Markering strategies of coka cola company

MarketingStrategies of Coca-Cola Company 1
Introduction
As the global economy slowly turns itself around and begins its long-term recovery driven by
rapid growth in Asia, greater stability in the United States and the Middle East, tempered
somewhat by Europe’s continuing economy troubles. Sri Lanka today stands on the verge of
success and prosperity.
With the permanent peace to the country in May 2009, the Sri Lankan Government has
accelerated economic progress through a series of measures such as control of inflation,
Reduction of interest rates, encouragement of tourism sector……etc.
As mentioned above, with this globalized world, organizations should have to maintain their
businesses in a marketing oriented way. It doesn’t matter whether the organization is large scale
or small but almost all the organizations have to achieve their best not because they have to but
to survive in the market. In order to survive in the market they have to provide a value for
customers which is better than the competing organizations. So therefore every organization
need to have a marketing oriented businesses for their survival.
During the module “Marketing Management” we have been asked to fulfill a report and a
presentation as the semester assignment.
We have chosen “Coca-Cola” which is the leader in beverage industry for our assignment. As the
leading beverage brand in Sri Lanka they have a broadly spread marketing oriented strategies
within their organization. So it’s one of the best chances we’ve got to study the marketing
oriented strategies of this company as they have reached their best level.
So with that, we are pleased to present the marketing strategies of Coca-Cola on behalf of the
Marketing Management module. By studying this report you would be able to understand what
are the marketing strategies that Coca-Cola use and how do it work in the global business
village.

Objectives
 To learn about the actual marketing strategies of an organization and to identify its
effectiveness and weaknesses.
 To cover our assignment of writing an analytical report of a company’s marketing
strategies.
 To confirm our knowledge which we learnt by marketing lesson.
 To write a report in proper way according to its formal format
 To build good relationship among our group members.

Methodology
Our report is a depth analysis of the marketing strategies of a well-established company in Sri
Lanka. The company we choose is “Coca-Cola SriLanka” a subsidiary of the world famous
“Coca-Cola Enterprises”. Coca-Cola Company is the world’s leading manufacturer, marketer
and distributor of non-alcoholic beverage concentrates and syrups, used to produce nearly 400
beverage brands. The Coca-Cola company consists of a factory located in Sri Lanka at
Biyagama.
On 10 of March 2014, we visited the factory and office situated in the Biyagama. The marketing
manager Mr. Hemantha Balasooriya warmly welcomed us, and we were directed to the
Ms.Theekshani, then she conducts a brief seminar about the company and the company’s
marketing strategies.
Other than that we browsed internet for the definitions and to find out the history of Coca-Cola.
Finally we analyzed the information we collected with the theoretical marketing strategies we
have learnt at the university and here we have presented the relevant information with the
examples as it is helpful for you to get clear knowledge about the marketing strategies of Coca-
Cola Company.

Analysis
In this analysis you can have more knowledge about the marketing strategies of Coca-Cola
Company according to the four Ps of marketing functions.
Introduction
Coca Cola is one of the most recognized brands in the United States and throughout the world.
Although there are several products in the Coca Cola line, its cola drink is its flagship beverage
and still its most popular product. The original recipe for the drink, which has been altered over
the years, was created at the Eagle Drug and Chemical Company in Columbus, GA. It was
created by John Pemberton as a coca wine and was originally called Pemberton’s French Wine
Coca. Pemberton’s goal was to create a non-alcoholic beverage option during prohibition. Coke
was first sold at Jacob’s Pharmacy in Atlanta in 1886. Pemberton claimed the drink cured
diseases and was ideal as a morphine replacement. It was also said to cure impotence and
headaches.
The 1980s were an exciting time for Coke. The company’s marketing made some of the biggest
impacts in industry and managed to incorporate iconic images such as Santa Claus and its polar
bears onto the scene. In 1985, Coke decided to change the formula of its drink and introduced
New Coke to the market. Unfortunately, New Coke was not well-received. The public preferred
the taste of the beverage to competitors, but did not like the traditional drink undergoing change.
Within a year, Coca Cola reintroduced a variation of the old recipe to the market and called it
Coca Cola Classic. By 2011, the world “classic” had been removed from all packaging and New
Coke was no longer produced anywhere in the world. Today, the classic recipe of Coca Cola
shares the market shelves with Diet Coke, caffeine free Coke, Coke with lime, and several
variations of the classic cola drink.
The Coca-Cola Company and its network of bottlers comprise the most sophisticated and
pervasive production and distribution system in the world. More than anything, that system is
dedicated to people working long and hard to sell the products manufactured by the Company.
This unique worldwide system has made The Coca-Cola Company the world’s premier soft-
drink enterprise. From Boston to Beijing, from Montreal to Moscow, Coca-Cola, more than any
other consumer product, has brought pleasure to thirsty consumers around the globe. For more

than 115 years, Coca-Cola has created a special moment of pleasure for hundreds of millions of
people every day.
The Company aims at increasing shareowner value over time. It accomplishes this by working
with its business partners to deliver satisfaction and value to consumers through a worldwide
system of superior brands and services, thus increasing brand equity on a global basis. They aim
at managing their business well with people who are strongly committed to the Company values
and culture and providing an appropriately controlled environment, to meet business goals and
objectives. The associates of this Company jointly take responsibility to ensure compliance with
the framework of policies and protect the Company’s assets and resources whilst limiting
business risks.
The Mission of Coca Cola
Coke’s roadmap starts with their mission, which is enduring. It declares their purpose as a
company and serves as the standard against which coca Cola company weigh their actions and
decisions.
 To refresh the world.
 Ti inspire moments of optimism and happiness.
 To create value and make a difference.
The Vision of coca cola
The vision of Coca Cola serves as the framework for their roadmap and guides every aspect of
therir business by describing what they need to accomplish in order to continue achieving
sustainable, quality growth.
 People: Be a great place to work where people are inspired to be the best they can be.
 Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and
satisfy people's desires and needs.
 Partners: Nurture a winning network of customers and suppliers, together we create
mutual, enduring value.
 Planet: Be a responsible citizen that makes a difference by helping build and support
sustainable communities.

