Marketing strategy of Coca cola 2023
Coca-Cola is a world-renowned soft drink company that operates in over 200 countries across the globe. With 80% of its profits generated outside the United States, the company has established a colossal brand recognition. In fact, research shows that a staggering 94% of people around the world are aware of Coca-Cola's iconic red and white logo.
While the secret behind Coca-Cola's enduring success remains a mystery, it's worth noting that the company's humble beginnings in 1886 in Atlanta, Georgia saw only nine servings sold per day. Fast forward 133 years, and the company now sells an astounding 1.9 billion servings each day.
One of the keys to Coca-Cola's sustained success is its unique marketing strategy, which has helped the company achieve broad global recognition. In line with other companies, Coca-Cola's marketing strategy revolves around the four Ps: product, promotion, price, and place. However, the company's approach to the marketing mix strategy is also a key factor in its success.
Overall, this article has highlighted the marketing strategy of Coca-Cola, shedding light on the company's impressive global impact and legacy.
Marketing Strategy
We have to consider many elements when designing the marketing strategy—these strategies related to each other in such a way that they meet the company's goals. Coca-Cola is one of the typical examples that built its marketing strategy so that it is recognised and liked all over the world. Its marketing strategy is that they do proper analysis and research about the factors and then apply it.
Marketing segmentation
We define market segmentation so that consumers who share the same set of needs and demands and as a leading industry, you should need to know the requirements and your target market and how you fulfill and satisfy their needs and wants.
Mass marketing strategy vs. target Marketing strategy
Coca-Cola target every customer in the market, but its main focus is age, family size, income. The perfect segmentation is the reason behind the success of Coca-Cola.
Age
One of the most important factors that Coca-Cola targets are age, divided into two segments.
Firstly they target young people age between10-35. That's why it mostly uses pop stars in their advertisement. They arrange different campaigns in universities, colleges, schools, etc. in acquiring contracts.
They also target elder people 40 plus who are diet conscious and diabetic, introduced diet coke.
Income and family size
Income is another factor that is segmented, and it is related to family size too. Coca-Cola introduced different packaging and sizes at different price levels so that everyone easily affords it. Especially students, middle class, low class so that everyone enjoys the taste of coke.
Geographical segmentation
As we know, the Coca-Cola Company sells its products globally and in more than 200 countries. They apply marketing strategies according to income, culture, customs, and climate.
For example, in America and China in America, the product demand reached a high level, and it is liked by aged people too, and in China, the potential of growth is high, but it differs from habitat and needs.
In Asian regions, people mostly prefer tea instead of beverages. There is variation in marketing strategies, advertisement campaigns, drink look and taste, because of people's diverse taste.
Taste varies according to the region like Asian people like sweeter taste than other countries, but the essential ingredients and process are the same worldwide.
Gender segmentation
Coca- Cola also targets according to gender, male, and female differently. However, there is a difference in taste and preference.
For example, Coca-Cola light is popular among females, especially among young girls, coke zero, and thumbs up are popular among males due to its strong taste.
They use different targeting strategies like in designing the coke zero packagings. They use red and black looks, which gives more masculine looks as compared to coke light. And there is also a difference in commercials and advertising campaigns. These marketing strategies are applied the attract people and increase the sales of the product, which provides with high profit to the company.
PEST-Analysis of the Coca-Cola Company
PEST analysis is abbreviated as political, economic, social, and technology; it analyzes the c environment in which the company operates its system.
Political Factor
The government have proper control and check on the procedures and process of non-alcoholic beverages. FDA (Food and drug administration) controls this system. The changes in the law have a strong influence as it may cause-effect to tax.
In recent years there is a lot of changes in the law to maintain quality and healthy consumption of food. Moreover, in many universities, schools, carbonated drinks are banned.
The production of Coca-Cola influences many government systems.
Many big companies like Coca-Cola practice are lobbing. In Europe, a new system traffic lights are introduced in which healthy foods are indicated by a green light and the non-healthy by a red light. Coca-Cola wanted to advertise this project and start lobbing successfully.
In every country, political stability plays a significant role in investment in the country. According to every state, the company has to look at the employer law of the nation because they have a vast number of employers in different countries.
Economic factors
Economic factors play a significant role, such as the country's economic growth, what Interest rates they offer, what Exchange rates are going, and the Inflation rate matters a lot.
Manufacturer companies, just like Coca-Cola they attract to low exchange rates and the low-interest rates. The company borrows money and invests it. If there are high inflation rates, it affects the company, especially their research on new products or technology because it affects the cost-effectiveness.
Another strategy that Coca-Cola follows is that they invest in developing countries where labor is cheap. For example, in the UK they have to pay more salaries compared to Asian countries.
Societal factors
Social factors play a significant role in marketing. The health-conscious people affect a lot of marketing of Coca-Cola products. They prefer the diet coke over regular Coca-Cola, and many people switch from alcoholic beverages to non- alcoholic because it is not suitable for health.
Population growth rate varies from country to country; it also affects the product marketing and consumption. The country has to adapt its production and distribution strategy according to it.
