Coke (brand Coca Cola)Report
Coke Pakistan Report
Contents
Acknowledgement
INTRODUCTION OF CASE
(History)
SWOT ANALYSIS
Strengths:
Weaknesses:
Opportunities:
Threats:
Branding Strategy Objectives:
Branding Strategies:
Brand Salience:
Brand Performance:
Brand Imagery:
Brand Judgment:
Brand Feelings:
Brand Resonance:
Point of Difference:
Point of Parity:
Recommendations to Management:
INTRODUCTION OF CASE
Coke started his career from the Atlanta pharmacy where the coke sell a
glass at 5 cents and then they register his trademark in the USA in 1893, and
after 2 year they establish their syrup plant in 3 different cities Chicago Dalls
and Los Angles.
This was the initial stage in the world of beverages, after that the Coke
introduce their brand in global with the help of their creative logos for their
recognition. They tried to create the best image in the minds of consumer and
cemented their image as a “All American beverages” with the help of amazing
, colorful advertising and promotion strategy throughout the world .
After that in 1920 they moves towards the restricted markets. Such as China,
Soviet Union and many other markets. Actually they were trying to realize the
final user that it is not the imported brand it is a local brand it is your own
brand.
In 1988 Coke successfully recognized as a best brand all over the world.
Coke introduces the different marketing programs for the global market. The
Coke often change the flavor, packaging, price and advertisement according
to the tradition and culture of the markets for the position in the front of local
brand to compete the taste. In their advertising the Coke higher the different
celebrities specially atheist which are the stars of the local customer like that
mean Joe in the united state and MERADONA in the in the USA for the
admiration of younger’s.
Through this strategy they got a +ve increase in their sales, they hired the
local manager and given them responsibility of sales and distribution
programs according to the consumer behavior of their areas.
Coke keeps the one thing unchanged throughout the global arena that they
used the same packaging in the global only use the different languages in
different countries due to their law because they want to positioned their
products against the competitors and realize the brand of coke as a local
brand in the minds of consumer. For Example in Australia they use the
Australia fashion or tradition for the promotion of their products. Actually aim
behind this was to change the perception of the younger generation, who
think that the coke is an imported brand so they develop their promotions
according to the culture.
FROM
TO (History)
Coke started from the sell in pharmacy per glass at 5 cents. The coke has a
memorable history behind their success, how they become the best drink from
the pharmacy till to the Global market.
They introducing there strategic sales plan, advertising, segmentation,
targeting quality production to bcome the market leader, but in this case
study the main role behid the success of Coke is advertising and promotions
of the Coke all over the world, and how they introduce there selves through
the advertising by adopting the local environment or by promoting the local
tradition with the help of advertising and promotions they never only introduce
themselves in those markets where the beverages are sold they also inter in
the restricted markets where the tradition of beverages are very low.
History
The brand Coca Cola was registered as a trademark on 1893. The drink soon
become a National phenomenon by 1895, the company had established syrup
plants in Chicago Dallas and Los Angles.
In the 1920, Coke followed aggressive global branding, finding such creative
placements for its logo as a dogsleds in Canada and on the walls of bull
fighting arenas in Spain. Its popularity and attractiveness throughout the world
was fuelled by colorful and credible advertising that concrete its image as the
All-American beverage.
Coke’s early moves into formerly restricted market such as china in 1978 and
the Soviet Union in 1979 and by 1988, Coke was voted most admired brand in
the world.
The best step was that Coke did not institute a uniform marketing program in
each of its global markets. The company often tailored the flavor, packaging,
price and advertising to match tastes in specific markets. The most constantly
standardized element of Coke is its product appearance. The company
simulates gap stresses that the brand be relevant and well-positioned against
the competition. Coke used different advertising agencies in different
countries in order to make the brand feel local.
Over time this yields an advantage with younger generations who don’t even
think of coke as an imported brand. An example that Coke recounts is of a
Japanese family visiting the United States for the first time. The young son,
upon passing a vending machine, joyfully exclaimed to his parents, “Look,
they have coke here tool”.
The market leader in the world “Coke” conducts business with more than 400
brands in over 200 countries. More than 70 percent of Coke revenues come
from outside the United States, a fact that inspired Douglas Daft, when he
took over as chairman and CEO in 2000, to express his desire for Coke
managers to adopt a new mantra. “Think Local. Act local “.
The results of this hyper-local focus were missed sales targets and local
advertising that, in some cases, did not fit with the carefully crafted coke
image. Local marketers actually requested more help from coke headquarters
in Atlanta, so in 2002 coke formed a 100 – person team there that became the
center peace of the global marketing group, setting strategy , hiring agencies,
developing talent, and sharing best practices among the local managers.
