Coca-Cola Beverages (HCCB) has named Christina Ruggiero CEO[3] as its largest bottling partner in India. There are presently more than 200 nations and five operating zones where Coca-Cola may be purchased worldwide (Asia pacific, Europe, Middle East & Africa, Latin America, and North America). Coke and its bottling partners employ more than 7 lakh people worldwide, making it one of the ten largest private employers on the planet. With a portfolio of 21 billion-dollar brands, Coca-Cola is the dominant force in the industry. The firm offers a wide range of beverages, including sparkling, fruit-based, and coffees. Coca-Cola’s income was $9.702 billion in 2017.
Analysis of the situation
Analysis the market
Both the internal and external corporate environments are examined in the market study. It is the importance of Coca-Cola keeping a close eye on both internal and external components of In business, the internal and external environments, as well as the impacts they each have, will determine whether Coke succeeds or fails as a soft drink brand.
Internal business environment
The effect of the internal business atmosphere is that which is at least somewhat under the company’s control. in the hands of the company Management skills and decent communication networks are the most important factors in a company’s internal atmosphere. Coca-Cola must constantly assess its operations and respond quickly to address any problems that create inefficiencies at any phase of the production and consumption processes if it is going to properly govern and monitor the business environment inside it.
External business environment
An industry’s whole economy may be affected by the external business environment and its impacts. Coca-Cola must keep an eye out for possibilities and challenges that may arise from changes in the external environment. Changes in the economy, shifting consumer values and attitudes, and demographic shifts are all factors that might affect a company’s bottom line. The success of Coca Cola’s goods and the company’s reputation are greatly influenced by patterns and customer response they get.
Global revenue and financial results of the Coca-Cola company from 2009-2019
During the last ten years, both net operating revenue and operating income of The Coca-Cola Company have fluctuated. A company’s total revenue comes from the sale of products and services, but its net income is equal to its revenue minus all of its operating costs. Financial data reached their highest point in 2012, when they totaled 48.02 billion dollars and 10.8 billion dollars, respectively.
SWOT Analysis
All of these factors are referred to as SWOT. General management and marketing settings often use SWOT analysis. An organization’s Strengths and Weaknesses are examined, as are the Opportunities and Threats it faces, as part of the SWOT analysis. This information, together with outside research, is then used to develop a list of potential solutions.
Strengths:
Coke has been a portion of the world’s cultural landscape for a long time. Many individuals have taken to heart the overly romanticized picture of the product that has been presented to the public. There are Coca-Cola t-shirts, caps, and other valuable collectibles emblazoned with the iconic picture. One of Coca-biggest Cola’s assets is its well-known and instantly recognizable logo. A simple, but powerful mark of quality and pleasure, Coca-Cola is consumed more than 685 million times every day throughout the globe” (Allen, 1995). Coca- Cola’s bottling system is also a major asset to the company. In this way, they are able to do business on a worldwide scale while maintaining a local attitude. Independent entrepreneurs who are allowed to sell Coca-Cola products own and run the bottling businesses across the world. Coke’s primary source of income is the selling of concentrate to its bottlers, as it does not control its bottling network wholly.
Weaknesses:
Coke, like every other firm, has weaknesses that must be reduced and managed in order to maximize output and efficiency. When it comes to sales, both in the United States and abroad (Latin American volumes were up 12 percent), Coca-Cola recently acknowledged some “decreases in unit case volumes owing to diminished consumer spending power in Indonesia and Thailand.” In the second quarter of 1998, unit case sales in Japan were down 3%, according to an article in Fortune magazine. However, despite Japan’s small volume, it accounts for three times more earnings than any other country. About 35% of Coke’s capacity comes from Latin America, Southeast Asia, and Japan, yet none of these regions is performing up to expectations. However, the teeth-damaging effects of Coca-Cola need medical attention. Coca-Cola contains sugar, which may lead to health concerns if consumed in large quantities. Drinking Coca-Cola on a regular basis might have negative effects on your health after only a few months.