Age is one of the critical factors, and Coca-Cola took advantage of it. It mostly targets the young generation, and the country with more young generations provides a considerable profit to it compared to the elderly population.
Income distribution and career aptitudes also play an essential role decision-making process.
Coca-Cola is an American product, and its sales also depend on how people open towards America and American products.
Technology
With the advancement in technology and the utilisation of technology tremendously increase the sales of Coca-Cola. For example, company use glass bottles then plastic bottles and cans are utilised it becomes easy for people to bin them easily.
With the advancement of communication channels, television, and the internet significantly influence communication technologies and marketing strategies.
However, with the advancement in technology, we have to be aware of and analyse how to improve new strategies may be those strategies that we follow are wrong and we have to improve our policy and Coca-Cola honestly believe on this principle. They develop their marketing strategy with time.
With the improvement in machinery, it increases the sale and production of Coca-Cola company products.
CCE( Coca-Cola enterprise ) has six modern factories and utilises modern technology to ensure the best better quality and quick delivery. High-tech machinery is installed in Wakefield. It produces can with such a high speed than the eye can see. It has the fastest 21 bottle line production in the world.
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Marketing Strategies of Coca Cola
Product strategy
Coca-cola has a wide range of products, and they are soft drinks these products are offered globally, and its product strategy can be studied by marketing mix. The following are products like Coca-Cola, Diet Coke, Light, Minute Maid, Coca-Cola Life, PowerAde Zero, Coca-Cola Zero, and Sprite Fanta, etc. These products are sold in various packing and sizes. They have a significant share in the market and generate enormous profits for the company.
Pricing strategy
Coca-Cola's price remains fixed for about 73 years. It cost only five cents over time. Competition increases in the market with competitors like Pepsi is the biggest competitor of Coca-Cola. Because of this, the company has to make its pricing strategy flexible. If the company follows this strategy, then consumers of their product start doubting its quality, so this significantly drops the price or its value if the company increases its price unreasonably, and people switch to the alternative.
Place strategy
Coca-cola is the global industry, and they have a vast network of distribution, their products are sold in more than two-hundred countries. They have six operating regions: Latin America, Africa, Europe, Pacific, Eurasia & North America. The company depends on its bottling partners and for packing and distribution. The bottling partners are responsible for manufacture, packaging, and shipping to the agents then transported by road to stockiest then to distributors to retailers and then to the final customer. This is the channel through which it is distributed daily. The coca-cola products are available in almost all retail outlets, supermarkets, grocery stores, etc. its products are also distributed in different restaurants and hotels globally. Coca-Cola has an extensive network of a reverse supply chain that collect the leftover glass bottle and reuse it, thus saving the cost and resources.
Promotion strategy
Due to intense competition in the market, Coca-Cola focuses on different promotional and marketing strategies. They mostly focus on aggressive marketing. According to statistics, Coca-Cola spent 4$ million in 2016, and in 2018 it spends 4.1$ million in promotion of its brand. It utilizes both traditional and international mediums for the advertising of its brand.
Classic bottle
When the company was losing market in 1913, it arranged a global contest for designing the bottle. The company's primary purpose is to indicate to its customers that Coca-Cola is the most exceptional product and to be confused by any other brown beverages. The winner of the contest uses the cocoa pod's design in such a beautiful way that the company starts promoting shape and logo. Then plastic replaces by the glass as strand means of drinking globally.
Company font and logo design
The company decided to write the logo in the Spenserian script to differentiate from its competitors. The recipe and logo remain the same, but packaging modified with time. The way the company uses its logo in marketing strategy remains imprinted on consumers' minds for over a hundred years.
Simplicity
Coca-Cola never deviates from its track even though it becomes a massive industry. Across many decades the marketing strategy communicates the same strong message of happiness, enjoyment, and pleasure. Never go out of its style and easily translated worldwide.
Localised positioning
In 2018 the company launched its campaign share a coke in almost fifty countries, and this campaign went very successful. They print messages, images of celebrities of the region, and these messages are according to the local culture of the area, and language. In this way, they target the local market. This is an excellent example of how localised positioning applied to the global market.
Sponsorships
Coca-Cola is a well-recognised brand for its sponsorships. Its long sponsorships history include American idol, the Olympic Games, NASCAR, and many more.
Socialisation
With the advancement in technology, online communication channels become the most significant source of marketing. And Coca-Cola takes advantage of all social media platforms and create a profile on it. It also takes part in an online advertisement. Like on Facebook, Twitter, Instagram, Snapchat. They are available on all social media platforms. Their marketing strategy is so unique, especially considering how unique the brand is and attracting dozens of people. The primary purpose of Coca-Cola is brand recognition, awareness about the brand.
Global outreach
Coca- Cola Company is globally known for its largest soda industry, and it is operating in more than 200 countries. Whenever any major tragedy happens in any region, the Coca-Cola company is here and support the people whatever possible to them they do to give relief to the people from the disaster and make all the reasonable recovery efforts. These initiatives go unnoticed by media but noticed by people on the ground who are directly affiliated.
