Coca-Cola Marketing Essay Example

entities, there are thirteen licensed bottling partners who have been authorized to produce and distribute beverages under specific trademarks on behalf of The Coca-Cola Company.

To ensure widespread distribution, Coca-Cola India Private Limited sells concentrate and beverage bases to authorized bottlers. These bottlers then develop local markets and supply beverages to various businesses such as grocers, retailers supermarkets,and restaurants. Through this network of customers, distributors, and retailers, our products reach consumers all over India.

Since its re-entry into the country until 2011, the Coca Cola system has invested $2 billion in India with plans for an additional $5 billion investment by 2020. This significant investment has allowed us to employ more than 25 thousand people directly in India including those working on contract basis.

Not only does our procurement, supply, and distribution system create job opportunities within our own company but it also stimulates job growth in related industries. We strive to provide a safe and inclusive work environment while offering abundant opportunities for our employees both in India and globally.

Overall,the beverage industry plays a significant role in driving economic growth in India.The carbonated soft-drink industry, according to the National Council of Applied Economic Research (NCAR), has a 2.1 output multiplier effect. This means that increasing beverage output by one unit will have twice the direct and indirect impact on the economy. The NCAR study also reveals that the production of an additional 1000 cases generates 410 man days of employment. Our products play a significant role in job creation and GDP growth, particularly in small towns and villages where they are essential components of the micro economy.

In India, Coca-Cola is among the largest purchasers of certain agricultural

products, creating strong backward and forward linkages within the industry. This stimulates demand for materials like glass, plastic, refrigeration equipment while simultaneously driving incremental growth for post-production enterprises such as merchandising, marketing, and sales.

The Coca-Cola Company places great value on good citizenship and strives to positively impact various aspects of society. We aim to refresh the market, enhance workplace experiences, protect the environment, and strengthen communities. Through our active support in areas like education, health care, water availability, and nutrition accessibility we address diverse needs. In times of disaster relief efforts we utilize our distribution network for assistance purposes while also promoting awareness about PET recycling through our marketing capabilities.

Furthermore, we work towards improving access to education and clean water in communities where we operate. To achieve this goal effectively, initiatives are implemented by the Coca-Cola India Foundation which focuses on projects and programs that contribute to inclusive growth and development within these communities.It should be noted that The Coca-Cola Company is the largest beverage company worldwide. Recognized as the world's most valuable brand, we offer a range of beverages including Diet Coke, Fan, Sprite, diet soft drinks, light soft drinks, water, juices, juice drinks tea coffee sports drinks etc. Our extensive beverage distribution system allows consumers in over 200 countries to enjoy our beverages at a rate exceeding 1.8 billion servings per day.

In India, Coca-Cola is the leading beverage company with a diverse range of brands like Coca-Cola, Diet Coke, Thumb Up, Fan, Lima, Sprite, Amaze, Minute Maid Pulpy Orange , Minute Maid Nimbi Fresh , Minute Maid 100%, Burn , Kinney and Georgia tea and coffee. As one of the early investors in

India ,the Coca-Cola system creates direct and indirect employment for over 150000 people . They have over 2.2 million retailers and significantly contribute to industries such as glass , plastics,resin manufacturers,sugar , automobiles , white goods manufacturers,banking,and more.

The Coca-Cola Company is committed to good citizenship and has always placed high value on it.Coca-Cola's main focus is embodied in their mission statement, known as the Coca-Cola Promise. This promise states that their business exists to benefit and refresh all those they engage with. Their goals include refreshing markets, protecting and enhancing the environment, and strengthening communities. In India, Coca Cola actively supports community programs that prioritize education, health, and water conservation. They have implemented over 500 rainwater harvesting structures and check dams. The company is dedicated to collaborating with Indian communities for mutual growth and development.

The iconic Coca-Cola logo was created in 1885 by Frank Mason Robinson, who served as John Phenomenon's bookkeeper at the time. Robinson not only came up with the name but also designed the distinctive cursive script of the logo. This particular style of handwriting was widely used during the mid-19th century in formal settings and is known as Spenserian script. Robinson played a crucial role in early Coca-Cola advertising by suggesting innovative promotional ideas to Phenomenon. These ideas included distributing thousands of free drink coupons and utilizing publicity banners and streetcar signs throughout Atlanta.

