Strategies Undertaken By Coca Cola Marketing Essay

Strategies Undertaken By coca boob Marketing EssayThis spread everywhere involves a brief description of strategic and comparative wages. It alike involves s constantlyal(predicate) kinds of strategies on a impose floor taken by coca plant dummy order that sport led it to be one of universe of discourses merchandise leaders compared to other(a) multi-national companies. The strategic and comparative ascendents of utility discussed base. The item that shall be looked is coca booby market scheme that has been essential for years and based on slurs. The merchandise system shall involve advertisement, market variance, Equity enthronization and Branding. Though these strategies seem to be common in other companies either local or international, Coca-Cola companion implements them in a special way.Consumer market fit There is a third fit descent that occurs, fit between consumer and market. This involves the needs and behaviors of consumers under certain ma rket conditions such as specific price points. This relationship between consumer drives and market forces often has direct effect on sign choice. For example a tempered might be considered as a good choice to fulfill a accompaniment need or behavior at a particular price that the consumer is prepared to pay, duration another distinguish might not be considered as a good choice for specific combination of need, behavior and price point.The play a farsighted sets strategies so that it can outperform rivals and it can only do that by establishing a difference in delivering great harbor to customers or by creating comparable values at a lower cost or do both. Delivering greater value allows a come with to charge a higher(prenominal) average building block prices and efficiency results into lower average unit costs. All differences between companies in cost or price is derived from hundreds sets of activities call for to create, produce, shop and deliver their all overlap s or service such as job on customers, assembling final harvestings and training employees (Porter, 1996)Comparative basis of emolumentDeardorff, A. (2003, p. 6) defined Comparative Advantage as the re itemizeing cheapness of a good or service in a bucolic that enables that coarse to export it. More precisely, a coun reach has a comparative advantage in the good whose price in the absence of trade (autarky), relative to other goods in the same country, is lower than the relative price of that same good on demesne markets.Ricardian Model states that countries form comparative advantage in goods whose labour party cost, relative to other goods in the same country, is lower than the relative labor cost of that good abroad. Therefore countries are utter to have comparative advantage in a good if its labor requirements are relative to the labor requirement abroad.Ricardian model outlines two theoretical implications of Comparative Advantage and these are firstly if countries are permitted to trade freely then they are undistorted markets and competitive, they will export the good or goods in which they have comparative advantage and import those in which they have comparative disadvantage, secondly under the same conditions, all countries will agnise from trade, in the sense that those individuals who gain from trade in spite of appearance each country will gain enough that they could potentially fully compensate those individuals who lose, within the same country, and still re main better off than in autarky(Deardolff,2003). ancestry overviewCoca-Cola is the largest manufacturer, distri entirelyor and vendor of concentrated syrup which is utilize for the harvest-tideion of non-alcoholic drinks. The ac lodge has a span of operations covering over 200 countries since its institution in 1886. It has an yearly net income of 6.8 billion and employs the services of around 92,400 associates end-to-end its operations creative activitywide (Coca-Cola yearbook makeup, 2009). advertizementAdvertising can be defined as as any paid form of non-personal video display and progress of ideas, goods or services through and through mass media such as parvenuspapers, magazines, telly or radio by an identified sponsor (Kotler et al, 2008 p.737). Advertising is a practical way of informing and persuasion as sur lay out as a means of stimulating response from a cigaret auditory sense. The response could be perceptual where the consumer develops, believes or views about the product or it could be behavioural where the consumer purchases the product or increases his purchases of the product in interrogative (Kotler et al, 2008).Advertising is a wait on which gives training to the public about the product. It is persuasive, controlled, and diagnosable as well as influences the target audience. The basic objective of advertisement is to increase gross revenue volume and profit. We shall look at several types of advertising which r uns hand in hand with the advertising objectives. Informative advertising appears at the early stages of a particular product and is meant to develop the primary essential of the customers. Persuasive advertising is applicable at the competitive stage where a selective demand is built for a particular category of product (Kummer and Mittar, 2008).Comparison advertising is apply to establish the superiority of a particular sign through the drug abuse of evaluation with one or more than(prenominal) other brands in the product line. Reminder advertising is used to recollect the memory of the consumer regarding messages, ideas etc of a particular product. Reinforcement advertising is used to secernate the topical buyers that they made the right choice regarding their decision to buy the product. The advertising objective should not be arbitrary but should be developed after a thorough evaluation of the current market situation (Kummer and Mittar, 2008).Coca Cola advertisingA dvertising is a major broker of the promotion mix. Personal selling, sales promotion, publi city and advertising are the quadruplet elements of the promotion mix. Advertising has been thought of as the best method of promotion because it stimulates sales, creates demand and reaches customer quickly and effectively (Kummer and Mittar, 2008). Coca-Cola has over the years unify its leadership position as the worlds some famous and largest deglutition gild with huge investings in advertising targeted at its existing and potential consumers worldwide. Coca-Cola flora in confederation with leading advertising agencies and market enquiry institutes the world over to develop effective advertising campaigns that conforms to current trends in information technology like the use of internet based mediums like face book and twitter to connect with technology loving target audience (Coca-Cola one-year sketch, 2009).The successful advertising strategies used by Coca-Cola over the year s in their operations shall be analysed.