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Coca Cola Marketing Analysis Essay Sample

Coca Cola Marketing Analysis Pages
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In 1886, an Atlanta pharmacist by the name of Dr. John S. Pemberton developed the first Coca-Cola Coke. The product was created by using flavored syrup and carbonated wat

In 1886, an Atlanta pharmacist by the name of Dr. John S. Pemberton developed the first Coca-Cola Coke. The product was created by using flavored syrup and carbonated water at Pemberton’s local pharmacy. Frank M. Robinson, Dr. Pemberton’s business partner and bookkeeper, is credited for giving the product its name, Coca-Cola, as well as the trademark script on the product that is still used today. Prior to his death in 1888, Dr. Pemberton sold portions of his dynamic business, with majority of the business being sold to Atlanta businessman, Asa G. Candler. Under Candler’s leadership, Pemberton’s original goal was accomplished, distributing Coca-Cola through soda fountains. In 1984, Joseph Biedenhard installed a bottling machine in his soda fountain, making him the first to bottle a Coca-Cola. The first Coca-Cola sold for only five cents. For only $1, three business men from Chattanooga, Tennessee, Benjamin Thomas, Joseph Whitehead, and John Lupton, purchased bottling rights from Asa Candler, and later developed what would become the Coca-Cola worldwide bottling system (“Coca-Cola History”, n.d.).

Today, The Coca-Cola Company’s number one competitor is Pepsico Inc., the maker of Pepsi. Other competitors include, Dr. Pepper Snapple Group Inc. and Nestlé. Coca-Cola dominates the beverage world controlling 51% of the global carbonated soft drink business. Pepsi controls on 22% of the beverage business (Zmuda, 2009). Coca-Cola’s marketing capitalization, the market value of the company’s outstanding shares, is 179.74B toppling Pepsi’s 121.73B. Coca-Cola is also ahead of Pepsi in Quarterly Revenue Growth Year over Year. Quarterly Revenue Growth refers to an increase of a company’s sales when compared to a previous quarter’s revenue performance. Currently, Coca-Cola’s Quarterly Revenue Growth is at 0.04, while Pepsi is at -0.01. Direct comparison of Net Income for each company is Coca-Cola at 9.02B and Pepsi at 6.17B. Below is a full diagram of all companies compared.

The Coca-Cola Company understands and supports a parent or caregivers desire to provide his or her dependent with the best dietary options. Because Coca-Cola supports these decisions, the company does not market any products directly to any child less than 12 years of age. Meaning, that the Coca-Cola Company does not purchase any advertising that directly targets audiences that are more than 35% children under the age of 12. This policy applies to all television, radio, print, Internet, and mobile phone advertisements (“Responsible Marketing”, 2013). The Coca-Cola Company provides a wide variety of beverages from carbonated drinks to juices. Coke is geared to attract customers 12 years and older. The Coca-Cola Company is in a current movement known as the 2020Vision. In this, the company has set goals in areas of profit, people, portfolio, partners, planet, and productivity. By 2020, Coca-Cola plans to double both its revenue and number of servings of its products.

To do this, the Coca-Cola Company is focusing on multicultural demographics. Rather targeting only Hispanic heritage month and Cinco de Mayo, Coca-Cola will focus on the World Cup with Hispanic males and novelas with Hispanic females. This strategy is also going to apply to African-American consumers, mainly targeting African-American mothers (Zmuda, 2009). Coca-Cola also has future plans to market more efficiently both locally and globally through social media. These social efforts will target teens, moms, and multicultural consumers. Efforts to do this will include experimenting with new media such as digital billboards and social media, as well as in-store advertising. Coca-Cola will continue to product high-profile television campaigns as well. The Coca-Cola Company consistently complies with all applicable United States legal requirements. Since its first production, Coca-Cola has experienced many government battles, some of which are still going on today. Health issues tend to be the most frequent topic in these battles. Coca-Cola efficiently works daily to decrease any consumer health issues that could be related to its products.

Producing low-calorie, sugar free drinks is just a small token of how Coca-Cola cares about its consumers. Coca-Cola does not disappoint its consumers at all with its new technological inventions. Coca-Cola has recently invented a new Coca-Cola Freestyle soda fountain. The company’s new soda fountain is found in fast food restaurants and is replacing the old self-serve fountain dispenser. The new Freestyle soda fountain has a LCD screen that helps eliminate a lot of the raw materials found in your ordinary fountain dispenser. By doing this, consumers are able to access over 100 beverage choices as opposed to the older soda fountain that has six to eight flavors. With this new innovation, all parties are at an advantage. Consumers are given the opportunity to select from a large product selection, the retailer benefits by providing its consumers with this wide selection making its restaurant more appealing, and lastly Coca-Cola benefits by making all of its flavors accessible (Dickey, 2009).

