This document provides an overview of customer relationship management (CRM) strategies and a case study analysis of Coca-Cola's CRM approach. It begins with definitions of CRM and discusses key aspects like creating value for customers, customer retention, and common CRM models. It then profiles Coca-Cola as a company and analyzes its marketing environment. The document evaluates Coca-Cola's existing CRM strategies, compares them to competitor Pepsi, and identifies some problems in Coca-Cola's approach. It concludes by proposing several improvement strategies for Coca-Cola's CRM.
Coca-Cola has strategically positioned itself as a global brand while adapting to local markets. It began as a drink invented in 1886 and sold for 5 cents. Over time, Coca-Cola grew to be the largest beverage company in the world, offering over 500 brands across more than 200 countries. To maintain its leading position, Coca-Cola employs a "think global, act local" strategy, keeping its core product consistent while tailoring offerings and marketing to different regions and cultures. The company has established strong brand recognition through iconic packaging, consistent logo and branding, and large sponsorships of popular events.
Coca Cola Brand Positioning and DifferentiationSara Amjad
Coca Cola has achieved brand positioning as a refreshing, everyday part of life through consistent branding and marketing over 130+ years. It was initially marketed as a patent medicine but is now positioned as refreshing and for sharing moments with family and friends. Key factors in its positioning include maintaining a consistent 5 cent price for 70 years, innovative packaging, and widespread promotional campaigns like "The Pause That Refreshes" and more recent "Open Happiness" campaigns. While Pepsi positions as encouraging living in the moment, Coca Cola's positioning focuses on being an integral part of everyday life. Coca Cola also differentiates through its product line, culturally tailored drinks, focus on water purity and quality, and flexible business
Strategic management project report finallllllllllllllllllllsaad ali
This document contains an analysis of Coca-Cola's strategic management. It includes an industry profile of the beverage industry in Pakistan, Coca-Cola's company profile, mission and vision statements, an analysis of Coca-Cola's micro-environment using Porter's five forces model, a SWOT analysis, and several strategic planning matrices to evaluate Coca-Cola's strategies and position relative to competitors like Pepsi. The document provides an overview of Coca-Cola's business and strategies in Pakistan.
This document provides an overview of PepsiCo, including its history, organizational structure, products, departments, competitors, and quality control methods. Some key details:
- PepsiCo was founded in 1965 through the merger of Pepsi-Cola Company and Frito-Lay and is now one of the largest food and beverage companies worldwide.
- It has a decentralized structure with regional business units and is led by a global CEO.
- Major products include Pepsi, Lay's, Gatorade, Quaker Foods. Competitors include Coca-Cola and Kraft Heinz.
- Quality is ensured through strict food safety policies, supplier standards, and product innovation programs managed by
The document provides an overview of Coca-Cola's complex global supply chain. Key points include:
- Coca-Cola produces syrup concentrate which is then sold to independent bottlers who produce the finished beverage. This allows for localized production.
- Technology is used to improve demand forecasting and reduce out-of-stocks. Real-time data is analyzed.
- Bottlers are responsible for manufacturing, packaging, distribution and sales within their exclusive territories. Distribution centers deliver products to retailers.
This is a powerpoint presentation prepared by me... explaining about IMC plans of Coca cola Inc. This is very useful for presentations in colleges, MBA institutes etc. Send your suggestions and likes on my email id- a380onkar@yahoo.co.in
The document is a marketing plan by Coca-Cola Company to introduce a new product called "Bubble Buzz". Bubble Buzz will be a bottled bubble tea product positioned as the only ready-to-drink bubble tea on the market. The objectives of the marketing plan are to create strong consumer awareness of the new product, establish wide brand recognition to capture market share in the functional drinks segment, and become the top market leader in that segment. The plan analyzes the industry, trends, demographics and economic conditions to guide marketing strategies to reach the targeted market size and sales growth forecasts over four years.
The document outlines the sales and distribution management process of Coca-Cola India. It discusses Coca-Cola's company overview, product specifications, business model, market segmentation, sales organization structure, sales force motivation, forecasting, distribution model, performance comparisons to Pepsi, logistics, performance management, promotional schemes, margins, financials, and recommendations. Key aspects covered include Coca-Cola's franchised bottling system, sales force training programs, incentive structures, forecasting approach, direct and indirect distribution networks, RED performance management tool, and distributor margins.
Coca-Cola has strategically positioned itself as a global brand while adapting to local markets. It began as a drink invented in 1886 and sold for 5 cents. Over time, Coca-Cola grew to be the largest beverage company in the world, offering over 500 brands across more than 200 countries. To maintain its leading position, Coca-Cola employs a "think global, act local" strategy, keeping its core product consistent while tailoring offerings and marketing to different regions and cultures. The company has established strong brand recognition through iconic packaging, consistent logo and branding, and large sponsorships of popular events.
Coca Cola Brand Positioning and DifferentiationSara Amjad
Coca Cola has achieved brand positioning as a refreshing, everyday part of life through consistent branding and marketing over 130+ years. It was initially marketed as a patent medicine but is now positioned as refreshing and for sharing moments with family and friends. Key factors in its positioning include maintaining a consistent 5 cent price for 70 years, innovative packaging, and widespread promotional campaigns like "The Pause That Refreshes" and more recent "Open Happiness" campaigns. While Pepsi positions as encouraging living in the moment, Coca Cola's positioning focuses on being an integral part of everyday life. Coca Cola also differentiates through its product line, culturally tailored drinks, focus on water purity and quality, and flexible business
Strategic management project report finallllllllllllllllllllsaad ali
This document contains an analysis of Coca-Cola's strategic management. It includes an industry profile of the beverage industry in Pakistan, Coca-Cola's company profile, mission and vision statements, an analysis of Coca-Cola's micro-environment using Porter's five forces model, a SWOT analysis, and several strategic planning matrices to evaluate Coca-Cola's strategies and position relative to competitors like Pepsi. The document provides an overview of Coca-Cola's business and strategies in Pakistan.
This document provides an overview of PepsiCo, including its history, organizational structure, products, departments, competitors, and quality control methods. Some key details:
- PepsiCo was founded in 1965 through the merger of Pepsi-Cola Company and Frito-Lay and is now one of the largest food and beverage companies worldwide.
- It has a decentralized structure with regional business units and is led by a global CEO.
- Major products include Pepsi, Lay's, Gatorade, Quaker Foods. Competitors include Coca-Cola and Kraft Heinz.
- Quality is ensured through strict food safety policies, supplier standards, and product innovation programs managed by
The document provides an overview of Coca-Cola's complex global supply chain. Key points include:
- Coca-Cola produces syrup concentrate which is then sold to independent bottlers who produce the finished beverage. This allows for localized production.
- Technology is used to improve demand forecasting and reduce out-of-stocks. Real-time data is analyzed.
- Bottlers are responsible for manufacturing, packaging, distribution and sales within their exclusive territories. Distribution centers deliver products to retailers.
This is a powerpoint presentation prepared by me... explaining about IMC plans of Coca cola Inc. This is very useful for presentations in colleges, MBA institutes etc. Send your suggestions and likes on my email id- a380onkar@yahoo.co.in
The document is a marketing plan by Coca-Cola Company to introduce a new product called "Bubble Buzz". Bubble Buzz will be a bottled bubble tea product positioned as the only ready-to-drink bubble tea on the market. The objectives of the marketing plan are to create strong consumer awareness of the new product, establish wide brand recognition to capture market share in the functional drinks segment, and become the top market leader in that segment. The plan analyzes the industry, trends, demographics and economic conditions to guide marketing strategies to reach the targeted market size and sales growth forecasts over four years.
The document outlines the sales and distribution management process of Coca-Cola India. It discusses Coca-Cola's company overview, product specifications, business model, market segmentation, sales organization structure, sales force motivation, forecasting, distribution model, performance comparisons to Pepsi, logistics, performance management, promotional schemes, margins, financials, and recommendations. Key aspects covered include Coca-Cola's franchised bottling system, sales force training programs, incentive structures, forecasting approach, direct and indirect distribution networks, RED performance management tool, and distributor margins.
The document discusses the management practices of Coca-Cola, including an overview of the company's history, leadership team, product lines, financial performance, strategic planning approaches, human resources philosophy, and commitment to corporate social responsibility through initiatives focused on areas like health, packaging, water stewardship, and climate change. It provides details on Coca-Cola's mission, values, goals, and strategies for leading in the beverage industry and continuing to strengthen its brand portfolio.
This document presents a marketing strategy for Coca-Cola in China. It outlines Coca-Cola's mission statement, objectives, consumer segments, and analyses including PESTLE, Porter's Five Forces, BCG matrix, and critical success factors. The strategy focuses on increasing sales and market share in China through local manufacturing and a new product targeting a new consumer segment. Key factors for success include brand affinity, taste, price, health awareness, and promotions.
Internal Business Environment - Coca ColaSnehal Nemane
Coca-Cola has a global presence operating in almost 200 countries. It has over 123,000 employees and generates over $41 billion in annual revenue. The company's vision focuses on being a great place to work and bringing quality beverage brands to the world while being responsible citizens. Coca-Cola utilizes various resources including financial capital, human resources, technology and machinery to produce and distribute its beverage products globally.
Vision of Ray Croc for McDonald's. McDonald's current position in international market. SWOT analysis for McDonald's. PESTEL analysis for McDonald's. Porter's Five forces of market. Conclusion. McDonald's customer satisfaction approach of business. King of international fast food chain.
This document provides a summary of Coca Cola Company's value chain analysis. It begins with an introduction to the beverage industry and Coca Cola. It then describes Porter's value chain model and each component of Coca Cola's value chain, including inbound logistics, operations, outbound logistics, marketing and sales, services, procurement, technology, human resources, and firm infrastructure. It concludes that value chain analysis helps Coca Cola focus on value-creating activities and eliminate wasteful activities to strengthen its value proposition and benefits.
This document provides an overview of Coca-Cola's sales and distribution management processes. It discusses Coca-Cola's company overview, product specifications, business model, sales organization structure, sales force motivation strategies, distribution model, competition with Pepsi, logistics and product flow processes, and recommendations. The document contains information on Coca-Cola's founding, current operations in over 200 countries, sales organization hierarchy from area sales managers to sales executives, use of incentives and rewards to motivate the sales force, direct and indirect distribution routes, daily product flow from manufacturing to retailers, and combination of top-down and bottom-up approaches to forecasting.
This document provides an overview and analysis of Coca-Cola. It discusses the company's history beginning in 1886, products, vision, mission, objectives, PEST analysis, Porter's 5 forces, SWOT analysis, corporate strategy, business strategy, life cycle, and BCG matrix. Recommendations are made to focus on product differentiation, avoid negative health effects, expand into non-carbonated drinks and snacks, pursue vertical integration, and broaden distribution channels.
PepsiCo is a beverage and food processing company founded by Caleb Bradham with a net income of $12.51 billion and CEO Indra Nooyi. It has 22 brands across 6 operational segments worldwide. PepsiCo uses multiple distribution formats including direct-store-delivery and distributor networks to outbound its products. The company spends $2.4 billion on advertising annually through various channels and focuses its marketing on messages of enjoying life.
Starbucks was founded in 1971 in Seattle, Washington by three partners. It opened its first store in Pike Place to sell high quality coffee beans and equipment. In the 1990s, it expanded throughout the US and became a publicly traded company. In 2011, Starbucks announced plans to open locations in India through a joint venture with Tata Global Beverages called Tata Starbucks. As of 2016, Tata Starbucks had 84 outlets across 7 Indian cities. Starbucks offers various coffee beans, hot and iced coffee drinks, as well as Indian food items. It has established brand elements like its distinctive logo and sustainable packaging strategy. Starbucks faces competition in India from cafes like Cafe Coffee Day, Costa Coffee and Barista.
Supply Chain Management of Nestle CompanyAsad Rehman
Nestle Pakistan operates an extensive supply chain network to efficiently distribute milk and dairy products across Pakistan. The supply chain involves milk collection centers, factories for processing and packaging, warehouses for storage, and distribution centers that deliver products to retailers through a network of distributors. Nestle aims to optimize resources through this supply chain to provide high quality dairy products at low cost while maintaining high customer satisfaction.
This document presents information about McDonald's marketing strategies. It discusses McDonald's history and founding, segments of customers, products offered, objectives of promotion and corporate goals. It also provides an analysis of McDonald's marketing environment including SWOT analysis and discusses strategies around product, price, place, promotion and people.
Starbucks began in 1971 in Seattle as a small coffee bean roaster and retailer. It has since grown to over 30,000 stores globally, making it the largest coffeehouse company in the world. Starbucks aims to be more than just a coffee seller, but a place to gather with others and feel a sense of community. The company's success is largely due to its adaptation to local cultures while maintaining a consistent brand image. Going forward, Starbucks continues to focus on global expansion, new product innovation, and social responsibility initiatives.
Starbucks Story and Marketing Strategies9988559750
Starbucks is an American global coffee company and coffeehouse chain based in Seattle. It has over 21,000 stores worldwide and is the largest coffeehouse company globally. Starbucks serves hot and cold beverages including coffee, tea and snacks. It aims to create a third place between home and work for customers. The company focuses on quality coffee, customer connection and community. It has expanded aggressively across the US and worldwide since being founded in 1971.
A PROJECT REPORT ON “CUSTOMER PERCEPTION AND PREFERENCE OF TROPICANA JUICES”Jyoti Prakash
This project report summarizes a study on customer perception and preferences of Tropicana juices. The objectives are to assess brand awareness of Tropicana in terms of product quality, varieties and company image, and to analyze customer satisfaction. The report provides background on Tropicana, describes its history and manufacturing process. It reviews the juice industry and competitors in India. Literature on consumer quality perception, marketing activities, and packaging changes is examined. The report aims to help Tropicana understand customer perception to improve its products and marketing.
McDonald's is the world's largest chain of hamburger fast food restaurants serving 68 million customers daily. It started in 1940 as a barbecue restaurant operated by Richard and Maurice McDonald in California. Ray Kroc joined as a franchise agent in 1955 and later bought the chain, growing it to over 35,000 outlets globally that generate $27.5 billion annually. While mainly selling burgers, fries, and drinks, McDonald's also has some country-specific menus and is recognized worldwide by its golden arches logo and "I'm lovin' it" slogan. Customer surveys found McDonald's is seen as a fun, convenient place to get a quick, affordable bite to eat with friends and family.
