Coca-Cola is regarded as one of the most popular soft drink across the globe, with a large number of consumers helping it in gaining the position of the most popular soft drink. On May 8, 2011 Coca Cola celebrated its 125th anniversary. In these years Coca Cola has expanded its market from USA to the global industry. Today, Coca Cola is being sold in more than 200 countries, providing beverages (including sparkling beverages, juices, juice drinks, ready-to-drink teas and coffees) to more than 1.7 billion customers on a daily basis (thecoca-colacompany.com).
Some of the famous brands include Coke, Diet coke, Fanta, Sprite, Coca-Cola Zero, Minute Maid, Simply, and Powerade.
According to nexresearch.com sales of soft drinks in global market in 2002 were as follows:
• US $ 410 billion (in terms of value)
• 72 billion cases (in terms of volume)
In USA the size of the market is as follows:
• 500 soft drinks companies
• Carbonated drinks largest segment in U.S with a 66% market share
One of the major competitors of Coca-Cola is PepsiCo, Inc.
Secondary Competitors
The primary competitors of Coca-Cola are Nestle, Dr. Pepper (Cadbury Schweppes) and Danone.
Coca-Cola was able to hold more market share than its major competitor, PepsiCo with a market share of 42%. Pepsi was able to hold a market share of 29.3% only in the year 2010.
For the brand of Coke & Diet Coke, Coca-Cola was again able to have greater market share of 17% and 9.9% respectively in 2009 and 2010. Pepsi had a loss of market share, as it dropped from 9.9% in 2009 to 9.5% in 2010.
The overall assessment of coke illustrates that it is a competitive product and its market share will continue to grow and expand. There is a tough competitor in the form of Pepsi, but utilization of the right marketing strategies can support coke in maintaining and strengthening its position in the market.
Coca-Cola has used the mass marketing approach to advertise its product. Therefore the target market for its products such as coke consists of people belonging to different age groups, gender, and socioeconomic position, ethnic and cultural background. Since coke is being sold in more than 200 countries across the world, its target market is quite diverse.
As far as the demographic variables are concerned, people of different age groups are being targeted, ranging from children to people in late adulthood. Still, Coke tends to be quite popular among the youth, both males and females.
Children as young as 13 years of age have a preference for coke as a soft drink. Teenagers regard it as a symbol of fun and entertainment. The market segment consisting of older people regards it as a refreshing drink. Regardless of the age, coke is equally popular among every age group.
People belonging to different occupations and income groups also constitute the target market for coke regardless of their socioeconomic position. People with diverse educational backgrounds are also a part of market segment.
Since coke is sold in more than 200 countries in the world, its target market belongs to different countries having diverse religion, culture and social standards. The marketing of coke focuses on providing the consumers with a feeling that by purchasing coke, they are affiliating themselves with a unifying element.
[large]Psychographic data consists of the personality, motives and life style of the target population (Lamb, Hair & McDaniel, 2009). Coke focuses on the changes in trends of the lifestyle of its target population. Recently, people have shown a rising concern about the issues of obesity and health and fitness.
Coke has acknowledged the changing attitude of people towards their health and increasing concern for their fitness and physical well being. Coke has responded to this change by introducing diet coke, and coca cola zero with the image of providing sugar free and zero calorie soft drinks to the masses.
The psychographic factors provide the necessary information to Coca Cola, on the basis of which it can develop or modify its marketing strategy. Psychographic factors helps coke in compiling and evaluating the needs and changing trends in the global market. Concern about obesity is not only limited to one particular country, but is a widespread issue. People belonging to different cultural backgrounds and age groups have positively responded to the introduction of diet coke and coca cola zero.
According to the coca-colacompany.com coca cola zero had one of the successful launches in the market, as 600 million cases were sold in 2009 at a global level. Currently, it is available in 130 countries.
Marketing for a product can be done by using a variety of tools as outlined by Shimp (2010). According to him marketing tools can be categorized into media advertising, direct/interactive advertising, place advertising, store signage & point of purchase advertising, trade & consumer oriented promotions, event marketing, Personal Relations, Personal Selling.
Coke heavily relies on the marketing communication tools of media advertising and place advertising. It also uses other marketing communication tools to maintain a competitive position in the global market.
Coca cola relies heavily on advertising through T.V as it enables it to capture the mass audience effectively. After very few months a new commercial is launched with an attention grabbing slogan. Its advertisements are designed to address the different socio cultural and ethnic backgrounds. For example the advertisement of coke being shown in India will reflect their culture, and an advertisement being shown in UK will reflect their norms and values.
The advertisement on (http://www.youtube.com/watch?v=4LP4t5kvAyQ&feature=fvwrel) shows people especially youth of India belonging to different social classes and ethnic backgrounds consuming coke and feeling its effect. The ad on (http://www.youtube.com/watch?v=7A8DNWu2c5k) shows youth of UK consuming coke zero.
Along with that they also launch new advertisements for the special occasions such as Christmas. (http://www.youtube.com/watch?v=4TMwBFK2qHI). This ad shows people from different income groups celebrating Christmas, and how coke is an essential part of their celebration.
Coca Cola has also realized that online advertising and the usefulness of social media as a tool for advertising. With the increasing number of users of social media such as facebook, YouTube and twitter, coke has been advertised through this medium as well. As reported by Stratmann (2011) Coke Zone is one such example which involves online interaction with the consumers for the marketing purpose.
Billboards are a powerful tool for marketing communication that is effectively being used by Coca Cola. As the billboard below shows that the concept of Christmas has been merged with its slogan of “open happiness”.
Coca Cola also offers its soft drinks with promotional offers to attract the consumers across the world. One way of offering promotional packages is by providing reward offers or discount coupons. Another approach to use promotional offers is in the form of discounted price during special occasions. For example, during Ramadan, Coca Cola offers discount on the purchase of its soft drinks.
Coca Cola also uses the marketing communication tool of event marketing by sponsoring sports events such as world cup, Olympics and social events such as concerts. By using this strategy they can target large audience in short time duration. Major sports events such as world cup and Olympics are viewed all over the world. It offers an excellent opportunity for effective marketing. T.V events such as American Idol have been used as a means of marketing communication tool for coke zero.
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