A Conceptual Frame Work of Marketing Strategies In
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G.J.C.M.P.,Vol.3(1):153-157 (January–February,2014) ISSN: 2319 – 7285 A CONCEPTUAL FRAME WORK OF MARKETING STRATEGIES IN COCA-COLA *Mrs.T.Kalakumari & **Dr.M.Sekar *Assistant Professor, Department of Commerce, Sri Krishna Arts and Science College Coimbatore, India **Assistant Professor, Department of Commerce, CBM College Coimbatore, India. Abstract This study empirically examined the marketing strategies in coca-cola. Specifically, this study seeks to investigate the relationship between the marketing approach and international image of the company. The brand development strategy of Coca Cola comprised redesigning of its brand development policies and techniques to keep up with the changing mindset of its consumers. A part of the brand building technique is also to enhance "purchase frequency". The company has also invested in various advertisement campaigns often engaging the services of celebrities around the globe. In addition to the consumers, there is another category of consumers, who increase the consumer base and they constitute the collectors of the brand. At Coca-Cola, they have a long standing belief that everyone who touches their business should benefit, thereby inducing them to uphold these values, enabling the Company to achieve success, recognition and loyalty worldwide. Keywords: -Brand Building, Brand Image, Brand Loyalty, Customer Loyalty, Customer Satisfaction, Marketing Strategy. 1. Introduction Coca-Cola is a carbonated soft drink sold in the stores, restaurants, and vending machines of more than 200 countries. It is produced by The Coca-Cola Company of Atlanta, Georgia, and is often referred to simply as Coke (a registered trademark of The Coca-Cola Company in the United States since March 27, 1944). Originally intended as a patent medicine when it was invented in the late 19th century by John Pemberton, Coca-Cola was bought out by businessman Asa Griggs Candler, whose marketing tactics led Coke to its dominance of the world soft-drink market throughout the 20th century. The company produces concentrate, which is then sold to licensed Coca-Cola bottlers throughout the world. The bottlers, who hold territorially exclusive contracts with the company, produce finished product in cans and bottles from the concentrate in combination with filtered water and sweeteners. The bottlers then sell, distribute and merchandise Coca-Cola to retail stores and vending machines. Such bottlers include Coca-Cola Enterprises, which is the largest single Coca-Cola bottler in North America and Western Europe. The Coca-Cola Company also sells concentrate for soda fountains to major restaurants and food service distributors. The Coca-Cola Company has, on occasion, introduced other cola drinks under the Coke brand name. The most common of these is Diet Coke, with others including Caffeine-Free Coca-Cola, Diet Coke Caffeine-Free, Coca-Cola Cherry, Coca-Cola Zero, Coca-Cola Vanilla, and special editions with lemon, lime or coffee. In response to consumer insistence on a more natural product, the company is in the process of phasing out E211, or sodium benzoate, the controversial additive used in Diet Coke and linked to DNA damage in yeast cells and hyperactivity in children. The founder of coca cola was John Dock Pemberton in 1886 when he experimenting with cocaine and wine. The founder of the name coca cola was Frank Robinson. The Coca-Cola Company is the world's largest beverage company, refreshing consumers with nearly 500 sparkling and still brands. Globally, they are the primary provider of sparkling beverages, juices and juice drinks and ready-to-drink teas and coffees. Through the world's largest beverage distribution system, consumers in more than 200 countries enjoy the Company's beverages at a rate of nearly 1.6 billion servings a day. With an enduring commitment to building sustainable communities, the Company is focused on initiatives that protect the environment, conserve resources and enhance the economic development of the communities where they operate. 2. Marketing Strategies In order to achieve this mission, Coca Cola create value for all the constraints it serve, including consumers, customers, bottlers, and communities. The Coca Cola Company creates value by executing comprehensive business strategy guided by six key beliefs: Consumer demand drives everything Coca Cola do. Brand Coca Cola is the core business. Serve consumers a broad selection of the non-alcoholic ready-to-drink beverages they want to drink throughout the day. Be the best marketers in the world. Think and act locally. Lead as a model corporate citizen. 