( Wieden and Kennedy,1996 ) an advertising agency that worked in partnership with Coca-Cola for the 1996 summer Olympics in capital of Georgia Georgia came up with four main advertising strategies goaled for Coca-Cola for the summer games namely a home based outline, a fan based schema, a global growth scheme and the Olympic torch relay.The home based dodging used by coke was primarily as a result of the fact that Atlanta is the main headquarters of Coca-Cola and so people in Atlanta would readily identify with the brand since they are well familiar with it. Coca-Cola launched several advertisements for the games which embarrass installing 70 new billboards, several street-pole banners and signs in 9 Marta station (the citys public transportation system). Coca-Cola created a theme park known as the Coca-Cola Olympic city with countless different coke advertisements including a one hundred sixty-five feet coke bottle in the canter of t he park (Wieden and Kennedy, 1996).The partys signature semblance red was the main colour seen throughout the Coca-Cola Olympic city. Coca-Cola deviated from the traditional workout of using athletes for advertising for the games to focus instead on a fan-based strategy where commercials, print advertisements and posters where used to demonstrate the difference made to the outcome of the games by the enthusiasm of the fans. Coca-Cola used the games as a global growth strategy used to target the worldwide audience tuned in for the games. Coca-Cola as well as used one of the most efficient strategies for gaining exposure in advertising fib which is the sponsoring of the 1996 Atlanta Olympic torch relay (Wieden and Kennedy, 1996). The impact of Coca- the skinnys advertisements during the Olympics was so gigantic that people dubbed the event the Coca-Cola Olympics. The event served as a means for the company to effectively advertise its brand to a worldwide audience.In 2003, Coca- Cola used the selling platform tagged real to enhance the image of the brand through the use of television advertisements. This particular advertising strategy was specifically targeted for the teenagers and young adults with resounding success. In the same year, the tropical sprite remix television advertisements which was intended to increase and reconnect the sprite trademark was also targeted at the young, urban consumer base (Coca-Cola yearbook report, 2003).In 2006, the make every drop count advertising in the unify States was purposely designed to create sense among consumers on the health benefits of Coca- gages swallow portfolio in a response to increase concerns by consumers regardless of age on health concerns like calorie intake and obesity. The coke side of life campaign which was the first ever integrated marketing campaign for trademark Coca-Cola was intended to signify the integrative role of Coca-Cola in daily life and has performed better than previous Co ca-Cola advertisements and was launched in almost 100 markets in 2006 with great success. The happiness factory television commercial is part of this global campaign (Coca-Cola annual report, 2006).In 2009, Coca-Cola commenced the design for advertisement strategies to be used for the 2010 Fifa world cup campaign which include colourful television advertisements for the soccer fiesta in South Africa in 2010 as a means of uniting Coca-colas exuberance with the worldwide bonk of soccer thereby utilizing the soccer fiesta as a accepted means of connecting with consumers worldwide who have immense passion for the love of football (Coca-Cola annual report, 2009).Coca-Cola develops its advertising campaigns based on a communications strategy that uses means to end research to gain greater insight of current and potential customers and other factors like product attributes, keeping specific marketing goals in mind, taking into account competitive advertising and positioning as well gaini ng attention and interest by connecting with real needs(Reynolds and Olsen,2008)Market segmentationMarket segmentation has been described as essential to marketing(Sheth 1967).Market segmentation implies the function of large heterogeneous markets into smaller segments that can be reached more efficiently and effectively with products and services that match their unique needs(Kotler et al, 2008 .p.410) There is no bingle way to segment a market. A marketer apparently has to try different segmentation variables alone or in combination in order to come up with how best to view the market. Markets could be segmented into either bank line markets or consumer markets.Consumer markets entail those markets that deal on products and services that are used directly by the consumers whereas business markets have to do with transfer of products and services from one point to the other. Market segmentation could be based on the following major variables demographic, psychographic, behavio ural, geographic etc. demographic segmentation entails segmenting the market based on age, gender, income and education. Psychographic segmentation is based on personality, life-style and motives of the people involved. Geographic entails segmenting the market on the basis of regions, city or country. Behavioural involves segmenting the market on benefits sought, product system, price feeling or situations (Kotler et al, 2008).Coca cola market segmentationCoca Cola Company has been