Tesco is the biggest retailer in UK now. Having operations in 14 countries with 2,291 stores spread globally, Tesco employs 296,000 people. Now their focus is on “Creating value for customers, to earn their lifetime loyalty” and strives to “be energetic, be innovative and be the first for the customer”. So the 21st customer has taken a great leap over “pile high, sell it cheap “strategy and demanding nature of the customer has forced Tesco to continuously improve
Starbucks began in 1971 as a roaster and retailer of coffee beans and related products with a single store in Seattle. It has since grown into a global brand with over 21,000 retail stores across 66 countries. Starbucks aims to inspire customers through high-quality coffee and a welcoming store environment. The company focuses on ethical sourcing of coffee beans and environmental sustainability while fostering community involvement. Starbucks strives to treat its employees, called partners, with respect by providing health benefits and company stock ownership.
Marketing Strategy which includes Consumer Analysis, Marketing Mix, Porter`s Five Force Model, PEST analysis, Competitive Scenario, STP and Break Even.
This document summarizes a thesis on branding in small-to-medium enterprises (SMEs). It includes an introduction discussing the problem of limited research on branding in SMEs compared to large corporations. The purpose is to investigate branding in an SME and develop a model for how SMEs can implement branding. It describes conducting qualitative interviews at an SME called Triumf Glass to understand their branding practices. The conclusion presents a model called the JFK Model for the branding process in SMEs consisting of the phases of brand essence, brand reflection, and brand strategy leading to brand equity.
[Whitepaper] You’re Building a Customer-centric Organization, So Where’s the...Flevy.com Best Practices
More information: https://flevy.com/browse/flevypro/customer-centric-organization-the-customer-department-3860
The days of mass markets, mass media communications, and little-to-none direct interface with customers are long gone. This age of disruption offers potent technologies for organizations to utilize in order to engage with the customers directly; gather and mine information; and tailor their products and services appropriately. The emphasis now is on maximizing customer relationships and becoming customer-driven organizations rather than merely selling products.
The sheer advancement in technology today offers sophisticated tools to the organizations to understand and engage with their customers better. To become a Customer-centric Organization, companies need to reinvent their traditional marketing function as a “Customer Department.” The Customer Department should be created to deliver maximum profits to the customers.
This deck deliberates on the structure of the Customer Department, the various positions responsible for managing the department, their roles, the critical client-facing tasks that the Customer Department should undertake, and the key metrics to assess progress in gathering and using customer data. The core emphasis of the Customer Department is on nurturing customer relationships instead of pushing products.
The slide deck also includes some slide templates for you to use in your own business presentations.
The document discusses the management practices of Coca-Cola, including an overview of the company's history, leadership team, product lines, financial performance, strategic planning approaches, human resources philosophy, and commitment to corporate social responsibility through initiatives focused on areas like health, packaging, water stewardship, and climate change. It provides details on Coca-Cola's mission, values, goals, and strategies for leading in the beverage industry and continuing to strengthen its brand portfolio.
This document presents a marketing strategy for Coca-Cola in China. It outlines Coca-Cola's mission statement, objectives, consumer segments, and analyses including PESTLE, Porter's Five Forces, BCG matrix, and critical success factors. The strategy focuses on increasing sales and market share in China through local manufacturing and a new product targeting a new consumer segment. Key factors for success include brand affinity, taste, price, health awareness, and promotions.
Internal Business Environment - Coca ColaSnehal Nemane
Coca-Cola has a global presence operating in almost 200 countries. It has over 123,000 employees and generates over $41 billion in annual revenue. The company's vision focuses on being a great place to work and bringing quality beverage brands to the world while being responsible citizens. Coca-Cola utilizes various resources including financial capital, human resources, technology and machinery to produce and distribute its beverage products globally.
Vision of Ray Croc for McDonald's. McDonald's current position in international market. SWOT analysis for McDonald's. PESTEL analysis for McDonald's. Porter's Five forces of market. Conclusion. McDonald's customer satisfaction approach of business. King of international fast food chain.
This document provides a summary of Coca Cola Company's value chain analysis. It begins with an introduction to the beverage industry and Coca Cola. It then describes Porter's value chain model and each component of Coca Cola's value chain, including inbound logistics, operations, outbound logistics, marketing and sales, services, procurement, technology, human resources, and firm infrastructure. It concludes that value chain analysis helps Coca Cola focus on value-creating activities and eliminate wasteful activities to strengthen its value proposition and benefits.
This document provides an overview of Coca-Cola's sales and distribution management processes. It discusses Coca-Cola's company overview, product specifications, business model, sales organization structure, sales force motivation strategies, distribution model, competition with Pepsi, logistics and product flow processes, and recommendations. The document contains information on Coca-Cola's founding, current operations in over 200 countries, sales organization hierarchy from area sales managers to sales executives, use of incentives and rewards to motivate the sales force, direct and indirect distribution routes, daily product flow from manufacturing to retailers, and combination of top-down and bottom-up approaches to forecasting.
This document provides an overview and analysis of Coca-Cola. It discusses the company's history beginning in 1886, products, vision, mission, objectives, PEST analysis, Porter's 5 forces, SWOT analysis, corporate strategy, business strategy, life cycle, and BCG matrix. Recommendations are made to focus on product differentiation, avoid negative health effects, expand into non-carbonated drinks and snacks, pursue vertical integration, and broaden distribution channels.
PepsiCo is a beverage and food processing company founded by Caleb Bradham with a net income of $12.51 billion and CEO Indra Nooyi. It has 22 brands across 6 operational segments worldwide. PepsiCo uses multiple distribution formats including direct-store-delivery and distributor networks to outbound its products. The company spends $2.4 billion on advertising annually through various channels and focuses its marketing on messages of enjoying life.
Starbucks was founded in 1971 in Seattle, Washington by three partners. It opened its first store in Pike Place to sell high quality coffee beans and equipment. In the 1990s, it expanded throughout the US and became a publicly traded company. In 2011, Starbucks announced plans to open locations in India through a joint venture with Tata Global Beverages called Tata Starbucks. As of 2016, Tata Starbucks had 84 outlets across 7 Indian cities. Starbucks offers various coffee beans, hot and iced coffee drinks, as well as Indian food items. It has established brand elements like its distinctive logo and sustainable packaging strategy. Starbucks faces competition in India from cafes like Cafe Coffee Day, Costa Coffee and Barista.
Supply Chain Management of Nestle CompanyAsad Rehman
Nestle Pakistan operates an extensive supply chain network to efficiently distribute milk and dairy products across Pakistan. The supply chain involves milk collection centers, factories for processing and packaging, warehouses for storage, and distribution centers that deliver products to retailers through a network of distributors. Nestle aims to optimize resources through this supply chain to provide high quality dairy products at low cost while maintaining high customer satisfaction.
This document presents information about McDonald's marketing strategies. It discusses McDonald's history and founding, segments of customers, products offered, objectives of promotion and corporate goals. It also provides an analysis of McDonald's marketing environment including SWOT analysis and discusses strategies around product, price, place, promotion and people.
Starbucks began in 1971 in Seattle as a small coffee bean roaster and retailer. It has since grown to over 30,000 stores globally, making it the largest coffeehouse company in the world. Starbucks aims to be more than just a coffee seller, but a place to gather with others and feel a sense of community. The company's success is largely due to its adaptation to local cultures while maintaining a consistent brand image. Going forward, Starbucks continues to focus on global expansion, new product innovation, and social responsibility initiatives.
Starbucks Story and Marketing Strategies9988559750
Starbucks is an American global coffee company and coffeehouse chain based in Seattle. It has over 21,000 stores worldwide and is the largest coffeehouse company globally. Starbucks serves hot and cold beverages including coffee, tea and snacks. It aims to create a third place between home and work for customers. The company focuses on quality coffee, customer connection and community. It has expanded aggressively across the US and worldwide since being founded in 1971.
A PROJECT REPORT ON “CUSTOMER PERCEPTION AND PREFERENCE OF TROPICANA JUICES”Jyoti Prakash
This project report summarizes a study on customer perception and preferences of Tropicana juices. The objectives are to assess brand awareness of Tropicana in terms of product quality, varieties and company image, and to analyze customer satisfaction. The report provides background on Tropicana, describes its history and manufacturing process. It reviews the juice industry and competitors in India. Literature on consumer quality perception, marketing activities, and packaging changes is examined. The report aims to help Tropicana understand customer perception to improve its products and marketing.
McDonald's is the world's largest chain of hamburger fast food restaurants serving 68 million customers daily. It started in 1940 as a barbecue restaurant operated by Richard and Maurice McDonald in California. Ray Kroc joined as a franchise agent in 1955 and later bought the chain, growing it to over 35,000 outlets globally that generate $27.5 billion annually. While mainly selling burgers, fries, and drinks, McDonald's also has some country-specific menus and is recognized worldwide by its golden arches logo and "I'm lovin' it" slogan. Customer surveys found McDonald's is seen as a fun, convenient place to get a quick, affordable bite to eat with friends and family.
Tesco is the biggest retailer in UK now. Having operations in 14 countries with 2,291 stores spread globally, Tesco employs 296,000 people. Now their focus is on “Creating value for customers, to earn their lifetime loyalty” and strives to “be energetic, be innovative and be the first for the customer”. So the 21st customer has taken a great leap over “pile high, sell it cheap “strategy and demanding nature of the customer has forced Tesco to continuously improve
Starbucks began in 1971 as a roaster and retailer of coffee beans and related products with a single store in Seattle. It has since grown into a global brand with over 21,000 retail stores across 66 countries. Starbucks aims to inspire customers through high-quality coffee and a welcoming store environment. The company focuses on ethical sourcing of coffee beans and environmental sustainability while fostering community involvement. Starbucks strives to treat its employees, called partners, with respect by providing health benefits and company stock ownership.
Marketing Strategy which includes Consumer Analysis, Marketing Mix, Porter`s Five Force Model, PEST analysis, Competitive Scenario, STP and Break Even.
This document summarizes a thesis on branding in small-to-medium enterprises (SMEs). It includes an introduction discussing the problem of limited research on branding in SMEs compared to large corporations. The purpose is to investigate branding in an SME and develop a model for how SMEs can implement branding. It describes conducting qualitative interviews at an SME called Triumf Glass to understand their branding practices. The conclusion presents a model called the JFK Model for the branding process in SMEs consisting of the phases of brand essence, brand reflection, and brand strategy leading to brand equity.
[Whitepaper] You’re Building a Customer-centric Organization, So Where’s the...Flevy.com Best Practices
More information: https://flevy.com/browse/flevypro/customer-centric-organization-the-customer-department-3860
The days of mass markets, mass media communications, and little-to-none direct interface with customers are long gone. This age of disruption offers potent technologies for organizations to utilize in order to engage with the customers directly; gather and mine information; and tailor their products and services appropriately. The emphasis now is on maximizing customer relationships and becoming customer-driven organizations rather than merely selling products.
The sheer advancement in technology today offers sophisticated tools to the organizations to understand and engage with their customers better. To become a Customer-centric Organization, companies need to reinvent their traditional marketing function as a “Customer Department.” The Customer Department should be created to deliver maximum profits to the customers.
This deck deliberates on the structure of the Customer Department, the various positions responsible for managing the department, their roles, the critical client-facing tasks that the Customer Department should undertake, and the key metrics to assess progress in gathering and using customer data. The core emphasis of the Customer Department is on nurturing customer relationships instead of pushing products.
The slide deck also includes some slide templates for you to use in your own business presentations.
This document discusses relationship marketing and customer care in modern business organizations. It begins by explaining how customer satisfaction, retention and loyalty have become critical for business survival given increased competition. Relationship marketing and effective customer relationship management strategies can help organizations develop mutually beneficial relationships with customers. The document then examines the role of customer care and relationship marketing in building trust, satisfaction and lifetime customer value. It recommends that organizations understand customer desires, deliver excellent service, implement quality customer relationship strategies and foster a customer-centric culture to enhance loyalty and profitability.
This document summarizes Coca-Cola's marketing management practices. It discusses Coca-Cola's use of an intranet to connect its 700,000 global employees. It also examines the company's core competencies in its brand identity and unique taste. The document then analyzes Coca-Cola's holistic marketing approach, which integrates marketing across divisions. It provides details on Coca-Cola's products, pricing strategy, global distribution network, and promotional activities.
The document provides a framework for developing and implementing a corporate sustainability strategy plan. It begins by discussing surveys that found awareness of sustainability's importance is growing among executives, but there is lack of consensus on what matters and how to measure its impact. The plan's goals are to help the company be recognized as accountable, assure capital market access, outperform on sustainability returns, and build reputation. The proposed framework involves 6 phases: 1) creating a sustainability culture, 2) mapping strategy areas, 3) benchmarking governance and finance standards, 4) assessing issues, 5) setting strategies and goals, and 6) an action plan. Benchmarking to standards like the Equator Principles and Dow Jones Sustainability Index can help lower costs
This document provides information about a Business Analytics and Intelligence certificate program offered by IIM Bangalore beginning on July 8, 2013. The program consists of 6 modules covering topics such as business statistics, predictive analytics, optimization, stochastic models, and advanced analytics. An optional SAS module is also available. The program is designed to provide in-depth knowledge of analytical techniques and tools for fact-based decision making. Participants will learn how to analyze data, use various models and software, and apply analytics across different business functions and industries. The fee for the residential program is Rs. 3,92,500 and for the non-residential program is Rs. 3,70,000.
Strategic Management Issues Of Multinational Companies Mn Cs A Case Study On ...Arun Kumar
The document discusses the strategic management issues of Coca-Cola Company. It provides an overview of the company, including its history dating back to 1886 when it was invented. Coca-Cola is now a leading manufacturer and distributor of non-alcoholic beverages operating in over 200 countries. The document also discusses strategic management concepts and processes, international strategic management challenges, and Coca-Cola's strategies to achieve global success.
This document provides a comparison between traditional marketing and social media marketing with a case study of Coca-Cola. It begins with an introduction and outlines the research question and objectives. It then provides background on marketing communications, focusing on the elements of communication and frequency. It discusses trends in traditional marketing and social media marketing, and how their effectiveness can be measured. The document presents Coca-Cola as a case study, and will analyze and compare traditional marketing and social media marketing used by the company.
The document provides an overview of internal branding from a human resources perspective based on interviews with HR professionals from over a dozen companies. Some key findings include:
1) Internal branding is important for successfully implementing business strategy by empowering employees to deliver a consistent customer experience.
