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Company Coca-Cola Essay

Marketing Strategy -- Coca Cola Coca Cola Company

Marketing Strategy - Coca Cola

The Coca-Cola Company is a market leader with the market of 42% in the soft-drink industry and possesses a sustainable brand image due to its variety of products and product quality. The current study aims to analyze and discuss the current marketing strategies adopted by the Coca-Cola Company. The Coca-Cola Companies contains a large portfolio of products that are available in more than 200 countries of the world. The company holds the ability to develop its current and existing products in order to meet the customer preferences and demands.

History of the Company

Industry

Products

Global Marketing Strategy

Company's Brand

Target Market

Selection of Products

Pricing

Distribution

Advertisement and Promotion

Competitive Advantage

Discussion

Future Outlook of the Company

REFERENCES

Introduction

History of the Company

The Coca-Cola Company was incorporated in 1892 by Asa Griggs Candler and the coca-cola formula was invented by a pharmacist named John Stith Pemberton. The Coca-Cola Company is an American-Multinational corporation which produces nonalcoholic beverage syrups of its products which are distributed all over the world. The company tends to be a market leader in soft-drink industry with the total market share of 42% in the global market. The company is operating in 200 countries and employs 130,600 people all over the world including subsidiaries. According to Forbes, the company is ranked number 4 at world's most valuable brands with total annual sales of $46.25 billion. The revenue of the company is spread in which United States accounts for 43%, 37% revenue is accounted by China, Mexico and Japan, whereas, 20% revenue is accounted for the rest of the world. The company has claimed that it serves 1.6 billion customers every day. The company has a strong portfolio and with the help of this strong and extended portfolio the company has been satisfying the needs of its consumers for over a century.

Industry

The Coca-Cola Company operates in the Soft-Drink Industry in which nonalcoholic beverages are produced. The industry has generated $291 billion sales in 2010 and estimates to increase sales up to $310 billion by the end of 2015(Pearson, 2014). The Coca-Cola Company has the largest market share in the soft-drink industry and tends to grow with the expansion of the industry. The soft-drinks industry is found to be dynamic in nature in which consumers adhere to caffeinated, decaffeinated, energy and fruit drinks and in order to meet that several beverages industries are striving to meet the ever changing demands of consumers whereas the Coca-Cola company seems to satisfy its wide range of customers with the help of its portfolio that provides soft-drinks to different segments of the targeted population.

Products

The Coca-Cola Company sells 500 products in more than 200 countries. The company produces a wide range of soft-drink beverages which includes a variety of Coca-Cola, Sports Drinks, Fruit Drinks, Energy Drinks and Water.

Global Marketing Strategy

The Coca-Cola Company operates globally and its effective marketing strategies have played an important role in the successful globalization of the company and its products. The company's adopted strategies are discussed below:

Company's Brand

The company imposes a strong brand and is ranked number 4 in the world and the company possesses the portfolio that is estimated to be valued as $15 billion which enlists Coca-Cola drink, Fanta, Sprite, Coke-Zero, Vitamin Water, Minute Maid, Georgia, Irn-Bru, HuiyuanFriut Juice and Del Valle. The brand of the company is a famous trademark which is recognized by 83% of the total population of the world.

Target Market

The Coca-Cola Company is aimed to satisfy the large number of consumers and attracts various target markets with the variety of its products. The target market of the company targets all types of consumers with a variety of caffeinated and decaffeinated drinks. However, the company also produces specific type of consumers with its specific products. The company targets athletes by producing a number of sport drinks for athletes and sports persons so that the adequate amount of minerals and calories help them to stay fresh and perform sports related physical activities. Some examples include PowerAde, Aquarius and Vitamin Energy. Moreover, the company targets health conscious people by providing its number of products in zero calories so that the people who refrain to use the specific amount of carbohydrates can enjoy its beverages. The examples include Diet Coke, Diet Cherry Coke, Diet Vanilla Coke and Green Tea and Coke Zero. However, a number of fruit juices are produced by the company to target the market which adheres to the fresh fruit juices i.e. Minute Maid and Huiyuan Fruit Juices. The company targets old...

