Coca-cola marketing strategy – Marketing strategy of Coca-cola: Coca-Cola is the largest soft drink manufacturer in the world and has operations in over 200 countries. There are many sparkling and still drinks that Coca-Cola sells. It earns about 60% of its revenue from outside the United States and approximately 80% of its operating profits. It is well-known for its brand recognition around the world. Business Insider estimates that 94% of the world’s population recognizes the Coca-Cola red and white logo.
Coca-cola At A Glance – Marketing Strategy of Coca-cola
Company : The Coca-Cola Company
CEO: James Quincey
Founder: Asa Griggs Candler
Year founded: 29 January 1892, Atlanta, Georgia, United States
Headquarters: The Coca-Cola Company is headquartered in Atlanta, GA and has 48 offices located throughout the US.
Annual Revenue: US$33.01 billion
Profit | Net income: US$7.7 Million
Number of employees : 86,200
Products & Services: Coca-Cola | Diet Coke | Coke Zero | Flavored Coca-Cola/Diet Coke | Coca-Cola Energy
Coca cola Competitors
Coca cola Fun Facts: The Coca-Cola recipe is kept in a secure vault, At the World of Coca-Cola museum in Atlanta, you can visit The Vault of the Secret Formula exhibit, where the recipe is held.
Marketing Strategy of Coca-cola
Coca cola’s Marketing Strategy covers various aspects of the business right from segmentation and targeting to the overall mission and vision of the company and the various parameters which the company executes to become the top brand that it has in the market. So what is the Marketing Strategy of Coca-cola? Let us discuss.
Segmentation, Targeting, Positioning – Coca-cola Marketing Strategy
Segmentation allows the brand to identify the right products for a particular customer group. Coca-Cola does not target anyone’s segment but adapts its marketing strategy through the development of new products.
It also uses a mix of mass marketing strategies and niche marketing to drive sales in the highly competitive market. Its Cola is loved by people of all ages, while the diet soda targets a niche segment of people who are more conscious about their health.
Coca-Cola employs a competitive positioning strategy to stay ahead of its competition in the Non-alcoholic beverage market.
Coca-cola Mission Statement
“Our Roadmap starts with our mission, which is enduring. It declares our purpose as a company and serves as the standard against which we weigh our actions and decisions.
- To refresh the world.
- To inspire moments of optimism and happiness.
- To create value and make a difference.”
Coca-cola Vision Statement
“Our vision serves as the framework for our Roadmap and guides every aspect of our business by describing what we need to accomplish 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 shareholders while being mindful of our overall responsibilities.
- Productivity: Be a highly effective, lean, and fast-moving organization.”
“Refreshing the world, one story at a time”.
Competitive Advantage – Coca-cola Marketing Strategy
Coca-Cola’s competitive advantage is in comparison to its competitors in terms of Operations Cost Control, Brand Portfolio, Channel Marketing, and Collaborative Customer Relationship.
Coca-Cola has outsourced its bottling operations to FEMSA, the largest Bottling franchisee for the Coca-Cola trademark beverages around the globe. It assists the company in capturing growth potential in the non-carbonated beverage sector. Additionally, it helps in strategic acquisitions through agreements to acquire companies together with The Coca-Cola Company.
The company’s diverse product portfolio, outsourcing operations, and economies of scale help it to reduce its operational cost and increase its profitability.
Strong brand Portfolio:
The company offers a strong and diverse portfolio of beverages to customers and continues to explore promising beverage categories to drive growth in its different markets. The company’s beverage portfolio includes carbonated soft drinks and bottled water as well as juices, orangeades, and teas. It also offers energy drinks such as milk, coffee, and beer in certain markets like Brazil.
Collaborative customer relationships:
Coca-Cola believes strongly in participative marketing that creates shared values between all stakeholders. The company tailors its vast portfolio of products and bundles for its stores based on the market’s socioeconomic demographics and relevant consumption occasions.
BCG Matrix – Coca-cola Marketing Strategy
Coca-Cola’s trademark brand is in a different BCG matrix position based on the need and competitive position.
Thumps-up Sprite Fanta and Maaza all rank as Stars because they have high market share while being highly competitive in their respective segments.
Low sales are the reason Kinley is in doubt. The presence of many local players in the highly commoditized marketplace means that Kinley is difficult to position.
Coca-Cola’s main brand is considered a cash cow as it only has one competitor in Pepsi. It also has a strong presence around the globe.
Because it isn’t able to attract customers in this segment, Coke-diet, Tea, and Coffee brands are dogs.
Distribution Strategy – Coca-cola Marketing Strategy
It employs several sales and distribution models depending upon market conditions, geographical conditions, and customer profiles.
(1) The pre-sale system separates sales and delivery functions. This allows trucks to be loaded with the product mix that the retailers have ordered previously, increasing sales and distribution efficiency.
(2) The conventional truck route system in which the driver makes immediate sales using inventory on the truck.
(3) A hybrid distribution system where one truck can carry product for immediate sale as well as product that was previously ordered through the presale system.
(4) The telemarketing program, could be combined with pre-sales visits.
(5) Sales through third-party wholesalers.
Brand equity – Coca-cola Marketing Strategy
Coca-Cola is the only brand that is widely recognized around the world. Brand Equity is about its value. It’s all about stories, memories, and human connections. These connections were created over many years by skilled marketers who met at countless board meetings.
Coca-Cola has been a master at this for more than 100 years. This equity comes from the willingness of people to pay a premium to support the brand and their unwillingness to accept substitutions. Coca-Cola’s marketing strategy is to associate happiness, positiveness, and the good things with their products. This is how they can create high TOMA (Top-of-mind awareness).
Competitive Analysis – Coca-cola Marketing Strategy
The Non-alcoholic beverage segment’s big players have a similar strategy and objectives. This innovation and creative marketing campaigns can help companies distinguish each other. The company faces another major problem right now: competition from local players. Pepsi has the largest competitor to Coca-Cola, with products in all segments.
Market Analysis – Coca-cola Marketing Strategy
The non-alcoholic beverage market is growing rapidly. This will be due to rising demand from developing countries and emerging markets. This industry offers many options for customers, including tea/coffee and soft drinks. Therefore, customers can switch to another brand. Strong brand building is essential to distinguish products and retain customers.
Customer Analysis – Coca-cola Marketing Strategy
Coca-Cola targets a mass audience. Customers expect low prices, great taste, convenience, accessibility, and many options.
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