Uploaded by Alexa Pablo

Coca Cola Strategies

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Corporate Level Strategies
The Coca-Cola Company uses the following corporate level strategies:

Growth Strategy:
They follow the growth strategy. The Coca-Cola Company invests a huge amount on its sexpansion
projects not in Pakistan but also in all the six operating regions of the world.it is currently present in
more than 200 countries whichis a big depiction of its focus on growth strategies. As it's the large scale
organization, so Coca-Cola has to use different types of growth strategies in different situations, Like if it
aims to targer new customers and introduce new products than it has to use horizontal growth strategy.
If it invests in its own supply chain as a part of cost leadership strategy, it is basically focusing on vertical
growth. The coca cola company has developed its own supply and distribution system in various
potential markets of the world which largely helps it in controlling the heavy manufacturing and i
distribution costs.

Diversification strategy:
The company has used diversification strategy various times. It was founded as soft drink manufacturer
but with the passage of time, it entered into various related industries like mineral water, soda, tea,
coffee, fruit juices. These diversification strategies have increased its business portfolio and enabled it to
compete with the top brand in all these industries.

Stability Strategy:
The company uses this strategy when it feels that growth strategy are not a feasible choice in the
presence of unfavorable economic circumstances or some internal issues. Therefore, it either proceeds
with an extra care or completely stops at the current position and focuses on its quality control,
marketing efforts, supply chain and R&D.

Retrenchment strategy:
The coca cola uses retrenchment strategy those business units where it observes no or little growth
during a definite period of time. Tretrenches these business units in a number of ways, including budgetcut for production, marketing. R&D in that area. complete shutdown of operations, selling out the whole
unit to private investors.
Business level strategies
The Coca-Cola Company uses the following business level strategies

Differentiation strategy:
The coca cola company has always focused on differentiating its products from those of its competitors
in order to establish a unique position in the global beverages industry. Its top most brands like coca
cola, sprite and Fantare manufactured under strict quality standards and by unique formulations. Due to
its differentiation strategy the Coca-Cola Company is able to maintain the top market leadership
position Differentiation is found in each of its business operation. It uses unique marketing campaigns,
labeling, bottle shapes. and up to dated plant and machinery to manufacture the top quality beverage
products,

Low cost leadership:
In addition to delivering the top quality products, the company also keeps an eye on its increasing
operational and marketing expenditures. It recognizes the importance of cost control for gaining
competitive advantage in the industry and operating in a more profitable way. The coca cola company
has been pursuing this strategy since its incorporation. It strongly emphasis on internal efficiency so that
its products can be manufactured at the minimum possible cost.it has maintained a tight control over its
manufacturing, overhead. marketing, and R&D costs.

Focus Strategy:
The company also uses focus strategy in both cost and differentiation dimensions. For its focused low
cost strategy, it has defined a specific line of beverage products through which it can target a specific
market and achieve low cost by manufacturing these products under highly efficient manufacturing
processes. The Coca-Cola is manufactured and promoted under focused low cost strategy. Coca cola is
sold in more than 200 countries of the world, but has slight variations in its taste, flavor, and ingredients.
The company produces its coke for every target at a large scale in order to achieve low cost leadership in
that market.it keeps that target market under complete focus while designing its marketing campaigns
and selecting distribution networks so that it can serve the potential consumers from that market in the
most effective and efficient way.
Functional level strategies
The Coca-Cola Company uses the following functional level strategies:
Marketing Strategies
1. Pricing strategy:
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, Pepsi is the direct competitor to coke Beverage market is said to be a
oligopoly market (few sellers and large buyers), heace they form into cartel contract to ensure a mutual
balance in pricing between the sellers.
2. Distribution strategy
The company operates a franchised distribution system dating from 1889 where The Coca-Cola
Company only produces syrup concentrate which is then sold to various bottlers throughout the world
who hold an exclusive territory Hub and Spoke model for rural distribution channel, in which they
divided the different categories of distributors according to the area they are covering
Coca Cola Company makes two types of selling


Direct selling: In direct selling they supply their products shops by using their own
transports. They have almost 450 vehicles to supply their bottles. In this type of selling
company have more profit margin.
Indirect selling: They have their whole sellers and agencies to cover all area. Because it is
very difficult for them to cover all area of Pakistan by their own so they have so many
whole sellers and agencies to assure their customers for availability of coca cola products,
3. Promotion strategy
 Push Strategy:
Coca cola is using Push strategy in which they use its sales force and trade promotion
money to induce intermediaries to carry, promote and sell the product to end users
ie, consumers. For example-as coca cola is giving free pet bottles and other trade
schemes to distributors, agency owners and retailers.
 Pull Strategy: Coca-Cola is also using Pull strategy in which they using advertising and
promotion to persuade consumers to ask intermediaries for the company brand
product by this way coca cola inducing customer to order it from shopkeeper.
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