Coca-Cola – Happiness, positivity and good life, the beverage in every party
Coca-Cola is a leader in soft drink maker around the world selling a variety of sparking and still beverages. The history of Coca-Cola begun in 1886 by Dr. John Pemberton, a pharmacist in Atlanta who created a flavored syrup which was mixed with carbonated water and was well appreciated by those who tested it. It was originally created to be a patent medicine. In 1888, the soft drink became the number one selling beverage. Back in 1886, in Atlanta, Dr Pemberton sold an average just of nine servings of Coca-Cola every day. And today, that number increased to 1.9 billion servings per day.
Now let’s have a look at the marketing mix of Coca-Cola.
Coca-Cola has a portfolio of more than 3000 products. And according to the data of Nielson, it is coca-cola the leader of its products as well as the highest brand awareness, brand recognition and brand equity. Among of some other products of the company, there is Fanta, the second oldest brand after Coca-Cola, Sprite, introduced in 1967, Minute Maid, a juice brand acquired by Coca-Cola, Diet Coca, a sugar free soft drink, etc.
The pricing of the products of Coca-Cola is done according to geographic segment. Each product of the company has a different pricing strategy. The pricing strategy used is competitive pricing, the price are not too high so that it is affordable for all income level groups and not too low so as to give a good impression on the quality.
These products are sold in more than 200 countries. The company manufactures and then sells the beverage syrup to bottling companies in different countries and then their bottling manufacture the packaging, advertise and distribute the final beverage to their customers.
And finally, concerning the promotion, they are personalized and adapted as per the geographical region so that the targeted segment in each country can associate the products to their lifestyle and behaviour.
Coca-Cola Marketing Strategies
The 3 crucial elements of the marketing strategy of Coca-Cola are affordable prices, worldwide distribution and great customer service. The products of the company are present across the globe in more than 200 countries.
The first strategy adopted by Coco-Cola long before was to market the brand as one for young people. The target group of the brand is mainly of people age from 13 -35. The brand was positioned as a nonalcoholic drink for the youth and served in stylish bottles with creative and innovative advertising so as to drive sales and increase brand awareness.
In addition, the company has localized their marketing strategies when promoting their products. Due to cultural and lifestyle differences, each regional regions have adapted the advertising and promotions of the products based on the economic, social and cultural aspect of each country. And this promotes a sense of belonging to the customers and prospects in each of the countries. But the idea behind each advertising of Coca-Cola stays the same, the idea to show that Coca-Cola is a brand loved by its customers worldwide.
Furthermore, the company has a strong brand portfofio with different type of beverages such as carbonated soft drinks, water, juice, ice tea, milk, coffee and even beer. And also, the concept behind each advertising is to associate Coca-Cola with happiness, positivity and good life and this is how they are able to create a high top of mind awareness and that this brand is recognized worldwide.
Coca-Cola Strategies around the World
And now, we will have a look at the strategies used by Coca-Cola across the globe based on a research carried out by Mayureshnikam and Patil. We will analyze the strategies used in 3 types of markets around the world. Let’s start with a developed country, the United States of America, the strategy adopted is that Coca-Cola is always present in big events in the USA such as Christmas and giving sponsorship to famous sports such as the NBA. And nowadays, with more and more people concerned about their health and to have a fit lifestyle, Coca-Cola has adapted their products to this new type of consumers. They have launched new Coca-Cola products with zero calorie.
Let’s now move to a developing market, India. The strategies adopted by the company are diversification and a deeper understanding of the Indian culture. Coca-Cola took over Parle foods and combining the local brands and the global brands has enabled Coca-Cola to win the Indian market.
And finally, we will have a look of the strategies adopted in Africa, an underdeveloped market. The first strategy adopted was pricing the product as low as possible so that it is affordable for many people. And also, since literacy rate is low in Africa, Coca-Cola has come with the idea of Coke Studio, a place where artists have the opportunity to present themselves.
Coca-Cola Strategy against Competition
When thinking of an alternative for Coca-Cola, the first name that probably came to your mind is Pepsi. Pepsi has always been the first rival of Coca-Cola. The strategy adopted by Coca-Cola against its competitors is that they have a competitive advantage due to their brand equity and their pricing strategy which make the product available and affordable in every market. Moreover, the company spent a lot of money in research and development so as to take into consideration what people care a lot these days, a healthy lifestyle, having an ecological product and companies going green.
What to retain from Coca-Cola Success
From the above article on the main strategies of Coca-Cola what we can retain on the success of the company are that firstly, Coca-Cola has adopted personalization, that is the advertising and promotion in each geographical area is unique and reflect their own lifestyle and cultures. The people can feel a connection with the product which can drive the number of sales.
Furthermore, the pricing strategy is determined so that the products are affordable for all income level group but not to low so as to give a good quality impression of the products. Hence, the pricing strategy plays an important role in the purchasing decisions of consumers and prospect and this can be another element driving the profits.
And finally, the advertising of Coca-Cola is not essentially on the brand. The advertising are mainly on how the product is associated with happiness and good life. And this concept tends to persuade people to buy them.