The company observes the soft-industry trends and consumers preference and modifies its products with respect to the consumer preferences by means of adding flavors in its existing products.
2. The company produces its beverages in the form of concentrated syrups which contains over 300 brands of syrups with respect to its number of products and their variety in flavors.

3. The company packages its products in bottles and cans which are designed in such way that provides adequate grip while drinking and keeps the drinks cold for longer.

4. The company focuses the differentiation strategy in order to provide the 'best quality and variety' of drinks to its consumers. The company implies differentiation strategy to its products so that its products can differ from its competitors in order to provide maximum value to its customers.

Pricing

1. The prices of the Coca-Cola Company products differ with respect to their size and type. The company offers competition-based prices in which the prices of its products remain less than or equal to the price that is being offered by its competitors.

2. The company also strategizes its pricing methods during special occasions and offers sales discount of its products.

Distribution

1. The company has adopted indirect distribution method in order to make its products available to the consumers in which distribution intermediaries are used to sell its products and make it available in the market.

2. The company follows intensive distribution for its products in which the company's products are made available in the every possible outlet, mainly consisting of retails shops, restaurants, fuel stations, schools, vending machines, sport gymnasiums and event avenues.

Advertisement and Promotion

1. The company uses mass media advertisements in TV-commercials which are on-aired to increase the awareness about its products.

2. The company also promotes sports events like Olympics and FIFA-World Cup in order to promote, attract and retain its target market of athletes.

3. The company promotes TV shows like American Idol in order to promote and advertise its products.

Competitive Advantage

1. The company possesses a strong competitive advantage in which it possesses a portfolio of products that is able to attract and target large number of population all over the world

2. The company's leading market share has provided it with large number of loyal customers and due to which the company holds a competitive advantage towards the new entrants in the industry.

3. The company's products can be substituted by other brands but the promising quality and brand of the company cannot be compromised which provides the company with strong competitive advantage.

4. The company possesses large market share which gives it a strong power over its suppliers and the company holds competitive advantage over its suppliers by means of supplies and production processes.

Discussion

The Coca-Cola Company is the largest soft-drink beverage company with the largest market share of 42% in the global market. The company has been operating for more than a century which provides the company with knowledge curve about the business and the company continues to modify its products with respect to their preferences. The company has the potential to identify the current market and consumer trends and the company is able to answer the current trends with the development and modification of its products i.e. introduction of flavors in Coca-Cola drink etc.

According to Rumelt (1980), the companies that are market leader are supposed to have competitive edge over their competitors and possess the skills and knowledge to retaliate its competitors and continue to modify and develop its products. The notion seems adequate with the performance of Coca-Cola in which the company possesses strong brand image due to its promotional activities by means of TV-ads and sponsorship of famous events. The company has been successful in the new product development and existing product development in order to retaliate its competitors and new entrants the industry. The company operates a large distribution channel and sells its products in over 200 countries.

The study inferred by Banutu-Gomez (2012) suggests that the company that possesses effective and efficient means of differentiation in its products and adhere efficient distribution system then the company has the potential to sustain globally and meet the global demands. The company is aimed to provide its customers with variety of soft drinks with great quality in order to meet their demand to stay fresh and enjoy nonalcoholic drinks. The company has created value for its customers by ensuring its products to possess high quality and variety in its products. The company possesses strong brand image due to its promotional…

Sources used in this document:
REFERENCES

Banutu-Gomez, M.B. (2012). Coca-cola: International Business Strategy for Globalization. The Business & Management Review, 3(1), 155-169.

Forbes. (2014). World's Most Valuable Brands. Retrieved From: http://www.forbes.com/companies/coca-cola/

Pearson. L. (2014).Global Soft Drink Industry. Report Linker. Retrieved From: http://www.reportlinker.com/ci02018/Soft-Drink.html

Rumelt, R.P. (1998). Evaluating business strategy.Mintzberg H, Quinn JB, Ghoshal S., The Strategy Process, Revised Edition, Prentice Hall Europe.
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