We have heard the term ‘marketing strategy’ being used to define the reason behind the success of big brands like Apple, Microsoft, McDonald’s, Coca Cola, etc. What exactly does it mean? In this blog, we will try to take a deeper look into Coca Cola Marketing Strategy. We will also read about the Coca Cola SWOT Analysis, Coca Cola PESTLE Analysis and an overview of Coca Cola Performance Index. Additionally, we will also look at why did Coca Cola lose $4 billion recently?
First, let’s start with the basics.
WHAT DOES THE TERM MARKETING STRATEGY MEAN ?
Marketing strategy is a long-term approach to planning with the primary goal of establishing a competitive advantage that can be sustained. To grow a business, it is necessary for all businesses, regardless of size, to have certain goals. These carefully chalked out objectives will help the company stay afloat in an ever-increasingly competitive industry while also increasing revenue. Therefore you can say the only thing that separates a good marketing campaign from a bad one is the way you define your objectives.
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Your marketing strategy should be planned in such a way so that your efforts are directed in the proper direction. It is not necessary to have a well-defined approach. Not only will we assist you in achieving your objectives, but we will also assist you in meeting the objectives and expectations of your customers.
ABOUT THE BRAND: COCA COLA |
Coca Cola is the world’s largest soft drink company and the third most valuable brand. It was born in the year 1886 and has been one of the most aggressive businesses to grow down the years. The Coca Cola Marketing strategy has enabled its products to be sold in over 200 countries throughout the world. Outside of the United States, it produces 80% of its earnings. Also, they have acquired massive brand recognition all around the globe.
According to the survey, around 94 per cent of people throughout the world are familiar with the Coca Cola red and white logo. The Coca Cola Marketing Strategy is said to be one of the most clever business strategies in the world. Many rising entrepreneurs and marketers also study the Coca Cola Marketing Strategy. This is part of a case study or research journal.
THE COCA COLA MARKETING STRATEGY
In terms of market share, commercial beverages account for over 70% of beverage consumption in the developed world. It has a 20% share of cold, non-alcoholic beverages and a very minor portion of hot, non-alcoholic beverages. Do you want to know the reason behind such success? The reason is, they have a diversified marketing strategy.
Coca Cola company believes that this is possible by growing the whole industry and maintaining market share. After that, a compelling long-term growth potential around the world can be achieved.
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OVERVIEW OF THE COCA COLA MARKETING STRATEGY
The Coca Cola Marketing strategy is an idea that emerged from the basis of a value proposition, allowing the company to gain a competitive advantage in terms of brand development and profit. Its impact on businesses around the world has been significant, particularly in public-facing industries like automobiles and beverages.
- The Coca Cola Marketing Strategy has some key components. They are highlighted below.
- Their key marketing concept is that they can read people’s minds across geographical borders.
- They began forming brand collaborations with major food chains throughout the world.
- Their strategy is distinct in the fact that they frequently modify their tag lines. As a result of which that the target audience is interested in the product i.e. entertained and that the company is innovative.
A CRITICAL ANALYSIS OF COCA COLA MARKETING STRATEGY
Apart from the overview that we studied about the Coca Cola Marketing Strategy, other broad range factors have made the company successful as it is today.
The analysis of the Coca Cola Marketing Strategy brings forward 3 key aspects. They are as follows.
MARKET SEGMENTATION |
Market segmentation is a Coca Cola Marketing strategy of dividing the market into segments depending on the volume and capacity of customers. After that, it is necessary to employ appropriate strategies in order to maximize sales and generate profit from each sector.
According to the Coca Cola Marketing Strategy, in emerging markets, firstly the major goal is to boost sales volume rather than profits. After that, it was also made feasible by offering beverages at low prices so that a larger number of people could enjoy them.
CORE EXPERTISE & BUSINESS CONCEPTS | COCA COLA MARKETING STRATEGY
Coca Cola has established a business model that includes a portfolio of over 500 brands ranging from sparkling beverages to value-added dairy and a variety of other products. Therefore, it is one of the pillars of their marketing strategy. Few of them collectively generate over a billion dollars in retail sales each year.
IMPROVING FINANCIAL PERFORMANCE | COCA COLA MARKETING STRATEGY
The ultimate goal of any company is to maximise returns on investments while maintaining maximum productivity. That has played a big role in the Coca Cola Marketing Strategy. Coca Cola made an effort to attain financial flexibility by using a system known as “zero-based work”. In this, the annual budget is amended from zero. This must be justified annually at the end, instead of just continuing over at the previous year’s levels.