In India, some notable slogans used by Coca-Cola are "than mutual Coca-Cola!" and "Open Happiness!" Additionally, Coca Cola adopts a pricing strategy that aligns with their competitors using a meet-the-competition approach while maintaining affordability for consumersThroughout its more than 100-year history, Coca Cola has consistently adjusted and refined

its pricing strategy in order to stay ahead of strong competitors. The CEO of Pepsi Co once acknowledged that they have to be sharper because of Coca Cola's success and even said they would pray for someone like them if they didn't exist. Over time, Coca Cola has made various pricing decisions with the aim of maximizing shareholder value. When Pepsi initiates price reductions to gain market share, Coca Cola responds by making slight adjustments. However, not all products are affected by these adjustments. In countries such as India or Pakistan, Coca Cola focuses on reducing prices for their smaller-sized bottles as a way to penetrate price-sensitive markets and increase brand awareness among the population. By positioning itself as a "premium" brand compared to competitors like Pepsi, Coca Cola is associated with intangible benefits related to lifestyle, group affiliation, moments of joy and happiness. Nevertheless, the marketing strategy still emphasizes offering affordable enjoyment of life. Regular on-pack promotions can be found at retail stores in order to meet company objectives and attract more consumers. While segmentation is used to determine appropriate products for different customer types, Coca Cola does not specifically target a particular segment but instead adapts its marketing strategy by creating new products.Coca Cola primarily targets individuals aged 12-30, but also reaches those under 12 or over 30 through partnerships and its value among consumers. The company does not focus on gender and considers every customer a potential consumer. Their main target age group is 18-25-year-olds, comprising about 40% of their market. Coca Cola recognizes the importance of catering to busy individuals and youth who rely heavily on mobile technology. Students and family-oriented

individuals are the primary consumers. The brand appeals to those seeking fun, joy, and entertainment. Coca Cola follows a "think global, act local" approach to maintain global branding while meeting local needs in different countries. This strategy has resulted in strong consumer loyalty worldwide.The brand's Unique Selling Proposition is centered around the idea of "Living the coke side of life," which emphasizes happiness and enjoyment. When people think of Coca-Cola, they primarily associate it with fun and entertainment. In India A, which includes metropolitan areas and large towns, Coca-Cola celebrated the benefits of increasing social and economic freedoms. Their tagline "Life ho to assai" (life as it should be) represented this concept. On the other hand, in India B, which consists of small towns and rural areas, Coca-Cola aimed to become the first brand to offer targeted communication and gain ownership of the rural market.

In this segment, the primary need was out-of-home thirst-quenching, with soft drinks being seen as undifferentiated by rural consumers. However, considering that an average Coke cost RSI 10 and an average day's wages were around RSI 100, it was considered a luxury for only a few people. To make Coke more affordable for the promising rural market, Coca-Cola launched the Accessibility Campaign. This campaign introduced smaller bottles compared to those found in urban markets and reduced the price by half to RSI 5. By doing so, they bridged the gap between Coke and other basic refreshments like lemonade and tea, making soft drinks accessible for the first time.

Alongside changes in pricing strategy, Coca-Cola also invested in distribution infrastructure to effectively reach a dispersed population in rural areas.In 2001, the number of

retail outlets for Coca-Cola doubled from 80,000 to 160,000 in order to target specific regions. This expansion led to an increase in market penetration from 13% to 25%. Additionally, their advertising and promotion strategy incorporated local language and idiomatic expressions. The word "Than" was used generically to refer to cold beverages, giving it multiple enjoyable interpretations. The phrase "Coke means refreshment" directly addressed the primary need for cold refreshments while positioning Coke as a generic cold beverage like tea, lassi, or lemonade. As a result of this successful campaign, Coca-Cola received awards for Advertiser of the Year and Campaign of the Year in 2003.

Furthermore, Hindustan Coca Cola Beverages Pet.Ltd. (HICCUP) established distribution routes in India using different methods. These include:

1. Key Accounts: These are significant institutional customers that contribute a substantial portion of the company's total sales. They typically make large purchases in one transaction and are offered credit terms of either one month or 15 days due to their high volumes and bargaining power. Examples of key accounts include defense canteens, clubs, fine dining restaurants, hotels, and corporate houses.

2.Future Consumption refers to outlets that keep a sufficient stock of Coca-Cola products for future use, ensuring the product's availability. Examples of such outlets include food courts, departmental stores, and supermarkets.

Immediate Consumption includes retail stores that require daily restocking for immediate consumption. Products sold in these outlets are typically consumed on the same day, with minimal leftover bottles for the following day's sales. Immediate consumption outlets, like restaurants and small retailers, serve specific areas at once. This distribution route covers remote areas, rural places, and hill stations with low population density.