Opportunities:
Coca-ability Cola’s to compete effectively is directly impacted by consumer awareness of the company’s name and logo. 94 percent of the world’s population is familiar with Coca-brand Cola’s name. Over the last several years, the major goal has been to increase the brand’s visibility. Sales and industry positioning have been impacted by changes in packaging, although the general population has been unaffected by new goods. There are endless chances for expansion across the globe thanks to Coca-bottling Cola’s infrastructure. This approach allows Coke to serve a wide geographic and demographic range.
Threats:
In the carbonated soft-drink sector, there is little risk of new, viable competitors emerging. However, replacements pose a severe threat. Competition in the soft-drink market is fierce, but consumers aren’t likely to remain with it long term. Tea, coffee, juice, milk, and hot chocolate all compete with Pepsi and Coke. The increased health consciousness of customers may have a substantial influence on the business of Pepsi and Coca-Cola, despite the fact that they control around 40% of the worldwide beverage sector. The fact that Coca-Cola and Pepsi have already established themselves in these locations helps to reduce any potential losses they may incur as a result of market shifts. Thus, consumer buying power is a huge threat to the firm, as a consequence. Because of the severe rivalry between Pepsi and Coca-Cola, corporations must continually adjust to changing consumer tastes and attitudes in order to avoid losing market share. As a result, consumers may easily and affordably switch to a different beverage.
The life cycle of a product:
Every product or service that has ever been put in front of a customer is essentially obsolete in the long run. Replacement of Ford Cortina by Ford Sierra, substitution of sierra by Mondeo, and replacement of the previous Mondeo in 2001 are examples of such changes. As a result, all products go through a life cycle. A procedure known as the “Product Life Cycle” is used in the commercial market to design, launch, and remove goods and services. A company must be aware of its product’s life cycle in order to effectively sell its product. The typical product life cycle comprises five stages: Development, Overview, Growth, Maturity, and Deterioration. The fact that Coca-Cola has a big, loyal, and steady client base is proof that they are presently in the mature stage. In addition, when progression slows and market share becomes the most significant indicator of cost-effectiveness, cost control, product differentiation, and marketing have all become more crucial. While the product life cycle is in a growth mode in the domestic market, it is in decline in overseas markets. As a result of its well-established strong brand, Coke now has the financial wherewithal to support the domestic Coca-Cola Wars. A graphic depicting the product’s lifespan is appropriate here.
Choosing a Market to Target
Attention shifts to the target market once the scenario analysis and marketing goals have been established. It’s impossible for a small firm to compete in the massive soft drink industry. To be “all things to all people,” it must choose the market segments with the most potential. potential. As the name implies, the objective market is the segment of the customer base on which the company focuses its marketing efforts. In order for Coca Cola to be most effective, the company concentrates its marketing efforts on the target market. Coca-Cola’s target demographic is very extensive in scope because it meets the requests of a wide range of customers, from the health-conscious to the indulgent. awareness to the typical person through Diet Coke’s best-selling beverage normal Coke .’s Coca-Cola drinks are enjoyed by people of all ages, as shown by the fact that the company’s goods are consumed by people of all ages. This marketplace has a wide range of commodities to choose from since it is available to both sexes. Coca Cola’s market may be segmented into four major categories:
-> mass marketing
-> concentrated Marketing
-> specialized marketing
-> marketing to a certain audience
Coca-most Cola’s obvious marketing strategy is unquestionably distinctive marketing. the same Coca-Cola caters to a wide variety of demographics and demographic groups. Diet coke is a weight satisfying conscious, ordinary coke, sprite, and Fanta are all common beverages consumed by the typical person; as are coffee and iced tea. Each kind of beverage has a certain audience in mind, yet the vast majority of individuals will find something to their liking.
Building A Marketing Strategy
In terms of marketing strategy, the selling mix is undoubtedly the most important part of the whole process. Each product’s advertising strategy is formulated here. The four pillars of marketing (pricing, promotion, product, and location) are referred to as the marketing mix. The marketing mix must be created in such a way that it meets the needs of target audiences while also achieving the marketing goals. As a result, the most successful companies constantly evaluate and adjust their marketing mix in order to take advantage of the many internal and external variables that affect their advertising mix components.