2) To engage employees, companies must foster pride, provide rewards/recognition, and ensure consistency over time.
3) Developing a set of values is paramount, and companies devote significant resources to developing values through research and ensuring buy-in across functions.
4) Maintaining internal branding requires orientation, training, and structural alignment to reinforce values at all stages of employment.
The document provides an overview of internal branding from a human resources perspective based on interviews with HR professionals from over a dozen companies. Some key findings include:
1) Internal branding is important for successfully implementing business strategy by empowering employees to deliver a consistent customer experience.
2) To engage employees, companies must foster pride, provide rewards/recognition, and ensure consistency over time.
3) Developing a set of values is paramount, and companies devote significant resources to developing values through research and ensuring buy-in across functions.
4) Maintaining internal branding requires orientation, training, and structural alignment to reinforce values at all stages of employment.
Research has shown that consumers increasingly want organisations to demonstrate a purpose beyond profit. And so after decades during which the dominant dogma focused on maximising shareholder value and short-termism, many CEO’s are now trying to achieve more. This article explores the business case for purpose and discusses a methodology for CEO’s to activate purpose within their organisation and profit in the process.
STAKEHOLDERS AND NEW PRODUCT DEVELOPMENT FOR COCA - COLAStak.docxdessiechisomjj4
STAKEHOLDERS AND NEW PRODUCT DEVELOPMENT FOR COCA - COLA
Stakeholders and New Product Development for Coca - Cola
ShaRon Jones
South University
Strategic Marketing | MBA6011 S01
Octoberber 2015
Professor: Matula
STAKE HOLDERS AND THEIR INVOLVEMENT
There is a story inside of every bottle that leaves the Coca-Cola bottling plant. The most important stakeholders of our organization, the consumer continues to be the driving force behind these stories. Along with the community, our bottlers, suppliers, partners and nonprofit organizations, and the countless others that share a stake in the organization we have formed a bond that is beneficial to us all. Coca – Cola has relied on them for their valued opinions and insights for the shaping of the sustainability reporting process. Stakeholders are proactively engaged in this yearly accountability tool. In the past, Coca – Cola has engaged the input from internal stakeholders (our employees) as well as external stakeholders (the community). Namely an organization known as Ceres, which is an organization of investors that have formed a coalition to help companies stay up to date with the challenges of sustainability reporting.
http://www.coca-colacompany.com/sustainabilityreport/our-reporting/stakeholder-engagement.html
STAKEHOLDER INPUT IN NEW PRODUCT DEVELOPMENT AND SUCCESS
Coca – Cola created the Golden Triangle partnership to enhance stakeholder involvement work that includes key input from the public, private and civil society sectors. The recognition and embracement of ideas forms collaborative partnerships that achieve a greater collective impact than would be possible by any one organization or sector working in isolation. The Golden Triangle partnership became an integral part of the Coca – Cola business strategy, and when managed well, became a powerful tool for sustainable business growth and progress that was highlighted in their annual sustainability reporting.
http://www.coca-colacompany.com/sustainability/stakeholder-engagement
STRATEGIES USED BY KEY STAKEHOLDERS IN CONTRIBUTION OF NEW PRODUCT AND COMMUNTY DEVELOPMENT
In August of 2015, the first-ever Coca-Cola bottling plant in Laos officially opened for business. This bottling plant located in the Saithani District of the Vientiane province produces Fanta, Coca-Cola, and Sprite beverages along with other popular Coca Cola sparkling brands with a distinct possibility of additional production lines for new beverage products in development at a later date. Before the opening of the Laos plant, Thailand was the major supplier of Coca, Cola products to this area.
“With the establishment of this plant, the Coca – Cola brand proudly manufactures and distributes beverages locally in each of the 10 ASEAN (Association of Southeast Asian Nations) member countries, providing tangible economic benefit to the communities served in that area. This profitable relationship has produced an economic growth annually of 5 percent. This boost in .
B2B Customer Experience Management Best Practice Study PREVIEW SAMPLEClearAction
The Annual ClearAction Business-to-Business Customer Experience Management Benchmarking Study monitors the implementation of best practices in customer-focused management for sustainable high profitability.
This is a study of the journey to world-class performance in how business-to-business firms:
(1) listen to customers,
(2) view customers,
(3) center employees on customers, and
(4) center business on customers.
It explores the motivations behind customer experience management (CEM) and its linkages to corporate goals, strategy, culture, processes, and business results.
THIS IS A SAMPLE OF SELECTED PAGES FROM THE REPORT
See http://ClearActionCX.com
Ponomarenko Anastasiia, digital marketingbrijlalmallik
This document is a 108-page bachelor's thesis written by Anastasiia Ponomarenko in May 2018 for the School of Business at an unspecified university. The thesis develops a digital marketing plan for a B2B company called AMA Co. Ltd. to help them attract new international customers and build their global brand awareness. Through literature reviews, interviews, and a situation analysis of AMA, the thesis aims to determine the most effective digital marketing channels and tactics for B2B companies. The resulting digital marketing plan for AMA includes recommendations on specific digital strategies.
Strategy, of course, has engaged the attention of business people ever since it was first spoken, and many great books have been written in an attempt to expound it.
In spite of all that has been written about business strategy and not wishing to add anything further to the subject in an exhaustive sense, my plan is to contend with something of the advantages that are to be gained by strategists taking a dynamic view of strategy.
This small book covers a range of subjects connected with strategy formulation and management. It should not be taken as the be all and end all of strategy nor should it be considered as an exhaustive piece on the subject. But the 12 items included herein offer the tools to craft superior strategies - without the verbiage!
Analyzing the marketing strategy of soft drinks in bangladeshAlexander Decker
This document analyzes the marketing strategy of RC (Partex Beverage), a soft drink company in Bangladesh. It discusses RC's product line, target market segmentation, pricing strategy, and distribution strategy. A total of 323 soft drink customers were surveyed about their demographics, usage patterns, satisfaction factors, and reasons for drink selection. The strategies aim to optimize resources, deliver superior customer experiences, and target various age and income groups. The pricing considers production costs and competition while ensuring quality, taste, and packaging. Distribution involves dealers, wholesalers and retailers to supply products nationwide.
This document provides a business strategy report for Home Depot. It begins with an introduction to Home Depot's founding and operations. It then analyzes Home Depot's current performance, strategic posture including mission, vision and objectives, and current strategy which focuses on customer service, product authority, and productivity. The report also examines Home Depot's external environment using PESTLE analysis and Porter's Five Forces. It evaluates Home Depot's internal environment including corporate structure, resources, marketing, finances, and human resources. Alternative strategies are proposed and a recommended strategy of interconnected retail is provided, along with plans for implementation and contingencies.
This document provides an outline for a research report on Titan watches' brand positioning and repositioning strategies. The report will include 8 chapters: an introduction discussing brand positioning and repositioning theory; a literature review; research methodology; an industry overview; Titan's company profile; an analysis of Titan's positioning strategies for different segments; an analysis of Titan's recent repositioning strategies including a new logo, tagline, ad campaign, and product designs; and a consumer awareness survey and findings. The objectives are to review Titan's sub-brand positioning strategies, analyze its repositioning strategies, study consumer awareness and perception of the repositioning, and recommend improvements. The introduction defines brand positioning and repositioning and their importance
Business Models: Six recommendations to enable business model innovation in t...melnorman
Advances in technology have disrupted the creative marketplace. What customers value and will pay for has changed and companies who don’t evaluate their existing business models risk losing their relevance.
There is a lot of discussion around reinventing ‘business models’ and ‘strategy’ but there is a lack of clarity about what this means and even less about how to apply it.
So how does this impact the creative industries, which have undergone more change than most sectors over the last 10 years?
The part time Business Model Theme Champion role, funded by and on behalf of the Creative Industries KTN, focused on transferring current business model practice to the creative industries, using that to shape and inform business model innovation and examine how businesses can better articulate new and emergent business models.
This document is not meant as a scientific document or academic paper but a combination of a summary of my learnings from both my year’s tenure, as well as the thoughts and experiences from those who kindly attended workshops and roundtables or were consulted as experts or as leading companies in their field. My intention is to start a conversation around business model innovation in the creative and digital sectors and for the recommendations to be explored further.
Similar to Managing customer relationship case study coca cola company (20)
How to Make a Field Mandatory in Odoo 17Celine George
In Odoo, making a field required can be done through both Python code and XML views. When you set the required attribute to True in Python code, it makes the field required across all views where it's used. Conversely, when you set the required attribute in XML views, it makes the field required only in the context of that particular view.
Reimagining Your Library Space: How to Increase the Vibes in Your Library No ...Diana Rendina
Librarians are leading the way in creating future-ready citizens – now we need to update our spaces to match. In this session, attendees will get inspiration for transforming their library spaces. You’ll learn how to survey students and patrons, create a focus group, and use design thinking to brainstorm ideas for your space. We’ll discuss budget friendly ways to change your space as well as how to find funding. No matter where you’re at, you’ll find ideas for reimagining your space in this session.
हिंदी वर्णमाला पीपीटी, hindi alphabet PPT presentation, hindi varnamala PPT, Hindi Varnamala pdf, हिंदी स्वर, हिंदी व्यंजन, sikhiye hindi varnmala, dr. mulla adam ali, hindi language and literature, hindi alphabet with drawing, hindi alphabet pdf, hindi varnamala for childrens, hindi language, hindi varnamala practice for kids, https://www.drmullaadamali.com
How to Fix the Import Error in the Odoo 17Celine George
An import error occurs when a program fails to import a module or library, disrupting its execution. In languages like Python, this issue arises when the specified module cannot be found or accessed, hindering the program's functionality. Resolving import errors is crucial for maintaining smooth software operation and uninterrupted development processes.
Strategies for Effective Upskilling is a presentation by Chinwendu Peace in a Your Skill Boost Masterclass organisation by the Excellence Foundation for South Sudan on 08th and 09th June 2024 from 1 PM to 3 PM on each day.
ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...PECB
Denis is a dynamic and results-driven Chief Information Officer (CIO) with a distinguished career spanning information systems analysis and technical project management. With a proven track record of spearheading the design and delivery of cutting-edge Information Management solutions, he has consistently elevated business operations, streamlined reporting functions, and maximized process efficiency.
Certified as an ISO/IEC 27001: Information Security Management Systems (ISMS) Lead Implementer, Data Protection Officer, and Cyber Risks Analyst, Denis brings a heightened focus on data security, privacy, and cyber resilience to every endeavor.
His expertise extends across a diverse spectrum of reporting, database, and web development applications, underpinned by an exceptional grasp of data storage and virtualization technologies. His proficiency in application testing, database administration, and data cleansing ensures seamless execution of complex projects.
What sets Denis apart is his comprehensive understanding of Business and Systems Analysis technologies, honed through involvement in all phases of the Software Development Lifecycle (SDLC). From meticulous requirements gathering to precise analysis, innovative design, rigorous development, thorough testing, and successful implementation, he has consistently delivered exceptional results.
Throughout his career, he has taken on multifaceted roles, from leading technical project management teams to owning solutions that drive operational excellence. His conscientious and proactive approach is unwavering, whether he is working independently or collaboratively within a team. His ability to connect with colleagues on a personal level underscores his commitment to fostering a harmonious and productive workplace environment.
Date: May 29, 2024
Tags: Information Security, ISO/IEC 27001, ISO/IEC 42001, Artificial Intelligence, GDPR
-------------------------------------------------------------------------------
Find out more about ISO training and certification services
Training: ISO/IEC 27001 Information Security Management System - EN | PECB
ISO/IEC 42001 Artificial Intelligence Management System - EN | PECB
General Data Protection Regulation (GDPR) - Training Courses - EN | PECB
Webinars: https://pecb.com/webinars
Article: https://pecb.com/article
-------------------------------------------------------------------------------
For more information about PECB:
Website: https://pecb.com/
LinkedIn: https://www.linkedin.com/company/pecb/
Facebook: https://www.facebook.com/PECBInternational/
Slideshare: http://www.slideshare.net/PECBCERTIFICATION
LAND USE LAND COVER AND NDVI OF MIRZAPUR DISTRICT, UPRAHUL
This Dissertation explores the particular circumstances of Mirzapur, a region located in the
core of India. Mirzapur, with its varied terrains and abundant biodiversity, offers an optimal
environment for investigating the changes in vegetation cover dynamics. Our study utilizes
advanced technologies such as GIS (Geographic Information Systems) and Remote sensing to
analyze the transformations that have taken place over the course of a decade.
The complex relationship between human activities and the environment has been the focus
of extensive research and worry. As the global community grapples with swift urbanization,
population expansion, and economic progress, the effects on natural ecosystems are becoming
more evident. A crucial element of this impact is the alteration of vegetation cover, which plays a
significant role in maintaining the ecological equilibrium of our planet.Land serves as the foundation for all human activities and provides the necessary materials for
these activities. As the most crucial natural resource, its utilization by humans results in different
'Land uses,' which are determined by both human activities and the physical characteristics of the
land.
The utilization of land is impacted by human needs and environmental factors. In countries
like India, rapid population growth and the emphasis on extensive resource exploitation can lead
to significant land degradation, adversely affecting the region's land cover.
Therefore, human intervention has significantly influenced land use patterns over many
centuries, evolving its structure over time and space. In the present era, these changes have
accelerated due to factors such as agriculture and urbanization. Information regarding land use and
cover is essential for various planning and management tasks related to the Earth's surface,
providing crucial environmental data for scientific, resource management, policy purposes, and
diverse human activities.
Accurate understanding of land use and cover is imperative for the development planning
of any area. Consequently, a wide range of professionals, including earth system scientists, land
and water managers, and urban planners, are interested in obtaining data on land use and cover
changes, conversion trends, and other related patterns. The spatial dimensions of land use and
cover support policymakers and scientists in making well-informed decisions, as alterations in
these patterns indicate shifts in economic and social conditions. Monitoring such changes with the
help of Advanced technologies like Remote Sensing and Geographic Information Systems is
crucial for coordinated efforts across different administrative levels. Advanced technologies like
Remote Sensing and Geographic Information Systems
9
Changes in vegetation cover refer to variations in the distribution, composition, and overall
structure of plant communities across different temporal and spatial scales. These changes can
occur natural.
