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Branding Strategies of Coca-Cola

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Branding Strategies of Coca-Cola Top 10 Global B r a n d s 2003 by V alue (Source: Interbrand Corp, BusinessW eek 2003) Value 2003 Value 2002 Country BU SD BU SD 1 Coca Cola 70.45 69.64 U .S. Presented By: 2 M icrosoft 65.17 64.09 U .S. A gni Sarkar 34 3 IBM 51.77 51.19 U .S. A bhay Singh Pathania 28 4 GE 42.34 41.31 U .S. 5 Intel 31.11 30.86 U .S. A rvind Verm a 27 6 N okia 29.44 29.97 Finland Devendra Singh 43 7 D isney 28.04 29.26 U .S. Parikshit Kanase 16 8 M c'D onalds 24.70 26.38 U .S. Roshan Ram achandran 32 9 M arlboro 22.18 24.15 U .S. 10 M ercedes B enz 21.37 21.01 Germ any Coca-Cola in India - Introduction Coca-Cola in India During the past decade, t h e Coca-Cola Com pany has invested m ore than U S$ 1 billion in India Coca-Cola is one of the country's top international After a 16-years absence, C oca-Cola returned to India in 1993. T h e investors . Com pany's presence in India w as cem ented in N ovem ber that year in a deal that gave Coca-Cola ow nership of the nation's top soft-drink brands and In 2003, C oca-Cola India pledged to invest a further U S$100 m illion in its bottling netw ork. operations C oca-Cola business system directly em ploys approxim ately 6,000 local p e ople . Coca-Cola India has m ade significant investm ents to build and continually In India, we indirectly create em ploym ent for m ore than 125,000 people in im prove its business in India, including new production facilit ie s , w a stew ater related industries through our vast procurem ent, s u pply and distribution treatm ent plants, d istribution system s and m arketing equipm ent system . Virtually all t h e goods and services required to produce and m arket C oca-Cola locally are m ade in India . The Coca-Cola system in India com prises 27 wholly -owned com pany-owned bottling operations and another 17 franchisee-owned bottling operations. P olicy Polic y The Coca-Cola Com pany exists to benefit and refresh everyone it touches. For us, Q ua lit y is m ore than just som ething w e taste or see or m easure. It show s in our every action. W e relentlessly strive to exceed the world's ever-changing expectations because keeping our Q ualit y prom ise in the m arketplace is our highest business ob jective and our enduring T he S ymbol of Quality oblig a t ion. M ore than a billion tim es every day, consum ers choose our brand of refreshm ent because Coca-Cola is... Cus t omer and Consumer S at is fact ion The S ym bol o f Q ualit y Custom er and Consum er S atisfaction A R esponsible Cit izen of the W orld A Responsible Citizen of the W orld 1 Indian Soft Drink Market : Composition of Cola & Non Cola Drinks Coc a-Cola 22% Thum ps Up 33% O ther Pepsi O ther Cola Brands 9% Lim c a M irinda 6% F anta 10% 15% P epsi 3% 2% Source: C e n t e r for Industrial & Econom ic R esearch Industrial T e c hno- econom ic S ervices Pvt. L t d , D e c 2003. Source : F orbes ,D ecem ber 2 0 , 2003 N on -A lcoholic S oft D rinks M ISSION STATEM EN T Fruit D rinks Soft D rinks M ission statem ent: “W e exist to create value for our share ow ners on a long- Carbonated N on Carbonated term basis by build ing a business that enhances T he Coca-Cola Com pany’s Tropicana Real tradem arks. T h is is also our ultim ate commitment. A s the w orld’s largest beverage com pany, w e refresh that w orld. W e do this by developing superior soft drinks, b o t h carbonated and non-carbonated, and profitable non- N on Cola alcoholic beverage system s that create value for our Com pany, o u r bottling Cola Products Products partners and our custom ers.” Fanta & M irinda - O range based Pepsi drinks Coca-Cola Lim ca and M irinda Lem on - Cloudy Thum s U P Lim e based drinks Diet Coke 7U p, S prite, C anad a D ry and Diet Pepsi M ountain D ew – Clear Lim e drinks Frooti and M aaza - M ango based drinks 2003 worldwide net operating revenues Latin America FIN A N CIA L D A T A Total : $ 2 1 .0 Billio n 2003 2002 2001 Corporate 10% 1% N et operating revenues $ 21044 $ 19564 $ 17545 31% North America Gross profit $ 13282 $ 12459 $ 11501 30% Africa N et profit $ 4347 $ 3050 $ 3969 24% 4% Asia M arket price on D ecem ber 31* $ 50.75 $ 43.84 $ 47.15 Europe, Eurasia & Revenue generated in india: Middle East 9% (asia mkt) i,.e. $ 500 mn. Total c a p it a l $ 19,513 $ 17,156 $16,484 *All f igures are in m illion except m arket price. 