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SWOT analysis of Coca Cola
SWOT analysis is the company's framework, and it is the abbreviation of strength, weakness, threats, and opportunities. The internal factors' strength and weaknesses, and the external ones are threads and opportunities.
Strengths of Coca Cola
One of the main strengths of Coca-Cola is its brand name. The company has existed for so long, and it is continuously improving its relationship with its customers and become one of the best-known brands globally.
Coca-cola's amazing marketing strategies brought the company to success by using pop singers and actors to attract people using different slogans. These songs among very popular among the population. Every year Coca-Cola influenced the modern image of Santa clause in Christmas commercials and created a strong bonding among customers.
Coca-Cola also makes a contract with big restaurant chains to increase their product market.
Brand equity
Coca-Cola is present by the award of the highest brand equity in 2011. With its unique identity among all brands, Coca-Cola has the most top brand equity with the vast global reorganization.
Company value
Coca-Cola is a well-renowned industry worldwide, and it is considered one of the most valuable companies across the world. 79.2 billion dollars, the company's value includes numerous operations, assets, profit cost of Coca-Cola, and its brand name.
Global network
As you know, the Coca-Cola company has an extensive network, and it is present in 200 countries you can go anywhere around the globe you will find Coca-Cola. This contributes to the massive recognition of the trademark.
Huge market share
Their biggest competitor of Coca-Cola is Pepsi, and the most apparent winner among two is Coca-Cola and has a significant market share. All other soft drinks such as sprite, diet coke, and coke thumbs up are all the coca-cola growth drivers.
Good marketing strategies
Coca-Cola knows how to win the hearts of people to apply different strategies. Its competitor's target is continuously changing, Pepsi mostly targets youngsters, and Coca-Cola is not restricted, and it targets people of all ages. They also target people by using celebrities in their commercials and advertisement campaign.
Customer Loyalty
Coca-Cola has a lot of customers' loyalty because of their reliable products. Coca-Cola and Fanta have massive fan following because of its taste, and people prefer them over others.
Distribution network
Coca-Cola has an extensive network of distribution because of its demand for the product and fulfils people's needs. In this way, they command over such a big market.
Weaknesses of Coca Cola
Coca-Cola products aren't healthy, and most of its products are banned in the campuses due to these people avoid buying for their kids. People prefer healthy food, so coca-cola has to develop new products faster.
Due to America's image in the world, many people refuse to buy its products.
Competition with Pepsi
Pepsi gives fierce competition to the coca-cola, although it is clear that the winner is Coca-Cola. The competition among these two brands is so intense, and Pepsi does not give up easily.
Low Product Diversification
Pepsi makes a smart move and diversified its business into a new segment: snacks they introduced lays and kurkure. But Coca-Cola is still in the beverages business. This new segment is a great driver of revenue for the company.
Not good for health
As the trend is changing and people are more conscious about health. These carbonated drinks cause obesity, and it is a significant problem nowadays, and Coca-Cola is one of the largest companies of carbonated beverages. In developed countries may be the market share of the company decline because people prefer healthy drinks over carbonated drinks.
Opportunities of Coca cola
Diversification
The Coca-Cola company has to diversify its business in health and food and improve its products according to its demand. In this way, the company will get more profit from their loyal customers by selling its products. They also diversify its business in the snack segment, the supply chain which distributes beverages will distribute snacks by sharing the supply chain cost.
Developing nations
Although the trend is changing in developing countries and shifting towards healthy drinks, in developing countries, carbonated beverages are introduced as a source of joy. During hot summers in developing countries, demand increases, which generates high revenue for the company.
Packaged drinking water
As trend changing and people are becoming more hygiene conscious, Coca-cola introduced packaged water, Kinley. Kinley expansion is slow, but definitely, it has the potential to expand. So the company should focus on the Kinley expansion and gain people's interest and take Nestle's level.
Improvement in supply chain
The supply chain causes high costs for the company, and the whole business of Coca-Cola is based on transportation and distribution. The company should develop strategies to break down the cost of the supply chain.
Market the lesser selling product
There are many products under the Coca-Cola so the company should Market the products that are not selling. However, the company spends a lot on launching these products so the company should spend on the advertisement for these products. This will increase the sale of the product, and it raises the revenue of the business.
Threats for Coca - Cola
Basic ingredient sourcing
The biggest threat to the coca-cola industry is water. As you know water storage problem is increasing day by day, this is because the climate is changing .later or sooner people will raise a finger on the beverage industry. If water is limited, then it will cause a considerable loss to the company
Indirect competitors
Various international coffee chains such as Costa Coffee, Starbucks, Café coffee day are gaining popularity, and these chains cause good completion in the market. They are not a significant threat to Coca-Cola. The same case with the healthy drinks is stealing the share of the company.
Conclusion
We conclude that the Coca-Cola marketing strategy depends on its happiness machine videos, campaigns, make human connections. They follow new marketing strategies with time, and at the same time, and they follow their old simple principles which they set in the starting. Another reason behind the success is that they do proper research and analyses about the new technology and then apply that. And they keep themselves aware of every innovation.
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