153 G.J.C.M.P.,Vol.3(1):153-157 (January–February,2014) ISSN: 2319 – 7285 1. Strategic planning: In past years, the company had a great success, as the strategy worked which resulted in making Coca Cola Company the world's leading company. Company accomplished the crust of its strategy as, • Worldwide volume increased by 4 percent with strong international growth of 5 percent. • Earnings per share grew by 82 percent. • Return on common equity grew from 23 percent to 38 percent this year. • Return on capital increased from 16 percent in 2000 to 27 percent. • The company has generated free cash flow of $3.1 billion, up from $2.8 billion. The marketing strategy for the future is as follows: • Accelerate carbonated soft-drink growth, led by Coca-Cola. • Selectively broaden the family of beverage brands to drive profitable growth. • Grow system profitability and capability together with our bottling partners. • Serve customers with creativity and consistency to generate growth across all channels. • Direct investments to highest potential areas across markets. • Drive efficiency and cost-effectiveness everywhere. 2. Strategies of quality After Micro and macro analysis Brand "coke" is primarily role 1. Enhance competition moments 2. When people watch cricket 3. Through commercialization 4. Fun time 3. Expanding target market In last 2 years Coke has come back in aggressive manner. • Consumer has choice • Attractive brand name • Brand differentiating Consumer Has Got Choice: Now the consumer has got choice. Because now they know the name of another big brand, though coke is the 2nd best name but it can get a better position after some time Attractive Brand Name: Now the consumers know the Name of Coke, because Coke is the name, which is the most popular after the word "ok". So people can better differentiate brands with each other. Brand Differentiation: Now different companies have got different brand names. So, people can distinguish between brands. Two major brands "coke" and "Pepsi" also have brand names. 4. Strategies of getting goals: To increase the price is the least thing, which Coke can adopt. There are so many ways through which Coke can increase the profits. Some major ways are as follows. • Volume can be increased • Interest level of consumers • To take part in energetic festivals 5. Marketing strategy: What people want in a beverage is a reflection of who they are, where they live, how they work and play, and how they relax and recharge. Whether you're a student in the United States enjoying a refreshing Coca-Cola, a woman in Italy taking a tea break, a child in Peru asking for a juice drink, or a couple in Pakistan buying bottled water after a run together, we're there for you. We are determined not only to make great drinks, but also to contribute to communities around the world through our commitments to education, health, wellness, and diversity. Coke strives to be a good neighbor, consistently shaping our business decisions to improve the quality of life in the communities in which we do business. 6. Price strategy: Trade Promotion: Coca cola company gives incentives to middle men or retailers in way a that they offer them free samples and free empty bottles, by this these retailers and middle man push their product in the market following "Seen as sold" Different Price in Different Seasons: Sometimes Coca Cola Company changes their product prices according to the season. Summer is supposed to be a good season for beverage industry in Pakistan. So in winter they reduce their prices to maintain their sales and profit. 7. Promotion strategies: Getting shelves: They get or purchase shelves in big departmental stores and display their products in those shelves in attractive style. Eye Catching Position: Salesman of the coca cola company positions their freezers and their products in eye-catching positions. Normally they keep their freezers near the entrance of the stores. 154 G.J.C.M.P.,Vol.3(1):153-157 (January–February,2014) ISSN: 2319 – 7285 Sale Promotion: Company also do sponsorships with different college and school's cafes and sponsors their sports events and other extra curriculum activities for getting market share. Development Strategy of Coca Cola: Brand development strategy of Coca Cola has been far reaching and has managed to remain in the limelight ever since it became a favorite with the non alcoholic drinkers. It has been noticed that brand loyalty is an important factor in maintaining the number one position. The article below suggests the various brand building techniques of the company. Founded in the year 1886, the Coca Cola company enjoys the status of being one of the biggest non alcoholic beverage companies of the world. It has a distribution system, which makes it unique from the rest of the non alcoholic beverage manufacturers. Over the years, Coca Cola has passed several tests of brand enhancement and the company makes it a point that the products under the banner Coca Cola continue to invade the minds of the consumers. The brand development strategy of Coca Cola comprised redesigning of its brand development policies and techniques to keep up with the changing mindset of its consumers. Earlier, this brand believed in the following: Afford ability Availability Acceptability However, this brand development strategy of Coca Cola was re worked to stress on the following instead: Price value Preference "Pervasive penetration".