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HOW DID THIS COCA COLA MARKETING STRATEGY HELP?
The Coca Cola Marketing Strategy has succeeded to attract a diverse range of customers to the company. As a result of this, it has gained profit from all market categories, regardless of market conditions. The main goal has been to increase bottling partners’ performance by enhancing productivity, performance, and streamlining manufacturing and distribution systems. This type of Coca Cola Marketing Strategy delivers value for customers in the retail and restaurant industries
COCA COLA SWOT ANALYSIS
The Coca Cola SWOT Analysis distinguishes the brand’s primary strengths, weaknesses, opportunities, and threats, allowing the company to explore these parameters as to what they should change to expand more effectively. Coca Cola must address the many problems raised in the Coca Cola SWOT Analysis to ensure that it maintains a long-term competitive advantage.
Coca Cola SWOT Analysis emphasises the importance of having a strong brand image. This article will provide you with an overview of Coca Cola SWOT Analysis and where the company stands today.
STRENGTHS | COCA COLA SWOT ANALYSIS
We will discuss a few strengths of the Coca Cola company that will give us a deeper understanding of the Coca Cola SWOT Analysis.
STRONG BRAND VALUE
Coca Cola is the most reputed non-alcoholic beverage brand with a distinct identity worldwide.
MARKET LEADER IN THE BEVERAGE INDUSTRY
As the world’s largest non-alcoholic beverage manufacturer, it serves around 1.9 billion of the total 60 billion non-alcoholic beverage servings consumed each day around the world.
EXCELLENT BRAND REPUTATION AND CUSTOMER LOYALTY
Coca Cola is one of the most emotionally connected brands in the US, with the highest brand association and customer loyalty. This lucrative brand is linked to “happiness” and has a high level of client loyalty.
WEAKNESSES | COCA COLA SWOT ANALYSIS
While we are probing into the Coca Cola SWOT Analysis, let’s also take a look at some of its weaknesses too.
STRONG COMPETITOR
Pepsi is Coca Cola’s main competitor. Coca Cola would have been the clear market leader in the beverage industry if Pepsi had not entered the picture.
PRODUCT DIVERSIFICATION
Coca Cola’s diversification is lower when compared to Pepsi. Pepsi introduced a number of popular snack foods, such as Kurkure and Lays. Coca Cola has not yet introduced any products in this category.
HEALTH CONCERNS
Carbonated beverages are a primary source of sugar. As a result, obesity and diabetes are two serious health problems.
You can read our blog on ”PEPSI Marketing Strategy” to know more about the competitors of Coca Cola.
OPPORTUNITIES | COCA COLA SWOT ANALYSIS
Some of the various opportunities of the Coca Cola company are listed below.
INTRODUCE NEW PRODUCT LINES
Coca Cola should see new product opportunities in food segments such as Pepsi. This would add to the company’s revenue, and it may also come from carbonated beverages.
PACKAGED DRINKING WATER
Coca Cola offers several different packaged drinking water brands. Kinley is one such brand. This is a great expansion point for Coca Cola when put under the Coca Cola SWOT Analysis microscope.
THREATS | COCA COLA SWOT ANALYSIS
Some threats are facing the Coca Cola company. They are:
PACKAGING CONTROVERSY
Coca Cola was chastised by Greenpeace in a study published in 2017 for their usage of single-use plastic bottles. Many people criticize it because it uses recycling and also uses renewable energy sources.
WATER CONTROVERSY
Many organisations and groups heavily criticized the brand’s water management. Many environmental and social organisations have stated that the Coca Cola Corporation consumes a significant amount of water in locations where water is scarce.
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We have emphasised the primary strengths, weaknesses, opportunities and threats of Coca Cola in this article’s Coca Cola SWOT Analysis.
COCA COLA PESTLE ANALYSIS
The Coca Cola PESTLE Analysis concerns the political, economic, social, technological, legal and environmental analysis of the company. The Coca Cola PESTLE Analysis helps to examine the context in which the company operates its system.
POLITICAL FACTORS | COCA COLA PESTLE ANALYSIS
The FDA supervises the production of Coca Cola products according to Coca Cola PESTLE Analysis. To introduce new products on store shelves, they must adhere to regulatory restrictions. There has been a lot of change in the law in recent years to maintain quality and healthy food consumption. Several institutions prohibit carbonated drinks.
ECONOMIC FACTORS | COCA COLA PESTLE ANALYSIS
According to Coca Cola PESTLE Analysis, manufacturers, like Coca Cola, love Low Interest Rates and Low Exchange Rates. The company borrows and invests money. Inflationary pressures impact hugely on businesses. Those businesses, that have particularly engaged in research into new products or technologies because they reduce cost-effectiveness.
