• The Coca-Cola company is the world largest beverage company
• The company best known product coca cola was invented by john Stith Pemberton in
• The Coca-Cola formula and brand was bought in 1889 by ASA Candler who
incorporated The Coca-Cola company in 1892.
• Coca-Cola currently offers nearly 400 brands in over 200 countries or territories and
serves 1.5 billion servings each day.
• The Coca-Cola company headquarter is in Atlanta, Georgia.
• Its current President and CEO is Mukhtar Kent.
• With the acquisition of major brands in India, it went on to be known as The
Hindustan Coca Cola Beverages Pvt. Ltd.
• Established in 1886, headquarters in Atlanta, Georgia
• Based on Interbrand’s best global brand study of 2015, Coca-Cola was the world's third most
• Gained an advantage over pepsi when it took over Parle in 1994
• Coca Cola focuses on a diversified product portfolio, both within the beverage industry and
has few products outside of that industry
Model of Brand Selection
Customer buys on value
Value equals quality relative price
Quality includes all non-price attributes that count in the purchase decisions
Market Shares in % figures(2012-2013)
Coke + Parle
Revenue US$ 44.294 billion
Operating Income US$ 8.728 billion
Net Income US$ 7.351 billion (2015)
Total Assets US$ 90.093 billion
Total Equity US$ 25.554 billion
Coke Pepsi Others
The Carbonated beverage
industry is almost a ‘Duopoly’
with Coke and Pepsi occupying
almost 70% of the market share
Coke Vs. Pepsi
The contention is best characterized by the well-
known “Pepsi Challenge”, which asks strangers to
sit down blindfolded, try both products, and
decide once and for all which is superior.
The general consensus from the taste test was that
Pepsi was better.
But, the difference between the sodas (the reason
for Pepsi’s superior taste) was so marginal that it
warranted a blindfolded taste test, so, it’s the
branding that ultimately plays a big role in
Social Visibility Net Sentiment Reach Growth Social
• Brand loyalty of Coke is way better than that
• The most recognized word after ok is coca-
• People associate Pepsi and coke with specific
food like for example Pepsi is preferred over
coke with Pizza while Coke is favoured with
burgers and fries
In addition to the above social index figures
• Coca-Cola’s market capitalization is over 30% greater than PepsiCo’s
• Coca-Cola spends considerably more on advertising
• Coke has 120,000 more Twitter followers than Pepsi
• Diet Pepsi has overtaken diet coke in terms of market share
The raw numbers are clearly indicative of Coca-
• Customer preference is a core value of Coca Cola’s business
• For ensuring ongoing consumer relevance and excellence in the marketplace focuses on five core
principles - Availability , Affordability , Acceptability , Activation and Attitude
• Coca Cola has drinks that targets different age groups, sexes, lifestyle etc.
• Oasis- Juice made for the younger working adults, between the ages of 20-30; Disney Hundred Acre
Woods – fruit juice for kids; Odwalla - for adults who want a grown up taste in a healthy fruit
beverage; Coca Cola Zero targets teens that don't want calories but want the taste; Diet Coca Cola-
targets adults, between 30-50 who are health conscious but want the taste; Powerade - sport drink,
targets athletes between 13-27 ages
• Targets different income level. For example, by packaging: for low level income the company is
selling returnable glass bottle; for high level income, the company is selling coke in tins
• Many people make their purchase decisions partially based on a company’s ethics, or social
responsibility. By contributing to stop pollution both within and outside their factories, Coca Cola
will gain the trust and respect of the potential buyers, who care about saving our environment.
Targeting and Positioning
•Different ads and product for different segments
•Primary market consisting of people in the age group 10-25
•The core idea – “Fun and Happiness”
•“Think Global, Act Local”
•“One Brand” global marketing approach
• Widest portfolio in beverage industry comprising of
• Beverages are divided into diet category, 100% fruit
juices, fruit drinks, water, energy drinks, tea and coffee.
• Market presence in around 200 countries.
• Brands in India are Fanta, Maaza, Limca, sprite, Thums
up, Minute Maid, Nimbu fresh, Nested iced tea
• Due to the availability of wide range products the pricing is
done according to the market and geographic segment.
• Each sub-brand of coca cola has different pricing strategy.
• Their pricing strategy is based on the competitors pricing,
• 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
• Coca cola is the world’s most favorite brand and is
available all over the world.
• The distribution system of coca cola follows the FMCG
• The effective distribution network of coke has almost
eroded the small and middle level players in the
• In India they have captured even the rural market by
extensive distribution and have eroded the market
share of Bovonto, Kalimark etc
• Coca cola adopts various advertising and promotional
strategies to create an increased demand in the market by
associating with life style and behaviour and mainly targeting
value based advertising.
• Coca cola uses CSR as its marketing tool to gain emotional
benefits in consumers mind.
• It allows price discounts and allowances to distributors and
retailers in order to push more products into the market.
• It employs both push strategy through promotions and pull
strategy through advertisements and campaigns.
How Coke is perceived by its
Customers(compared to its biggest rival Pepsi)
• Perception is commonly called “positioning” or “hitting an angle.”
• If we took Coca Cola and added up all of their hard assets (factories,
trucks, real estate, etc.) it would add up to about $14B as of 2010, and
yet their name alone is worth over $28B? That means you could buy
up everything that Coca Cola owns and still only own 1/3 of the
company’s value to shareholders.
• Let’s identify how Cocaola is perceived against its biggest rival Pepsi
around 4 main topics:
1. The brand as a product
2. The brand as a person
3. The brand as an organization
4. The brand as a symbol
The brand as a
What do people prefer about the
taste and which of the 2 is the most
qualitative one, the most reliable
Coke is much more tasty than
Pepsi, or at least people clearly
prefer the taste of Coke vs Pepsi’s.
The brand as a
what do people prefer regarding
the value and identity of both
brands? Which of the 2 brands
makes people dream the
most? What are the best perceived
values and which one of the 2
brands make people feel passion?
Both brands’ culture are not really
clear in people’s mind.
The brand as an
what is the culture of the brand, the
universe of the brand, its
engagement through other topics.
Coke is perceived to be a better
brand in term of engagement
through social or environmental
concerns for example, with a strong
brand universe, whereas Pepsi
doesn’t seem to have a specific
universe that make people dream.
The brand as a
What brand is a myth and a symbol
in people’s mind? Which logo do
they remind first?
Once again, Coke’s logo is much
more known than Pepsi’s, as well as
regarding the fact that the brand is
quite a myth in people’s mind!
• Why Differentiation?
• A differentiation strategy is the development of a product or service that offers
unique and differentiating attributes which are valued by customers and perceive
to be better than or different from the products of the competition.
• Differentiation in Coca Cola
• Coca Cola Company spends round about 20% of their total advertisement budget
for maintaining and communicating on its differentiation strategy.
• Coca cola has created its differentiation by utilizing soft sell approach. Company
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
• Symbol of joy and fun
• ‘The Secret Formula‘