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marketing management of coca-cola
- 1. Jai ma saraswati Presentationof Marketing management marketing management of coca cola Submitted to submitted by Dr.sarika Yadav 1 vimal kumar(114168) 2 Vijay kumar Yadav(114165) 3 vineet kumar (114170) 4 vinit dahiya(114171) 5 sunil chawari(114156) 6 Saurabh kumar(114132)
- 2. Out line Historyof coca cola Business Marketing Segmenting and Targeting Markets Developing and Managing a Product Integrated Marketing Communication Sales and Personal Selling Advertising and Public Relations Marketing mix Swot analysis
- 3. History of cocacola in INDIA • Coca-Cola came to India in the year 1956. • Indian foreign exchange act was implemented in the year 1974 during Indra Gandhi time. The foreign exchange act stated that foreign companies selling consumer goods must invest 40% of its equity stake in India in its Indian associates. Coca-Cola agreed with investing 40% foreign equity but stated that they would still hold full power in technical and administrative units with no local participation allowed. • This demand was against the foreign exchange act. The government instructed Coca-Cola to either write up a new plan or to leave the country. • The Janata Party came into the power in 1977 and stressed that Coca-Cola should either accept the foreign exchange act or leave the country. Coke India left that year • In 1993 Coca-Cola re-entered after government approval, due to the new liberalization policies that were coming to India. The foreign exchange act which had once prevented companies from keeping too much equity had now been completely modified. • Before Coke re-entered India, more than 50 Indian soft-drink brands had been developed and 200 production plants set up.
- 4. Business Marketing Coca-ColaCompany works together with more than 300 bottling partners globally and operates the most extensive beverage distribution system in the world. Electronic commerce had become a preferred method of doing business for the grocery industry and therefore the company developed a high volume site for Business to Business e-commerce (B2B). Internet has made it possible for Coca-Cola Company to build a strong relationship with its bottling partners, to increase collaboration and efficiency, and to better understand the costumers' needs.
- 5. Business Marketing Coca ColaCompany first started its bottle agreement on 1899 and today it has 300 bottling partners worldwide Here are few examples from Coca Cola's alliances for business marketing 1.Apple and Coca cola made iTunes alliances on 2006; Coca-Cola used this initiative to promote their calorie-free Coke Zero brand along with iTunes. 2.The Walt Disney Company has a 47 years alliance with Coca-Cola Company. On September 2002, DASANI water bottles were featured at the Walt Disney’s parks and resorts. DASANI were also served on the Walt Disney cruise lines, and became the sponsor of the Walt Disney’s World Marathon.
- 6. Business Marketing McDonald's andCoca Cola have a strong alliance based on trust for more than 60 years, Coca Cola products are being sold in 31,000 restaurants over 100 countries. . Nestlé Company, Switzerland, and Coca Cola Company have a joint venture since 1991. The companies took advantage of Nestle's well-known brands of coffee, tea and chocolate beverages and Coke distribution system
- 7. Segmenting and TargetingMarkets Geographic segmentation Coca Cola has drinks that targets different age groups, ethnic groups, sexes, lifestyles, etc. Examples: 1.Oasis- Juice made for the younger working adults, between the ages of 20- 30. The product is available in different flavors (berry, lemon, and orange tangerine). It’s mostly popular in Britain and Ireland. 2.Coca Cola Zero- targets teens that don't want calories but want the taste.
- 8. Segmenting and TargetingMarkets 3.Diet Coca Cola- targets adults, between 30-50 who are health conscious but want the taste. 4.Powerade- sport drink, targets athletes between 13-27 ages. 5.Minute Maide- targets kids and adults from 1 year to 10 and 40 plus. It’s convenience to carry. It targets parents that want their children to drink healthier drinks.
- 9. Segmenting and TargetingMarkets Demographic segmentation: Age- 15-25 years old and 40 plus. Gender- targets both genders with wide variety drinks. Income- segments different income level. for example, by packaging: for low level income the company is selling returnable glass bottle; for high level income, the company is selling coke in tins.
- 10. Segmenting and TargetingMarkets Psychographics segmentation People who are brand conscious will not drink beverages of less known brands. They will try to show their status by drinking Coca-Cola. The level of education is another factor that the company is paying attention to. In an high percentage education, the company can use advertisements to convey the company massage. Because Coca Cola is a recognized world brand, people will drink it without hesitate.
