MARKETING STRATEGIES

Coca Cola

• Founded in 1886 by Dr Jhon Pemberton• World's leading manufacturer, marketer, and

distributor of nonalcoholic beverage concentrates and syrups.

• The corporate headquarters are in Atlanta, with local operations in nearly 200 countries around the world. The Coca Cola Company is a leader in the coke’s industry, with thousands of employees and offices in the entire world, making it an emporium of beverages.

Coca Cola-Sri Lanka

• Coca Cola Beverages Sri Lanka Ltd (CCBSL), located in Biyagama.

• The only Coca Cola bottling plant in Sri Lanka. • Has 443 employees.• Produces and sells over 10 million unit cases of

carbonated soft drinks per annum.• It operates through a countrywide distributor

network, consisting of about 128 distributors.

Target market

Product Level

Core product – To satisfy customers need of different Level carbonated soft drink

Actual product – Quality:

According to global quality product index

rating, Coca cola always stay above 94 %

To ensure such consistency and reliability, the Coca-Cola system is governed by the Coca-Cola Operating Requirements (KORE)

Features Permitted IngredientsNot using any level of Kola nut or Alcohol

How can people be sure Coca Cola product and ingredients are safe?

To ensure that Coca Cola live up to their reputation, they have

a large staff of scientists and nutritionists working to make

sure product consistently demonstrate the newest standards

of safety and emerging science. Coca Cola diligence in this

area allows them to be sure that people’s confidence in Coca

Cola will remain strong

Design & Packaging•Packaging make from Aluminum, PET plastic & Glass •Unique design for bottles•Revolution in bottling industry via Plant Bottle concept

Brand Name : Worlds’ most valuable & strongest brand name. Same Trade mark & Brand name use since start.Brand name value is US $ 79.2 Bn in 2013

Maturity stage

Peak sales : 1.9 bn servings per day. 43% global market share

Low cost per customerHigh profits : In 2012 US $ 9.01 billion net

profit. World profit rank # 49

Diversity brands and models

Intensive distribution network

Mass advertising

$ 48 bnNet

revenue1.8 bn Servings per day

$ 9.01 Bn Net

Profit in 2012

Pricing StrategyCoca Cola consider following factors at pricing…

•Price should be set according to the product

demand of public.

•Price should be that which gives the company

maximum revenue.

•Price should not be too low or too high than the

price competitor is charging from their customers

otherwise nobody will buy the product.

•Price must be keeping the view of the target market.

Pricing Strategies

Coca Cola determines following factors at determining price…

Pricing Strategy

Competitor Approach

Coke was a company ruling the markets before Pepsi

entered. Earlier the price of coke was cost based, it was

decided on the cost which was spent on making the

product plus the profit and other expenses. But after the

emergence of other companies especially the likes of

Pepsi, Coca-cola started with a pricing strategy based on

the basis of competition.

Pricing Strategy

In some economies consumers tend to switch

towards a low priced product. Coca cola’s objective is

to target every consumer of the country so Coco Cola

has to set its prices at such a level which no one can

offer to its consumers. That is why Coca Cola charges

the same prices as are being charged by its

competitors. Otherwise, consumers may go for Pepsi

Cola in case of availability of Coca Cola at relatively

high price.

Market Penetration Pricing

Distribution Channel

250+Bottling Partners

23 Million+

Retail Outlets

900+BottlingPlants

worldwide

Getting shelvesThey gets or purchase shelves in big departmental stores and display their products in that shelves in that style which show their product more clear and more attractive for the consumers.

Eye Catching Position Salesman of the coca cola company positions their freezers and their products in eye-catching positions.

Sale PromotionCompany also do sponsorships with different college and school’s cafes and sponsors extra curriculum activities for getting market share.

UTC Scheme UTC mean under the crown scheme, coca cola often do this type of scheme and they offer very handy prizes in it. Like once they offer bicycles, caps, tv sets, cash prizes etc.

Facilitating the product by infrastructureFor providing their product in good manner company has provided infrastructure•Vizi cooler •Freezers•Display racks

Promotions

Advertisement

Coca cola company use different medias •Print media: They often use print media for advertisement. They have a separate department for print media.

•Pos material: Pos material mean point of sale material this includes: posters and stickers display in the stores and in different areas.

•Tv commercial: As everybody know that TV is a most common entertaining medium so TV commercials is one of the most attractive way of doing advertisement. So Coca Cola Company does regular TV commercials on different channels.

•Billboards and holdings: Coca cola is very much conscious about their billboards and holdings. They have so many sites in different locations for their billboards.

Advertising

•Coca Cola Company should try to emphasis more on providing their infrastructure in the market to facilitate their customers.

•According to the survey, conducted by the international firm Srilankan people like little bit sweeter cola drink. So for this coca cola company should produce their product according to the local demand.

•Marketing team should try to increase the availability of Coke in rural areas.•They should also focus the old people.

•The company should make hindrance free arrangement for its customers/retailers to make any feedback or suggestions as and when they feel.

•The company should focus to bring some more flavours like health drinks and other low-calorie offerings. Coca-Cola Srilanka can also introduce some fruit based drinks, as it has already entered the energy drink arena with “Burn”.

•The company should use new attractive system of word of mouth advertisement to keep alive the general awareness in the whole market as a whole.

Recommendations

The success of Coca Cola depends on their world premier marketing

strategies. They do their marketing in innovative methods. Coca cola

maintains quality and core features of their product over a 125 years.

They have their own pricing system and appropriately they behave

according to competitors price levels. Promotions of Coca Cola made it

as a world most valuable and recognizable brand. Coca Cola has world

strongest distribution network in FMCG category. According to this

report their performances in 4p’s are really strong and over the industry

levels.

Conclusion

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