Main Java[All of the Base Concepts}.docxadhitya5119
This is part 1 of my Java Learning Journey. This Contains Custom methods, classes, constructors, packages, multithreading , try- catch block, finally block and more.
বাংলাদেশের অর্থনৈতিক সমীক্ষা ২০২৪ [Bangladesh Economic Review 2024 Bangla.pdf] কম্পিউটার , ট্যাব ও স্মার্ট ফোন ভার্সন সহ সম্পূর্ণ বাংলা ই-বুক বা pdf বই " সুচিপত্র ...বুকমার্ক মেনু 🔖 ও হাইপার লিংক মেনু 📝👆 যুক্ত ..
আমাদের সবার জন্য খুব খুব গুরুত্বপূর্ণ একটি বই ..বিসিএস, ব্যাংক, ইউনিভার্সিটি ভর্তি ও যে কোন প্রতিযোগিতা মূলক পরীক্ষার জন্য এর খুব ইম্পরট্যান্ট একটি বিষয় ...তাছাড়া বাংলাদেশের সাম্প্রতিক যে কোন ডাটা বা তথ্য এই বইতে পাবেন ...
তাই একজন নাগরিক হিসাবে এই তথ্য গুলো আপনার জানা প্রয়োজন ...।
বিসিএস ও ব্যাংক এর লিখিত পরীক্ষা ...+এছাড়া মাধ্যমিক ও উচ্চমাধ্যমিকের স্টুডেন্টদের জন্য অনেক কাজে আসবে ...
Leveraging Generative AI to Drive Nonprofit InnovationTechSoup
In this webinar, participants learned how to utilize Generative AI to streamline operations and elevate member engagement. Amazon Web Service experts provided a customer specific use cases and dived into low/no-code tools that are quick and easy to deploy through Amazon Web Service (AWS.)
A review of the growth of the Israel Genealogy Research Association Database Collection for the last 12 months. Our collection is now passed the 3 million mark and still growing. See which archives have contributed the most. See the different types of records we have, and which years have had records added. You can also see what we have for the future.
What is Digital Literacy? A guest blog from Andy McLaughlin, University of Ab...
Managing customer relationship case study coca cola company
1. Xiaojing Ling
MANAGING CUSTOMER RELATIONSHIP
Case study Coca-Cola Company
Thesis
CENTRIA UNIVERSITY OF APPLIED SCIENCES
Degree Programme in Business Management
April 2017
2. ABSTRACT
Centria University of Applied Sciences
Kokkola- Pietarsaari
Date
April 2017
Author
Xiaojing Ling
Degree programme
Degree programme in Business Management
Name of thesis
MANAGING CUSTOMER RELATIONSHIP
Case study Coca-Cola Company
Instructor
Birgitta Niemi
Pages
43
Supervisor
Birgitta Niemi
The Coca-Cola Company is an American multinational beverage corporation, a manufacturer,
retailer and marketer of non-alcoholic beverage concentrates and syrups with its headquarter in
Atlanta, Georgia. This thesis is aimed to affirm the superiority of the Coca-Cola Company and to find
out its shortcomings in managing customer relationships based on studying the customer
relationship management strategy for Coca-Cola Company and discussing the comparison between
Coca-Cola and Pepsi Cola, then put forward the corresponding strategies to solve the problems.
The topic is mainly divided into two parts. In the theoretical part, the definition、development
process and main contents of customer relationship management are stated. In the empirical part, the
author studied the customer relationship management strategy research of Coca-Cola in depth, by
contrast with Pepsi Cola, find out the insufficiency and its reason of the Coca-Cola Co in the
customer relationship management, then put forward the improvement strategy of the customer
relationship management of Coca-Cola Company.
As a result of the thesis, a more effective relationship management strategy for Coca-Cola was
worked out to achieve a win-win between Coca-Cola and customers, meanwhile help Coca-Cola Co
to adhere to the customer as the center, cultivate loyal customers and provide the best quality
service. In addition, the thesis also emphasized the importance of strengthening customer
relationship management.
Key words
Coca-Cola, customer relationship management, strategy, Pepsi Cola, comparison
3. ABSTRACT
CONTENTS
1 INTRODUCTION................................................................................................................................1
2 CUSTOMER RELATIONSHIP MANAGEMENT..........................................................................2
2.1 Creating value for customers ........................................................................................................3
2.2 Customer retention and development ..........................................................................................4
2.3 Models of CRM...............................................................................................................................5
2.4 The connotation of CRM...............................................................................................................7
3 CASE COMPANY: PRESENTATION OF COCA-COLA CO......................................................9
3.1 Company overview.........................................................................................................................9
3.2 Marketing analysis .......................................................................................................................10
3.2.1 The SWOT analysis of Coca-Cola Co. ..............................................................................11
3.2.2 The Porter’s five forces analysis of Coca-Cola Co. ..........................................................12
3.2.3 The PESTEL of Coca-Cola Co. ..........................................................................................15
3.3 Competitor: Pepsi Co...................................................................................................................18
4 COCA-COLA CUSTOMER RELATIONSHIP MANAGEMENT STRATEGY ANALYSIS .21
4.1 Existing strategies of Coca-Cola Company................................................................................21
4.2 Comparison between Coca-Cola and Pepsi-Cola......................................................................25
4.2.1 Customer relationship maintenance strategies..................................................................25
4.2.2 CRM guiding ideology .........................................................................................................26
4.3 Problems and reasons .................................................................................................................27
5 IMPROVEMENT STRATEGIES FOR COCA-COLA ................................................................29
5.1 Customer acquisition strategies..................................................................................................29
5.1.1 Sales promotion....................................................................................................................29
5.1.2 Advertising............................................................................................................................30
5.1.3 Merchandising ......................................................................................................................31
5.2 Customer retention strategies.....................................................................................................31
5.2.1 Creating customer delight ...................................................................................................32
5.2.2 Adding customer-perceived value.......................................................................................33
5.2.3 Doing customer research.....................................................................................................34
5.2.4 Customer development ........................................................................................................36
6 CONCLUSION ..................................................................................................................................38
REFERENCES......................................................................................................................................39
4. GRAPHS
GRAPH 1. Coca-Cola spending on supplier diversity program.............................................................14
GRAPH 2. Beverage consumption in the US .........................................................................................17
GRAPH 3. Leading Global Soft Drink Brands.......................................................................................21
FIGURES
FIGURE 1. The QCi customer management model .................................................................................6
FIGURE 2. The CRM value chain............................................................................................................7
FIGURE 3. Top 20 most valuable global brands 2015...........................................................................10
FIGURE 4. Porter’s Five Forces Model .................................................................................................12
FIGURE 5. The PESTEL Model ............................................................................................................16
FIGURE 6. Customer delight through product quality...........................................................................32
PICTURES
PICTURE 1. The map of Coca-Cola’s location......................................................................................22
PICTURE 2. My coke rewards website (home page).............................................................................34
PICTURE 3. My coke rewards website (registration page) ...................................................................34
TABLES
TABLE 1. SWOT analysis of Coca-Cola Co. ........................................................................................11
TABLE 2. PORTER’s five forces of Coca-Cola Co. .............................................................................12
TABLE 3. Coca Cola vs. Pepsi Co main indicators. ..............................................................................19
TABLE 4. List of Available flavors of Coca-Cola ................................................................................24
TABLE 5. Comparison of CRM between Coca-Cola and Pepsi-Cola ...................................................28
5. 1
1 INTRODUCTION
With the progress of society and development of science and technology, change rapidly, especially
the development of information technology has gone beyond our imagination. The development of
information technology has also promoted the great progress of customer relationship management
(CRM). Customer relationship management has been playing an increasingly important role in the
process of economic development. Nowadays, many companies pay more and more attention to
customer relationship management. The fundamental reason for companies wanting to build
relationships with customers is economic. Companies generate better results when they manage their
customer base in order to identify, acquire, satisfy and retain profitable customers. These are key
objectives of many customer relationship management strategies (Buttle 2009, 31.) If the company's
marketing is grain, then the customer management is a granary. If grain is not managed, sorted,
replaced, it will become worthless waste even if it was put in the granary.
Coca-Cola Company is the world's largest beverage company, refreshing consumers with more than
500 sparkling and still brands and more than 3,800 beverage choices. More than 1.9 billion servings of
our beverages are enjoyed by consumers in more than 200 countries each day. (www.coca-
colacompany.com) How could Coca-Cola Company manage a large number of customer relationships,
this is what this thesis wants to study.
This thesis is aimed to affirm superiority of Coca-Cola Company and to find out its shortcomings in
managing customer relationships based on studying the customer relationship management strategy for
Coca-Cola Company and discussing the comparison between Coca-Cola and Pepsi Cola, and then put
forward the corresponding strategies to solve the problems.
6. 2
2 CUSTOMER RELATIONSHIP MANAGEMENT
In the era of industrial economy, the rapid development of productive forces has changed the situation
of insufficient production capacity and shortage of goods in the whole society. In this case, the
customer's space of choice significantly increased, customer demand began to show personalized
features, market competition has also become very cruel. In order to achieve market sales, products
have to meet customers’ needs. The pattern of the market is changing from seller's market to buyer's
market, and the management idea of the enterprise is gradually shifting from "customer-centric" to
"customer centered". With the rise of network, the world economy come into the era of e-commerce,
the development of information technology makes the idea of customer relationship management
solidified in the form of flow, and contributed to the birth of customer relationship management
system.
Customer Relationship Management (referred to as CRM) originated in the United States. At the
beginning of 1980, the concept of "contact management" was put forward by American, which was a
collection of all the information that customers have to contact with the company. In 1985, Barbara
Bender Jackson proposed the concept of relationship marketing, which made people upgrade to a new
level on the theory of marketing research. In 1990, it has developed customer service that includes
telephone service centers and supports data analysis. In order to meet the needs of the increasingly
competitive market, many American companies began to develop the sales force automation system
(SFA), and then focused on the development of customer service system (CSS). After 1996, some US
companies combined SFA and CSS together, on this basis, integrated computer telephony integration
technology, forming CRM prototype which have a set of sales, services in one and includes the call
center. (Liu 2004.)
There is no strict definition of CRM, which has different meanings depending on whom you
talk with. It is the marketing tool to retain customers’ loyalty. It is a value, an attitude that you take
into your business and with the relations of the customers. Therefore the definitions of CRM vary.
(Roberts-Phelps 2001, 2-3.) On the definition of CRM, different research institutions, companies and
individuals have different statements. The most cited is the definition given by Gartner Group and
IBM.
• The Gartner Group is the first one to introduce the CRM concept, which says "CRM is an
enterprise-wide business strategy designed to increase revenue, profitability and customer
7. 3
satisfaction." Gartner emphasizes that CRM is a business strategy rather than a system that covers
the entire enterprise rather than a department whose strategic goal is to increase profitability, sales
revenue, and improve customer satisfaction. (Ronald 2014.)
• IBM's definition of customer relationship management includes two aspects: at first, the business
objective of the enterprise, that is, through a series of technical means to understand the current
needs of customers and the requirements of potential customers; secondly, enterprises have to
achieve completeness and consistency of a customer's information by integrating all aspects of
information. IBM believes that customer relationship management is the entire business process
that includes company identifying, picking, acquiring, developing, and maintaining customers.
(Ronald 2014.)
CRM can be divided into different types: strategic CRM, operational CRM, analytical CRM and
collaborative CRM. Some of the differences of opinion can be explained by considering that a number
of different types of CRM have been identified. Strategic CRM is a core customer-centric business
strategy that aims at winning and keeping profitable customers. Operational CRM focuses on the
automation of customer-facing processes such as selling, marketing and customer service. Analytical
CRM focuses on the intelligent mining of customer-related data for strategic or tactical purposes.
Collaborative CRM applies technology across organizational boundaries with a view to optimizing
company, partner and customer value. (Buttle 2009.)
According to Roberts-Phelps (2001) three things can be highlighted concerning customer
relationship conscious business: retention, customer potentiality and de-selection of customers.
Too many businesses concentrate on getting new customers instead of keeping their old ones and
developing deeper relationships with them. Secondly, businesses should focus on customers as
individuals and find a way to make them more frequent customers. Third thing is to identify the
most potential customers who are worth keeping. Not every customer is profitable in long-term
due to differencing customer groups. (Robert-Phelps 2001, 2–14.)
2.1 Creating value for customers
Although the term “value” is used in a number of different ways, in a CRM sense it can be thought of
as follow:
Value is the customer’s perception of the balance between benefits received from a product or
service and the sacrifices made to experience those benefits. (Zeithaml 1988, 2-22.)
8. 4
It is possible to represent this definition in the form of an equation:
The equation shows that you can increase the customer’s perceived value in two main ways: increase
the benefits they experience, or decrease the sacrifices they make. (Buttle 2009, 186-187.)
It is the job of professional marketers to develop the offers that create value for customers: the so-
called value proposition. A value proposition is the explicit or implicit promise made by a company to
its customers that it will deliver a particular bundle of value-creating benefits.
The main aim of CRM is to establish the mutually beneficial relationship with customers. The
approach to reach this goal is to customize the value proposition to acquire and retain targeted
consumers. Therefore, the value delivery is the main duty for marketing people. Marketing mix
is the most useful tool to analyses value proposition, as the well-known marketing mix
composed by 4Ps: product, price, promotion and place. Moreover, this approach is widely applied
in many business sectors, and this is a fundamental approach to analyses value creating for consumers.
Nowadays, service is paid high attention from the marketing point of view. Hence additional 3Ps
(people, physical evidence and process) are added to create more value to consumers. (Buttle 2009,
186-197.)
2.2 Customer retention and development
A customer retention strategy aims to keep a high proportion of valuable customers by reducing
customer defections (churn), and a customer development strategy aims to increase the value of those
retained customers to the company. Just as customer acquisition is focused on particular prospects,
retention and development also focus on particular customers. Focus is necessary because not all
customers are worth retaining and not all customers have potential for development. ( Buttle 2009,
257.)
Customer retention is the maintenance of continuous trading relationships with customers over the
long term. Customer retention is the mirror image of customer defection or churn. High retention is
equivalent to low defection. (Ahmad & Buttle 2001, 29-45.) Conventionally, customer retention is
defined as: Customer retention is the number of customers doing business with a firm at the end of a
9. 5
financial year, expressed as percentage of those who were active customers at the beginning of the
year. (Dawkins & Reichheld 1990, 42-47.)