2 AAnnssooffff MMooddeell FF oorr BBrraanndd :: CCooccaa CCoollaa Current Product New Product M arket Penetration S trategy: Product D evelopm ent •Encouraging current custom ers to Strategy: buy m ore by show ing benefits •Identified Potential U s e r W heel O f U sage/Experience Current •Attracting Com petitors C ustom er Group M arket Coke 200m l •Additional D istribution A nd D riving W heel Channels (diet coke ,vanilla coke ) M arket developm ent S trategy: Diversification S trategy: •Selling in N ew Location in S am e •Concentric D iversification N ew country or A broad Strategy( m in e ral w a t e r , M arket (rural m arket ) Georgia T ea & Coffee) Presentation D em onstration A dvertising D isplays Brand equity H oarding Prom otion Loyalty Core product : Augmented Trial Selling Product Carbonated drink which is a thirst quencher. Ambassad Formal Product ors Core Product Differentiati on Satisfied customer Word of Mouth Added values Basic level Package :Red and W hite bottle (does 5% of the ad ) The augm ented level Firm grip contour bottle First to Introduce 6 ½ ounce bottles Service :A customer can lodge com plaint if he is not satisfied with the Q ualit y : Best assured qualit y of conform ance . product Brand nam e :Legendary brand Add ons: E x t r a offers available like the diet coke ,custom er Styling :Trendy colour com bination appealing to the eye . Can log on to cokem usic.com , C o ca-Cola M yEnjoyzone.com & listen to m usic Pay back/operational e a s e :Easy to open and drink /availa b le at next door and play gam es . kirana stores Consultancy :Provide inform ation about the product through illu s t r a t ions Features :Coke in attractive cans and bottles H ighly appealing 3 Potential le v e l Driving w heel N am e and fam e :Legendry brand Advertisem ent Com pany im age :Good reputed im age (TV, M agazines, M o v ie s ) Flexibilit y :Available in packs from : Convenience Prom otional C a m p a igns Consum er A ctivation 200m l f o r Rs 5 •Coke (V) Pop stars 300m l f o r Rs 6 •Prom oting the Concert F loats doing city rounds, P r e ss ads supplem ented by the Internet ,A cts in colle g e . 500m l f o r Rs 15 ( + 100 m l F r ee) . Prom otion of M ovies 1.5 Litre Rs 30 •SM S special a pplic a t ion (on our S M S club “U BU ZZ ”) w a s also deployed 2 Litre Rs 40 (+ 20 0m l F r e e ) •H oardings (H oardings & Banners at M ajor Locations in Cities . Available in cans, p lastic and glass bottles M ovies P r e - Concer t P r omos Pre - Concert Promos Concert Promos The Execution In-film placement: S trategic branding by w eaving Coke into the script R ights to prom ote the film . through prom os com bining the film and the brand, across m edia Supported by Free tickets, star visits/star m eets, m usic CD s etc. Bringing A ishwarya to the m asses for the first tim e! C o n t e s t run nationally , with dinner w ith her as dream prize! O btained m edia worth 3 m illio n IN R for 900,000 IN R. Tied up w ith Intergold – India’s top jew elry retailer for prizes H igh Awareness/ Fam iliarity of H igthh Ae wBarranende iss/n t hFea mpriolisaperitcty iofve /t he Brand cuin rrtheen tp rmoasrpekectt.ive/ current m arket. “Than“ TdhaanM daatlMabatClocaab C-ocaCola-”Cola Custom ers are well a w a r e about the benefits / attributes of the brand H ighly creative brand im age. Ad Exposure Brand Purchase attitude behavior Custom ers associate them selves Custom ers associate them selves witwh ithe t bhrean brdan amd baamssbaadssoarsdo. rs.
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