Global Marketing Strategy – Coca Cola
Coca Cola, generally referred as Coke, is an American non-alcoholic carbonated drink produced under the brand The Coca-Cola Company. The drink was introduced about 130 years ago by John Pemberton as a patent medicine and later, the brand was bought by Asa Griggs Candler, and Coca Cola was then marketed as a soft drink. Candler’s marketing tactics brought Coca Cola in the limelight and the brand dominated the global markets and went on to become the largest non-alcoholic drinks brand in the world. The name Coca-Cola, comes from the two words, Coca which means leaves and Kola which means nuts which are a source of caffeine.
The company produces a concentrate, whose formula is a trade secret, and sell it to the bottlers throughout the world. The bottlers then manufacture the final product which is then sold in cans, glass bottles and pet bottles. The concentrate is also sold to restaurants and other vendors as soda fountain. Coca-Cola is currently available in more than 200 countries and is rated among world’s largest brands (Bellis, 2016).
Three major countries viz. India, USA and UK have been considered in this report to study the Global Marketing strategy of the Coca-Cola Company using the 4-Ps of marketing – Product, Price, Place and Promotion.
Marketing Strategy in India
The beverage market in India, like most other Asian countries, is an oligopoly and the major competitor of the brand is Pepsi.
Product – Coca-Cola is a non-alcoholic carbonated soft drink and is sold as a concentrate to the bottlers. The same concentrate is sold to the bottlers throughout the country and the brand has been able to maintain the same quality throughout the country which has had a positive impact in the minds of the people. The quality of the drink is same whether you are in a remote village or in a busy, overpopulated metro.
Price – The soft drink has been carefully priced in the Indian market based on the price of other soft drinks in the country. The price is comparable to other brands like Pepsi. Since, the consumers in India are highly conscious of the prices, Coca-Cola has priced the product at prices almost equal to that of Pepsi.
Place – Coca-Cola is available throughout the country and in the most remote regions. The company follows the FMCG distribution pattern. The mediators hardly have any role to play since Coca-Cola has reached a level where their distribution system caters to the needs of the people and vendors throughout the country.
Promotion – Coca-Cola has been promoted in the country with the phrase “Open Happiness”. Also, on various festivals in the country, the brand comes up with new advertisements relevant to the festival, festive-packs of drinks and a message to the people of the country through which the people can relate the brand to the festival. The promotions also take place through the Corporate Social Responsibility activities throughout the country, Coca-Cola is associated with Support my School campaign with a leading news channel NDTV and has brand ambassadors from the Acting and Sports industries. The brand ambassadors include the famous actors like Hrithik Roshan and Amir Khan and sportspersons/cricketrs Gautam Gambhir and Virender Sehwag (Bhasin, 2016). These promotion activities have helped the brand to make a positive image in the minds of the people and the revenues of the organization clearly indicate that.
A major part of the Indian population lives in villages and has low disposable income and therefore the brand has a huge untapped market but the penetration can be improved only if the disposable income of the people increases or the company reduces the prices considerably. People prefer the traditional drinks like buttermilk and lemonade to the soft drinks and therefore the consumption habits have an impact on the sales of the Coca-Cola.
Marketing Strategy in USA
Product – Coke is available in the US market in 200ml, 500ml, 1l, 1.5l and 2l pet bottles and in cans and glass bottles. The quality of the product remains the same throughout the country and the quality or taste of the drink have not changed for decades. The product is targeted at teenagers and young adults and the designer bottles play an important part.
Price – The carbonated soft drink market is an oligopoly with few sellers ad many buyers and Pepsi, like in most other countries, is the most important competitor. The prices are therefore similar to that of Pepsi and other major brands in the market.
Place – Coca-Cola makes effective use of its distribution system that includes agents and dealership networks. The concentrate is sent to the manufacturing units or bottlers where the final product is produced and packed in bottles or cans and is then transported to the warehouses from where the local distributors transport the product to the retailers or other vendors.
Promotion – Coca-Cola sponsors several events across USA and has also been related to many sports events, making the visibility of the brand much higher as compared to other brands. The marketing of the brand through social media, newspapers and television commercials and creating a connection with the masses through celebrity endorsements have been successful so far and the brand has been able to attract the customers. Coca-Cola has also used characters like Polar Bears to relate to the traditions (Kokemuller, 2016). The revenues and profits clearly indicate that the brand has been successful in its marketing strategy.
The product is classified as an international drink which makes it easier for the teenagers and young adults to get attracted towards the brand. Coca-Cola has been able to find the right marketing mix and to add to that, the consumption habits of the Americans and the high disposable income as compared to most other countries, have ensured high revenues and profits for the organization.
Marketing Strategy in UK
Product – Coca-Cola maintains high quality and standards when it comes to its manufacturing processes and provides customer support in case the customers have any feedback about the product. The soft drink is available in the market in pet bottles, glass bottles and cans and at several restaurants and malls as fountain drink. Like other countries, the company sends the concentrate to the bottlers or manufacturers, who produce the final products and pack them as bottles or cans. Coca-Cola Classic, Coca-Cola Zero and Diet Coke being some of the favorite products. ("Coca-Cola Classic", 2017).
Price – The most important competitor of Coca-Cola in the UK market is Pepsi and the prices are, therefore, comparable to that of Pepsi. Since, there are few competitors in the carbonated non-alcoholic drinks market, prices play an important role in the sale of the product. Competition based pricing by Coca-Cola has ensured that it does not lose its market share because of high prices.
Place – The Company tries to ensure that the product is available throughout the country and at all the retail outlets. For this, Coca-Cola has maintained an effective and efficient distribution network through which the products are transported to the retails, restaurants, vending machines and other sellers. The distribution network has ensured that the drink is available in every part of the United Kingdom with same standards and quality.
Promotion – Coca-Cola has been successful in effectively marketing its products through social media marketing, advertisements on radio and television and through newspapers. It has become a routine activity for the brand to sponsor events where teenagers or young adults are involved. The endorsements through Hollywood actors and sportspersons, like in many other countries, has also attracted several customers towards the brand. The sales, revenues and profits of the brand indicate the success of the promotions and marketing activities.
When it comes to the United Kingdom, the consumption habits of the people are much different from that of India where people prefer the traditional drinks. Also, the disposable income of the people is high and therefore people can afford to buy the drink without burning a hole in their pocket. The teenagers and young adults have found the drink to be a fashion statement, especially when it comes to Cans. Coca-Cola has higher revenues in the metros as compared to countryside.
Overall, it can be said that Coca-Cola has been successful in marketing the products in the global market and the revenues, profits and the brand value indicate the same. Also, Coca-Cola is a perfect example of how a brand can grow and attract the customers in the global market through effective marketing strategies.
References
Bellis, Mary (2016). History of Coca-Cola. Retrieved from http://inventors.about.com/od/cstartinventions/a/coca_cola.htm
Coca-Cola Classic (2017). Retrieved from http://www.coca-cola.co.uk/drinks/coca-cola/coca-cola
Bhasin, Hitesh (2016). Marketing Mix of Coca-Cola. Retrieved from http://www.marketing91.com/marketing-mix-coca-cola/
Kokemuller, Neil (2016). What is Marketing Mix of Coca-Cola? Retrieved from http://yourbusiness.azcentral.com/marketing-mix-coca-cola-12969.html