 Profit: Maximize long-term return to shareowners while being mindful of our overall
responsibilities.
 Productivity: Be a highly effective, lean and fast-moving organization.
Coca Cola – Sri Lanka
Coca Cola Beverages Sri Lanka Ltd (CCBSL), located in Biyagama, is the only Coca Cola
bottling plant in Sri Lanka. It has 443 employees.
While it has been a partner in the Coca Cola sabco group since 2004, its origins go back to 1955,
when it was formed under the name pure beverage Co Ltd., through the acquisition of the Ceylon
Fruit Drinks and Table water company. Its journey with Coca Cola started in 1960, when a
franchise agreement was signed with the Coca Cola Export Corporation.
Coca Cola Beverage Sri Lanka produces and sells over 10 million unit cases of carbonated soft
drinks (both still and sparkling) per annum. It operates through a countrywide distributor
network, consisting of about 128 distributors.
Target Market of Coca-Cola
Coke’s commercials basically based on young generations, So, the young generation is the target
market of Coke because they want to represent Coke with the youth and energy but they also
consider about the old people they take then as a co-target market.
Product Life Cycle
Products go through various steps throughout their useful lives. They are introduced, grow,
mature and eventually decline. In the introduction phase of the life cycle, start-up expenses are
high and sales are low. This is the stage in which the product in placed in the market for
consumer use. Sales begin to increase and expenses tend to decrease during the growth phase.
This is the point in which the product becomes more known in the market and consumers begin
purchasing. During the mature phase of the product life cycle, the company must re-examine the
product and determine new ways to make it marketable. Consumers begin to take the product

for granted and no longer necessarily choose it first. If a new product comes in at this point with
new, more attractive features, it can force the product into the decline stage. Eventually sales
will begin to decline and the company must decide whether to continue with production or to
part ways with the product.
Coca-Cola has been in the industry since the nineteenth century, so if they continue with the
same marketing strategy, then they will send themselves irrevocably into the decline stage. Coca-
Cola (Coke) is in maturity stage but gradually moving towards the declining stage of the product
life cycle. Management pays special attention to products during this stage of the product life-
cycle. The company must now determine whether they will stop producing Coca-Cola, change
the soda, find new uses for it, seek new markets for the soft drink or if they will maintain their
current strategy However Company can’t stop their Coca Cola production or change anything of
the original format. At the moment, the Coca Cola Company is attempting to effectively seek
new markets. They don’t try to make changes in original coke and they try to find new markets
by using various serving methods of same coke. And company spent more attention on maintain
and develop their market performance in day by day.
Coca Cola is in maturity stage
Sales and revenues
Today, Coca-Cola is one of most well-known brands in the world. This company has continued
to gain momentum and growth, capitalizing on the rapidly expanding beverage industry and
ranking as the largest beverage company in the world. Coca Cola’s sales level is in peak level
now. They do 1.9 billion servings per day. Of the 55 billion servings of all kinds of beverages
drunk each day (other than water), 1.9 billion are Coca-Cola. It indicates that 3.1% of all
beverages consumed around the world are Coca-Cola products. With its push for global market
share, Coca-Cola now operates in over 200 countries with over 84,000 suppliers. Currently, over
70% of Coca Cola’s business income is generated from non-US sources (Coca-Cola Company,
2012). Coca-Cola's $48.02 billion in revenue makes it the 49th largest economy in the world. In
over a century, Coca-Cola has grown the company into a multi-million dollar business.
Product differentiation

Another key factor that has supported Coca Cola’s globalization vision is the company’s ability
to customize the product to meet the needs and wants of individual markets. For example, Coca-
Cola has been able to tailor its product line to meet the needs of the younger consumer by
offering PowerAde and flavored Coke products, such as Cherry Coke and Vanilla Coke.
Additionally, the company is meeting the needs of the health conscious, older consumer with
Diet Coke, Vitamin water, and Dowell products. Coca Cola has invested significant time and
money into researching and understanding different marketing segments based on lifestyle, age,
and income in order to accurately develop and market its products.
Packaging differentiation has also played a key role in how adaptable the Coca-Cola product is
to various market segments. Functional packaging has been used to make the products available
in different sizes and forms, including glass and plastic bottles, aluminum cans, and fountain
drink dispensers. The company considers various shapes and sizes of the bottles and cans to
ensure easy stacking and vending machine dispensing. To promote the company’s commitment
to environmental sustainability, all packaging materials are designed to be recyclable and labeled
accordingly for easy consumer identification.
Promotions
Coca-Cola is one of the most persistent and well-loved brands in history. It is one of the longest
surviving brands, and thus considered among the most successful companies ever. The reason in
part of this is their strong advertising and marketing. Coca-Cola has always relied in advertising
to promote and market their brand, and this is why they are always on top of their game, after
having been in the market for more than a century. Coca-Cola advertising has indeed greatly
affected American pop culture, and even the whole world. Coca Cola’s promotional strategies
are at the best level since their introduction stage. They use innovative advertising methods to
attract market. All of their promotional activities switch target markets to Coca Cola strongly.
Technology
Technology advances contributed to Coca-Cola’s ability to globalize rapidly throughout the 20th
century. Product transportation became more efficient and cost effective with the development of
bigger and faster semi-trucks, cargo ships, jet aircraft, and trains. Coca-Cola was able to