Improving customer retention is an important objective for many CRM implementations. Its definition
and measurement need to be sensitive to the sales, profitability and value issues discussed previously.
It is important to remember that the fundamental purpose of focusing CRM efforts on customer
retention is to ensure that the company maintains relationship with value-adding customers. It may not
be beneficial to maintain relationships with all customers; some may be too costly to serve, others may
be strategic switchers constantly in search of a better deal. These can be value-destroyers, not value-
adders. (Buttle 2009, 260.)
Some companies prefer to focus their retention efforts on their recently acquired customers. They often
have greater future lifetime value potential than longer tenure customers. There is some evidence that
retention rates rise over time, so if defections can be prevented in the early stages of a relationship,
there will be a pay-off in future revenue streams. A further justification for focusing on recently
acquired customers comes from research into service provider. In other words, customers who have
been recently acquired and let down are more likely to defect or reduce their spending than customers
who have a satisfactory history with the supplier. (Bolton 1998, 46-65.)
Retention efforts where there is portfolio purchasing can be very difficult. Should effort be directed at
retaining the high-share customer with whom you have a profitable relationship, the medium-share
customer from whom you might lose additional share to competitors or the low-share customer from
whom there is considerable lifetime value potential? The answer will depend on the current value of
the customer, the potential for growing that value, and the cost of maintaining and developing the
relationship.
2.3 Models of CRM
Three basic CRM models will be introduced in this part.
The IDIC model developed by Peppers and Rogers, the consultancy firm, and has featured in a number
of their books (Peppers & Rogers 2011). The IDIC model suggests that companies should take four
actions in order to build closer one-to-one relationships with customers:
10. 6
• identify: who your customers are and build a deep understanding of them
• differentiate: your customers to identify which customers have most value now and which offer
most for the future
• interact: with customers to ensure that you understand customer expectations and their
relationships with other suppliers or brands
• customize: the offer and communications to ensure that the expectations of customers are met
The QCi model shown in FUGURE 1 is also a product of a consultancy firm. (Woodcock, Stone &
Foss 2002) The model’s authors prefer to describe their model as a customer management model,
omitting the word ‘relationship’. At the heart of the model they depict a series of activities that
companies need to perform in order to acquire and retain customers. The model features people
performing processes and using technology to assist in those activities.
FIGURE 1. The QCi customer management model (adapted from SABTU 2010)
Francis Buttle’s model was the subject of a recent book. (Buttle 2004) The model, as shown in
FIGURE 2, consists of five primary stages and four supporting conditions leading towards the end goal
of enhanced customer profitability. The primary stages of customer portfolio analysis, customer
intimacy, network development, value proposition development and managing the customer lifecycle
are sequenced to ensure that a company, with the support of its network of supplier, partners and
employees, creates and delivers value propositions that acquire and retain profitable customers. The
supporting conditions of leadership and culture, data and IT, people and processes enable the CRM
strategy to function effectively and efficiently.
11. 7
FIGURE 2. The CRM value chain (adapted from SABTU 2010)
2.4 The connotation of CRM
CRM is a new management mechanism to improve the relationship between enterprises and customers,
it is implemented in marketing, service and technical support and customer related field. The core idea
and connotation of customer relationship management include the following aspects:
• CRM is a business philosophy
CRM is a new business philosophy, rather than a database application. The concept of enterprise
changed from the "production concept, product concept" to "marketing concept", so which the
business really operated is "customer" rather than "product"". Before we design a suitable solution, we
have to first establish a customer-centered business philosophy, to find out who our customer is, how
to define the customer relationship, and how to correctly treat our customers. (Liu 2004.)
• Customer is the basis for enterprise survival and development is one of the most important
resources
Business model has been from the "product-centric" to "customer-centric", the essence of market
competition is to compete for customer resources. The integrated management of customer
information in customer relationship management system reflects the customer as one of the enterprise
resources management. Through the in-depth analysis of customer information, application marketing
twenty-eight rule will significantly increase the business performance. (Liu 2004.)
12. 8
• CRM is a kind of full management of the relationships between the business and the customer.
The relationship between the enterprise and the customer, including not only the sales process
occurred in the business relationship, such as negotiation, signing the contract, delivery, payment, etc.,
but also a variety of relationship happened in the process of corporate marketing and after-sales
service. Such as many-to-many relationships between companies and potential customers or target
customers in the process of marketing and contact, records of customer care activities, service content,
service performance in the after-sales service process. (Liu 2004.)
13. 9
3 CASE COMPANY: PRESENTATION OF COCA-COLA CO.
In this part, Coca-Cola Company overview and the whole beverage industry background will be
presented. After that, the main competitor of Coca-Cola Co., Pepsi Cola Co. will be described.
3.1 Company overview
The Coca-Cola Company is the world's largest beverage company, refreshing consumers with more
than 500 sparkling and still brands and more than 3,800 beverage choices. Led by Coca-Cola, one of
the world's most valuable and recognizable brands (FIGURE 3), the company’s portfolio features 20
billion-dollar brands, 18 of which are available in reduced-, low- or no-calorie options. The company’s
billion-dollar brands include Diet Coke, Coca-Cola Zero, Fanta, Sprite, Dasani, vitaminwater,
Powerade, Minute Maid, Simply, Del Valle, Georgia and Gold Peak. Through the world's largest
beverage distribution system, the company is the No. 1 provider of both sparkling and still beverages.
More than 1.9 billion servings of our beverages are enjoyed by consumers in more than 200 countries
each day. With an enduring commitment to building sustainable communities, the company is focused
on initiatives that reduce our environmental footprint, create a safe, inclusive work environment for
our associates, and enhance the economic development of the communities where we operate.
Together with the bottling partners, the company rank among the world's top 10 private employers
with more than 700,000 system associates. (www.coca-colacompany.com)
Coca-Cola is a carbonated soft drink sold in stores, restaurants and vending machines in more than 200
countries. It is produced by The Coca-Cola Company and is often referred to simply as Coke or (in
European and American countries) as Cola or Pop. Originally intended as a patent medicine when it
was invented in the late 19th century by John Stith Pemberton, Coca-Cola was bought out by
businessman Asa Griggs Candler, whose marketing tactics led Coke to its dominance of the world soft
drink market throughout the 20th century. (Langguth-America 2016)
The company produces concentrate, which is then sold to various licensed Coca-Cola bottlers
throughout the world. The bottlers, who hold territorially exclusive contracts with the company,
produce finished product in cans and bottles from the concentrate in combination with filtered water
and sweeteners. The bottlers then sell, distribute and merchandise Coca-Cola in cans and bottles to
14. 10
retail stores and vending machines. Such bottlers include Coca-Cola Enterprises, which is the largest
single Coca-Cola bottler in North America and Western Europe. The Coca-Cola Company also sells
concentrate for fountain sales to major restaurants and food service distributors.
FIGURE 3. Top 20 most valuable global brands 2015 (adapted from Brown 2015)
3.2 Marketing analysis
Coca-Cola is world’s leading soft drink maker and operates in more than 200 countries around the
world. It sells a variety of sparkling and still beverages. It generates 60 % of its revenue and about 80 %
of its operating profit from outside the United States. It has strong brand recognition across the globe.
According to business insider, approximately 94 % of the world population is aware of the red & white
logo of Coca-Cola. Marketing is the process for mutual interest between the entrepreneur and
15. 11
the customers. The key point of marketing is to identify the demands of the customers and meet the
needs of the customers. (Hitesh 2016.)
3.2.1 The SWOT analysis of Coca-Cola Co.
SWOT analysis is used to evaluate a company’s strengths, weakness, opportunities and threats
in the market. The analysis involves analysis of internal resources and external environmental. It aims
are to provide the competitive insight into potential problems that may make an effect on the success
of the company. (Business Dictionary 2011.)
TABLE 1. SWOT analysis of Coca-Cola Co.
Strengths: Weakness:
World’s leading brand
Large scale of operations
Robust revenue in growth
Distribution network
Strong brand image
Low cost of operation
Negative publicity
Sluggish performance from other countries
Decline in cash from operating activities
Health care issues
Opportunities: Threats:
Acquisitions
Growth bottled water market
Large domestic markets
Export potential
High income among people
Intense competition
Dependence on bottling partners
Sluggish growth of carbonated beverages
Imports
Tax and regulatory sector
Slowdown in rural demand
A SWOT analysis is the simplest and a useful tool to analyses the strengths, weaknesses, opportunities
and threats companies meet. It helps a company develop its strengths and eliminating its threats.
Moreover, turning threats to opportunities is the big challenge for companies, while it is a great
opportunity to compete in the market and get more profits and benefits in the long-term. Strengths and
weaknesses are the internal to a firm, but opportunities and threats are often external for a firm.
Therefore, a SWOT analysis is also called an Internal-External analysis, which helps the company to
set up a business plan and eliminate threats and weaknesses, develop more strengths and opportunities.
(Mind Tools 2016.)
16. 12
3.2.2 The Porter’s five forces analysis of Coca-Cola Co.
The Porter's five forces model is used to examine competitors in companies or industries. By using a
simple framework, analysts and potential investors can get a powerful point of what factors could
affect profitability of a company.
Frameworks such as the Porter's five forces model seem very simple, but it is important to understand
how a company competes in an industry and what factors could complicate that competition before
investing, especially for longer positions. In this way, you can evaluate the possibility of achieving the
sales target. In addition, you can find a breakthrough in the field of growth in its industry, which can
bring you greater returns. (Butler 2015.)
Porter suggested that the intensity of competition in a market could be measured by the analysis below:
FIGURE 4. Porter’s Five Forces Model (adapted from Porter 1980)
TABLE 2. PORTER’s five forces of Coca-Cola Co.
Threat of new entrants Brand image, retailer, bottling network
Threat of substitute products or services Juice, coffee, water, beer
Bargaining power of suppliers Raw materials, such as sugar
Bargaining power of buyers Vending machines, grocery stores, etc.
Rivalry among existing firms Industry Competitors, such as Pepsi
New entrants who come to the beverage industry are another possibility. Although Coca-Cola and its
competitors and other companies have a special permit trading, including the sale of the products in
17. 13
the fast-food chain, and different distribution of transactions, another company could gain a foothold if
it hit into the trends at the right time. Granted, it would have to have a very positive and very viral
image or spend a fortune to create the type of brand recognition Coca-Cola enjoys, but it is not
impossible.
In addition, as consumers move towards healthier choices, it would not necessarily have to be a single
new entrant that causes a problem for the beverage behemoth. Several new entrants who come into the
industry at once could fragment it to the point that it affects Coca-Cola’s bottom line. This threat
becomes more of a possibility as smaller companies attempt to enter the beverage market, . It may not
be very likely, but anyone investing in Coca-Cola should at least keep an eye on the competitive
landscape. (Butler 2015.)
Similarly, Coca-Cola also has to contend with what buyers could purchase instead of what the
company wants to sell. For instance, customers could start drinking coffee instead of Coke. If the rise
of Starbucks has shown anything, it is that people really love to drink coffee in the right environment
and with the right flavorings. Coca-Cola has a stake in Green Mountain Coffee Roasters, the maker of
Keurig, possibly for just this reason.
Buyers could also choose beverages such as fresh smoothies or fresh juices instead of Coca-Cola's
bottled beverages. As more and more people become health-conscious, the threat of a trend forming in
which buyers substitute a different drink for Coca-Cola products becomes more likely. Again, Coca-
Cola is popular in the world, but investors need to make sure that they are aware of the competitive
landscape in which the company operates if they are going to make informed decisions about whether
to invest and how long to hold on their investments if they do. (Butler 2015.)
The main ingredients for soft drink include carbonated water, phosphoric acid, sweetener and caffeine.
The suppliers of these are not concentrated or differentiated. Any supplier can be replaced easily
because of universality of raw materials. Besides, Coca-Cola is likely a large or the largest customer of
any of these suppliers. So Coca-Cola will not worry about the loss of suppliers. As it is illustrated in
GRAPH 1 below, the volume of investment on supplier diversity has been consistently increasing for
the past four years from 2010 to 2013.
18. 14
GRAPH 1. Coca-Cola spending on supplier diversity program (adapted from Supplier Diversity 2015)
In addition, sugar is a commodity; like other commodities, its price varies over time and with
availability. A few natural disasters could affect sugar cane harvests and impact Coca-Cola's raw
materials costs. Thanks to contracts the company likely has in place, the effect would be minimal
unless those disasters occurred repeatedly over the course of several years.
When it comes to the bottled beverages market, buyers have considerable bargaining power, and this
affects the bottom line of Coca-Cola directly. Coca-Cola does not sell directly to its end users. Instead,
it mainly deals with the distribution of fast food chains, vending machines, university campuses and
grocery stores. Demand leads the purchases, Coca-Cola also has to keep an eye on what the end price
will be. Ultimately, Coca-Cola has to sell its products to distribution networks and other customers at
prices low enough that they can sell to the end user at a price that keeps them coming back.
Moreover, Coca-Cola's pricing is also consistent with each export. After all, McDonald's does not sell
a Coke for 99 cents one day and $1.03 the next. As Coca-Cola's cost of goods sold (COGS) fluctuates
due to materials, manpower or transportation, either the beverage company or its distribution
companies have to absorb the changes in price. (Butler 2015.)
19. 15
When you think of Coca-Cola and its competitors, Pepsi may be one of the first rivals to come to mind,
and rightfully so. The two companies have been competing with each other since the late nineteenth
Century. They have very similar ingredients in their marquee products and some very similar products:
Coke and Pepsi. The two companies also have similar non-soda benefits, such as bottled water and
orange juice. Pepsi also owns Quaker Oats, Doritos and Rice-A-Roni, which has changed its way of
competition. Most notably, if the trend do against soda and bottled drinks, Pepsi may be able to bet on
other lines. Coca-Cola does not have the same chance.
Coca-Cola also directly competes against the Dr. Pepper Snapple Group. Although Dr. Pepper Snapple
does not have a cola, it has some big brands in the soft drink and juice markets, including its
namesakes Dr. Pepper and Snapple as well as A&W Root Beer and Sunkist. In some ways, not having
a cola could play a role in the Dr. Pepper Snapple Group's advantage. As popular as Coca-Cola is, a
trend towards beverages with less caffeine could reduce its sales in the product line. With the shift in
consumer trends, Coca-Cola may be vulnerable, but the beverage company does have loyal followers.
The risk in this area is moderate. (Butler 2015.)