conquering markets worldwide over age, through its net income of Bottlers, distributers and whole sellers, and ulterior joint ventures. The market network has grown to include most of the world territories and this market has been divided into market segments.Coca-Cola the worlds most famous and leading drinking company has been shown in their operations to vary the sweetness level of their product, its coat as well as effervescence on local conditions and preferences which implies that the company employs the use of behavioural and geographical variables in their market segmentation strategies the world over (Hart et al,2008). Coca-Cola Company has operating segments on continental basis involving Eurasia and Africa, Europe, Latin America, northeastward America and the pacific areas. This strategy is clearly a geographical approach in terms of market segmentation by Coca-Cola which is influenced by the fact that these different geographical areas will have diverse preferences and wants (Coca-Cola annual report 2009).Coca-Cola market segmentation strategies regarding diverse consumers base starts with a process of understanding consumer trends within the multicultural marketplace and then maturation prescience and breath communications which is based on that knowledge. The Coca-Cola Company has a variety show business development police squad which serves the purpose of providing diverse consumers with the right beverage portfolio. In 2009, the diversity business develo pment team worked closely with the multicultural marketing team to develop marketing strategies as well as integrating multicultural elements into general market programmes for greater reach (Coca-Cola annual report 2009).The diversity business development team during this period also identified significant opportunities in emerging markets including Asian and disabled consumers. The Asian consumers were subsequently integrated into the existing framework of communications. Coca- colas multicultural consumer marketing team develops and carries out relevant marketing plans targeted at multicultural consumers while works closely with brand and customer teams as well as the bottling system. Coca-Cola North America had their multicultural consumer marketing team refocused on African-American marketing as well as expanded its reach to Hispanic consumers (Coca-Cola annual report 2009).The company is now in the process of implementing a long term strategy targeted at consumer markets on th e basis of ethnicity in the United States. Coca-Cola in North Americas operating segment reported in 2009 substantiating results in its works with its bottling partners to create price and package strategies that will in the long run strengthen their financial results, provide value for customers and provide consumers with choices that meet their needs. This strategy is apparently based on behavioural variables which puts price and preferences of the consumers into consideration Coca-Cola Company introduced the coke zero brand in response to consumer health concerns regarding glut calorie intake (Coca-Cola annual report 2009).The product did well in the market and in 2009, the company made sales on the product on an excess of 600 million cases globally. Currently there are over 800 low and no- calorie beverages in the Coca-Cola portfolio (Coca-Cola annual report 2009). In 2008, the company and foundation spent around 9million dollars to support active, healthy lifestyle programme s. These strategies by Coca-Cola are geared towards effective market segmentation of the target population on behavioural and psychographic basis putting into account the health choices and lifestyle of the consumers. In order for Coca-Cola to meet the diverse and ever changing beverage needs of its consumers worldwide, the company has intensified efforts to add more value for customers in its portfolio of beverages ranging from added benefits of vitamins and minerals to calorie reductions, new ingredients, sweeteners and taste depending on the preferences and wants of the consumers concerned (Coca-Cola annual report 2009).Coca-Cola also has another segmentation strategy which entails different strategies for developing and developed markets. The companys main strategy for the developed markets like the United States is to maximize value and profit which can be achieved by delivering more value to consumers so that they will continue their patronage of the companys products at a pre mium price. In this regard, Coca-Cola are growing the core beverages-trademark namely coke, sprite, fanta, powerade and improving their benefits and value to the customers through adding vitamins and nutrients to reduced or no calorie options(Coca-Cola annual report 2009). In developing markets Coca-Cola devised a strategy of making the products affordable to the consumers in brazil-nut tree the company offers consumers 26 package options for brand Coca-Cola at different brand points to meet the needs of an economically diverse consumer base (Coca-Cola annual report 2009).In 1963, the product tab was launched and was specifically targeted at the female consumers but subsequently the company in order to broaden its customer base by appealing to the men folk as well as the entire family had to introduce regimen coke to achieve the above mentioned objectives. In 1983, Coca-Cola introduced the caffeine- free versions of Coca-Cola, diet coke and tab which were specifically targeted at health conscious consumers. Coca-Cola also introduced the minute maid soda which was positioned to attract a market segment that prefers fruit juice as well as health and nutrition conscious consumers (Mochmen and Maze,1998).The Coca-Cola Company today through its market segmentation strategies offers a diverse portfolio of products to identified market segments based on different consumer preferences for flavours, calories and caffeine content effectively which continues to add to their success study globally (Lamb et al, 2008).Equity investmentCoca Cola Company has over time been making equity investment in selected bottling companies with the intention of exploit companys strength and efficiency in its systems, production, distribution, and marketing capabilities around the world.The level of investment generally depends on the bottlers capital structure and its available resources at the time of investment. Coca cola Company in some instances honours it necessary to take aim a controlling interest. Such controlling interest allows coca cola Company to compensate for express local resources and enables it to focus on bottlers sales and marketing programs. Equity investment also assists in the development of bottlers business and information systems and the establishment of appropriate capital structures. atomic number 53 of examples of coca cola equity investment is that of Coca Cola first step Inc. (C.C.E)In 2009, Coca Cola Companys ownership in Coca Cola Enterprise Inc.