manufacture and ship products quicker and farther to market segments that were unreachable
before these transportation improvements. In addition, technology advances became the driving
force behind the ease and speed at which information was available. Distributors and warehouses
were able to more accurately track inventory levels and fill order shipments, resulting in lower
overall operating costs. Computerization also led to slashed product costs and improved
efficiencies. Computerized and automated manufacturing equipment increased the speed and
volume in which products were produced. These technological advances enabled Coca Cola to
compete on a global scale, selling the well-known brand of products across the world at
competitive prices.
Marketing Mix Of Coca-Cola
Product level
Core Product
Core product objective of Coca Cola is the satisfy customer’s need of carbonated soft drink. In
early 1900s world’s carbonated soft beverage industry limited only to carbonated water.
Consumers seek different taste from soft beverages than taste of carbonated water. At that time
Coca Cola entered to the market with satisfying world through adding extra taste to carbonated
water. It born as a result of huge attempt of testing taste variations for new drink. Finally that
attempt was succeeded and Coca Cola entered market as a carbonated soft drink with secret
recipe.
Actual Product
Quality
Coca cola quality statement

The Coca-Cola Company exists to benefit and refresh everyone it touches. For us, Quality is
more than just something we taste or see or measure. It shows in our every action. We
relentlessly strive to exceed the world’s ever-changing expectations because keeping our Quality
promise in the marketplace is our highest business objective and our enduring obligation. More
than a billion times every day, consumers choose our brand of refreshment because Coca-Cola
is...
■ The Symbol of Quality
■ Customer and Consumer Satisfaction
■ A Responsible Citizen of the World
Product Safe ty And Quality Cons ume rs Can Trus t
Coca Cola measure key product and package quality attributes by focusing on ingredients and
materials, regulating manufacturing, bottling and distribution, as well as samples collected from
the trade. They monitor compliance with their standards in manufacturing and distribution of The
Coca-Cola Company products to ensure those products meet Company requirements and
consumer expectations in the marketplace.
As The Coca-Cola Company expands their beverage portfolio and supplier base to meet the
increasing demands of growing and developing markets around the world, customer and
consumer expectations and regulatory scrutiny continue to rise. The global nature of their
business requires that the Coca-Cola system has the highest standards and processes to ensure
consistent quality -- from their concentrate production to bottling and product delivery.
To ensure such consistency and reliability, the Coca-Cola system is governed by the Coca-
Cola Operating Requirements (KORE), a new management system which replaced The Coca-
Cola Management System (TCCMS) in January 2010. KORE enables the Coca-Cola system to

address the changing business landscape while supporting their Company's strategic growth
plans by creating an integrated quality management program which holds all of their operations,
system wide, to the same standards for production and distribution of company beverages.
KORE guarantees the highest standards in product safety and quality, occupational safety and
health and environmental standards across the entire Coca-Cola system by outlining clear
requirements for the policies, specifications and programs that guide our operations. With
endorsement from leadership throughout the Coca-Cola system, KORE integrates business and
quality objectives and aligns them with consistent metrics to monitor performance; integrates
preventive action as a management tool with more rigorous demands when introducing new
products and services; incorporates Hazard Analysis and Critical Control Points (HACCP) into
system standards; manages risk in Company, bottling operations and across supply chain; and
defines problem-solving methods and tools to drive consistent quality with improvements.
To stay current with new regulations, industry best practices and marketplace conditions, Coca
Cola consistently reassess the relevance of their requirements and guidelines not only in
manufacturing, but throughout the entire supply chain. They continually refine their
requirements to further insure that KORE embodies the most recent and stringent manufacturing
processes.
To establish a governance process, each business within the Coca-Cola system implements,
documents and maintains a safety and quality system in accordance with KORE requirements.
Compliance to KORE requirements and guidelines is monitored system wide to further support
the integrity of their products.
Ensuring the safety and quality of Coca Cola has always been at the core of their business and is
directly linked to the success of The Coca-Cola Company. Company's Global Product Quality
Index rating has consistently reached averages near 94 since 2007, with a 94.3 in 2010, while
their Company Global Package Quality Index has steadily increased since 2007 to a 92.6 rating
in 2010, their highest value to date.
Features