3.2.3 The PESTEL of Coca-Cola Co.
A PESTEL analysis is a framework or tool used by marketers to analyze and monitor the macro-
environmental (external marketing environment) factors that have an impact on an organization.
(Kolter & Kevin 2011, 66). As we can see the model in FIGURE 5, the PESTEL model includes
Political, Environmental, Social, Technological, Legal and Economic these six factors. PESTEL
analysis on Coca Cola Company is important because it helps in identifying and analyzing actions that
are necessary and important to activate the company immediately. The current environment is
changing continuously. Competition and advancement in technology are among the factors that force
this company to think strategically so that it can make instant and quick decisions.
20. 16
FIGURE 5. The PESTEL Model (adapted from changefactory)
The Food and Drug Administration (FDA) treats non-alcoholic beverages such as Coca-Cola as within
the food category. The government regulates the manufacturing procedure process of these products.
Companies that fail to meet the government's standards are subject to fines. Coca-Cola is impacted by
a set of political factors, not only in the US but also on abroad, also subject to the Occupational Safety
and Health Act and to local, state, federal, and foreign environmental regulation. These include, but
not limited to the level of political stability of the country, the impact of international pressure groups,
domestic market lobbying groups and the government attitude towards the industry and the company.
There are some governments such as the Chinese government that have regulations that all companies
operating in their countries must meet in terms of the products they supply. As a result, starting to
distribute or supply Coca-Cola products in this country requires the company to meet these standards.
In this way, Coca-Cola can avoid conflict with the government. In addition, Coca-Cola must consider
the beliefs that people in the region have before entering a new market. For example, before Coca-Cola
started distributing its beverages in Malaysia, the Muslim symbol had to be incorporated as a Halal
stamp in the products. Changes in laws and regulations, changes in international political regulations
and civil wars are among the common political factors that affect the operations of Coca-Cola
Company.
Water depletion can be specified as an environmental factor with the biggest impact on Coca-Cola
business operations since water is the main resource for the company beverages. Performance of Coca-
Cola can also be indirectly impacted by a set of ecological factors such as global warming, air
pollution, thickening of ozone layer and others. Moreover, the impact of environmental factors on
Coca-Cola performance can be direct as well in cases of environmental disasters such as earthquakes,
21. 17
flooding, tornados etc. Any corporation of a size of Coca-Cola is expected by stakeholders in general,
general public and non-governmental organization in particular to behave in a socially responsible
manner and to illustrate commitment in dealing with a wide range of environmental issues. Neglecting
this expectation may result in damage to the brand image via negative online and offline press
coverage. Coca-Cola addresses this issue according to its CSR policy that aims to deal with the
problems of excessive energy and water consumption, labor and human rights, depletion of natural
resources in general and water in particular and others.
A number of American people are increasingly interested in healthy lifestyles. This has seriously
affected the sale of the non-alcoholic beverage industry for many customers turn to bottled water and
Coca-Cola Light or Zero. The pursuit of healthy lifestyle and increasing level of consumer health
concerns towards obesity fuelled by sugar and carbonated drinks can be specified as the most
important social change that has direct and significant effect on Coca-Cola performance. Specifically,
as it is illustrated in GRAPH 2 below, the amount of soft drinks consumption in the US has
experienced a steady decline during the past 15 years, at the same time when the level of consumption
of bottled water and the sports drinks has increased substantially. Coca-Cola is also greatly impacted
by additional range of social factors such as demographic changes, changing family values and family
patterns, media perception of the brand and health and welfare of target customer segment.
GRAPH 2. Beverage consumption in the US (adapted from The New York Time 2014)
Technology is the main factor in the analysis of any industry. Similar, the beverage company, Coca-
Cola, needs excellent machinery that is helpful in manufacturing better quality products in high counts.
22. 18
Generally, prominent technological factors that impact Coca-Cola include industry-specific
technological innovations and breakthroughs, decreasing life cycle of technology, changes in energy
consumption practices, shifts in manufacturing maturity and capacity and others. Coca-Cola has
proved to be proactive in terms of taking advantage of technology to gain competitive advantage in the
marketplace via introducing internet-connected vending machines that reports sales, inventory and
service issues to the nearest distribution center, granting the possibility of paying vending machines
with mobile wallets and equipping Coca-Cola vending machines with interactive features. In addition,
to promote its products, Coca-Cola used social media to help run advertisements and connect with its
customers. Their name campaign had been very successful as customers lined up to take pictures of
bottles with their name on it. These photos trended on social media sites such as Twitter and Facebook
and helped driving sales of the company.
There is a wide range of rules and regulations relating to employee health and safety, consumer
protection laws, employment laws, and competitive rules and regulations that need to be adhered fully
adhered by Coca Cola. Changes in these rules and regulations are most likely to impact Coca Cola
performance in direct and indirect manner and in ways that are difficult to predict. Due to its size and
scope of operations, Coca Cola has to deal with legal issues in a regular manner.
Coca-Cola sales are impacted by a set of economic factors that beyond of company’s control. These
factors include the level of economic growth in the country and in the industry, tax rates and currency
exchange rates, interest rates, labor costs and others. The global economic and financial crisis during
2007 to 2009 is a relevant example of an economic factor that the majority of enterprises in the world
had a great impact. However, compared to many other businesses, this crisis has impacted Coca-Cola
to a lesser extent. Its operating margin remained at industry-front 22 % despite the crisis, although
dividend yield was reduced to 2.6 %. Arguably, a fluctuation in exchange rate is the most significant
economic factor that has adversely impacted Coca-Cola performance in recent years. In instance, due
to the devaluation of Venezuela's currency, Coca-Cola reported that the market's profit in the fourth
quarter of 2014 must be reduced by 55 %, while there are similar instances in other parts of the world.
(McGrath 2015)
3.3 Competitor: Pepsi Co.
Pepsi Co. is one of the world's top consumer product companies with many of the world's most
important and valuable trademarks. Its Pepsi-Cola Company division is the second largest soft drink
23. 19
business in the world, with a 21 per cent share of the carbonated soft drink market worldwide and 29
per cent in the United States. Three of its brands Pepsi-Cola, Mountain Dew, and Diet Pepsi among the
top ten soft drinks in the U.S. market. (Reference for Business 2017)
Pepsi Co. has its accurate enterprise positioning: it finds the market from the young people, positions
itself as a new generation of Coke and chooses the appropriate brand spoke person. Pepsi Co. decides
its main customer group due to this positioning and further determines that Pepsi should improve the
services of young people in order to meet their individual needs so that it can enhance the product
satisfaction and loyalty of young people.
Pepsi Co is the main competitor for Coca Cola and Coca Cola possesses no clear and sustainable
competitive advantage over Pepsi Co. As illustrated in TABLE 3 below, Pepsi Co.’s market
capitalization of $147 billion is close to Coca Cola’s $184.3 billion and there are no major differences
between the key performance indicators of two companies. Also, Pepsi Co.’s also portfolio also
possesses a range of global valuable brands such as Gatorade, Tropicana, Lipton and Starbucks RTD
beverages. The absence of clear competitive advantage is associated with a constant risk of losing
market share to Pepsi Co. ( The street 2015)
TABLE 3. Coca Cola vs. Pepsi Co main indicators. (Data adapted from The street 2015)
Performance indicators Coca-Cola Pepsi-Cola
Market capitalization $184.3 billion $147 billion
Number of billion-dollar brands
in portfolio
20 22
Average annual growth rate 9% 9%
Dividend yield 2.9% 2.7%
Constant-currency adjusted
earning-per-share
7.9% 9%
Share price advance for last 12
months
13% 25%
24. 20
Thinking on the choice of CRM strategy for Pepsi:
Industry: Pepsi Co. belongs to retail, where will not have much volatility in the recent and the future.
The situations that sales will be increased or declined excessively will not happen.
Enterprise: Pepsi's strategic intent is to realize completely beyond Coca-Cola, occupy the leading
position in the global coke consumer goods industry. In order to achieve this strategic goal, Pepsi Co.
has to constantly improve their own products based on customer positioning. This strategic approach
just meet “customer-centric” CRM’s needs, which Pepsi's strategic intent is to truly achieve a complete
beyond Coca-Cola, occupy the leading position in the global coke consumer goods industry.
Competition: Compared to Coca-Cola, relative advantage of Pepsi-Cola lies in its market positioning.
Due to the particularity of Cola products, young people become the main customer base, Pepsi seizes
this feature at first to make it in a relatively advantageous position in the competition with Coca-Cola.
There are significant barriers for those potential competitors to entry coke industry, due to Coca-Cola
and Pepsi-Cola has been quite mature in the coke industry and almost carve up the whole coke
industry. So the potential entrants of coke industry is not only no acquired advantage but also in
competitive disadvantage.
Channel: Pepsi has a relatively perfect channel, such as in China Pepsi has been established more than
40 wholly-owned or joint venture enterprises, and more than 20 cities with more than 20 bottling
plants and a wholly-owned concentrated liquid field, besides, Pepsi also has a large number of
suppliers and distributors. The above capital accumulation determines the absolute advantage of Pepsi
Cola in the channel.
Customer: the positioning of Pepsi-Cola determines that the Pepsi’s main customer base is the youth.
The group characteristics of the young people is pursuing the fashion and worshipping the idols, which
is very conducive to the development of Pepsi Cola.
25. 21
4 COCA-COLA CUSTOMER RELATIONSHIP MANAGEMENT STRATEGY ANALYSIS
In this part, the customer relationship management strategy of Coca-Cola will be presented. After that
the author will analyze the comparison between Coca-Cola and Pepsi-Cola, then some problems and
their reasons will be described.
4.1 Existing strategies of Coca-Cola Company
At present, Coca-Cola Co.'s customer relationship management strategy is mainly reflected in the
following three aspects:
1. The point of sale is vivid, customer can purchase more conveniently and comfortably.
As we can see in GRAPH 3 and PICTURE 1, Coca-Cola is the first brand of global soft drinks in the
world, its products appear in more than 200 countries around the world, which has exceeded the
number of members of the United Nations Member States, it accounts for 50 % of the global soft
drinks market, the total market value ranks the third in the top 500.
GRAPH 3. Leading Global Soft Drink Brands (adapted from Market Realist 2014)
26. 22
PICTURE 1. The map of Coca-Cola’s location (adapted from www.coca-colacompany.com)
The reason why Coca-Cola can be enduring for centuries, settle down and expand in the world is that
Coca-Cola has a good understanding and implementation of its "3A" strategy, that is to say,
Availability; Affordability and Acceptability. It can even be said that the entire Coca-Cola system is
working around the "3A" strategy. Although it is easy to say that the products should be sold to
consumers’ hands and hearts, it is a quite difficult system engineering to complete. So it is worth
thinking about how to sell the products to the consumers’ hands and hearts. (Li 2010.)
"Availability" is a simple word rather than a simple thing. At the same time, "Availability" is also an
important prerequisite for the sale of products to consumers. It is possible to be purchased by
consumers only if the products occupy the terminal market and meet with customers at the point of
sale. As we all know, the beverage belongs to the impulsive and random purchase products, when
consumers purchase drink, they will generally choose their habitual drink brand, but if there is not this
brand, it will be easily replaced by other brand. Few consumers will be willing to run two miles to buy
a bottle of drink even they like that brand. Here to tell us, if they want to grasp every opportunity to
sell the products to consumers, they have to expand the distribution of products. Let us take a look at
how Coca-Cola did or is doing in order to achieve the word "Availability". (Li 2010.)
27. 23
In the aspect of terminal channel development:
For example, in Beijing, Coca-Cola has as many as 100,000 sales outlets, including supermarkets,
department stores, street shops, night bars, hotels, Internet cafes and gas station convenience stores.
Coca-Cola can be said to be everywhere. One of the important reasons why Coca-Cola can be
ubiquitous widely is to continue to develop new channels. Except traditional channels, Coca-Cola
combined with the relationship between channel characteristics and categories of products. for instance,
The diet cola is sold in diabetes food market. Thus, the key steps of the development of new channels
depend on discovery, excavation and upgrading. In fact, Coca-Cola can continue to develop new
channels, the main driving force comes from the sales staff business assessment of the "new customers
active" indicators, the indicators in the total assessment of 30 %. This allows Coca-Cola sales staff to
keep an eye on the area under their jurisdiction whether there is a new store or a new channel for the
sales of coke. (Li 2010.)
In the aspect of terminal channel management
If you think you can sleep without any anxiety as long as the product is fully paved to the various
outlets, you are completely wrong. Go to the market and walk around, you can easily see many
products are covered with dust in the corner and nobody shows any interest in. The final purpose of the
product sale is to put the products on consumers’ hands rather than put them in the shop. Therefore, the
management of terminal channel is equally important as development. In order to manage the sales
terminal, Coca-Cola prepared a sales toolkit for each sales staff, this is a good guide for the terminal
channel management of the sales staff by training them how to make price tags, how to post
propaganda posters, how to use freezers and so on. At the same time, there is also a rigorous valuation
for sales staff on execution of vivid selling points and organized a special department to track. The task
sales of vivid work directly linked with the sales staff salary evaluation, which is a good guarantee of
sales staffs’ execution force. (Li 2010.)
2. Introducing different flavors of coke to meet personal demand
A large number of surveys show that there are a large group of consumers who like to pursue fashion
and innovation, coke will be like a mobile phone to diversify, as we can see in TABLE 4, Coca-Cola
puts more emphasis on meeting the needs of all consumers, which requires Coca-Cola products
continue to innovate and launch different flavors to meet different consumers’ tastes. This is called
"Acceptability" in the Coca-Cola 3A strategy.
28. 24
TABLE 4. List of Available flavors of Coca-Cola (HubPages 2013)
Types flavors
Coca-Cola(classic) Coca-Cola
Cherry Coke
Raspberry Coke
Coke with Lime
Vanilla Coke
Orange Coke
Diet Cola Diet Coke
Diet Cherry Coke
Raspberry Diet Coke
Orange Diet Coke
Diet Coke with Lime
Diet Vanilla Coke
Coca-Cola Zero Coca-Cola Zero
Cherry Coke Zero
Vanilla Coke Zero
Caffeine-Free Diet Coke Caffeine-free Diet Cherry Coke
Caffeine-free Diet Raspberry Coke
Caffeine-free Diet Vanilla Coke
Caffeine-free Diet Coke with Lime
Caffeine-free Diet Coke with Orange
3. Establishing a good brand image to improve customer loyalty
According to American Marketing Association (AMA), a brand is a name, term, sign, symbol, or
design, or combination of them, intended to identify the goods and services of one seller or group of
sellers and to differentiate them from those of competition. Another approach from Mr. Philip Kotler,
he defined a brand as a "name, term, sign symbol (or a combination of these) that identifies the maker
or seller of the product" (Kotler, Armstrong, Saunders & Wong 1999, 571).