-bottling company, was 34%. Coca cola Enterprise Inc. is the worlds bottler company of trade mark beverages. The sales of concentrates, syrups, mineral weewees, juices, sweeteners and finished products by coca cola Company to C.C.E were almost 6.6 billion by the year end 2009. The Coca Cola Enterprise Inc. estimates its market beverage products to retailers which include a portion of 46 states of USA, capital of South Carolina district of USA, Virgin Islands, Caribbean islands, Can ada, Great Britain, Continental France, Netherlands, Luxembourg, Belgium and Monaco. Therefore Coca Companys investment strategy in CCE was to take advantage of this vast market for it to sell concentrates, syrups and different coca cola product brands through C.C.E (Coca cola annual report,2009).BrandingCoca cola has many kinds brands sold worldwide. In developing a company brand, coca cola conducts product and promotion research to establish brand positioning, develop precise consumer communication and solicit consumer feedback. The Coca-Cola brand development strategy emphasizes on price, preference, and persuasive penetration (Annual report, 2009)The Coca Cola Company main brand products are Coca cola classic, diet coke and coca cola zero whereas the main branding strategies at Coca Cola Company include but not limited to Joint brand strategy, brand diversification strategy, personal branding strategy, and packaging/redesigning strategy (Annual report, 2009)Joint brand strategy involves a situation in which two different brands are linked to form joint promotion, as a consequence one product may sell the other examples in early 1990s Bacardirum and Coke cola brand were jointly marketed together. Coca cola, the common known brand was used to market Barcadirum, the new product on the market. The benefits of this strategy is that if the first brand name gives a certain quality symptom, then the second brand quality signal is believed to be as powerful as the first one, hence attracting more buyers. (Akshadf and Ruekert, 1994)Brand portfolio/diversification strategy Coca Cola Company continues to metamorphose its portfolio and growing sales with new and acquired brands. The some of the diversified brands are vitamin-enhanced water energy brand, and its star water brand Glaceau. The powerade and Nestiea iced tea brand products, a joint venture of Coca Cola Company with Nestle.The importance of this strategy is that multiple brands allow the company to offse t cokes gradual decline with newer, more appropriate brands while removing future potential rivals through acquisition. The strategy also allows coca cola to maintain relatively large market character irrespective of how market changes (VanAnken and Derick Daye, 2007)Personal branding strategy refers to a set of human characteristics as associated with a brand. Users view it as a cardinal way to differentiate a brand in a product category as a central driver of consumer preference and usage that can be used to market a brand crossways cultures. In coca cola company personal traits associated with coca cola are Cooling, all-American, and real. These three personal traits differentiate coca cola from its competitors. anyhow these traits, Coca Cola Company uses slogans, graphic designs, color schemes and trademarks. As a result of personal branding, different categories of people from different denomination find themselves attracted to the brand hence increasing its demand (Aaker, 1997).Packaging/redesigning strategy Coca Cola Company keeps on redesigning its packaging and visual identity systems. One of examples is its newly identity visual system for its flagship brand introduced in 2008 and mannequin aluminum bottle initially commercialized in 2005. The nonalcoholic beverage in this new aluminum bottle attracted many buyers especially in 2005 Olympic Games in Beijing-China. (Butler, 2009) Packaging redesigning also continues making coca cola brand a new product in the face of consumers.The most crucial comparative advantage is that the company has over time built a network bottling partners, wholesalers and distributers spread over in many separate of world. These act as marketing agents of coca cola company products worldwide. Bottling partners request two major roles, Firstly they act as consumers of the concentrates and syrup which they use in manufacture of coca cola products and later sell these products topically or in irrelevant market, secondary they act as marketer of company brands. (Annual report,2009)The Coca Cola Company has a unique network of bottling partners, distributers, wholesalers and joint ventures spread all over the world which act as channels through which the company promotes and markets its brands. Coca Cola as a result of operating in partnership or in cooperation with foreign companies, it enjoys economies of scale such as cheap labor, land and transport costs. entrance costs are reduced due to the fact its brands are brought closer to customers through a network of bottling partners, wholesalers and distributers. The coca cola companys leading brands with high level of acceptance, a worldwide network of bottlers and distributers of companys products, sophisticated marketing capabilities and intellectual group of dedicated associates are unique companys achievements overtime compared to other multi-national organizations. (3970 Words)