Product:
Many things may be kept and used in the comfort of your own home or place of business. The word “product” encompasses more than simply physical goods. Vacations and movies are examples of goods in marketing since you get to enjoy the benefits of the service without having to pay for them. Businesses must take into consideration the basic product, the genuine product, and the improved product while making decisions about their products. This is what the consumer really buys and the benefits it gives. Coca-Cola offers a wide selection of soft drinks to its customers. The core product’s components and qualities are what make it what it is. Customers would buy Coca Cola products due to their high quality and excellent standards. We define a “enhanced” product as one that offers extra benefits and features for customers. Since soft drinks are consumables, the enhanced level is rather limited. Coca-customer Cola’s care hotline and complaint phone service are available to customers who are displeased with the product or wish to submit feedback. Positioning Positioning strategies may be devised when a firm has chosen which market categories to compete in as well as built a picture of its target market. A product’s positioning is the act of creating, in the eyes of purchasers, a distinct advantage over its competitors. Despite the fact that both Coca-Cola and Franklins produce soft drinks, Franklins’ goods will always be regarded as inferior to Coca- Cola’s. An effective product positioning helps customers understand what sets it apart from the competition. To better meet the demands of its consumers, Coca-Cola plans to further strengthen its market position. Through direct comparison, Coca-Cola’s products have been positioned to benefit their target audience. Most people form an impression of a product by comparing it to another product, as seen by the historical battles between Coca-Cola and Pepsi.
Branding
It’s difficult to pinpoint the specific reason why we choose one product over another. Companies want to keep customers from switching to their rivals’ goods, companies like Nike and Adidas invest a lot of money in advertising and other forms of customer acquisition and retention strategies. The brand’s reputation has a significant role in the final decision. A lot of effort and money has been spent by Coca Cola advertising its brand, which has led to global awareness. ‘Coca-Cola’ is the most well-known and generally misunderstood trademark, with 94% of the global population recognizing it. There are a variety of ways to market your business: a generic approach to branding, a person’s own name strategy, Brand strategy for the whole family The brand strategy of the manufacturer, approach for building a personal brand Hybrid brand approach.
Packaging
Even if companies don’t place as much emphasis on packaging as they could, it’s a vital part of the marketing mix to evaluate. Products are protected throughout shipping, on the shelf, and in use by customers thanks to packaging, which promotes the product and differentiates it from its competitors. Packaging may be used to produce additional income and advertising for a company. As a promotional strategy, Coca-Cola has benefitted from labeling its goods with incentives and endorsements.
Price:
The supply and demand for a product are both influenced by price, making it an essential component of the marketing mix. Coca-Cola is in high demand. The cost of Coca-goods Cola’s is a major consideration for potential buyers. As long as most things are identical, the price will typically be the deciding factor in whether or not a buyer chooses our product over another. Customers and external pressures should be considered when developing price strategies, as this will help to maintain a steady balance between sales and paying production expenses. Since sales and profit per unit sold are influenced by price, Coca Cola’s pricing strategy is critical. Businesses must establish a pricing that is both appealing to their clients and profitable to them. Coke had already developed consumer demand forecasts for a variety of price points long before any sales were ever made, and this information was used to determine whether or not a product would be released to market, as well as how much money and resources would be allocated to its production, promotion, and distribution.
Strategies and tactics for pricing
A company’s pricing strategy must be geared toward attaining the goals outlined in its marketing strategy. the product’s position, as well as external variables such as the economy and competition. Market skimming pricing, Penetration pricing, Loss leaders, Price Points, and Discounts are just few of the pricing techniques accessible to businesses. Coca-Cola has long employed Penetration Pricing to gain an advantage over the competition. gained a footing in the market and increased their percentage of sales. The company’s product has made its way into stores. Once a consumer base has been formed, such as Coca- Cola’s, a company may gradually increase its product’s price. The price war between Coca Cola and Pepsi products has been strong for some time now, as each corporation tries to win over customers. Even though Coke had to forego short-term earnings in certain circumstances when it either went under or merely broke even, as observed it has all been for the better until now it looks that Coke has come out on top.
