MARKETING ANALYSIS THECoca-Cola COMPANY Submitted By: Noman Iqbal – MB 922133 Haroon Khan – MB 922139 Talha Raza - MB 922143 Semester: MBA 1st (Weekend) Subject: Principles of Marketing Submitted To: Ma'am Mehwish CONTENTS Introduction History Company Overview Consumer Market Analysis Marketing Strategy SWOT Analysis PEST Analysis Conclusion INTRODUCTION The Coca-Cola Company is the world's largest beverage company. 94% of people across the globe are aware of the red and white logo of Coca-Cola. The company operates a franchised distribution system dating from 1889. The Coca-Cola Company is headquartered in Atlanta, Georgia. With local operations in over 200 countries around the world, Coca-Cola has 79,000 employees worldwide. HISTORY Invented in May of 1886 by Dr. John Stith Pemberton. First glass Sold for 5 cents at Jacob’s pharmacy in Atlanta on May 29, 1886. During the first year, sales averaged a modest nine drinks per day. HISTORY Thinking that "the two Cs would look well in advertising," Dr. Jhon's partner Frank Robinson, penned the now famous trademark "Coca-Cola“. The first newspaper ad for Coca-Cola soon appeared in The Atlanta Journal. First newspaper advertisement pronounced it “Delicious and Refreshing”. LOGO HISTORY COMPANY AT A GLANCE COMPANY AT A GLANCE Market Share 43% 37% - 20% - United States Mexico, India, Brazil, Japan and China Rest of the world Serves Over 1.7 billion drinks each days Owns its anchor bottler in North America Coca Cola refreshments More than 500 brands in over 200 countries CONSUMER VALUE COCA COLA CREATED WHAT COCA COLA DO TO MAKE CONSUMERS HAPPY AND LOYAL Consumer-Centricity • First beverage company to offer front-of-package labeling that states the number of calories in each can • Aligning their product offerings with the consumer’s growing search for he althy and green product solutions Familiarity • Familiarity creates a sense of affinity between the customer and brand • More exposure to Coca Cola by lots of advertisements and campaigns • Memory refreshment and positive association COCA COLA CONSUMER MARKET ANALYSIS STP MARKET SEGMENTATION TARGETING POSITIONING Refrechin Everyone We Touch STP MARKET SEGMENTATION MARKET SEGMENTATION The division of the total market into smaller, relatively homogeneous groups is called Market Segmentation. This process distributes the target market into smaller groups, such as age, income, personality traits, behavior, interests, needs or location. These segments can be used to optimize products, marketing, advertising and sales efforts. Coca-Cola's market segmentation focuses on four various elements, namely geographic, demographic, psychographic, and behavioral. 15 MARKET SEGMENTATION Geographic: • The company's geographic segmentation aims to drive the market into different geographical units, including cities, regions, and neighborhoods. While Coca-Cola might be focusing on urban and suburban areas, it also ensures a countrywide product distribution network. This is in the realization that as the company expands, there is a demand from those in rural areas. Income and Family Size: • The demographic segmentation of Coca-Cola is divided into sub-segments based on various variables like age, occupation, family life cycle, race, religion, generation, social class, and nationality. These variables are the most popular basis of Coca-Cola to distinguish customers groups. 16 MARKET SEGMENTATION Psychographic: • The psychographic element of the Coca-Cola market segmentation is categorized into different groups based on lifestyle, personality, or values. Income and Family Size: • The behavioral variable is the final element in Coca-Cola's marketing segmentation. It generally focuses on the customers' knowledge of, use of, response, and attitude towards its products. Most marketers treat the behavioral variables as excellent starting points for formulating market segments. 17 TARGETING TARGETING Coca-Cola’s targeting strategy is broader, not only because of its global presence in the market but also with the several products that they provide. There is also the need to satisfy various customers, ranging from average to health-conscious ones. The primary target of Coca-Cola is younger customers within the age bracket of 10-25 and a secondary market composed of people aged 25-40. TARGETING The company targets the market that desires an intense flavor with their regular cola drinks in terms of taste. Meanwhile, diet cola drinks and their variants target those customers that are health conscious. A Coca-Cola product such as Sprite is specifically designed to target teens and college students, while others target the young working group. POSITIONING POSITIONING Creating an identity in the minds of a target market Happiness Refreshing and Thirst Quenching Consistent and High Quality MARKETING STRATEGY OF COCA COLA MARKETING STRATEGY Product Strategy • Coca-Cola has a wide range of products, which are offered globally, and its product strategy can be studied by marketing mix. • Products like Coca-Cola, Diet Coke, Sprite and Fanta, etc. are sold in various packing and sizes. • They have a significant share in the market and generate enormous profits for the company MARKETING STRATEGY Pricing Strategy • Coca-Cola's price remained fixed for approximately 73 years at five cents. • The company had to make its pricing strategy flexible with the increased competition with competitors like Pepsi. • It doesn't drop its price significantly, nor does it increase the price unreasonably, as this would lead to consumers doubting the product quality and switching to the alternatives. MARKETING STRATEGY Place Strategy • Coca Cola has a vast distribution network. • It has six operating regions: North America, Latin America, Africa, Europe, the Pacific, and Eurasia. • The company's bottling partners manufacture, package, and ship to the agents. The agents then transport the products by road to the stockist, then to distributors, to retailers, and finally to the customer. • Coca-Cola also has an extensive reverse supply chain network to collect leftover glass bottles for reuse. Thus, saving costs and resources. MARKETING STRATEGY Promotion Strategy • Coca-Cola employs different promotional and marketing strategies to survive the intense competition in the market. • It spends up to $4 million annually to promote its brands, utilizing both traditional and international mediums for advertisements. MARKETING STRATEGY Classic Bottle • In 1913, Coca Cola arranged a global contest for designing the bottle. • The company's primary purpose was to indicate to its customers that CocaCola is the most exceptional product and not to be confused by any other beverage. • The winner of the contest uses the cocoa pod's design in such a beautiful way that the company starts promoting shape and logo. MARKETING STRATEGY Company Font & 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. MARKETING STRATEGY Sponsorships • Coca-Cola is a well-recognized brand for its sponsorships. Its long sponsorships history include American idol, the Olympic Games, NASCAR, and many more. • Since the 1928 Olympic Games, Coca-Cola has partnered on each event, helping athletes, officials and fans worldwide. SWOT ANALYSIS 31 SWOT ANALYSIS 32 PEST ANALYSIS 33 PEST ANALYSIS 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 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. PEST ANALYSIS Economic Factor 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 must pay more salaries compared to Asian countries. PEST ANALYSIS Social Factor 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. PEST ANALYSIS Technological Factor With the advancement in technology and the utilization of technology tremendously increase the sales of Coca-Cola. With the advancement of communication channels, television, and the internet significantly influence communication technologies and marketing strategies. However, with the advancement in technology, we must be aware and analyze how to improve new strategies may be those strategies that we follow are wrong and we must improve our policy and Coca-Cola honestly believe on this principle. CONCLUSION The Coca Cola marketing strategy depends on making human connections, remaining innovative while staying true to simple principles and creating branded experiences. 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 that keep themselves aware of every innovation. THANKYOU