They have more than $80 billion in equity. And the majority of their income (roughly 70%) comes from countries other than the United States.
SOCIAL FACTORS | COCA COLA PESTLE ANALYSIS
Social factors like Influencer Marketing plays a big role in the Coca Cola PESTLE Analysis. Health-conscious consumers influence a large portion of Coca Cola product marketing. They prefer diet Coca Cola over regular Coca Cola, and many people switch from alcoholic to non-alcoholic beverages because it is not good for their health.
TECHNOLOGICAL FACTORS | COCA COLA PESTLE ANALYSIS
Coca Cola PESTLE Analysis has seen it using Social Media Technology to reach out to customers. Customers lined up to take photos of bottles with their names on them when they launched their name campaign, which involved putting real names on their bottles. These photos became popular on social media platforms such as Facebook, providing social proof and encouraging Coca Cola sales.
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LEGAL FACTORS | COCA COLA PESTLE ANALYSIS
Coca Cola owns all Business Rights, including previous and future items generated using a proprietary process as part of the legal factors in Coca Cola PESTLE Analysis.
ENVIRONMENTAL FACTORS | COCA COLA PESTLE ANALYSIS
According to Coca Cola PESTLE Analysis, Coca Cola must follow environmental regulations when producing its goods. The Availability of Water has an impact on Coca Cola. The production of Coca Cola soft drinks requires water in huge quantity. If something goes wrong, it has the ability to disrupt how they distribute items — or even stop the production altogether.
COCA COLA PERFORMANCE INDEX
A company has to perform certain assessments i.e. Coca Cola Performance Index is a comprehensive report of its performance as compared to its previous years, and future company goals.
Coca Cola uses particular KPIs or Key Performance Indicators to track their progress towards their strategic goals. These KPIs comprise the Coca Cola Performance Index and enable their stakeholders to compare our progress to that of prior years.
HOW DO WE MEASURE COCA COLA PERFORMANCE INDEX?
To focus on the underlying performance of the business, Coca Cola Performance Index measures revenues on a currency-neutral basis. Pricing, as well as positive classification and package mix, helps them increase FX-neutral revenue per case.
After that, Coca Cola Performance Index helps track this by calculating OpEx as a proportion of NSR and comparing EBIT margins. The company then produces positive operational leverage by increasing revenues while maintaining a low-cost base.
WHY DID COCA COLA LOSE $4 BILLION?
During a news conference ahead of Portugal’s match against Hungary, footballer Cristiano Ronaldo inflicted $4 billion damage on Coca-Cola by putting down two bottles of carbonated drinks and choosing water instead. The Portuguese footballer, who now plays for Juventus in Serie A, is one of the best footballers in the world. Coke is a sponsor of Portugal’s current Euro 2020 campaign, in which the former Real Madrid player is the captain.
Hardly half an hour after Ronaldo removed the bottles of Coca Cola, its market shares dipped. The world went crazy with the question, “Why did Coca Cola lose $4 billion?”. One small gesture of a star footballer cost the company $4 billion.
TABLE SHOWING THE STOCK PRICES OF THE COMPANY BEFORE AND AFTER THE PRE-MATCH CEREMONY
The following table indicates why did Coca Cola lose $4 billion after the Pre-match ceremony of the Portugal Vs. Hungary tournament.
| Coca Cola Stock Prices | Before Portugal vs Hungary Pre-match ceremony | After Portugal vs Hungary Pre-match ceremony |
| Company Shares | $56.10 | $55.20 |
| Company Valuation | $242 billion | $238 billion |
Fans are speculating about the fact that why did Coca Cola lose $4 billion? Ronaldo has been quite active in his consumption of healthy food & beverages. That is the real answer behind why did Coca Cola lose $4 billion in the Pre-match presentation of Portugal vs Hungary match.
CONCLUSION
The Coca Cola Marketing Strategy distributed the market into emerging, developing, and developed sectors because each of the 200+ countries plays an important role in the growth of the company. These grow from its strong brand identification, global reach, significant brand value, dominant market share, and acquisitions.
In more recent news, we also saw why did Coca Cola lose $4 billion in market shares due to a specific gesture of a star footballer. However, the company continues to grow, as indicated by the Coca Cola Performance Index. One of the main reasons behind Coca Cola’s success is constant research, innovation and adaptation, resulting in widespread popularity that grows day by day.
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