Pricing
Pricing selections should be based on an understanding of what potential buyers are willing to pay for a product of a certain quality level. Consumers will spend their money elsewhere if the price is too high. It is possible for a company to lose money and go out of business if the pricing is too cheap.
Among the pricing options are:
Based on the Costs, Markets, or Competition. When Coca-Cola began using the Competition-Based Pricing technique to compete more successfully in the soft drink industry, it lost position in this area over time. A pricing strategy known as “leader follower pricing” arises when there is a dominant firm that is seen as the market leader. Now Coke started out as an afterthought but has since become the market leader via efficient management, it is likely that the company will have a bigger market share as well as devoted consumers and a technical advantage. For August 2007, a return of 20% on invested capital is required in order to ensure the company’s viability in the market. Promotion: Having the right product at the right place at the right time may not be enough in today’s competitive world. In order to have a successful product and company, good communication with the target market is vital. There are several ways to promote your business, but one of them is to notify the public of your identity, the quality of your product, and where they can get it from you. Persuasion may also be achieved via promotion.
With all these activities, the Coca-Cola will surely dominate the bottling and beverages industry, as it will be able to penetrate and enter new market. Good pricing, branding and even healthy ingredients in the Coca-Cola products will encourage and aid in new market entry.
Conclusion, and a plan for the future
Because of the long-term health consequences of obesity and other side effects, the majority of urban people are now concerned about their own well-being. In addition to Coca-Cola, PepsiCo’s brand value has been lowered as a result of this trend. Another contributing factor is the rise of local rivals offering Coca-Cola-like beverages. Also, in certain countries, Coca-Cola faced societal criticism for exploiting water, which resulted in water shortages. Second, a picture of competing markets. The United States has imposed trade embargoes on Cuba and North Korea since 1962 and 1950, respectively, although Coca-Cola is available around the globe. Strategy for the future Some major adjustments must be made in order to maintain the company’s top ranking while also bolstering the brand’s dwindling worth. In spite of the organization’s extensive coverage of technology and marketing, the following other methods may be put into practice: alternative to alcoholic beverages More and more individuals are becoming hooked to harmful substances like alcohol, smoking, and chewing tobacco as a result of increasing levels of stress at work and in their personal lives. When they finally realize their errors and attempt to kick the habit, it’s usually too late since their body has already been used to the addiction. For example, Coca-Cola may build a new sub-brand with the potential for strong demand as well as a positive public image. Coca-Cola can capitalize on its well-known trademark and distinctive marketing strategy to sell its product despite the fact that there aren’t many comparable pharmaceuticals on the market. iii. Progress in water purification. Kenley is a Coca-Cola sub-brand, however sales of mineral water aren’t great. As a result of Bisleri’s success in the mineral water industry, the company’s name has come to be synonymous with bottled filtered water. The cost of bottled drinking water has also been reduced by local distributors in recent years. Coca-Cola may work with these distributors to promote Kenley to the public by making partnerships with them. Coca-Cola drinks now include filtered seawater. Coke and other beverage corporations have often come under fire for the quantity of groundwater they use, which has resulted in the shortage of drinking water for the population. Refilling the utilized quantity after use or using a sea water purifying technology with a one-time cost are two options Coca Cola has available. Despite the fact that such sea water filtration has not yet been implemented on an industrial or commercial scale, one may expect to see it in the near future as technology continues to improve. At the University of Alexandria, a groundbreaking study on seawater filtration was published in the prestigious journal Water Science and technology in 2015. This procedure is touted as being very cost-effective and energy-independent. There are several ways in which Coca-Cola can help speed up the process of developing patentable R&D projects and make the process more cost-effective. It’s a safe bet that a project like this will gain traction in remote areas as well.
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http://www.coca-colacompany.com/
https://www.coca-colaindia.com/about-us/christina-ruggiero
https://www.forbes.com/sites/greatspeculations/2016/09/26/coca-colas-advertising-and-marketing-efforts-are-helping-it-to-stay-ontop/
https://www.statista.com/
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