Coca Cola has successfully differentiated itself through quality, innovation, and branding. It spends heavily on advertising to communicate its differentiation strategy. Coca Cola has also diversified its product portfolio through sub-brands like Diet Coke and flavors. It owns many beverage brands across categories like sparkling beverages, water, juice and owns bottling operations. Coca Cola's diversification strategy helps maximize its market share across industries.

1. DIFFERENTIATION STRATEGIES AND
DIVERSIFICATION IN COCA COLA

2. DIFFERENTIATION
 Process
 Distinguishing a product
 Source of competitive advantage
 Areas - quality, price, functions, design,
characteristics, advertising and availability

3. DIFFERENTIATION STRATEGIES
• Differentiated focus
• Cost leadership strategy
• Cost focus

4. DIFFERENTATIONS’ EFFECTS
• To gain a competitive advantage:
Focus on the weaknesses of the competitor
Avoid the strengths of the competitor

5. DIVERSIFICATION
 Modification of a product or service
 A more expansive target market
 Not highlighting, it is create a new section
of the market
 Usually used by pre-existing brands
Failure or success is associated with original
brand

6. DIFFERENTIATION VERSUS
DIVERSIFICATION
 Less risky to differentiate
 Diversification - risk of too little interest or too
much interest

7. DIFFERENTIATION IN COCA COLA
• To raise brand loyalty and brand equity, using
innovation , communication and
differentiation
• Coca Cola Company spends 20% of total
advertisement budget for maintaining and
communicating on its differentiation strategy
• Coca Cola has created its differentiation by
utilizing soft sell approach

8. Coca Cola has successfully positioned itself on
the following standards:
• Corporate reputation for quality and
innovation: one of the best place to work
• Successful communication of perceived
strengths of the product: Integrated
marketing strategy
• Symbol of joy and fun

9. • Coca Cola has based its strategy on
diversification as its main brand is derived by
sub-products maintaining a strong affiliation
with Coca Cola: the Diet Coke Cola (Coca
Cola light, zero ...), Lemon Coke, Cherry Coke,
Vanilla Coke….
• Aware of its situation and context

10. • Recipe - THE SECRET
• Packaging
The packaging and shapes of Coca Cola soda
products are diversified and adapted to the target
and to the moment of consumption. The core brand
is Coke (best selling soft drink around the world)
and contains different kind of products.

11. • All over the world, the classic Coke has the
same color: red
• Diet Coke is grey, more “shiny” as it reflects
more the light.
• Coke Zero is black, corresponding to the target
(men).

12. • The different shapes are:
- Glass bottle (0,25l; 0,5l; 1,5l)
- Plastic bottle (0,5 l; 1l; 1,5l, 2l)
- Cans (0,25l; 0,33l)
• Strict environmental guidelines - ensure
quality for the consumer and ensure the
packaging has as less as possible impact on
environment

13. DIVERSIFICATION IN COCA COLA
• Coca Cola owns number of different brands in
soft drink industry, energy drink industry,
water industry and many other beverage
industries
• To maximize market share the company offers
a broad range of soft drinks, from orange
through to diet versions of Coke itself.
• Selling more than 500 sparkling and still
brands

14. • Selling non-alcoholic beverages – sparkling
beverages, water, enhanced and flavored
water beverages, tea, coffee, juice, sports
beverages and energy drinks
• Diet Coke, Fanta, Sprite, Coca-Cola Zero,
Vitaminwater, Powerade, Minute Maid,
Simply, Georgia and Del Valle
• Diversification of bottling business to other
businesses like pharmaceuticals

15. • Columbia Pictures Entertainment Inc., the
movie and television studio that Coca-Cola
bought in 1982 and sold to the Sony
Corporation last year.
• A slightly profitable food subsidiary, the maker
of Minute Maid orange juice