The formula for is in written form only, and the only copy is kept in a vault of the SunTrust
Company bank, located in Atlanta. The Coca Cola company board of directors is authorized to
open the vault if any emergency arises. Over the past century, many people have claimed to have
the original formula, yet not one imitation has ever proven to be the ‘real thing’
Ingredients
Water
The European Food Safety Authority (EFSA) recommends a total water intake of 2.0 L per day
for adult females and 2.5 L for adult males. Total water intake according to EFSA includes water
from drinking water, beverages as well as moisture from food. All beverages hydrate, including
those that contain caffeine. Coca Cola, both regular and low-calorie, contain between 85% and
95% water, making them appropriate choices to meet humans hydration needs.
Sugar
Sugar provides the sweetness of Coca-Cola and is important for its delicious taste. The majority
of the sugar we use in Europe is beet sugar and some cane sugar which are also known as
sucrose or table sugar.
A 250ml serving of Coca-Cola contains no more calories and sugars than the same amount of
orange juice and less sugar than the same amount of apple juice. A 250ml serving contains
approximately 27g of sugar, which is equivalent to four to five teaspoons of sugar. At Coca-Cola
we help people make informed choices about what’s right for them. For example, the Guideline
Daily Amounts (GDA) labeling system gives people very clear and easy to understand
information about the percentage of energy and sugars in Coca-Cola. A 250ml serving contains
approximately 29% of an adult’s guideline daily amount of 90g of sugars.
Low and no-calorie sweeteners
Low and no-calorie sweeteners, such as acesulfame potassium (Ace-K), aspartame, saccharin,
cyclamate and sucralose, provide a sweet taste with few or no calories.
Colour (caramel e 150d)

Caramel is one of the oldest colours used in food and drinks in the world and it’s been used as
the colour in Coke since 1886. Along with Caramel E150d, the only other additive used in Coca-
Cola is Phosphoric Acid (E338).
Natural flavourings
Coca-Cola has natural flavours. These are natural flavours from a complex mixture of plants that
we use as the source of Coca-Cola’s famous flavours. Different countries use either the term
plant extracts or vegetable extracts meaning the same thing.
Natural caffeine
The bitter taste of caffeine in Coca-Cola adds to the taste loved by people all over the world.
Caffeine, consumed for centuries in many cultures, is found naturally in coffee beans, cocoa
beans and tea leaves. It can also be synthesised in a laboratory. Caffeine is one of the most
thoroughly studied food and beverage ingredients in the world.
Phosphoric acid
Phosphorus is a mineral found widely in nature and plays an important role in how our bodies
get energy. It is a major component of bones and teeth. Sparkling beverages add only very small
amounts of phosphorus to the diet through phosphoric acid, an ingredient that helps give cola
drinks their tangy taste. A glass (250 mL of Coca-Cola provides 43 mg of phosphorus. By
comparison, the same amount of milk has about 208 mg of phosphorus, one cup of cooked
chicken (140 grams) has about 230 mg of phosphorus, and one cup of cooked white rice (150
grams) has about 90 mg of phosphorus.
Carbon dioxide
The distinctive sparkling quality and Coke’s bubbling effect when poured into a glass comes
from the carbon dioxide – the natural gas we breathe out and what plants take in – is pushed into
the liquid under pressure.
How can people be sure Coca Cola product and ingredients are safe?

To ensure that Coca Cola live up to their reputation, they have a large staff of scientists and
nutritionists working to make sure product consistently demonstrate the newest standards of
safety and emerging science. Coca Cola diligence in this area allows them to be sure that
people’s confidence in Coca Cola will remain strong.
Government regulations
Coca Cola must comply with the health and safety regulations of each country or region where
they are sold. In the European Union (EU), for example, The European Food Safety Authority
(EFSA) is the keystone of risk assessment regarding food safety. In close collaboration with
national authorities and in open consultation with its stakeholders, EFSA provides independent
scientific advice and clear communication on existing and emerging risks. Many other countries
throughout the world have similar regulatory agencies and frameworks for ensuring food and
drinks and their ingredients are safe, such as the Food Standards Agency (FSA) in the UK.
Because such extensive regulatory systems govern the use of substances in food and beverages,
many government agencies and the great majority of scientists consider food additives to be one
of the safest parts of the food supply.
Design and Packaging
Coca Cola marks the 99th anniversary of the iconic Coca-Cola coutour bottle. Now, a
treasured hallmark, this single shape of packaging has achieved iconic status since
its creation in 1915. The Coca-Cola logo itself is the single most recognizable brand
in the world.

The 1915 Coke Bottle: The first bottle was
designed in 1915 by the Root Glass
Company. The bottle designer, Earl R.
Dean and his team decided to base the
bottle design on the soda's two ingredients,
the coca leaf or the kola nut. Dean couldn't
find any photographs of either, but became
inspired by the cocoa pod, and transformed
the shape of the pod into a bottle. Dean
sketched out the design of the bottle, and it
was approved for moulding in only 24
hours. A prototype was made, and the bottle received a patent in November 1915.
The prototype never actually made it into production because its middle diameter
was larger than its base, making it unstable on conveyor belts.
Dean solved this issue by decreasing the bottle's middle diameter, and today's
contour shape was born
The 1916 Coke Bottle: The patent was renewed on December
25th, 1923, thus creating the "Christmas" bottle. The bottle
has become very popular among collectors. On the base plate,
most of these bottles bear the name of the city where they
were first filled.
The 1957 Coke Bottle: In 1957 The Coca-Cola Company
decided to eliminate the traditional embossing of its
trademark on the bottle, and replaced it with Coca-Cola in
white Applied Color Labeling (ACL). In 1960 the bottle was

registered as a trademark, becoming only the second package in history to be
trademarked.
The 1961 Coke Bottle: As the ACL process became more sophisticated, a
two color, full wrap label was developed. The white Coca-Cola trademark
on a red background gave the bottle a very colorful appeal. This two color
version was used predominately in the international markets. 1961 also
marked the 75th anniversary for Coca-Cola.
Variations of this bottle, and the embossed bottle, were used up all the
way until the introduction of the plastic bottle in 1994
The classic glass bottle is still available in some areas around the world.
1994 Plastic Bottle: In 1994 Coca-Cola introduced the 20oz plastic
contour bottle, the Coca-Cola bottle we know today.