- 11. Segmenting and TargetingMarkets Climate- Coca Cola’s consumption in the summer is 60% than 40% in the winter; therefore, the company's sales are higher in the summer. It also focuses in hot area in the world
- 12. Developing and Managinga Product Coca Cola is a worldwide, ready to drink, non - alcohol, soft drink company. The company evolved during 125 years from one product, coca-cola, to more than 500 brands in 2011, and expanded from only one city to availability in more than 200 countries around the world. New products are very important to keep growth and to increase revenues and profits
- 13. Developing and Managinga Product Example of types of new products innovations 1“New product line” - Sprite launches Sprite Tea, new innovative Tea flavorous sparkling beverage in China, the company used massive consumer testing to fine-tune the taste, the right amount of tea essence and percentage of bubbles. “Addition to existing product line” - New 1.25 Liter Coca Cola package introduce as part of the company’s 125th anniversary celebration. 3“Improvement or revision of existing product”- DASANI and Odwalla available in plant bottle packaging nation wide.
- 14. Developing and Managinga Product Another example for "New- Product Development Process", the coffee drink innovation which introduce by Victor Behrman, head of the group’s competence center for Europe, Eurasia, and Africa, 1)Idea- the consumption of coffee increasing around the world, home and outside due to this fact Coca Cola Company decided to enter this market 2)Building analysis - the company identify the competitors in the past and present in the past and present, the company also makes a research on similar products throughout the world and find a niche on the global market. Than the company partnership with the Italian coffee producer Illy.
- 15. Developing and Managinga Product 3)Development- the key product is Illy ready-to-drink coffee, the company launched on each market the drink with variant coffee power, in the beginning without preservatives and without milk and after in different variations until it got to the maximize satisfaction. 4)Preparation for the introducing of the product - creating legal entity for the partnership, development of supply, packaging, first commercial production under supervision. 5)Commercialization - ensuring the great exposure, focus on availability in retail store, penetration of high quality stores.
- 16. Integrated Marketing Communication Coca-Cola is using all elements of promotion, 1. Advertisement- Coca-Cola advertise in traditional media such as: TV, news papers, magazines, billboards, bus stops, and etc. the company is also using the new methods such as websites and blogs to supply more information about the company and its products.
- 17. Integrated Marketing Communication Public relation- The company has its own website where consumers can view press releases, executive speeches, and statements which addresses law-suits, rumors, stories, and etc. The latest example can be also the World Wildlife Fund, Coca-Cola campaign for the Polar Bear’s home, the company ties in the branded image of “Coke Polar Bear” with the concern for the environment. The company started to manufacture more than 1.4 billion white coke cans, the company will also committed to raise 3 million for the fund between November 1- March 15, 2012. The company will donate 2 million and will raise 1 million from public donation, by texting the package code to 357357 and $1 will donate to the fund.
- 18. Integrated Marketing Communication 3.Salespromotion- In "My Coke Reward", you can find tons of coupons, rewards, gifts, free vacations, and etc. 4. Personal selling- Cola-Cola has highly trained sales team, the company primary used personal selling for business to business sales. The company sells its products to retail stores using intermediaries, it can also be called Interpersonal communication, direct- face to face communication. Coca- Cola also sells its products to restaurants, part of the restaurants sell only Coca-Cola Coke.
- 19. Integrated Marketing Communication AIDAconcept, which means attention, interest, desire, and action also takes place in Coca-Cola promotion. When Coca- Cola introduce new product the company is using aggressive sales: on TV, bus stops, magazines, and etc to gain attention. Coca-Cola uses ads with information including ingredients and materials to provoke interests, like diet coke for low- calories’ consumers or 2liter bottle to save money or for convenience. To provoke desire, the company also explains in ads or in its website how the product will satisfy the potential consumer, for example, buy 2liter bottle to save money and if you drinks a lot or buy coke zero if you want to keep your shape. And than Coca-Cola continually advertise aggressively everywhere and explain the benefits of the new product, it also offer concessions like when introducing the new 2liter bottle in Republic of Ireland, one single 2liter bottle in half price, so the potential costumer will take an action and buy it.
- 20. Sales and PersonalSelling Coca- Cola adjust prices, advertisements, sales promotion programs, products innovation, new packages, new vending and dispensing equipment, and brand and trademark development and protection to sustain and lead among the competitors. In 1999 the Coca-Cola and diet Coke 2litre bottle were introduce in the Republic of Ireland and Northern Ireland. Part of the marketing plan was price promotion, single 2litre bottle in half price (99p), and national shopping mall sampling
- 21. Sales and PersonalSelling In Israel during the holiday, usually Sep-Oct, Coca-Cola promotes 6 or 3 bottles packages in lower prices, the packages include blessings for the holidays. In addition, every year the Coca-Cola Company produce huge event called "Coca-Cola village" for young people, its 2 days event with music and food that many singers, actors and famous people perform
- 22. Sales and PersonalSelling there are promotions as: * Buy two 2litre bottles get 1litre bottle free. * New media in which a special code is at the back of the cap and you need to text to code to a specific number and there will be a lucky draw out of it. * Vouchers and coupons to get free bottles. * Buy Dominos Pizza and get 500ml bottle of coke.