Stephen Jones, coke then-chief marketing officer, was careful to point out that
the moves did not signal that headquarters would dictate all the marketing
officer, was careful to point out that the moves did not signal that
headquarters would dictate all the marketing programs and activities, instead
noting that “the local markets are still accountable, but now they have
guidance, process, and strategy”. With this new hybrid strategy in place, Coke
increased its spending on major global ad campaigns in 2004 while
simultaneously “boosting collaborations between regions to balance global
and local efforts.
SWOT ANALYSIS
Strengths:
· Coke is enjoyed brand loyalty and high level of passion for
products.
·
Coke is enjoying competitive position vis-à-vis
competitors.
·
Coke is maintaining good company relationships with
suppliers.
·
Coke relationships with collecting bargaining agent are
based on mutual understanding.
· Coke is financially strong and sound.
·
Coke production process including operations
management, Processes are at power with high standards
and with high tech, prevailing in industry.
Weaknesses:
·
The apparel industry is facing fierce competition in the
competitive arena.
·
Customers have become savvy and they always seek
value in their transactions.
· Coke needs improvement in defining the mission, vision
and in formulating corporate strategies to their internal
customers.
· Marketing management needs improvements.
· HRM Needs Improvement.
Opportunities:
· The economic condition of USA is moderately good.
· Coke is internalizing social shift on moderate level.
·
The Coke is equipped to implement the laws &
legislations concerning the industry.
·
Government policies related to beverages industry
apparently seems consistent and coincide.
·
The industry is enjoying consistent policies related to
apparel industry.
· Coke has Global presence and is globally admired and
they are having 48% make share still 525 is open.
·
International environment debits favored business
situation for Coke, specially in Asia.
Threats:
·
The Consumer of USA become more demanding and
more value seeking, their market experiencing social shift
related to beverage industry.
· Managing Coke brand in the global arena seems difficult
and facing challenges.
· A big challenge for the USA is from the laws & legislations
related to the industry.
Branding Strategy Objectives:
· Meet customer’s expectation.
· Maintain the brand image in the global by maintaining the
4ps.
· To Increase the product width of the Coke, a thing that
people desire for.
· Make the effect advertisement.
· More depth in the segmentation required according to the
market to market.
· To make the customer to feel the Coke as a local brand.
·
Branding Strategies:
Brand Salience:
· Coke must have to to go forward for a more interactive
and non-traditional promotions along with the traditional media
advertising, to create maximum breadth and depth of brand
awareness in consumers’ mind.
· These may include:
o Promotions on Social Networks like Facebook, twitter,
youtube etc
o Sports and event sponsorships like Addidas.
o Celebrity endorsement as Nike did.
o Different advertising like buildings Door to door and Mobile
Marketing.
o Advertising on Electronic Media.
o Advertising in several Retail stores.
Brand Performance:
Coke have a history of producing the world No. 1 products, so it is already in
consumers’ mind that Coke beverages are of worth buying. To further
maintain and boost this image, coke have to do the following:
• Make their packaging a unique.
• Introduce new flavors.
• Use the raw material which matches coke tradition quality beverages.
• Price should be reasonable and affordable.
• The product quality and other attributes should be same all over the world.
Brand Imagery:
• Consumers develop different brand images based on brand knowledge and
also on demographic and psychographic factors.
• Coke have to create more positive and favorable brand image, so that
consumer perceives it as the only producer which can meet and satisfy
their requirements.
• Coke have to focus more on young generation and also to the old age
people, by communicating a taste with comfort, as offerings of new
coke product category.
Brand Judgment:
• Coke has to maintain its brand image and performance so that customers
can judge Coke as of best quality drink, unique and better than others
and consider buying these beverages.
Brand Feelings:
• Coke should design such advertising campaigns which create a feeling of
calmness, amused, energized, comfort, sociable, and pride for
customers by drinking beverages.
Brand Resonance:
• By achieving these entire steps customer develop an intense and active
bond with the brand, results in a brand loyalty. This can be measured
by noticing the following attributes:
◦
Repeat Purchases.
◦
Customers’ loyalty.
◦
An affiliation to the brand community.
◦
Level of customers’ willingness to invest time, energy, money etc in
brand.
Point of Difference:
Coke can create a significant difference to its product by offering fully quality
beverages and other products, offered to its customers on several stores,
making it unique and more favorable, related to industry.
Point of Parity:
• Coke is sound financially they can create a category of its new products, as
fully according to the needs and wants of the consumer of their market,
which also acts as a competitive point of parity, and negates
competitor’s point of difference, resulting in the development of a
strong brand.
Recommendations to Management:
After reading this case study, it is recommended to the management of Coke
that:
• Coke should enter strongly in those markets where they are not market
leaders like Asia, world largest market (Population wise).
• More Segmentation of its brand is required.
• Coke should participate in social activities as well, as they did Coke studio
in Pakistan.
• Use the quality and promotions more for its brands to attract more
customers.
• The coke should create the image in the minds of the consumer that it is
their own brand and local brand.
Coke should focus on each segment, which have a high potential, and can
generate great revenue for the company.