2007 Aluminum Contour Bottles: In 2008, Coca-Cola introduced a contour
aluminum can to select markets, designed by Turner Duckworth.
Coca cola can
Although the idea for canning Coca Cola began in the 1930's,
culminating with the creation of a 16oz and a 32 oz cone top can in
1936, no real progress was made until the 1950's. Neither of these
cone tops appear to have actually gone into production, but were used
as samples.
The first actual production can for Coke was a test market can which
was produced out of the Hayward, CA plant for export to American
Troups overseas in late 1955. A second can from the New Bedford Mass plant for
export to the American troops in the Far East was produced in early 1956. The
Hayward can is quite a bit more difficult to locate however. There is one tell tale
identifier on this can which seperates it from the rest. On the side of the can above
the seam, the sentence "Prepared for export only" exists. This is an extremely tough
can to find and even tougher to find in very good shape. The other somewhat unique
feature is in the lids that were used. The original experimental lids did not have any
production information, but rather had very plain & somewhat familiar Coke logo's.

In 1960 they entered the national market with can. And till today Coca Cola can had lot of design
and appearance variations.
Plant bottle
technology
PlantBottle packaging is the latest breakthrough from The Coca-Cola Company designed
to change the way the world thinks of plastic bottles. It is the first ever fully recyclable PET
plastic beverage bottle made partially from plants. The material
looks and functions just like traditional PET plastic, but has a lighter
footprint on the planet and its scarce resources.
The company's existing PlantBottle™ packaging introduced in 2009
comprises of 30% plant-based PET and 70% purified terephthalic

acid (PTA). Coca-Cola aims to replace the PTA component with plant-based PET for its entire
range of PET plastic bottles by 2020.Coca-Cola distributed more than 15 billion of its first
generation PlantBottles (30% plant-based) in 25 countries as of June 2013. PlantBottle packages
are just like traditional PET plastic bottles – fully recyclable, convenient, lightweight - except
that instead of being entirely made from petroleum and other fossil fuels,
PlantBottle packaging uses materials made from plants.
Just because a material is made from plants doesn’t mean it’s necessarily better for the
environment or society.Our substitution of renewable plant-based material for fossil-based
petroleum resources in making PlantBottle packaging provides for a reduction of potential
carbon dioxide emissions associated with end-of-life destruction of the package as compared to a
conventional 100% petroleum-based bottle, because some of the carbon atoms
in PlantBottle packaging come from a renewable source, sugarcane, and emission of those
carbon atoms would be offset by the next sugarcane crop’s use of carbon dioxide in the plant’s
photosynthesis process. Our work to understand the full range of carbon impacts associated
with PlantBottle packaging as compared to traditional 100% petroleum-based PET plastic bottles
continues. We are working with leading experts and thinkers on the subject. We will update our
work in this area on this website so that the carbon footprint of
PlantBottle packaging is known.
Coca Cola brand name
Coca-Cola is one of the most recognizable brands around the globe. Having established a leading
brand that fascinates consumers all over the world, Coca-Cola is widely regarded as one of the
most booming organizations having achieved huge branding success.
When John S. Pemberton created the formula for his new drink in 1886, his partner and
bookkeeper, Frank M. Robinson, suggested the name Coca‑Cola, thinking that ‘the two Cs
would look well in advertising’. The name comes from the former ingredients of extract of coca
leaves and kola nuts contained in the syrup. He wanted to create a unique logo to go with it, and
experimented writing the company’s name in elaborate Spencerian script, a form of penmanship
characteristic of the time.

Coke has build an amazing business with a brand value of more than 79 billion dollar and was
rewarded by Interbrand as the best global brand in 2012. Coca Cola is the most popular word in
the planet after the word “ok”. So people can better differentiate brands with each other Research
Now shows that the brand awareness among respondents from the US, Canada, UK, France,
Germany and Australia is above 90%.
Driving growth with a strong brand and focusing on the core delivers much more value than
most other possibilities. Being consistent, not only in terms of product quality and design
elements but also in terms of strong brand values is probably one the most important aspect to
deliver long term growth. The iconic coca cola bottle is just one obvious example of the
consistency over time. The brand values of coca-cola including happiness, togetherness and
refreshment have been around forever. These values are cleverly chosen because everybody can
relate to them and they are perceived as positive all over the world. This way Coca-Cola can
build it’s strong global brand based on consistent values over time and still fulfil local needs.
Price
“Price means sum of values consumers exchange for the benefits of having or using the
product or service.”
In economics and business, the price is the assigned numerical monetary value of a good, service
or asset. Price is also central to marketing where it is one of the four variables in the marketing
mix that business people use to develop a marketing plan.Pricing is a big part of the marketing
mix. Choosing the right price and the right pricing strategyies crucial to the marketing
process.The price of the product is not something that is fixed. On the other hand the price of the
product depends on many other factors. Some times the price of the product has got nothing
to do with the actual product itself. The price may act as a way to attract target customers.The
price of the product is decided keeping many things in mind. These things include factors like

cost incurred on the product, target market, competitors, consumer buying capacity and other
variables.
 What is the value of the product or service to the buyer?
 Are there established price points for products or services in the target area?
 Is the customer price sensitive? Will a small decrease in price gain you extra market
share? Or will a small increase be indiscernible, and so gain you extra profit margin?
 What discounts should be offered to trade customers, or to other specific segments of the
market?
 How will the price compare with competitors?
Pricing Process
01. Selecting the pricing objective.
02. Determining demand.
03. Estimating costs.
04. Analyzing competitors’ costs, price and offers.
05. Selecting a pricing method.
06. Selecting final price.
Price decision influencers
Internal Influences
 Organizational/ marketing objectives
 Pricing objectives
 Costs
 Other marketing mix variables
External Influences
 Channel member expectations
 Buyer’s expectations