Dr. Pemberton, along with his business partner, Frank Robinson, developed a positive branding strategy for the Coca Cola. The Coca Cola Company still uses the same logo and script that Robinson developed in 1886. It has maintained the status of being the number one non-alcoholic beverage since its invention. Since its development, Coca Cola has tested several different brand enhancements, but is still convinced that consumers are drawn to its original logo. As many as 20 brand attributions are tested each month with as many as 4,000 consumers. This brand development strategy has been noted effective and well managed. Keeping the same branding logo over the years has shown Coca Cola consumers that the company has loyalty. Brand loyalty displays the importance of keeping the image of Coca Cola and not conforming to the modern day world. Consumers are retained by default to what he or she is familiar with.

The Coca Cola Company has also invested in branding strategies by advertising with well-known celebrities. In regards to its no calorie product, Coke Zero, Coca Cola attracts consumers by using the tag line, “The Real Thing”. Telling consumers that it is zero calorie, but still tastes the same gives Coca Cola an advantage over other companies (“Development Strategy Of Coca Cola”, n.d.). In recent years, the Coca Cola Company has been under fire in regards to its prices. In a 2011 report, Muhtar Kent, chief executive of Coca Cola, defended the company’s pricing strategies. In his meeting, Mr. Kent said that Coca Cola’s price points work for the company. In 2011, Kent expected Coke to raise prices by an average of 3 to 4% during the second half of the year. This would leave prices up about 2 to 3% for the entire year. Earlier that year, the company had stated it would only be 1 to 2% for the year. To help flatten prices, Coke has begun offering its products in smaller packages. In 2011, Coke’s revenues increased 40% raising it to $10.5 billion.

Kent also stated what the company was working with its local bottling partners to help cut costs (Rappeport, 2013). One of the major factors that separate Coca Cola from all of its competitors is its distribution system. Coca Cola is a worldwide business that operates on a local scale. Coca Cola operates through multiple local channels and has over 250 bottling partner worldwide. The Coca Cola Company manufactures and sells concentrates, beverage bases, and syrups to bottling companies. The company owns the brands and is responsible for all consumer brand marketing. The bottling companies are only responsible for manufacturing the bottles, packaging, merchandising, and distributing the finished product to customers and vendors. The company’s bottling partners work closely with customers and vendors such as, grocery stores, restaurants, convenience stores, and many others. These customers and vendors then sell the Coca Cola product to consumers at a rate of more than 1.8 billion servings per day (“The Coca Cola System”, 2013).

The Coca Cola Company has proved itself as being an efficiently ran company through the following research and analysis’. Throughout this research, it is understood that Coca Cola established its company on morals and standards that are still valued today. The Coca Cola Company has upheld its dominant nature by remaining liable to its branding, thorough pricing strategies, and building and maintaining good relationships with its distributors. The company’s recent technology innovations help it to conquer its competitors in the number of products assessable to consumers. The Coca Cola Company has also shown its concern for its consumers by ensuring that the company discloses any possible health related issues with its products. The Coca Cola Company has worked hard to uphold the standards that it was founded upon, and this is why the company continuously dominates the non-alcoholic beverage industry.

Reference

Development Strategy of Coca Cola. (n.d.). Retrieved from
http://finance.mapsofworld.com/brand/value/development-strategy-coca-cola.html Dickey, T. (2009). 2009.40 Service Options. Retrieved from
http://retailtechnologytrends.com/tag/coca-cola/
Rappeport, A. (2013). Coca-Cola chief defends pricing strategy. Retrieved from http://www.ft.com/intl/cms/s/0/457977fe-8d42-11e0-bf23-
00144feab49a.html#axzz2PpC3c9He
Responsible Marketing. (2013). Retrieved from
http://www.coca-colacompany.com/stories/responsible-marketing The Coca Cola System. (2013). Retrieved from
http://www.coca-colacompany.com/our-company/the-coca-cola-system Zmuda, N. (2009). Coca-Cola Lays Out Its Vision for the Future at 2010 Meeting. Retrieved from http://adage.com/article/news/coca-cola-lays-vision-future-2010-meeting/140664/

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