“A unique set of associations in the mind of customers concerning what a brand represents for and
the implied promises the brand makes.” There could be hardly anyone around the world that has not
heard the name Coca-Cola. Since its beginning as world's leading name in cold drinks, Coca-Cola has
29. 25
created a strong brand image regardless of sex, age and geographical locations. Millions of people
around the world are drinking cold drinks or soft drinks as part of their daily diet. Coca-Cola, since its
inception has been the leader in soft drink market. Brand image is an important factor affecting Coke’s
sale. Coca-Cola’s brand name is very famous all over the world. Packaging changes have also affected
sales and industry positioning, but in general, the public has tended not to be affected by new products.
Coca-Cola’s bottling system also allows the companies to take advantage of unlimited growth
opportunities around the world. This strategy gives Coca-Cola the chance to service a large geographic,
diverse, area. (Li 2010.)
Coca-Cola Company has strict requirement for every factory. If the Quality Inspection Center checks
that the product purchased by consumers is below a certain standard, the advertising costs of the plant
are immediately terminated until the target has been completely improved. We can see the brand value
of Coca-Cola is based on the quality and these two factors are directly linked. “Acceptability” can be
guaranteed only if these two factors are combined together. Thus, Coca-Cola set up a good brand
image can improve customer loyalty to the product, and then better to maintain customer relationships.
(Li 2010.)
4.2 Comparison between Coca-Cola and Pepsi-Cola
4.2.1 Customer relationship maintenance strategies
In the aspect of consumer, Coca-Cola Co. hopes their products will be easier to buy and produce
different flavors to meet individual demand, and also establish a good brand image to improve
customer loyalty. While Pepsi Co. has not so many flavors as Coca-Cola, the only thing Pepsi does is
making product vivid in order to convenient for customers to buy.
In the aspect of retailer, Coca-Cola always cooperates with different stores to effectively enhance and
consolidate customer relationships and provides deep freezer for retailers in the interest of reducing
their costs. Compared to Coca-Cola, Pepsi Co. puts more emphasis on understanding customers’
requirements as well as providing better service. In addition, Pepsi committed to maintaining
billboards to enhance its brand image.
In the aspect of dealer, Coca-Cola follows close to the line of 1.5 times of the principle (Li 2010.),
after that it can guarantee the dealers have sufficient inventory, reduce the possibility of out of stock,
ensure that customers can buy products required from dealers at any time, help dealers not to miss the
30. 26
chance of every transaction. However, for Pepsi, their give cost advantages to dealers by using price
concessions or discounts; support credit to solve the problem of shortage of funds; provide free travel
to improve customer satisfaction.
4.2.2 CRM guiding ideology
Coca-Cola:
Only consumers are the real source of sales and profits. Therefore, improving consumer brand loyalty,
satisfaction and acceptance is the fundamental of all long-term action of Coca-Cola. Coca-Cola is a
partner in the business rather than a simple product supplier.
The following statement is five principles of Coca-Cola’s CRM (Chinadmd 2016.):
Customer-focused
Take advantage of listening skills
To overcome objections, problems and complaints
To maintain and improve self-esteem
To make angry customers calm down and change their minds and views
Pepsi-Cola:
Caring for customers, consumers and the world in which we live——Pepsi Co. is motivated by strong
market competition, but the goal of competition is to bring a win-win for Pepsi and its associated
individuals and groups. Pepsi's success depends on in-depth knowledge of customers, consumers and
the community. Care also means that Pepsi will make unremitting efforts for its interests. The quality,
price and the development of new products are identified as the three main elements to win the
consumer. Another point is people-oriented——concerned about the interests of shareholders and
partners, considered consumers as friends, return to society. (Chinadmd 2016.)
To sum up, excellent customer relationship guidance helps to win more loyal customers; conduct
effective, prompt and clear communication activities; maintain customers who can bring profits to the
business and promote development of new products. Nowadays, there are more and more intense
competitions in the beverage market, Coca-Cola's outstanding customer relationship guidance concept
helps it to train a large number of loyal customers which make the company’s sales increased
significantly. This is an important factor why Coca-Cola’s market shares can always rank first.
31. 27
Customer relationship as a philosophy and strategy of the enterprise, it runs through every business
detail and business department of the enterprise. The purpose is to manage the existing and potential
customers in a profitable way. In order to make sure that those enterprises can carry out their own
business activities effectively, customer relationship management involves strategic vision, strategy
formulation and implementation, as well as process, organization and other aspects of revolution.
Achieving the reasonable balance of the maximum value between the customer and enterprise, that is
achieving a win-win situation between customers and enterprises; adhering to customer-centered;
cultivating loyal customers and providing the best quality service. (Chinadmd 2016.)
4.3 Problems and reasons
Coca-Cola failed to understand customer information in a timely manner. There was such a report that
some people wanted to sue Coca-Cola Co. ignore the feelings of consumers, ignore or delay to respond
to consumers’ feedbacks, so many consumers’ legitimate rights and interests are not guaranteed. Coca-
Cola Co. should pay attention to this problem from this example. Coca-Cola Co. attaches great
importance to customers’ complaints and the company has a special complaint department and
tracking department, when customer lodge a complaint, these departments will inform the customer’s
office in that region to let someone solve, after that there will have a return visit. However, when the
customer’s complaint have been received, the multiple complex communication network will delay the
problem-solving time and impact efficiency, so the customer's information failed to promptly reflect
the Coca-Cola Co., and Coca-Cola has not targeted to solve the problem with the customer, it is not
conducive to building a friendly customer relationship with customers. (Chinadmd 2016.)
The pricing strategy of Coca-Cola is relatively simple, so there is no superiority in terms of price. As
we all know, Coca-Cola has adopted a non-discriminatory market strategy, to cater to the public's
tastes, greatly improving customer loyalty. However, compared with Pepsi, Coca-Cola pricing strategy
slightly lost. As consumers, we are very clear that, whether in supermarkets or shops, Pepsi always has
low prices to attract our attention, and Coca-Cola's price seems to always be the same, making some
consumers choose to buy Pepsi with a lower price. Perhaps Coca-Cola feel the price changes will
make consumers suspected Coca-Cola's product quality problems, so the price should not be changed.
That is because the pricing strategy of Coca-Cola is relatively simple, customer will lose freshness for
a long term. So Coca-Cola needs to improve in the pricing strategy, strive for the advantage in terms of
price. (Chinadmd 2016.)
32. 28
In the part of the dealer, both in the price of Coca-Cola, or in reward strategy, weaker than Pepsi-Cola.
As we can see in TABLE 5, in the consumer part, Coca-Cola has the characteristics of convenience,
personalization and so on; in the retailer chain, Coca-Cola uses visits and additional services; but in the
seller part, the Coca-Cola's incentive policies and price concessions are worse than Pepsi.
TABLE 5. Comparison of CRM between Coca-Cola and Pepsi-Cola (ttfanwen 2016.)
Company project Coca-Cola Pepsi-Cola
Consumer Convenience ★★★★ ★★★
attractive ★★★★ ★★★★
Personalize ★★★★ ★★★
Retailer Visit ★★★★ ★★★★
Additional service ★★★★ ★★★
Dealer Incentive policy ★★★ ★★★★
Discount price ★★★ ★★★★
33. 29
5 IMPROVEMENT STRATEGIES FOR COCA-COLA
In this part, the author will put forward improvement strategies from internal environment and external
environment for Coca-Cola, some effective customer acquisition strategies and positive customer
retention strategies will be described.
5.1 Customer acquisition strategies
The basis for Coca-Cola to retain existing customer and developing customer value is to acquire new
customers first. In this part, the author will point out some effective customer acquisition strategies by
combining theory and practice.
5.1.1 Sales promotion
Sales promotion can be defined as: Any behavior-triggering temporary incentive aimed at prospects,
customers, channel partners or salespeople. Although sales promotions can be directed at salespeople
and channel members, our concern here is only with sales promotions aimed at prospects. As the
definition makes clear, sales promotions offer a temporary and immediate inducement to buy a product.
They are not part of the normal value proposition.(Buttle 2009, 241.) There are many forms of
consumer sales promotion:
• Sampling: this is the provision of a free sample of the product. This can be delivered in a number
of ways: mailed or dropped door-to-door, or bound or packed with a related item. Sampling is
expensive, not only because of distribution costs, but also because it may be necessary to set up a
special production run with unique promotional packaging.
• Free trials: Coca-Cola can offer products to customers on an approval basis. For example, they can
offer a free tasting in the supermarket when they provide a new flavor. If customers like the
product they keep it and pay.
• Discounts: these are temporary price reductions. This reduces perceived risk and improves value
for a first time purchaser. Discounts can be promoted on-pack, at point-of-sale or in the media.
• Coupons: these act like money. They are redeemable on purchase, at the point-of-sale.
• Bonus packs: a bonus pack is a promotion in which the customer gets more volume at an
unchanged price. A customer might get 2.5 liters of Coca-Cola for the price of a liter pack.
34. 30
• Banded packs: a banded pack promotion offers two, or rarely three, products banded together at a
bundled price. A customer might be offered an extra one by buying two products while there is no
extra one if customers only buy one product.
• Free premiums: a free premium is a gift to the customer. The gift may be offered at the point-of-
purchase, in packaging, or require the customer to mail, e-mail, text or phone in a request.
• Cross-promotions: these occur when two or more non-competing brands create a mutual
promotion. A proof of purchase from Coca-Cola entitles the patron to a 25 per cent discount on
Lays Potato Chips, and vice versa.
• Lotteries: a lottery is a game of chance, not involving skill. Consumers are invited to purchase the
product and be entered into a draw for a prize. Prizes are highly variable. They range from low
value items to high value prizes such as personal makeovers, exotic vacations and even a luxury
travel.
5.1.2 Advertising
Advertising is used as a prime method for generating new customers in B2C environments. It can be
defined as: Advertising is the creation and delivery of messages to targeted audiences through the
purchase of time or space in media owned by others. Advertising can be successful at achieving two
different classes of communication objective: cognitive and affective. Cognition is concerned with
what audiences know; affect is concerned with what they feel. Advertising alone is often insufficient to
generate behavioral outcomes, such as trial purchasing. It can, however, predispose audiences to make
an intention-to-buy based on what they learned about and felt towards the advertised product.
Cognitive advertising objectives include: raising awareness, developing understanding, and generating
knowledge. New customers generally need to be made aware of the product and to understand what
benefits it can deliver. Affective advertising objectives include developing a liking for the product and
generating preference. (Buttle 2009, 238)
Advertising is a key strategy for Coca-Cola’s growth, advertising can also evoke powerful emotional
responses in audiences. The type of response that advertisers seek in prospects is "I like the look of
that. I really must try it". This is an effective response linked to a buying intention. Television
advertisements evoke emotions by their clever mix of voice, music, images and sound effects.
Advertisers can pre-test different executions to ensure that the right sort of emotional response is
evoked. High-involvement advertising can employ long copy because prospects use advertising to
learn about alternatives. Comparison advertising and copy featuring endorsements by opinion formers
35. 31
may be influential. Media that help prospects to acquire and process information are those that have a
long dwell-time, such as magazines and newspapers. (Buttle 2009, 238)
In high involvement purchasing contexts, where products or their usage context are personally
significant and relevant, prospects will normally progress through a learn-feel-do process when
making their first purchase. In other words, before they buy they acquire information that helps them
learn about and compare alternatives, thus reducing perceived risk. They then develop a preference for,
and intention to buy, a particular offer. Customers are essentially conducting a complex problem-
solving process. Advertising is one of the sources they can use in the learn-feel part of that process. It
is, however, not the only source of information, nor is it necessary the most powerful. (Buttle 2009,
238-239)
5.1.3 Merchandising
Merchandising can be defined as: merchandising is any behavior-triggering stimulus or pattern of
stimuli other than personal selling that takes place at retail or other points-of-sale.
Coca-Cola can use merchandising to influence behavior in-store or at other points of sale such as
restaurants, grocery stores or gas stations. Merchandisers have a large number of techniques available.
These include retail floor plans, shelf-space positioning, special displays, window displays and point-
of-sale print. Some forms of merchandising are particularly useful for generating new customers, for
example money-off sign, "as used by" and "as advertised" signs. Related item displays place two or
more related items together, for example Coca-Cola next to chips or hamburgers. In addition, eye-level
positions on shelves are generally more productive than 'reach' or 'stoop' positions. If merchandisers
can position new products in these preferred positions sales will be positively. (Buttle 2009, 243-244)
5.2 Customer retention strategies
In this section the author puts forward a number of positive customer retention strategies, including
creating customer delight, adding customer-perceived value, doing customer research and customer
development.
36. 32
5.2.1 Creating customer delight
It is very difficult to build long-term relationships with customers their needs and expectations are not
understood and well met. It is a fundamental precept of modern customer management that companies
should understand customer-related knowledge. Customers that you are not able to serve well may be
better served by your competitors.
Delighting customers, or exceeding customer expectations, means going beyond what would normally
satisfy the customer. This does not necessarily mean being world-class or best-in-class. It does mean
being aware of what it usually takes to satisfy the customer and what it might take to delight or
pleasantly surprise the customer. You cannot really strategize to delight the customer if you do not
understand the customer's fundamental expectations. You may stumble onto attributes of your
performance that do delight the customer insight. Consistent efforts to delight customers show your
commitment to the relationship. Commitment builds trust. Trust begets relationship longevity. (Buttle
2009, 264)
Customer delight occurs when the customer’s perception of their experience of doing business with
you exceeds their expectation. In formulaic terms: CD=P>E, where CD=customer delight,
P=perception and E=expectation. This formula implies that customer delight can be influenced in two
ways: by managing expectations or by managing performance. In most commercial contexts customer
expectations down to levels that can be delivered. However, competitors may well be improving their
performance in an attempt to meet customer expectations. If your strategy is to manage expectations
down, you may well lose customers to the better performing company. This is particularly likely if you
fail to meet customer expectations on important attributes. (Buttle 2009, 264)
FIGURE 6. Customer delight through product quality (adapted from Kano 1995)
37. 33
As shown in FIGURE 6, Kano's analysis suggests that customers can be delighted in two ways: by
enhancing linear qualities beyond expectations and by creating innovative attractive qualities. For
Coca-Cola Co., exceeding expectations need not be costly. For example, a sales representative could
do a number of simple things such as: offer lower and better cost solution to the customer, although
that might reduce profit margin; provide information about the server market of customer.