Direct distribution is when the bottling

unit or bottler partner handles sales, delivery, merchandising, and local account management at the store level. Indirect distribution occurs when a non-affiliated organization manages product sales within a structured network.

The Coca-Cola distribution system oversees various functions including sales, delivery, merchandising, and local account management. Merchandising plays an important role in communicating product benefits to consumers during purchase. Salespeople and delivery personnel also handle merchandising responsibilities and special teams may be assigned specifically for Coca-Cola products.Coca-Cola has introduced a solar-powered cooler to address the limited access to power in rural areas, hindering chilled soft drink availability. This CEO-friendly innovation utilizes renewable energy resources and can store two crates of 48 glass bottles each measuring 500 ml. By using illuminated coolers that can also charge mobile devices, Coca-Cola India has gained a competitive advantage in remote rural areas. The success of this strategy was demonstrated in a test market near Agar, Uttar Pradesh State, where sales increased almost five-fold with the placement of 20 coolers. To build on this success, Coca-Cola plans to introduce similar environmentally friendly concepts in urban areas such as solar-powered vending machines. These concepts are highly sought after due to growing concerns for sustainability and rising electricity costs in cities. Despite being a global leader in the soft drink industry, Coca-Cola's presence extends beyond the United States. It currently holds a significant worldwide market share of 59%, with 76% of its sales generated outside of the country. This growth is attributed to extensive research on demographics, cultures, and consumer values. Even third world countries in Africa consume their beverages contrary to common belief that Coca-Cola's main sales occur only in America.Coca-Cola effectively communicates

with its target audience by utilizing Integrated Marketing Communications strategies. They recognize the importance of connecting with consumers wherever they are and aim to become a part of their daily lives, creating a ritual associated with specific moments. Through social media and social marketing, Coca-Cola strives to evoke emotions and foster a sense of affiliation with customers. They also engage in social responsibility initiatives, such as raising funds for natural disasters. The MIMIC campaign, launched in 2006 with the slogan "Taste the Coke side of life," resulted in restructuring the communications department to promote dialogue with customers. This approach led to new jobs, departments, and recruitment strategies. The MIMIC mix combines TV advertising, print media, and manner advertisements to deliver a consistent message to the target audience.Coca-Cola in India employs a range of tools within its communication mix, including advertising, direct marketing, interactive/lenient marketing, sales promotion, public relations, and personal selling. The company heavily relies on advertising to reach a wide audience through electronic media and out of home advertising. They collaborate with popular Indian film industry figures as brand ambassadors and create memorable slogans for their campaigns. In addition to electronic media, Coca-Cola also uses print media for advertising purposes and creates Point Of Sale Materials displayed in stores. TV commercials are an important investment that targets both urban and rural areas in India. Notably, actor Aamir Khan featured in the 2011 summer advertisement titled "Barber!!". Direct marketing strategies ensure that Coca-Cola remains the exclusive brand offered when customers order drinks at various establishments such as restaurants and movie theaters. Through aggressive competition and consistent purchases by businesses, Coca-Cola dominates the market. The company

also utilizes mobile graphics and texts for personalized marketing while sponsoring sporting events globally.Coca-Cola utilizes various online platforms, such as their user-friendly website and social networking sites like Facebook, LinkedIn, and Twitter, to engage with customers through games, contests, shopping, and community involvement. They also employ consumer-oriented sales promotions like strategic shelf positioning, under-the-crown schemes, retailer discounts, and free goods or tours. Additionally, Coca-Cola addresses legal issues, rumors, new products, and investor concerns on their website where financial statements and updated stock information can be accessed by investors. The company also participates in social projects and corporate social responsibility initiatives such as "Until," which focuses on increasing mango yield for farmers. Furthermore,Coca-Cola sponsors events in the cricket and music industry. Moreover,the company has a team of salespeople who maintain relationships with customers in their respective regions by promoting Coca-Cola products multiple times a week. This close relationship with customers is aimed at improving the business.Coca-Cola is acknowledged as the top global brand in terms of value and holds the largest market share in the beverage industry. The company implements strong marketing and advertising strategies, maintains an extensive distribution channel for its beverages, benefits from customer loyalty, and possesses bargaining power over suppliers. However, Coca-Cola's weaknesses include a heavy reliance on carbonated drinks, an underexplored product portfolio, a high debt level resulting from acquisitions, negative publicity, and multiple brands with limited revenue. Looking at opportunities and threats, there is potential for growth in bottled water consumption while competitors or external factors may pose threats to the company.