 Perceived value for money
 Competition
 Legal and regulatory issues
 Inflation/ currency fluctuation
Price : coke
Coke was a company ruling the markets before Pepsi entered. Earlier the price of coke was
cost based, it was decided on the cost which was spent on making the product plus the profit and
other expenses. But after the emergence of other companies especially the likes of Pepsi, Coca-
cola started with a pricing strategy based on the basis of competition.
Due to the availability of wide range products the pricing is done according to the market and
geographic segments. Each sub-brand of coca cola has different pricing strategy. Their pricing
strategy is based on competitors pricing. Pepsi is the direct competitor to coke. Beverage market
is said to be a oligopoly market (few sellers and large buyers), hence they form into cartel
contract to ensure a mutual balance in pricing between the sellers.
The coca cola products pricing are set around the same level as its competitors, coca cola has to
be perceived different but still affordable. Like any company who has successfully been existing
for more than a century, coca cola had to remain tremendously fluent and consistent with their
pricing strategy. They have had worthy and dangerous competitor constantly driving them to be
smarter, faster and better. Throughout the years coca cola has made many pricing decisions but
there is no doubt that their ultimate goal is to maximize shareholder value.
Coca cola uses lower prices point to penetrate new markets that are especially sensitive to price.
Coca cola does that to face the competition and to raise brand awareness among the population.
Pricing Strategy of Coca cola
The amount of money charged for a product or service, or sum of the values that Consumers
exchange for the benefits of having or using the product or services. As price gives us the profit
so this Price is very important for business. Price of product should be that which gives
maximum benefit to the company and which gives maximum satisfaction to the customer.

Following factors Coca Cola kept in mind while determining the pricing strategy.
 Price should be set according to the product demand of public.
 Price should be that which gives the company maximum revenue.
 Price should not be too low or too high than the price competitor is charging from their
customers otherwise nobody will buy the product.
 Price must be keeping the view of the target market.
The price of Coca Cola, despite being market leader is the same as that of its competitor.
Sometimes, Pepsi places its customers into some psychological pricing strategies by reducing a
high priced bottle and consumers think that they save a lot of money from this. Coca Cola has
intense competition with Pepsi so its pricing can’t exceed too much nor decrease too much as
compared to the price of Pepsi Cola. If price of the Coca Cola exceed too much from the Pepsi
then people will shift to the Pepsi Cola and on the other hand if the price of Coca Cola decreases
people might get the impression that its quality is also low.
Coca Cola has intense competition with Pepsi so its pricing can’t exceed too much nor decrease
too much as compared to the price of Pepsi Cola. If price of the coca cola exceed too much from
the Pepsi then people will shift to the Pepsi Cola and on the other hand if the price of Coca Cola
decreases people might get the impression that its quality is also low.
Coco Cola has offered promotional prices very frequently. Especially on some occasion Coca
Cola reduces its rates like in Ramadan Coca Cola reduces its rates unto 5 Rupees on 1.5 liter
bottle.
Market penetration pricing policy
In some economies consumers tend to switch towards a low priced product. Coca cola’s
objective is to target every consumer of the country so Coco Cola has to set its prices at such a
level which no one can offer to its consumers. That is why Coca Cola charges the same prices as
are being charged by its competitors. Otherwise, consumers may go for Pepsi Cola in case of
availability of Coca Cola at relatively high price.

Place
In marketing, place refers to one of the 4 P's, defined as "the market place". It can mean a
geographic location, an industry, a group of people (a segment) to whom a company wants to sell
its products or services.
Coke - Place
Coke is a multinational company and it has its market around the entire world. They use
franchise system to distribute their products. There are different types of franchising. The type
that is used by Coca-Cola Company is manufacturer-sponsored wholesaler franchise system. It is
very comparable to licensing but the only difference is that the finished products are sold to the
retailers in local market.
Coca Cola has managed their company’s marketing and sales strategy within channels. They has
a strong distribution channel to distribute their Coca Cola. Coca Cola use large numbers of
distribution channels. They make Coca Cola easy to get and available to the customer
everywhere through their expert distributors channel. Their transport facilities, channels of
distribution, coverage area, etc. are maintained very securely.
The Coke Company operates three primary delivery systems for its business channels:
 Bulk delivery for the channels of large Supermarkets, Mass Merchandisers and Club
stores.
 For smaller channels Coke does advanced sale delivery for convenience stores, drug
stores, small supermarkets and on-premise fountain accounts.
Key Channel Listing
 Supermarkets
 Convenience Stores
 Fast Food
 Chain Drug Stores
 Hotels/Motels/Resorts