- 23. Marketing mix ofCoca Cola The marketing mix of Coca cola has been changing over time with more and more products being added such that today it has 3300 products. So what is the marketing mix of Coca cola? Product:- The company has the widest portfolio in beverage industry comprising of 3300 products. Beverages are divided into diet category, 100% fruit juices, fruit drinks, water, energy drinks, tea and coffee etc. As per Nielson’s data, Coca cola is the No.1 brand in sparkling beverages, juice, and retail packaged water in 2010. Coca cola has its market presence around 200 countries. Coca cola brands in India are Fanta, Maaza, Limca, sprite, Thums up, Minute Maid, Nimbu fresh, Nested iced tea etc.
- 24. Price Due tothe availability of wide range products the pricing is done according to the market and geographic segment. Each sub-brand of coca cola has different pricing strategy. Their pricing strategy is based on the competitors pricing, Pepsi is the direct competitor to coke. Beverage market is said to be a oligopoly market (few sellers and large buyers), hence they form into cartel contract to ensure a mutual balance in pricing between the sellers
- 25. Place Coca colais the world’s most favorite brand and is available all over the world. The distribution system of coca cola follows the FMCG distribution pattern. The effective distribution network of coke has almost eroded the small and middle level players in the market. In India they have captured even the rural market by extensive distribution and have eroded the market share of Bovonto, Kalimark etc.
- 26. Promotion Coca colaadopts various advertising and promotional strategies to create an increased demand in the market by associating with life style and behaviour and mainly targeting value based advertising. You are more likely to see a coke ad individualised for a particular festival or in with a general positive message. Coca cola uses CSR as its marketing tool to gain emotional benefits in consumers mind. The current promotions through CSR include “Support my school” campaign with NDTV.
- 27. Promotion It hasmany brand ambassadors like Shahrukh khan, Hrithik Roshan, South Indian Actor Vijay and Trisha , Ghambir, Aamir khan etc and has signed contract recently with Imran khan. It allows price discounts and allowances to distributors and retailers in order to push more products into the market. It employs both push strategy through promotions and pull strategy through advertisements and campaigns.
- 28. SWOT of CocaCola Strengths Weaknesses Opportunities Threats
- 29. Strengths Brand Equity –Interbrand in 2011 awarded Coca cola with the highest brand equity award Company valuation – One of the most valuable companies in the world, Coca cola is valued around 79.2 billion dollars Vast global presence – Coca cola is present in 200 countries across the world. Chances are, any country that you go to, you will find coca cola present in that market. Largest market share – There are only 2 Big competitors in the beverage segment – Pepsi and Coca cola
- 30. Weaknesses Competition withPepsi – Pepsi is a thorn in the flesh for Coca cola. Coca cola would have been the clear market leader had it not been for Pepsi Product Diversification is low – Where Pepsi has made a smart move and diversified into the snacks segment with products like Lays and Kurkure Coca cola is missing from that segment Absence in health beverages – If you watch the news, you would know that obesity is a major problem affecting people nowadays. water management At the same time, people have also blamed Coca cola for mixing pesticides in the water to clear contaminants. Thus water management needs to be better for Coca cola.
- 31. Opportunities:- Diversification – Diversificationin the health and food business will improve the offerings of Coca cola to their customers. Developing nations – Although developed nations have a high presence of Coca cola, these countries are slowly moving towards healthy beverages Packaged drinking water – With hygiene becoming a major factor in the consumption of water, Packaged drinking water has found its way into peoples mind Supply chain improvement – Supply chain can be a major cost sink hole with the transportation costs always rising. Coca cola’s complete business is based on transportation and distribution.
- 32. Threats Raw materialsourcing – Water is the only threat to Coca cola. The weakness of Coca cola was the suspected use of pesticides or vast consumption of water. However, the threat here is that water scarcity is on the rise. With the climate changing, Indirect competitors – Coffee chains like Starbucks, Café coffee day, Costa coffee are on the rise. These chains offer a healthy competition to Coca colas carbonated drinks.
- 33. Present condition ofcoca cola As of now, Coca-Cola has been doing as well as it ever has been. In 2006, Coca-Cola and Coca-Cola Enterprises were ranked No. 1 and No. 2 on Fortune 500's list of best beverage companies. It has been ranked as one of the top companies to work for. As of 2000, it was the top-ranked soda in the United States.