5.2.2 Adding customer-perceived value
The second major positive customer retention strategy is to add customer-perceived value. Companies
can explore how to create additional value for their customers. The ideal is to add value for customers
without creating additional costs for the company. If costs are incurred then the value-adds may be
expected to recover those costs. For example, a customer club may be expected to generate a revenue
stream from its membership.
Customer clubs have been established by many organizations. A customer club can be defined as: it is
a company-run membership organization that offers a range of value-adding benefits exclusively to
members. The initial costs of establishing a club can be quite high, but thereafter most clubs are
expected to cover their operating expenses and, preferably, return a profit. Research suggests that
customer clubs are successful at promoting customer retention. (Stauss, Chojnacki, Decker &
Hoffmann 2001, 7-19)
Actually Coca-Cola has already had its own customer club which is called MY COKE REWARDS as
we can see in PICTURE 2, but it seems not fully functional for Coca-Cola Co. To become a member
and obtain benefits, the club requires customers to register. With these personal details (as we can see
in PICTURE 3), the company is able to begin interaction with customers, learn more than about them,
and develop offers and services for them. The club can only succeed of members experience benefits
they value. Club managers can assemble and offer a range of value-adding services and products that,
given the availability of customer data, can be personalized to segment or individual level. Among the
more common benefits of club membership are access to member-only products and services, alerts
about upcoming new and improved products, discount, magazines and special offers. (Buttle 2009,
271-272.)
38. 34
PICTURE 2. My coke rewards website
PICTURE 3. My coke rewards registration website
5.2.3 Doing research
Coca-Cola can reduce levels of customer churn by researching a number of questions:
1. Why are customers churning?
2. Are there any lead indicators of impending defection?
3. What can be done to address the root causes?
39. 35
The first question can be answered by contacting and investigating a sample of former customers to
find out why they took their business elsewhere. Customers defect for all sort of reasons, not all of
which can be foreseen, prevented or managed by a company. For example, Susan Keaveney identified
eight causes of switching behaviors in service industries generally: price, inconvenience, core service
failures, failed employee responses t service failure, ethical problems, involuntary factors, competitive
issues and service encounter failures. Only six of these eight causes of switching behaviors can be
influenced by the service provider. (Keaveney 1995, 71-82.)
The second question attempts to find out if customers give any early warning signals of impending
defection. If these were identified the company could take pre-emptive action. Signals might include
the following:
• Reduced RFM scores (recency-frequency-monetary value)
• Non-response to a carefully targeted offer
• Reduced levels of customer satisfaction
• Dissatisfaction with complaint handling
• Reduced share of customer
• Inbound calls for technical or product-related information
• Late payment of an invoice
• Querying an invoice
• Customer touch points are changed, e.g. store closes, change of website address
• Customer change of address
As the third question, customer researchers are also advised to analyze the reasons for customer
defection and to identify the root causes. (Hart, Heskett & Sasser 1990, 148-156.) Sometimes these can
be remedied by management. For example, management can audit and overhaul the complaints
management process if Coca-Cola Co. loses customers because of the time taken to deal with a
complaint. This might involve training and empowering frontline staff; updating complaints database
management or identifying the channels and touch points through which complaints enter the business.
The root cause can be analyzed by customer segmentation, channel and product. The 80:20 rule may
be applicable. In other words, it may be possible to easily eliminate 80 per cent of the causes of
customer defections.
40. 36
5.2.4 Customer development
Customer development is the process of growing the value of retained customers. It is a good idea for
Coca-Cola Co. to try to cross-sell and up-sell products into the customer base while still having regard
for the satisfaction of the customer. Cross-selling, which aims to grow share of wallet can be defined
as: Cross-selling is selling additional products and services to an existing customer. Up-selling can be
defined as: Up-selling is selling higher priced or higher margin products and services to an existing
customer.
Customers generally do not respond positively to persistent and repeated efforts to sell extra products
and services that are not related to their requirement. For Coca-Cola, it should seek to down-sell where
appropriate. This means identifying and providing lower cost solutions to the customers' problems,
even if it means making a lower margin. Customers may regard up-selling as opportunistic and
exploitative, thereby reducing the level of trust they have in the supplier, and putting the relationship at
risk. However, multi-product ownership creates a structural bond that reduces the risk of relationship
dissolution. There are a number of CRM technologies that are useful for customer development
purposes.
• Data mining: offers are based on intelligent data mining. Transactional histories record what
customers have already bought. Data mining can tell you the probability of a customer buying any
other products (propensity to buy), based on their transactional history or
demographic/psychographic profile.
• Customization: offers are customized at segment or unique customer level. Also personalized is
the communication to the customer and the channel of communication: namely e-mail, surface
mail, SMS or phone call.
• Channel integration: customer development activities are integrated across channels. It is regarded
as bad customer management practice to have different channels making different offers to the
same customer. In retail, channel integration is observed when channels such as store, web and
direct to consumer channels act in an integrated, customer-centric manner. For this to happen,
customer information and customer development plans need to be shared across channels.
41. 37
6 CONCLUSION
The thesis is based on the concept and theoretical knowledge of Customer Relationship Management
and final purpose is to work out more effective relationship management strategies for Coca-Cola Co.
to achieve a win-win situation between Coca-Cola and customers.
As a kind of philosophy and strategy of Coca-Cola Co., customer relationship runs through every
operation details and management departments to manage potential and existing customers in a
profitable manner, make enterprise carry out their own business activities around customers in an
efficient way. Customer relationship management involves changes in terms of strategic vision,
strategy formulation and implementation, as well as process and organization. Adhere to the customer-
oriented; cultivate loyal customers and provide the best quality service in order to achieve the
maximum value between customers and business, which is win-win situation.
The report was divided to two parts. In the theoretical part, the definition、development process and
main contents of customer relationship management were stated, include customer value, customer
retention, CRM models and connotation. In the empirical part, the author studied the customer
relationship management strategy research of Coca-Cola in depth, by contrast with Pepsi Cola, find
out the insufficiency and its reason of the Coca-Cola Co in the customer relationship management,
then put forward the improvement strategy of the customer relationship management of Coca-Cola
Company. Before the analysis of Coca-Cola’s customer relationship management strategy, the author
used the theoretical framework, such as SWOT, PESTEL and PORTER’s five forces to analyze Coca-
Cola’s marketing environment and find its advantages and disadvantages in the macro environment
and micro environment.
After that, the author analyzed existing strategies of Coca-Cola Company by contrast with Pepsi Cola
and find out the insufficiency and its reason of the Coca-Cola Co in the customer relationship
management, and then put forward the improvement strategies of the customer relationship
management of Coca-Cola Company. Although Coca-Cola already has many loyal customers, but how
to tap more new customers and retain existing customers is still an issue to be considered by Coca-
Cola Company. Therefore, in the last chapter of this thesis, the author puts forward some improvement
strategies for the customer relationship of Coca-Cola from customer acquisition and customer retention
42. 38
this two aspects. Say concretely, she put emphasis on making sales promotion, advertising,
merchandising, creating customer delight, adding customer-perceived value, doing customer research
and customer development.
In today's increasingly competitive beverage market, Coca-Cola trains a large number of loyal
customers by its outstanding customer relationship management philosophy and scientific customer
relationship management strategy and customer loyalty makes the company's sales increased
significantly. Therefore, it is becoming more and more important to improve the customer relationship
management strategy of Coca-Cola.
43. 39
REFERENCES
Books and publications:
Ahmad, R. and Buttle, F. 2001. Customer retention: a potentially potent marketing management
strategy. Journal of Strategic Marketing.
Bolton, R.N. 1998. A dynamic model of the duration of the customer’s relationship with a continuous
service provider: the role of satisfaction.
Buttle, F. 2004. Customer Relationship Management: concepts and tools. Oxford: Elsevier
Butterworth-Heinemann.
Buttle, F. 2009. Customer Relationship Management: Concepts and Technologies. Second edition.
Dawkins, P.M. and Reichheld, F.F. 1990. Customer retention as a competitive weapon, Directors &
Board, Summer.
Hart, C.W.L., Heskett, J.L. and Sasser, W.E. Jr 1990. The profitable art of service recovery. Harvard
Business Review, July-August.
Keaveney, S.M. 1995. Customer switching behavior in service industries: an exploratory study.
Kotler, P., Armstrong, G., Saunders, J. & Wong, V. 1999. Principles of Marketing. 2nd Europe Edition.
Europe: Prentice Hall
Kotler, P. & Kevin L.K. 2011. Marketing Management (14th Edition). Boston, Columbus, Indianapolis,
New York, San Francisco, Upper Saddle River, Amsterdam, Cape Town, Dubai, London, Madrid,
Milan, Munich, Paris, Montreal, Toronto, Delhi, Mexico City, Sao Paulo, Sydney, Hong Kong, Seoul,
Singapore, Taipei, Tokyo: Prentice Hall.
Li, chunhua. 2010. Research on Coca - Cola Company’s Customer Relationship Management Strategy.
44. 40
Liu, YanYan. 2004. A Review of Customer Relationship Management Theory.
Peppers, D. and Rogers, M. 2011. Managing Customer Relationships: A Strategic Framework
(2nd Edition).
Roberts-Phelps, G. 2001. Customer Relationship Management: How to Turn a Good Business
into a Great One!
Ronald S. Schwever Ford. 2014. Customer Relationship Management. China Economic Publishing
House.
Stauss, B., Chojnacki, K., Decker, A. and Hoffmann, F. 2001. Retention effects of a customer club.
Michael E. Porter. The Free Press. 1980. Competitive Strategy: Techniques for Analyzing Industries
and Competitors
Woodcock, N., Stone, M. and Foss, B. 2002. The Customer Management Scorecard. London: Kogan
Page.
Zeithaml, V.A. 1988. Customer perceptions of price, quality and value: a means-end model and
synthesis of evidence.
Electronic sources:
Business Dictionary. 2011. Using SWOT Analysis to Develop a Marketing Strategy.
Available:http://www.businessdictionary.com/article/632/using-swot-analysis-to-develop-a-marketing-
strategy/ Accessed 26 March 2017
Changefactory. Developing an Aged Care Strategy.
http://www.changefactory.com.au/our-thinking/articles/developing-aged-care-strategy/ Accessed 30
March 2017
Chinadmd 2016. Coca-Cola and Pepsi's customer relationship capabilities.
http://www.chinadmd.com/file/36cavvvtuxo3cppxzprcacot_1.html Accessed 3 May 2017
45. 41
Coca-Cola spending on supplier diversity program.Available: http://www.coca-colacompany.com/our-
company/suppliers/supplier-diversity Accessed 10 April 2017
Company overview of Coca-Cola Co. Available:http://www.coca-colacompany.com Accessed 1 April
2017
Hitesh Bhasin 2016. Marketing strategy of Coca cola – Coca cola marketing strategy
http://www.marketing91.com/marketing-strategy-of-coca-cola/ Accessed 31 March 2017
HubPages 2013. New Coke Freestyle Machine - 106 different flavors of Coca-Cola Products for One
Cost.Available:https://hubpages.com/food/Coke-Freestyle-Machine-100-flavors-of-Coca-Cola-
Products Accessed 6 April 2017
Kano 1995. Customer delight through product quality.
http://searchcrm.techtarget.com/feature/Creating-positive-customer-retention-strategies 2 April 2017
Langguth-America. 2016. Available:https://langguth-america.com/project/coca-cola Accessed 11 April
2017
List of Available flavors of Coca-Cola Available:https://hubpages.com/food/Coke-Freestyle-Machine-
100-flavors-of-Coca-Cola-Products 12 April 2017
Market Realist 2014. Available:http://marketrealist.com/2014/11/role-branding-advertising-soft-drink-
industry/ Accessed 21 March 2017
Mc Grath, M. (2015) Forbes
http://www.forbes.com/sites/maggiemcgrath/2015/02/10/foreign-exchange-takes-the-air-out-of-coca-
cola-fourth-quarter-profit/ Accessed 11 April 2017
Brown Millward. 2015. TOP 100 MOST VALUABLE GLOBAL BRANDS 2015
https://www.millwardbrown.com/brandz/2015/global/2015_brandz_top100_chart.pdf Accessed 13
April 2017
46. 42
Mind Tools. 2016. SWOT Analysis: Discover new opportunities, Manage and Eliminate Threats.
https://www.mindtools.com/pages/article/new TMC_05.htm. Accessed 3 April 2017
My coke rewards website.
https://www.mycokerewards.com/content/home.html Accessed 8 April 2017
My coke rewards registration website. Available: https://us.coca-cola.com/ Accessed 8 April 2017
Butler Renee Ann 2015. Analyzing Porter's 5 Forces on Coca-Cola (KO)
http://www.investopedia.com/articles/markets/120915/analyzing-porters-5-forces-cocacola.asp
Accessed 29 March 2017
Reference for Business 2017. PepsiCo, Inc. - Company Profile, Information, Business Description,
History, Background Information on PepsiCo, Inc.
http://www.referenceforbusiness.com/history2/40/PepsiCo-Inc.html Accessed 10 April 2017
SABTU. I.T.UMBLERBUCKS . Available:http://itumblerbucks.blogspot.fi/2010/04/model-model-
crm.html Accessed 11 April 2017
Supplier Diversity 2015. Coca Cola Company
http://www.coca-colacompany.com/our-company/suppliers/supplier-diversity Accessed 12 April 2017
The New York Times 2014. Available: http://www.nytimes.com/2014/03/01/business/challenges-for-
coke-to-stay-on-top.html?_r=0 Accessed 30 March 2017
The Street 2015. Available: http://www.thestreet.com/story/13043245/1/pepsico-vs-coca-cola-which-
stock-is-the-better-choice-for-2015.html Accessed 31 March 2017
Ttfanwen 2016. Coca - Cola Company Customer Relationship Management
http://www.ttfanwen.com/info_14/fw_2785562.html Accessed 12 April 2017