Coca-Cola floods all possible retailing stores in satisfying the third part, place. In supermarkets
and convenient stores, Coca-Cola products are always easy to identify, and usually make up the
greater proportion of options to buy.
Promotion
Getting shelves
They gets or purchase shelves in big departmental stores and display their products in that
shelves in that style which show their product more clear and more attractive for the consumers.
Eye Catching Position
Salesman of the coca cola company positions their freezers and their products in eye-catching
positions. Normally they keep their freezers near the entrance of the stores.
Sale Promotion
Company also do sponsorships with different college and school’s cafes and sponsors extra
curriculum activities for getting market share.
UTC Scheme
UTC mean under the crown scheme, coca cola often do this type of scheme and they offer very
handy prizes in it. Like once they offer bicycles, caps, tv sets, cash prizes etc. This scheme is
very much popular among children.
Facilitating the product by infrastructure
For providing their product in good manner company has provided infrastructure these includes:
 Vizi cooler
 Freezers
 Display racks

Advertisement
Coca cola company use different medias
 Print media: They often use print media for advertisement. They have a separate
department for print media.
 Pos material: Pos material mean point of sale material this includes: posters and stickers
display in the stores and in different areas.
 Tv commercial: As everybody know that TV is a most common entertaining medium so
TV commercials is one of the most attractive way of doing advertisement. So Coca Cola
Company does regular TV commercials on different channels.
 Billboards and holdings: Coca cola is very much conscious about their billboards and
holdings. They have so many sites in different locations for their billboards.
Major Competitor Pepsi International
History
PepsiCo is a world leader in convenient foods and beverages, with revenues of about $27 billion
and over 143,000 employees. The company consists of the snack businesses of Frito-Lay North
America and Frito-Lay International; the beverage businesses of Pepsi-Cola North America,
Gatorade/Tropicana North America and PepsiCo Beverages International; and Quaker Foods
North America, manufacturer and marketer of ready-to-eat cereals and other food products.
PepsiCo brands are available in nearly 200 countries and territories.
Many of PepsiCo's brand names are over 100-years-old, but the corporation is relatively young.
PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana was

acquired in 1998 and PepsiCo merged with The Quaker Oats Company, including Gatorade, in
2001.would entertain the listener with the latest musical selections rendered by violin or piano or
both. The new name, “Pepsi Cola”, is derived from the two of the principle ingredients, Pepsin
and Kola Nuts. It was first used on the August 28. At that time, Bradham’s advertising praises
his drink as “Exhilarating, invigorating, aids digestion”.
Pepsi Product
The Pepsi-Cola drink contains basic ingredients found in most other similar drinks including
carbonated water, high fructose corn syrup, sugar, colorings, phosphoric acid, caffeine, citric
acid and natural flavors. The caffeine free Pepsi-Cola contains the same ingredients but no
caffeine. Some of the different and varied brands of Pepsi are as follows: All Sport Aquafina
Caffeine-Free, Pepsi Crystal, Pepsi Diet, Pepsi Gatorade, Mirinda, Mountain Dew.
Coke v/s Pepsi-Product
As seen above both the companies Coke and Pepsi have a number of products. Many of these
products are innovations but there are also many products which are brought out just as a
competitive product for the other companies.
Pepsi Price
Pepsi again decides it price on the basis of competition. The best think about the company
Pepsi’s that it is very flexible and it can come down with the price very quickly. The company is
renowned to bring the price down even up to half if needed. But this risk taking attitude has also
earned Pepsi losses. Though lowering the price would attract the customers but it would not help
them cover up the cost incurred in production hence causing them losses. This was the situation
earlier but now Pepsi is a full-fledged and growing company. It has covered all its losses and is
now growing at a rapid rate.
Pepsi Place

0
5
10
15
20
25
30
35
yes no
Pepsi again has spread worldwide. Pepsi when entering a new market does not go in alone but it
looks for partners and mergers. Till now Pepsi has collaborated with companies like Quaker
Oats, Frito-lays, Lipton, Starbucks, etc. Pepsi like Coke has spread all over the world. It is
because of this worldwide spread that now it is coming up with Advertisements which can be
broadcasted in the different nations in the world. The recent example with would be the Pepsi
advertisements having David Beckham as it brand ambassador.
Pepsi Promotion
TV campaign that lasted many years, also ad-campaigns are put up on the television by both the
players. The following statistic just tells of much of share of ads on TV are captured by these
players. Infact in the next graph you can see how many programs are sponsored by cola
companies and the leader among them is Pepsi. Mainly Pepsi is the company sponsoring most
cricket telecasts happening in India and spends most of its revenue in that field. Nowadays both
Coke and Pepsi are going in for Brand Ambassadors to promote their product. These brand
ambassadors are famous people who usually people idolize and people can relate to them. The
following pictures do not need any explanation as people are familiar with the celebrities and can
thus quickly identify with the product. A list of Celebrities that are brand ambassadors for the
cola companies are as follows. These celebrities are not only asked to work in the advertisements
but they also have to use the product promoted by them and they should not use the companies
rivals products.
Data Analysis
1. Have you ever tried the product (Coca-Cola)?

0
2
4
6
8
10
12
14
16
18
20
male female
0 5 10 15
no. of people
below 10 yrs
10-19 yrs
20-35 yrs
36-50 yrs
51 & above
Age Groups
Out of the 30 people we surveyed, all of them said they had tried Coca-Cola atleast once. This
explains the brand awareness of Coca-Cola.
2. Gender
Out of the 30 respondents, there were 18 men & 12 women.
3. Age groups

yes
77%
no
23%
Coca-Cola
56%
Pepsi
37%
Others
7%
As represented in the chart, majority of the respondents were in the age group of 20-35 years, the
least of the lot being 2 kids who were also asked to participate in the survey.
4. Do you enjoy the product (Coca-Cola)?
From the analysis, it was found that majority of 77% (23 people) respondents said they enjoyed
drinking Coca-Cola as against 23% (7 people) who said they preferred other drinks.
5. What brand would you say is more popular among the public?
a) Coca-Cola
b) Pepsi
c) Other

0 2 4 6 8 10 12 14
I really like them
they are good but nothing special
not bad
I don’t like them
0 5 10 15 20 25
cheap
slightly
overpriced
expensive
As seen in the chart, out of 30 people, 17 respondents said, in their opinion, Coca-Cola was more
popular while 11 respondents said they preferred Pepsi as a popular brand.
6. Do you enjoy Coca-Cola’s advertisements on TV?
The chart represents that a majority of people thought the Advertisements were good enough &
they like what they see.
7. Do you think the price for a bottle of Coca Cola is cheap or expensive?

yes
100%
no
0%0%0%
0 5 10 15
never
once/few times in a year
few times in a month
few times in a week
everyday
As seen in the above figure, a majority of 23 people out of the 30 respondents thought that the
Coca-Cola Cans are slightly overpriced with a few people also rating it as expensive.
8. If you were to see the Coca-Cola logo somewhere would you recognize it?
It is understood from the fact that the Logo of the Company still has its image in the minds of the
people with all the respondents saying they would recognize the “Coca-Cola” Logo.
9. How often do you buy the product?

0 5 10 15 20
super markets
general stores
Restaurants
As it can be seen in the figure, it was concluded that majority of the respondents bought the
product quite frequently. This shows the brand loyalty of the customers towards Coca-Cola.
10. Where do you buy Coca-Cola products the most?
As seen in the above chart, customers usually preferred to buy Coca-cola in restaurants like
KFC, Mc Donalds, etc. The second largest option was General stores stocking Coca-Cola.
Conclusion of the data analysis
 It was observed that Coca-Cola has been perceived quite positively as it has been
projected. People are aware of the Brand & Awareness of Coca-Cola is quite high in the
market. When a product is launched, avid Coke drinkers choose this soda over any other
competitor simply because it's a Coca-Cola product and they trust it.
 Although Coke has been into controversies, people still prefer to stay loyal to the Brand
with Coca-Cola being termed as a more popular brand than Pepsi.

 Coca-Cola products would appear, on the shelf, to have the most expensive range of soft
drinks common to supermarkets, at almost double the cost of no name brands. This can
be for several reasons apart from just to cover the extra costs of promotions, for which no
name brands do without. When people buy Coca-Cola they are not just buying the
beverage but also the image that goes with it, therefore to have the price higher reiterates
the fact that the product is of a better quality than the rest and that the consumer is not
cheap.
 In supermarkets and convenience stores Coca-Cola has their own fridge which contains
only their products. There is little personal selling, but that is made up for in public
relations and corporate image. Coca-Cola sponsors a lot of events including sports and
recreational activities.
The data has clearly indicated that Coca-Cola products are more popular than the products of
Pepsi mainly because of its TASTE, BRAND NAME, INNOVATIVENESS and
AVAILABILITY, thus it should focus on good taste so that it can capture the major part of the
market. The study also indicated that the consumers are satisfied with the Coca-Cola products
and purchase them without any specific occasions.
Recommendations
After completing our project we have concluded some recommendation for the coca cola
company, which are following.
 Coca Cola Company should try to emphasis more on providing their infrastructure in the
market to facilitate their customers.
 According to the survey, conducted by the international firm Srilankan people like little
bit sweeter cola drink. So for this coca cola company should produce their product
according to the local demand.

 Marketing team should try to increase the availability of Coke in rural areas.
 They should also focus the old people.
 The company should make hindrance free arrangement for its customers/retailers to make
any feedback or suggestions as and when they feel.
 The company should focus to bring some more flavours like health drinks and other low-
calorie offerings. Coca-Cola Sri lanka can also introduce some fruit based drinks, as it
has already entered the energy drink arena with “Burn”.
 The company should use new attractive system of word of mouth advertisement to keep
alive the general awareness in the whole market as a whole.
Conclusion
In today’s scenario, customer is the king because he has got various choices around him. If
company is not capable of providing him the desired result he will definitely switch over to the
other provider. Therefore to survive in this cutthroat competition, company need to be the best.
Customer is no more loyal in today’s scenario, so company need to be always on their toes.
Coca Cola is became a global market leader in beverage industry. They became this long journey
through highly instable market conditions. Because they started and maintain their introduction
and growth stages at world’s most important period of businesses and industries.

The success of Coca Cola depends on their world class marketing strategies. They do their
marketing in innovative methods. According to this report their performances in 4p’s are really
strong and over the industry levels.
References
BOOKS:
 Marketing Management – Kotler Philip.
 Research Methodology – Kothari.
WEBSITES:
 www.thecoca-colacompany.com
 www.news.bbc.co.uk

 www.india-server.com
 www.magindia.com
 www.coca-colaindia.com
 www.wikiinvest.com
 www.open2.net

Markering strategies of coka cola company

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to Markering strategies of coka cola company

Similar to Markering strategies of coka cola company (20)

More from Tharushika Ruwangi

More from Tharushika Ruwangi (20)

Recently uploaded

Recently uploaded (20)

Markering strategies of coka cola company